THE ALUMNI MAGAZINE OF COLUMBIA BUSINESS SCHOOL

RISK

REWARDFour alumni CEOs tell us about their approach to risk. p. 8 Healthy Living 2.0 Start-up trends to watch in the health and wellness space. p. 13 Behind the Buzz Jon Steinberg ’03 of BuzzFeed attributes his success to mistakes and luck. p. 16 THE LONG VIEW A student talks to a seasoned alumna about sustainable investing. p. 23

Jennifer Vaughan Maanavi ’00, CEO of Physique57

SPRING 2014 THE ALUMNI MAGAZINE OF COLUMBIA BUSINESS SCHOOL

23THE LONG VIEW: Mary Jane McQuillen ’07 (EMBA) welcomes Uzayr Jeenah ’14 to ClearBridge Investments. SPRING 2014

FROM THE DEAN’S DESK

Learning from Our Community of Leaders

We are at the very center of business, developing students with the knowledge and ability to make a powerful impact on the world. This issue of Columbia RISK AND REWARD: Business captures our unrivaled HEALTHY LIVING 2.0: “We’re never afraid to culture of academic excellence, Start-ups take employee take risks,” says Michael our unmatched exposure to the pulse of business, 13 wellness to the next level. 8 Diamant ’93 of Skip Hop. our diverse entrepreneurial community, and our lasting impact on the business world. In “Risk and Reward,” alumni CEOs of high- performing companies talk candidly about the risks IN BRIEF CLASS NOTES they took that were critical to their success. The FEATURES knowledge they graciously share is applicable to 3 LaUNCH 29 Alumni Spotlight leaders of any organization. And in “The Long View,” 8 Risk and Reward 16 Behind the Buzz current student Uzayr Jeenah ’14 interviews sus- Better Jerky Hair Hero by Amanda Chalifoux and Simone Silverbush by Jen Itzenson tainable investing expert Mary Jane McQuillen ’07 Jon Sebastiani ’12 (EMBA) is bringing jerky Robert Bernstein ’04 (EMBA) (EMBA), shedding light on a rapidly growing area into the healthy snacks category. Four alumni CEOs of high-performing companies Jon Steinberg ’03, president and COO of BuzzFeed, 30 Alumni Spotlight of finance. 4 Big Apple talk candidly about their approach to risk. is an innovator in an ever-changing industry. The alumni, students, faculty members, staff, Designing Woman programs, and centers showcased here represent Community Health Partner Maureen Footer ’84 what Columbia Business School is all about: lifelong Manmeet Kaur ’12 is applying lessons 31 The Fast Track learning and leveraging the opportunities available learned from community health programs 13 Healthy Living 2.0 23 The Long View in Africa and India to East Harlem. Recently announced promotions to our community. I hope you are as inspired as I am. by Amanda Chalifoux and Simone Silverbush and new positions. As part of our new At the Center Q&A series, Uzayr 7 Your Career Start-ups in the wellness space are pioneering Jeenah ’14 chats with Mary Jane McQuillen ’07 Glenn Hubbard 35 Alumni in the News Dean and Russell L. Carson Professor How Can You Succeed in innovative ways to boost your health and (EMBA) of ClearBridge Investments about the real of Finance and Economics Your New Role? 36 FACES & NAMES happiness. returns of investing in a sustainable future. Executive coach Ethan Hanabury ’85 has Alumni gather with Goldman Sachs tips to help you survive—and thrive—in CEO Lloyd Blankfein. your new position. 38 AlUMNI Spotlight IDEAS AT WORK Dual Focus Jonathan Goldman ’13 (EMBA) JOIN THE CONVERSATION Stay connected to the Columbia Business School 19 Do Diverse Teams Work 40 AlUMNI Spotlight community by viewing and sharing videos, photos, and updates. Learn more at gsb.columbia.edu/participate. Harder—and Better? Green Cowboy Research by Katherine Phillips suggests Conor McKenna ’09 Columbia Business School Contributors Amanda Chalifoux, Editorial Office Address changes can be submitted Columbia Business, Columbia Alexandra Dreyer, Jen Itzenson, Columbia Business School on the alumni website at gsb. Business School’s alumni magazine, DIGITAL EDITION that individuals who view their colleagues Dean Glenn Hubbard Now you can experience Columbia Business with as different from themselves focus less on 41 GIVING BACK Kimberly Kinchen, Dan Rosen, 33 West 60th Street, 10th Floor columbia.edu/alumni or directed is published twice a year by Columbia Don Hamerman, Parko Polo, James New York, New York 10023 to the Alumni Relations Office at Business School, Columbia integrated videos, photos, and links. Search for “Columbia getting along and more on getting to work. Associate Dean for Marketing and Communications Steinberg, Ellen Thorn, Verity Walsh Phone: 212-854-8567 212-854-8815. University. Business” at Google Play or in the App Store to download David Simon ’85 Iris Henries [email protected] the Columbia Business app for Android and iOS devices. 22 Maxing Out on Primary Care Senior Associate Dean for External Columbia Business welcomes letters Opinions expressed are those of Senior Director of Communications Relations and Development Lisa Yeh © 2014 by The Trustees of Columbia to the editor and class notes updates the authors and editors and do not According to research by Linda Green, Tori Fullard University in the City of New York submitted on the alumni website reflect official positions of Columbia Design Taylor Design the projected physician shortage can be or sent by mail or e-mail to the Business School or Columbia Senior Editor Simone Silverbush averted by tapping nonphysician medical editorial office. University. staff and electronic communications.

gsb.columbia.edu/magazine 1 News from around IN BRIEF Launch the School

Company Profile Founder: Jon Sebastiani ’12 (EMBA) IN BRIEF Industry: Healthy Snacks Location: Sonoma, CA Years in Business: 3 Better Jerky 2013 Sales: Over $30 million Jon Sebastiani ’12 (EMBA)

Q. What was the greatest value of IE@Columbia for the WordsEye team? Picture This The premise behind IE is that there is a tremendous amount of intellect, Jon Sebastiani ’12 (EMBA) was snacking on jerky research, and innovation happening across the University that can be har- as he prepared for the New York City Marathon Q&A with Neelam Brar ’14 nessed. The program brought me together with engineers who had put in when he realized that the old-school snack had years of R&D; I was able to bring my business acumen to the table to help the potential to be healthy and popular—and that the industry was ripe for disruption. Neelam Brar ’14 has a way with apps. In the last commercialize their work and bring it to scale. two years, the former investment banker and pri- Q. You still have a stake in WordsEye but have just launched another app. From Liability to Opportunity vate equity consultant has brought two mobile apps How did that new collaboration come about? The meat snacks category has a negative stigma— to market. As a member of the inaugural class of people associate jerky with junk food. We had the I joined a team in Steve Blank’s Lean LaunchPad class to develop Forever|Not. the Innovation and Entrepreneurship @ Columbia courage to separate the product from this stigma, swap The app enables users to anonymously bet on the relationships of friends Program, an initiative led by the Eugene Lang artificial ingredients for healthy ones, and reposition and celebrities. Entertainment gossip drives this fun and competitive game Entrepreneurship Center that nurtures ideas and it for today’s consumers—including women. Since that uses social gambling. We launched on February 13, Valentine’s Day technologies from across the University, Brar teamed companies in this category had been doing the same eve, and are live in the App Store. Our mission is to reduce the divorce rate up with Columbia engineers to introduce WordsEye, things for decades, it was easy to jump in and disrupt by keeping bad couples apart through anonymous feedback from their a mobile app and website that translates typed descriptions into shareable the industry very quickly. friends and fans! images. The team won the New York State Business Plan Competition last

year and will launch the app publicly this summer. Brar’s most recent app, WordsEye: wordseye.com | Forever|Not: forevernot.com Don’t Say the M-Word Forever|Not, is also social­—with a romantic twist. IE@Columbia: gsb.columbia.edu/innovation When we talk about our products, we focus on their health benefits compared to, say, a Cliff Bar. We almost never say the word “meat” because we see ourselves in the healthy snacks industry. How we marinate our meats, our flavors—cherry barbeque, chili lime, and School Mourns Professor Can My Company, University, others—and our packaging all appeal to today’s health- Casey Ichniowski or Organization Change? conscious consumers. When someone as iconic as Oprah recommends our products, we know that we’re Casey Ichniowski, chair of the On November 8, the Sanford C. Bernstein & Co. changing this category—and that’s really gratifying. Management Division and a Center for Leadership and Ethics hosted a research faculty member at Columbia symposium on organizational change, “The Big, Live Case Study for 30 years, has died. Big Question: Can My Company, University, or You don’t just wake up one day and aspire to be in the Ichniowski was a strong Organization Change?” jerky category. If it weren’t for Columbia, I probably and tireless advocate for the The symposium featured opening remarks wouldn’t have had the courage to take my idea seri- faculty and for Columbia by Gita Johar, senior vice dean and the Meyer ously. The business evolved over the course of the Business School. He was deeply Feldberg Professor of Business, and Damon MBA Program. The opportunity to have a new business committed to teaching and had recently developed Phillips (right), the James P. Gorman Professor concept and be in a room full of incredibly smart people a new elective, The Management and Economics of Business Strategy ( bit.ly/cbs-change). “It’s from Microsoft to eBay to Apple and Goldman Sachs of Professional Sports. He was instrumental to the very hard to embrace change,” Johar said. “But provided tremendous feedback. Steve Blank, whose development of the School’s popular Managerial given today’s dynamic business environment, it’s entrepreneurship class I took, is still an advisor to Negotiations course. imperative for organizations and individuals to In his afternoon keynote address, Anthony the company. Ichniowski was often praised as the ideal divi- evolve.” While modern leaders frequently antici- Marx, CEO of the New York Public Library, sion chair. He was also an exceptional and active pate change, Phillips said, efforts to adapt to it fail talked about driving culture change ( bit.ly/ What’s Next researcher who authored several cases to enhance the more often than they succeed. “We want to have cbs-change3). “You can't just assume that your We believe that over the next several years, protein- School’s management and negotiations curriculum. a dialogue where we can tap into the richness of customer base will understand the change,” based snacking will be a large new industry. We expect His research was published in leading journals, includ- different perspectives and learn from one another,” Marx said. “You have to inform and try to feed to introduce meat-based bars with ingredients like ing Labour Economics, American Economic Review, Phillips said. “Can we get from the what of change that demand.” oats, quinoa, and dried cranberries. We’ve raised two Management Science, and Industrial Relations. management to the how?” Professor Todd Jick moderated the afternoon rounds of institutional capital with ACG [led by Julian A devoted, beloved family man, Ichniowski is Bruce Kogut, director of the Bernstein Center, panel, which included two famed industry experts: Steinberg ’05]. We believe we will become a $100 mil- survived by his wife, Anne, and children, Tim, Liz, moderated a faculty panel featuring Ray Fisman, Lauren Chesley, director of change execution at lion company within the next 24 months. and Carly. Tim graduated from Columbia College in the Lambert Family Professor of Social Enterprise; Verizon, and Nancy DeViney, vice president —as told to Simone Silverbush 2010, Liz is a 2013 alumna of the School, and Carly is Elke Weber, the Jerome A. Chazen Professor of organizational change management at IBM a student at Columbia College. of International Business; and Joseph Porac, a ( bit.ly/cbs-change4). They were joined by Steven Inspired by Krave, Oprah told readers to “give cured meat another chance.” Read her recommendation at oprah.com/gift/krave-jerky. Condolence messages can be sent to Ichniowski’s management professor at the NYU Stern School of Mandis, adjunct associate professor of finance family at ­[email protected]. Business ( bit.ly/cbs-change2). and economics.

2 Columbia Business / Spring 2014 gsb.columbia.edu/magazine 3 IN BRIEF Big Apple IN BRIEF

Alumni Named to Fast Company’s Most Diego Mayer-Cantú ’12: Creative People in Business 1000 Democratizing Data Seven alumni are featured in Fast Company’s Most Creative People in Business 1000, an online resource launched in January that showcases “an influential, Diego Mayer-Cantú ’12 is an entrepreneur’s entrepreneur: diverse group of modern Renaissance men and women across the economy his first venture out of business school uses open data and around the globe [who are] behind the world-changing, inspiring, and, from the US Patent and Trademark Office to make the patent process easy and affordable for start-ups. In the yes, even whimsical, ideas that are moving business in new directions today.” fall, Mayer-Cantú joined the Smithsonian Institution to Keep up with honorees’ projects and social updates by visiting their Fast work on an open data initiative as part of the Presidential Company profile pages: Innovation Fellows program, which pairs top innovators from the private sector, nonprofits, and academia with Giovanni Colella ’95 Robert Reffkin ’03 government agencies to collaborate during 6- to 13-month “tours of duty.” (EMBA) Founder and CEO At the Smithsonian, Mayer-Cantú is focused on digitizing curatorial Cofounder and CEO of Urban Compass information, photographs, 3-D scans of objects with historical significance, and of Castlight Health bit.ly/cbs-reffkin similar materials. “We want to make these resources enriching and engaging for bit.ly/cbs-colella different audiences,” he says. The digital collections are also made available to education start-ups. “This work has prompted me to think about the opportuni- Manmeet Kaur ’12 Albert Lee ’09 Jordan Roth ’10 ties that exist at the intersection of public-private partnerships.” Executive Director and Founder, Managing Director President of For Mayer-Cantú, one of the benefits of working with a large government City Health Works of IDEO Jujamcyn Theaters agency is scale. “How many education and tech firms have a $2 billion annual bit.ly/cbs-lee bit.ly/cbs-roth budget that affects hundreds of millions of people worldwide? This kind of work,” he says, “satisfies my personal motivation for entrepreneurial activity that affects many people in meaningful ways.” Photo: Brian Ireley, Smithsonian Institution Maryam Banikarim Nina Tandon ’13 Community Lerner ’93 Research Scientist at Senior Vice President Columbia University and Chief Marketing bit.ly/cbs-tandon Officer of Gannett PERSPECTIVES Health Partner bit.ly/cbs-lerner Cyrus Massoumi ’03 Which alumni leaders’ creativity CEO of ZocDoc knows no bounds? Tell us on Twitter bit.ly/cbs-massoumi with the hashtag #CBSAtTheCenter.

Seeking Impact patients during the pilot program—and to expand City “If you can Health Works to additional local communities in the future. Manmeet Kaur ’12 was first struck by the power of peer support when she was working with community empower people health programs in India and Africa. While collaborat- Power of Positivity ing with the Mamelani Projects in Cape Town, Kaur saw Kaur says that scaring people to help them manage diet- to take clear that community health workers had more influence on related diseases—“for instance, saying ‘cut down on salt In Memoriam: patients than clinicians had. “Seeing how people hired or else’”—doesn’t work. Instead, she says, it’s crucial to Professor Nahum Melumad control of their locally could affect their neighbors’ health, and seeing meet people where they are and develop practical, realistic the family-like relationships being formed, was incred- guidelines that are easy to follow on a daily basis. “Some Nahum Melumad, the James L. Dohr Professor of own lives and ible,” Kaur says. of our health coaches have diabetes themselves,” says Accounting and Business Law and a faculty member in the Such experiences inspired her to start City Health Kaur. “Others have lost family members or struggle with School’s Accounting Division for more than 20 years, died Works, a nonprofit that helps people in East Harlem chronic illness very closely in their families. So they really “It’s a great world to work in,” Cristina Monteiro Duarte health, you on January 15. better manage their chronic illnesses—diabetes, heart understand what that person is going through and can help Melumad served as the chair of the Accounting Division Schulman ’95, managing director of debt capital markets can see the disease, asthma, and depression. The program pairs guide them to achieve more sustainable behavior change.” clients with peer health coaches who provide motiva- from 2000 to 2006 and was an esteemed member of at Santander Global Banking and Markets, says about tion and education about practical ways to improve numerous School committees. In addition to his work with working in finance as part of our Engaging Leaders video most inspiring, Hometown Help MBA students, Melumad supervised many doctoral stu- diet, physical activity, and adherence to treatments. series, where business practitioners who have visited After creating the business plan at Columbia Born in Queens, Kaur now lives near Central Park and jogs dents who have gone on to roles at leading universities and institutions around campus share insights about their leadership experiences. transformative and receiving $25,000 from Russ Carson ’67, plus there every morning with her toddler son. “There’s a lot the world. He was recognized for his excellence in the classroom as the recipient $170,000 from other individual donors, Kaur secured of chaos in the city and in my own life—managing both a of both the 2005 Dean's Award for Teaching Excellence in a Core Class and the “Stick with it. Don’t give up,” Schulman says she’d tell her change.” $1.2 million from the Robin Hood Foundation and the small child and a new business—but I start every day look- EMBA Class of 2013 Commitment to Excellence Award. daughters if they choose to work in a male-dominated Melumad’s research was published in such leading journals as the Journal Robert Wood Johnson Foundation—and a contract ing at the beautiful park with him and taking a moment to industry. “[As women], we’re used to taking care of with the Mount Sinai Medical Center to launch an reflect on my day,” she says. of Accounting Research and the Journal of Economic Theory. He was also highly 18-month pilot program last September. She decided Most of all, Kaur is proud to help people in her home- regarded by industry leaders who often sought his counsel and rigorous analysis. everything . . . but you have to learn how to rely on your to focus on East Harlem, the neighborhood with the town. “If you can empower people to take clear control of He served on the boards and as audit committee chair of two publicly traded partner or on your family to help you.” highest rate of diet-related diseases in New York their own lives and health, you can see the most inspiring, companies—PhotoMedex and LabStyle Innovations. City. Working closely with community health clinics transformative change.” He is survived by his wife, Maya, and four children, Shiri, Yali, Gadi, and Yuval. bit.ly/cbs-schulman and Mount Sinai Hospital, Kaur hopes to reach 500 —Amanda Chalifoux Shiri is a doctoral student at the School in the Marketing Division.

4 Columbia Business / Spring 2014 Photograph by Aaron Baum, Research Director of City Health Works gsb.columbia.edu/magazine 5 IN BRIEF IN BRIEF Your Career

PHOTO RECAP

Alumni Club of New York Establishes Fellowship

The Columbia Business School How can you succeed Alumni Club of New York (CBSACNY) has shown its sup- in your new role? port for the School Left: Ira Simkhovitch ’14 Q: with a $10,000 Right: Ilene Moskowitz ’80 fellowship. The award, which was given to second-year student Ira Simkhovitch ’14, acknowledges academic per- It’s a challenge that every executive faces at some point EXPERT ADVICE GIVEN BY: • What is valued in this new culture? in his or her career: You have been promoted to a position formance and leadership in the Columbia Business • How have other recently promoted executives adapted with greater responsibilities and want to be successful, School community. to the new culture? “By giving back to the School with this first but you know that significant challenges lie ahead; • What duties can I reprioritize or delegate in order to award of its kind, the club will directly honor a according to leadership development firm Manchester, devote time to fostering new relationships? superlative student and also welcome a future alum,” Inc., many executives transitioning to new roles fail in said Ilene Moskowitz ’80, a member of the club’s the first 18 months. What can you do to increase your board of directors. “We hope to continue this fellow- chances for success? Address Your Own Weaknesses ship program each year going forward.” I’ve coached many executives in new roles and have While you leveraged your strengths to be promoted, “This ellowshipf is a testament to the strength found that when they focus on four key areas, they enjoy addressing your weaknesses may actually be more of the CBS community as a lifelong network,” greater success. Get to know these areas so that you can important in achieving success in your new role; higher Simkhovitch said. “In particular, it grants me survive—and thrive—in your new position. positions require broader skill sets. No one will be strong freedom to continue to pursue my long-term goal of in each skill that a new role requires, but a key to suc- Adopt a New Mindset becoming a leader in managing funds on behalf of cess is identifying your weaknesses—and compensating “My thinking was that the only way to beat extremism was through arts and culture,” In your previous role, you were probably valued as the purpose-driven organizations such as foundations, for them. Naif Al-Mutawa ’03, creator of The 99, a superheroes comic series based on the expert or “go-to person” for one particular area. But in university endowments, or pensions, in which the Ethan Hanabury ’85, former To address your weaknesses, consider these values of Islam, said at the 2013 Social Enterprise Conference on October 4. Professor your new role, you may oversee a team of experts, with senior associate dean for degree returns benefit those in need.” questions: Sheena Iyengar moderated a discussion between Al-Mutawa (center) and filmmaker accountability for leading a number of different areas. To programs at Columbia Business The CBSACNY fellowship is one of 95 new finan- School, is an executive coach and • How can I identify my potential weaknesses as they Isaac Solotaroff, who created a documentary about the making of The 99. Watch the be successful, you may need to demonstrate breadth, not cial aid awards created during the School’s capital organizational consultant. E-mail relate to my new role? depth. This will require you to change your mindset from him at [email protected]. campaign—the most awards established in a single conference video at bit.ly/cbs-sep. being individually responsible to overseeing a number • How can I develop strategies to overcome these decade in the School’s history. More at cbsacny.org. of people or multiple areas. weaknesses? To determine the mindset you’ll need to develop for • How can I compensate for these weaknesses? your new role, consider these questions: • Who on my team has strengths that could help me • What perspectives are required in my new role? “While you compensate for my own weaknesses? NEW VIDEO SERIES Antonio Simoes ’01 Heads • How do they differ from those required in my old role? leveraged your • What resources will I need to ensure that I’m able to Ask for Help Entrepreneurs in Residence First-Ever Ranking of LGBT adopt the right behaviors? strengths to Increasingly, organizations recognize the importance Each year, the Eugene Lang Business Leaders • What barriers may interfere with my adopting this be promoted, of providing support to newly promoted executives Entrepreneurship Center invites four to new mindset? through executive education, coaching, and mentoring. six individuals to become entrepreneurs Antonio Simoes ’01, HSBC Bank’s head of banking for addressing your Consider asking for this type of support as you begin in residence, giving students, faculty, and the UK and head of retail banking and wealth manage- Adapt to—and Get to Know—a New Culture your new role, perhaps even negotiating for it in your staff from across the University access A promotion typically brings you another step closer to weaknesses offer package. ment for Europe, was ranked No. 1 in the first rank- to expert advice as they launch new ven- the top of an organization—and to a new set of peers. Executive education can help you develop specific ing of lesbian, gay, bisexual, and transgender business may actually be tures. “In some ways, the easiest thing to Newly promoted executives tend to focus on their goals new skills. For example, if your new role requires you to leaders. Published by the Financial Times in October, come up with is an idea,” Kevin Quinn ’91, and the tasks at hand, sometimes forgetting that their be more influential without authority, then you might the 50-person list was created by the advocacy orga- more important partner of Genki Advisory, says in a new job cannot be performed effectively without assimilating take a course on persuasion. An executive coach can nization OUTstanding. It ranked executives according video series that showcases these lead- to their new culture. This requires keen observation of in achieving help you evaluate your strengths and weaknesses and to five criteria, including their seniority and ­influence, ers. “The harder thing to do is to develop the norms, values, and politics of the new environment. develop a personalized plan to increase your chances that idea so that [it] has the probability of and how much they contribute to the LGBT anti-­ In my experience as an executive coach, not putting in success in your for success. becoming a great company. The network discrimination cause. the time at the onset to adapt to a new culture is one of new role.” Mastering these four areas will enable you to that you can leverage here can accelerate the most common reasons executives fail in a new role. excel in your new role—and position yourself for future Watch the video: bit.ly/cbs-eir [that] development.” To determine how to adapt to a new culture, consider opportunities. the following questions:

6 Columbia Business / Spring 2014 gsb.columbia.edu/magazine 7 Julie Chapman ’83 CEO, 501cTech

Julie Chapman helped build On Not Always 501cTech into one of the only nonprofit technology service Being Likable: providers in the country by Being a leader is inher- convincing her board to take ently risky. You have to a risk. Although Chapman put yourself out there, was confident from her back- and if you’re not comfortable with ground in technology that that, then you’re not going to be 501cTech could fulfill non­ a very good boss. You’ll be too profits’ critical need for tech focused on making sure everyone support, board members likes you. At some point, you have questioned whether chari- to go outside your comfort zone. RISK table organizations would I don’t think you can perform at a pay for its services—and if high level in any part of your life if 501cTech, a nonprofit itself, you’re not willing to take risks. AND could even deliver them. “I told my board, ‘We have to jump off On Risk and Ethics: this bridge, but I’m not doing Your personal integrity and your it alone,’” says Chapman. “I organization’s integrity are really made them all stand up and critical. If those are compromised, WrittenREWARD by Amanda Chalifoux and Simone Silverbush | Photography by Don Hamerman say that they would jump, too. they’re extremely hard to repair. I would go first, but they had Ask yourself, does this conflict We spoke with four alumni CEOs of high-performing companies about to come with me.” with my values? Am I compro- Since that leap of faith mising my agreement with my their approach to risk. Get inspired to step outside your comfort zone. in 1999, 501cTech has helped users or customers? You should hundreds of nonprofit orga- avoid any risk that’s ethically nizations fulfill their missions questionable. Successful leaders are thoughtful risk takers. had anticipated. When it doesn't, they adjust through technology assess- ment and planning, out- On Being Bold: They understand that placing studied bets on accordingly, rather than let ego and momentum sourced IT services, and other When I moved from the Bay Area an uncertain future—identifying innovative drive them to double down on a losing course tech initiatives. “Now we’re to Washington, DC, I didn’t have a moving from building technol- job. I had about a month’s worth ways to do things and breaking new ground— of action.” ogy infrastructures to optimi- of savings and a friend I could is the only way their companies will grow. Columbia Business spoke with four zation, like making the most stay with. I got a job in three “What sets great leaders apart is not alumni CEOs of high-performing companies of cloud computing,” says weeks. I went to business school Chapman, who received the without a full understanding of always the risks they take but how they take about their approach to risk taking—the prestigious Exponent Award exactly what was involved, but them,” says Daniel Ames, the Ting Tsung and unconventional decisions that paid off, the from the Meyer Foundation in I knew I wanted to do good, and Wei Fong Chao Professor of Business. “They risks they avoid, and why a willingness to take 2008 for vastly increasing the I had an interest in technology. I impact of her organization’s never would have predicted that move ahead with their eyes open, monitoring chances is critical for success. Here’s what work. “We’ve been successful, my life would come together the the world to see if it unfolds in the way they they had to say. but in the technology world, way it has. But following your nothing ever stays the same.” passion pays off.

8 Columbia Business / Spring 2014 gsb.columbia.edu/magazine 9 Michael Diamant ’93 Cofounder and CEO, Skip Hop

Michael Diamant has never on, we decided to apply our been afraid to try something design approach and philoso- new. He had already started phy to as many products as we Jennifer Vaughan Maanavi ’00 two dot-com businesses (with could. That said, we only make Cofounder and CEO, Physique57 no background in technology) something if we are confident it when he and his wife—new will sell. Going into new catego- parents frustrated by the glut ries is scary because there’s so Within a week of finding out that On Hiring Risks: of overly cute, poorly designed much to learn—it’s the harder her favorite exercise studio—an I love taking risks— baby gear—decided to create a way to grow your business. Upper East Side venue featuring that’s how companies functional and attractive diaper But those are the risks that we a barre-based workout devel- grow—but I’ve never bag. “We looked at companies take a lot. oped by a professional ballet taken a risk with hiring. If you like Dyson and Simple Human dancer—was closing, Jennifer hire someone who you aren’t that were making everyday On Going Global: Vaughan Maanavi ’00 modeled sure upholds your core values, items like kitchenware and For a relatively small company, out the finances of opening a they can wreak havoc on the vacuums more functional and we have quite a global opera- new studio, secured a loan, and whole culture, especially when contemporary,” says Diamant. tion. We have eight full-time teamed up with a top instruc- you have a collaborative, team- “We wanted to bring that same people in China and a distribu- tor. “I knew that so many more oriented company like ours. ethos to baby products.” tion center in Shenzhen as well people could benefit—and that That first bag—which as two in the United States. Our I had the skills and the passion On Her looks more like it totes iPads suppliers in China are criti- to build the business,” says Unconventional Team: than Pampers—generated cally important members of Maanavi, who left a successful We have a nice blend of tra- more than a million dollars in our global team. While other career on Wall Street to focus on ditional business people and sales the first year. Nine years small companies that make the new venture. “It was risky, creative people—dancers, sing- later, Skip Hop is a global busi- things in China are comfort- but in my mind it was a no-fail ers, musicians, even a come- ness encompassing crib bed- able staying far away from opportunity.” dian. I believe that performers, ding, activity gyms and luggage the actual production, we feel A year later, in 2006, or anyone who likes to perform, for toddlers, a bottle-drying it’s critical to have our own Physique57 opened at 24 W. have natural empathy and are rack that won an International team on the ground and avail- 57th Street to rave reviews, intuitive about client service. We Design Excellence Award, and able at all times. We embrace overbooked classes, and wouldn’t be the same company more—with each product globalization. celebrity clients. Today the without them. embodying the brand’s signa- company also has studios in ture modern aesthetic. “We On Being the Dumbest Scarsdale, the Hamptons, Los On Inviting the were among the first compa- Person in the Room: Angeles, and Dubai; a popular nies [in baby gear] to recog- book, The Physique 57 Solution: Risk of Change: There are entrepreneurs who nize this contemporary and The Groundbreaking 2-Week I love this Charles Darwin quote: are intimidated by smart peo- more functional component,” Plan for a Lean, Beautiful Body “It’s not the strongest of the spe- ple and need to be the smartest Diamant says. “We’re never (Grand Central Life & Style, 2013), cies that survives nor the most person in the room; I like being afraid to take risks.” award-winning DVDs, and, most intelligent that survives; it’s the the dumbest one, where people recently, accessible-from- one that’s most adaptable to are talking circles around me— anywhere online Physique57 change.” Every boss wants to On Breaking that’s how I know we’re get- classes. “The good thing about hear, “How can I help?” and “I’d ting somewhere. If you want New Ground: a client services business is love to be involved.” Period. End In the consumer to do something complex that that people vote with their feet,” of story. We all know that change products business, requires expertise in many dif- Maanavi says. “We know very is inevitable, but for some rea- a lot of companies ferent areas, team up with as quickly if something is working, son it’s often hard for everyone make one thing really well but many people as you can who so we can be nimble.” to accept. don’t extend their brand. Early are smarter than you are.

10 Columbia Business / Spring 2014 gsb.columbia.edu/magazine 11 Michael Gould ’68 Former Chairman and CEO, Bloomingdale’s

Michael Gould attributes Healthy On Going With His Gut: his remarkable success at When you’re looking Bloomingdale’s to a will- at merchandise that’s ingness to take one risk in coming out, there’s no particular. “I took chances research; you just need to have 2.0 bay Amand Chalifoux and Simone Silverbush | Illustration by Parko Polo on people who were maybe a gut feeling about it. I think not quite ready for a job, but Steve Jobs put it best: “The I hired them and gave them Living customer doesn’t know what the support they needed to they want.” The same is true for grow,” says Gould, whose new business—you do as much 22 years as chairman and research as you can about a Start-ups in the health It’s a new era for healthy living. how well you slept, and other physiological processes, with little effort or CEO marks one of the lon- new location, but the rest of it is A start-up called Hapilabs has conscious thought. gest CEO stints in retail your gut feeling. I think taking and wellness space are created an electronic fork that Melissa Wingard-Phillips ’13 (EMBA), an advisor to health start-ups, history. (He stepped down prudent risks is one of the most tracks how quickly you eat and managed a crowdsourcing campaign this winter for one of her clients, Atlas, in February.) “There’s not pioneering innovative important things a CEO can do. lights up when you’re eating too which will release its hotly anticipated fitness tracker later this year. The much you can’t get within ways to boost your fast. McDonald’s plans to incor- device, worn on your wrist, not only tracks your reps and how many calo- 10 city blocks of Macy’s or porate more fruits and vegetables Bloomingdale’s or Saks,” O n Always MoVING health and happiness. ries you’ve burned but also uses sensors to determine which exercises you’re says Gould. “Ninety-five per- Forward: into its menu over the next few doing. “This fitness tracker puts everything else to shame,” Fast Company cent of it you can get some- There’s a Chinese proverb that years. Nike is developing shoes that automatically track steps. Google offers raved in January. where else. The only real dif- says that even if you’re on the its employees an on-site ergonomic center. “Today people are more inter- Another proponent of wearable tech, Switch2Health (S2H), inspires ference is the people.” right track, you’re going to get ested in living healthier lives than ever before and are more aware of the participants with rewards. Users of the company’s activity-tracking Gould led Bloomingdale’s run over if you just sit there. dangers of not doing so,” says Omar Haroun ’12, the chief revenue officer at ­wristband—or other leading health-tracking devices like Nike’s Fitbit— through its greatest period In business, you’re always Greatist, a health media start-up. receive a code after 15 minutes of activity that can be redeemed for gift of transformation and evolving, and some businesses Columbia Business talked to several alumni whose companies are finding cards from Amazon, iTunes, and other popular retailers. “Rewards are key,” growth, taking the helm evolve faster than others. But new ways to promote health and wellness. Here are four trends to watch— says Goutham Bhadri ’09, S2H’s vice president of business development. just after the company it’s about newness, it’s about and take advantage of as part of your own healthy living. “Pretty soon, we’ll “Changing how people look at fitness—from a drain to something they actu- went bankrupt in 1991. He nurturing things, it’s about no longer ask if people are tracking their health,” says Haroun, “but rather, ally look forward to—really helps increase participation.” expanded Bloomgindale’s taking risks on both people in a world where everyone is keeping tabs on their health and fitness, what Start-ups in the quantified-self space are also finding innovative ways from 16 stores mainly in and products. innovations are next?” the East to 37 stores across to help people with chronic diseases. Bluestar, for example, is an FDA- the country—and approxi- On Which Companies approved digital health product that is prescribed by a doctor for people with mately $3 billion a year in You, Quantified type 2 diabetes. It provides patients with personalized, real-time coaching— revenue. But looking back, New MBAs Should Risk So long, food diary. Innovations sprung from the quantified self movement— and updates their doctors so that they can optimize each treatment regimen. it’s the educational train- Joining: a dazzling number of devices, apps, and other technologies—allow you to “As the world begins to amass patient-centric data, it’s becoming ing programs offered to all Pick an organization that track and analyze how many calories you eat, the number of steps you take, increasingly important to do more than just collect or share it,” says Bloomingdale’s employ- you’re passionate about that ees that makes Gould most really believes they have a proud. “I really believe I gave responsibility to help you grow people here the opportu- in scope. I think that’s what nity to be more than they Bloomingdale’s stands for and thought they could be,” what I’ve always believed in, and Gould says. “That’s what I think that’s why we continue being a CEO is all about.” to get the best talent.

12 Columbia Business / Spring 2014 gsb.columbia.edu/magazine 13 “We want to expand access to mental healthcare, increase the relevance of Chris Bergstrom ’08, chief strategy and commercial officer at the patient-provider match, and integrate mental health into our con- Pretty soon, we’ll no health, and they trust WellDoc, which created Bluestar. “We must meaningfully use versations about overall health and wellness,” says Thompson, who was our brand,” Haroun the information.” chosen by GE Ventures and Start-Up Health Academy as a “Healthcare longer ask if people says. “What’s next start-ups will offer extra programs that elevate the employee experience, Transformer” last year. is providing people and more established companies are finding that these programs are fairly Care from Anywhere Since physicians must obtain multiple state licenses and adhere to dif- are tracking their health, with products and easy to implement and have tremendous impact on employee satisfaction.” Don’t feel like going to the doctor? Soon you may be able to skip ferent state laws to practice telemedicine across state lines, Talk Session’s services that help Exubrancy’s offerings range from traditional group activities—yoga and the waiting room, not to mention the ride to the doctor’s office. online portal is currently open only to practitioners and clients in New York. but rather, in a world them put their desire meditation workshops, catered lunches, team-building retreats—to hap- While rural hospitals are already accessing expert care via tele- “We can’t scale healthcare efficiently without changing regulations,” says where everyone is keeping to live a healthier life penings you don’t usually associate with the office: sky-diving outings, medicine—technology that enables doctors to care for patients Thompson, who, in September, made a case for updating outdated policies into action.” pumpkin-carving contests, and a snack break with hand-torched s’mores. remotely—start-ups are finding ways for everyone to benefit. at a White House conference on breakthrough technology in behavioral tabs on their health and The company “The sky’s the limit,” says Wilkes, who launched Exubrancy while still a stu- ZipCare, founded by Steve Weissblum ’08, connects healthcare. “In this case, technology has outpaced regulation.” has a number of dent at Columbia. As companies grapple with increasing healthcare costs, patients to participating primary care doctors via an online In the meantime, the company is working with existing markets fitness, what innovations offerings in the pipe- employee wellness also translates into big savings: a more productive work portal. Patients can get a doctor’s advice on common ail- nationwide to make them more efficient. Talk Session is enabling residents line and recently force. “Healthy people have fewer sick days and tend to be happier and easier ments like a rash or pinkeye—without getting out of bed. at an inpatient rehabilitation facility in Connecticut, for example, to receive are next? –Omar Haroun ’12 introduced Parcel, a to work with,” says Wilkes. “We offer access to a physician for less than half the remote treatment from their New Haven psychiatrists via tablet-based monthly subscription Goutham Bhadri ’09 of S2H also sees great potential in the employee cost of a traditional doctor in less than half the time,” video twice a week—tripling their typical number of weekly sessions. box of hand-selected wellness space. While S2H initially focused on the consumer market, over Weissblum says. The fee-for-service site, which is in healthy living products related to Greatist content. (Think new organic tea the past few years it has expanded its focus to employee health and wellness. beta and will launch on several college campuses Beyond Expert Advice Online and spice samples, environmentally friendly dish soap, fitness gear—and “We think that if a company really wants to get its employees as healthy as this fall, is an online version of the retail clinics that As anyone who has Googled “antioxidant” or “omega 3 fatty acid” knows, everything in between). “Ultimately we don’t see our future as just being a possible, there’s a massive opportunity to scale to a global level,” Bhadri says. have recently sprung up in pharmacies. To expand there are hundreds of sites touting expert health recommendations. To media or content company,” says Haroun. “We believe that what’s missing In 2011, S2H launched the first phase of the Starbucks Challenge the scope of ailments ZipCare can treat, Weissblum stand out from the crowd, health media start-ups are developing niche con- from this space is a product or service that enables people to live healthier Workplace Walking program to a few hundred Starbucks employees in hopes to partner with companies developing diag- tent and pumping up opportunities for users to engage with their brands. lives by providing them with more than just information.” Seattle. The more participants walked—measured by a custom-branded nostic apps and devices—like an attachment that Take Greatist, a healthy living site whose friendly, informative articles Starbucks S2H pedometer—the better rewards they were able to redeem will turn an iPhone into an otoscope, the tool doc- on fitness, health, and happiness attract more than three million visitors Employees Who Are Healthy, Happy—and Productive from the Starbucks S2H Challenge website. The program was so successful in tors use to diagnose ear infections. a month—primarily via social media. Written for the young and “young at Community gardens, electric cars, sleep pods, healthy meals prepared by raising participants’ levels of activity that plans are in the works to offer the Other start-ups are harnessing telemedicine’s heart,” Greatist’s philosophy is that “you don’t have to be the greatest all on-site chefs, an on-campus ergonomic center, even a chief happiness offi- challenge to Starbucks employees nationwide. potential to connect patients with specialized care. For the time, just a ‘greatist’ who makes healthier choices some of the time,” cer—by now you’ve probably heard about some of the perks Google offers “Typical engagement in employee wellness programs is about 25 percent, Melissa Thompson ’11, that means getting patients the men- says Omar Haroun ’12, the company’s chief revenue officer. “What makes its employees. As tech firms lure newly minted MBAs away from Wall Street, but we’re seeing engagement rates of 40 percent in most of our programs,” tal healthcare they need—and removing the stigma associated with mental us different is that even though our content is written in a fun, relatable traditional companies are looking to lessons from Silicon Valley to compete says Bhadri. “It’s a tremendous shift in the mindset of people who are part of illness. “In the United States, about 90 million people are underserved by way, it’s also extremely high-quality.” Every fact is cited by a scientific for top talent. the program. Once you get into the habit of regular exercise, even just a small mental healthcare,” says Thompson, whose start-up, Talk Session, uses study, and multiple experts approve each article before publication. “Thanks to companies like Facebook and Google, firms in every industry amount a day, it leads you to dream of bigger health ­achievements.” the first real-time video, HIPAA-compliant mobile technology to facilitate Last year, Greatist’s audience surpassed the number of readers of Self are realizing that they need to show people they care,” says Liz Wilkes ’13, online counseling sessions. The company also uses a proprietary online magazine’s digital edition. “We’re ahead of the curve in that we have one whose start-up, Exubrancy, designs custom in-office programs to boost Is your company an innovator in the health and wellness space? We’d love to hear from diagnostic tool to help match patients with compatible practitioners. of the largest populations of consumers who are really interested in their employee engagement and productivity. “There’s an expectation that you. E-mail us at [email protected] or tweet us at @Columbia_Biz.

14 Columbia Business / Spring 2014 gsb.columbia.edu/magazine 15 wtf win Behind Written by Jen Itzenson the Buzz Jon Steinberg ’03, president and COO of BuzzFeed, is an innovator in an ever-changing industry.

Framed on the wall behind Jon Steinberg’s desk is his “take- covering everything from politics to breaking news and foreign down piece”—the critical eviscerating that almost everyone policy. A glance at its homepage on a given day might yield an who reaches the heights of the media world inevitably receives. article on an entertainment lawsuit, an on-the-ground report The Adweek article, published in 2011 after a late-night meeting from the protests in Ukraine, and a feature on a campaign at a rooftop party in Cannes, portrays Steinberg as a hyperac- for domestic surveillance reform—as well as a few cat videos. tive, constantly pitching salesman, the “anxious cocaine” to Though there is an increasing proportion of hard news, BuzzFeed BuzzFeed cofounder Jonah Peretti’s “giddily nervous marijuana.” remains heavy on lists: the 25 Most Reblogged Places of 2013, or The article goes on to mock BuzzFeed itself, including its use the 10 Best Dog Vines. The branded content—written in a similar of branded content, and speculates that the five-year-old site vein as the lighter articles and lists—is set off against a pale might eventually “do well, or not” with advertisers and readers. yellow background and sponsored by advertisers like Samsung “I put the story on the wall because it annoyed me so much and Edy’s Ice Cream. omg at the time,” says Steinberg, who was named a Media Maven by rival publication Ad Age the following year. “It reminds me of Church and State how thin-skinned I was back then—and of how far we’ve come.” Though some critics have questioned the blend of news and As of the end of 2013, BuzzFeed was attracting 130 mil- branded content, Steinberg describes BuzzFeed’s model as no lion visitors a month. It has 400 employees, most of whom are different from that of a TV network whose reality shows help based in the company’s New York headquarters, just across the support its news programs. The division between news and street from the Flatiron Building. When Steinberg joined in 2010, paid content is reflected in the layout of the BuzzFeed office BuzzFeed was a 15-person shop with about 6 million monthly itself, with editorial on one side and business the other. “We visitors and very little cash coming in. Today, branded con- have a church-state divide,” Steinberg explains. “We’re just tent—articles, videos, and lists created by BuzzFeed staffers and like a newspaper: our writers have complete editorial indepen- sponsored by advertisers—accounts for 100 percent of its rev- dence to write reviews of technology products and to criticize enue. According to a Bloomberg news report, the company had companies that include our advertisers.” Ben Smith, formerly a projected $60 million in sales in 2013 and is on track to double of Politico, is its editor-in-chief; Mark Schoofs, a Pulitzer Prize– that in 2014. winning journalist formerly of ProPublica and the Wall Street BuzzFeed is a social news and entertainment company, com- Journal, was hired in late 2013 to head BuzzFeed’s new investi- LOL bining popular viral content on the web with original reporting gation team.

Photo: Getty Images gsb.columbia.edu/magazine 17 fail

BuzzFeed’s expansion into hard news One of the highlights of his early, pre-­ is particularly notable given the cur- Columbia career was the two years he spent rent state of the media industry. In a working for Jerry Speyer ’64, cofounder of December 2013 New York Times article real estate company Tishman Speyer and about New York magazine’s decision member of Columbia Business School’s to cut back to two issues a month, “All I’ve Board of Overseers. Steinberg regrets Connecting Research to Practice—At the Very Center of Business the media writer David Carr cited leaving Speyer as soon as he did. “I BuzzFeed as one of the reasons the wish I’d been working in the real 46-year-old magazine was strug- estate industry with Jerry” during the gling in an increasingly competi- done is make slump before the 2000 bubble, he says. tive space. Steinberg, for his part, “Tishman Speyer continued to thrive. was not surprised when he learned And Jerry was a tremendous mentor, of New York’s decision. That same mistakes and one of the most influential mentors of All Hands on Deck week, he had watched a 60 Minutes ’03 my career.” feature on Jeff Bezos in which the After graduating from Columbia, founder of Amazon stated his belief that get lucky.” he went to Booz Allen Hamilton. “I sort Individuals who view their “companies come and go” and that even of meandered and tried different things,” colleagues as different from “the shiniest and most important [compa- –Jon Steinberg Steinberg says. He enjoyed a later stint at nies] of any era—you wait a few decades and Majestic Research, which specializes in research themselves focus less on they’re gone.” through data mining. “I loved that place, but then I getting along and more “That’s the way disruption occurs,” Steinberg says. got stuck on Wall Street and didn’t find my way out until I on getting to work. “You get a decade, and then you really have to reinvent your- started at Google,” he says. At Google, he was a strategic partner self to get beyond that. Businesses that face fierce competition need to development manager on the company’s Small Medium Business Partnerships innovate. Should a print magazine that didn’t move online adequately and team, a position he credits with putting his career back on track. “That took didn’t innovate in their ad products quickly enough survive?” BuzzFeed me back into start-ups, into technology—all of the stuff that I liked. And took a very different route than traditional news sites, he notes. “We chose through a couple more bends in the road, I found my way to meeting Jonah.” an ad revenue model that everybody mocked at the beginning.” In his view, That asw four years ago, when Steinberg was working for Polaris Partners, branded content harkens back to the great storytelling of famed ad exec a venture fund. He and a partner opened their New York office, Dogpatch David Ogilvy. “Both are story-driven and speak to the aspirations of what Labs, which offered space to start-ups. BuzzFeed was one of many deals the the brand or product stands for,” says Steinberg. He and Peretti experi- fund considered; Polaris passed, but Steinberg was intrigued. “I had seen mented with the form, met with clients and agencies, and experimented what Jonah and Ken Lerer had built at Huffington Post, and I knew they would some more. “Now everybody’s trying it.” do something incredible,” he says. “And they took a bet on me.” He joined With BuzzFeed, Steinberg—who cites Bruce Greenwald’s class on the BuzzFeed a couple of months later. economics of strategic behavior as the most influential course in his edu- Steinberg’s passion for innovation is as strong as ever. Last fall, BuzzFeed cation—was determined to compete and thrive. The site was founded on announced its partnership with Duolingo, a language-learning app: in the notions that technology is essential to a media company’s growth and exchange for the app’s free language lessons, users translate BuzzFeed’s success and that social media generates traffic. Most of the stories into their native language. That came shortly after site’s readers don’t access content through its home­page, BuzzFeed announced a partnership with one-time media but through their friends’ Facebook pages and Twitter Five Twitter disrupter CNN to launch a jointly branded YouTube channel accounts—and that’s fine with BuzzFeed. Steinberg calls with clips that are designed, like all BuzzFeed creations, to Facebook the new cable system and BuzzFeed the new Feeds be shared. “CNN has great content from around the world,” Viacom or Time Warner. Jon Steinberg Steinberg says. “BuzzFeed brings the sentiment to remix it “We recognized that social media would be how every- Follows for for our social mobile audience.” Partnerships can be hard, one got all of their information—their hard news, their Tech News he concedes; BuzzFeed looks for opportunities in which entertainment, everything,” Steinberg says of BuzzFeed’s what each partner brings to the table is “simple, clear, and innovations. “And we also created a new kind of content— almost obvious.” 1 lighthearted animals and memes and what people some- @peretti Even amid the new partnerships and expansions, times call listicles. It’s a new kind of media that really gen- BuzzFeed is planning to increase its international news cover- erated a lot of engagement and interest from people who 2 age this year. While newspapers are shutting down their far- are 18 to 34. They’re 60 percent of our audience, and that’s @techmeme flung outposts, BuzzFeed has found a way to extend its reach a much bigger youth audience that any traditional media across the globe. This doesn’t surprise Steinberg. “The Internet company has.” 3 allows us to do more with less, to be more nimble and con- @carlquintanilla nected as a company.” Mistakes and Luck Meanwhile, BuzzFeed’s sponsored videos continue to Such well-orchestrated growth might lead you to think 4 reach new heights. A few months ago, its most successful that Steinberg’s own trajectory was smoothly planned and @peterlauria3 sponsored video ever—“A Cat’s Guide to Taking Care of Your executed. He insists this was not the case. “All I’ve done is Human,” brought to you by Tidy Cats—received 3.8 million 5 make mistakes and get lucky,” he says. “I try to give people page views within a week. “Almost four million page views,” @recode advice on how to plan their careers because I made so many Steinberg says, marveling at the success of a business model mistakes with my own path.” that many thought would never work. “That’s insane.”

18 Columbia Business / Spring 2014 LOL IDEAS AT WORK IDEAS AT WORK

LEADERSHIP

MANAGEMENT

ORGANIZATIONS Do Diverse Teams Work Harder—

Katherine Phillips and Better? is the Paul Calello Professor of Leadership and Ethics in the Management Division Individuals who view their colleagues as anticipate going into a diverse environment. at Columbia Business Over the course of three experiments, School. different from themselves focus less on getting the researchers told participants they were along and more on getting to work. part of a study about group decision making. “Diverse environments Participants filled out a survey about their allowed people to focus READ THE RESEARCH political attitudes, and were told that they Loyd, Denise Lewin, Sizing up coworkers and colleagues is a would be writing, and that they would on the task instead of Cynthia S. Wang, normal, fairly automatic, and sometimes then be speaking face-to-face with another Katherine W. Phillips, their social relationship.” and Robert B. Lount Jr. unconscious part of working. According participant. All the participants were asked “Social Category Diversity to new research from Professor Katherine to read a murder mystery and decide who Promotes Premeeting Phillips, that everyday act—and in they thought committed the crime, and how Elaboration: The Role particular, whether you view yourself as confident they were about their solution. of Relationship Focus.” Organization Science 24, mostly similar to or mostly different from Before the face-to-face meeting, each partic- no. 3 (2013): 757–772. your colleagues—can have major implica- ipant learned the partner’s political affilia- with political perspective, so one might not more evidence they’d laid out—the more because individuals in a diverse group are tions for how well you each prepare for and tion and opinion about the murder, and was expect political affiliation to matter at all for likely their team was to solve the crime. more effective at processing the task at hand. tackle the work you share. asked to write a statement supporting his or this situation. This is one of the powers of Phillips acknowledges the irony of That also means managers need Phillips’s past research hinted that her own opinion in preparation for the face- similarity and difference—it usually matters these findings in a world where so often to attune themselves as much as ever to people might be less worried about getting to-face meeting. (The researchers made sure for good or for bad. questions about diversity and diversity the workplace culture they create, and in along with those different from them and that partners’ opinions differed, regardless In the second study, prior to the writing training center on the assumption that particular the balance they strike between more preoccupied with of political affiliation.) exercise the researchers told some partici- organizations should foster strong relation- social relationships and focusing on work. preserving relationships In the first of these studies, once pants that having a positive interpersonal ships among diverse staff. “But even in a “Many organizations just assume that creating Many organizations just with those most like them. participants wrote their statements they relationship with their partner would post-study survey people told us they really wonderful social relationships among staff assume that creating “We started with the idea were told the experiment was over, without help smooth interactions and be helpful were more concerned about getting along is a boon,” Phillips says. “But that’s short- that diversity impacts actually meeting their partner. Why lead in solving the murder mystery. They told with the other person when the person was sighted. It’s better to consider how much wonderful social relationships individual cognition— people to anticipate a meeting that would other participants that concentrating more similar to them than when the person was fostering social relationships will help or hurt. among staff is a boon. But before we enter a meeting, never happen? Because the researchers on the task than on interpersonal relation- different,” Phillips explains. “Those in a What is really the optimal level of connec- that’s shortsighted. It’s better we anticipate by asking needed participants to believe—and act— ships was most important for a productive homogeneous group put much less effort tion? Perhaps what is naturally fostered in ourselves, ‘Will these as if they really were about to meet, as they meeting. As the researchers hypothesized, into the task at hand in part because they homogeneous environments is too much— to consider how much fostering other people be like me would at work. The researchers assessed participants who focused more on relation- were more interested in avoiding conflict. it gets in the way of task focus.” social relationships will help or will they be different?’” participants’ statements to determine ships wrote less detailed and thoughtful Diverse environments allowed people to Race, gender, and political affiliation are she explains. Phillips pre-meeting elaboration, a measure of how statements, while those who focused on the focus on the task instead of their social among the clearest signals of social category or hurt. and her co-researchers, deeply a participant was thinking about task wrote more detailed and thoughtful relationship.” difference. Do other, less historically charged Denise Lewin Loyd of the the problem at hand: Are they considering statements. This shows that individuals in These insights matter for group social categories offer a similar opportunity University of Illinois, Urbana-Champaign, multiple perspectives? Are they giving both diverse and homogeneous settings can outcomes—if people aren’t preparing before to focus teams on task? “It’s tricky, but I think Cynthia S. Wang of Oklahoma State multiple reasons? Are they considering be nudged to focus more and less on the they go into a meeting, their ability to be it’s malleable,” Phillips says. “While people University, and Robert Lount Jr. of Ohio multiple suspects? How much thought task or the relationship. It also confirmed effective is hindered, Phillips points out. And, in an organization may look the same, they State University, wanted to understand the goes into preparing for the meeting? The for the researchers that relationship even when people are in the same social may not share the same perspectives. Plus, mental processes that occur before individ- researchers found that both Democrats focus explains why similar people weren’t category, they can have different perspec- people do vary in their perceptions of how uals enter a group environment as a way to and Republicans wrote considerably less elaborating much. tives but—as the researchers found in the diverse or homogeneous any given group explain what happens later when they then detailed statements when they antici- In the third variation of the study, the study—similar people are not as effective is—which means it is possible to shape how MORE IDEAS sit down to work together. The researchers pated meeting with someone of their own pairs really did meet after writing their in using their differing knowledge to benefit a group perceives itself—diversity welcomes Listen to Katherine Phillips found that, in fact, when individuals political party than when they anticipated statements, combining efforts in an attempt the team. Phillips’s message for managers: more diversity. That suggests we can try to discuss her research in this anticipate going in to a homogeneous meeting someone of a different party. This to solve the murder mystery. The more the diversity can make your team more effec- get the benefits of diversity out of all contexts Columbia Ideas at Work podcast: bitly.phillips- environment, they don’t process informa- finding was striking partially because the team members had individually elaborated tive in its work, both because that diver- because there are always some important podcast. tion as deeply or effectively as when they murder mystery task had nothing to do in their essays prior to the meeting—the sity brings multiple perspectives but also differences amongst us.” •

20 Columbia Business / Spring 2014 gsb.columbia.edu/magazine 21 IDEAS AT WORK AT THE CENTER HEALTHCARE OF OPERATIONS THE IDEA The projected physician shortage can be averted by tapping Sustainable nonphysician medical staff and electronic communications. Research AND Responsible Brief Investing In our new series, a student chats candidly with an established alumni business leader about opportunities, Maxing Out on trends, and career insights. Primary Care

Linda Green is the Armand G. Erpf The Research The Application Professor of the Modern Corporation in the With an aging US population, greater Medical Practice Office Managers, Decision, Risk, and prevalence of chronic diseases, and Operations Managers Operations Division more than 25 million Americans While previous estimates of the and the Healthcare and Pharmaceutical expected to receive health insurance through shortage assumed all primary care practices Management Program the Affordable Care Act by the end of the operate as solo practitioners, only about 18 at Columbia Business decade, many experts anticipate a severe percent of physicians currently practice alone. School. primary care physician shortage on the horizon. Instead, large practices where doctors share Most of these estimates are based on simple the patient load are becoming the norm, and and commonly used ratios, such as one other medical professionals, like nurse practi- READ THE RESEARCH physician for every 2,200 patients. tioners and physician assistants, are increas- Green, Linda, Sergei Savin, and Yina Lu. But Professor Linda Green knew from ingly being used to provide care that doesn’t “Primary Care Physician previous research that the number of patients require a physician. Practices are also using Shortages Could Be cared for by a physician—the patient panel more electronic communications—including Eliminated Through Use size—depends on not only who the patients answering non-urgent patient questions, such as of Teams, Nonphysicians, and Electronic are—for example, their ages and prevalence of how to treat a common cold or a pulled muscle, Communication.” Health chronic disease—but also how physicians prac- or even managing routine aspects of a chronic Affairs: Vol. 32, No.1 tice and the desired level of access to timely condition—through personal health records and (January 2013): 11–19. medical care. Green, along with Sergei Savin of e-mail, so that office visits aren’t necessary. Wharton and doctoral student Yina Lu, applied a Green and her co-researchers demon- queuing model they developed to create a more strated that combining the pooling effects realistic estimate of the predicted primary care of physician teams with off-loading demand physician shortage based on new patient care to nonphysicians and utilizing the less time- models that are already being implemented by consuming process of answering patient ques- many practices and assuming that 80 percent tions electronically has the potential to increase THE of patients can get same-day or next-day the number of patients per physician from the appointments. current average of about 2,200 to up to 5,000, while assuring timely access to appropriate care. The researchers found that in order to totally eliminate, in the aggregate, the predicted primary care physician shortage, patient panels just need two physicians who can cover for LONG VIEW each other when a patient’s primary physician Introduction by Dan Rosen | Photography by Don Hamerman 1 2200 1 5000 isn’t available and 20 percent of the total care PHYSICIAN PATIENTS PHYSICIAN PATIENTS provided by nurse practitioners or addressed by With the current structure and With structural and methodical changes electronic communications. • In our first At the Center Q&A, Uzayr Jeenah ’14 chats with typical methods of medical offices, the to medical offices, Green and her team current average patient panel size is argue that the patient panel size could Mary Jane McQuillen ’07 (EMBA) of ClearBridge Investments 1 physician for every 2,200 patients in increase to 1 physician for every 5,000 To subscribe to the Columbia Ideas at Work monthly the United States. patients in the United States. e-newsletter, or the semiannual print issue, go to about the real returns of investing in a sustainable future. gsb.columbia.edu/ideas-at-work/subscribe.

22 Columbia Business / Spring 2014 gsb.columbia.edu/magazine 23 AT THE CENTER OF

Sustainable AND Responsible Investing

or many investors today, financial returns investments based more on moral guidelines than analysis. Many investors are only part of the picture. They also want still respect the ideals of socially responsible investing, but the investment- to make a positive social and environmental return perception was lagging. After a series of focus groups and surveys, we in the investment manage- impact—to align their individual gains with ment industry found that our clients associated ESG investing with a more broader goals like improving energy effi- long-term focus. From that perspective, we believed the analytical approach ciency, ending unfair labor practices, and of integrating relevant ESG factors into investment research was reasonable. reining in oppressive regimes worldwide. Among investors there is a growing belief that these investments are good Why do you think ESG investing is on the rise, both in the for both their bottom lines and society. United States and around the world?

According to the Forum for Sustainable I think there are a number of reasons. One is that investors are increasingly and Responsible Investment, the number interested in both their financial returns and in making a positive impact. of assets invested in the United States They see this is possible from the increasing availability of ESG products based on socially responsible factors with long track records of solid performance. We also emphasize using ESG considerations to contribute to the analysis around risk mitigation or return jumped 22 percent between 2009 and 2011 to more than opportunities. That’s supported today by expansive academic literature $3.3 trillion—or more than one out of every nine dollars under around the value of integrating ESG into the investment process. Fprofessional management. “I believe that people With this feature we are inaugurating our At the Center Mary Jane McQuillen ’07 (EMBA) Q&A series, where Columbia Business invites a student or young When did you begin your career in ESG investing and talks with Uzayr Jeenah ’14 at can combine their ClearBridge Investments. graduate to talk candidly with an established alumni business what attracted you to it? values with their career leader about opportunities, trends, and career insights. , My first exposure to environmental issues and societal impact was when I goals—opportunities for Here we asked Uzayr Jeenah 14, a native of South was a national park ranger in the early ’90s. This asw before the transition Africa and active participant in the School’s Social Enterprise from single-hull to double-hull oil tankers, when there were still a num- McQuillen and Jeenah were also doing this are even more Program, to chat with Mary Jane McQuillen ’07 (EMBA), head of ber of small oil spills near harbors and ports. I was asked to help clean up joined by Neal Austria ’09, vice available today than a few of those spills near the shores. This was a memorable—and exhaust- president and research analyst ClearBridge Investments’ Environmental, Social, and Governance ing—experience: manually scooping up massive volumes of heavy oil at for consumer discretionary, who when I started.” (ESG) Investment Program. Jeenah spent last summer working spoke about how difficult it can dawn, before the sun rose and melted the oil into the soft sand (which would be to determine whether certain –Mary Jane McQuillen ’07 for Schulze Global Investments in Ethiopia, a double bottom line– make it very difficult to pick up), and before the seagulls ingested the oil firms are good actors by ESG focused emerging markets private equity fund. McQuillen works or the tides pulled it back out to sea. I remember thinking that the damage criteria. “There are nuances to everything,” he said. with ClearBridge’s institutional and high-net-worth clients to could have been mitigated if there were stronger regulations and that more integrate ESG investing into their stock selections. She also sits resources needed to be invested in this area. Then, henw I studied finance in college and at Columbia, I realized that on the board of the Investor Responsibility Research Center and capital markets and the private sector could have a tremendous influence in is a member of the Sustainable Investment Security Analysts setting business standards, public policy, and investment flows. I officially Committee at the New York Society of Security Analysts, among began working on ESG portfolios with ClearBridge 17 years ago (though it other ­positions. wasn’t called ClearBridge then). Here are edited excerpts from their conversation. I believe that people can combine their values with their career goals— opportunities for doing this are even more available today than when I started. There are jobs in social enterprise, the traditional financial sector, the corporate world, technology, sustainable finance, microfinance, com- Uzayr Jeenah ’14: There are a lot of terms out there for munity investing, green real estate, green product design—the list goes on. what you do. Socially responsible investing; sustainable It’s a very exciting time for new Columbia graduates. investing; and environmental, social, and governance (ESG) investing. Which do you prefer? How long has ClearBridge been involved in ESG investing Mary Jane McQuillen ’07 (EMBA): The nomenclature is something we have and how do you carry out this approach? been discussing in the investment management industry. The older term that most people are familiar with is socially responsible investing. But, over ClearBridge and its predecessor firms established the ESG Investment time, there developed a fair amount of pushback [to this term] from the Program in 1987. We were among the first mainstream investment firms to investor and consultant community. They associated socially responsible recognize—and explicitly offer in our portfolios—the opportunity to fac- investing with below-market returns, low diversification, higher fees, and tor ESG issues into our investment theses and long-term investing views.

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Sustainable AND Responsible Investing

Most of our clients—both institutions and high-net-worth indi­ viduals— can have enormous effects on the environment and on society. That impact are long-term investors who are attracted to our commitment to can be devastating or incredibly beneficial. If we take climate change as an sustainable investing. example, industry is a major piece of the “human activity” that has contrib- We emphasize the investment attractiveness of the stocks we buy for our uted to global warming. actively managed long-term equity portfolios. Our fundamental analysts As active and concentrated shareowners of listed equities, we take the integrate the material and relevant ESG factors into their investment analy- impact of our investments very seriously. We play a role in this by work-

sis—and the quality of their ESG research and company engagement is part ing with the companies we invest in on ESG issues, such as CO2 emis- of their compensation structure. For our eight ESG equity strategies, our sions or human rights. Most of our clients are seeking the so-called double portfolio managers consider ESG factors in the stock-selection process. or triple “return” from their investments with us—financial, social, and environmental.

Are institutional investors able to pursue ESG investments and still fulfill their fiduciary duty? There still aren’t a lot of women in senior leadership positions in finance. What’s the one piece of advice This is a really important question. To help answer it, I worked with our asset manager partners at the United Nations Environment Programme Finance you’d give other women in this field who are looking Initiative and we commissioned global law firm Freshfields Bruckhaus to advance? Deringer to create a legal framework for the integration of ESG issues into One of the top priorities you often hear at conferences like the Columbia institutional investment. Women in Business conference or Women on Wall Street is to find a men- The overall conclusion was that as long as the ESG considerations do tor—and that a predominance of males in leadership positions means women not replace the rigor of the investment selection process, but are used to McQuillen introduced Jeenah to other alumni at ClearBridge “Publically listed will have more difficulty finding one. But I don’t think that you have to have enhance the investment analysis, then such considerations would not be Investments, including Tim Daubenspeck ’99 (center), a female mentor if you’re a young woman. I’ve had more male mentors than director and senior research analyst for information considered a violation of fiduciary duty. The report also states that “inte- corporations can female mentors. Not by my own design, but those were the people I reported technology and communications, and Russell Mahland ’01 grating ESG considerations into an investment analysis so as to more reliably (EMBA), managing director and chief marketing officer. to, and I believe that they treated me as well as my peers. What’s most have enormous effects predict financial performance is clearly permissible and is arguably required important is that you find a good mentor. in all jurisdictions.” This was a significant legal conclusion, as there was not on the environment and much in terms of legal opinion published on this question at the time. on society. That impact What do you find rewarding about this work personally? can be devastating or What is your track record? Do you measure only There are many careers where you can make an immediate impact—animal incredibly beneficial.” rescue, being a doctor or a teacher, etc. Personally, I find the longer-term financial returns? –Mary Jane McQuillen ’07 gratification in the ESG investing space to be rewarding. I believe that many Our goal as investment managers is to deliver long-term, risk-adjusted of the investment decisions our clients make with us today will encourage competitive returns, which we have been pretty successful at over time. We better corporate practices, make a social impact, and lead to more sustain- don’t measure ourselves against a socially responsible investing benchmark; able performance by businesses. we use the general market benchmarks like the S&P 500 or the Russell 3000. We also measure our performance in terms of the impact we have on Are you interested in participating in our At the Center Q&A series? We’d love to hear the public equities we own. As you can imagine, publicly listed corporations from you. E-mail us at [email protected].

New Fellowship Fosters Sustainable Investing Last fall, Columbia Business that advances the field of sustainable to drive capital toward investments School and Morgan Stanley cre- investing,” said Gorman. “Increasingly, that promote sustainable economic ated the Morgan Stanley Sustainable our clients are searching for market- growth. Fellows will conduct supervised Investing Fellowship. Morgan Stanley based strategies that support sustain- research with faculty members and Chairman and CEO James Gorman ’87 able approaches to energy, food, water, participate in an internship at Morgan announced the new program during and shelter, and we are committed to Stanley to gain hands-on experience in the keynote address at the School’s building the next generation of leaders product innovation, thought leadership, annual Program for Financial Studies who will help meet these challenges.” and investment strategy. Conference. The fellowship will give a select “Morgan Stanley is pleased to part- group of Columbia students the James Gorman ’87, chairman To watch the announcement of the program ner with Columbia Business School to opportunity to combine research and and CEO of Morgan Stanley and James Gorman's keynote address, go to accelerate the research and innovation practice to design efforts that seek gsb.columbia.edu/gorman.

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Photo: Lenny Pridatko