EMBRACING the POWER of EXCELLENCE How Can Excellence Redefine the Business Landscape of Tomorrow? Insights from the 2015 Global Alumni Reunion in Munich THANK YOU

140 ALUMNI MAGAZINE

January-March 2016 www.iese.edu

Christoph Zott Domènec Melé IESE MBA 50th Anniversary How to Innovate What is the Root of Ethical Reaching Out to the in Business Models Behavior in Business? Global IESE MBA Family EMBRACING THE POWER OF EXCELLENCE How can excellence redefine the business landscape of tomorrow? Insights from the 2015 Global Alumni Reunion in Munich THANK YOU

SILVER SPONSOR With your support, over 1.000 Alumni and business leaders from all over the world met in Munich to expand the impact of excellence beyond the business context.

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Join us next year in Barcelona for the 2016 Global Alumni Reunion: NOVEMBER 11 THANK PUBLICIDADYOU 1 SILVER SPONSOR With your support, over 1.000, Alumni and business leaders from all over the world met in Munich to expand the impact of excellence beyond the business context.

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COVER STORY EMBRACING THE POWER OF EXCELLENCE GLOBAL ALUMNI REUNION 2015 8

IDEAS CROSSROADS IESE MBA 50TH ANNIVERSARY

MBA EXPERIENCES: REACHING OUT An Impact on Top Management 40 TO THE MORE THAN 700 ALUMNI SIGN UP GLOBAL IESE FOR NEW ONLINE SERIES IESE Alumni Digital MBA FAMILY Series: Making Progress in Digitalization 42 RESEARCH TO CONCENTRATE ON HOW TO REDUCE ENERGY POVERTY IN AFRICA CHANGING THE WAY THE COMPANY DOES BUSINESS New Chair on Energy and Social How to Innovate Development, in Partnership in Business Models With Fuel Freedom Foundation 43 Christoph Zott 24 30TH IESE AUTO INDUSTRY MEETING INDEPENDENT OR INFLUENCED Crash-Proof, Emission-Free 44 DECISIONS?: THE ROLE OF MANAGEMENT and Connected Cars What is the Root of Ethical 22ND HEALTH-CARE INDUSTRY MEETING Behavior in Business? Evidence for a Domènec Melé 28 36 Healthier System 46

2 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE FAST FORWARD PROGRAM Global Insights for CROSSROADS Positive Leadership 48 IESE-COLUMBIA DEBATE ON MACROPRUDENTIAL POLICIES 34 BUILDING A SOLID BANKING SYSTEM FOR FINAVES STORIES: WORLDSENSING A Sensor That Connects the World 49 THE COMING DECADES MUNICH CAMPUS HOSTS SESSION WITH EXECUTIVES Critical Mass in Female Employment Drives Bottom Line 50 GLOBAL HR THINK TANK: SHAPING THE FUTURE OF TALENT MANAGEMENT Executive Learning Next Up for Disruption 52 AGENDA 54

PEOPLE

MERCADER FAMILY: A SHARED TOP PEOPLE MANAGEMENT EDUCATION “As an IESE Student, They Made You Feel Special” 60 EUSEBIO DÍAZ-MORERA (MBA ’69) “INVESTING AND HAVING

BILL MCDERMOTT, CEO OF SAP PATIENCE “Leaders Should Realize That No One’s Perfect” 63 ARE THE

LIFE SAME THING. CHAPTER NEWS 64 EVERYTHING YOU’RE IN THE NEWS 67 EXECUTIVE EDUCATION 69 ELSE IS

IESE & YOU SPECULATION” ALUMNI CAREER ADVISING Careers Without Borders 70

LAST WORD

JOAN DE DOU Comparisons 56 Are Still Odious 72

Alumni Magazine IESE JANUARY-MARCH 2016 / No. 140 3 www.facebook.com/alumni.IESE www.twitter.com/IESEalumni 140 General Circulation January-March 37,055 2016 International Circulation ALUMNI MAGAZINE www.iese.edu/alumni 31,706 (Spanish Edition) 5,350 (English Edition) Editorial Director Emeritus Antonio Argandoña Managing Director Index of Companies Aïda Rueda Managing Editor ADECOSE ...... 67 EOS ...... 8 Miquel y Costas ...... 56 Maria Subarroca Adtelligence ...... 8 ERF ...... 64 Munich Re ...... 52 Editor Aguas de Barcelona ...... 60 Ermenegildo Zegna ...... 8 Neckermann Strategic Advisors ...... 44 Ana Galán Airbus ...... 67 Estée Lauder Companies ...... 36 Netafim ...... 48 Senior Editor, English Edition Altadis ...... 67 Financial Times ...... 8 NH Hotel Group ...... 8 Sally Davies Amazon ...... 24 FMI ...... 34 Nike ...... 8 Anjos do Brasil ...... 64 Ford ...... 44 Nissan ...... 44 Contributors Antena 3 ...... 62 FriCSo ...... 24 Noatum ...... 67 Cristina Aced Apple ...... 24 GE ...... 8 Nokia Networks ...... 67 Carles M. Canals Aston Martin Lagonda ...... 53 Goldman Sachs ...... 56 Olam International ...... 36 Mercedes Castelló Axalta Coating Systems ...... 67 Good Food ...... 67 PAD ...... 64 Lara Cummings Banca Catalana ...... 56 Google ...... 44 Plan W ...... 50 Banco de Pagos Internacionales ...... 8 Grifols ...... 46 Plataforma ...... 67 Edu Ferrer Alcover Banco Sabadell ...... 8 GROHE ...... 62 Puig ...... 36 Joan Antoni Guerrero Banco Santander ...... 67 Grupo Zeta ...... 67 Quely ...... 8 Marcella Moohan Bank of England ...... 34 Harvard University ...... 52 Quirónsalud ...... 46 Javier Pampliega BASF ...... 8 Havas Media Group ...... 8 Redpoint e.ventures ...... 64 Phil Seager Bazán ...... 60 Human Capital Leadership Institute Roche Diagnostics ...... 46 Steve Tallantyre BBVA ...... 34 (HCLI) ...... 36 Roland Berger ...... 8 Gemma Tonijuan BMW ...... 8 IAE ...... 64 Sanofi ...... 46 Miquel Utset BNP Paribas Fortis ...... 8 Ibéricos Covap ...... 8 SAP ...... 63 Boskalis International ...... 67 IBM ...... 8 Sartia ...... 64 Photography BP Fuels ...... 67 IDEO ...... 24 School of International David Adamson Bridge Intelligence ...... 8 Indra ...... 67 and Public Affairs (SIPA) ...... 34 Bristol-Myers Squibb ...... 67 INPACSA ...... 60 SEAT ...... 44 Barbara Alper CaixaBank ...... 60 Institute of Coaching ...... 52 Seeliger and Conde ...... 62 Adeline Ang Caja de Barcelona ...... 56 IOC ...... 52 Sener ...... 67 Javier Arias Cartera Industrial Rea ...... 40 JLL Spain ...... 67 Smart Sensor Technology ...... 67 Ray Chua Catalunya Caixa ...... 40 JP Morgan Chase ...... 34 Steelcase ...... 8 Jordi Estruch Cementos Molins ...... 56 Kantox ...... 8 Strathmore University ...... 43 Edu Ferrer Alcover Central Bank of Chile ...... 34 Kellogg School of Management ...... 36 Süddeutsche Zeitung ...... 50 Justine Kang Chevron ...... 64 KPMG ...... 44 Techstars ...... 67 Ryan Lash Citigroup ...... 34 KU Leuven ...... 8 Telefónica ...... 50 Sergio Rinaldi Codorniu Raventós ...... 8 La Caixa ...... 8 Tesla Motors ...... 44 Quim Roser Columbia Business School ...... 48 LG Electronics ...... 67 Toyota ...... 44 Columbia University ...... 34 LIXIL ...... 62 TrialReach ...... 8 Bernhard Schmidt Crown Europe ...... 52 London School of Economics Unit4 ...... 67 Marion Vogel DC Asociados ...... 67 and Political Science ...... 72 University of Cema (UCEMA) ...... 64 De Agostini ...... 36 Marketing Convergence ...... 42 University of Oslo ...... 8 Illustrations Deloitte ...... 8 McKinsey ...... 50 UPS International ...... 36 Luciano Lozano Delta Partners ...... 40 McKinsey & Company Iberia ...... 40 Value Management Consulting Martín Tognola Deoleo ...... 67 Mercedes-Benz ...... 44 (VMC) ...... 67 Deutsche Bank ...... 8 Merck ...... 46 Visa ...... 50 Infographic Diageo ...... 67 Meridia Capital ...... 40 Volvo ...... 44 Errea Comunicación Earlybird Venture Capital ...... 8 Merkamueble ...... 67 Vueling ...... 48 (www.erreacomunicación.com) EDM ...... 56 Michael Kors ...... 32 Wellington Partners ...... 8 Egon Zehnder International ...... 40 Michigan Ross School Wharton School of Business ...... 24 Eley Hawk ...... 67 of Business ...... 53 Wit Consulting ...... 67 Design and Layout Engel & Völkers ...... 67 Microsoft EMEA ...... 8 Worldsensing ...... 49 Enric J. Gisbert

Numbers refer to the first page of the article in which the alumnus appears. Proofreader Mary Brennan Advertising M&N Consulting -Antonio Moré Index of Alumni Tel: 93 544 12 34 Printing Alcázar, Manuel (MBA ’91) ...... 64 Díaz-Morera, Eusebio (MBA ’69) ...... 56 Picamill, Antonio (MBA ’01) ...... 67 QP Print Alemany, Salvador (PDD ’74) ...... 61 Escobar, Javier (PDD ’09) ...... 67 Procaccini, Federico (MBA ’06) ...... 64 Andrés, María (MBA ’96) ...... 67 Galiana, Esther (PADE ’08) ...... 67 Puelinckx, Kristoff (MBA ’96) ...... 40 Published by IESE Business School – University of Navarra Araujo, Alecsandro Galindo, Elsa (MBA ’04) ...... 67 Puig, Mariano (PDG ’64) ...... 36 Depósito legal B.23.746-1963 (PMD Brasil ’15) ...... 69 Go, Timothy (MBA ’12) ...... 42 Ramas, Santiago (EMBA ’02) ...... 67 ISSN 1138/2333 Arrizabalaga, Juan (MBA ’93) ...... 67 González-Adalid, Antonio Sacristán, Mónica (PDD ’13) ...... 67 Ausaverri, Manuel (MBA ’00) ...... 67 (MBA ’75) ...... 40 Sagnier, Pablo (MBA ’90) ...... 40 Badenes, Cristina (MBA ’98) ...... 40 González, Agapito (PDD ’04) ...... 67 Samson Oribio, Rachelle The opinions expressed in the articles published Badrinas, Luis Hernando, Eduardo (EMBA ’12) ...... 67 (MBA ’10) ...... 67 in this magazine are solely those of the authors. Articles may be reproduced, provided that the (GCP ’12 and PADE ’98) ...... 67 Hondong, Cindy (GEMBA ’14) ...... 64 Sánchez, César (PDG ’15) ...... 67 original source is indicated. Battaille, Laurence (MBA ’95) ...... 64 L’Ecuyer, Catherine (MBA ’04) ...... 67 Sarrias, Alberto (MBA ’93) ...... 67 Beltrán, Alejandro (MBA ’98) ...... 40 La Rosa, Javier (MBA ’00) ...... 64 Schoor, Gérard (MBA ’91) ...... 64 Borchardt, Alexandra (PMD ’13) ...... 50 Llamas, Rafael (PADE ’03) ...... 67 Sinha, Smriti Buch, Máximo (MBA ’87) ...... 67 Llosa, Jordi (PDD ’15) ...... 49 (Exchange MBA ’10) ...... 50 Cabeza, Domingo (PDD ’95) ...... 67 Lobo, Francisco (EMBA ’05) ...... 67 Steinsdóttir, Una (AMP ’15) ...... 69 Camarena, Lucía (MBA ’94) ...... 50 Londoño, Fernando (MBA ’03) ...... 64 Suassuna, Rodrigo Carrera, Óscar (EMBA ’04) ...... 67 Lorente, Álvaro (PDG ’04) ...... 67 (PMD Brasil ’15) ...... 69 Catá, Aurora Lorente, Benjamín (AMP ’12) ...... 67 Tabuenca, Pedro (EMBA ’02) ...... 67 (MBA ’89 and PADE ’03) ...... 62 Mercader Barata, Jordi Tesfu, Sahil (MBA ’13) ...... 50 Chimeno, José Gabriel (PDG ’95) ...... 8 (MBA ’03) ...... 60 Vara, José María (MBA ’87) ...... 67 Cordón, Agustí Mercader Miró, Jordi (MBA ’69) ...... 60 Vilajosana, Ignasi (SEP ’16) ...... 49 IESE/University of Navarra (CGP ’14 and PADE ’02) ...... 67 Miano, Giorgio (AMP ’15) ...... 69 Villamor, Isabel (MBA ’16) ...... 48 Alumni Magazine Corral, Javier Minichilli, Federico (PLD ’14) ...... 67 Vives, Jaime (PADE ’08) ...... 46 Avda. Pearson, 21. 08034 Barcelona (MBA ’91 and PADE ’05) ...... 67 Muller, Marissa (MBA ’10) ...... 67 von Boeselager, Georg Tel: 93 253 42 00 • Fax: 93 253 43 43 de Parias, Cristina (MBA ’91) ...... 40 Olave, Carlos (PDG ’11) ...... 67 (AMP Munich ’08) ...... 8 Cno. del Cerro del Águila, 3 de Paz, Javier (MBA ’93) ...... 67 Parra, Íñigo (MBA ’90) ...... 67 Ybarra, Paco (MBA ’87) ...... 34 Ctra. de Castilla, km 5, 180. 28023 Madrid Tel: 91 211 30 00 • Fax: 91 357 29 13 Numbers refer to the first page of the article in which the alumnus appears. www.ee-iese.com

4 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE PUBLICIDAD 5 E D I T O R I A L SPEAKING OF EXCELLENCE…

ANTONIO n some circles of our society, the idea of excellence is frowned ARGANDOÑA upon. It sounds elitist, as though we’re trying to race to the head of Editorial Director of Alumni Magazine the pack. In these contexts, people shy away from excellence. They [email protected] ask, “Who am I to judge?” saying, “Every person has his or her own set of values.” But in our companies, we have no choice but to judge andI evaluate, because the quest for excellence is inherent to business. Not out of pride, but out of necessity. As human beings, we are driven to strive every day to reach our fullest potential. And in a company, when we stop striving for excellence, we show a lack of respect for society. Because if there’s one place where we need to talk about efficiency, growth and responsibility, it’s in business.

We spoke about excellence at the 2015 Global Alumni Reunion, as we see in the cover story of this issue of the Alumni Magazine. And in these pages, we examine excellence through a variety of lenses. Christoph Zott adopts the perspective of innovation. Domènec Melé offers the perspective of ethics. Our interview with Eusebio Díaz Morera (MBA ’69) leads us into the world of finance.

As a backdrop, we have the MBA’s 50th anniversary, which reminds us of IESE’s bid for a program aimed at fostering both excellence and humility, as some prominent alumni discussed in Barcelona on November 30. From his MBA experience, Díaz Morera notes the connection between professional work and personal fulfillment and the importance of good management. And Jordi Mercader Miró, also MBA ’69, notes, “I remember they made you work really hard, but they taught you well. They made you feel special.” So yes, let’s speak of excellence.

6 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE CAREER ADVISORS FIND THE ANSWERS FOR THOSE QUESTIONS YOU DIDN’T KNOW WHO TO ASK.

Barcelona Alan McFarlane English, Portuguese and Spanish PUBLICIDAD15+ years as HR and Change Director with world-leading Diageo plc in Europe and Latin America

Alan is one of the Career Advisors guiding IESE Alumni 7 across the globe Sao Paulo Find yours at www.iese.edu/careeradvisors and request an in-person or online session

Sergi Pallares PDG ‘14

International Business Advisor at Adeem Al Sahra Trading

“I coincided with Alan when finishing the PDG and he helped me orient my professional transition according to the goals that I had defined. Alan created the right atmosphere for working in-depth on the objectives, guiding me during the entire process and helping me achieve results within the planned timeframe.”

Alumni C O V E R S T O R Y

8 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE GLOBAL ALUMNI REUNION 2015 EMBRACING THE POWER OF EXCELLENCE New paradigms in digital technology, macroeconomics, geopolitics and corporate culture are reshaping the business world. Leaders must commit to the concept of excellence in order to embrace the opportunities that are arising, while avoiding the potential pitfalls. This was the theme explored at IESE’s 2015 Global Alumni Reunion, which took place in Munich from October 16-18. Under the title, “Expanding Impact: The Power of Ex- cellence in Business,” the event brought together 1,000 alumni and thought leaders. Its academic directors, Profs. Heinrich Liechtenstein and Marc Sachon, convened panels that explored key issues facing companies today. Which changes pose new risks and which promise new rewards? And, above all, how can the concept of excellence impact on the business landscape of tomorrow?

Alumni Magazine IESE JANUARY-MARCH 2016 / No. 140 9 C O V E R S T O R Y

1. From left to right: Herman Daems, chairman of the boards of directors of BNP Paribas Fortis and KU Leuven; Paul Achleitner, chairman of the supervisory board at Deutsche Bank and IESE professor Pedro Videla.

2. From left to right: Tony Barber, Europe editor of the Financial Times; Jaime Caruana, general manager of the Bank for International Settlements; Janne Haaland Matlary, professor at the University of Oslo; and IESE professor Núria Mas.

e’re here to discuss the power of excellence in business. This is the WE HAVE UNDERSTOOD impact of the purpose of the school: the possi- THAT FOCUSING TOO bility of inspiring excel- MUCH ON GROWTH CAN “lence,” saidW Dean Jordi Canals. Speaking at the Welcome Reception of the Global Alumni Reunion at the BMW Welt BE DANGEROUS” on October 16, Prof. Canals laid out what was to be the main theme of the three-day event and questioned how Paul Achleitner, chairman of the supervisory board at Deutsche Bank deeply the value of excellence had been understood by some leaders in both the private and public sectors. “Ex- cellence is not cheap,” he said. “It is costly in terms of commitment and dedication. We should push from the business side to do more… and better.” Prof. Canals un- derlined the need to place emphasis on excellence in terms ASK YOURSELF THE of ethical values, not just quality of products or services. This theme was explored further the following day in QUESTION, ‘DO I ADD a panel discussion involving Paul Achleitner, chairman of the supervisory board of Deutsche Bank and Herman VALUE TO MY COMPANY?’” Daems, chairman of the boards of BNP Paribas Fortis and Herman Daems, chairman of the boards of directors KU Leuven, and moderated by professor Pedro Videla. of BNP Paribas Fortis and KU Leuven In a climate defined in recent times by corporate scandal, both agreed that a move towards a more ethical model of

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IT’S NOT ENOUGH TO FOCUS ON YOUR OWN HOUSE. YOU HAVE TO ENSURE THE WHOLE NEIGHBORHOOD IS IN ORDER” Jaime Caruana, general manager of the Bank for International Settlements

governance was critical.“When people talk about corpo- Daems, who called for a shift from “ticking boxes to fo- rate governance they think they are talking about rules and cusing on people.” Acknowledging the challenges facing structures, when in reality we are talking about behavior boards today – from intense scrutiny and bureaucracy to and culture,” said Achleitner. “And culture is what people damaged credibility – he nonetheless issued a challenge to do when no one is watching.” board members: “Ask yourself the question, ‘do I add value He drew parallels between the current aftermath of the to my company?’” late 20th-century financial revolution and the 19th-cen- Board members should fully understand the strategic tury industrial revolution; both, he said, had made people issues of the business and that’s key even for independent rich, but involved behavior patterns that were, in hind- directors, according to Daems. The chairman’s func- sight, unacceptable. The aftermath of the 21st-century tion goes beyond board meetings, said Achleitner: “Any digital revolution would, he said, see common aspects of board does meet 6 or 10 times a year, but there may be is- today’s corporate behavior judged unfavorably. As an ex- sues coming up every day or week. The person that should ample, he cited the terms and conditions on web pages, check between meetings is the chairman. The job of the asking, “How many people understand them? Is it right to chairman should be to ensure that the board is effective then sell their data?” and lives up to its responsibility.” According to Achleitner, things are “better today than they were in the past.” In the wake of the Libor affair, THE THREE BIGGEST RISKS TO STABILITY he said, Deutsche Bank had “learned a good deal.” “We The challenges and opportunities of macroeconomic have understood that focusing too much on growth can l geopolitical changes were addressed by a panel that be dangerous – that you need to fix your back office and included Jaime Caruana, general manager of the Bank for infrastructure and ensure you have a system in place to International Settlements. Caruana said that by taking a catch issues. It’s this back-office capability that will sus- long-term, global view, “events that seem isolated can be tain your future growth,” he said. The role of the board seen as being parts of the same movie, one that’s been play- in defining and driving corporate culture was raised by ing since before the economic crisis.”

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PEOPLE ARE BECOMING PART OF THE INNOVATION ENGINE. CONSUMERS HAVE NEW EXPECTATIONS” Bruno Di Leo, senior vice-president of sales and distribution for IBM

He identified three big risks, the first of which was a too- has actually become wealthier over the last 20 years, with slow transition to the “new normal,” involving “holding less acute poverty in developing countries, especially Chi- interest rates too low for too long.” This mistake, in his na and sub-Saharan Africa. This growing wealth, however, opinion, would affect pension funds and the profitability driven by the interconnectedness of media, transport and of the financial services industry and lead to lower produc- supply chains, has created “losers as well as winners. This tivity. The second risk was the $9.6 trillion debt issued by inequality has generated discontent, leading to the de- borrowers outside the US, much of it issued in US dollars stabilization of some existing political orders.” His views by corporations in emerging markets. “If the dollar moves were echoed by the member of IESE International Advisory up and you have issued debt in that currency, you’re in Board (IAB) and professor at the University of Oslo Janne trouble,” he warned. This would lead to tightening condi- Haaland Matlary, who warned that we were facing “some tions and failing growth. He also said that despite post-cri- ugly realities with state security firmly back on the agenda.” sis deleveraging in some pockets, such as households in Caruana argued that the best “vaccine” against these the US, UK and Spain, debt overall has continued to grow, risks is “humility, in terms of how much we know. The especially that of some financial firms, which threatens world is a complex and hard-to-understand system. Tail stability. risks exist. You think you’ll be OK when bad things hap- A third risk, geopolitical fragmentation, could compli- pen but that’s not usually the case. The truth is that the cate these debt issues enormously, he said. Although the rooms are crowded and the doors are getting narrower,” “inward-looking tendency” towards protectionism in he said. “We need to be prepared, ex ante, and build room trade and currencies had been moderated successfully up to maneuver.” to now, it would always be there and could be a major risk It was equally vital to understand the effect that deci- in the case of trade or financial fragmentation. sions taken by large economies have on neighbors, he said. Speaking alongside Caruana was Tony Barber, Europe “It’s not enough to focus on your own house. You have to editor of the Financial Times, who noted that despite a ensure the whole neighborhood is in order,” he concluded, “growing sense of insecurity around the world,” the world in a session moderated by professor Núria Mas.

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3. From left to right: Bruno Di Leo, senior vice-president of sales and distribution at IBM; Charles-Édouard Bouée, CEO of Roland Berger; María Garaña, vice-president of the business solution division of Microsoft EMEA and IESE professor Sandra Sieber.

4. From left to right: Michael Heinz, member of the board of executive directors at BASF; Hans J. Langer, founder and CEO of EOS; and IESE professor Marc Sachon.

DIGITAL DISRUPTION MEANS A DIFFERENT WAY OF WORKING Change of a different kind was forecast by Charles- l Édouard Bouée, CEO of consultancy firm Roland AN INVENTION IS JUST Berger. “A double revolution is under way: technological and sociological,” he said. In this rapidly shifting environ- AN IDEA. AN INNOVATION ment, he believes that corporations need to develop a new IS WHEN THE CASH mindset. “It’s not the time to be defensive: it’s time to be aggressive and aspire to be a leader.” REGISTER RINGS” Bouée estimated that the potential net gain to Euro- Michael Heinz, member of the board pean firms of the digital transformation wave could be of executive directors at BASF as much as €1.25 trillion, and cautioned that there would also be a price to pay for missing the opportunity. He urged firms to have a lighter management footprint – to be more agile – and to provide answers to crucial questions on data and security. “People are now prepared to give information to companies they wouldn’t give to IN GERMANY WE HAVE governments, but who’s going to take care of that data if companies collapse?” he said. CREATIVE COMPANIES. The issue of data security was also addressed by Bru- no Di Leo, senior vice-president of sales and distribu- INNOVATION INCREASES tion for IBM and member of the IESE IAB. “There is a THEIR POTENTIAL” huge opportunity to make the economy more efficient,” he said, “but it urgently requires regulation.” He added, Hans J. Langer, founder and CEO of EOS

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“People are becoming part of the innovation engine. In the tech sector, she said, companies need to under- Consumers have new expectations of companies and stand that their customers “don’t care about the technol- governments.” ogy itself, but about how it affects profit and loss. It’s not In the double revolution mentioned by Bouée, the so- about getting information, it’s about making it work for ciological changes empowered by technology mean that you.” Garaña said there are five core technology “must- individuals now have new expectations of companies and haves” that all companies should integrate to drive busi- of the value of the services provided by governments. As ness results. These are cloud, mobile, social, big data and an example, Di Leo cited health care, which was driving security. “Technology is no longer the facilitator of the the development of next-generation cognitive computing business. It’s the engine of business,” she concluded. and artificial intelligence. Doctors, he said, read on average only five or ten papers in their career on any given disease FEWER HANDS, MORE BRAINS and on average make a correct primary diagnosis only 43 Technology is also the engine of Industry 4.0, which percent of the time. Computers can access a high percent- l draws together multiple concepts such as the Inter- age of the 25 million papers that are published each year net of Things and the Internet of Services within the vision and can already help doctors to avoid expensive errors. of the “Smart Factory.” Two perspectives on these inno- This new health care technology paradigm, said Di Leo, vations in manufacturing were provided by BASF board would change the rules of engagement for pharma and member Michael Heinz, and Hans J. Langer, founder governments. and CEO of 3-D printing pioneer, EOS, in a session mod- Di Leo and Bouée were joined by professor Sandra Sie- erated by professor Marc Sachon. Heinz gave an example ber and by María Garaña, vice-president of the business to explain Industry 4.0: “We used to replace broken pumps solution division of Microsoft EMEA, who urged business in our factories,” said Heinz. “The next step was preven- leaders to avoid becoming “lost in the details of digital. We tative: replacing them after a certain number of hours of should focus on the forest, not the trees and ask how tech- use. The third step was monitoring them so the pumps tell nology is going to impact customers.” us when they need to be replaced. But the next step is that

SAID AT WE’RE VERY PROUD TO THE GLOBAL HOST THIS GLOBAL ALUMNI ALUMNI REUNION IN GERMANY, NOW REUNION… THAT THE SCHOOL HAS A CAMPUS IN MUNICH” Georg von Boeselager (AMP Munich ’08), President of the Germany IESE Alumni Chapter

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the pumps talk to each other to optimize the efficiency of 5. From left to right: Michael Altendorf, co-founder and CEO of Adtelligence; Pablo Graiver, founder and CEO of TrialReach; Antonio Rami, co-founder and reactions and increase yields.” COO of Kantox; Rainer Strohmenger, general partner of Wellington Partners; Employees in the future will need different skill sets. Hendrik Brandis, co-founder and partner of Earlybird Venture Capital; and IESE professor Rob Johnson. “As things get more complicated, they will require people who are better educated, who can work with sophisticated 6. On Saturday, the academic sessions were attended by hundreds of alumni at the ICM. processes,” said Heinz. Langer agreed, summing it up suc- cinctly by saying “Fewer hands, more brains.” New technologies will empower creative people to do things that they couldn’t before, according to Langer. “We in Germany are successful exporters. We have creative companies and en- Antonio Rami, co-founder and COO of foreign exchange gineers. Innovation increases their potential,” he said. platform for businesses Kantox; Pablo Graiver, founder The changes will, however, require innovations in and CEO of medical trials patient-matcher TrialReach; and management. “When we spread technology and product Michael Altendorf, CEO and co-founder of personalized innovation around the world, we have to make sure we are customer intelligence solutions provider Adtelligence pre- not duplicating work,” said Heinz. “We need new ways of sented their projects to two investors: Hendrik Brandis, working with each other, and new IT learning solutions. An co-founder and partner of Earlybird Venture Capital, and invention is just an idea,” he said. “An innovation is when Rainer Strohmenger, general partner of Wellington Part- the cash register rings.” ners, in a session introduced by Prof. Rob Johnson. After hearing the presentations and follow-up Q&A ENTREPRENEURIAL EXCELLENCE IN ACTION sessions, alumni were invited to use the reunion’s cus- This year’s Global Alumni Reunion highlighted exam- tom-built smartphone app to “invest” virtual funds in the l ples of entrepreneurial excellence in an entertaining project with most appeal. The winner, netting more than and informative setting: a simulated funding pitch with 3.4 million virtual euros from alumni, was TrialReach, audience participation. which matches patients to medical trials.

IESE IS LUCKY TO THE REUNION IS ALSO HAVE THE SUPPORT AN EXCEPTIONAL OCCASION OF THE GLOBAL TO STRENGTHEN COMMUNITY OF PERSONAL RELATIONS ALUMNI ” AND BUSINESS LINKS” Prof. Jordi Canals, Jorge Sendagorta, Dean of IESE President of the IESE Alumni Association

Alumni Magazine IESE C O V E R S T O R Y

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INSIDE LOOK AT COMPANIES AND THE CAMPUS CONNECTING WITH INNOVATION AND CULTURE

ctivities at the 2015 Global Alumni Re- facturer, as IESE alumni discovered during a visit to EOS union went beyond a packed academic headquarters in Munich. Facilitated by IESE professor program and connected alumni to Mu- Marc Sachon, the visit afforded a chance to interact with nich’s business culture via visits to three EOS’ vice-president and head of strategy and business de- of the city’s leading innovative compa- velopment, Nikolai Zaepernick, and to see the 3D prin- nies – BMW, GE and Electro-Optical Sys- ting machines up close and in action. temsA (EOS). Other alumni explored the city’s iconic Allianz Founded in 1989 by Hans Langer, the company has be- Arena, home of the Bayern Munich soccer team. Cultural come the global market leader in 3D printing processes for events gave alumni the chance to discover the new IESE metal or plastic components designed for industrial use, Munich campus and give back to society through charity mainly in the automotive, aerospace and medical sectors. fundraising, among other activities. During the tour, IESE Alumni were able to see the abundant “The smaller and more complex the part, the better.” design possibilities – from fuel injection nozzles and flexi- These are not the words you’d expect a manufacturer of ble hinges to hip replacements and dentures, demonstrat- industrial parts to say, but EOS is no traditional manu- ing the limitless applications possible both in shape and

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1., 2. and 3. Alumni enjoyed a guided visit to the facilities of the 3D-printing company EOS. 4. At the visit to the BMW facilities, alumni had the opportunity to sit at the wheel of various vehicles. 5. The open days at the Munich Campus included tours of the facilities, which included a history of the school in Germany. 6. More than 500 alumni gathered at the BMW Welt for the Welcome Reception. 7. International media covered the Global Alumni Reunion. 8. The Bayerischer Hof hotel hosted the gala dinner, with more than 500 alumni. 9. The gala dinner was an occasion to reconnect with former classmates. 10. The ICM hosted the academic sessions. 11. The Solidarity Run, held on Sunday at the Maximilianslagen, raised funds for the charity Mary’s Meals.

material. The beauty of the technology is that it eliminates facilities of the North American-based industrial company the need for molds. Zaepernick told IESE alumni that after and explained, “Here we mostly don’t invent technology: we decades of evolutionary innovation, metal 3D printing had make it feasible for business, just as the founder of our com- now developed enough to be market sustainable and truly pany, Thomas Edison, did with the electric bulb.” take off. Indeed, the company has expanded from 300 to 750 The company’s European research center is one of nine employees in just over five years. around the world, located in Munich to attract European He is confident about the future and envisages the ma- graduates and to innovate close to GE’s businesses and to chines moving closer to the market. So, rather than having its business partners. “Munich is very attractive to young a factory that ships to the world – manufacturing spare professionals and we’re surrounded by small companies parts in Germany, for example, and sending them to clients capable of manufacturing prototypes very quickly,” said around the globe – the EOS 3D technology can be used to Tourbier. send designs digitally and then manufacture them in situ. Alumni toured the imaging and biomedical technologies Besides reducing the need for stock, this would contribute lab and learned about GE’s advances in composites manu- to reducing the carbon footprint and boost sustainable busi- facturing. Although GE is a technology giant, it aspires to ness practices overall. innovate like a start-up. “In the past we’d have developed He advised the alumni to look for where their customers a technology for 10 years and then sold it. Now we launch it experience pressure and pain, because “when you can come and update it,” explained Joerg Stromberger, global strat- up with solutions that address your customers’ pain points, egy leader for electrical technologies & systems. To foster that’s when you really add value.” innovations, GE uses a process called “FastWorks” that de- ploys small, multidisciplinary teams to develop a “Minimum GIANT-SIZED INNOVATION Viable Project” that are tested with clients and presented to Dietmar Tourbier, technology leader at GE Europe, those responsible for investment. This agile process of con- l led another group of alumni around the Munich R&D stant redefinition requires a cultural shift for management

Alumni Magazine IESE JANUARY-MARCH 2016 / No. 140 17 C O V E R S T O R Y

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1. Jordi Calvet, Philippe Vezio, Wendy Shen, Miguel C. Reis, María Navarro, Odile Panciatici, Yolanda Serra, Humoud Al-Mannai and Jorge Tejeda. 2. Stefan Suessenguth, Cosmina Pirlea, Jennifer Hsu, Oliver Seyfried, Saline Kuan and Andri Christian Stocker. 3. Maria de Queralt Puig, Miguel Angel Tovar, Susana Armingau and Francisco José Gil. 4. Henning Kluever, Eduardo Díaz del Río, Rainer Grasberger and Jake Meisenbach. 5. Björn Rettig, Félicia Soumah, Néstor Oller, Eva Fernández, Christian Seller, Brigitta Belinová and David Howes. 6. Federica Ravaglia, Timo Grund, Savita Hinger, Willem Glorie, Chandni Chamria and Aditya Vikram Chamria. 7. Romeo Grzebowski, Danuta Czajka, Iwona Szmitkowska and Kamil Górecki.

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MORE PICTURES OF THE GLOBAL ALUMNI REUNION AT HTTP://BIT.LY/ GAR2015

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8. Victor Escaño, Mayank Sharma, Fan Yang, Fuk Ting Wong and Carlos Seguí. 9. Julia Finkeissen, Marcin Diakonowicz and Ann-Kathrin Duborg. 10. Ruchi Biyami, Manish Kabra and Anjaney Borwankar. 11. José Carlos Portela, Isabel Roldán, Ma. del Carmen López, Paco Martínez, Cristina Latorre and José López. 12. Yong Wu, Sangwani Mabhena and Michael Doucleff. 13. Javier Paluzíe, Marcelo Tenza and Carlos Maiz. 14. Óscar Villanueva, Jesús Labena, Enrique Ortiz, Alejandro Cebrián, Max Radt, Lars König and María Granero.

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15. Eghosa Oriaikhi and Cornelia Gale. 16. Alexander Feischl, Tobias Thelen, Mª Angeles Gómez, Jaume Núñez and Leonhard von Harrach. 17. Pedro Plaza, Gloria Minguella, Margarita Agustí and Miquel Alsius. 18. Elena Santodomingo, Mercedes Erdozain and Laura Martínez. 19. Patrick Schaufuss, Franz von Plettenberg, Ana von Plettenberg, Joseph Bello and Wolf Thyssen. 20. A Mass in honour of alumni who had passed away was held in the Church of the Sacred Heart. 21. Theo Doll, François Geinoz and Bence András. 22. Manuel Garayo, Wenyan Huang, Ricardo Lobera and Yin Hung Cheung.

20 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE but the change is being led from the front by GE’s CEO Jeff the nearby BMW Welt, an impressive exhibition facility for Immelt. The impact of FastWorks was evident to those who BMW vehicles. attended the visit. “I’m really surprised – it was fascinating to see how such a mammoth company is dealing with inno- MUNICH, A NEW HOME FOR IESE ALUMNI vation,” said José Gabriel Chimeno (PDG ’95). At the reception, and speaking to more than 550 people, l Georg Von Boeselager (AMP Munich ’08), president A SPORTING CHANCE FOR SOLIDARITY of the Germany IESE Alumni Chapter, described the new Alumni who visited the Allianz Arena saw the 75,000- campus in Munich as a “a milestone in IESE’s history” and l seat stadium from pitch-side as they sat on the noted that the local alumni chapter had grown to more manager’s bench and took a VIP tour behind the scenes than 500 members – more than 1,000 if Austria and Swit- at one of Europe’s greatest sports facilities. Meanwhile 73 zerland were included – since the previous Global Alumni alumni chose to participate in a different kind of sporting ac- Reunion here in 2006. He pointed out that Munich was a tion on Sunday by joining a Solidarity Run that raised €1,460 city of arrivals and beginnings, and emphasized its start- for the Mary’s Meals charity (www.marysmeals.org.uk). The up culture. “There’s a number of reasons why I think that money will be put to use in the Mwazowala Primary School IESE has made a good decision by opening a new campus in Dowa, Central Malawi, where it will provide meals for 101 in Munich,” he said. During the Global Alumni Reunion children for a year, helping them to stay in school and have weekend, alumni had the opportunity to get to know the a brighter future. IESE’s new Munich campus first-hand. More than 350 Those who prefer motorized means of getting around alumni enjoyed guided tours of the campus on the Friday were able to visit Munich’s Transport Museum. As well as and Sunday, learning about the building’s history and new seeing historic trains and automobiles, the 23 visiting alum- state-of-the-art facilities. ni also explored Munich’s responses to the 21st-century There were also occasions to reconnect with former challenges of traffic and mobility. classmates, such as the Gala Dinner at the famous Bayeris- Alumni interested in cars and motorcycles were able to cher Hof hall, attended by over 500 alumni. To commemo- take a look around the BMW production facilities in the rate deceased alumni, a Holy Mass was held at the Church north of Munich, in a guided visit that took place on Fri- of the Sacred Heart with Dr. Christoph Bockamp, vicar of day. That evening, the Welcome reception was hosted at the Opus Dei Prelature in Germany.

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Alumni Magazine IESE JANUARY-MARCH 2016 / No. 140 21 OUR CAMPUS IN MUNICH

The Munich campus comprises a main building FUTURE PLANS CLASSROOM ANNEX The classroom has At the rear of the • The campus will house two research centers: one with four floors; one of which is a semi- dedicated to family businesses and the other to a capacity of 75. main building is a basement with direct natural light. Behind studying manufacturing and innovation. second building, • It will also be used to teach a module in the World whose ground floor this building is an annex, which houses an Executive MBA. houses a dining room • New custom programs in Germany will be taught on that has a capacity additional classroom. The complex is located in the campus, in addition to the Advanced Management of 50. Program and Program for Management Development the heart of the Bavarian capital. that IESE already teaches on the site. • The campus will be used to promote new executive education programs in the German market. CLASSROOM EXPANSION MAIN BUILDING 1 The building has a second floor, 2 10 1 2 3 4 which will house offices. 3 9 5 6 7 Offices 2 8 9 10 4 5 6 7 8 2 247.7 m DINING ROOM

1 Hall

2 Workroom 1 3 Classroom for 12 252.1 m up to 75 people 3 2

1 Entrance 1 2 Hall 9 3 3 4 5 Offices 2 4 OFFICE 0 6 7 Multi-purpose room FIRST FLOOR 266.8 m2 8 8 Chapel 5 6 7 The first floor of the 9 Visitors’ room CLASSROOM annex is reserved for teaching and has a HALL 1 Hall-Catering classroom for up to 20 people. 2 3 4 7 GROUND FLOOR Workrooms 1 CHAPEL 5 6 2 The ground floor houses a multi-purpose -1 8 2 room, a hall for receptions and a chapel. The 278.7 m 7 8 9 Offices WORK- 3 4 5 6 9 ROOM multi-purpose room can be adapted into a lounge and a boardroom, two workrooms, or an auditorium with a capacity for 100 ANNEX BUILDING people. MULTI-PURPOSE ROOM 1 Terrace 1 LOCATION 2 Classroom for up to 20 people Maria-Theresia-Strasse 15 81675 Munich 1 2 69.81 m2 ANGEL OF PEACE

F WORK- B ROOM 1 Dining room IN NUMBERS Isar IESE M 0 1.419 1 square meters 97.81 m2 UNIVERSITY 2 16 SEMI-BASEMENT HOSPITAL classrooms ofﬁces The semi-basement MAXIMILIANEUM 6 1 receives direct natural light workrooms chapel and incorporates a central hall, which is surrounded M F Train 2 1 by ofﬁces. -1 multi-purpose dining room M Metro 2 31.81 m rooms B Bus

22 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE OUR CAMPUS IN MUNICH

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2 Workroom 1 3 Classroom for 12 252.1 m up to 75 people 3 2

Alumni Magazine IESE JANUARY-MARCH 2016 / No. 140 23 I D E A S CHANGING THE WAY THE COMPANY DOES BUSINESS HOW TO INNOVATE IN BUSINESS MODELS

CHRISTOPH ZOTT hen we in their business model) is often as Professor of think of in- important, or even more important, Entrepreneurship, IESE novation than what it does. we usually think of new CHOOSING A BUSINESS MODEL Entrepreneurs and companies products, The business model is funda- applications l mental to a firm’s strategy. It can benefit radically from an or services, is one of the most strategic choices innovative business model, but this kind of innovation is often that entrepreneurs and managers expensiveW and time-consuming, and can make, because it defines how the but frequently lack the ex- has uncertain future returns. Great firm embeds itself in its context in pertise required to build one. innovations can be found at all levels terms of the networks of companies With this need in mind, IESE of business and sometimes in unex- and institutions and customers that pected places – not only in new prod- surround it. It stakes out its friends Prof. Christoph Zott and Prof. ucts or services, but also in processes and foes, and helps firms make crucial Raphael Amit of the Wharton and systems. decisions when it comes to anchoring One such example of a significant their competitive advantage. School developed a step- source of innovation is, increasingly, Take the case of Israeli start-up by-step approach derived the business model. Business model FriCSo, which developed a friction- from the world of design that innovation (BMI) does not involve reduction technology. They had three changing products or services, it is a very different business models to applies across a range of in- reconfiguration of how the company choose from. As machine manufactur- dustries. The model is flexible does business. It might bring togeth- ers, they could embed the technology er previously unconnected players; it in machines and sell them to resellers and can be used both for new may link current players in new ways, and suppliers; as an R&D company, ventures and established or it can introduce completely new they could license their technology players or mechanisms. to machine manufacturers; and as a firms. The value of this type of innova- service provider, they could provide tion to stakeholders can be tremen- an outsourced service to resellers and dous. Economist Intelligence Unit suppliers in manufacturing. analysts even conclude that how Each option is very different in STRATEGY • BUSINESS MODEL • INNOVATION companies do business (as defined terms of costs, core capabilities,

24 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE Alumni Magazine IESE JANUARY-MARCH 2016 / No. 140 25 I D E A S

competition and potential partners. customers to consume more. Ama- TO QUALIFY AS A In the manufacturing model it would zon did this through business model compete against other established innovation. BUSINESS MODEL and powerful machine manufactur- The newness, novelty or innova- INNOVATION, ers. In the licensing model it would tiveness of the business model can partner with them. Each model had be in its content (its organizational A NOVELTY different capital requirements –the activities), its structure (exchanges), machine manufacturing model re- or its governance (partnerships). And NEEDS TO BE quired significant investment, for because of the interconnected nature instance. of the business model, a change to EXPRESSED AT Three converging trends have any of these parts can lead to further been driving companies to bring in- changes at the system-level, resulting THE SYSTEM novation into their business models: in changed functionalities and per- the digitization of business, the in- formance prospects. LEVEL, AND IT creasing numbers of digital natives Take Apple, for example. In the who expect a slick online experience, early years Apple designed, pro- MUST BE NEW TO and the increasing importance of duced and sold hardware. The value customer input and feedback. These in its business model was in the sale THE WORLD developments have spurred firms to of hardware. But once Apple intro- fundamentally rethink and reshape duced the iPod, it drastically altered the ways they do business. Innovat- its business model by expanding its ing at the level of the business model reach into the music industry and is one way to do just this. intellectual property realm to claim a stake in how its hardware was used. BUSINESS MODEL INNOVATION iTunes was a further breakthrough, The business model is an activ- which saw Apple convince the music l ity system adopted by a firm to industry to sell by the song while tak- meet market needs and create value ing a share of every download. All this for stakeholders, whereas business changed how the company interact- model innovation (BMI) is the design ed with its product-market space. It and implementation of an activity continued to produce devices but was system that is new to the firm, or new involved with the content for those to the product-market space in which devices. And of course this led to it competes, and recalibrates how it enormous benefits to stakeholders. does business in that space. Modifying an activity alone with- THE FIVE-STEP PROCESS out changing the entire activity sys- So how can business models be tem or the way the company does l innovated? Business model in- business does not constitute business novation has been relatively neglect- model innovation. So implementing ed and no generalizable process has new technology does not qualify. emerged. In view of this missing link, Take the adoption of injection-mold- we looked at the design process mod- ing technology for making candles. el for inspiration to fill the gap. This is a technological innovation This BMI process is drawn from that makes manufacturing more effi- the design process model used by the cient, but it is not BMI. California design firm IDEO. While BMI redefines an existing product the original purpose of the business or service and how it is delivered to model was to design new products, it the customer. Take the example of has also been used to design services Dell. Dell implemented a custom- and entirely new businesses. The pro- er-driven, build-to-order business cess has enormous versatility, which model, which replaced the traditional makes it a good framework for BMI. build-to-stock model of selling com- There are five stages that make up puters through retail stores. the design process: Some consider that BMI enlarges 1 Observe. How do customers use the economic pie by attracting new your product, whether it is hospi- customers or encouraging existing tal services, trains or cell phones?

26 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE Observation means heading to the The stakeholders experience the source, not to market research ex- concepts in a tangible way and the BUSINESS MODEL perts. The designer needs to develop firm can gauge where best to dedicate a deep understanding of the custom- its resources by classifying the alter- DESIGN COULD er experience, especially of the prob- natives and evaluating feasibility, vi- HELP CEOS, lems customers face when buying and ability and desirability. Thus the firm consuming products and services. To can narrow down the choices for new ENTREPRE- increase the chances of generating business model designs and achieve novel ideas, designers need to be keen focus and clarity of details. NEURS AND observers. New ideas are more likely 5 Implement. The last stage of the to come from spotting the incongru- process involves selecting the de- GENERAL ous detail in a mechanic’s shop than sign that is the best fit. Once the new by hiring expert consultants or asking or modified business plan has been MANAGERS statistically average people to fill out a chosen, the firm must make neces- questionnaire. sary organizational and strategic ad- THINK MORE All business model stakeholders, aptations. Before a full-scale launch, (suppliers, partners, and the firm it can be wise to create a small-scale PROACTIVELY itself) not just end-users, need to be experiment for the selected business taken into consideration. In business model, allowing customers and other ABOUT THE WAY model innovation, the observation important stakeholders to experience stage is broader and more complex the new model over a period of time, THEIR COMPANY than it is for the design of new prod- to test key assumptions. Apple did ucts or services. just this in its first location in Tysons IS DOING 2 Synthesize. Take stock, share and Corner Center, Virginia in 2001, before make sense of the data received at launching its retail stores more widely. BUSINESS the observation stage. In BMI, this means gaining a holistic understand- The five stages of business mod- ing of the challenges and influences el innovation are linked in a closed of the design process. It means ask- loop. Business model innovation ing important questions: who are our design teams may cycle through the customers? What are their needs and process multiple times, even skip- goals? How can we help them solve ping steps, before converging on a their problems and where are we fall- new business model design. That de- ing short in doing this? To what extent sign will be novel in terms of its con- do we rely on strategic partners to tent, structure and/or governance, conduct activities for us? There needs but to qualify as business model in- to be a strong sense of the market gap. novation, that novelty needs to be Synthesis is an attempt to move for- expressed at the system level, and it ward, create a response to the prob- must be “new to the world.” lem and generate solutions. Business model innovation can 3 Generate. Create potential de- span firm and even industry bound- sign solutions; brainstorm. This may aries. The creative process that leads involve modifying an existing busi- to BMI involves outside-the-box ness model in novel ways or creating thinking. It involves re-combining an entirely new business model from resources and capabilities for new scratch. innovative outcomes bringing value 4 Refine. Evaluate and concept-test creation opportunities for the firm the various proposed solutions. Ex- and its stakeholders. periment on a small scale to make This kind of mindful business sure the innovation is moving in the model design is a first, crucial step right direction. This process brings toward breakthrough BMI, and it concepts to life; it is a low-risk way can be considered a firm-level ca- MORE INFORMATION: Zott, Christoph; Amit, Raphael, “Business Model to explore different directions. Cus- pability. As such, it could become an Innovation: Toward a Process Perspective.” tomer and stakeholder involvement invaluable tool to help CEOs, entre- In: Christina E. Shalley, Michael A. Hitt, and Jing Zhou. “Oxford Handbook of Creativity, Innovation here is crucial as the designers can preneurs and general managers think and Entrepreneurship.” Oxford, UK: Oxford present their prototypes and ob- more proactively about the way their University Press, 2015. pp 395-406 (Oxford Library of Psychology). serve reactions and get feedback. company is doing business.

Alumni Magazine IESE JANUARY-MARCH 2016 / No. 140 27 I D E A S INDEPENDENT OR INFLUENCED DECISIONS?: THE ROLE OF MANAGEMENT WHAT IS THE ROOT OF ETHICAL BEHAVIOR IN BUSINESS?

DOMÈNEC MELÉ n 30 years dedicated to INTERNAL FACTORS Emeritus Professor business ethics, I have James Rest, well known for of Business Ethics, IESE had the opportunity to l his work on moral psychology, witness many positive pointed out four key components behaviors in business of moral behavior. A person who What leads us to do right or management. I have ob- has developed all four components served efficient managers is morally mature and will exhibit to do wrong? Our personal who act with integrity and moral behavior. The elements are: qualities play a big role, but honesty against all odds, showing a) moral sensitivity, b) moral judg- Irespect and taking care of the peo- ment, c) moral motivation, and d) external elements present in ple around them, and encouraging moral character. organizations can also influ- their growth as professionals and • Moral sensitivity. This element is ence our behavior. Companies human beings. But I have also seen the ability to recognize the ethical and studied many instances of de- aspects of a situation that should be can develop incentives and plorable behavior. taken into account in deciding how guidelines on using power to In both of these cases, we face the to act. People with moral sensitivi- same question: What is the root of ty realize how an action or decision encourage their members to ethical behavior? Does it stem from will affect the wellbeing of others. act ethically. a person’s internal capacity to re- They also can detect dilemmas and sist wrong and to do right, or does it realize that they must be resolved. stem from external factors? With practice, moral sensitivity A simple response would be to can be increased. On the other hand, say that it depends on both things. moral sensitivity can decrease if Psychological and sociological stud- people are obsessed with economic ies have shown us a number of fac- outcomes or if they systematically tors that influence moral behavior, neglect ethics in decision-making. and we can apply this knowledge to In such cases, moral sensitivity can BUSINESS ETHICS • ETHICAL BEHAVIOR • draw conclusions about good man- disappear or the person may only MORAL CHARACTER agement. appear to display it in those cases in

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which an unethical solution would EXTERNAL FACTORS BUILDING be prohibited by law anyway. Sensitivity, judgment and moral • Moral judgment. This element l motivation can be influenced by AN ETHICAL is the moral evaluation of an action factors that are external to the per- COMPANY or decision and the resolution of son and that, to a greater or lesser the dilemmas it poses. To execute degree, are present in any business REQUIRES moral judgment, a person uses eth- organization. Various studies high- ical principles, as well as sincerity light the following: a) power and SELECTION AND and practical wisdom, to evaluate leadership, b) incentives and eval- a situation. A virtuous person with uation criteria, c) organizational PROMOTION a reasonable training in ethics will culture and d) codes of conduct and make better moral judgments. Mor- accountability. PROCESSES al judgment comes from a sense • Power. Formal or political power of duty that drives one’s own con- deriving from a person’s position THAT EVALUATE science and determines whether an can have a strong effect on behav- individual will carry out an action or ior in the company. Other forms of CANDIDATES’ avoid it. power and leadership can also be • Moral motivation. Moral moti- very influential. Power may gen- MORALITY vation is the impulse underlying a erate fear or motivations that lead person’s decision to follow moral people to act in one way or another. judgment. For example, we might This happens when employees fear be led by our conscience and sense reproach or punishment, or on the of duty to respond to a situation in other hand, when they anticipate a certain way, or we might be moti- acceptance or a reward. Leadership vated by our potential contribution can be transformative, affecting to society or our growth as a human sensitivity, judgment and motiva- being. A person’s moral motivation tion, and leaders can set an example can also involve certain ideals, such for employees. as acting in accordance with his or • Incentives and evaluation. A spe- her religion or in accordance with cific form of the exercise of power is God’s will. reflected in the system of incentives All people have a spontaneous and performance evaluations. Ef- motivation to do right and avoid fective incentives can motivate be- doing wrong, but this motivation havior. However, when systems of can be more or less developed in incentives, evaluation and monitor- each individual. When moral moti- ing focus exclusively on numerical vation is strong enough, it can allow results, they are unlikely to produce a person to overcome conflicting a moral motivation in behavior. motives, and, for example, refuse to • Organizational culture. This participate in a dirty but lucrative element includes convictions and business deal. shared values, as well as an organi- • Moral character. Moral character zation’s own way of doing things. A is a set of lasting positive habits or culture with solid ethical values, in- traits, traditionally known as “vir- volving moral integrity and respect tues.” A person’s character devel- for others, can foster a greater moral ops over their life through decisions sensitivity and have a positive mo- freely made and actions carried out. tivating effect. By the same token, In the business context, the traits a culture lacking in values – for ex- that stand out include justice, truth- ample, one that harshly penalizes fulness and courage. Moral charac- failures or tolerates bribery – does ter provides an inner strength to act not encourage moral behavior. with promptness, ease and joy. • Rules of conduct and account- Moral character is the most im- ability. Compliance standards, portant of the four elements, be- codes of conduct and accountabil- cause it strengthens moral sensi- ity procedures can also influence tivity, fosters good judgment and the sensitivity, judgment and mo- facilitates the motivation to do good. tivation of company members.

30 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE However, these tools have little administer electric charges causing effect unless they are implemented the death of innocent and defense- THE EFFECTIVE consistently throughout the whole less people. They likely rational - organization. Moreover, their influ- ized that it was only an experiment EXERCISE OF ence is restricted to a limited num- or they worried that they wouldn’t POWER AND ber of aspects that do not cover all receive the promised reward if they behaviors. didn’t follow instructions. Perhaps LEADERSHIP, they were lacking courage to refuse THE MILGRAM EXPERIMENT to continue. WELL-DESIGNED There has been much debate l on the real influence of exter- PRACTICAL CONSEQUENCES INCENTIVES AND nal factors on the moral behavior If we examine the elements of of people in organizations. Some l moral behavior and the exter- PERFORMANCE points of view place so much em- nal influencing factors, we can draw phasis on external factors that they some useful conclusions for man- EVALUATIONS, deny that a person’s character can agement: influence his or her behavior. Writ- 1 All human beings have some AND THE RIGHT ers adopting this point of view tend ability to recognize moral quanda- to allude to Milgram’s famous 1961 ries, to apply moral discernment and ORGANIZA experiment, whose results have to motivate themselves to do good, been replicated in similar experi- although these abilities can be more TIONAL CULTURE ments on numerous occasions. or less developed in different indi- In this experiment, volunteers viduals. All people possess a moral CAN ENCOURAGE were pressured to administer elec- character, which can be stronger or tric shocks of increasing strength to weaker. Building an ethical compa- MORAL people located in an adjoining room ny requires selection and promotion every time the latter answered a processes that evaluate candidates’ BEHAVIOR question incorrectly. Unbeknownst morality. to the volunteers, the people receiv- 2 Moral behavior depends on ing the shocks were in fact actors each person. However, the less de- and the shocks were simulated. The veloped the moral maturity of com- actors responded to each simulated pany members, the greater will be discharge with shouts, which the the influence of the business envi- volunteers could hear. The ‘Exper- ronment on their behavior. imenter’ ordered the volunteers to 3 Employees and managers continue, adding that the proce- may be afraid to act right or express dure was legal and that nothing bad their moral judgments when the or- would happen. At the end of the ex- ganizational environment doesn’t periment, volunteers would receive encourage it. Nonetheless, moral a promised reward. conscience does not disappear when Around 60 percent of partici- we get to work, but it can abate. The pants followed orders, even those moral character of each person is discharges that they believed were always present and it pushes people potentially lethal. Subsequent to act right and to fight the tenden- re-studies have yielded similar re- cy toward greed and excessive am- sults. bition. Although the percentage is high, 4 Some business policies and we cannot ignore character and oth- practices can reinforce or promote er components of moral behavior. A moral behavior. In particular, the ef- rigorous interpretation of Milgram’s fective exercise of power and lead- must point out that 40 percent of ership, well-designed incentives volunteers refused to continue be- and evaluations and the right orga- cause their conscience did not al- nizational culture play an important low it and they had enough courage role. Compliance standards, codes to say no. It is also likely that those of business conduct and account- who followed orders to the end also ability procedures, when imple- realized that it was not acceptable to mented well, can also help.

Alumni Magazine IESE JANUARY-MARCH 2016 / No. 140 31 I D E A S HIGHLIGHTS

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RELEVANT BUSINESS KNOWLEDGE Integrity PRICE PER EDITION €18/$25

• ISSUE 27 • ieseinsight.com/review HEINRICH LIECHTENSTEIN AND MICHAEL BRIGL FOURTH QUARTER 2015 Recent scandals have seen a legal

INSIDE Venture capitalists in Europe need to think big, INTEGRATE TO INNOVATE crackdown on Taking ideas from the edge and bringing them into your core THE UPS & DOWNS OF HIERARCHIES When they help, when they hurt MANAGING GLOBAL ECONOMIC RISKS Interview International with Jaime Caruana, Settlements Bank for ORS mismanagement. K MICHAEL DEEP INSIGHT Time for a strategic rethink? with larger funds that cross borders. This is the Walk the Talk:With But no amount of Managing Integrity legislation will conclusion of a study that shows that while U.S. A POSITIVE BUSINESS CULTURE THE KEYS TO THE CHIEF INTEGRITYOF EMERGING OFFICER MARKETS MAKE WAY FOR ever be enough if NAVIGATING THE REALITIES executives don’t also change private investors are more active than ever their corporate cultures and practices to favor integrity. in the Old World, Europeans themselves have The CEO and the board, espe- backed off. cially, must lead by example. This is the focus of the latest What is keeping private European investors away? IESE Insight magazine, in which IESE professors call According to the authors, current regulations are for ethics and integrity to an obstacle. The authors recommend changes to become part of everyday decision-making. In discuss- increase transparency and unity in the ing the growing prominence of the compliance function European VC market. in multinational companies, guest editor Antonino Vac- caro calls for a bigger role: the MORE INFORMATION: Chief Integrity Officer. Man- IESE Insight / Finance agers need to behave less like police and more like “change agents,” putting integrity into practice particularly in emerging markets where local standards need to be reconciled with headquarters’. Also in this issue, IESE’s Fred Kraw- chuk urges the creation of Strategic Integration Units to help leaders deal with VUCA (volatile, uncertain, complex BEYOND EFFECTIVENESS and ambiguous) conditions. Jaime Caruana, of the Bank RAFAEL ANDREU, JOSEP RIVEROLA, JOSEP MARIA ROSANAS AND RAFAEL DE SANTIAGO for International Settlements, elaborates on the main risks The authors analyze the behav- on managers’ ability to estimate the facing managers today. “It’s l iors of companies as they ex- true profile of their companies. While in everyone’s best interest to ecute projects and propose a model this may sound like common sense, think about the repercussions that accounts not only for profit the authors offer an additional in- of what you do,” he says. In maximization but also for learning sight: Wrong perceptions can lead other words, more than going and capability development within to choosing projects that may actu- in the same direction, make the company. ally cause a firm to lose capabilities. sure you’re going in the right They classify companies’ capa- “When managers consider only effec- direction. bilities in terms of three key areas tiveness, ignoring attractiveness and TO SUSCRIBE TO THE MAGAZINE: – effectiveness, attractiveness and unity, things get worse,” they warn. www.ieseinsight.com/review unity – concluding that firm stability MORE INFORMATION: and longevity are highly dependent IESE Insight / Accounting and Control

32 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE What Do Our Everyday Purchases Have to Do With Ethics?

CARLOS RODRÍGUEZ LLUESMA AND PABLO GARCÍA RUIZ Consumption is obviously part of ter of the Handbook of Virtue Ethics in life, but what about its negative Business Management. Their thesis consequences? How is that ethical consumption do we make the right can help us realize our human choices? For the au- potential and forms part thors, the key question of the quest for a morally is whether consumption good life. In short, we are leads to our moral devel- what we consume, in a mor- opment as human beings. al sense as well. They explore the world of MORE INFORMATION: ethical consumption in a chap- IESE Insight / Business Ethics and Corporate Social Responsibility

A NEW MANAGEMENT MODEL THAT PRIORITIZES CASE KNOWLEDGE BEATRIZ MUÑOZ-SECA Michael Kors: Professor Muñoz-Seca pro- l poses moving beyond the three Time for a New Strategy? big management models of the 20th ALICE TOZER, VERÓNICA ARRIBAS, century ( just in time, lean and ag- FABRIZIO FERRARO AND ANDREA BALDO ile). Her technical note, “A Model for Configuring Operations in Ser- Michael Kors’ 2011 IPO – which raised vice Companies,” presents Ser - 944 million dollars – marked a fash- vice Problem Driven Management ion industry milestone. But investor (SPDM), a model that emphasizes knowledge. confidence has ebbed in 2015 after Muñoz-Seca suggests three ac- a drop in the company’s North tion levels: operations strategy and American sales. In May, making the strategy concrete; de- the company’s stock signing the operational structure; plunged 24 percent. Is and operations. She also details 22 steps with corresponding tools for this a simple case of mar- implementing the SPDM model. ket volatility or a sign that But she emphasizes that these steps the company needs a new aren’t set in stone; each organiza- strategy? tion should adapt them to its own reality. MORE INFORMATION: www.ieseinsight.com/review MORE INFORMATION: IESE Insight / Services and Operations Management

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IESE-COLUMBIA DEBATE ON MACROPRUDENTIAL POLICIES BUILDING A SOLID BANKING SYSTEM FOR THE COMING DECADES

he financial crisis led to myriad regulations Macroprudential policies and and strategies for preventing a repeat of such a collapse – including macropruden- tools, such as stress tests, are tial policies, which seek to strengthen the resilience of the financial system as a whole. being used to manage risk in Many questions remain as to how these banking. But are they doing interactT with monetary policy and microprudential policies at individual banks, whether tools (such as stress tests) have been designed and used adequately, and what their more harm than good? long-term consequences will be. To address these complex questions, IESE and Columbia University’s School of Experts from around the International and Public Affairs (SIPA) jointly gathered a distinguished group of banking executives, regulators and world gathered in New York academics from around the world at Columbia’s Italian Academy in New York on November 12. to debate the way forward Under the heading “Next Steps for Macroprudential Policies” and the academic direction conducted by Juan J. for the financial sector. Toribio, from IESE, and Patricia Mosser, from Columbia University, the event featured speakers including Dong He, deputy director of monetary and capital markets at the IMF; Mervyn King, former governor of the Bank of England; and Nellie Liang, director of the Office of Financial Stability

1. Sandie E. O’Connor, chief regulatory officer at JP Morgan Chase & Co. 2. Professor José M. Campa. 3. Paco Ybarra (MBA’87), global head of markets at Citigroup. 4. Claudio Raddatz, director of the financial policy division at the Central Bank of Chile. 5. Rafael Salinas, chief risk officer at BBVA. 6. Professor Juan J. Toribio. 7. Nellie Liang, director of the Office of Financial Stability Policy and Research at the US Federal Reserve Board. 8. Mervyn King, former governor of the Bank of England.

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34 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE Policy and Research at the US Federal Reserve Board. IESE as insufficiently insulated from politics; and a fear that firms professor José M. Campa also participated in panels. In his will “back-engineer” their processes to pass tests, while ig- opening remarks, IESE dean Jordi Canals said: “This is a fas- noring other risks. Suggestions included employing a “mul- cinating time, where pressing issues such as macroprudential tiple ratio approach including leverage ratio” when building policies will be set for the next few decades.” To promote the models – using market indicators of risk, and publicly dis- free interchange of ideas, the event was held under the Cha- closing data from regulators. tham House Rule, which establishes that participants may not While regulators can’t be expected to be “completely reveal the identity of any particular speaker. prescient about the next crisis,” it was decided, they nonetheless have an important role in identifying the early signs BUFFERS AGAINST CYCLICAL BUSTS of one. For global banks, geographical diversification is a key It was agreed that though macroprudential policies are goal, meaning they are subjected to stress tests from individ- lincreasingly used, especially in emerging markets, a full ual countries, which may not assess their overall strength framework for these policies, which can be “fuzzy” and hard around the world. to define, is still far from being established. The industry’s ambition to identify and design macro- PRUDENT OR RISKY? prudential tools currently exceeds its understanding of how While some speakers praised the “stability” genera- they work. One speaker discussed some data indicating that lted by macroprudential policies, they shared serious the policies are “buffers against cyclical busts,” but are sel- concerns about other consequences resulting from their dom sufficient to stop them, as it can be difficult to hold on deployment. There was consensus that regulations dis- to any given course of action and “lean against the wind.” courage diversification, encourage the “homogenization Several of the banking executives in attendance agreed of balance sheets,” and decrease trader confidence. Some that macroprudential policies have made their institutions spoke of how regulations create distortions in the market safer and better poised to withstand system-wide upheav- and “herd” behavior. als. Minimum standards for capital requirements have left As for capital requirements, finding the right balance was banks with more assets and cash, and policies in place to a theme of discussion, as banks must operate under some “pay for their own funerals,” without interruption of service risk in order to serve their purpose. One speaker went as far to companies or financial injections from the government. as to say that regulatory changes have severely challenged It is now both “difficult and safe” for big banks to die. the business model of banks, and that pushing them too far Stress tests, which run scenarios to see whether banks could make them disappear; in turn destroying the ability of can withstand adverse conditions, are the most widely used financial markets to work well. macroprudential tools. Speakers debated whether stress The rise of “shadow” banks was discussed as another tests are technically accurate and helpful. The so-called consequence of regulations, with many speakers predict- “fetishization of bank balances,” leaving out other factors ing that the regulatory pendulum will soon swing away from in revenue risk, was called into question; while the risks built the big banks and toward these other financial intermedi- into stress test models were themselves seen to be “at risk aries. More scrutiny of macroprudential policies is needed, of changing.” Concerns included the “Kafkaesque” nature attendees agreed, along with a more “forest versus trees” of the more qualitative stress tests, a secretive process seen analysis of the financial system as a whole.

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Alumni Magazine IESE JANUARY-MARCH 2016 / No. 140 35 C R O S OS R OI A D S IESE MBA 50TH ANNIVERSARY REACHING OUT TO THE GLOBAL IESE MBA FAMILY New York, Milan, Singapore and Miami hosted events to celebrate the first half-century of the MBA program.

ome 50 years ago, around 30 mostly young, by Ivan Lansberg, academic director of Family Enterprise male engineering and economics graduates Executive Programs at Kellogg School of Management, found walked up Avenida Pearson in Barcelona to common ground on how to create long-term value. “Family embark on IESE’s maiden two-year MBA companies are more long-term oriented than other public program, the first of its kind in Europe. Half a companies,” said Freda. “And I personally believe that a long- century later, on the other side of the Atlantic, term orientation of capitalism is one of the most important alumniS gathered at IESE’s New York campus on November contributions we can make in the world.” 9 to join faculty and business leaders in celebration and re- For Freda, family companies are more authentic. “This flection. authenticity is increasingly valuable in today’s flat world. Dean Jordi Canals was joined by president and CEO of Family companies are so much more interested in long- Estée Lauder Companies, Fabrizio Freda, and former chair- term quality because their name is on the door or the prod- man of Puig, Mariano Puig (PDG ’64). The panel, moderated uct,” he said.

36 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE Puig agreed with him. “In 100 years, we’ve had good and bad moments. When the company was losing money, our suppliers, backers and employees carried on because they saw that the family was involved and committed,” he com- A LONG-TERM mented. “We have generated wealth by adding value to our products. We want buying our products to be a pleasure for ORIENTATION OF people,” he added. The idea resonated with Dean Canals: “You see that CAPITALISM IS ONE family businesses like Estée Lauder and Puig have a long- term sense of purpose. We have a purpose: We want to de- OF THE MOST velop leaders who have a deep, positive and lasting impact on other people, working for companies and society with IMPORTANT professional excellence, integrity and a sense of service,” he said. CONTRIBUTIONS

PASSING THE MANTLE WE CAN MAKE” For family companies, succession plans can be far l more complicated to negotiate than for publically Fabrizio Freda, president and CEO listed firms, though. “Family companies do well to under- of Estée Lauder Companies stand when the moment has arrived to join forces with professional managers who can do what the company can’t do internally,” said Freda. Freda helped spur the company’s growth from annual revenue of $6 billion in 2009 when he joined, to $11 billion today. Central to this growth was a strategic shift to global Globalization is a challenge that the school has con- diversification. In 2009, 65 percent of Estée Lauder’s reve- sistently responded to. The current cohort of IESE MBA nue came from its home market in the U.S. Now that figure 2016 candidates is 84 percent foreign, compared to just is 37 percent. 15 percent 50 years ago. Women make up over a quarter “Becoming global is about developing the ability to be lo- of the graduating class of 2016, compared to zero in the cally relevant wherever you are in the world,” Freda stated. first intake. “We put in local management wherever we are, and we don’t Dean Canals said that the MBA program is “the engine” standardize – we listen to local consumers,” he added. that has driven the internationalization of the school, an

1. From left to right: Mariano Puig (PDG ‘64), former chairman of Puig; Ivan Lansberg, academic director of Family Enterprise Executive Programs at Kellogg School of Management; and Fabrizio Freda, president and CEO of Estée Lauder Companies, at the celebration on IESE’s New York campus. 2. Romaine Seguin, president of UPS International in the Americas region, and Jordi Canals, dean of IESE, at the event held in Miami.

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vation. Diversification. And a clear roadmap to generational transition. These are the key factors to our success throughout the years,” Drago said. The company’s corporate governance system has been modified in recent years: “The key revolution has been managing the relationship between the family and the company in changing times. Defining the new strategy required long discussions, but I think that our family has shown incredible strength and wisdom with this delicate period of transformation,” he told participants. De Agostini, a publishing, media and finance group, fac- es the challenge of constant change in content delivery: “Innovation in tradition has always been our motto,” he said. “Today the market is changing faster than ever, and anticipating new trends is vital,” the group’s chairman said. This, coupled with diversification of products and 3 markets, has put the company in great shape for the future.

LEADERSHIP IN ASIA Central to De Agostini’s success was strong man- expansion that has taken IESE’s reach both in MBAs and l agement. And for Su-Yen Wong, CEO of the Human executive education to “cities and countries all around the Capital Leadership Institute (HCLI), specifically nurtur- world.” This drive and IESE’s sense of purpose led to the ing Asian business leaders is paramount. HCLI is a semi- establishment of the New York campus, which hosted the governmental organization tasked with building strong event, right in the heart of Manhattan in 2007. Asian leaders to blaze a trail within the region as well as Back over the Atlantic in Milan, Italy, Marco Drago, on the global stage. chairman of De Agostini, made similar observations re- “The economic growth in the coming years is going to garding family businesses at an IESE MBA 50th Anniver- be driven by Asia, so there is a real need to develop a pipe- sary celebration on October 1, presented by Prof. Franz line of Asian leaders to rule effectively,”Wong told alum- Heukamp, associate dean for MBA Programs. “Inno- ni and friends at an IESE MBA 50th anniversary event in

INNOVATION, DIVERSIFICATION AND A CLEAR ROADMAP TO GENERATIONAL 4 TRANSITIONS ARE THE KEY FACTORS TO OUR SUCCESS” Marco Drago, chairman of De Agostini

3. The chairman of De Agostini, Marco Drago, discussed the case of his family business, founded in 1901, at the celebration in Milan. 4. Drago and Prof. Franz Heukamp were the speakers at the event, titled “Leadership for tomorrow’s world: Lessons from family business. The De 5 Agostini case.” 5. Alumni attending the conference.

38 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE Singapore on November 3. Sunny Verghese, co-founder, MBA 50th anniversary celebration in Miami on November group managing director and CEO of the multinational 10. Like Verghese, Seguin zeroed in on the importance of agribusiness Olam International, also shared his experi- motivation. “Learning how to mobilize your people and ences. Prof. Heukamp moderated the event. get what you need to get done under difficult circum- To develop Asian leaders, Wong believes in increasing stances – that’s a great sign of leadership.” the number of perspectives: “It’s about bringing in views Seguin’s remarkable career at UPS began three de- from business and from academia, as well as from policy cades ago driving and unloading trucks in the wee hours makers. This provides a holistic view of what it takes to of the morning. She believes that it is her “powerful sense lead in an Asian environment,” Wong said. of commitment,” the bedrock of a strong education and a willingness to grab opportunities with both hands that MOTIVATION IS THE MOTOR have got her from the loading bay to the corner office. Verghese described Asian business leaders’ “The foundation of my own leadership, and the one l strengths and weaknesses. “Asians are already ex- piece of advice I give to upcoming managers and stu- cellent at execution and very good managers. But they dents is this: never say no to an opportunity. You never need to work on their capacity to inspire and motivate,” know where it will take you.” It is a timeless piece of ad- he told participants at the Singapore event. vice, appropriate for both those pioneering MBA candi- Dean Canals was joined by president of UPS Inter- dates who graduated in 1966, as well as the graduating national in the Americas region, Romaine Seguin, at an class of 2016, half a century later.

THERE IS A REAL NEED TO DEVELOP A PIPELINE OF ASIAN LEADERS TO RULE EFFECTIVELY” Su-Yen Wong, CEO of the Human Capital Leadership Institute

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6. Sunny Verghese, co-founder, group managing director and CEO of the multinational agribusiness Olam International. 7. Su-Yen Wong, CEO of the Human Capital Leadership Institute. 8. From left to right, Sunny Verghese, Prof. Franz Heukamp and Su-Yen Wong at the conference “Developing Asian Global Leaders,” held in Singapore.

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MBA EXPERIENCES: AN IMPACT ON TOP MANAGEMENT

ecoming a leader isn’t just about accumu- positive impact was illustrated by Cristina de Parias lating knowledge; it’s about developing (MBA ’91), head of BBVA Spain and chairwoman of Cata- as a human being. This was one of the key lunya Caixa. Her return to IESE after 24 years, she said, themes developed during a celebratory had reminded her of a valuable lesson. “You have to be event held on the Barcelona campus on open to guidance from every source during your two years November 30 to mark the 50th anniversa- as an MBA. It’s not just about being a straight-A student; ryB of the IESE MBA. The MBA programs director, Franz open yourself up to be a straight-A person.” Heukamp, chaired a panel of distinguished alumni. Personal integrity was a concept also taken up by Cris- The panel members, who are now prominent senior tina Badenes (MBA ’98), partner at private equity fund executives from the worlds of banking, finance, consul- management firm Meridia Capital. “It’s simple but essen- tancy and recruitment, offered personal insights into how tial,” she said, and added that, when recruiting, the most to make the most of the MBA and what it takes to become important thing is to find candidates who have a good set a successful business leader. Introducing them was IESE of values, as specific skills and knowledge can be taught. Dean Jordi Canals, who said: “We are convinced that Antonio González-Adalid (MBA ’75), CEO of invest- through good management we can have a transforma- ment company Cartera Industrial Rea, agreed, and said tional impact on people, companies and society.” This that although he now only recruited at the executive level,

I don’t care if you’re the Emotional intelligence Be curious and smartest person on Earth. and insights from working always ask for You need to be open and have a alongside MBA peers and faculty are feedback.” growth mindset.” more important than functional skills.” Pablo Sagnier (MBA ’90) Partner at Egon Zehnder Alejandro Beltrán (MBA ’98) Kristoff Puelinckx (MBA ’96) International Managing partner at McKinsey Board member and managing director &“ Company Iberia “of Delta Partners “

40 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE The event, titled “Impact of the MBA on top management: some personal experiences,” brought together current MBA students, renowned alumni and faculty.

also driven his career and helped him to grow as a person: “I learned to be humble, to listen, to collaborate with others and to know myself better.” Alejandro Beltrán (MBA ’98), managing partner at McKinsey & Company Iberia agreed. “IESE puts emphasis on people. It’s a journey and it starts here,” he said. “The first step is building foun - dations: problem solving skills, trustworthiness, teamwork. Develop them at IESE and apply them afterwards,” he advised.

THE GROWTH MINDSET Having the potential and desire to keep learning was l described by Beltrán as key to success in business. “I don’t care if you’re the smartest person on Earth,” he said, “You need to be open, to have a ‘growth mindset.’ the selection criteria remained the same: to identify “good We all have unconscious biases and see the world through people who will be behind you in critical situations.” And our own lenses.” while an emphasis on functional skills remains valuable, This point was expanded upon by Sagnier, who said it’s the emotional intelligence and insights gained from that leaders have moved on from an era of simply need- working alongside peers and faculty on the MBA that were ing a ‘kill or be killed’ survival instinct, through an era of deemed “more important” by Kristoff Puelinckx (MBA expertise in sectors and functions, and now on into an ’96), co-founder, board member and managing director of era of strategic vision. The next era, he said, would be the advisory firm Delta Partners. “You’re not just coming one that prioritized growth potential: the ability to adapt to a center of business but a center of human values,” he to change in a dynamic, flexible world. Developing this said. would be rewarding, he said, but not easy. “Know yourself,” he advised, “Be curious, and always ask for feed- SMART BUT NOT HUMBLE ENOUGH? back.” “Most MBAs are smart, but not everyone is humble,” Badenes was keen to point to the value of the case l said De Parias. “In fast international markets you method in developing curiosity and analytical thinking need to change strategies quickly. You may need to lead capabilities. “IESE taught me to think critically,” she or follow, depending on the moment. You need values, said. passion and flexibility – the ability to compromise and IESE MBAs, said Puelinckx, have already opted to play work in teams.” IESE had helped her prepare for the rein the “Champions League” by choosing a top-ranked ality of managing international teams, she said. “Team- business school. Now, he said, it’s a question of setting work was the main driver of my growth. What you learn longer-term objectives. “Go for your goals and keep going is humility, flexibility and respect for the full scope of for them without calculating or measuring your efforts,” diversity.” he said. “Making things happen is good. But making a dif- Pablo Sagnier (MBA ’90), partner at executive search ference is better. Ask yourself every week and every year: firm Egon Zehnder International, said that teamwork had If I weren’t here, would it make a difference?”

Recruitment criteria are What you learn through IESE taught me to think to identify good people teamwork is humility, critically.” who will be behind you in critical flexibility and respect for the full Cristina Badenes (MBA ’98) Partner at Meridia Capital situations.” scope of diversity.” Antonio González-Adalid (MBA ’75) Cristina de Parias (MBA ’91) “CEO of Cartera Industrial Rea “Head of BBVA Spain “

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MORE THAN 700 ALUMNI SIGN UP FOR NEW ONLINE SERIES IESE Alumni Digital Series: Making Progress in Digitalization

IESE has launched a new for - We can also watch the videos when- l mat of exclusive sessions for ever and wherever it suits us. All in alumni. The Alumni Digital Series all, I think it’s very positive to be boasts an approach that combines able to learn about the latest trends on-campus classes with online with IESE because the world keeps sessions on a platform specially changing all the time.” designed to guarantee the learning experience, and is adapted to the MUCH MORE THAN SESSIONS student’s lifestyle with the aim of For each course, alumni receive reaching more students as effec- l assignments in the form of mis- tively as possible. sions to ensure they apply the course The Alumni Digital Series ad- content directly in their company. dresses pertinent business topics To encourage its use, the platform and includes three sessions taught also has an area where participants by different IESE professors. The can monitor their progress, as well sessions are held in different cities as a leaderboard that showcases the around the world, so alumni can at- participants who have obtained the tend in person or view the session most points by completing missions on the online platform. A total of 782 participants registered for and expressing their opinions on the Javier Muñoz, director of the the first course and 20% of them are active discussion panels. users. Alumni Association, explained, In addition, the platform contains “Each session is produced to be a selection of recommended reading viewed and streamed online. The material and a news channel with content of these sessions also in- provides a “fantastic opportunity” headlines from the international cludes discussion forums with per- for online learning. He went on to press on topics related to the subject sonal learning goals to ensure alum- say, “The platform has some very matter of the course. ni participation and motivation.” interesting features, such as the dis- Upcoming sessions in the Alum- The first blended course was held cussion panels, where participants ni Digital Series will be on corporate from October 29 to December 3, can interact with other participants. sustainability and digital marketing. 2015 on the topic of the digital transformation occurring in companies all over the world. The course, “Em- bracing a Digital Mindset,” was at- BLENDED FOCUSED PROGRAMS BEGIN tended by 782 participants and the l IESE’s portfolio of Focused Programs also boasts some new features, sessions were taught by Professors such as the first blended program, which will be held in July 2016. This Javier Zamora, Sandra Sieber and format will be used for other Focused Programs and will kick off with Evgeny Káganer. “Traducir la creatividad y la innovacion a resultados” (“Turn creativity and Timothy Go (MBA ’12), an as- innovation into results”), a program taught by Professor Joaquim Vilà. sistant vice-president at Marketing The program will consist of three phases combining on-campus and online Convergence, participated in the sessions. More information is available at: sessions from the Philippines. In his www.iese.edu/innovacion opinion, the Alumni Digital Series

42 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE RESEARCH TO CONCENTRATE ON HOW TO REDUCE ENERGY POVERTY IN AFRICA New Chair on Energy and Social Development, in Partnership with Fuel Freedom Foundation

Fighting energy poverty in Afri- the incidence of pollution-induced The initiative is another step l ca is one goal of the New Chair diseases,” affirms Prof.Rahnema . forward in IESE’s involvement in on Energy and Social Development, The chair will also address the po- Africa. The chair will collaborate with created by IESE in conjunction with tential use of natural gas as a fertilizer IESE associate Strathmore Universi- the Fuel Freedom Foundation. This and the development ty to collect data for not-for-profit organization encou- of agro-industry. In case studies on local rages the use of alternatives to fossil addition, the pro- The chair will resource develop- fuels. gram will explore “facilitate cross- ment. The results Chair-holder Ahmad Rahnema, ways to improve elec- learning among will be shared with IESE deputy associated dean for fa- tricity production. It influential leaders culty and director of the financial will seek cheaper and governments and in energy manage- management department, explains cleaner alternatives firms in emerging ment. that the new chair was conceived as to diesel generators, countries” The chair will also a platform for research on energy through the use of expand business op- aimed at reducing energy poverty in renewable energy. portunities, boos- developing countries. The new chair will also foster “the ting job creation and socioeconomic The chair’s first project, “em- dissemination of knowledge and ex- development. According to Professor POWERing Africa,” will study ways periences to facilitate cross-learning Rahnema, this component of the for African countries to use locally among markets, governments and program is key for accomplishing produced fuels that are cleaner than firms in emerging countries,” said its main objective: reducing energy gasoline, such as ethanol, methanol Prof. Rahnema. poverty. and butanol. Shifting to these kinds of fuels would lower product prices in Africa, now elevated by the cost of fuel transport. The project will also examine logistics, in order to mitiga- te “the adverse effects of poor infrastructure, weak regulation, and weak capital flows,” said Prof.Rahnema . Another program focus is domes- tic energy consumption. Some 600 million Africans lack access to electricity. Most of them cook and heat their homes with fire and rudimen- tary wood stoves, practices that carry the risk of premature death and pollution. One solution would be the production of alternative fuels that would substitute wood and manure. “The introduction of non-polluting alternatives such as methanol, solar- powered stoves and similar innovations could act as a means of reducing

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30TH IESE AUTO INDUSTRY MEETING CRASH-PROOF, EMISSION-FREE AND CONNECTED CARS

’m sure cars won’t be flying in 30 years’ The advances in autonomous time, but they’ll be doing pretty much everything else.” With this prediction, cars, the development of José L. López-Schümmer, chairman of ANFAC and CEO of Mercedes-Benz green technologies and the Spain, opened the first session at the 30th IESE“ AutomotiveI Industry Meeting, held in Barcelona on existence of new competitors November 4 and 5. It was 1985 when founding presidents, Prof. Pedro Nue- will affect the development of no and Joan Llorens, member of the board of STA, and then president of SEAT, decided to organize what would the automotive industry. become one of the industry’s leading conferences. The 30th edition was an opportunity to reflect on the huge changes that the industry has seen in recent years.

44 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE 1 2 3 4 5 6

1. José L. López-Schümmer, chairman of ANFAC and CEO of Mercedes- 4. Peter K. Welch, president of the US National Automobile Dealers Benz Spain. Association (NADA). 2. James D. Farley, chairman and CEO of Ford in Europe. 5. Prof. Marc Sachon. 3. Jacques Pieraerts, vice-president of communication, external and 6. Frank Torres, managing director of Nissan Motor Ibérica. environmental affairs of Toyota Motor Europe.

Organized by KPMG and chaired by Prof. Marc Sachon, and doing away with polluting emissions. According to it brought together some of the sector’s leading players to López-Schummer, autonomous cars hold the key to anticipate how the industry might evolve in the coming ending fatal road accidents: “We will see huge advances decades. in autonomous cars. The technology is practically ready, although there’s still some way to go in terms of legal and THE CAR OF THE FUTURE ethical aspects.” For instance: who would be held liable in Experts envision a future in which cars serve a multi- the event of a collision, the manufacturer of the autono- l tude of functions. They’ll be crash-proof, thanks to au- mous car or the driver? tonomous driving technology, and emission-free, thanks Nevertheless, the companies are convinced that auton- to alternative drive systems (electricity and hydrogen fuel omous cars are the future and they are investing heavily in cells). They’ll also be connected, thanks to the prolifera- them. “Billions and billions of dollars are being pumped tion of devices and networks and the Internet of Things. into these technologies,” said Prof. Nueno. He cited the With Tesla, Google and Apple already making waves in example of Volvo, which is not only opting for this tech- the market, new competitors will emerge over the coming nology, but also has announced it will accept liability for years. “Apple’s entry into the market presents a threat to all accidents involving its autonomous cars. It maintains the automotive industry,” warned Prof. Sachon. Despite its commitment to make deaths in its vehicles a thing of its lack of factories, Apple is preparing to enter the market the past by 2020. Nissan’s goals are similar: “zero acci- with a car that is “small, autonomous, electric, made for dents, zero emissions,” explained Frank Torres, man- large cities and 100 percent adapted to the passenger’s iP- aging director of Nissan Motor Ibérica, emphasizing his hone,” explained Prof. Sachon. company’s commitment to autonomous driving and the There will also be new practices, such as car-sharing ini- manufacture of electric cars. tiatives, which will come about in response to the private mobility needs of a world population largely concentrated WITHOUT LOSING “THE MAGIC” in megacities. There will be more to the cars of the future than “Every business model is ripe for disruption,” said Lu- l just technology though. James D. Farley, Ford’s kas Neckermann, managing director of Neckermann chairman and CEO in Europe, stressed the importance Strategic Advisors. For some time now the industry’s main of the emotional factor, of regaining and passing on that companies have been preparing for the model based on ve- “magic” feeling of freedom and pleasure to the millen- hicle manufacturing and sales to evolve towards a greater nial generation, the same feeling that drove their par - focus on smart mobility solutions. ents to buy a car as soon as they were able. “Magic” that Apple has created with the iPhone, with technological ZERO ACCIDENTS, ZERO EMISSIONS excellence a factor, but also brand differentiation: “this In terms of technology, the two priorities for manu- is where the battle for the future of commercial vehicles l facturers are: putting an end to fatal road accidents will be won or lost,” he concluded.

Alumni Magazine IESE JANUARY-MARCH 2016 / No. 140 45 C R O S OS R OI A D S 22ND HEALTH CARE INDUSTRY MEETING EVIDENCE FOR A HEALTHIER SYSTEM

he same medical and technological ad- Building a more efficient and vances that prolong life expectancy also generate a considerable amount of infor- sustainable health system mation. How can all of this research and big data contribute to improved health requires a change of strategy. care? Will it help optimize a health sys- temT serving a population that is increasingly demanding Better management of and living longer? The use of systems supporting scientific evidence-based decision-making was among the information, coupled with trends discussed at the 22nd Health Care Industry Meet- ing, held on October 27 at IESE Barcelona. Chaired by scientific advances, makes it Prof. Núria Mas and co-organized by Cándido Pérez, partner of KPMG Spain, the event featured the participa- possible to add more value tion of its founding president, Pedro Nueno, along with noted speakers. at a lower cost. PUTTING OUTCOMES IN THE CENTER OF THE SYSTEM Prof. Mas said that the health care debate often re- l volves around issues such as the optimum number

46 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE of beds per patient, or days of hospitalization – which are Víctor Grifols, president and CEO of Grifols, noted that important, but cannot be the ultimate goal. She believes the health care industries are increasingly efficient and that one key to improving health care is “to focus the “capable of solving problems that used to be extremely analysis on the impact on the health of the population costly.” and use evidence to learn what works and why.” According to Belen Garijo, member of the executive Jaime Vives (PADE ’08), president of Roche Diagnos- board and CEO of Merck’s Healthcare Division, one of the tics in Spain, said that thinking about the health-care sys- most promising areas is precision medicine: “It’s a huge tem in terms of the evidence and results is a “relatively opportunity for the future to adapt and learn more about new concept.” He added that this “constitutes a funda - the areas in which we are going to produce more value for mental change in the way health care is dispensed.” the same money,” she said. The benefits of this approach were highlighted by An- drew Dillon, CEO of the National Institute for Health and THE TIP OF THE ICEBERG WITH BIG DATA Care Excellence (NICE) in the United Kingdom, created Technology is another major driver of innovation, to improve the British health system through its guidance. l with big data taking center stage. Haig A. Peter, ex- Dillon said: “No doctor can stay up to date on all of the in- ecutive consultant and cognitive computing ambassador formation available these days. An evidence-based system at IBM Research Zurich, put numbers to what he regards helps them create a process in which the information is as “a real tsunami” of information, whose potential is still interpreted and expressed concisely.” untapped. Dillon advocates this new concept because “it yields He said that each person during their lifetime will gen- a better health-care system and a better outcome for pa- erate an amount of data on their health history that is tients.” He says, “Instead of talking about the price, now equivalent to the content of 300 million textbooks. This we can talk about the value added.” volume of information will be useful for extracting data David Ikkersheim, partner of KPMG Healthcare Neth- that should help improve decision-making, he added. erlands, agreed: “Paying for value is basically tying the pay- In this sense, Luis Campos, GM of GE Healthcare for ment to the outcomes achieved, so if you do very well on Spain and Portugal, said that currently only 3 percent of the outcomes that matter to the patient, you got a higher the available information is being employed in a useful reward in terms of market share, or a better price,” he said. way. He wondered about the possible improvements that This should contribute to greater sustainability in could be made if 10 percent or 25 percent were used. health systems despite the financial difficulties seen in Despite the magnitude of the challenges posed by the many countries. The speakers all echoed the sentiment massive amount of information, Peter concluded: “Wel- that, despite all the challenges, the future is promising. come to the cognitive age. This is just the beginning of There are numerous reasons for this positive outlook. something exciting, so here we go.”

1. Lluís Donoso, director of the Diagnostic Imaging Center at the Hospital Clínic in Barcelona; Prof. Núria Mas; Adolfo Fernández- Valmayor, managing director of organization, processes, ICT & digital at Quirónsalud; Margarita López Acosta, manager for Sanofi Iberia; and Jaime Vives, president of Roche Diagnostics in Spain. 2. Víctor Grifols, president and CEO of Grifols. 2 3 4 3. David Ikkersheim, partner at KPMG Healthcare Netherlands. 4. Andrew Dillon, CEO of the National Institute for Health and Care Excellence (NICE). 5. Haig A. Peter, executive consultant and cognitive computing ambassador at IBM Research in Zurich. 6. Cándido Pérez Serrano, partner of KPMG Spain and co-organizer of the Meeting. 7. Belén Garijo, member of the executive board and CEO of Merck’s Healthcare Division.

5 6 7

Alumni Magazine IESE JANUARY-MARCH 2016 / No. 140 47 C R O S OS R OI A D S

From Words to Facts: Thirty Social Projects Around the World Since its launch in March 2015, l the Social Entrepreneurship Network, led by Profs. Antonino Vaccaro and Joan Fontrodona, has collaborated on more than 30 projects with social enterprises and NGOs from Europe, Africa, Asia and Latin America. More than 100 participants working for companies such as Akzo Nobel, Deloitte, Deutsche Bank, Morgan Stanley, Munich Re, Unilever, Puig and Primark, among others, took part in the program. The platform connects IESE students, alumni, professors and other members of staff with institutions FAST FORWARD PROGRAM and entrepreneurs in need of support for their social initiatives. “We must say, we’re impressed by the en- thusiasm of the participants,” said Global Insights for Prof. Vaccaro. One of the volunteers, Isabel Vil- Positive Leadership lamor (MBA ’16), went to Colombia during her time off to work with the Belgian NGO ACTEC on a project that provides support to local entre- “Grow with principles not rules,” and not for everybody,” said Prof. preneurs. “It was a great opportuni- lsaid Prof. Frederic Sabrià in Alfredo Pastor. He evaluated the ef- ty to apply what I’ve learned in the a session of the Fast Forward pro- fects of globalization to demonstrate MBA and contribute to a budding gram analyzing how organizations the kinds of jobs being lost and those project like this with so much im- can thrive through positive leader- most likely to be around 50 or 60 pact. I saw first-hand how this proj- ship. Crafting strategy in a complex years from now. The focus on open ect is helping to improve education world and man- collaboration was and the microenterprise landscape aging innovation clear throughout in Medellín,” said Villamor. were the themes of “Grow with the program. “It’s the other parallel principles, not not just about what LOOKING INTO THE FUTURE tracks included in I say, but what you According to Prof. Vaccaro, the the program, which rules” can share with each l objectives are: “First, grow with gave 105 partici- other,” Prof. Prats the support of alumni from all over pants from around emphasized. the world. Second, promote a cul- the world the opportunity to explore The program included more than ture of responsibility and activism global trends affecting business and 50 sessions offered by 35 speakers, in the economy. Third, prepare the share their insights. including Sheena Iyengar, profes- components to inspire the tradition- In most innovative companies, sor at Columbia Business School; al economy to become truly socially “boundaries are being clearly dis- Alex Cruz, CEO of Vueling Airlines; committed,” he says. mantled,” said Prof. Mª Julia Prats, and Igal Aisenberg, authority on in- who discussed the barriers to inno- novation in agriculture and former You can participate in the Social vation and the strategies to over- CEO of Netafim. The Fast Forward Entrepreneurship Network by registering at: come them. “Nowadays, progress is program ran from September 28 to https://socialinitiative.iese.edu creating jobs, but not many of them October 2 on the Barcelona campus.

48 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE FINAVES STORIES: LAUNCHED IN 2008, WORLDSENSING NOW HAS CUSTOMERS IN MORE THAN 30 COUNTRIES A Sensor That Connects the World

When Ignasi Vilajosana (SEP ’16) founded Worldsensing with his brother Xavier, along with Jordi Llosa (PDD ’15), the project only made sense from a technological point of view. Seven years later and after receiving the support of Finaves, the company operates globally and has an annual turnover Ignasi Vilajosana, co-founder and CEO of Worldsensing. of four million euros.

For any 21st-century entrepre- different from installing it in a city. something that was consolidated in l neur, inventing a technology that And offering the network in Russia is 2013 when IESE’s Finaves seed capi- is disruptive and pioneering and has completely different from offering it tal fund provided a second round of multiple applications in the Internet in the UAE,” added Vilajosana. capital to the company. “The support of Things sounds like a dream come “From this perspective, we have of Finaves was not only key at an eco- true, but reaching this goal without developed two business areas: cit- nomic level – it also brought us pres- adequate management education ies and industry. In the first area, we tige and an institutional vision.” and a clear market position presents have focused on parking lots that use The company has gone from five a major challenge. Fastprk, a technology that detects people to 42 in a short time, with This is the situation in which the free parking spots. We also offer a offices in Barcelona and London. three founders of Worldsensing network of antennas on highways “We have grown in sales and market found themselves in 2008 when they and in cities that scan cell phones in penetration. To manage this deve- devised a long-range, low-consump- order to obtain macro mobility data. lopment, you need support and the tion communication system. As CEO In industry, we apply our technology best education in business mana- Ignasi Vilajosana explains, “A cell to maintain large infrastructures and gement. My time at IESE has been phone can connect to a wi-fi network in seismic exploration for petroleum indispensable, and my initial expe- at 20 meters and work for eight hours. and gas deposits,” said Vilajosana. rience with the Learning to Grow Our wi-fi network has a 15-kilometer program helped me use business range and a battery charge that lasts CONTROLLED GROWTH analysis methods to carry out a plan for eight years. Obviously we can’t For its first two years, World- for the company. Now I’m enrolled in send videos, but we can send data l sensing was more a university the SEP program in New York, and I from sensors in real time.” project than a business. But in 2010 find the approach to be very effective. “We quickly realized that it was es- winning the IBM SmartCamp for en- The focus on upper management, the sential to have specific knowledge for trepreneurs brought the company its experience of other participants and each sector. That’s because, even if first round of funding. This develop- the international perspective will be the technology is the same, installing ment propelled the company toward of great value to a company like ours,” the network in a mine is completely progressive professionalization, says Vilajosana.

Alumni Magazine IESE JANUARY-MARCH 2016 / No. 140 49 C R O S OS R OI A D S

MUNICH CAMPUS HOSTS SESSION WITH EXECUTIVES Critical Mass in Female Employment Drives Bottom Line

Companies can achieve a great- l er diversity of views by adopting the inclusive approach of the three “F”s: female participation, family perspective and flexible work ar- rangements. This was the recom- mendation given by Prof. Nuria Chinchilla at the meeting “Women in Leadership: Closing the Gap,” organized by the MBA program on Oc- tober 16 at IESE Munich. Alexandra Borchardt (PMD ’13), managing editor of the German newspaper Süddeutsche Zeitung, moderated the session. Three other alumnae Smriti Sinha (Visa Europe); Sahil Tesfu (McKinsey); Lucía Camarena (Telefónica Germany); Prof. Nuria Chinchilla and Alexandra Borchardt (Süddeutsche Zeitung). also participated: Sahil Tesfu (MBA ’13), engagement manager at McK- insey; Lucía Camarena (MBA ’94), B2B digital propositions product of the direct link between greater jobs,” said Camarena. Tesfu added and go-to-market management at flexibility and productivity. This is that, “Working with a sponsor within Telefónica Germany; and Smriti something that both men and wom- your organization can help women Sinha, head of CEO office at Visa -Eu en need to work on – and that affects advance towards leadership.” rope (Exchange MBA ’10). them both.” Education is also a key component Prof. Chinchilla stressed that: When discussing the challeng- of career development. “An MBA can “When you have a critical mass of es faced by women in the business be an excellent tool in developing women, you start to see real improve- world, the panelists cited the “glass leaders, both male and female,” said ments in the bottom line. Further- ceiling.” “Sometimes it’s just easier Prof. Franz Heukamp, director of more, businesses need to be aware to move up the ladder by changing the MBA program.

New Fellowship COLLABORATION AGREEMENT BETWEEN ICWF AND MENSA for Female Promoting Intelligence Executives in the Organization l IESE and Plan W magazine have awarded the first fellowship for IESE’s International Center the most out of intelligence in orga- female executives attending the PMD Munich-Barcelona. This new initia- l for Work and Family (ICWF), nizations to benefit their employees tive from IESE and the magazine of directed by Prof. Nuria Chinchilla, and society as a whole. Having the the newspaper Süddeutsche Zeitung has signed a collaboration agree- capability to manage enterprise in- covers tuition and is aimed at women ment with Mensa, a society for telligence can become a competitive with over 10 years of professional people with high IQs. The aim is to advantage, as it enables an under- experience whose work has a positive develop practices and models of or- standing of complex environments impact on society. ganization and management to get and decision-making.

50 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE In the current www.ieseinsight.com/review Walk the Talk: Managing With IntegrityPUBLICIDAD 51

The Keys to a Positive Business Culture Make Way for the Chief Integrity Oﬃ cer Navigating the Realities of Emerging Markets

Jaime Caruana, Plus... General Manager, • Taking ideas from the edge Bank for International and bringing them into Settlements your core • The ups and downs of “It would be managing hierarchies devastating for • Michael Kors: Time for the global economy a strategic rethink? • 6 keys to make waves if countries failed with innovation to work together.”

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Avance Contenidos 27 Alumni_ENG.indd 1 9/12/15 17:14 C R O S OS R OI A D S

GLOBAL HR THINK TANK: SHAPING THE FUTURE OF TALENT MANAGEMENT Executive Learning Next Up for Disruption

Just as technology is radically lchanging our behaviors outside the workplace, there is growing awareness that digitalization can bring a paradigm shift to how business leaders learn. Prof. Evgeny Káganer and Giuseppe Auricchio, director of IESE’s Learning Innova- tion Unit, talked about how technology is changing the way executives gain knowledge at the third annual Global HR Think Tank, held in Barcelona on October 1 and 2. They advised HR practitioners to More than 120 HR executives took part in the HR Global Think Tank. implement “omni-learning,” a holistic approach linking everywhere that “teachable moments” occur. The re- flection resonated with participants. information with 128 senior HR ex- of ideas with their peers. “You learn “Something that I was seriously im- ecutives via sessions on other key a lot from other people, what they pressed by was this idea that you talent management issues, such as are doing in their organizations,” can’t avoid learning,” commented organizational culture, the attributes said Caroline Mac Sweeney, EMEA Wolfgang Hallama, senior consul- of today’s leaders, the implications of manager for learning and develop- tant at Munich Re. “What I take home employees’ subjective age, and more. ment at Crown Europe. is to implement more learning circles It’s not just faculty providing fresh and learning networks,” he said. Fif- insights, however: participants also MORE INFORMATION: www.iese.edu/global-hr-think-tank teen professors and experts shared benefit from the cross-pollination

COACHING LEADERSHIP FORUM Coaching: Identify Your Purpose

“Vision-based coaching gives way superhero. Instead, executives should l to vision-based leadership,” ac- embrace fallibility and build self- cording to Carol Kauffman, Harvard knowledge as tools to leverage per- professor and founder of the Institute sonal strengths, she said at the IOC’s of Coaching (IOC). “It’s all about be- Leadership Forum. ing aware of your personal values and The event landed in Europe for the those of the organization,” she said. first time on October 12-13 thanks to Prof. Alberto Ribera, academic the collaboration between IESE and director of IESE’s Coaching Unit con- the Harvard-affiliated IOC. The Fo- curred: “Stick to your values and your rum facilitated a rich dialogue among purpose. Without values you lose di- 32 executive coaches from 12 different “‘Leaders as superheroes’ is no longer rection.” Prof. Kauffman debunked countries and 10 CEOs and executive relevant,” said Prof. Kauffman. the myth of the leader as omnipotent VPs of human resources.

52 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE “The time is right to invest in

ly m n China” Me s o mber China is still an excellent market l for foreign investors, in spite of the country’s seeming financial difficulties, according to Professor Pe- Evgeny Káganer: “Companies need to start thinking about how to add value for their customers.” dro Nueno. In an October 6 session of the Alumni Learning Program at IESE’s Madrid campus, Nueno ex- IESE’S FIRST FOCUSED PROGRAM IN ASIA plained his hypothesis that plunges in the stock market, the yuan, imports and the Chinese GDP were results of Demystifying policy decisions designed to improve quality of life for the population and prevent political unrest. “It’s better the Digital World for the GDP to grow at 6 percent, well distributed through the entire population, rather than at 7.5 percent con- “Today, everyone across all sec- IESE’s first in Asia – took place on Oc- centrated among the rich. This is the l tors, from media or luxury goods, tober 27 and 28 and brought together path to employment, consumption wants to talk about it. Yet there is still 15 executives, who discussed the tools and social stability,” he argued. a lot of confusion as to what it actual- necessary to take advantage of the op- ly is, and how to make sense of it. In portunities that the digital revolution Asia, digital is different from in oth- offers to business. er parts of the world. And there are a Ilona Simpson, group IT head of lot of exciting things happening here Aston Martin Lagonda in London, which we can learn from,” concluded explained, “Digital is a phenomenon Professor Evgeny Káganer. He joined that over the years has become more Professor Paddy Miller to present the complex, and the veil of mystery program “Digital Mindset: How to In- around it has become opaque. The novate Your Business for the Future” course was a very intense experience Professor Pedro Nueno at the session. in Singapore. This Focused Program – but helped to demystify it.”

concept pioneered by professors from the University of Michigan Learning From Ross School of Business. They will join together with IESE professors Positive to teach a new Focused Program, “Becoming a Positive Leader: Ac- Leadership celerating Individual and Organi- zational Change.” Co-organized by Results improve when leaders the two schools, the program will l stop focusing on weakness- take place April 25-28, 2016 at IESE’s es and shortcomings in order to Barcelona campus. New Focused Program brought jointly by adopt a positive approach based IESE and the University of Michigan Ross on strengths. This is one of the key MORE INFORMATION: School of Business. www.iese.edu/bpl concepts of positive leadership, a

Alumni Magazine IESE JANUARY-MARCH 2016 / No. 140 53 www.facebook.com/alumni.IESE www.twitter.com/iesealumni C R O S OS R OI A D S AGENDA Alumni Governing Board BARCELONA & MADRID, FEBRUARY 8, 2016 The class presidents and vice-presidents, as well as the presidents of the regional chapters, will gather at the meeting of the Alumni Association’s Governing Board to discuss the Alumni Reunions Association’s projects for the future. BARCELONA MADRID The annual report of the Association will also be presented at the meeting, Five-yearly MBA, EMBA & MBA, April 19, 2016 GEMBA, May 28, 2016 which will conclude with the awar- ding of Research Excellence Awards to IESE professors.

Industry Meetings 13TH ENERGY INDUSTRY MEETING 16TH FASHION & LUXURY GOODS INDUSTRY Madrid, February 10, 2016 MEETING 2ND IESE-IPADE FOOD & BEVERAGE Barcelona, March 15, 2016 MEETING 6TH INSURANCE INDUSTRY MEETING Mexico City, February 18, 2016 Madrid, April 7, 2016 2ND REAL ESTATE INDUSTRY MEETING 2ND CHIEF FINANCIAL OFFICERS MEETING Madrid, February 25, 2016 Madrid, April 28, 2016

FOCUSED PROGRAMS International Alumni International Real Estate Barcelona, March 1-3, 2016 Building and Leading High- Learning Program Performance Teams Barcelona, March 15-17, 2016 MUNICH, FEBRUARY 2 MUNICH, Excel in Leading Your Sales Team Session with Prof. Christoph Zott APRIL 5 Barcelona, April 5-7, 2016 Session MILAN, FEBRUARY 16 with Prof. Stefan Develop Your Communication Session with Prof. Núria Mas Stremersch Skills: It’s How You Tell Them Barcelona, April 12-14, 2016 DÜSSELDORF, FEBRUARY 19 ZURICH, APRIL 5 Becoming a Positive Leader: Session with Prof. Pedro Videla Session with Prof. Anneloes Raes Accelerating Individual & Organizational Change NEW VIENNA, FEBRUARY 26 BRUSSELS, APRIL 16 Barcelona, April 25-28, 2016 Session with Prof. Sebastian Reiche Session with Prof. Bruno Cassiman

Program dates are subject to change. For the latest information see: www.iese.edu/agenda

54 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE CAREER ADVISORS GAIN A NEW PERSPECTIVE TO YOUR CAREER DECISIONS.

Marta Gil-Casares

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Our Career Advisors across the globe will help you in your professional career.

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Alumni P E O P L E ALUMNI Eusebio Díaz-Morera (MBA ’69)

“Investing and having patience are the same thing. Everything else is speculation”

Eusebio Díaz-Morera holds a bachelor’s usebio Díaz-Morera is on the board of directors of companies such as Cementos degree in economics and he is a graduate Molins and Miquel y Costas & Miquel. He of the MBA Class of 1969. After graduating is married and has three daughters, one of from IESE’s program, he began working at a whom also holds an MBA from IESE. In this interview, he shares his views on invest- wealth management firm. He was chairman mentE and the causes of the financial crisis. of the Caja de Barcelona, Banca Catalana and The website of EDM, the company over which you pre- the Cadí Tunnel. He was also vice-president side, states that the company’s investment management of the Círculo de Economía. Since 1989, “is oriented toward the creation of value over the long term. We look beyond fashions and short-term market he has been chairman of EDM, a leading trends in order to concentrate on analyzing companies.” company in investment management. Could you expand on this idea? At EDM we concentrate on private equity on quoted shares. Most of the people that started this business project came from corporate finance and we believe that it’s

56 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE Alumni Magazine IESE JANUARY-MARCH 2016 / No. 140 57 P E O P L E ALUMNI important to create value – but that’s an ambiguous term. had been approved after the 1929 Great Depression, and it From our point of view, value is the continued develop- prohibited financial entities from being investment banks ment of the company, not the performance of its shares. and commercial banks at the same time. The 1986 decision We spend as much time as we can analyzing companies was the first liberalizing step, which ended with the repeal themselves, rather than their short-term movement in of the Glass-Steagall Act in 1999. When it became legal to the market, which is unpredictable. We shape an invest- pursue both activities simultaneously, the stage was set ment portfolio by looking at the traits of the companies for the acceleration of investment banking, which is more and not on the opinions of markets or the expectations of profitable than commercial banking, but also riskier. Now central banks. A company’s short-term market value can the Volker Rule is trying, with some difficulty, to return to differ greatly from its intrinsic value, and this provides op- the previous situation. portunities for profit. But in the long term, the market’s I think this was one of the structural causes of the finan- opinion of a company ends up matching the profits that cial crisis. It’s obvious that a traditional commercial bank the company makes. cannot obtain a high double-digit return on its own funds. Of course, with our approach to investing, time is im- In the future, return rates will be more modest. portant: the investor has to be patient. Investing and hav- Another important point is that the authorities have ing patience are one and the same thing. Everything else concentrated more on establishing rules than on ensur- is speculation. ing compliance. I think that much of the current regulation that attempts to remedy the crisis will be ineffective Does it seem right to you that investors demand better if there isn’t close supervision. results, quarter after quarter, from the executives of If the crisis was the result of a slow process of accumu- publicly traded companies? lating problems, the solution also will be slow. Now the Our company is designed to work as a team, both at the goal is to make banks more solvent, if less profitable. In commercial level and the investment level. We reject the any case, we are headed toward single-digit profitability notion of “star” executives or managers that’s so popular in the financial sector. in the media. We construct portfolios through consensus. At the same time, the best companies are those whose You are also a board member in several industrial com- leaders base their decisions on long-term thinking. I don’t panies. In the world of management, ideas about lead- trust managers that make decisions based on the short ership change over time. In your opinion, leaving aside term, because they often do so at the expense of the long trends, what are the basic traits of a good manager? term. I think that everything in life requires a lot of contin- I hate trends. I like industry so much because it is less in- uous effort. Few people have a magic wand that lets them fluenced by trends. Today there is too much emphasis on get what they want right away. models and strategies and not enough on the daily implementation of company operations. I don’t know a single You have spent 45 years working in the financial sec- company with excellent operations execution that has tor. Do you think that the crisis that began in 2008 had made strategic errors. On the other hand, I know managers a structural cause? Has it been resolved? who are very focused on strategy and pay little attention to It’s a very complex issue, with deep causes. Some are linked operations and who have made serious mistakes. to the financial sector and others to the way we conceive of the economy overall. What are the biggest mistakes that today’s managers The financial sector has grown more than the real make? How can they be corrected, or, even better, pre- economy. The origin is the fact that some chose to make vented? up for slow growth in productivity by going into debt. As Today I see and hear quite a few managers, especial- a consequence, between 1986 and 2007, the weight of the ly young ones, who talk too much about money and not financial sector doubled in the S&P 500, which is the most enough about passion and the long-term commitment to a representative of the New York Stock Exchange. Let’s re- career. Perhaps it’s a sign of the times, or maybe it’s related member that in 1986 the U.S. Federal Reserve Bank rein- to the idea that in order to build a résumé, a manager has to terpreted a section of the Glass-Steagall Act. This measure move through a lot of positions. In my case, life shaped my

WE ARE HEADED TOWARD 7SINGLE-DIGIT PROFITABILITY IN THE FINANCIAL SECTOR

58 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE THE BEST 7COMPANIES ARE THOSE WHOSE LEADERS BASE THEIR DECISIONS ON LONG-TERM THINKING

résumé, not the other way round. You have to let life carry What motivated you to dedicate time and energy to you, opening and closing doors. Of course, living means that task? having projects, but normally a project takes time. The school’s current dean, Jordi Canals, and then president of the Association, Rafael Villaseca, who had worked You were part of the fourth graduating class of IESE’s with me at the Cadí Tunnel, encouraged me to participate. MBA, in 1969. What has been the most important out- I didn’t hesitate. It was the best thing I could have done: come of your IESE experience? dedicate time to the institution where I spent two won- Two ideas have had a lasting effect on me. First, profes- derful years of my life. sional work is a non-detachable part of personal fulfillment: feeling useful, satisfied, and excited makes life Your daughter María also attended the MBA program meaningful. and graduated in 2006. Did your experience at the Second, management is important in any area of life: school influence her? business, politics, associations or sports. By management, After receiving her degree in economics, María worked I mean defining certain objectives and achieving them ef- for several years at Goldman Sachs in London. At a cer- ficiently by making good use of limited resources. It’s true tain point, she wanted to take a new career path and she that in some activities you also have to keep other compo- asked my advice. I recommended that she do an MBA. nents in mind. For example, in politics charisma and inspi- Since IESE’s MBA is the one that I know best and for me ration are also important. But without good management the best, I suggested that she enroll here. Of course the the results will be disappointing. final decision was hers.

What would be your advice to recent MBA graduates? What is the best professional advice that you have ever For starters, they should follow their instincts rather than received? following the latest trends. And also, they should have the It works outside the professional realm, too. “Having oth- humility to be aware that it’s one thing to say what should ers accept that you are right is as important as being right. be done and another to carry it out successfully. Getting there takes a lot of work, and you won’t always be successful.” The person who offered me this advice was For six years (1999-2005) you were a member of Josep Tarradellas, during his presidency of the General- the Governing Board of the IESE Alumni Association. itat de Catalunya, when he returned from exile.

Alumni Magazine IESE JANUARY-MARCH 2016 / No. 140 59 P E O P L E

Jordi Mercader Miró and Jordi Mercader Barata at the offices of Miquel y Costas in Barcelona.

MERCADER FAMILY: A SHARED TOP MANAGEMENT EDUCATION “AS A IESE STUDENT, THEY MADE YOU FEEL SPECIAL”

The pursuit of excellence, man- expand our knowledge and provide father graduated, the school stood l agement based on knowledge considerable differential value. That out for its international diversity. To of the highest level, social commit- assured us excellent career paths and take advantage of that, I went for an ment… these concepts exemplify how a variety of challenges in both the pri- exchange program in China. That was the Mercader family views the role of vate and public sectors.” one of the best decisions of my life, an executive. One such challenge came in 1990, both academically and personally,” Jordi Mercader Miró (MBA ’69), when the paper manufacturer Miquel he says. After working for BBVA in Ma- chairman of Miquel y Costas, has a y Costas was going through tough drid, Mercader Barata joined Miquel Ph.D. in industrial engineering. He times and called on Mercader Miró y Costas, where he is now board mem- has served as chairman and managing to preside over the company and turn ber and managing director. director of several large firms, includ- things around. He did just that and the Despite the generational distance ing: INPACSA, the Spanish shipping company flourished. So much so that between them, father and son share company Bazán, Instituto Nacional Jordi Mercader to this day remains the same company and philosophy – de Industria, Aguas de Barcelona and with the company – with his son havas well as close ties and a fondness for CaixaBank; as well as being a member ing followed in his footsteps. the school: “I remember they made of the IESE Alumni Association’s ex- Jordi Mercader Barata (MBA ’03), you work really hard, but they taught ecutive committee. also chose industrial engineering. Af- you well. They made you feel special. “When I graduated in the mid ’60s,” ter a few years with companies in the That may be why students have such a recalled Mercader Miró, “an engi- industrial sector, he decided that an good relationship with the institution, neering career was normally associ- MBA was the key to advancing toward because you don’t usually see that ated with technical jobs. IESE offered positions of greater responsibility. “I with other schools,” says Mercader us a unique opportunity in Spain to chose IESE because 30 years after my Miró.

60 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE JOSÉ F. BERTRÁN, ENTREPRENEUR BEHIND THE CREATION OF TWO IESE CHAIRS “It is my duty to give back to society everything I have received” Prof. Mª Júlia Prats, José F. Bertrán and Prof. Pedro Nueno.

“If you help a worker, the worker will tration from Harvard University. Prats be very grateful to you. But if you help takes over from Prof. Pedro Nueno, an entrepreneur, all workers benefit.” who had held the chair since its creation These words of José F. Bertrán reflect in 1987, a time when “no one knew what the spirit that encouraged him to cre- entrepreneurship even meant,” recalled ate IESE’s Bertrán Foundation Chair Prof. Nueno. “We hope to remain a of Entrepreneurship. “It is my duty to point of reference,” said Prof. Prats in give back to society everything I have the ceremony held October 14 at the received,” he said, in an event marking Barcelona campus. Bertrán is also the the arrival of new chair-holder Mª Júlia creator of the José Felipe Bertrán Chair Prats, IESE professor of entrepreneur- of Governance and Leadership in Public ship and doctor of business adminis- Administration.

SALVADOR ALEMANY (PDD ’74), CHAIRMAN OF ABERTIS “Overcoming the fear of losing helps us win”

l The chairman of Abertis says fear of losing helps us win.” Having that leading is more about a company is about “developing recognizing the effort than your full potential,” and thinking the outcome and accepting the about medium- and long-term occasional failure as the result sustainability. These were some of of action. “We have to work with the thoughts that Alemany shared our sights set on the benefits of with MBA and EMBA students at a success, not the unpleasantness of Global Leadership Series session failure,” he said. “Overcoming the on November 20 at IESE Barcelona. Salvador Alemany, chairman of Abertis.

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YOSUKE YAGI, EXECUTIVE VICE-PRESIDENT IN CHARGE OF HR AND GENERAL AFFAIRS FOR LIXIL “Change is easy”

l Positive thinking is essential for success, according to Yosuke Yagi, executive vice-president in charge of HR and general affairs Bernardo Quinn, global director of HR for Telefónica, shared key points from his book Salvados in Extremis (LID Editorial). for LIXIL. For him, “change is easy,” since it’s all about attitude. “If you think change is going to be difficult BERNARDO QUINN, GLOBAL DIRECTOR

ly – then it certainly will be,” he OF HR FOR TELEFÓNICA m n Me s o mber said to MBA students in a session held October 30 at the Barcelona campus. “It’s important to be Yagi has led a revolution that has transformed this Japanese construction material and clear about what we household equipment company into a worldwide operation, with the need to stop doing” acquisition of firms such as GROHE. “It’s as important to know where to set our priorities as it is to be clear about what we need to stop doing,” said Bernardo Quinn, global director AURORA CATÁ (MBA ’89 AND PADE of HR for Telefónica, in a session of the Alumni ’03), SEELIGER Y CONDE PARTNER Learning Program. Professor Francisco Iniesta “WE ARE FACING A moderated the September 30 session at the Ma- NEW SCENARIO IN drid campus. According to Quinn, any company WHICH VALUES TAKE that’s in trouble should take three steps: identify PRECEDENCE” the problem, involve all members of the organiza- “We are facing a new scenario in tion, and execute the solution consistently. “It’s l which we must assign precedence important for us to be transformed as companies to values and giving the best of oneself,” and adapt to the change, keeping sight of who we said Aurora Catá (MBA ’89 and PADE are and what we do,” added the Telefónica execu- ’03), Seeliger and Conde partner, at the IESE Alumnae Breakfast “Women in tive. The process should be led by a strong leader, Power,” held October 7 on IESE’s Barce- but “everyone working at the organization should lona campus. A board member for Antena 3 and understand that change begins with each of them,” Banco Sabadell, Catá urged companies he said. “For a transformation process to succeed, to find solutions so that age won’t be a there needs to be a level of energy that can be de- deterrent to job mobility in management rived from two main elements: a sense of urgency positions. In certain positions, age is an advantage: “It’s a mistake to exclude peo- throughout the organization and a vision for the ple older than 50,” Catá argued. future,” concluded Quinn.

62 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE BILL MCDERMOTT, CEO OF SAP “LEADERS SHOULD REALIZE THAT NO ONE’S PERFECT”

ly m n Me s o mber Good leadership is distinguished The first non-German citizen (he that you don’t have all the answers, l by the “people part,” said Bill is from the US) to be appointed CEO and that no one’s perfect. You have to McDermott, CEO of SAP. “You have at SAP, McDermott’s journey to lead- listen to people – they always know. to build great teams, coach people, ership has taken him from opening a Trust your people,” he said. give them direct and honest feedback, corner store in Long Island to work- nurture them and challenge them. ing for the likes of Xerox, Gartner and PLAYING THE HAND YOU’RE DEALT And you have to hold them account- Siebel Systems. McDermott has faced a seri- able.” Responsibilities that should McDermott, who appeared at the l ous personal challenge recent- account for 80 percent of leaders’ Alumni Learning Program on Novem- ly, losing an eye in an accident that time and call for a high degree of ber 17 at IESE Barcelona, said that he could have cost him his life. Difficult ‘emotional intelligence’ from senior learnt the importance of teamwork as it was to overcome, the accident management. at Xerox. “I was given the company’s has challenged him to value his good According to McDermott, SAP worst-performing team to manage. fortune. “I lost sight, but in a sense I as an organization has a high IQ, but We were based in Puerto Rico, and gained vision,” he says. “You are the he stresses that a company’s success right at the very bottom of the league in sum total of all the experiences you’ve also hinges on its emotional intelli- terms of performance.” He managed gone though. And whether you have a gence (EQ): “Knowing how to make to reverse his team’s fortunes within 12 lucky hand or an unlucky hand, it’s the human connections is essential. months. By the end of the year, Puerto how you play it that really matters.” Identifying and harnessing what it is Rico was occupying the number one He left the MBAs and alumni with a that helps you connect with your cus- spot. He credits the turnaround with thought: “Celebrate what you are, and tomers, your colleagues, your peers connecting at a human level with his don’t waste time being disappointed and others.” team. “As a leader, you should realize in the things you’re not.”

The CEO of SAP shared some of the challenges he has faced at the helm of the German multinational company, in a session moderated by Prof. Eric Weber.

Alumni Magazine IESE JANUARY-MARCH 2016 / No. 140 63 L I F E

Amsterdam

London

Brussels New York Paris Porto Lisbon Andorra la Vella Mexico City

Dubai Panama City

Bogotá

Santiago (Chile)

Lima Sao Paulo

Buenos Aires THE LATEST ON IESE’S ALUMNI CHAPTERS CHAPTER NEWS

right to quality education in Mexico Mexico City through instruments for citizen Paris SEPTEMBER 2 participation and activism. SEPTEMBER 7 The Regional Chapter of Mexico, Alumni joined together in the lheaded by Gérard Schoor (MBA London lFrench capital for the first Dîner ’91), welcomed alumni in Mexico SEPTEMBER 3 du Premier Lundi of the academic City for the first meeting of the Prof. Evgeny Káganer gave year. academic year. The event featured la lecture in London titled a presentation on the country’s “Unlocking big data’s big secrets – Brussels economic potential. Why every company needs a data SEPTEMBER 21 experience designer.” He talked about Laurence Battaille (MBA ’95), NOVEMBER 4 the importance of managing big data lpresident of the Regional Chapter Alumni gathered in Mexico City in any company striving the utmost to of Belgium-Luxembourg, organized lto learn more about Mexicanos meet customers’ needs and improve a dinner to celebrate the start of the Primero, an initiative promoting the customer satisfaction. academic year with alumni.

64 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE MORE PHOTOS OF THE SESSIONS: www.facebook.com/alumni.iese www.twitter.com/iesealumni

London NOVEMBER 12 At this alumni meeting in l London, senior lecturer Alberto Ribera used the example of architect Antoni Gaudí and his iconic work, the Sagrada Família basilica, to understand the main characteristics of positive leadership, including purpose, vision, passion for Tokyo excellence, resilience and the ability to get the best out of Shanghai people.

session was organized at the ISE professor at IAE, gave a talk on Singapore campus in Sao Paulo. innovation and risk-taking titled “Experimentation as a means of NOVEMBER 10 innovation. The key is to take risks The alumni met again at ISE and accept mistakes.” The session lSao Paulo, this time to attend a took place at the IAE campus in conference on Brazilian economy, Buenos Aires. titled “Investment in innovation and entrepreneurship in Brazil,” led by Lima Ricardo Engelbert, a professor at the SEPTEMBER 25 institution. Prof. Manuel Alcázar (MBA ’91) at The speakers were Anderson Thees, lthe PAD School of Management in founding partner of Redpoint Peru hosted a conference titled “What eventures, and Maria R. Spina, is a person?” executive director of Anjos do Brazil and founder of MIA (Mulheres Porto Investidoras Anjo). OCTOBER 8 Alumni from the Regional Chapter Buenos Aires lof Portugal, led by José Gabriel SEPTEMBER 25 Chimeno (PDG ’95), kicked off the After traveling around Brazil, academic year with an event in Porto. lProf. José R. Pin visited the Sao Paulo University of CEMA (UCEMA), where New York SEPTEMBER 24 he gave a lecture on the relationship OCTOBER 20 In today’s world, business of executive power and firms, titled IESE’s New York campus was leconomy demands efficient titled “How can the government help lthe meeting point for alumni governments. The policy of public the business economy? The Four-Leaf attending the conference “The political administration is a key factor for the Clover Scheme.” economy of thriving societies.” economic efficiency of enterprises in a globalized economy. Speaking NOVEMBER 25 Singapore in Brazil, Prof. José R. Pin explained Alumni gathered to attend OCTOBER 28 what these governments should be la conference featuring two Prof. Paddy Miller traveled to like and what companies can do in sessions: Federico Procaccini lSingapore to talk with alumni their political relations so that the (MBA ’06), director of Google in about the leadership crisis and the governments will help rather than Argentina, presented “Innovation in requirements for being a good leader hinder entrepreneurial activity. The communications,” and Luis Dambra, in today’s world.

Alumni Magazine IESE JANUARY-MARCH 2016 / No. 140 65 L I F E

Dubai Amsterdam NOVEMBER 16 OCTOBER 13 IESE Assistant Prof. Sebastien The first dinner for alumnae lBrion traveled to Dubai to give a l in Amsterdam featured the talk to alumni on “The transparency participation of Prof. Nuria dilemma: Managing emotions and Chinchilla. Attendees of the engagement in the transparent event, organized by Cindy organization.” Hondong (GEMBA ’14), got to enjoy the cuisine of Adrienne Eisma, a private chef who has worked in Andorra la Vella Michelin-starred restaurants. NOVEMBER 16 In the face of speculative trading lor so-called financial economics, there are increasingly more voices calling for the economic system to be Panama City based on the generation of services, NOVEMBER 16 products and real added value. The capital of Panama For some, this is inseparable from l hosted a networking quantitative growth, i.e., the increased session for IESE alumni demand for raw materials and energy. attended by Prof. Heinrich Meanwhile, those who realize the Liechtenstein. limitation of these resources, seek formulas for achieving qualitative growth. With that in mind, the new economic and socioenvironmental challenge would be to grow without the company, and capitalize on consuming, or at least without Bogotá the value created in the process. wasting resources. Sociologist and ERF OCTOBER 29 The event was organized at the Bci president Ramon Folch discussed this The Regional Chapter of Colombia, headquarters. trend during a session moderated by lheaded by Luis Fernando Prof. Josep M. Rosanas. This event Londoño (MBA ’03), organized its Shanghai was organized in collaboration with annual IESE alumni meeting in Bogotá. NOVEMBER 9 the Crèdit Andorrà Chair of Markets, The special guest on this occasion was In today’s volatile and uncertain Organizations and Humanism. Javier La Rosa (MBA ’00), president of lworld, it is often difficult for us to Chevron Colombia, who spoke about gauge the impact of macroeconomic Tokyo his company, his industry and his events in our everyday business. How NOVEMBER 26 career. is business in the largest economy Based on four decades of of Asia affected by the decline in the lexperience in the senior Santiago (Chile) Chinese stock market, the historic fall management of leading global OCTOBER 29 of oil prices, the Greek debt crisis or organizations, his experience from Álex López, head of Sartia, was Japan’s “Abenomics”? more than 150 visits to Japan lin the Chilean capital to give a Profs. Pedro Nueno and Pedro Videla since 1982 and his academic work, lecture with advice for executives gathered with alumni in Shanghai Prof. Jan Oosterveld spoke about on LinkedIn, titled “Five LinkedIn to share their knowledge about the several issues involving change pointers for managers: A strategy current economic context and its and internationalization related for professional and company implications for Chinese business to Japan, offering some practical positioning.” leaders. recommendations to attendees. He told alumni how to research and leverage networks and applications Lisbon NOVEMBER 27 to build relationships with current NOVEMBER 11 Attendees of this meeting in or potential customers; how to be Alumni in Portugal hosted their lTokyo took in a lecture titled relevant to them; how to offer them lmonthly dinner conference, this “Corporate family responsibility: the value through networked contacts; time in the capital city. This month’s way for more female leadership and and how to ultimately capture their guest speaker was IESE lecturer Mario sustainable growth,” presented by interest and build their loyalty to Capizzani. Prof. Nuria Chinchilla.

66 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE MORE PHOTOS OF THE SESSIONS: www.facebook.com/alumni.iese www.twitter.com/iesealumni

IF YOU ARE AN ENTREPRENEUR YOU’RE IN Don’t forget there is a group on LinkedIn THE NEWS IESE Entrepreneurs & Venture Capital Hub ARE YOU IN THE NEWS? We are interested in all your latest news. Send your comments to [email protected]

EMBA ’04 MBA ’87 Alberto Sarrias is the new After holding Máximo Buch director of the commercial various was named division at Engel & Völkers in commercial and board member Barcelona. sales positions at Noatum ______in Latin Ports, Noatum MBA ’96 America, Spain Container Diageo appointed María Andrés and the Terminal as its new CFO. corporate offices,Óscar Carrera Valencia, Noatum Terminal ______has been named commercial Polivalente Sagunt and MBA ’00 director for South Europe by Marmedsa Noatum Maritime. Manuel Nokia Networks. • • • • • Ausaverri is the ______José M. Vara was named new director of EMBA ’05 managing director of strategy, Francisco Lobo Institutional Relations at innovation and is now head of Deoleo. partnerships at Europe procure- ______Indra. He is also ment & supply MBA ’90 chief of staff for the company’s chain manage- The mutual guarantee society chairman and CEO. ment (B2C & of the region of Valencia has ______B2B) of BP appointed Iñigo Parra as a MBA ’01 Fuels, overseeing all retail assets. member of its board of directors. Merkamueble Europe appointed ______Antonio Picamill as its CEO. EMBA-C-12 MBA ’91 & PADE-A-05 ______Eduardo Javier Corral MBA ’04 Hernando was was named Catherine named director of L’Écuyer managing commercial published director of Eley strategy and Educar en la Hawk at its operations for realidad headquarters in Spain and (Plataforma, Birmingham, United Kingdom. Portugal at Bristol-Myers 2015), a book ______Squibb. about the use GCP ’12 & PADE-I-98 ______of new Luis Badrinas was named MBA ’93 technologies in childhood and coordinator of the social security Juan adolescence. The author argues commission at ADECOSE, in Arrizabalaga that the best preparation for addition to his existing role as was named using new technologies happens partner and CEO of Community chairman of in reality, i.e., the best of Insurance. Altadis. preparation for the online world ______• • • • • is the offline world. GCP ’14 & PADE-1-02 Javier de Paz • • • • • Agustí Cordón was named Managing Director Elsa Galindo is is the new CEO and Global Leader for Telecom the new of Grupo Zeta. & Media and Digital Strategy at Research ______Wit Consulting. Director for JLL • • • • • Spain. ______

Alumni Magazine IESE JANUARY-MARCH 2016 / No. 140 67 L I F E

YOU’RE IN THE NEWS

MBA ’10 PADE-A-08 PDG-A-15 Rachelle Esther Galiana was named board César Sánchez is the new vice- Samson Oribio member of the international president of Airbus for South is founder and Bankers Association for Finance Eastern Europe. director of the and Trade (BAFT), and co-chair ______first Tech- of the Europe Council for BAFT, PDG-B-04 stars++ pro- in addition to her position as the Álvaro Lorente was named gram. It is a head of financial institutions at international general manager of partnership between 11th and BBVA Corporate & Investment SENER. the Mayo Clinic of Rochester Banking. ______(US), which leverages new ______PDG-B-11 technologies for enhanced PDD-2-04 Carlos Olave was named patient care. Agapito González is the new director of human resources at ______vice-president of professional LG Electronics Europa. PADE-A-03 services of Unit4 for Southern ______The Dutch and Eastern Europe, Africa and PLD ’14 (SPRING) group Boskalis Asia-Pacific. Federico International ______Minichilli was appointed PDD-D-09 named regional Rafael Llamas Javier Escobar was appointed sales director of director of head of equities at Banco Refinish Systems business Santander Europe and president for France and development for Latin America, of Santander Investment Bolsa southern Europe Spain and Portugal. (the group’s securities firm). at Axalta Coating Systems. ______

SOCIAL INITIATIVES

MBA ’10 Marissa Muller spent the sum- mer touring, solo, across America on an electric bicycle that was charged by the sun. The purpose of her solar bike adventure was to engage the public, showcase clean energy and an alternative form of transportation and talk about healthy living. “We all have the potential to participate in a climate solution and it is as simple as getting out of the car, riding an electric bike and harnessing the power of the sun,” said Muller. She believes her 3,300-mile journey (the equivalent of riding three times from Barcelona to Copenha- gen), was made possible thanks to the MBA. “While at IESE I learned how to take a rather lofty goal and create a strategy to make it a reality: commit to the goal, create an action-oriented plan, build a support network, add a timeline and focus all your attention on seeing it through. This process is what helped transform this dream into a reality,” she says.

68 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE IF YOU ARE AN ENTREPRENEUR Don’t forget there is a group on LinkedIn

IESE Entrepreneurs & Venture Capital Hub

ENTREPRENEURS

AMP ’12 innovative system for detecting pollution via hydro- The company Value Management carbons. The company was awarded first prize at Consulting (VMC), whose managing Sodercan’s 7th contest for technology-based startups. partner is Benjamín Lorente, created ______the Value Management Institute PDD-III-95 (VMI) to offer training. Its courses are Domingo Cabeza founded DC Aso- recognized by the European Govern- ciados, a strategic consulting firm ing Board for Value Management. aimed at helping SMEs to compete ______and optimize both their supply chain EMBA ’02 and their value creation process. Santiago Ramas and Pedro ______Tabuenca, members of the PDD-C-13 same graduating class, creat- Mónica Sacristán launched an online shop called ed a company called Smart Good Food. It also provides information on the prop- Sensor Technology, which erties of the products and how they help keep our manufactures and sells an bodies healthy and strong.

WELCOME TO THE ALUMNI ASSOCIATION EXECUTIVE EDUCATION GRADUATIONS AMP ‘15 Spring President: Una Steinsdóttir Vice-president: Giorgio Miano

PMD-1-Brasil-2015 President: Alecsandro Araujo de Souza Vice-president: Rodrigo Suassuna

Alumni Magazine IESE JANUARY-MARCH 2016 / No. 140 69 I E S E & YOU

ALUMNI CAREER ADVISING CAREERS WITHOUT BORDERS Just two months into the academic year, 350 members of the Alumni Association have already had a personal coaching session with a career advisor. Thanks to their proven background as headhunters and executives of large companies, the team of 13 international professionals is able to provide guidance to those looking to internationalize their career or pursue other objectives. The cost of the annual session is included in the membership fee.

here are numerous tionalizing their career,” says Joan- They should also be clear on what reasons why alumni na Moss, an advisor in London. The internationalizing a career means to seek out the services first step is to consider: What is my them: “Does it mean working for an of Career Advising. brand? What are my values? What international company in your coun- These include: new job am I good at? What makes me stand try and opening yourself up to op- searches,T preparing for promotion, out against the competition? What portunities of working abroad or are designing career plans and personal are my aspirations? This process of they thinking of moving physically branding. The desire to internation- self-awareness will “help the alumni abroad?” asks Moss. “International- alize their career is another motiva- decide whether internationalizing a ization is also a process of expanding tion for them to ask for professional career would be beneficial for them your frame of reference and may not guidance. “The IESE Career Advis- or not and more importantly, make necessarily require living and working service could help alumni think them aware of whether they are ready ing abroad,” says Alan McFarlane, around the many facets to interna- to take this step,” explains Moss. one of the advisors.

IESE’s alumni career advisors provide face-to- face service in Madrid, Barcelona, New York, Munich, London, Vienna, Zurich and Sao Paulo, and online everywhere else in the world.

70 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE 10 STEPS TO INTERNATIONALIZING YOUR CAREER

BEFORE CHANGING COUNTRIES… ONCE IN YOUR DESTINATION…

1. Think of your career as a journey: each move must 6. Become integrated: Don’t live in an expat make sense and be consistent with your ultimate bubble — open yourself up to the rewarding goal. experience of living as a local. 2. Have a clear purpose: What motivates you to 7. Discover the local culture: Learn the language, internationalize your career? What would you like even if you don’t need it for work. Explore the to achieve? country or the region beyond the city where you 3. Do a SWOT analysis: Identify your strengths and work. weaknesses in the context of working international- 8. Be receptive: Be respectful of other ways of ly, and the opportunities and risks that this change doing things that might be very different from would bring to your life. yours. 4. Do not make the decision in isolation, or in a hurry: 9. Be clear about your expectations and learn to This change will have a huge impact on your person- manage your emotions. al and professional life. Plan it with enough time. 10. Actively maintain your network to facilitate 5. Seek support: Talk to people who can help you map your next move to wherever that might be, out and execute your career plan. Request a session including home. Let people know how are you with a member of the IESE Alumni Association’s doing, share your learnings and how they are Career Advising team. contributing to your development.

McFarlane adds that “many will no agenda for them,” says McFar- see such a period of working abroad lane. The IESE careers as a means to an end. Others will see service could it as an end in itself and have a strong A SERVICE WITHOUT BORDERS help alumni personal motivation to explore the “I have sessions with alumni think around the many world, other cultures and ways of do- l from all around the globe,” ex- facets to internationalizing business.” They should be clear plains McFarlane. The sessions take ing their career.” about their motivation for taking this place on the Barcelona, Madrid, Mu- step, and consider the time horizon: nich and New York campuses, as well JOANNA MOSS, Are they making a career decision as in London, Vienna, Zurich and Sao ADVISOR or is this a short-term move? Would Paulo. For those located farther away, “ they envisage a solo assignment or there are also sessions via Skype. The are they prepared to relocate their service is expanding its international families? reach. In fact, the 2015 Global Alum- International- “The careers service could offer ni Reunion included the first meeting a program that helps alumni work between advisors and international ization is also through this process and support alumni. a process of them through it to ensure that they To maximize the session, Moss expanding your frame of consider every aspect,” says Moss. encourages alumni to ask themselves reference and may not “We can help you think through and why they are requesting the service necessarily require living clarify your motivations, aspirations and what they hope to achieve. She and working abroad.” and approach to internationaliza- says that “the clearer they are with tion. Many appreciate the opportuni- their expectations, the greater the ALAN MCFARLANE, “ADVISOR ty to explore these and other matters probability of a successful and re- with an independent person who has warding meeting.”

YOU CAN APPLY FOR A PROFESSIONAL ORIENTATION SESSION AT: WWW.IESE.EDU/CAREERADVISORS

Alumni Magazine IESE JANUARY-MARCH 2016 / No. 140 71 L A S T O WR OI R D Comparisons Are Still Odious

JOAN DE DOU Senior lecturer of the department of managing people in organizations, IESE

here are you working now?” This in which a person finds him- or herself is ever- is a very common question when changing, and secondly, each person’s perception two people who know each other of it will vary. As such, decisions driven by get back in touch after time apart, comparisons are often amiss. such as might happen to IESE Let’s turn to the corporate realm. An employee alumni. But the answers can vary, depending on observes coworkers who belong to the same who is asking the question. The person on the professional group, and compares him or herself “Wreceiving end of this question may give an evasive to those coworkers. One, for instance, seems answer – after making a quick comparison – if to be very in tune with their superior. Another they feel their professional position could be performs better thanks to a more aggressive considered “inferior” to the other person’s, but personality. The first employee might react by it’s a different story if they feel they have a more trying to imitate his or her peers, but does not prestigious position. possess the requisite qualities of empathy or In his book Happiness, Richard Layard – pushiness. This person is therefore incapable of economist, professor emeritus at the London controlling the influence that comparison with School of Economics and a member of the British their environment has on them personally, on House of Lords – argues that the two root causes their behavior and on their professional output. of a person’s unhappiness are often complacency At the source of comparison lies a lack of (not knowing how to enjoy what one has) and assuredness in oneself. An insecure person will comparisons. But what does it mean to make depend on the opinion of others to gain a feeling comparisons? How does it affect us? of happiness, however superficial and fleeting, There are many studies that validate the since it is purely based on remarks, such as from expression “in the kingdom of the blind, the a coworker or a superior. In the business world, one-eyed man is king.” What would you prefer: everyone must be aware of the role they should to earn $100,000 in a social milieu in which your play and what their capabilities are. “equals” earn $120,000? Or earn $80,000 in a It may be obvious to some, but in order to start setting in which everyone else earns $70,000? solving the problem it must be accepted that The answer tends to be $80,000. people tend to compare themselves with others The conclusion is a simple one: the actions and that this attitude affects them in many ways. of those who check the $80,000 box are Many people are not aware of this, and thus live influenced by their peers. And when people are enslaved and inhibited by their insecurities, overly concerned with comparing themselves because there will always be someone seemingly with those around them, it can have extremely better or more fortunate. negative consequences for them as individuals And, of course, it’s essential to have solid and, therefore, on their personal and professional convictions upon which we can build our sense lives as well. of security – this should form our personal In order to get the complete picture, two measuring stick. Using someone else’s only factors need to be considered: firstly, the context creates a constant sense of frustration.

72 JANUARY-MARCH 2016 / No. 140 Alumni Magazine IESE THANK YOU

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