Bringing It All Back Home Two Countries

fall 2007

Bringing It All Back Home Two countries. One island. Two classmates. One goal.

Darys Estrella Mordán & Al Leandre, MBA ’02

PLUS: LEADERSHIP BOOT CAMP ~ BO’S LASTING LESSONS

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-power your leaders

As you seek to transition key contributors from functional to general management roles, develop business acumen in your high-potential leaders and keep your organization on the leading edge of today's business trends, look to the Ross School of Business.

Our top-ranked executive programs offer a unique approach to leadership development that can accelerate the growth of your best people and add value to your organization.

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✓ Results-Oriented Curriculum ✓ Real-World Approach ✓ Learn with Outstanding Peers ✓ Rich Portfolio of Services ✓ On-Campus Monthly Format ✓ Global Commitment www.emba.bus.umich.edu www.execed.bus.umich.edu

E-MAIL: [email protected] E-MAIL: [email protected]

LEADING IN THOUGHT AND ACTION

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19 The Great Divide 28 Listen Before You Lead Professor Jeff rey Sanchez-Burks examines Legendary Wolverines football coach Bo cross-cultural diff erences in the workplace Schembechler’s common-sense approach and how these impact Americans’ to leadership is captured in a new book. business relations abroad. Here’s an excerpt on why great leaders must be great listeners.

21 Making Business Work Better for the Poor 32 Leadership Boot Camp At an international gathering, leading Incoming MBA students get a jumpstart experts from the Ross School and the on building their leadership skills. William Davidson Institute explore innovative strategies to alleviate poverty. IN REMEMBRANCE

47 Gilbert R. Whitaker Jr. 1932-2007 Th e Ross School of Business community refl ects fondly on the life and times of its former dean, who died on June 24 A Merger of Equals 21 in Houston. Whitaker brought visionary Two Business School alumni reunite, and leadership to the school as dean from 1979 marry, aft er more than 60 years. to 1990 and to the University of Michigan as provost and executive vice president for academic aff airs from 1990 to 1995.

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3 Across the Board 15 Quote Unquote Dean: Robert J. Dolan Director of Marketing Communications: Dean Robert J. Dolan Ross School faculty Paul Gediman appoints two associate members talk on Editors: Claudia Capos and Deborah Holdship deans… Erb internship the record about links environmental- breaking news and Class Notes and Copy Editor: Fred P. Wessells ists and industry business trends. Designer: Michigan Marketing & Design leaders… Ross faculty Photographers: Morgan Anderson, Eileen Colton, recognized with Philip Dattilo, Scott Galvin, D.C. Goings, awards… Professor Jane Dutton Paul Jaronski, Linn Jones, Steve Kuzma, receives coveted honor… Professor Doug Schaible, Martin Vloet, Tom Weis Dave Ulrich nets lifetime achieve- 16 Alumni at Large Printer: University Lithoprinters ment award… Medical anthropolo- Bringing It All Vol. 38, No. 2: ©2007 gist talks about his lifesaving work… Stephen M. Ross School of Business Communications executives grapple Back Home at the University of Michigan. with industry changes… McInally Th is publication is produced twice a year by Friends Darys the Offi ce of Marketing Communications speaker recounts outreach to down- Estrella Mordán, trodden women in war-torn countries. and made possible through the generosity MBA ’02, and Al of private donations. Leandre, MBA ’02, ISSN 0046-0400 8 Intellectual Capital make good on a mutual vow to help Hispañola. For more information, contact Dividend, Resilient Performance Stephen M. Ross School of Business Professors Karl Weick and Kathleen University of Michigan 701 Tappan, Ann Arbor, MI 48109-1234. Sutcliff e update their research on Selling for managing the unexpected. the Stars Th e University of Michigan Regents: Andy Arvidson, BBA Julia Donovan Darlow, Laurence B. Deitch, 10 Faculty Research ’89, brings a hint of Olivia P. Maynard, Rebecca McGowan, Hollywood to the order Andrea Fischer Newman, Andrew C. Richner, Microfi nance: fulfi llment business. S. Martin Taylor, Katherine E. White; Miracle or Mirage? Ex-Offi cio Member, Mary Sue Coleman, Aneel Karnani presents alternative President, University of Michigan. views on microfi nance. 35 Alumni Activities Th e University of Michigan, as an equal opportunity/affi rmative action employer, Alumni awards complies with all applicable federal and state Investors of Last Resort laws regarding nondiscrimination and David J. Brophy looks at hedge fund recognize service and achievement; reports affi rmative action, including Title IX of the investments in public companies. Education Amendments of 1972 and Section from Worldwide Club 504 of the Rehabilitation Act of 1973. Th e Talent Matters Day; new awards University of Michigan is committed to a policy celebrate outstand- of nondiscrimination and equal opportunity Haitao Li reveals a link between ing alumni clubs; for all persons regardless of race, sex, color, hedge fund manager characteristics a gift from Mark Seigle, BBA ’80, religion, creed, national origin or ancestry, and fund returns. paves the way for the Ross School’s age, marital status, sexual orientation, gender identity, gender expression, disability, or new café. Greasing the Way Vietnam-era veteran status in employment, educational programs and activities, and James Westphal deconstructs the admissions. Inquiries or complaints may be culture of fl attery and favors in 44 Class Notes addressed to the Senior Director for Institutional corporate America. Th e latest news from friends, Equity and Title IX/Section 504 Coordinator, classmates and colleagues Offi ce of Institutional Equity, 2072 Administra- Going Private tive Services Building, Ann Arbor, Michigan Sreedhar Bharath and Amy Dittmar 48109-1432, 734-763-0235, TTY 734-647-1388. 47 Obituaries For other University of Michigan information analyze the resurgence of going- call 734-764-1817. private deals. 48 Alumni Network Update Stephen M. Ross School of Business Pharmaceuticals: Web site: www.bus.umich.edu Addicted to Ads? Puneet Manchanda details side eff ects of pharmaceutical advertising. Cover photo by Steve Kuzma

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113756_Cs3_01_18.indd3756_Cs3_01_18.indd 2 112/19/072/19/07 4:21:354:21:35 PMPM opportunities and the creation of additional programming to encompass aspects of leadership not yet covered. “Ross has long been an innovator in the area of Across the Board leadership development,” she said. “My role is to help enhance that tradition by bringing a focus to what we do and by involving APPOINTMENTS school’s Evening MBA Program from students in creating programming that is 1995 until 1999. Her research focuses on going to make a diff erence.” Dean Dolan Taps the operation of international cartels, the design of competition policies relating to Two on Faculty price fi xing and the interaction between BEDFELLOWS he Ross School has added two new trade policy and competition policy. She Tassociate deans to its leadership team also was the 2004 winner of the Ross Erb Internship Brings this year. Faculty members Valerie Suslow School’s Victor L. Bernard Faculty Award and Sue Ashford have joined colleague for Leadership in Teaching. Environmental Kathleen Sutcliff e on Dean Robert Dolan’s “I hope to take my own experience and triumvirate of associate deans. passion for teaching and use it to con- NGOs and Industry Suslow was named associate dean for tinue strengthening the overall commit- Together degree programs in July, and Ashford ment to teaching at Ross,” Suslow said. assumed her duties as the school’s fi rst Ashford, the Michael and Susan n recent years environmental nongov- associate dean for leadership program- Jandernoa Professor of Management and Iernmental organizations, or NGOs, have expanded their tactics, once focused mainly on infl uencing government policy, to include increasing eff orts to directly impact corporate behavior. For example, World Wildlife Fund and Environmental Defense collaborate with large companies to help them increase profi ts while simultaneously cutting greenhouse-gas emissions. Recently, the Frederick A. and Barbara M. Erb Institute for Global Sustainable Enterprise demonstrated its commitment to furthering the partnership between environmental NGOs and business by launching a new joint internship sponsored by Dow Chemical Co. and Environmental Defense. Over the summer, students will have an opportunity to view corporate social responsibility through the eyes of a Fortune 100 Left, Sue Ashford; right, Valerie Suslow Organizations, has taught at U-M since company and a leading environmental 1991. She also directs the Ross School’s advocacy group. ming last January. Sutcliff e has held the Executive MBA Program and served as Th e new program and the fi rst student position of associate dean for faculty associate dean for academic aff airs from interns, Ali Moazed, MBA/MS ’09, and development and research since 2006. 1998 until 2002. Marc Weatherill, MBA/MS ’09, were According to Dolan, Suslow’s position In her new associate dean position, announced at the Erb Institute’s May is one of the most critical administrative Ashford is responsible for directing the summit on business and the environ- appointments at the school, with its daily overall leadership programming at the ment. “NGOs play a vital role in address- impact on the educational experience of school. Th is includes the Ross Leadership ing complex environmental issues,” said Ross students. “Valerie’s capability of work- Initiative, a two-year series of supplemen- Th omas Lyon, Erb Institute director and ing very eff ectively with students is well tal experiences that enable MBA students professor at the Ross School and the School demonstrated by her outstanding perfor- to develop topnotch leadership skills. of Natural Resources and Environment. mance in our classrooms for more than “Given Sue’s research in the area of lead- “At the same time, the landscape in which two decades,” Dolan said. “We are fortu- ership and familiarity with the faculty, her they operate is changing rapidly, requir- nate to have her talents in this position.” dedication to this task means a great deal ing a shrewd mix of collaboration and Suslow, who has taught at the Ross to our students,” Dolan said. “I am grate- confrontation to increase membership School since 1984, is the Louis and Myrtle ful to Sue for taking on this important and funding, form alliances and change Moskowitz Research Professor of Busi- new responsibility for us.” corporate behavior.” ness and Law and associate professor of Ashford said her new appointment business economics and public policy. refl ects a desire for better coordination She was the fi rst academic director of the of the Ross School’s existing leadership

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113756_Cs3_01_18.indd3756_Cs3_01_18.indd 3 112/19/072/19/07 4:21:474:21:47 PMPM ACROSS THE BOARD who died in 2002 and was much respected for the service he gave to the school. KUDOS through the leveraging of competitive Teaching Excellence awards given by advantage, and on global competition. Ross students were presented at indi- Fourteen Faculty Michael Jensen, assistant professor of vidual degree commencement ceremo- strategy, was named the Bank One Corpo- nies. Damian Beil, assistant professor Receive Awards ration Assistant Professor in Business of operations and management science, his spring, the Ross School honored Administration, a one-year appointment received the BBA award; Uday Rajan, Teight faculty members for their research, that recognizes promising junior faculty associate professor of fi nance, was se- teaching and service, and presented Teach- conducting high-potential scholarly research. lected for the MBA award; and Gerald ing Excellence awards to six more at com- Th e Sanford R. Robertson Assistant Davis, the Wilbur K. Pierpont Collegiate mencement. Professor in Business Administration, a Professor of Management and professor of James Westphal, the Robert G. Rodkey one-year named professorship, was given management and organizations, accepted Collegiate Professor of Business Adminis- to Haitao Li, assistant professor of fi nance, the PhD award. Th e Executive MBA award tration and professor of strategy, was named whose research focuses on asset pricing, went to Th omas Kinnear, the Eugene Researcher of the Year in recognition of his hedge funds and fi nancial econometrics. Applebaum Professor of Entrepreneurial substantial research contributions and schol- Valerie Suslow, the school’s new associate Studies, professor of marketing and direc- arly publications in the areas of strategic dean for degree programs and associate tor of the Samuel Zell and Robert H. management and organizational theory. professor of business economics and pub- Lurie Institute for Entrepreneurial Studies. Th e Senior Faculty Research Award was lic policy, was named the Louis and Myrtle E. Han Kim, the Fred M. Taylor Professor given to Aradhna Krishna, the Isadore Moskowitz Research Professor of Business of Business Administration, professor of and Leon Winkelman Professor of Retail and Law in recognition of her compre- fi nance and international business, and Marketing, whose research on consumer hensive research on international cartels director of the Mitsui Life Financial Re- perceptions and behavioral responses has and the design of trade policies. James search Center and East Asia Management contributed to building and maintaining Reece, professor of accounting and pro- Development Center, was selected for the a strong research environment at the Ross fessor of operations and management Global MBA award. Finally, George Siedel, School. Aneel Karnani, associate professor science, and Th omas Schriber, professor the Williamson Family Professor of Busi- and chair of strategy, was honored with of business information technology, re- ness Administration and Th urnau Professor the Victor L. Bernard Teaching Leader- ceived the Andy Andrews Distinguished of Business Law, was presented with the ship Award for his outstanding teaching Faculty Service Award, which was created MAcc award. and research on fi rm growth and success in memory of the late Richard (Andy) Andrews, associate professor of statistics,

RESEARCH, TEACHING AND SERVICE AWARD RECIPIENTS TEACHING EXCELLENCE AWARD RECIPIENTS

James Westphal Aradhna Krishna Aneel Karnani Michael Jensen Damian BeilUday Rajan Gerald Davis

Haitao Li Valerie Suslow James Reece Thomas Schriber Thomas Kinnear E. Han Kim George Siedel

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113756_Cs3_01_18.indd3756_Cs3_01_18.indd 4 112/19/072/19/07 4:21:524:21:52 PMPM ACROSS THE BOARD a founder of the Institute RECOGNITION “It’s a great honor to have a scholar for Social like Jane Dutton as a faculty member at Research and Dutton Receives the Ross School and the University,” a seminal Dolan said. “She is one of the most profi gure in or- Distinguished Uni- lifi c and most cited authors in her fi eld. ganizational Her work is both creative and generative, behavior. versity Professorship and her achievements are legendary. Not “Having rofessor Jane Dutton, a world- only is she an extraordinary scholar, but the opportu- Prenowned scholar in the fi eld of she is a gift ed mentor, devoted and com- nity to name organization and management theory, passionate teacher and highly respected the chair aft er has received one of the University of colleague to many around the world. She one of my Michigan’s most coveted honors, a has had and continues to have an enor- heroes and Distinguished University Professorship. mous impact on Michigan and our pro- founders of Dutton, professor and chair of man- fession, as well as the world of practice.” our fi eld, agement and organizations at the Ross Dutton, who has taught at the Ross Robert Kahn, School and professor of psychology in School since 1989, provides important is a way to pay tribute to a man whom I the College of Literature, Science and the leadership within the school and through- think represents the best of what an aca- Arts, is now the Robert L. Kahn Distin- out the University. In addition to her demic can be,” Dutton said. “Receiving guished University Professor of Business current tenure as chair of her department, this honor is such a wonderful tribute Administration and Psychology, eff ective she has served on many Ross School to all the amazing staff , students and September 1. committees and co-directed the Rackham colleagues who have been major con- In recommending Dutton for the ap- Interdisciplinary Committee on Organi- tributors to my research. pointment, Ross School Dean Robert zational Studies. She also is a board mem- “I appreciate being in an academic Dolan said the honor recognizes Dutton’s ber of Kelly Services, the Academy of context where a researcher is encouraged outstanding scholarly achievements and Management and eight management- to take risks and to aspire to growth and commitment to excellence in teaching, related journals. learning throughout one’s career. Th e as well as the important leadership she Her Distinguished University Profes- Ross School is a place that calls you to try provides to the school, the University sorship is named for social psychologist to make a diff erence, and then supports and beyond. Robert L. Kahn, U-M professor emeritus, you to try to make it a reality.”

HONORED rofessor Dave Ulrich has managed to by consulting and conducting research Ppack an awful lot into a remarkable with more than half of the Fortune 200 Ulrich Given career spanning several decades. Since companies. He also is a partner and 1988, he has taught and coached hun- co-founder of the RBL Group, a Provo, dreds of students at the University of Utah-based consulting fi rm. Ulrich’s Lifetime Michigan, where he currently directs the primary research focus has been on how Human Resource Executive Program at organizations build important capabilities Achievement the Ross School. Outside academe, Ulrich through leveraging human capital, and he has made a name for himself in human has helped to generate multiple award- Award resources and organizational leadership winning databases that assess alignment between strategies, human-resource practices and HR competencies. Ulrich’s many accomplishments were recognized recently by the American Society for Training and Development, which presented him with its Lifetime Achievement Award in Workplace Learn- ing and Performance. Tony Bingham, the group’s president and CEO, described Ulrich as “a pioneer in motivation, building organizational capability and linking human resources to bottom-line measures. (His) work has greatly infl uenced managers, human-resource practitioners, CEOs and other leading thinkers to understand the value of people in the equation for organizational success.”

dividend 5 fall 2007

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CHALLENGE research and advocacy activities on behalf Yaffe Center of those who are sick and living in poverty. Dr. Paul Farmer It is one of the largest nongovernmental Speaker Series Builds a Healthcare healthcare providers in Haiti and the only e swim in symbols and messages primary-care provider to more than half Wthat reach us not just through Movement a million poor residents in the country’s advertising but also through the way mountainous central plateau. Farmer has products and services are designed reating HIV has long been consid- worked in the Caribbean island nation and packaged. Th is past year, the Yaff e Tered too costly in populous areas since 1983, living in a squatters’ settle- Center for Persuasive Communication, with high rates of infection and few ment. In April 2005, PIH established a a multidisciplinary collaborative located healthcare resources. Dr. Paul Farmer, foothold in two rural districts in Rwanda at the Ross School, invited leading co-founding director of the international to launch HIV care and treatment. Its advertising executives, marketers and charity organization Partners in Health intervention eff orts were helped by the designers to Ann Arbor to share their (PIH), thinks otherwise. Based on his life- Clinton HIV/AIDS Initiative and private insights on cutting-edge and traditional saving work in the impoverished nations donors. forms of communication with Ross of Haiti and Rwanda, the prominent students and faculty. Th e 2006-2007 medical anthropologist and physician Speaker Series showcased some of the contends that cost analysis shows HIV “Teaching and best and brightest minds from organiza- treatment is no more expensive than tions such as Google, Crispin Porter & prevention. Th e greatest impediment to research are noble Bogusky, Jaff e, IDEO, Discovery Com- helping suff erers is the lack of community- munications and the National Football health workers who are needed to deliver vocations, but it’s League. the new resources now available to fi ght In January, marketing adviser Joseph the disease. very difﬁ cult to Jaff e, president of the Jaff e consulting fi rm In a February lecture co-sponsored by and author of the daily “Jaff e Juice” blog, the Ross School and the William Davidson intervene effec- predicted the demise of the 30-second Institute, Farmer challenged the Univer- television commercial due to lack of sity of Michigan and other research uni- tively if we don’t creativity in TV ads. He encouraged versities to devote more time and money marketers to become more innovative to community outreach and service. have a major ser- by rejecting the status quo, embracing “Teaching and research are noble voca- change, accepting a higher level of actions, but it’s very diffi cult to intervene vice component.” countability and challenging internal eff ectively if we don’t have a major service and external partners. “New marketing component,” Farmer said. PIH provides —Paul Farmer is a state of mind,” Jaff e observed. direct healthcare services and undertakes “Experiment or you’ll be experimented on.”

Dr. Paul Farmer, center, ﬁ elds questions about Former NFL Commissioner Paul Tagliabue, his work. center, huddles with Ross fans.

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113756_Cs3_01_18.indd3756_Cs3_01_18.indd 6 112/19/072/19/07 4:22:184:22:18 PMPM ACROSS THE BOARD their societies. In 2006 Michigan MBA students participating in the Multidisci- Speaking in February, Iain Roberts, CHEAPER THAN WAR plinary Action Projects program created a co-leader of IDEO’s Consumer Experi- business and revenue plan to help socially ence Design Practice, told his audience Zainab Salbi’s excluded women achieve economic self- that creating a successful brand requires suffi ciency in Bosnia and Kosovo. Salbi’s more than making visually appealing McInally Lecture pioneering philanthropic eff orts have products. A designer, he noted, also must n war-torn countries such as Croatia, earned her the prestigious 2006 Conrad consider the holistic experience and con- IAfghanistan and Iraq, women are oft en N. Hilton Humanitarian Prize, the Forbes textual use of the product to attract con- the civilian victims of violent military and 2005 Trailblazer Award and several ap- sumers. His pick of the litter: Apple for paramilitary confl ict. And in the wake of pearances on Th e Oprah Winfrey Show. its blockbuster design expertise in Macin- war, women are oft en the most cohesive Salbi ended her talk by reciting a fa- tosh computers, the new iPhone and the force in keeping families and communi- vorite poem by 13th-century mystical upcoming Apple TV. “Everybody wants ties together and in promoting healing poet Rumi: “Out beyond ideas of wrong- to be Apple,” Roberts said. and rebuilding. “No society can progress doing and rightdoing, there is a fi eld. Former NFL Commissioner Paul if women are not fully engaged,” said I’ll meet you there.” She went on to say, Tagliabue wound up the Speaker Series Iraqi war survivor and author Zainab “Th ere will be many women—and a with a little communications coaching Salbi, who in February delivered the 40th few men. Join me in that fi eld. Peace is from the sidelines. “Today (communica- annual William K. McInally Memorial much cheaper to build than war. And it tions) coverage is 24/7, and it focuses Lecture sponsored by the Ross School. is working.” not just on the game, but on controversial “I saw the atrocities of war (and) believed adjuncts, such as player misconduct I had an obligation as a woman to reach and coaching controversies,” he said. out in a tangible way. I believed change “No society Th e NFL’s communications game plan was possible, even though I started with centers on credibility in goals, vision and no money and no support.” can progress if strategy; reality in conducting business Since founding Women for Women to achieve those goals and vision; under- International with Amjad Atallah in 1993, women are not standing NFL audiences; and candor and Salbi has helped more than 93,000 wom- credibility in articulating themes and en and 508,000 family members by dis- fully engaged.” details. “Eff ective communications are tributing nearly $30 million in direct aid at the heart of everything you do in and microcredit loans or sponsorships. —Zainab Salbi managing an organization,” Tagliabue Her organization has trained thousands concluded. of women in rights awareness and helped many start small businesses. Today Salbi estimates more than 55,000 women, all war survivors, have begun to contribute to the political and economic health of

Zainab Salbi counsels war survivors in Rwanda, below, and the Democratic Republic of Congo, right.

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113756_Cs3_01_18.indd3756_Cs3_01_18.indd 7 112/19/072/19/07 4:22:244:22:24 PMPM INTELLECTUAL CAPITAL quite right.” Trust these all-too-fl eet- ing signals, she Resilient Performance says, since they are a solid clue that your model of the world in an Age of Uncertainty is in error. Early signs Since the ﬁ rst edition of Managing the Unexpected was published in 2001, that portend trouble rarely pressures regarding quality of performance have intensiﬁ ed in all organizations. appear in a vac- Recently revised by Ross School of Business professors Karl Weick and uum, adds Weick, Kathleen Sutcliffe, the book’s second edition presents a timely and practical who warns against the temptation guide for “high-reliability organizing” in an age of ongoing uncertainty. to simplify an anomaly into an “ordinary episode” or isolated incident. “When you take a fairly complicated nexpected and unimagined controllers, among others, they identifi ed mindset into a situation, you oft en see events happen all the time in fi ve key principles for high-reliability more levers to pull than you would other- U organizations: Coal mines organizing: preoccupation with failure, wise,” Weick says. “You expand the options collapse, fresh spinach causes grave reluctance to simplify, sensitivity to op- or the places where you can intervene, illness and toys laced with lead threaten erations, commitment to resilience and because you have a more detailed map our children. deference to expertise. of what’s going on. For every unexpected Th ese tenets can be generalized and “Complication also helps you see event that management applied to virtually any corporate setting, longer chains of consequences and unex- faces, early symptoms the authors say. For instance, a visit from pected linkages along the way,” he contin- and warning signs the Securities and Exchange Commission ues. “If you have more details out there appear. If left unchecked, to a CEO’s offi ce does not produce fatali- and you change one of them, you’ll see these “weak signals ties, but it can aff ect markets, share price how it changes this, then that, and you’ll of failure” can grow in and liability. observe more connections. We see this a complexity, multiply “Th e pressures for reliability and qual- lot in wildfi re situations, where one is exponentially and wreak ity of performance—no matter what kind tempted to label something a ‘piece of havoc to the point of of conditions—are higher today than ever cake’ and neglects to read into some de- catastrophe. In the before for all organizations,” says Sutcliff e, tail that perhaps the fl ames are a little second edition of their associate dean for faculty development higher, the air is a little dryer, the wind is book, Managing the and research and the Gilbert and Ruth a little stronger and so on. You want all Unexpected, Ross School Whitaker Professor of Business Adminis- that information in there all of the time.” scholars Karl Weick tration. Since releasing the fi rst edition of Part of catching the interconnected and Kathleen Sutcliff e Managing the Unexpected, she and Weick details requires reaching out to colleagues put forth a theory that have received inquiries about this work with varying viewpoints and levels of can enable fi rms to from the FBI, U.S. Department of Home- expertise. A culture of openness and in- anticipate, contain and land Security, investment banking execu- formation sharing is the key. Admitting “mindfully manage” tives and the petroleum industry. small mistakes before they become fatal the unforeseen. Th e goal is to create “learning organi- “We use the term zations” in which preoccupation with ‘mindful’ in contrast to failure is the fi rst step toward mindful “When you take a automatic or mindless management, Sutcliff e says. activity,” says Weick, “People misinterpret preoccupation with fairly complicated the Rensis Likert Dis- failure to mean you have to be constantly tinguished University paranoid about making mistakes,” she Professor of Organiza- explains. “But that’s not what we’re saying.” mindset into a tional Behavior and What she and Weick are saying is that situation, you often Above, Karl Weick Psychology. “Our defi - complacency and hubris are manage- and Kathleen nition of mindful is a ment’s two biggest enemies. No news is Sutcliffe ‘rich awareness of dis- not necessarily good news, and success see more levers to criminatory details.’ ” can be a liability that produces blind Th e authors looked to high-reliability spots. Although it is human nature to pull than you organizations (HROs) where discrimina- “normalize” unexpected events, Sutcliff e tory details set the stage for life and death encourages people to respond right away would otherwise.” scenarios. In observing wildland fi refi ghters, to that surprised, puzzled or anxious emergency room teams and air traffi c feeling one gets when “something is not —Karl Weick

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113756_Cs3_01_18.indd3756_Cs3_01_18.indd 8 112/19/072/19/07 4:22:294:22:29 PMPM INTELLECTUAL CAPITAL The Five Principles of Mindful Management

1. Preoccupation with failure: Small events can lead to huge failures. Treat any lapse as a symptom that something may be wrong with the system. Be aware that you have yet to experience all of the ways your system can fail.

2. Reluctance to simplify: Get comfort- able with the idea that the world you face is complex, unstable, unknowable and unpredictable. Welcome diverse experience and skepticism.

3. Sensitivity to operations: Be less strategic and more situational. A person errors should be encouraged by manage- Emergency room personnel practice “mindful with situational awareness can identify ment, the authors contend. But oft en management” as a necessity. Photo by Veer anomalies while they are still tractable management itself is too blind to realize and isolated, and then make the continu- a problem exists. Th is element of resilience is another ous adjustments that prevent errors “Eastern Michigan University sociol- key principle in managing the unexpect- from accumulating and enlarging. ogy professor Ron Westrum calls this ed. Once embroiled in a situation, one’s the ‘fallacy of centrality,’ ” Sutcliff e says. reactive capacity to stretch and bounce 4. Commitment to resilience: Be mindful “Sometimes people who are experts or back, to make do and recover, comes into to keep errors small and be committed are in high-powered situations think they sharp focus. Standard practices are a nec- to improvising workarounds that allow would know if something were going wrong. essary element of doing business, but the system to keep functioning. Use what Th e danger is that those people are less situational awareness and improvisation you have learned from unexpected curious to seek out information and to oft en trump long-term strategic thinking events to revise operating procedures determine ‘is this really happening?’ ” in a crisis, the authors say. and update plans. Similarly, employees “in the fi eld” may “It’s important to think of the word assume incorrectly that upper management reactive as re–dash–active,” Sutcliff e says. 5. Deference to expertise: Remember that shares the hands-on expertise they have “You’re not just responding to outside the person with the most experience is amassed. As a result, early portents of forces. It’s a much more conscious activ- not necessarily an expert when coping disaster go unreported and gain traction. ity. You’re reactivating diff erent elements, with the unexpected. Since embarking on this research, rearranging and combining things you’d Sutcliff e has seen a trend develop in hos- never combined before. And ultimately pital intensive care units to reduce medi- you’re recovering.” cal errors. “We are starting to see doctors As technology advances and global include nurses, pharmacists and respira- systems become more complex and inter- tory therapists on their rounds,” she says. connected, unexpected interactions and those initial warning signals. Th at’s why “Th is in eff ect gives them more lenses and events will continue to multiply, Sutcliff e chronic wariness and looking at small perspectives to view a problem. It creates predicts. But Weick is quick to point out failures is crucial to us. We are concerned a more comprehensive, richer and nuanced that managers should not get mired in that people are lumping too many things picture of what’s going on.” devising contingencies to cover infi nite together and, in a sense, concluding that Th e ICU example illustrates a critical “unexpected” scenarios. Plans create ex- they’ve seen something before, when, in element of managing the unexpected, pectations, he says. And expectations lull fact, there are diff erences at play. Believe Sutcliff e says. Learning from mistakes people into seeing only those things that me, those diff erences can be crucial.” and amending protocols aft er an unex- confi rm their expectations. It’s usually at Deborah Holdship pected event can help to mitigate damage that precise moment that “weak signals” in the future. of a system breakdown begin to split, “HROs tend to use the unexpected multiply and breed potential chaos. to discover more about their systems and “It is very tough to anticipate, forecast to revise their standard operating proce- or be proactive toward some situation dures,” she says. “And they’re constantly until something happens,” Weick says. changing those procedures to refl ect even “So from our standpoint, there is a real more new learning.” premium on a quick, early response to

dividend 9 fall 2007

113756_Cs3_01_18.indd3756_Cs3_01_18.indd 9 112/19/072/19/07 4:22:354:22:35 PMPM FACULTY RESEARCH

in modern economies,” he says. “In developed countries, people don’t sit at home Microfi nance: stitching clothes for one customer at a time. So why do we think these poor countries Miracle should go down that route? If you help one woman to be a micro-entrepreneur, nothing much changes. Maybe her income or Mirage? goes up, but not enough to lift her and In titling a 2007 paper “Microfi nance her family out of poverty.” Critics argue that factories can be sweat- Misses Its Mark,” Aneel Karnani shops, which exploit and abuse the poor. must have known his controversial But Karnani contends that creating jobs stance on the topic would incite with reasonable and steady wages—how- Aneel Karnani ever unappealing those jobs may be from criticism and debate. This associate out of poverty on a sustained basis. Th is a rich country’s perspective—is preferable professor and chair of strategy at the one organization alone has linked 30,000 to microfi nance as a path to reducing Ross School is fi ne with that. In fact, poor youths to entry-level jobs in the last world poverty. It’s a theory he puts forth two years; its target for 2007-2009 is that’s exactly what he wanted. in his paper “Microfi nance Misses Its 150,000 jobs. Mark,” published in the Stanford Social When asked whether both models of f questions are the currency of scholarly Innovation Review. development—microfi nance and generat- discourse, the fi eld of microfi nance is At issue, he says, is the sweeping premise I ing employment—can co-exist equally, cashing in. No longer content to ask, “Does that the poor possess inherent entrepre- Karnani gives a qualifi ed yes, and then microfi nance help the poor?” some observ- neurial skills and drive. While proponents changes his mind. “I lean toward the an- ers are posing the more provocative query: of microfi nance cite inspiring anecdotes swer ‘no’ in the following sense,” he says. “Can microfi nance eradicate poverty?” that bear out this notion, Karnani still “Every society has limited resources. Th e distinction is subtle. But it could characterizes the logic as fl awed and Th e question is how to use these limited redirect the way organizations and indi- romantic. “Most people do not have the resources to get the maximum impact. viduals allocate future funds toward the skills, vision, creativity and persistence I don’t think we should eliminate micro- world’s most economically disenfranchised, to be entrepreneurs. Even in developed fi nance, but in my view we should do says Aneel Karnani, associate professor economies, most people prefer to have a much less microfi nance and focus much and chair of strategy at the Ross School. job with a steady income,” he notes. “So more on generating employment. Th e “It’s undoubtedly true that microfi nance why do we assume that the poor in devel- second thing that is limited is political helps the poor,” Karnani says. “But that is oping countries want to be entrepreneurs? capital within a government. Govern- the wrong question to ask. Th e question Most microcredit clients would gladly ments in poor countries oft en suff er from is: Does it help enough? And does it help take a factory job if it were available.” corruption and lack of skills. How should more in comparison with some other Since publishing his alternative views in they spend their limited political capital? policy that we, as a world, might pursue?” the papers “Romanticizing the Poor Harms On encouraging microfi nance? Or on Microcredit gained initial traction in the the Poor” and “Fortune at the Bottom of building infrastructure, developing capi- late 1970s. Today, experts estimate some the Pyramid: A Mirage,” Karnani has been tal markets and facilitating job creation? $27 billion is invested in microcredit contacted by others who think along simi- Next, there are many well-meaning phil- worldwide. Financial institutions, non- lar lines. He points to one NGO based in anthropic organizations, foundations and governmental organizations and social California as an excellent example of how NGOs eager to help the poor. Th ey have entrepreneurs are drawn to the premise to alleviate poverty through job creation. money, skills, energy and enthusiasm. that, when given the support of fi nancial Starting with markets, this NGO identifi es How should they allocate their resources: capital, however small, the poor are fully high-potential but under-performing eco- microfi nance or job creation?” capable of improving their lives at the nomic subsectors and seeks to resolve the Th ough he raises questions about the individual and household levels. In ideal identifi ed market failures that constrain effi cacy of microfi nance, Karnani does cases, micro-entrepreneurs even emerge their development. One success story is a not question the value of discourse. to create and sustain small businesses medium-size enterprise that employs several “I think what I’m saying makes sense,” with limited resources. hundred people to process and export he says. “But even if I’m not right—even But Karnani and others argue that the cashews from Mozambique. if I’m totally wrong—one positive out- one-at-a-time nature of microfi nance is In India, one government/private sector come of my writing is to increase debate too fragmented to eliminate world pov- partnership developed an employment on these issues. We all have the same erty. Where microfi nance might advocate organization to identify, recruit and train objective: to eradicate poverty. Th at is loaning funds to 500 individual women to rural youths and then match them with our moral challenge. We should have an purchase 500 individual sewing machines, entry-level urban jobs, such as shop clerk, informed and vigorous debate on how to Karnani argues for investing in a small to hotel staff er, security guard and construc- do it. Th at is the whole point of academe. medium-size clothing factory that could tion worker. Th eir impact studies show And the poor deserve no less.” organize and employ those 500 women. that providing one youth a job in the “Economies of scale play a critical role organized sector takes the entire family Deborah Holdship

dividend 10 fall 2007

113756_Cs3_01_18.indd3756_Cs3_01_18.indd 1010 112/19/072/19/07 4:22:384:22:38 PMPM FACULTY RESEARCH In contrast, hedge funds that invest in PIPE securities perform relatively well. Equally important, the researchers’ “PIPEs can be profi table for hedge funds results show companies that obtain fi - because the funds obtain equity securities Investors of nancing from hedge funds signifi cantly at signifi cant discounts, because they underperform those that obtain fi nancing protect themselves through embedded Last Resort from other investors during the following re-pricing rights and short positions, and two years. For example, the common because they can liquidate the securities Professor David J. Brophy, director stocks of companies issuing traditional aft er a relatively short time period,” Bro- of the Center for Venture Capital and PIPE securities purchased by hedge funds phy explains. “Th is leads us to conclude Private Equity Finance at the Ross decline by 19.25 percent during the fi rst that hedge funds do act as investors of last School, has played a formidable role year following the private placement, resort for fi rms with the fewest alternative while the common stocks of fi rms issuing fi nancing options, and that being an in- in company-building as an adviser traditional PIPEs purchased by other vestor of last resort defi nitely pays off .” to both start-ups and venture funds investors decline by just 0.35 percent in Claudia Capos for nearly 30 years. His latest re- that time frame. search looks at the role of hedge funds as “investors of last resort” for some public companies. manager(s) in implementing such strategies,” Li explains. “Just like any entrepre- ecently, hedge funds have become Talent Matters neurial activity, some hedge-fund managers Ran important source of funding for are better than others at making investment public companies raising equity privately. Over the years, Haitao Li, assistant pro- decisions.” Since 1995, these funds have participated fessor of business at the Ross School, For their study, the researchers collected in more than 50 percent of the private has interacted with undergraduates information on the characteristics of the placements of equity securities and have and graduates from several of the lead manager at 1,002 funds, spanning the contributed about one-quarter of the period from 1994 to 2003. Th e six traits nation’s leading business schools. capital raised in such equity issuances— they examined include: the manager’s age, a total investment that has exceeded the “I was very impressed by some of the the number of years he or she has been contributions of other investor classes. smartest students from these schools,” working, the length of his or her tenure at Financing young, small companies with he says. “This prompted me and my a specifi c hedge fund, the composite SAT weak fundamentals and pronounced co-authors to think that maybe talent score for the manager’s undergraduate informational asymmetries has become matters in hedge-fund performance.” university, whether he or she has a CPA an important investment strategy for or CFA, and whether he or she has an some hedge funds. But questions arise Their recent study reveals that some MBA degree. over whether the funds and the compa- hedge-fund managers are indeed bet- Li, Zhang and Zhao demonstrate that nies selling their equity both benefi t and ter than others. manager education and career concern perform equally well aft erward. have a strong impact on diff erent aspects In a research study, “Hedge Funds as he rapid proliferation of hedge funds, of hedge-fund performance, such as fund Investors of Last Resort?,” fi nance profes- Twhich are predicted to have $3 trillion risk-taking behaviors, raw and risk-adjusted sor David J. Brophy and co-authors Paige under management globally by 2008, has returns and fund fl ows. Specifi cally, they P. Ouimet and Clemens Sialm investigate brought intense scrutiny to bear on the fi nd managers from higher-SAT universi- the role of hedge funds in private place- talents of the individuals who manage ties generally take fewer risks and have ments using data on 5,244 transactions of these high-fl ying, entrepreneurial invest- higher raw and risk-adjusted returns. Th ey Private Investment in Public Equity (PIPE), ment vehicles. also report that younger managers tend to which raised $77 billion between 1995 In a new study, “Investing in Talents: have higher returns and more infl ows, and 2002. Struggling high-risk companies Manager Characteristics and Hedge Fund and take more risks. that are unable to obtain external fi nanc- Performances,” Haitao Li of the Ross “When everything else is the same, a ing from more traditional sources oft en School and co-authors Xiaoyan Zhang manager from an undergraduate institu- issue private placements to alternative of Cornell University and Rui Zhao of tion with a 200-point higher SAT can investors, thereby providing them with Columbia University conclude that the expect to earn an additional 0.73 percent unique investment opportunities. personal, educational and professional raw excess return per year,” Li explains. Brophy and his co-authors fi nd that characteristics of fund managers greatly “And a manager with fi ve years less working hedge funds take steps to reduce the risk impact hedge-fund returns. Th ey suggest experience can expect to earn an addi- associated with their investments in weak investors seeking superior performance tional 0.54 percent raw return per year.” companies by demanding substantial are well-advised to select younger fund Th ough talent does matter, it is still very discounts on the equity-linked securities managers who are well-educated and hard to beat the market consistently, Li notes. they buy, negotiating re-pricing rights to highly devoted to their jobs. “Th ere are always things that one’s quantita- protect themselves against price declines “Th e performance of a hedge fund tive model cannot capture, and even the and short-selling the underlying stocks of depends crucially on both the investment smartest people can lose money,” he says. the PIPE-issuing companies. strategies it follows and the talent of its Claudia Capos

dividend 11 fall 2007

113756_Cs3_01_18.indd3756_Cs3_01_18.indd 1111 112/19/072/19/07 4:22:414:22:41 PMPM FACULTY RESEARCH Cooperation can be eff ective, provided the fi rm is performing well and the management strategy is sound. However, if the fi rm is not performing well and signifi cant strategic change is required, then Greasing the Way monitoring and control behavior by the board may be necessary. Our research James Westphal’s research frequently focuses on management practices and suggests that if directors are appointed social relations among corporate leaders. Since joining the Ross School as on the basis of their ingratiatory behavior, professor of strategy last year, he has looked closely at the culture of fl attery they are less likely to engage in that moni- and favors that infl uences corporate boards and Wall Street securities analysts. toring and control behavior. Some of his fi ndings are examined in the Q&A that follows. Dividend: What should be changed in the selection process to promote better ividend: Do American business Dividend: Can ingratiating behavior governance? Dpractices encourage a culture of toward fellow directors help ethnic Westphal: Th e biggest change would be fl attery and favors? minorities and women obtain board ap- to cast a wider net when looking for board Westphal: In the case of top management pointments? Is this “leveling the playing candidates. We fi nd that if board candi- and corporate boards, our business prac- fi eld” or simply appointing individuals dates are recruited through informal tices do allow a role for fl attery. Board who may or may not be qualifi ed? networks, then social infl uence aff ects selection and promotion occurs mainly Westphal: I would view it more as level- the recommendations. However, social through informal social ties and recom- ing the playing fi eld. We fi nd that ethnic infl uence is less likely to play a role in mendations by people who already hold minorities and women get more benefi ts the selection process if boards look more corporate board seats. Because of the from their experience and qualifi cations broadly for individuals who don’t have informality of the process, social infl u- when they engage in this behavior. If they any kind of network ties to current mem- ence can play a greater role than if the don’t, they are disadvantaged in getting bers of the nominating committee. Th is process were very formal and truly led board appointments. On the other hand, means going outside the regular social by some independent party. for white males, it could be more a case circle of corporate leaders who hold mul- of compensating for lack of experience. tiple board appointments to fi nd a new Dividend: How widespread is this? We have evidence that white males who population of individuals who can serve Westphal: It’s quite widespread in the lack high levels of management experience in that capacity. Engaging headhunting sense that it’s common for managers engage in higher levels of ingratiation. fi rms and giving them more infl uence in to engage in ingratiation the selection process is one way to toward CEOs. Based on Dividend: In a companion study, you achieve this. our survey data, we also uncover continuing discrimination see relatively high levels against ethnic minorities and women Dividend: Turning to Wall Street, of ingratiation and other on corporate boards. your research reveals that favors from social infl uence processes Westphal: We fi nd that once ethnic corporate executives infl uence securities between outside directors minorities and women achieve their fi rst analysts’ behavior. What kind of favor on boards. Moreover, when board appointment, they are systemati- rendering have you identifi ed? CEOs or directors receive cally disadvantaged in getting further Westphal: We’ve identifi ed both profes- ingratiation, they seem to board appointments. Th ey also realize sional and personal favors. Professional feel an obligation to recip- fewer benefi ts from following prescribed favors include things such as putting an rocate by doing something behaviors such as giving strategic advice analyst in touch with a manager at a buyer for the “ingratiator.” Th is to CEOs, and are punished more for en- or supplier fi rm, or off ering to meet with reciprocation is the real norm and makes gaging in socially unapproved behaviors the analyst’s clients. Personal favors include the social infl uence processes powerful. such as monitoring and control of CEO providing career advice or recommend- decision making. Th ey also are rewarded ing the analyst for a job position. Dividend: Is this behavior accepted as “just less for ingratiatory behavior. So they are the way things are done” on corporate caught between a rock and a hard place. Dividend: How does favoritism aff ect boards and in upper-management circles? analysts’ stock rankings and evaluations Westphal: Yes, I don’t think that ingratia- Dividend: Does ingratiation that leads of investment opportunities? tory behavior in this context is typically to board appointments negatively impact Westphal: We found that the greater the frowned upon. Clearly, some people are shareholders? extent to which an executive provided more adept at social infl uence than others, Westphal: Ingratiation can have adverse favors to an analyst, the lower the likeli- but by and large this is a population of consequences, depending upon the hood that the analyst would downgrade people who know how to infl uence their company’s situation. Th ere are two basic the fi rm following the release of negative peers. Th at’s partly why they have gotten forms of board involvement: One takes earnings surprises or other unfavorable where they are. the form of cooperative advice and counsel, fi rm information. and the other involves more independent “monitoring and control” behavior.

dividend 12 fall 2007

113756_Cs3_01_18.indd3756_Cs3_01_18.indd 1212 112/19/072/19/07 4:22:424:22:42 PMPM FACULTY RESEARCH practices are investors who take a longer- term position or smaller investors who aren’t Dividend: Where does this behavior fall relate to executives. Others disagree, con- privy to the kinds of social relations that on a continuum of socializing and net- tending that these favors enable analysts occur between executives and analysts. working at one end and bribery and secu- to do their job by giving them access to rities fraud at the other? information on buyer and supplier fi rms. Dividend: Could, or should, anything be Westphal: Well, there’s nothing illegal Th e problem with the latter argument is done to mitigate this culture of favors on about this behavior. Favor rendering goes that in our research we fi nd accepting Wall Street? on every day among colleagues at U.S. favors biases analysts’ decision making. Westphal: First, people need to be aware corporations. However, many people So even if analysts are naïve in intent, of what is going on. If these practices are don’t realize it is occurring in relations accepting these favors does have negative deemed to be unethical, the solution for between executives and analysts. Clearly, consequences. changing them lies in socializing analysts it’s not bribery. Rather, it is the kind of not to accept favors, or at least to consider behavior top managers use to build social Dividend: Does favor rendering serve the possible consequences of accepting networks or to forge relations with key management interests at the expense of favors. Analysts may not realize this be- constituencies of their fi rm. Some would shareholders over the long term? havior is aff ecting their decision making say that’s good leadership. Westphal: Right now, we’re looking at who to the extent it is, so they need to be edu- is hurt by these practices. Professional cated by fi rms, professional societies and Dividend: Are securities analysts crossing investors who take a short-term interest business schools. an invisible line by downplaying bad news in fi rms may actually benefi t. Some anec- Claudia Capos about fi rms’ performance in their reports? dotal evidence suggests they are some- Westphal: To some people, this is clearly times aware of favor rendering and know unethical, and they believe there should which analysts engage in it and when. Th e be a serious reappraisal of how analysts people who are potentially hurt by these

the owners and the managers equally understand the fi rm and have the incentives to Going maximize value.” In their new study, “Why Do Firms Use Private Equity to Opt Out of Public Private Markets?,” Dittmar and co-author Sreedhar Bharath fi nd fi rms that stand to benefi t the most from the concentrated owner- Many factors that drive public ship structure associated with being companies to go private are evident private are the companies that are most throughout their public lives, even at likely to go private. “Being able to predict their initial public offerings, say Ross who will go private gives us insights into School ﬁ nance professors Sreedhar what fi rms are better off taking that step,” Bharath and Amy Dittmar. Their Dittmar explains. Sreedhar Bharath and Amy Dittmar Th e two researchers examined 1,451 latest research examines the resur- public U.S. fi rms that went private be- On average, they say, fi rms that ultimately gence of going-private transactions, tween 1980 and 2004, comparing them go private remain in the public market for fueled by the development of the to 6,640 IPO fi rms that remained public more than 13 years aft er their IPOs. private equity market. during that time. Th ey report that fi rms Market and macroeconomic forces also which are not frequently traded, and thus infl uence fi rms’ decisions to go private. eing a public fi rm has both costs and have less liquidity, and those with less Whether the recent subprime mortgage Bbenefi ts. Greater scrutiny by investors information available about them in the fallout will impact deal making is unclear. and the Securities and Exchange Com- public market are more likely to go pri- “Certainly, private equity deals have relied mission is certainly one cost. Since 2002, vate. “Several theories predict these are on the easing of debt covenants and the the Sarbanes-Oxley Act has increased this the fi rms for which the cost of being pub- access to capital this allows,” Dittmar says. cost for many public fi rms. However, even lic outweighs the benefi ts, and thus these “Further, our study shows a relationship without SOX, some companies fi nd it tough are the fi rms that can increase value by between the rates paid on corporate debt to maximize their value in the public market. going private,” Dittmar notes. “Th is is and the decision to go private. However, By contrast, private fi rms can limit something investors should consider.” there are still many fi rms that can benefi t investor and SEC scrutiny. “When a fi rm Using data from the time of the IPO from a private ownership structure, and is private, with concentrated ownership, to when a company decides to go private, there are still a lot of private equity fi rms incentives are aligned and information is Bharath and Dittmar are able to predict with uninvested capital.” much more symmetric,” says Ross fi nance accurately which fi rms will become Claudia Capos professor Amy Dittmar. “In other words, private about 83 percent of the time.

dividend 13 fall 2007

113756_Cs3_01_18.indd3756_Cs3_01_18.indd 1313 112/19/072/19/07 4:22:434:22:43 PMPM FACULTY RESEARCH hiatus. (Th e ads did not meet FDA regulations.) Meanwhile, Wyeth’s Protonix, hardly a household name, has managed to obtain a 20 percent share in the com- Pharmaceuticals: petitive Protom Pump Inhibitor category with virtually no consumer push. Both Pfi zer and Bristol-Myers Squibb now are eschewing direct-to-consumer advertising Addicted to Ads? for six to 12 months aft er product launch, says Manchanda. Th ese scenarios, coupled with the fact U.S. pharmaceutical sales hit an estimated $252 billion last year, according that some blockbuster drugs (Claritin, to industry consultant IMS Health. At the same time, The Wall Street Journal Zoloft and Flonase) have gone off patent reports the nation’s drug companies registered the highest growth rate among over the last three to four years, have advertisers. Puneet Manchanda, associate professor of marketing at the Ross medical marketers honing in on their School, studies resource allocation and other strategic issues in pharmaceutical most eff ective strategy to date: direct-to- physician sales calls, or “detailing.” Re- marketing. Having observed the industry’s apparent addiction to mass media search does reveal a defi nite link between spending, Manchanda contends drug ﬁ rms get a better return on investment by the quality and quantity of sales eff orts appealing directly to physicians. directed to doctors and their prescribing behavior, Manchanda says, citing the ushing a steady dose of little purple of which drug to prescribe.” aforementioned Protonix. Pharmaceutical pills and sleep-inducing lunar moths, Other limitations on the category re- companies are beginning to codify their P the U.S. pharmaceutical industry duce the ROI of consumer advertising. “relationship management” techniques became one of the fastest-growing advertis- For example, the FDA requirement to with doctors, monitoring the impact of ing categories in just one decade. Th e list a drug’s negative side eff ects creates specifi c marketing eff orts on prescribing Wall Street Journal reports pharmaceuticals a quandary for advertisers looking to behavior—and using that data to custom- were the 10th biggest advertiser in 2006, accentuate the positive. Some 55 percent ize future appeals on a doctor-by-doctor spending $5.3 billion in direct-to-consumer of pharmaceutical ad dollars were spent basis, he says. (See http://www.bus.umich. ads alone. on television in 2006. Among the options edu/NewsRoom/.) But while direct-to-consumer advertising that exist for TV advertisers: Talk about a “It is not clear yet whether such strate- may be the most visible use of the pharma- medical condition, but don’t mention your gies will yield an incremental lift in sales, ceutical industry’s marketing dollar, it is drug. Talk about your drug, but don’t men- but it is clear that pharmaceutical fi rms not necessarily the most lucrative, says tion the condition. Or talk about the are looking to ‘extract as much juice’ as Manchanda. A few medical condition and your drug, but possible via such targeted mechanisms,” unique restrictions then allow enough time for the litany of Manchanda says. on the category nega- caveats, which could nullify your other- Th ey’re still looking at consumers, too, tively impact the wise eff ective sales pitch. but with less fervor than before. “Th e industry’s return on Advertisers get around this in many ways, industry was very excited about this pros- investment. And while some of which are borderline psychedelic. pect of talking directly to consumers and he doesn’t expect drug Talking beavers hawk sleep aids. Swirling has spent quite a bit of money on it,” says companies to withdraw rainbows push mood enhancers. Puff y Manchanda. “But I think they overdid it cold turkey from mass clouds promise, well, pretty much anything. and are now realizing direct-to-consumer media, Manchanda “In one TV program you may see an ad advertising is not the ‘magic pill’ they speculates the depen- about acid refl ux, fully awash in purple, once thought it was.” dence on direct-to- but no mention of Nexium,” Manchanda Th e most addicted advertisers likely consumer drug ads says. “In the next break you may see an ad will rely on the Internet to solicit confi nally may have peaked. for the ‘purple pill’ in which they say, ‘Try sumers in the future. Internet display ads “Unlike other prod- Nexium,’ but never mention acid refl ux. only counted for about three percent of total spending last year, reported Th e Wall Puneet Manchanda uct categories, a phar- So the hope is that the consumer gets the maceutical purchase purple reinforcement two or three times Street Journal. But dollars are shift ing has to be made through an intermediary and puts it together in her head. Th is allows toward sponsored chat groups and other physician, breaking the link between adver- the advertiser to get away from listing all consumer-generated media, Manchanda tiser and consumer,” Manchanda says. the negative side eff ects to the point where says, as targeted communication and “From a behavioral standpoint, the only no one wants to take the drug anymore. pre-announcements for experimental robust research fi nding we have is that But it also requires drug companies to drugs are tailor-made for small and redirect-to-consumer advertising drives buy more advertising time.” strictive brands. more traffi c to the physician’s offi ce and But buying more time does not always Deborah Holdship increases the number of people partici- sell more drugs. When the FDA asked pating in the category, but does not Pfi zer to pull Viagra ads in 2004, sales change a physician’s preference in terms were not impacted during the six-month

dividend 14 fall 2007

113756_Cs3_01_18.indd3756_Cs3_01_18.indd 1414 112/19/072/19/07 4:22:444:22:44 PMPM QUOTE UNQUOTE odka right now is a big badge pro- “Vduct, especially for ordering out. If you can get the bottle on the table, then If enough people decide you have the brand associated with the “this is a global meltdown, experience, which is the brand’s Holy Grail.” Christie Nordhielm, clinical associate professor they can make it happen. of marketing, contending that extending one badge product into another category is relatively Th e Fed is trying to prevent easy in the branding business. a self-fulfi lling prophecy from —NEWS.com.au, June 12, 2007 taking place. hen you go through deep change, Paolo Pasquariello, assistant” professor of fi nance, explaining “Wit doesn’t matter if you’re why policymakers and investors need more information before wrong. It matters that you’re moving.” the credit crisis can be solved. Robert Quinn, the Margaret Elliott Tracy Col- —BusinessWeek, August 10, 2007 legiate Professor in Business Administration and professor of management and organizations, contending that taking the fi rst step and con- nvestors need to realize that analyst f we stop thinking of the poor as tinuing those steps toward change is what is “Irecommendations cannot be entirely “Ivictims or as a burden and start important. objective. In order for them to get the recognizing them as resilient and creative —The Washington Post, August 5, 2007 best information from companies, they entrepreneurs and value-conscious con- have to develop some kind of relationship sumers, a whole new world of opportunity with executives.” will open up.” wouldn’t call it a moral issue. I James Westphal, the Robert G. Rodkey Collegiate C.K. Prahalad, the Paul and Ruth McCracken “I would call it a values issue—the Professor of Business Administration and professor Distinguished University Professor of Corporate equality of sacrifi ce. In tough times, good of strategy, addressing the strong ties between Strategy, suggesting that with creative marketing leaders get down with the troops… it brokerage analysts and company executives. and distribution, selling to the poor would creates cynicism in an organization when —Reuters, July 26, 2007 eventually generate profi ts with dramatic there is an absence of that.” growth potential as the high-density population Noel Tichy, professor of management and orga- of millions gets ever-increasing buying power. nizations, applauding Nissan and Renault CEO ere’s a way of sweetening the —Minneapolis Star Tribune, July 30, 2007 Carlos Ghosn for publicly renouncing his bonus “Hpot a little bit and apparently to take responsibility for the automaker’s poor appealing to a desire on the part of performance. shareholders to share the upside. Th e he Chinese have been very con- —Forbes, June 21, 2007 more activist the shareholder groups, “Tcerned about how to invest in the the more you’ll see this.” United States without producing the kind of political fi restorm they ran into when growth numbers rise David Brophy, director of the Offi ce for the Study of they tried to buy Unocal.” Private Equity Finance and associate professor of “GDP when foreign workers fi nance, commenting on private equity fi rms offer- Kenneth G. Lieberthal, the William Davidson are employed to tear down perfectly good ing semi-private deals to win over shareholders. Professor of International Business, expressing residences, and then to build new ones —The Associated Press, June 1, 2007 doubt that the Chinese would allow a technol- that hopefully enough people will buy to ogy company to pursue an acquisition if the justify the developers’ investment. But it

transaction were likely to draw criticism from is not clear that individual or collective well-being is enhanced in the process.” espite the hoopla over micro- the U.S. government. “Dfi nance, it doesn’t cure poverty. —The New York Times, August 25, 2007 Linda Lim, professor of strategy, commenting If societies are serious about helping the that Singaporeans who are “en bloc” become poorest of the poor, they should stop cash-rich but property-poor, and may have investing in microfi nance and start support- here’s nothing in his background destroyed the sense of home itself. ing large, labor-intensive industries.” “Tthat says he lives, breathes and —The (Singapore) Straits Times, June 21, 2007 loves cars.” Aneel Karnani, associate professor and chair of strategy, arguing for greater emphasis on Gerald Meyers, adjunct professor of management generating employment and increasing labor and organizations, musing over former Home productivity. Depot and General Electric executive Robert —Financial Times, July 27, 2007 Nardelli being named chief executive at Chrysler. —The New York Times, August 7, 2007

dividend 15 fall 2007

113756_Cs3_01_18.indd3756_Cs3_01_18.indd 1515 112/19/072/19/07 4:22:474:22:47 PMPM ALUMNI AT LARGE Bringing It All Back Home

This is a story of Hispañola. Of the directors of the stock exchange) came a former colleague at Goldman Sachs. Dominican Republic and Haiti. Of the calling in search of a new direction and “It is important for me to solidify my Ross School of Business and the MBA a new CEO. Th e country was still reeling credibility and reputation as someone from a devastating bank failure and sky- who is knowledgeable, serious and will class of 2002. It is a story about coming rocketing infl ation. As a founding board deliver,” she says of the visit to the NYSE’s home. And about making a difference. member and two-time president of Do- top brass. Th e ceremonial fanfare, photo minicans on Wall Street, Estrella was a shoot and resulting pictures that ran in hen Darys Estrella Mordán, familiar and trusted face in a relatively Dominican papers certainly help in that MBA ’02, CEO of the Domin- small circle of players. Vocal and opinion- regard. “A big part of my job has been W ican Stock Exchange, picks ated, she could off er the board connec- forging relationships with all the players up the phone on a busy Monday morn- who contribute to the regulation, super- ing, she sounds remarkably relaxed. It’s vision and activities of the Bolsa. As such, only 10 a.m., and she’s already solved a “In sharing Hispañola, I have been meeting with all the broker- major crisis. age houses and banks, the governmental “Th is morning, the electricity went we shared mutual pride institutions, international entities such as out,” she says, “which is fairly common. the International Monetary Fund and the But today the generator didn’t kick in, and admiration. Now United States Agency for International which was terrible timing because Citi- Development (USAID), and industry bank was here [at the stock exchange]. that our paths have and business leaders across all markets. We had to do some live tests; they had Th is is an exchange of information to transactions to do. All of a sudden we crossed, these common- understand past, current and expected couldn’t function. I had no choice but practices; the laws and regulations on the to move into ‘operations mode,’ fi nd the alities are established books; the technological capabilities of person who could get the power back market participants and the platform we on and make it happen. Right away.” and our friendship is provide; and the level of professional Such is a day in the life at the helm conduct needed to make these markets of the Bolsa de Valores de la República sealed; this is an aspect work at the highest level.” Dominicana, where this Ross MBA has Th e process is time consuming, but worked since April 2007. Aft er 15 years of mutual support, un- necessary, she says. Th e volume of trading on Wall Street, most recently on the fi xed has increased an historic 400 percent since income desk at Goldman Sachs, Estrella spoken understanding her arrival in Santo Domingo. “Already, we chose to make a major career change and are making progress, and it is refl ected in fulfi ll a long-held promise to herself and and respect upon which the volume and increased activity in the her country. Th e timing was fortuitous secondary market, which is now 75 per- and the move pivotal, since the Domini- both of us can rely.” cent of the total. When I came it was can Republic had just accepted the DR- just seven percent. As we raise the bar Central American Free Trade Agreement, — Darys Estrella Mordán for our own professional standards at the which opened the U.S. market to the exchange, we’ll be able to push for a more country’s goods. tions to the most developed market and normalized level of behaviors from all “I was perfectly happy at Goldman. fi nancial institutions in the world. Per- market participants. Th is is the process It is the most advanced and professional haps more important, she brought a of creating an investment culture.” climate I’ve ever been exposed to,” Estrella homegrown passion to nurture an invest- One observer heavily invested in says. “But given my deep connection ment culture and secondary market in Estrella’s success in creating that culture to the Dominican Republic, it was always this emerging economy. To say she hit is Ross classmate and friend Al Leandre, a dream of mine to be able to return and the ground running is an understatement. MBA ’02. Haitian by descent, Leandre give back to my country in some meaning- A week before she spoke to Dividend, founded the Maryland-based manage- ful way, if the right situation came along.” Estrella was back on Wall Street with Bolsa ment consulting fi rm Vyalex in 2002. Th at situation came along in summer delegates, meeting at the New York Stock Leveraging his background in aerospace 2006 when the “Consejo” (or board of Exchange with then-CEO John Th ain, engineering, Leandre developed the com-

dividend 16 fall 2007

113756_Cs3_01_18.indd3756_Cs3_01_18.indd 1616 112/19/072/19/07 4:22:484:22:48 PMPM far more incremental and long-term than Now they are connected as colleagues hers. He attended the 2006 inauguration on a mission to invest not only in their of Haitian President Rene Preval, and is nations, but in each other. cultivating relationships with offi cials in “We are both fi ercely proud of our the government, USAID and other agen- native roots and national identity,” says cies. Recently he formed an advisory pact Estrella. “Th is is something we supported with a group of New York-based Haitian each other in and never felt at a loss to expatriates who have created a capital fund. promote. As people of privilege in the Vyalex will advise the fund managers U.S., we were both acutely aware of how on consolidating risk and other factors our experiences could someday translate as the group builds a resort in the long- to future resources and connections for our suff ering country. native countries. In sharing Hispañola, In many ways, Leandre is starting from we shared mutual pride and admiration. pany on a steady diet of Department of ground zero both literally and fi guratively. Now that our paths have crossed, these Defense contracts. But his underlying Haiti’s deforested landscape is just one commonalities are established and our mission was to launch a global division crude manifestation of the economic and friendship is sealed; this is an aspect of to encourage development of entrepre- social devastation that has nearly destroyed mutual support, unspoken understanding neurial infrastructure in his home country, the country. But he is not cowed by the and respect upon which both of us can rely.” which is plagued by a legacy of bloodshed, challenges posed by political instability During a September 2007 visit to turmoil, corruption and extreme poverty. and ongoing violence. Estrella’s home in Santo Domingo, there “At Michigan, I attended a conference was little talk of business and politics. where [then-Dean] Joe White made the Th e economic challenges of their respec- point that it’s business, more so than gov- tive countries were put aside in favor of ernment or any other force, that has the dinner and drinks, friends and family. And ability to bring about sustainable peace,” much like their personal bond, the ideal Leandre says. “Th at stayed with me.” relationship between their two countries It was on a school-sponsored trip to is one that is independent and sustainable Cuba that he and Estrella began their for all of Hispañola, Estrella says. “Th e futures of both countries cannot be bifurcated,” she says. “Th erefore, whenever possible, we must consider shared opportunities for future impact. It is a process that will take time. Yet, I am an optimist. At least Al and I are doing our part to try to make this possible.” Deborah Holdship

In 2006, Vyalex Global unveiled the online portal buildhaiti.com to connect members of the Haitian diaspora in es- tablishing city-by-city economic and social development nationwide. Th e goal of the site is to showcase urgent needs and opportunities in major Haitian cities and towns, off er Haitian businesses technologi- PHOTOS BY STEVE KUZMA cal solutions and provide a transparent system to accommodate fi nancial contri- dialogue about a shared vision to return butions for each project. Leandre describes to their roots and create an impact. Now the site as the one place where people can that his classmate and friend is running access unbiased information about what- the Dominican Stock Exchange, Leandre ever is happening in the country. hopes to see that vision come to fruition. “We hope to create enough businesses, “Th e outstanding thing is that while I am enterprises and entrepreneurs so there on one end working to build an entrepre- is economic growth that is not tethered neurial class and sustainable job growth to the government or any NGO,” Leandre in Haiti, Darys is creating a mechanism Read a full-length Q&A says. Areas of focus include travel and to generate wealth, stimulate growth and with Darys Estrella Mordán tourism, agriculture, construction, tele- allow those entrepreneurs to be successful,” communications and service providers. Leandre says. at www.bus.umich.edu/estrella Much like Estrella, Leandre spends his When they fi rst met at Michigan, days making the pitch for economic sus- Estrella and Leandre connected as scholars tainability, but his horizon for change is and parents, as friends and neighbors.

dividend 17 fall 2007

113756_Cs3_01_18.indd3756_Cs3_01_18.indd 1717 112/19/072/19/07 4:22:504:22:50 PMPM ALUMNI AT LARGE do not do that currently, but I will fi gure it out.” As a result, we developed a system at IFS called Flippid.com. Since then, I formed a relationship with the Elizabeth Glaser Pediatric AIDS Foundation. I’ve Selling for the Stars auctioned off props from diff erent Mark Burnett productions: Survivor, Th e Con- ANDY ARVIDSON, BBA ’89 tender, Th e Apprentice. Th ese are one-of- a-kind collectibles that can be fragile or ‘‘Lights, camera, action” is not a phrase one tends to hear in the order fulfi ll- oversized (like a contestant’s torch from ment business. “Pull, pack and ship” is more like it for this backstage player Survivor), and IFS has the expertise to crate and ship them at cost-eff ective prices. in the direct response industry. Since 2002, I’ve helped raise more than But at Imagine Fulfi llment Services (IFS), founded and owned by Andy $1 million for the Pediatric AIDS Foun- Arvidson, BBA ’89, things are about to change. Taking his latest cue from dation through online auctions. nearby Hollywood, the Torrance, California-based entrepreneur just launched IFS-Television. The new video production unit will create short- and long-form Dividend: I see you contribute to a lot infomercials for clients who seek more from their fulfi llment house than of great charities in interesting ways. warehousing, distribution and billing of products sold online and on TV. Arvidson: Th e Wheelchair Foundation IFS, headquartered in close proximity to the port of Los Angeles, already is a big cause in the direct response indus- offers clients innovative shipping options, real-time inventory tracking and try, and I created and executive produced fi nancial management systems, data storage and analysis, online auction the Inaugural Los Angeles Wheelchair services and myriad other functions. Its 300 full-time employees serve clients Foundation Dinner at Trump National Grand Ballroom in Rancho Palos Verdes, ranging from major fi lm studios and record companies to beauty mavens and California, in October. Creating these gala fi tness gurus. Some 200,000 items can be counted in the 300,000 square events is totally diff erent from the order feet of space Arvidson has amassed since opening his fi rst order fulfi llment fulfi llment world. I do this warehouse in 1997. There are wonder cookers, light sabers, miracle knives, purposely to get out of steam cleaners and much more. my comfort zone so I IFS’ annual revenues hit $14.2 million in 2006. Now, with IFS-TV, Arvidson can test my capabilities. hopes to capitalize on a bold competitive edge in the direct marketing space. Dividend: It’s ironic: for someone who is in the ividend: Tell me how IFS-TV came Arvidson: Lasik Spa in Los Angeles is a business of putting things to be. perfect example. I’d been talking to them in boxes, you think very DArvidson: Th e city of Torrance did over time, but now that I have the video much “outside the box.” a documentary on my company to promote side working, I said, “Let me create an Arvidson: At the Ross local business. I invited the crew to Re- infomercial for you.” I produced a spot School, my focus sponse Expo, a major trade show for the where I actually underwent the short out- was marketing, direct response industry, to cover a big patient procedure to repair my vision. Th e sales and business networking event I had organized. As we infomercial was unveiled on September 30 development. walked around the tradeshow fl oor, I saw and airs on West Coast media and Inter- I always favored how eager people were to be on camera net outlets. the classes that had and get video exposure for their products. simulations or put Dividend: Where does the fulfi llment side us into real-life Dividend: How does IFS-TV fi t into your come into the picture for a service like Lasik? experiences that fulfi llment business? Arvidson: Lead generation. You are sup- forced us to be Arvidson: It’s an ideal way to get in the plying qualifi ed leads, not the actual pro- creative. In my door. Normally, I would get a meeting, walk cedure. People call an 800 number and business, clients in and give my fulfi llment pitch. Now I go that data is fed to the company’s sales have very high in and state: “I own IFS-TV. I’m a supplier force. Major Fortune 500 companies are expectations, and and a marketer. I’d like to interview you looking for additional revenue streams, the business is and do a spot about your product.” People and lead generation is a great one. always changing love it. And once they have a positive and evolving. experience with me on the video side, Dividend: Online auctions are another Michigan taught I get the meeting for the fulfi llment con- unique service you off er. And much like me to think tract. I saw what a competitive advantage IFS-TV, that service came about in an critically, write I could exercise if I developed this value- unconventional way. eff ectively and— added part of the business. Arvidson: I learned the auction business most important for about eight years ago when 20th Century me—to be creative. Dividend: Give me an example of how a Fox asked if I could sell television and video production led to a fulfi llment contract. movie props for them on eBay. I said, “I Deborah Holdship

dividend 18 fall 2007

113756_Cs3_01_18.indd3756_Cs3_01_18.indd 1818 112/19/072/19/07 4:22:594:22:59 PMPM THE GREAT DIVIDE AMERICANS’ UNIQUE WORK WAYS SET THEM APART

s Americans expand their business interests throughout the world, ethic, which holds that work has value in they increasingly encounter different cultural norms and business itself. When you combine these two things, A practices. Sometimes subtle cultural differences sabotage business you get an image of what makes America unique in its approach to business. transactions. Ross professor Jeffrey Sanchez-Burks sees this as a cultural collision of incompatible perceptions of how business should be conducted. In Dividend: How does this cultural varia- his research, the assistant professor of management and organizations docu- tion in relational attunement impact ments unique American work ways and investigates challenges to intercultural communications in international business business relations in the global economy. His ﬁ ndings, discussed in the follow- transactions? Sanchez-Burks: Th ere’s a widely held ing Q&A, provide understanding of how culture shapes fundamental assump- stereotype that East Asians are indirect tions about business relationships, and the implications for intercultural and pay attention to saving face, while organizational behavior. Americans are direct. However, in comparing Americans’ and Asians’ communications patterns of indirectness and directness, Dividend: What makes the American pay so much attention to saving face and both at work and outside work, my col- workplace diff erent from those in other why the Italians are so emotional. Rarely league Fiona Lee and I found there was industrialized societies? do we look inward to try to explain the no diff erence in levels of indirectness Sanchez-Burks: In looking at intercultural unique, rich traditions of American busi- between the two cultures when we asked business relations, we fi nd the United ness practices. people to think explicitly about commu- States is somewhat of an anomaly—what nicating outside the workplace. Th e cul- Alexis de Tocqueville called American Dividend: Why has America’s business tural divide became very substantial and Exceptionalism—compared to Asian, culture evolved this way? signifi cant when we compared the patterns European and Latin American societies, Sanchez-Burks: German sociologist Max in the workplace. Th is has two major impli- in terms of how we make sense of social- Weber and others have hypothesized, and cations. First, where cultures diff er the emotional aspects of work, and how this our research has demonstrated to be true, most is in the context of work. Th at is varies across the work/non-work divide. that the early Calvinists left an imprint on really important because work is where In the United States, it is more common to Americans’ approach to work. Although people from diff erent cultures are most have a deep-seated belief that emotional their imprint has lost its connection with likely to interact. Second, culture shouldn’t and relational concerns play less of a role religious ideology, it continues to this day be thought of as a personality. It depends in the workplace than outside work. Ameri- for a number of reasons. First, when you upon the situation. cans take a more task-focused, rational put aside relationships at work, it allows approach on the job; although outside you to do business with people, regardless Dividend: What about trust? work, we’re very social, emotional and of your connection to them. Your business Sanchez-Burks: In many parts of the relational. Th e tricky part is that we don’t transactions are not based on prior inter- world, cues of trust are based on cues that think of this diff erence as a cultural eff ect. personal history. You’ll even do business individuals pick up in an interpersonal Instead, we assume it’s just the way you do with people you hate, and that opens up context. Well, in the United States we business. As a result, we try to come up a host of opportunities. Th is approach is don’t have that context in business situa- with explanations for why the Japanese closely associated with the Protestant work tions. So what do we do? It turns out we

dividend 19 fall 2007

113756_Cs3_19_20.indd3756_Cs3_19_20.indd Sec1:19Sec1:19 112/19/072/19/07 4:48:394:48:39 PMPM rely more on con- their co-workers outside the workplace. I think there’s a lot that needs to be done tracts than trust, and Two interesting fi ndings came to light. to convince U.S. executives and American turn to the courts First, the United States is very low com- students how important this can be in a when contractual pared to India and Poland. Americans global economy. agreements are vio- literally have two diff erent social worlds lated. Where this gets and networks, one professional and an- Dividend: What adjustments must a foreign- tricky for Americans other personal. Th ey want some aspects company expatriate, global businessperson doing business in a of their life to remain separate from work. or immigrant make when starting work global economy is Second, this pattern of disconnection in an American fi rm? that the legal system between professional and social lives in Sanchez-Burks: In a recent research paper, worldwide is not the United States is getting stronger over my colleagues Emily Heaphy and Sue nearly as eff ective as time. Yet, interestingly, Americans are Ashford and I looked at how American Jeffrey the U.S. legal system, working slightly fewer hours, marrying culture shapes the way we judge other Sanchez-Burks so there’s not the later and waiting to have kids. All the people’s level of professionalism. Americans same enforcement demographic features that would make it have a common expression, “act profes- mechanism. Th is can put Americans who easier to interact with co-workers outside sional,” which is a culturally loaded term underappreciate cultural diff erences in the workplace are moving in one direc- because the words themselves are defi ned work ways at a disadvantage. tion, while Americans are moving in the diff erently in other societies. In the United opposite. One way of interpreting this is States, the phrase implies that an individual Dividend: What about creativity and negative. Another way is positive—how is behaving too much like he or she might productivity? refreshing to have a world of work and a outside the workplace. We found one way Sanchez-Burks: It’s really a double-edged separate private world. people violate this taboo is by talking about sword. Being able to focus directly on the non-work matters or by having too many task provides many opportunities to get Dividend: Is there a link to emotional artifacts in their offi ce that reference their things done. Our latest research shows energy? personal life. Corporate recruiters told us Americans have a very distinct optimism Sanchez-Burks: We originally thought they shied away from hiring individuals for being able to press on and succeed in Americans would be more energized by who indicated they would try to build a team, even when people hate each other. maintaining two separate networks, which rapport with a prospective client by making It’s ironic, because all the published data would be consistent with norms in the U.S. slight references to that client’s personal suggest Americans are wrong—that teams culture. As it turned out, that was not the life. It’s very subtle. Ironically, even though actually do worse when they have relation- case. Everybody we interviewed in the an individual is trying to build rapport, it ship confl ict. But we’re starting to exam- United States, India and Poland seemed to is best to begin with a polite impersonal- ine the possibility that this American derive more energy from co-workers they ity and then adjust based on the individual optimism is a useful perspective for two see outside the workplace. So there’s a cost and specifi c cues in the situation. Learning reasons: First, people won’t always be right to this strengthening pattern of isolation. these nuances is important for students and about their predictions (of not being able businesspeople who come to the United to get along with others), and second, a Dividend: Do Americans have to make States from abroad, if they want to succeed. team in which such optimism is shared major adjustments when they do business among the group just might be able to with people from other cultures or take Dividend: What, if anything, can Ameri- prevail against the odds. Americans invoke job assignments overseas? can companies, managers and workers this wonderful cultural expression, “let Sanchez-Burks: Again, I think it’s a double- themselves do to improve their satisfac- bygones be bygones.” It is a very foreign edged sword. Th ere are aspects where tion and eff ectiveness in cross-cultural concept to people abroad to say, in a task- Americans have a competitive advantage business situations? focused way, let’s put emotions aside. I in a global economy, and there are aspects Sanchez-Burks: Th ey can recognize the think people from other cultures get a that can put them at a disadvantage if they subtle ways in which culture contributes distorted view of us when they only do are not prepared. Americans can have an to the success and well-being of the rela- business with Americans but don’t social- advantage because they are more willing tionships in the workplace. It’s a diverse ize with them outside work. to do business with people quickly rather world, and Americans oft en become very than waiting to build long-term relation- frustrated in intercultural settings because Dividend: Do you see a trend in the United ships. On the other hand, Americans face they don’t understand the fundamental States toward social isolation and a decrease a challenge in trying to understand what diff erences between their work ways and in friendship ties between co-workers out- aspects of our approach to business are those of people in other societies. Given side their work environment? unique to our culture versus more universal. our global economy, in which companies Sanchez-Burks: In other cultures, my I’ve spent time with executives from Luft - are dealing with suppliers and customers colleagues Olenka Kacperczyk and Wayne hansa, Swiss Air, Fujitsu, Panasonic and around the world, this is a ripe time to try Baker and I have found that the level of Deutsche Bank, and all of them had stories to understand and map these cultural social-emotionality is more constant about doing business with Americans. diff erences and to prepare for better coor- across the work/non-work divide than it Very few of those stories were fl attering. dination across these divides. is in the United States. To measure that Th ese executives are a bit taken aback by Claudia Capos divide, we looked at India, Poland and Americans’ inattention to the emotional America to gauge how oft en people see and relational aspects of work. As a result,

dividend 20 fall 2007

113756_Cs3_19_20.indd3756_Cs3_19_20.indd Sec1:20Sec1:20 112/19/072/19/07 4:48:434:48:43 PMPM PHOTO BY VEER/CORBIS

t’s said a picture paints a thousand and fellow academic Stuart Hart of Cor- words. Which is why Ted London nell University fi rst broke ground on the “Our goal for the I used the same image of African revolutionary school of thought centered schoolchildren to open and close the on what they termed the “bottom of the conference was to September conference “Business with pyramid.” In short, the two proposed that Four Billion: Creating Mutual Value at innovative business strategies could serve build on the growing the Base of the Pyramid.” and empower some four billion people London, a leading expert on the role who live on less than $2 per day, typically and impact of market-based strategies on in developing countries. Instead of per- global interest in poverty alleviation, was eager to put a ceiving the poor as victims who can only face (or four billion faces) on the world’s be helped through donations, their theory venture-based strate- poorest citizens—those who exist at the holds that the poor are resilient and cre- “base of the pyramid,” or BoP. As director ative entrepreneurs who also are value- of the BoP Research Initiative at the Wil- demanding suppliers and consumers. gies for serving the liam Davidson Institute (WDI) at the In his research at WDI, London is University of Michigan, he felt the picture pushing BoP thinking beyond Prahalad four billion poor at the would be a powerful reminder to confer- and Hart’s foundational work toward the ence attendees of what is at stake in BoP next signifi cant phase: alleviating poverty. base of the pyramid.” research and activity. Th is was his primary goal in organizing “Including these four billion people the “Business with Four Billion” forum, —Ted London in the global capitalist system is perhaps which was held at the University of Mich- one of society’s greatest challenges,” said igan on September 9-11. London. “Our goal for the conference was “WDI has taken a leadership role in to build on the growing global interest in exploring the unique dimensions of the venture-based strategies for serving the BoP perspective on poverty alleviation,” four billion poor at the base of the pyramid.” he said. “In particular, WDI’s expertise It’s been a decade since noted Ross lies in a deep understanding of the oppor- School of Business scholar C.K. Prahalad tunities for implementing [the BoP per-

dividend 21 fall 2007

113756_Cs3_21_23.indd3756_Cs3_21_23.indd Sec1:21Sec1:21 112/19/072/19/07 4:49:384:49:38 PMPM spective] in the fi eld, an ability to evaluate Above left, Erik Simanis, co-director of the the full range of poverty alleviation im- BoP Protocol Project, shares some standard pacts of BoP ventures, and a collaborative practices in working at the base of the pyramid. approach to creating business models that Above middle, a conference attendee promotes incorporate the voices of those at the base an innovative product designed to improve of the pyramid.” the quality of life for the poor. Th e “Business with Four Billion” forum was co-hosted by WDI and the Cen- Above far right, BoP conference attendees ter for Sustainable Global Enterprise at observe the demonstration of a clean water Cornell University. Th e event drew nearly product. 400 people from more than 30 countries and six continents. Attendees included business managers, policymakers, social agencies at the base of the pyramid to under- Rob Katz of the World Resources Institute entrepreneurs, academics, nonprofi t ex- stand and enhance the poverty alleviation speaks with conference participants during perts and development agency profes- implications of diff erent types of business a networking session. sionals eager to explore ways in which ventures, which is crucial in maximizing BoP thinking could be used to alleviate positive local outcomes, London noted. poverty. Sponsors included the Ross Forward movement to maximize posi- “Is globalization good School, the Frederick A. and Barbara M. tive outcomes is critical, agreed Prahalad, Erb Institute for Global Sustainable En- the Paul and Ruth McCracken Distinguished or bad for the poor? terprise at U-M and Procter & Gamble. University Professor of Strategy at Ross Moving forward, London said, WDI will and a WDI Distinguished Fellow. But while That is the wrong continue to pursue fi eld-based collabora- hastening progress to alleviate poverty is tions, conferences and research partner- important, he warned that the industry formulation of the ships to enhance the world’s understanding can only do so “if we know where we are w of market-based approaches to alleviating going.” For example, Prahalad cited a question. It should poverty. subtle way in which the rephrasing of a “Th at’s WDI’s niche,” he said. “WDI common question could redirect policy be, ‘How do we and Ross have great competence in the for BoP strategists. business strategy of BoP with [Prahalad] “Is globalization good or bad for the make globalization and others. As a complement to that, poor?” he asked, touching on a timely WDI has expertise in this new poverty topic. “Th at is the wrong formulation of work for the poor?’ ” alleviation perspective. Our goal is to create the question. It should be, ‘How do we —C.K. Prahalad and share new actionable knowledge that make globalization work for the poor?’ ” has immediate practical implications.” Such Although there are “no universal solu- activities will improve the capabilities of tions” to moving people out of poverty, companies, nonprofi ts and development Prahalad challenged attendees to innovate

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113756_Cs3_21_23.indd3756_Cs3_21_23.indd Sec1:22Sec1:22 112/19/072/19/07 4:49:414:49:41 PMPM within the confi nes of multilateral aid CEO, CARE USA; Al Hammond, vice to keep the discussion going well into the agencies and NGOs to create ways in president, World Resources Institute; Scott future. Robert Kennedy, WDI executive which globalization can benefi t everyone. E. Johnson, vice president, SC Johnson director, said he sensed less tension among Companies that have applied BoP think- & Son; Luis Alberto Moreno, president, the diff erent sectors than he did three ing in emerging markets (or are thinking Inter-American Development Bank; Carter years ago at the last BoP conference in about doing so) include SC Johnson & Roberts, president and CEO, World Wild- San Francisco. “I believe there is a sense Son, Unilever, CEMEX, DuPont and life Fund; and Timothy Mahoney, director of community here,” he said. Kennedy Procter & Gamble, among others. of the Offi ce of Poverty Reduction, USAID. urged the group to maintain a regular, Prahalad also outlined a few issues that Each specialist shed light on issues that ongoing forum that encourages collabo- should inform forthcoming BoP eff orts, organizations interested in operating at ration among diff erent economic, cultural including increased income, income in- the BoP must consider, including cultivat- and religious sectors. equality and income mobility. ing a deeper awareness of the landscape “We need to have a better understanding Th e primary focus should be on how at the base of the pyramid, evaluating of what’s unique about a BoP approach to we move people out of abject poverty the development implications of a BoP poverty alleviation compared to other and deal with income inequality, he said. approach to poverty alleviation and de- strategies,” London noted. Th e “Business Noting a rapid shift of people away veloping new organizational capabilities with Four Billion” conference was an from abject poverty in the past decade, needed for successful BoP ventures. important step in reaching that under- Prahalad said BoP proponents should Hart noted that in moving forward, standing. “At the conference, we had an begin focusing on price-performance adherents of BoP will have to address explicit set of questions on this issue and forces and the environmental implica- the following four concerns: folks were diving into it,” he said. Future MBA candidates who are interested in the fi eld will benefi t from the competitive edge Ross and WDI have to off er, London concluded. www.bop2007.org Videos of the conference speakers, along with their presentation slides, are available at www.bop2007.org. tions of poverty alleviation. Can the planet handle it? Dan Shine He was just one of several high-profi le What’s in it for the poor? speakers lending expertise to the “Busi- Are corporations up to the challenge? ness with Four Billion” conference. Other Can BoP be an antidote to terrorism? key speakers included: Hart, who is the Samuel C. Johnson Chair in Sustainable “BoP is the innovation opportunity of Global Enterprise at Cornell University the century for sustainable technology,” and a distinguished scholar of WDI; said Hart, who is on sabbatical this year at Kobus De Klerk, global lead, the Solae WDI and the Erb Institute. Company; Helene Gayle, president and Th e conference closed with a pledge

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113756_Cs3_21_23.indd3756_Cs3_21_23.indd Sec1:23Sec1:23 112/19/072/19/07 4:49:434:49:43 PMPM

A Merger of Equals After 60 Years, Two Business School Alumni Get Back Together

n the fall of 1941, a young woman the school,” Bernie says. “So my friend Molly Winokur and Bernie Kozel dressed for a from Detroit and a young man from and I applied and were accepted. I was night on the town, circa 1941 I Rochester, New York, shared a few on a combined curriculum in the College dances in Ann Arbor, unaware of how, of Literature, Science and the Arts and more than half a century later, chance the Business School, which would have in the 1944 graduating class. “I also would reunite them. enabled me to get an MBA in fi ve years.” worked on the Michigan Daily, and, be- Just months before the Japanese attack Bernie’s fi rst impression of Molly cause many of the fellows had gone off on Pearl Harbor, the University of Michi- stayed with him. “She was extremely to war, I became the advertising manager. gan campus was roiling with anxious good looking and also a very clever Th e next year, I became the Daily’s fi rst anticipation about the war in Europe woman,” he laughs. “We had very good female business manager, which aug- even as students danced in the Michigan times together.” mented my experience in Business Union to the big-band sounds of Woody Th e war, however, put a limit on those School.” She encountered no problems Herman, Tommy Dorsey and Glenn Miller. good times. Like many Michigan stu- as a woman in a traditionally male educa- At 17, Molly Winokur had just trans- dents, Bernie enlisted in the U.S. Army. tional stronghold. “Don’t forget, there ferred to Michigan from Highland Park In his senior year, he was called for duty, was a war on, and we all did what we had Junior College to begin her sophomore just 11 hours short of completing his to do,” she remarks. “I never felt I was year when she was introduced to Bernard bachelor’s degree. “All of a sudden,” Molly being segregated because I was a girl. I Kozel by his cousin from Detroit. She was recalls, “Bernie was gone. Off to war. I was just one of the boys.” Molly majored considerably younger than Bernie, having always wondered about him, but he never in economics with a minor in psychology, graduated two years ahead of her class wrote to me, probably because he had a and took the full regimen of required at Detroit’s Central High School. Her girlfriend back in Rochester.” parents had insisted the 16-year-old at- Th e war changed Molly’s trajectory tend junior college for one year before as well. She had intended to major in Bernie’s ﬁ rst impres- enrolling at Michigan. “Going to the history, but changed her mind aft er her University of Michigan was everybody’s father allowed her brother, Jack, to join sion of Molly stayed dream,” she recalls. “Michigan was a pres- the U.S. Army Air Forces as a pilot before tigious school, and I was lucky to get in.” he turned 21. “I worried that my brother with him. “She was Bernie was a member of Kappa Nu might be killed, so I decided to enter the fraternity and, Molly remembers, “a great Business School in case my Dad needed extremely good look- dancer.” He grew up in Rochester, New my help to run our family heating and York, where his father, a self-educated air-conditioning business, A. Winokur ing and also a very Russian immigrant, ran a scrap-metal Co., in Detroit,” she says. Two years later, business. During high school, Bernie Jack was shot down over the South clever woman. We was an all-around athlete, who was more Pacifi c. focused on his sports activities than on In her junior year, Molly transferred had very good times his studies. “My friend’s sister graduated from the College of LS&A to the Business from Michigan and highly recommended School, where she was one of three women together.”

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113756_Cs3_24_27.indd3756_Cs3_24_27.indd 2424 112/19/072/19/07 4:51:174:51:17 PMPM business courses, as well as complemen- Student dance at the Michigan Union ballroom tary classes at the College of Engineering. “Don’t forget, there in the early 1940s (photo courtesy of Bentley She also maintained an active social Historical Library) life on campus, volunteering for the USO was a war on, and and holding sorority parties for soldiers and sailors who attended on-campus we all did what we leaving him with a pool of cash. “I didn’t offi cer-training programs. “Th ere were want to retire, so I went into venture- four men to every girl, and I sometimes had to do. I never capital investment where I could apply had four or fi ve invites for dates on week- my business skills and experience to ends,” she chuckles. “I worked on the felt I was being seg- help the local economy,” Bernie explains. Junior Hop and was a founder and vice “Starting with modest funds, my partner president of Sigma Delta Tau sorority’s regated because I and I made investments in 26 to 30 com- U-M campus chapter.” panies, and I’m still active on the boards While Molly remained at Michigan, was a girl. I was just of four of them.” At its peak, their VC Bernie was selected initially by the Army fi rm, KG Capital Corporation, had sev- to study Spanish at the University of Wy- one of the boys.” eral million dollars under management oming with fellow recruits in preparation and succeeded in creating many new for the occupation of Western Europe. return civilian items to the Japanese,” he jobs in the Rochester area. “We learned He later applied those credits to his Mich- says. “My University of Michigan busi- the trade quickly and did very well.” igan degree program and offi cially re- ness training enabled me to be an eff ec- Aft er Molly earned her BBA in 1944, ceived his bachelor of arts degree in 1961. tive problem solver and decision maker.” she landed a job with a small fashion- Bernie’s Army career did not go quite the Aft er he was discharged from the advertising agency in Detroit for a salary way he anticipated. “Th e Army decided Army, Bernie returned to Rochester in of $25 per week. Th ree months later, it didn’t need us in Europe. So instead of 1946 and went into business. “My father she was hired as a copywriter at Federal getting a commission, I was stuck in the said, ‘You’re too well-educated to get Department Stores for $55 per week. infantry carrying a Browning automatic involved in the scrap business.’ So we Her next move was to Federal’s subsid- rifl e.” He was moved to California, where formed a structural-steel contracting iary, Goodwin’s, where she was promoted troops were preparing for the invasion of fi rm called J. Kozel & Son, and I ran the to advertising manager for $110 a week, Japan, and then to Georgia for infantry- company.” Bernie married his hometown a heft y sum in those days for a 21-year- offi cer training. Aft er he received his girlfriend, Ann Levin, in December 1947. old woman. “It would never have hap- commission as a lieutenant, Bernie was Business fl ourished, and their family pened if the guys were around,” Molly shipped overseas to the Philippine Islands. grew with the birth of two children. observes. A year later, two friends sug- Later, during the post-surrender occupa- In 1957, Bernie bought Kayex Corp., gested starting their own advertising tion, he was stationed in Japan for 12 which manufactured machinery to pro- agency, called Winston Cooper. She months. “I was in charge of a 30-mile- duce crystal wafers for the semiconductor jumped at the chance. Each woman bor- radius area around camp where we had industry. He headed the fi rm until 1981, rowed $500 from her parents, and together to destroy Japanese war materials and when General Signal Corp. bought it, they opened an offi ce in the Charlevoix

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113756_Cs3_24_27.indd3756_Cs3_24_27.indd 2525 112/19/072/19/07 4:51:214:51:21 PMPM Tappan Hall, the Business to a company in Cincinnati, and the School’s home in the early Foremans moved there in 1975. Molly 1940s (photo courtesy of was told by her husband that the ladies Bentley Historical Library) in their social circle did not work, and that if she wanted to work, she shouldn’t talk about it. With that in mind, she pur- the fi rst of her two children, sued freelance jobs, writing copy for a she was told by Doner & major Cincinnati advertising fi rm and Co. that she could “only producing a catalog for Palm Beach stay until I showed.” In the Clothes, a nationally known men’s cloth- advertising business, she ing company. She never discussed her faced increasing resent- career or jobs with her friends. ment over the size of her In 1980, the Foremans moved to Boca paycheck. One controller Raton, Florida. “I was going to retire, commented: “You know, travel with my husband, watch him play you’re taking this salary in senior tennis tournaments and have away from a man who is the head of a household.” In 1950, Molly’s father died. She took control of A. “We’re soulmates, Winokur Co. and ran the family business for four and we just picked years. “I found a couple of ways to improve the equip- up where we left off. ment-installation process, but my employees resisted It seemed like it was because these changes eliminated time on the job,” meant to be. He’s a explains Molly, who was then 26 and the mother of a great guy and ﬁ lled young baby. “I had to fi re the shop steward because a void in my life.” building in downtown Detroit. “What he wasn’t obeying instructions.” Th e did we know? It was fun for us!” Molly morning aft er the fi ring, she was greeted exclaims. Eventually, all three partners at the shop by a sullen-faced crew that fun,” Molly says. Th en her daughter, Amy got married, and, aft er two moved away, demanded she reinstate their shop stew- Jo, and her new husband moved to Boca, Molly was left running the business with ard. Molly stuck to her decision, and later intending to open an advertising fi rm. “Th ey several employees. When advertising hired a new foreman who ran the opera- asked me to join them. I said I would rather magnate Wilfred B. Doner, the founder of tions according to her specifi cations. not.” But Molly relented. Aft er working W.B. Doner & Co., made her an “off er I Aft er selling her family’s company, with them for three years, she opened a couldn’t refuse” in 1949 to become an Molly resumed her career in advertising. sister public relations company, Foreman account executive, she turned the home- She launched several successful business & Associates, and in time the all-woman grown business over to her staff and ventures, among them Molly Zimmer- agency became the 12th largest in south- joined the larger Detroit fi rm. man & Associates in Chicago, which east Florida. By the early 1980s, men’s Molly’s fi rst husband, Milton Zimmer- started in a small offi ce on chic Michigan attitudes toward women had changed. man, a division manager for Columbia Avenue and became the premier fashion- “It was like day and night,” Molly re- Pictures, had his own ideas about his advertising boutique in the Windy City. marks. “Men were much more respectful wife’s career plans, however. “He said it “I only hired women, because I had been and actually listened to what you had to was okay if I worked, as long as I didn’t discriminated against,” she says. “Women say.” In 1986, the 14th year of their mar- wear a hat and act like a tough woman pay more attention to detail, and are more riage, John was stricken with pancreatic buyer— and as long as I was home for persevering and dedicated to their jobs. cancer and died. dinner,” she remembers. “When I told my I believed in fl exible hours, because I Th e story of Molly Foreman and father I was getting married and wanted knew there was a lot of talent among Bernie Kozel might have ended there, to work, he said, ‘What do you mean women with children who could only if Molly hadn’t taken up duplicate bridge you’re going to work? Let your husband work part-time.” in retirement. “I was sitting at the bridge take care of you.’ ” In 1970, Molly’s husband Milton died table one day in 2001, and another player Carving out a successful career as a suddenly. A year later, the young widow said he was from Rochester, New York. woman in the late 1940s, when so many met John Foreman, a businessman and well- I mentioned a couple of people, including war veterans were returning to the work- known sportsman, and they married in Bernie, whom I’d gone to school with. force, proved tougher than Molly antici- 1972. Just three years into that marriage, Th e bridge player told me Bernie had pated. When she became pregnant with John sold his clothing-manufacturing fi rm a vacation house down in Boca, and I

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113756_Cs3_24_27.indd3756_Cs3_24_27.indd 2626 112/19/072/19/07 4:51:274:51:27 PMPM thought, well, maybe we could get to- community in Boca Raton. “We’re soul- Company B-4 entering the Michigan Union gether someday.” Molly called Bernie’s mates, and we just picked up where we at “chow time” (photo courtesy of Bentley Rochester offi ce, and the two met for left off ,” Molly remarks. “It seemed like Historical Library) coff ee in February 2002 during one of it was meant to be. He’s a great guy and his Florida visits. Th ey continued their fi lled a void in my life.” Says Bernie: “We friendship, and a year and a half later, did hit it off right away. She had a good soon. “We enjoy watching football, basket- following the death of his wife who had understanding of what I was doing in ball and tennis on television together,” been suff ering from Alzheimer’s disease, my business. Fortunately, we got together Molly says. “Bernie explains what’s hap- Bernie popped the question to Molly. again. It was a real break for me, and pening to me because he always has been She remembers: “We were at Bernie’s things are going well for us.” involved with sports.” She uses her hy- home in Rochester, and he said, ‘I can’t Last year, Bernie sold his house in phenated last name, Foreman-Kozel, in imagine being here any longer without Rochester and became a permanent Florida “so my friends will still know who you.’ I asked, does that mean you want Florida resident. Th e couple summers in I am,” and continues to do pro bono work to marry me? He said yes.” Th ey married Rochester, now in a rental apartment, so for the Boca Raton Symphonia and the in July 2005, 64 years aft er their fi rst Bernie can remain active on the boards of Memorial Art Gallery in Rochester. meeting at Michigan. his venture-capital portfolio companies. Bernie and Molly also remain avid Now in their 80s, Molly and Bernie He is learning the new rules of bridge U-M football fans and loyal supporters of reside in a country-club condominium “with the guys” and plays socially with the University. Recently, they gift ed Molly. Although a back injury has cur- $200,000 to the Ross School, which will tailed his golf game, Bernie hopes to be be matched by the University, to establish Bernie and Molly together again after more than out on the tee hitting a few balls again the Bernard and Molly Foreman-Kozel 60 years Scholarship Fund for business students. “It thrills me to see how Michigan has grown and progressed over the past 60 years, particularly the Business School,” Molly says. “I believe the future of America lies in education. We both benefi ted from our education at Michigan, and whatever we can do to help young people achieve higher education will be good for them too.”

Claudia Capos

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113756_Cs3_24_27.indd3756_Cs3_24_27.indd 2727 112/19/072/19/07 4:51:324:51:32 PMPM LISTEN BEFORE YOU LEAD

When legendary Wolverines football coach Bo Schembechler passed away in reason and that reason, I think this is the November 2006, it was as though he took a bit of the University of Michigan way we ought to run this play next time.” Now, I’m just some young college with him. For three decades, Schembechler infused college football with his coach watching this, and I’m leaning in, boisterous passion and endearing ferocity. Often described as the consummate trying to hear every word, waiting to see coach’s coach, Schembechler combined a remarkable technical command of what Lombardi’s going to do. Th is is the the game with a leadership style that helped make him one of the winningest best coach in the league—maybe the best coaches in college football history (234-65-8). Bo’s Lasting Lessons: The Legend- there ever was—and he was one tough son of a gun, probably the toughest. You (Grand Central ary Coach Teaches the Timeless Fundamentals of Leadership did not want to cross Vince Lombardi. Publishing) breathes life into this lovably gruff, no-nonsense character through So I had to wonder: Is the old man going a ﬁ rst-person, common-sense approach to leadership that will appeal to sports to blow his stack? and non-sports fans alike. An excerpt of the book, co-authored by Schembechler But Lombardi says—and I’ll never and John U. Bacon, follows. forget this—“You know what, Bart? I think you’re right. Let’s do it that way.” I was surprised—but I saw it happen, ook, I am fully aware no idea what scares them, what inspires right before my eyes. Th ere Lombardi was, that my public image them, what motivates them. If you don’t looking right at Starr—listening, not inter- Lis—how can I put listen to what your people have to say, rupting—and then agreeing. Th e great this?—that of a cantanker- you will not know when they have a Vince Lombardi telling his quarterback, ous guy who rants up and problem with you—and you will not “We’re going to do it your way.” down the sidelines scream- know when you have a problem with Holy smokes! ing at people and smashing them either. At the Packers’ training table that headsets. But that’s what My players listened to me for one night, I had to ask Lombardi about that you saw on Saturday— very simple reason: I listened to them! exchange. I think he probably knew I was although that’s also pretty Without that, they really have no going to ask, and he was ready. “You want much how I acted at practice reason to respect you, and they will not to be stern with your players and make

U-M ATHLETIC DEPT./BOB KALMBACH DEPT./BOB U-M ATHLETIC during the week too. follow you. Because they know you really sure they’re doing things the way you But what you didn’t see don’t care. want them done. But sometimes they was how we talked to each other during When I was head coach at Miami of have a better idea. And if they have one, the week—my coaches, my players, my Ohio in the 1960s, I went up to see the you ought to listen. Bart’s a smart guy and staff . I’m telling you right now: You CAN- great Green Bay Packers in summer prac- a great quarterback, so if he has a better NOT be a leader unless you like people! tice. Th ey had already won fi ve NFL titles, way, you don’t want him to shut up and You’ve got to spend time with them, so you three in a row. Th ey were awesome, and keep it to himself, because then he’s know them. You’ve got to be interested in I loved the way they played the game. demoralized—and you’re missing out who they are, what they do away from the I’m standing there in the locker room on a great idea.” job and how they think. talking to Coach Vince Lombardi when his Lombardi was as gruff and tough as If you do not like people, you will not quarterback, Bart Starr, walks up to him they came. But you can’t tell me he didn’t take the time to get to know them; and if with his playbook and says, “I’ve been care about those guys. It was obvious! He you don’t get to know them, you will have thinking about this, Coach, and for this clearly had a special relationship with his

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113756_cs3_28_313756_cs3_28_31 2828 112/19/072/19/07 4:52:574:52:57 PMPM players, and that’s why his methods worked. son a clear message that you don’t need delegate Now I’ve never seen a great team where him. And they know this. I don’t care how something the players are running the program, but tough your people are—and I don’t think like that. If there are times a player might tell me, people come too much tougher than the they need to “Coach, I could do a better job if we did coaches and players and staff ers we had talk to you, it this way.” And you look at him and say, here at Michigan—they need to know you they need to “You know what? I think you’re right.” care. You need to show them—because talk to YOU, Now when he gets back on the fi eld, that you’re not going to fool them. not your as- is going to be one motivated guy! It’s one thing to listen to a good idea sistant or your Write this down: You cannot lead if from your star quarterback. It’s another secretary or you cannot listen. Even if you’re doing thing to listen with just as much interest anyone else. everything else right, if one of your people to the problems of a walk-on. When some- I maintained comes to you with a good idea—or a one—anyone—in our program had a this policy even personal problem—and it just goes in one problem, I wanted to know about it. And during the busi- ear and out the other, YOU WILL FAIL. I wanted to do something about it too. est times of the I spend a lot of my time listening to So I had a hard-and-fast policy: Any year, which for us were the Tuesday and my coaches, my players, my support staff . player who needed to see me, at any time, Wednesday coaches meetings during game And they spend a lot of their day listening could. Th at simple. If he’s wearing Maize weeks. Th at’s when we put the entire to each other too. If you can’t listen—or and Blue, he’s a Wolverine, he’s one of game plan together by going over tape, you won’t listen—you can’t work for me. mine and he’s welcome to call me or see poring over our stats and our opponents’ In my 21 years at Michigan, I had to let me anytime he needs to, day or night. stats, and debating what we’re going to do, only one assistant coach go. Th is guy had To this day. who we’re going to start, what plays we’re played for Michigan, and he was a bright, Is it easy? Not always. We’re pretty busy! going to call. If I was in one of these staff likable fellow, but he just didn’t listen— And these guys know that the most valu- meetings, my secretaries knew, if the not to me, not to his colleagues, not to his able thing I’ve got is my time, the scarcest president of the University calls, take a players—and it did him in. resource I have to spend. But if they’ve message. If the president of the United I remember one day when one of his got the guts to come down and pull me States calls—I’ll call him back. (And I’m players came to me with a football ques- out of a meeting, it must be pretty impor- not kidding!) But if one of my players tion, and I told him the fi rst person you tant to them. Something must be eating comes down to see me, for any reason, I need to talk to is your position coach, and them up. So I owe ’em that much, at least. am always to be interrupted. I’m sorry, only aft er that can you come to me. Th at If you think that’s foolish, then think folks, but you just can’t build a team if was our policy, established on Day One. about what would happen if I didn’t have you don’t know your people; and when But I knew right then, as soon as that that policy. If a guy comes down to see the chips are down for them, that’s when player left my offi ce to go talk with this me because he’s eating his heart out over they need you most. particular assistant, that the coach was something, and my secretary says, “Bo’s It’s October 1975. We’ve got fi ve wins, going to do all the talking, and the player in a meeting right now. Can you come two ties and no losses; we’re ranked sev- was going to do all the listening. And that back tomorrow?” Well, that guy probably enth in the nation and we’re getting ready kid was going to come out of that meeting ain’t coming back. He’ll lose his nerve, to play our seventh game of the year against and say, “He didn’t listen to a word I said. and then his problem—whatever it is— Minnesota for the Little Brown Jug. He doesn’t understand my problem.” isn’t going to get solved, and it’ll start Jimmy Hackett was a junior on that And right there, you’ve lost him. festering inside him. And I’ll lose him. team. His dad, Bill Hackett, was a great You’ve lost him! Why is a player going Th at doesn’t mean there aren’t limits. All-American guard at Ohio State in the to bust his butt for a coach like that? If the same guy keeps coming down to late 1940s. Jimmy’s brother played for the Aft er this happened a few more times, see me for every little thing, I might say, Bucks against us in 1969, but (Coach) I called this assistant coach into my offi ce. “Hey, you’ve been here fi ve times for the Woody (Hayes) didn’t want Jimmy. Didn’t I sat him down right in front of my desk, same thing. You’re becoming a pain in the off er him anything. But I liked his atti- and I told him fl at out: “Your problem is neck! What is it this time?” tude, so we gave him a full scholarship to you talk, talk, talk—and you don’t listen!” But the policy works. You just can’t come to Michigan. And you know what happened? Every- thing I was saying to him was just going in one ear and out the other! He wasn’t even listening to me! At that point, I realized this coach had to go, and he did. He hasn’t succeeded anywhere else since then either. And I know why. If you don’t listen to the person talking to you, then you’ve sent that per-

Schembechler with his two captains from 1970, Henry Hill (left) and Don Moorehead (right) (Bentley Historical Library)

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113756_cs3_28_313756_cs3_28_31 2929 112/19/072/19/07 4:53:004:53:00 PMPM “If I was in one of these staff meetings, my secretaries knew, if the president of the University calls, take a message. If the president of the United States calls — I’ll call him back. (And I’m not kidding!) But if one of my players comes down to see me, for any reason, I am always to be interrupted.”

Jimmy wasn’t fast enough to play line- day down the road. Th is was really getting because she never made them feel bad backer for us. Who ranked ahead of him? to him, so he walked down State Street for asking, and she never asked them Just about every linebacker on the team, to see me, to make sure that he wasn’t why either. She just said, “Hey, Jimmy. including All-Americans like Calvin wasting his time. Jimmy wanted to play I’ll get him for you.” O’Neal and John Anderson. We were so badly; the least you can do with some- When Lynn stuck her head in the door loaded at linebacker! So Jimmy moved one like that, someone who’s sacrifi ced and told me Hackett’s outside, I came to center, where he wasn’t big enough. so much for the team, is to give him some right out to see him. Jimmy was no mal- We were loaded there too, with Jim Czirr of your time. content, so I knew this wasn’t easy for and Walt Downing and George Lilja— Jimmy came down on a Tuesday morn- him, pulling me out of a meeting like three All-Big Ten centers, two of them ing when all the coaches were with me in that. I asked him what was on his mind, All-Americans. the conference room with the projector and Jimmy reminded me that he hadn’t So where does Jimmy fi t in? Hard to running, and all of us talking and arguing missed a practice in three years—some- say, but Jimmy had the kind of determi- and doing all the things we do to make sure thing I knew already, because we kept nation we loved, and he never missed a we’ve gone over absolutely everything track of those things—and he told me he practice. But by his junior year he was before Saturday. In the middle of all this, felt he had improved, and he knew he getting his doubts. He wasn’t sure where I see Jimmy through the window, talking could be a starter on almost any other Big he stood on the team, if he was really to my secretary, Lynn Koch. When a player Ten team that year. All that was true, and making a contribution, or even if he was came to see me, all he had to say was, I knew it. ever going to be able to make one some- “I am here to see Bo.” Lynn was great

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113756_cs3_28_313756_cs3_28_31 3030 112/19/072/19/07 4:53:134:53:13 PMPM At left, Bo with his friend President Gerald R. players and still get the team ready to play Ford, ’35, who played center on the U-M on Saturday, then I must not be a very good football team in the 1930s and was voted Most coach. No, we didn’t have a great game, Valuable Player (Bentley Historical Library) but it wasn’t because of Jimmy Hackett, I can tell you that. Now, when a guy like Hackett screws Years later, Jimmy told me he learned up his courage like that just to talk to you, a lot from that meeting, that you can have you listen intently. You never look at your a tremendous impact as a leader just by watch or gaze out the window or glance taking a little time. Your people have to back at the meeting room to see what’s know that their value to you and your going on. You listen. You LISTEN! organization is not determined just by When I was sure he was done, I looked what they do, but by who they are. I can’t him straight in the eye and said, “Jimmy, make it any clearer than that. I know how you feel.” Because I did. I’d Today, Jimmy Hackett is the CEO of been in his shoes. But that didn’t mean Steelcase in Grand Rapids, Michigan, I was going to give him a bunch of bull number one in its fi eld. Hackett’s policy just to make him feel better. I intended to at Steelcase is the same policy I had at tell him the truth—because you have to. Michigan: Anybody who wants to talk “I always tried to help the refs every chance You owe him that too. So I made it very with him can do it, from the custodians I could,” Schembechler once said. “And they clear what was keeping him from being a to the vice presidents. But I told him, always appreciated it.” (U-M Athletic Department) starter—a lack of size and speed, mainly, “Jimmy, that’s impossible. I had 125 players, plus the incredible competition he was but you’ve got 14,000 employees! You facing at his position. But I also told him can’t do that!” he says it’s the same thing at his company, I knew he hadn’t missed a practice, I knew “You’re right, Bo. Th e odds of me seeing even with 145,000 employees. If you send how hard he was working, and that all his everyone in this organization in my life- him an e-mail at midnight, you’re likely coaches saw it, and all his teammates saw time are pretty slim. But Bo, you didn’t to have your answer before you wake up it too, and we all respected him for it. And meet with every one of us every week the next morning. I don’t know how he most important, he was the best demo either. Th at wasn’t the point. All of us knew does it, but he does. team center in the nation. I wasn’t kid- that if we felt we had to see you, we could. To this day my former players come ding. No one did a better job of getting Th at was the point. My employees don’t back—in their 30s and 40s and 50s now— our defense ready for the next game than come to see me that oft en, but they know to see me in my offi ce at the football Jimmy Hackett. And that was the truth. they can. So if they feel they have to come building, and it’s the same thing. Th ey’ve Jimmy listened to me. When I was talk to me, it’s probably pretty important got a problem, they need some help. done, he wasn’t despondent. He had some to them, and they know I’ll make time.” Could be their jobs, their wives, their hope in his heart and the clear impression Th en he told me something else that kids, maybe they’re going through some that he was contributing something impor- made a lot of sense to me. tough times of their own—whatever. But tant to this team. He needed to see that “I sit in this offi ce building over here, if they feel the need to come down here his value to the team wasn’t just about and they’re working in that factory over and see me, it must be important. how talented he was, but about how hard there. If I wanted to be walled off , it’d be If you can help someone with a little he worked. He realized he was playing easy to avoid them. But if you want to attention, don’t you think you should do an important part on a great team, at know what’s going on with the rank and that? And the answer is yes, of course an outstanding university. Jimmy never fi le, you’d better talk to the rank and fi le. you should. Th at’s got nothing to do with missed a practice his entire career, and I learn more about how to run this com- football. Th at’s just doing what’s right. aft er that meeting he never felt he had to pany from the people who actually do the And that’s what leaders do. see me again to have his value confi rmed. work than from all my vice presidents put Th ese days, though, most of the time He knew what he was giving us—and together. My VPs don’t want to tell me they’re just coming down here to tell me perhaps just as important, that day, was bad news, but the guys on the line aren’t the success stories, how all those things that he knew we knew it too. scared. Th ey want me to know. So you’ve we were yelling at them years ago have Hackett shook my hand, and he headed got to stay in touch.” fi nally sunk in—or just to shoot the back up the hill to class. Now that’s just as true in business— breeze and tell some old stories. I’d like to tell you Jimmy got in the next any business—as it is in coaching. If you listen long enough, you get to game, and that we creamed Minnesota Keep in mind, if you’re the leader, your hear the good news too. like we were supposed to, but none of supervisors don’t want you to worry about that happened. Jimmy didn’t get in, and their divisions. So where are you going From the book Bo’s Lasting Lessons: we narrowly pulled out a fourth-quarter to get the truth? Th e guy on the line prob- Th e Legendary Coach Teaches the Time- victory over an unranked Minnesota ably isn’t shooting for your job, so he less Fundamentals of Leadership by team, 28–21. Not our best eff ort. doesn’t have much incentive to hide the Bo Schembechler and John U. Bacon. Did my meeting with Hackett have any- truth. He’ll tell you! Copyright 2007 by the Estate of Glenn E. thing to do with our team not playing our Dave Brandon, who played for me a Schembechler Jr. Reprinted by permission best that day? Hell no! If I can’t spend 15 few years before Hackett did, rose to be- of Grand Central Publishing, New York, minutes with one of our hardest-working come the CEO of Domino’s Pizza. And NY. All rights reserved.

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113756_cs3_28_313756_cs3_28_31 3131 112/19/072/19/07 4:53:164:53:16 PMPM RLI FOUNDATION SESSION FOSTERS CREATIVITY, INNOVATION AND TEAMWORK PHOTOS BY STEVE KUZMA PHOTOS BY STEVE KUZMA

id Karri, a fi rst-year MBA student MBA students give the walls a fresh coat develop and test students’ leadership at the Ross School of Business, of paint at Matrix Human Services. capabilities in a real-time context. Forma- arrived in late August for the start tive action-based experiences encourage of the Ross Leadership Initiative Waggener Boyd, program research assis- them to apply the analytical skills brought (RLI) Foundation Session, eager tant, with input from Ross faculty mem- forth in the management curriculum. Sto jump in with both feet. Like most of the bers and an elected student advisory other 430 incoming MBAs, he planned board, in designing and developing the SWINGING to hone his leadership skills while forging ambitious 2007 RLI Foundation Session. SLEDGEHAMMERS relationships with his new classmates. What Th e Foundation Session is the fi rst rung he didn’t plan to do was chop zucchini, on the RLI ladder. As its name implies, Th e 2007 leadership boot camp, held write a “mockumentary” or demolish an it lays the groundwork and opens doors August 23-29 before fall classes began, urban building. But so began his six days to the possibilities of what can be accom- immersed MBA students in mental and of leadership discovery. plished in the 20 months MBA students physical challenges designed to enhance “RLI exposes students to the latest will spend at Ross. Real-world scenarios communication, spark imagination and thinking about leadership and builds bolster leadership skills. In addition to skills in teamwork, creativity and innova- classroom discussions and high-level lec- tion,” says Sue Ashford, associate dean for tures, the participants engaged in sledge- leadership programming and the Executive hammer swinging, skillful storytelling MBA Program. “Our goal is to prepare and creative cooking. students to lead globally diverse teams, Th e week-long initiative started outdoors consider the role of business in society with physical challenges that introduced a and build organizational cultures that model for team eff ectiveness. Next, renowned foster innovation.” Ashford was assisted screenwriting coach Robert McKee dem- by Graham Mercer, assistant dean, strate- onstrated how the art of storytelling can gic planning and special projects, and Ali infl uence interaction with employees,

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113756_cs3_32_34.indd3756_cs3_32_34.indd 3232 112/19/072/19/07 4:54:424:54:42 PMPM clients and colleagues. Using an overhead GRILLING FOR GLORY “RLI exposes students projector and handwritten notes, McKee Part two of the “Lead as Innovator” day challenged the “PowerPoint generation” featured a surprise challenge of colossal to utilize more eff ective verbal communi- proportions. Ashford designed an elabo- to the latest thinking cation in future business dealings. rate, well-orchestrated food preparation In a writing workshop, McKee critiqued and presentation competition inspired about leadership versions of the same story written by dif- by television’s Iron Chef. Students were ferent student teams. Although he initially given two hours, with no advance warn- and builds skills in found fl aws in virtually every attempt, ing, to prepare a meal and entertainment McKee shared ways that each story could for more than 400 people. teamwork, creativity be improved. Special consultants from the Food “He was brutal, and his delivery may have Network and the University of Michigan been a bit unusual, but the message was catering staff joined the contestants under and innovation.” important,” said Amaresh Mohan, a member large tents at Palmer Field. Th e outdoor —SUE ASHFORD of the Section 2 team. “However, I believe “Grill for Glory,” held amidst the stormy that we shouldn’t have to choose between

Above, MBA students discuss strategies backdrop of Michigan’s ever-changing into the role of scriptwriter, creating an for leading innovation. weather patterns, prompted Dean Robert Animal Planet-style spoof on the rare At right, a Grilling for Glory team prepares J. Dolan to remark on the organizers’ species of Ross MBA students. “It was a fruit kabobs. courage: “No one can say that we don’t great team-building activity, and we all take risks.” really enjoyed it,” Karri says. Each challenge was judged by a panel of Th e week continued with two days storytelling and technology to communi- business and culinary experts, including of leadership rotations that exposed cate our message. We should use both.” Dean Dolan. Before the cook-off began, students to important Ross leadership During a session titled “Innovation Marc Weatherill of Section 6 asked the values: global vision, integrity, diversity Boot Camp,” Jeff DeGraff , a Ross faculty Dean what kind of food he prefers, choos- and social responsibility. member and the author of Leading Inno- ing to focus the team’s eff orts on the pref- An additional session gave participants vation: How to Jump Start Your Organiza- erences of a VIP judge. “Th e taste has feedback on the “360-de- tion’s Growth Engine, highlighted the to be acceptable, but I’m big on visual gree” interviews collected importance creativity plays in helping appeal,” Dolan replied. “And I tend not over the summer from companies overcome today’s challenges. to like things that aren’t cooked.” students and nominated Karri and his section mates worked with Once the competition kicked off , stu- colleagues. Th ey shared DeGraff on specifi c techniques to stimulate dents had access to a production tent notes on leadership style, original thinking. “It was during this class- stocked with vegetables, starches, condi- proclivity for change, cul- room session and others like it that I came ments and spices, as well as serving and tural adaptability and politi- to know my section mates better,” says decorative pieces. Each of the sections cal skills. Ultimately, per- Karri, who plans to pursue a career in divided into groups to chop, grill and sonal action plans for the strategic consulting with a multinational present a dish. Th e Grill for Glory challenge coming year emerged. company. “We had the chance to discuss also required each section to produce an issues and to learn about each other’s per- original fi ve-minute entertainment piece sonalities and leadership characteristics.” and marketing plan. Karri quickly settled

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113756_cs3_32_34.indd3756_cs3_32_34.indd 3333 112/19/072/19/07 4:54:524:54:52 PMPM VOLUNTEERING IN At left, MBA students clear debris from and brought the sections together. It also BLIGHTED COMMUNITIES the site of a demolished home. challenged students to wrestle with diffi - cult leadership issues, plan their develop- As the week drew to a close, students put At right, Ross professor James Walsh leads a group discussion. ment and work on their leadership training to the test by volun- their team building, teering with one of six local organizations. creativity and com- Once the students settled into their roles, Working in the fi eld side-by-side with sec- munication skills. they used discussion and communication tion mates, participants gained a better Th ey did important to turn an initially haphazard situation understanding of how corporations and community service into an orderly job site. Th e removal of communities are inextricably interconnected. projects and rose to debris progressed without a hitch. Karri was among the students who trav- every challenge we Th e Motor City Blight Busters’ mission eled to the Detroit neighborhood of Bright- threw at them. Th e to stabilize, revitalize and repopulate moor to volunteer with the Motor City Class of 2009 impressed the faculty with Detroit’s urban core, while encouraging Blight Busters. Founded by community whom they worked, and they’re off to a residents to take ownership and feel pride activist John George, the Blight Busters great start in their MBA program.” target neglected neighborhoods and rid in their communities, is a natural comple- them of abandoned homes that attract ment to the RLI experience. “We love the Nancy Davis criminal activity. Karri had cleaned up students,” George says. “Th ey come moti- neighborhoods before, but in Southeast vated and eager to learn about what we Asia, not Detroit. Born in India, he had do, and they want to work.” seen the devastation that poverty and Th at commitment oft en continues past natural forces can bring. the Foundation Session. A number of “I wasn’t shocked by what I saw in Ross MBAs have continued to volunteer Detroit,” says Karri, who previously had with Blight Busters aft er graduation, on volunteered for the clean-up eff orts in Sri behalf of their corporations. Lanka following the tsunami of 2005. “But Other sections performed community I think some of the American students were service at Matrix Human Services, Grand- surprised to see that this kind of poverty mont Rosedale Development Corpora- and devastation exists so close to them.” tion, Focus: HOPE, Greening of Detroit Th e burned-out and abandoned struc- and Detroit Rescue Mission Ministries. tures juxtaposed with newly renovated homes in Brightmoor gave one Section FINDING MEANING 2 member pause. “We all came to this IN LEADERSHIP with preconceived notions about what we would fi nd,” said Harold Soper. “Th ere Following the day of volunteerism, an RLI Podcast was a bit of culture shock on the part inspirational closing ceremony was held at Rackham Auditorium. Speakers of some of us, because we haven’t been Experience the exposed to that kind of poverty.” included community leaders who have devoted their lives to service, including Eleanor Josaitis of Focus: HOPE. Students RLI Foundation Session shared what they learned working in the with Carmen Tapia, MBA ’09 fi eld, how the experience impacted them and what leadership means to them. www.bus.umich.edu/carmen “Th e Foundation Session for the Ross Leadership Initiative was everything we dreamed it would be,” says Ashford. “It prompted students to get actively involved

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113756_cs3_32_34.indd3756_cs3_32_34.indd 3434 112/19/072/19/07 4:55:044:55:04 PMPM ALUMNI ACTIVITIES HISTORY OF THE DAVID D. ALGER ALUMNI 2007 Alumni ACHIEVEMENT AWARD Established in 1989, this award recognizes an alumnus of the Ross School of Business Awards Celebrate whose attainments in his or her professional fi eld brought distinction to that individual, credit to the school and benefi t Achievement, Service to fellow citizens. Th e Alumni Achieve- ment Award was renamed in honor of David D. Alger, MBA ’68, and the 2001 DAVID D. ALGER ALUMNI During his 30-plus recipient of this award. Alger was a dynamic, years at General Mills, involved and passionate contributor to the ACHIEVEMENT AWARD Sanger has held such Ross School, as well as a member of the positions as president school’s Visiting Committee. He perished Stephen W. Sanger, of the Big G Cereal in the events of September 11, 2001. Division and presi- MBA ’70 Past recipients 2007 Award Recipient dent of Yoplait USA. He was elected to 1990 Eugene B. Power ales more than doubled, earnings the board of direc- AB ’27, MBA ’30 Smore than tripled and international tors in 1992 and 1991 L. William Seidman sales grew tenfold at General Mills under was named presi- MBA ’49 chairman and former CEO Stephen W. dent of General Mills Sanger, MBA ’70. Th e 2001 acquisition of in October 1993. 1992 Robert Briggs competitor Pillsbury is cited by industry Since Sanger became chairman and AB ’25, MBA ’28, HON LLD ’69 experts as his greatest legacy during more CEO in 1995, the company has received than three decades with the consumer 1993 Everett E. Berg numerous awards for its corporate citizen- MBA ’48 foods giant. In September, Sanger stepped ship, performance and workplace culture. down as CEO of General Mills, where he General Mills is listed regularly among 1994 Martha Seger will remain as chairman through May 2008. Fortune magazine’s “most admired com- BBA ’54, MBA ’55, PhD ’71 Noted by colleagues for his personal and panies” and in 2007 was named by Fortune 1995 David B. Hermelin informal style, Sanger is an avid Michigan as “a global top company for leaders,” BBA ’58 fan who has been known to decorate his ranking sixth of 550 companies world- 1996 Sandy Robertson offi ce with school paraphernalia. wide. Th e company also has received the BBA ’53, MBA ’54 Th e Ross School of Business recog- Catalyst Award for advancing women in nized Sanger’s impressive career arc and management and is ranked among Amer- 1997 Sam Wyly commitment to Michigan with the David ica’s top 10 corporate citizens by CRO MBA ’57 D. Alger Alumni Achievement Award in magazine. October. Th e Alger Award celebrates an 1998 Joel Tauber Sanger is a director of the Target Corp. BBA ’56, JD ’59, MBA ’63 alumnus whose attainments in his or her and Wells Fargo & Co. and a member of professional fi eld brought distinction to the board of Catalyst, the National Cam- 1999 Barnett Helzberg that individual, credit to the school and paign to Prevent Teen Pregnancy and BBA ’56 benefi t to fellow citizens. the Guthrie Th eater. Additionally, he is 2000 Stanley Frankel Sanger began his tenure at General a member of the Grocery Manufacturers AB ’63, MBA ’64 Mills in 1974 and despite the countless of America and the Business Council. 2001 David D. Alger demands on his time, he oft en has re- Earlier this year, he was appointed by MBA ’68 turned to the Ross School to speak with President George Bush to serve on the students. In October 2006 he presented Advisory Committee for Trade Policy 2002 Cleveland Christophe the inaugural Susan B. Meister Lecture and Negotiations. MBA ’67 in Child Health Policy; his lecture on 2003 Allan D. Gilmour “Corporate Responsibility in Child Health” MBA ’59 included such important topics as youth nutrition, childhood obesity and fi tness. 2004 John Madigan In addition, he hosted Dean Robert BBA ’58, MBA ’59 Dolan and Minneapolis alumni for 2005 Ronald N. Weiser “Michigan on the Road” in June 2005. BBA ’66 Sanger is not only generous with his time, but also his resources. An investment in 2006 Robert Shaye the new Ross School facility will include BBA ’60 a classroom named in his honor.

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113756_Cs3_35_37.indd3756_Cs3_35_37.indd Sec1:35Sec1:35 112/19/072/19/07 4:56:514:56:51 PMPM ALUMNI ACTIVITIES Hennessy’s civic activities include serving as a trustee of the John G. Shedd HISTORY OF BERT F. WERTMAN ALUMNI Aquarium, trustee of the Greater Illinois THE BERT F. WERTMAN SERVICE AWARD Chapter of the National Multiple Sclerosis Society and director of the Children’s ALUMNI SERVICE AWARD Daniel Hennessy, Memorial Hospital and Foundation, all Established in 1989, this award recog- in Chicago. He is also a member of the nizes an alumnus of the Ross School of MBA ’81 board of regents at Georgetown University Business for outstanding service to the 2007 Award Recipient and a director of the Yellowstone Park Foundation. school and/or the University. Th e award aniel J. Hennessy, MBA ’81, is a founder was established in honor of Bert F. Wert- and partner of Code, Hennessy & man, MBA ’28, who served for more D Simmons, a Chicago-based private equity ENTREPRENEUR than 60 years as president of the Class investment fi rm organized in 1988. CH&S of 1928. Th rough his leadership and manages approxi- OF THE YEAR AWARD caring, the class remained a cohesive mately $2.8 billion of and vital group and held a record num- capital that is currently Samuel Zell, AB ’63, ber of continuous reunions. invested in 22 diverse JD ’66 operating companies 2007 Award Recipient Past Recipients with combined rev- 1989 John R. Edman enues of $7.5 billion. t’s not unusual for terms like “real estate BBA ’50, MBA ’51 Hennessy serves as Irock star,” “titan” and “icon” to be used chairman of the board in reference to the legacy of billionaire 1990 Wilbur K. Pierpont and director of CH&S Samuel Zell, AB ’63, JD ’66. Once cited by MBA ’38, PhD ’42 portfolio companies, Fortune as “controlling more commercial 1991 Gary T. Walther which manufacture real estate than anyone else in the country,” BSE ’60, MBA ’63 and distribute geo- he is the chairman of Equity Group Invest- 1992 William T. Dobson synthetic lining solutions, disposable food ments in Chicago and a founding bene- AB ’42, MBA ’48 packaging and infrastructure construction factor of the Samuel Zell and Robert H. and demolition products. Lurie Institute for Entrepreneurial Studies 1993 Sharon Reed Walker At the same time, Hennessy is one of the at the Ross School of Business. Of all the BBA ’74, MBA ’81 Ross School’s most active and engaged entrepreneurs who trace their roots to the 1995 Frank T. Westover supporters, encouraging the school to con- University of Michigan, this visionary BBA ’61, MBA ’62 tinue its eff orts to increase connectivity businessman is perhaps the most famous. with graduates and to improve the quality Zell accepted the 2007 Entrepreneur of 1996 John F. McCarthy of data on fi le for Ross alumni. Under- the Year Award at this year’s ABED ’49, MBA ’51 standing that commitment to Ross comes Entrepalooza, an annual Ross 1997 Bruce L. Cook in many forms, from time and service to School symposium connecting BBA ’50, MBA ’51 resources and expertise, Hennessy has successful entrepreneurs, ven- 1998 Bonnie R. Proctor proved exceptional in all areas. He chaired ture capitalists and fi nanciers AB ’70, MBA ’74 his 25th reunion campaign, launched a with enterprising students phone outreach initiative, has hosted looking to launch start-ups. 1999 Eva Chang several receptions and admissions events, Th e highlight of the con- MBA ’93 and always can be relied upon to forge ference came when he shared 2000 Richard H. Rogel links between new students and senior details about his record-setting BBA ’70 alumni. In addition, Hennessy was a sale of the Chicago-based commercial real estate fi rm 2001 Mary Campbell champion and donor of the new facility Equity Offi ce Properties MBA ’79 campaign and has endowed student scholarships. For these and countless Trust to Blackstone Group. Th e deal, Th omas Porter other contributions, Hennessy was hon- totaling close to $40 billion, was the larg- MBA ’67 ored with the Bert F. Wertman Alumni est leveraged buyout in history. 2002 Michael R. Hallman Service Award earlier this year. A native Chicagoan, Zell began his BBA ’66, MBA ’67 Prior to founding CH&S, Hennessy career in real estate by managing apart- was employed by Citicorp from 1984 to ment buildings throughout southeast 2003 Roslyn Braeman Payne 1988 as head of the Midwest region for Michigan while still an undergraduate at BBA ’68 Citicorp Mezzanine Investments and vice the University of Michigan. He currently 2004 Cecil Shepherd president and team leader with Citicorp maintains substantial interests in and MBA ’00 Leveraged Capital Group in Chicago. He serves as chairman of the board of various corporations, including Anixter Internation- 2005 Tom Jones began his career in 1981 in the oil and al, Capital Trust and Rewards Network, BBA ’68, MBA ’71 gas lending group at Continental Illinois National Bank (now Bank of America) among others. In April, Zell made a multi- 2006 William Hall where he was a banking offi cer. million-dollar investment in the Tribune MBA ’67, PhD ’69

dividend 36 fall 2007

113756_Cs3_35_37.indd3756_Cs3_35_37.indd Sec1:36Sec1:36 112/19/072/19/07 4:56:524:56:52 PMPM ALUMNI ACTIVITIES she was vice president and assistant HISTORY OF honorary degree Doctor of Laws from the treasurer for Nex- THE ENTREPRENEUR University of Michigan, bestowed by the tel from August Regents for “transforming the landscape 2002 to August OF THE YEAR AWARD of our country as well as the landscape of 2005 and vice Established in 1991, this award recognizes education at the University of Michigan president of Cus- the accomplishments of an alumnus (or and beyond.” Th e College of Literature, tomer Finance an exceptional corporate partner) of the Science and the Arts at Michigan also has Services for Nex- University of Michigan who has started appointed him a DeRoy Visiting Professor tel from August and built a successful enterprise. in Honors. 1998 to August 2002. Past Recipients THE CHARLES H. IHLING 1991 Richard H. Rogel MEMORIAL SERVICE AWARD BBA ’70 1992 Randolph J. Agley Marci Carris, BBA ’78, HISTORY OF THE CHARLES BBA ’64, MBA ’65 H. IHLING MEMORIAL 1993 Gerrard Haworth MBA ’83 2007 Award Recipient SERVICE AWARD MA ’40 arci Carris, BBA ’78, MBA ’83, vice 1994 Eugene Applebaum Th e Charles H. Ihling Award is pre- Mpresident of customer fi nance ser- sented to a retiring or former mem- 1995 Diane Langley vices at Sprint-Nextel, received the 2007 ber of the Alumni Society Board of BBA ’75 Ihling Service Award this past spring. Governors for extraordinary service 1998 Frank Stronach Named for Charles (Chuck) Ihling, an as a board member. Th is award is inaugural member of the Alumni Society initiated by a member of the Alumni 1999 Steve Mariotti Board of Governors (ABOG), the award is Board of Governors and is decided by BBA ’75, MBA ’77 presented to a retiring or former member the Awards Committee. If a member 2000 David Bohnett of the board for extraordinary service. of the committee is nominated for this MBA ’80 During her tenure on the board, Carris award, that person will not be made served in a variety of roles. She chaired 2001 Hal Davis aware of the nomination. Th e Awards the Alumni Awards Committee and MBA ’85 Committee decides when the award served as the ABOG representative to the will be presented. 2002 Michael J. Jandernoa University of Michigan Alumni Associa- Established in fall 1991, this award is BBA ’72 tion’s board of directors. Her service to not presented annually, but rather when 2003 Rick Snyder the school in this role was so valued that a deserving candidate has emerged. MBA ’79 she was invited to serve an additional Inasmuch as Ihling’s contribution as term for a total of eight years on the Ross an inaugural member of the board 2004 Keith Alessi Alumni Board. During her tenure, she was indeed extraordinary, this is a MBA ’79 never missed a single meeting. True to most fi tting way to honor him and Lee Shainis form, Carris has volunteered on the com- to recognize the eff orts of others. BBA ’99 mittees for both her BBA 30-year reunion (Social Entrepreneur Award) and her MBA 25-year reunion in 2008. Past Recipients In addition to her service on the board, 2005 Bharat Desai Carris has assisted many students through 1992 John H. McCarthy MBA ’81 counseling and mentorship programs MBA ’68 2006 John Kennedy within the Ross School. She also has hosted 1996 Mary Kay Haben MBA ’05 MAP students and prospective admits MBA ’79 at her home in Denver. She even tracked 2003 Ralph E. Johnson down University of Michigan President MBA ’92 Mary Sue Coleman (who was vacationing Co. and joined its board of directors. in Denver at the time) and persuaded her 2005 Lesa Chittenden Lim In addition, he recently completed a to meet with students at the local alumni MBA ’86 two-year term as chairman of the Nation- club’s “student send-off ” picnic. eseTh are 2005 Ted Michael al Association of Real Estate Investment just a few examples that demonstrate how MBA ’68 Trusts. He serves on the JP Morgan Na- Carris exemplifi es the spirit of the Ihling tional Advisory Board, the EuroHYPO Award through her service to the Ross International Advisory Board, the Presi- School on the Alumni Board. dent’s Advisory Board at the University of In her current role at Sprint-Nextel, Michigan and the Visitor’s Committee at Carris is responsible for credit, collections Michigan’s Law School. He also holds the and fraud prevention. Prior to this post,

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113756_Cs3_35_37.indd3756_Cs3_35_37.indd Sec1:37Sec1:37 112/19/072/19/07 4:56:534:56:53 PMPM ALUMNI ACTIVITIES Worldwide Club Day Extends Ross School’s Global Footprint

oss School alumni based in cities from Miami to Mumbai reconnected across the globe in September for the second annual Worldwide Club Day. Ross faculty and R staff brought news from Ann Arbor to graduates who gathered in homes, eateries and businesses from Buenos Aires to Beijing. Not even a typhoon could keep Ross alumni from reuniting in Shanghai. In Mumbai, Gautam Ahuja, the Harvey C. Fruehauf Professor of Business Adminis- tration, garnered media coverage for controversial comments he made in the presentation “India 2040: Roads to Riches.” Meanwhile, Eugene Anderson, the D. Maynard Phelps Professor of Business Administration, updated Beijing-based alumni on Ross’ commitment to action-based learning. And Paul Clyde, adjunct professor of business economics and public policy, reported to south Florida alumni on work he is doing through the William Davidson Institute with hospitals in India and Uganda. A sampling of the 2007 events follows.

CARACAS—Alumni in Venezuela came together for an informal gathering; in attendance, from left, were Maria Elena Madrigal, Pedro Blanco, MBA ’99, Maria Daniela de Blanco, Anna T. de Madrigal, Miguel Madrigal, MBA ’99, Aureliano Hernandez, MBA ’99, and Marta Elena de Hernandez.

MUMBAI—The University of Michigan Indian Alumni Association hosted Professor Gautam Ahuja in Mumbai for the presentation “India 2040: Roads to Riches.” Ahuja is widely known for his contrarian views on whether India is on the right path and whether Indian companies are poised to become global players when it comes to scale, size and brand. Comments from his controversial presentation were picked up by the Hindustan Times in September. Ahuja (sixth from left) is the Harvey C. Fruehauf Professor of Business Administration and professor of strategy.

DENVER—Dan Shey, MBA ’00, president of the Ross Alumni Club of Denver (left), ﬁ elded questions about the Ross School from prospective student Brandon Cornuke. Colorado-based alumni later enjoyed a presentation by Lynda Oswald, professor of business law.

BEIJING—The Ross School’s commitment to BUENOS AIRES—Left to right, Gustavo Orrillo, action-based learning informed the presentation MBA ’04, Fernando Pardo, MBA ’95, Diego to alumni in Beijing by Eugene Anderson, the Regueiro, MBA ’99, Nicolas Castagnino, MBA D. Maynard Phelps Professor of Business ’00, and Marcos Portaro, MBA ’02, attended Administration. Anderson focused on the the alumni event hosted by the Ross Alumni success of Ross’ unique MAP program, which Club of Argentina. continues to expand globally.

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113756_CS3_38_41.indd3756_CS3_38_41.indd 3838 112/19/072/19/07 4:57:564:57:56 PMPM ALUMNI ACTIVITIES

DURHAM—Karen Mishra, MBA ’88 (far right), leader of the Ross Alumni Club of North Carolina, hosted fellow Ross graduates in her home. Attending, from left, were Robert Jolls, MBA ’67, AB ’65, Cecelia Jolls, AB ’67, Shilpa Guthikonda, BBA ’03, Greg Davis, MBA ’86, Ken Griffo, MBA ’92, Paul Devine, MBA ’90, David Zugger, MBA ’03, MS ’94, Lena Zugger, BS ’94, and Brian Bucher, BBA ’97.

SHANGHAI—A typhoon may have delayed Worldwide Club Day in Shanghai, but it could not keep alumni from reuniting on September 22 to hear Jerry Liu, MBA ’02, deliver a presentation prepared by Eugene Anderson, the D. Maynard Phelps Professor of Business Administration.

GRAND RAPIDS—In western Michigan, NEW YORK—Associate Professor David Professor Scott Moore, director of the BBA Brophy, director of the Ofﬁ ce for the Study of Program, presented an update on the school’s Private Equity Finance, traveled to New York progress in undergraduate pre-admission City for a talk on private equity. Attendees activities. included, from left, Caroline Hill, MBA ’06, Ivy Zhang, MBA ’06, Randi Weinberger, BBA ’07, Marissa Siegal, BBA ’07, and Viola Cheung, MBA ’03, AB ’91.

WASHINGTON, D.C.—Ross Associate Dean for Degree Programs Valerie Suslow traveled to the nation’s capital to meet members of the Alumni Club of Washington, D.C. Pictured from left are Tige Savage, MBA ’98, Suslow, Chris Campbell, MBA ’98, and Adam Borden, MBA ’05.

MIAMI—Paul Clyde, adjunct professor of business economics and public policy (back row, far right), reported to south Florida alumni on work he is doing through the William Davidson Institute with hospitals in India and Uganda. Attending the presentation were, front row, from left: Esther Levi, Gabriel Gerenstein, BBA ’02, Andy Alan, BBA ’02, David Treece, MBA ’88, AB ’83, Carol Haefner, MBA ’84, Gabriel Freund, MBA ’04, Carlos Bigott, MBA ’03, and Jose Fincheltub, MBA ’03. Back row, from left, are: Marty Schiff, Michael Schiff, Tom Hitchman, MBA ’84, BS ’82, Ashutosh Dalvi, BBA ’01, and Peter Landry, MBA ’81.

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113756_CS3_38_41.indd3756_CS3_38_41.indd 3939 112/19/072/19/07 4:58:024:58:02 PMPM ALUMNI ACTIVITIES Deal or No Deal CHICAGO CONFERENCE EXPLORES CORPORATE VALUE IN TODAY’S MARKETS

HICAGO—Leveraged buyouts. M&A and Dividend recaps. Strategic Unlocking C mergers, acquisitions and Corporate divestitures. Spinoff s. Going public. Value in Today’s Going private. Whatever the strategy, the Markets” was pace of corporate deal-making continues presented by the unabated in 2007, even aft er record levels Alumni Club of Chicago. Leading aca- Ross Assistant Professor of Finance of activity were reported in 2006. demics, corporate executives, investment Amy Dittmar presented the conference Developments in the deal market were banking experts and private equity pro- keynote address, followed by a panel top of mind for more than 100 alumni fessionals analyzed the thinking behind discussion among distinguished Michi- who gathered in the Windy City for the the rush to unlock corporate value using gan alumni. Experts covered trends in fourth annual Ross School of Business a variety of transaction and restructuring M&A and corporate restructuring strate- Spring Conference. “Deal or No Deal: strategies. gies; the broad impact on businesses,

nors Club Committee, based on fi scal New Awards Recognize year 2007 annual reports submitted by each Ross alumni club. Th ese were then summarized, based on the key compo- Outstanding Alumni Clubs nents of the awards, and voted upon by CHICAGO AND WASHINGTON, D.C., CLUBS the members of the Club Committee. Domestic, international and affi nity NET INAUGURAL HONORS clubs are considered for these awards, which will be presented annually. For information and deadlines regard- embers of the Alumni Board go above and beyond, and take it to the ing eligibility for the 2008 awards, contact of Governors Alumni Club next level. Th e Club Committee felt it was Rachel Fleck, assistant director, Annual M Committee established two important to offi cially recognize and sup- Giving and Alumni Relations, at (734) new awards this year to recognize and port their achievements with an award 763-5258 or fl [email protected]. support the exceptional eff orts of Ross and fi nancial support to keep up the good alumni clubs worldwide. work. Th e clubs in Chicago and Washing- Th e fi rst Stephen M. Ross School of ton, D.C., really set an example this year 2007 ALUMNI CLUB Business Alumni Club of the Year in terms of developing vibrant organiza- Award went to the Chicago Alumni Club tions that off er tremendous programming OF THE YEAR AWARD for its achievements in programming, and outreach.” he Chicago Alumni Club received membership, outreach and recruiting, Each club received $2,500 toward its Tthe Alumni Club of the Year Award among other things. annual budget; the funds were allocated based on the following achievements: Th e debut Stephen M. Ross School of by the Offi ce of Development and Alumni Best annual membership growth and Business Wolverine Spirit Award was Relations. Club leaders were recognized participation in club events presented to the Washington, D.C., at the Alumni Board of Governors’ din- Commitment to student outreach and Alumni Club for its tenacity and enthusi- ner and reception during homecoming recruiting (working with the Offi ce asm in building its organization. weekend. Dean Robert Dolan presented of Career Development and Offi ce of “Alumni clubs play such an important the awards along with Mott and Greg Admissions) role in building and sustaining the Ross Bolino, MBA ’92, Alumni Board of Gov- Best overall club programming community around the globe,” said Jeff ernors chair. (exceeding number of program events Mott, MBA ’95, Alumni Board of Gover- Recipients of the Alumni Club of the encouraged by the Ross School) nors Club Committee chair. “We are so Year and Wolverine Spirit awards were grateful and impressed by the leaders who chosen by the Alumni Board of Gover-

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113756_CS3_38_41.indd3756_CS3_38_41.indd 4040 112/19/072/19/07 4:58:144:58:14 PMPM ALUMNI ACTIVITIES

Pictured at the “Deal or No Deal” conference, FRANKFURT, Germany—The national meeting of the Ross School Alumni Club of Germany left to right: Greg Bolino, MBA ’92, Mike Bagley, convened in Frankfurt in June. Ministerial Secretary R. Schweer of the Ministry of Environment, Yehuda Cohen, MBA ’83, and Scott Forester. Rural Development and Consumer Protection addressed the timely topic, “Environmental Certiﬁ cates—Solutions of the Global Environmental Problems?” Other presenters included Gunter Dufey, Ross professor emeritus of corporate strategy and international business and professor emeritus of ﬁ nance. The Alumni Club of Germany was hosted by McKinsey & Co. in Frankfurt. shareholders and other stakeholders; and views on future expectations. Th e conference was organized by Jeff rey Gordon, MBA ’83, managing director, Duff & Phelps, LLC. Participants included Nancy Goble, BBA ’75, chief accounting offi cer, Chicago Mercantile Exchange Hold- ings; Th omas R. Reedy, MBA ’84, president and CEO, iTRACS Corp.; Kenneth Mon- son, MBA ’97, senior director, global strategy and business development, Kraft Foods; Rodd M. Schreiber, AB ’84, JD ’87, partner, Skadden Arps Slate Meagher & Flom; David S. Evans, BBA ’75, chairman and managing director, Glencoe Capital; and Frank G. Hayes, BBA ’84, From left: Ministerial Secretary R. Schweer, Professor Emeritus Gunter Dufey, Dr. Andreas Kirschkamp, partner, Wynnchurch Capital. MBA ’98, and Dr. Karlheinz Haag, head of Environmental Concepts, Lufthansa AG, Frankfurt

Consistently hosting a variety of events tive approach in connecting with alumni. Congratulations to Adam Borden, that engage alumni with diff erent Fellow nominees included the San MBA ’05, and his D.C.-based team, who interests Francisco Bay Area Alumni Club and the were noted for their great collaboration, Most timely in submitting event and Southeast Michigan Alumni Club. expansive diversity of events and eff ective annual reports strategy in building a large volunteer base. Congratulations to Yehuda Cohen, Also nominated for the 2007 Wolver- MBA ’83, Rich Austgen, MBA ’92, and ine Spirit Award were the Minnesota the leadership team in Chicago. In addi- THE 2007 WOLVERINE Alumni Club and the Ross Alumni Club tion to the specifi c standards listed above, SPIRIT AWARD of Boston. the Chicago Alumni Club was noted for he Washington, D.C., Alumni Club, its diverse and visionary programming Twhich demonstrated the best eff ort in scope, breadth of activities, and innova- revitalizing or starting a Ross alumni club in its community, was honored with the 2007 Wolverine Spirit Award. Th e committee felt the Washington, D.C., Club best mirrors the characteristics of a Michigan wolverine with its tenacious energy and school spirit. To qualify for the Wolverine Spirit Award, an alumni club must meet the following criteria: Exceed program event requirements and show strong participation from alumni Best use of resources (seed money) Alumni Club of the Year Award provided by the school Wolverine Spirit Award Left to right: Dean Robert Dolan and Alumni Most aggressive in recruiting new club Left to right: Dean Robert Dolan and Alumni Board of Governors Chair Greg Bolino, MBA members Board of Governors Chair Greg Bolino, MBA ’92, with Chicago leaders Henry Gorecki, MBA Most successful in revitalizing or re- ’92, with Washington, D.C., Alumni Club leader ’86, and Yehuda Cohen, MBA ’83, and Alumni building the club’s leadership team Adam Borden, MBA ’05, and Alumni Board of Board of Governors Club Committee Chair Jeff Governors Club Committee Chair Jeff Mott, Mott, MBA ’95 MBA ’95

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113756_CS3_38_41.indd3756_CS3_38_41.indd 4141 112/19/072/19/07 4:58:194:58:19 PMPM Café Klatch GIFT TO ROSS SCHOOL WILL CREATE SPACE FOR STUDENT SOCIALIZING

prank Mark Seigle, BBA ’80, Plans for the new Seigle Café call for a high-end, and I think it was attributable to our ability played on his older brother Harry state-of-the-art servery, where hot and cold foods, to make certain that we included humor A years ago serves as a reminder salads and deli items will be offered buffet-style as part of our day.” of what it takes to keep a company at different food stations. Students will be able to Th e friendships Mark established while moving forward in a highly competitive, step from the servery into the adjoining Winter he was a University of Michigan student fast-changing business environment. It Garden to enjoy meals together at café tables or have been equally enduring. Each year also provides insight into a Ross School to talk informally with friends and faculty in lounge- since graduation he and four other friends of Business alumnus who, with his wife type “soft” seating. A fully equipped kitchen located from his student days have returned to Robin Seigle, recently made a $1 million adjacent to the servery will provide catering ser- campus to watch a U-M Wolverines foot- commitment to create a student café, vices for Ross School events. ball game or to stroll through the Ann which will bear his family name, in the Arbor Art Fairs. (Th e only exception to school’s new building. the building had been changed to “Lowe’s” the annual gathering occurred in the wake In the 1980s Harry was vice president in his absence. For a horrifying moment, of the 9/11 terrorist attacks when one friend of the Seigle family owned lumber and Harry thought the family business had from New York felt reluctant to travel.) supply company in Elgin, Illinois, which been acquired by the big-box retail com- Mark’s belief that students need to main- was then called Seigle’s Home and Build- petitor. Th e two brothers shared a chuckle tain a healthy balance between their studies ing Centers. Th eir father, Harold T. Seigle, aft er Mark admitted he had played the joke, and their social interaction, combined purchased what was originally Elgin but the incident underscored the impor- with his family’s philanthropic tradition Lumber and Supply Co. with a partner tance of maintaining a sense of humor, in 1942 aft er the onset of World War II friendship and sociability at work, antici- and revived it into a thriving business pating what the competition is going to do that served the Chicago metropolitan well in advance and, ultimately, making area for decades. Both brothers grew up strategic changes in order to maintain a working behind the sales counter and on competitive advantage. Th ose lessons have the lumberyard fl oor. Aft er Mark gradu- not been forgotten. ated from the Ross School in 1980, he “Humor is such an important ingredient joined Seigle’s full-time, bringing both his in running a business,” Mark says. “You business degree in accounting and his have to enjoy what you’re doing. My brother sense of humor to the company. and I had a great run of 28 years together, When Harry returned from an extended four-week European holiday, aft er leaving his brother in charge, he was startled to Mark and Robin Seigle (center) with their discover that the signage on the front of daughter Margot (left) and son Joel (right)

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113756_CS3_42_43.indd3756_CS3_42_43.indd 4242 112/19/072/19/07 5:00:085:00:08 PMPM of giving back to the community, led him academic and cerebral demands made upon Seigle’s continued its pattern of acquiring to make his gift for the Seigle Café in the their time with their social needs. I feel the strategic companies, including millworks new Ross School building. choice of a café was appropriate for my plants, a wood-window supplier and Michael “If I look back at the strongest friend- gift from a facilities standpoint because Nicholas Carpentry, which added labor as ships I have formed in my life to date, I it epitomizes that balance between the a core competency and positioned the would trace those to my time as a student social and academic aspects of college life.” company competitively in the market. at the University of Michigan,” Mark says. In retrospect, Mark attributes Seigle’s In early 2005, Seigle’s was approached by “To this day I remain close to my room- longevity as a family owned enterprise to a potential buyer. Over the ensuing months, mates. Although academic experiences its ability to stay focused on its unique Mark and Harry carefully weighed the were a big part of my career success, I think selling proposition—based on keeping pros and cons of selling their privately it’s important that students balance the promises, delivering value and being the held fi rm to a public company. Th e con- best—and to carve out a successful niche vergence of many factors, including the within the building materials and supply falloff in family participation in the busi- “Although academic segment of the Chicagoland market. ness by the next generation, the challenge “Recognizing our core competencies and of accessing capital and the anticipated experiences were a playing to our strengths enabled us to slowdown in housing, convinced the broth- fl ourish,” Mark says, adding, “My account- ers to seize the opportunity. Th e winning big part of my career ing education at the Ross School also was bidder for Seigle’s Inc. was Stock Building invaluable, especially coupled with my Supply, a division of Wolseley PLC, which success, I think it’s brother Harry’s legal background.” asked both Mark and Harry to remain in Realizing that Th e Home Depot and managerial positions, thereby ensuring an important that stu- Lowe’s would become formidable competi- orderly transition following the sale of the tors if they migrated northward, Seigle’s company in November 2005. dents balance the shift ed its focus in the 1990s back to its Today, Mark is still active in his role original core customers: the professional as the Illinois marketing manager for academic and cere- builders. “We returned to our roots of the Stock Building Supply. However, he says late-1800s by catering to needs of the trade he is considering various options, includ- bral demands made more than those of consumers,” Mark ing a career change. For now, his interests explains. “Even though it required shutter- center on design-build construction, upon their time with ing a number of our retail consumer-based nonprofi t-management consulting and, stores, we decided to grow the business by quite naturally, the completion of the their social needs.” leveraging our manufacturing and distri- Seigle Café. —MARK SEIGLE bution capacities on behalf of the trade.” Claudia Capos

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113756_CS3_42_43.indd3756_CS3_42_43.indd 4343 112/19/072/19/07 5:00:135:00:13 PMPM Class Notes

Peter deVaux, BBA ’66, MBA ’70 as a naval architect for off shore oil drill- on Negotiated Acquisitions of the Section ended his six years as chair of the board ing ships and on the Hughes Glomar of Business Law. He is a former chair of the of trustees of the Woodrow Wilson Presi- Explorer project in the early 1970s help- State Bar of Michigan’s Taxation Section. dential Library on June 30. He has served ing to salvage a Golf Class Russian sub- on the board since 1993 and will remain marine sunk in 17,500 feet of water in Barry Gesserman, MBA ’81 a trustee. A former advertising executive the Pacifi c. (You can learn more about spent 20 years with the Campbell Soup and current principal of a marketing and this magnifi cent eff ort at www.fas.org/ Company in various marketing and sales fi nancial management fi rm, he has led irp/program/collect/jennifer.htm.) “It roles and now is VP of sales and market- the evolution of Woodrow Wilson’s birth- has been a wonderful summer off ,” says ing and COO at First Flavor Inc. in Bala place in Staunton, Virginia, into America’s John, who claims he has exhausted his Cynwyd, Pennsylvania. First Flavor uses newest presidential library, gathering trips to Th e Home Depot and Costco edible fi lm technology (think breath strips) supporters throughout the U.S. Pete and and is now settling into his Del Webb to enable food and beverage companies to his wife Paula are building a new home retirement community in Jacksonville, include the sense of taste in their advertis- on Vancouver Island, British Columbia, Florida. Rather than just passing time, ing communications. Barry is interested Canada. You can reach him at pfdevaux@ however, John is returning to work help- in reconnecting and networking with cfn.com ing Foss Maritime of Seattle expand their former classmates. You can reach him at business internationally. You can reach [email protected]. Michael R. Schiavoni, MBA ’67 John at [email protected]. a 35-year veteran in the leadership devel- Lee Gorman, BBA ’79, MBA ’83 opment and human resources fi elds, David M. Saltiel, BBA ’75 has been named director of the automo- earned the Charles T. Morgan Award, the has been named one of the top entertain- tive business at Coherix Inc., an Ann highest human resources honor given by ment attorneys in the U.S. by Chambers Arbor-based supplier of holographic and the New Jersey chapter, American Society USA in their 2007 Guide to America’s optical inspection systems. During her for Training Leading Business Lawyers. David was one 28-year career, she has worked for the and Devel- of fewer than 50 media and entertainment former Allied-Signal Automotive and a opment. lawyers to receive the highest ranking, pair of consulting fi rms and has served He earlier the fi ft h consecutive year he has done so. two stints at Ford Motor Co. Recently, received Chambers USA rankings are based solely Lee was a principal at Barton Consulting the Lifetime on recommendations by clients and at- Services in Ann Arbor. At Ford, where Excellence torneys. David, who works for Bell, Boyd she started as a fi nancial analyst, Lee held award. Mike & Lloyd LLP, has represented television various management and engineering has had a and fi lm studios, theater producers and posts, including director of SUV product distinguished owners, comedians, actors, playwrights planning, chief engineer for full-size cars, career that includes 25 years as an HR and fi lm and TV writers. He resides with manager of truck powertrain planning executive with General Electric, where he his wife Sandy and children Brittany and and planning manager for the company’s received four awards. In 2000, he launched Robert in Lincolnshire, Illinois. You can casting operations. his own leadership development consulting reach David at [email protected]. practice. Mike and his wife Suzanne live Robert H. Sack, BBA ’84 in Sparta, New Jersey. Robert R. Stead, BBA ’80 was named the fi rst COO for McShane & has joined the business department in Bowie, western Michigan’s leading real John S. Hollett, MBA ’71 Barnes & Th ornburg’s Grand Rapids, estate development law fi rm, on January retired this past May from TNT Logistics, Michigan, offi ce. Previously, he was a 31. Bob is responsible for the fi rm’s day- where he had been managing director for partner at Miller Johnson where he led to-day man- South America and Europe and business the mergers and acquisitions group and agement, development director for North Ameri- served on the fi rm’s management com- long-term can domestic logistics projects for the mittee. Named a Michigan Super Lawyer planning past 10 years. Prior to that, John served as for mergers and acquisitions by Law & and business managing director, Europe, for Inchcape Politics, Stead focuses his law practice on development. Shipping Services in London aft er work- corporate transactions and tax matters. For the past ing in the marine transportation industry, He is a member of several legal organiza- 12 years he where he was VP of the Middle East for tions, including the American Bar Asso- was senior Crowley Maritime, heading up the oil ciation where he sits on the Committee VP with DP spill cleanup in the Arabian Gulf for the on S Corporations and the Committee on Fox Sports. He is involved in several non- Kingdom of Saudi Arabia aft er Desert Closely Held Businesses of the Section of profi t leadership activities, including the Storm. He also worked for Global Marine Taxation and serves on the Committee Grand Rapids Sports Hall of Fame, the

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113756_cs3_44_48.indd3756_cs3_44_48.indd Sec1:44Sec1:44 112/19/072/19/07 5:01:465:01:46 PMPM CLASS NOTES was the strong, principles-based ac- support of all GMAC enterprise-wide counting education I received at Michi- business units globally. Mark formerly Grand Rapids Chamber of Commerce, gan, particularly from Professor Harold worked at KPMG LLP where he was the Junior Achievement and Legacy Chris- Arnett, that allowed me to successfully lead client-service partner for GMAC, in tian School. He and his wife Debbie live sit for the CPA exam nearly 20 years aft er addition to heading KPMG’s banking and in Kentwood, Michigan, with their three graduation,” says Lyle. He recently sup- fi nance advisory services teams in the Mid- children. You can reach Bob at rhs@ plemented his MBA with a master’s de- west and KPMG’s internal audit and regu- msblaw.com. gree in fi nance at Walsh College in Troy, latory compliance practice in Detroit. Michigan, and was selected to receive the Mark is a Certifi ed Public Accountant and Mark A. Kielb, MBA ’85 2007 Financial Executives International a Certifi ed Internal Auditor. was appointed senior VP and CFO of Award for Academic Excellence. He also Altarium Institute on January 18. Mark’s was asked to join the Walsh College Fi- Marc A. Wites, BBA ’91 responsibilities include mergers and ac- nance Advisory Committee. An experi- is principal at Wites & Kapetan PA in quisitions, all accounting and fi nance enced controller and CFO for privately Lighthouse Point, Florida. Th e fi rm repre- functions, asset and treasury manage- held, mid-market companies, Lyle is sents plaintiff s in class actions, brokerage ment, and infrastructure support services. currently leading an intermediate ac- disputes, personal injury litigation and He has 20 years of industry experience counting lab at Walsh College and is medical malpractice actions. More and management expertise with an considering various opportunities in notable, however, is that the law fi rm emphasis on public accounting and private industry. supports the Brazilian and Hispanic high-growth You can reach him at lfj [email protected]. communities and just awarded $10,000 technology in scholarship funds to six students. Th e companies. Valerie Barker Waller, MBA ’89 winners in each category received $2,500, Mark has been is the vice president of marketing and $1,500 and $1,000, respectively, which a speaker and public relations at the Museum of Science must be used for tuition or books dur- panelist at and Industry in Chicago. She and her ing the fall 2007 semester. Information various tech- husband Steve, a management consultant about the WKPA Dream Scholarship, nology and with Booz Allen Hamilton, have a 15- as the fi rm calls it, is available at www. entrepreneur- month-old daughter Marin and recently wklawyers.com/scholarship/scholarship. ial events, sponsored by the Ross School, celebrated the birth of their second php. You can reach Marc at mwites@ the Michigan Technology Council, the daughter Greer Key Waller on July 20. wklawyers.com. University Offi ce of Technology Transfer and the Michigan Biotechnology Associa- Pat Jenkins Hurlock, MBA ’91 Dawn Scott Batts, MBA ’92 tion. Altarium Institute is a nonprofi t was with American Express for 10 years and and Domineca Neal, MBA ’94 research institution in Ann Arbor that now is president of Hurlock Marketing joined forces to open a Cartridge World seeks to become the nation’s preeminent Enterprises Inc., specializing in marketing franchise in the metro Chicago area. provider of objective health systems consulting, Th ey believe their Ross School and cor- research and solutions. event plan- porate experiences made the business ning and ownership transition transparent. Both Brandon Crocker, MBA ’87 business have owned other businesses, including was named CFO of Th e Windstar Group, seminars. a Wendy’s franchise and an investment a San Diego-based commercial and She recently advisory fi rm, and they anticipate this residential development company with celebrated business will be very successful. Cartridge projects throughout California and Wash- fi ve years of World is the world leader in printer car- ington. Th e Windstar Group formerly business by tridge refi lling, with more than 1,400 operated under two names: Nexus Prop- launching the stores worldwide. You can reach Dawn erties Inc. for commercial properties, new Web site www.hurlockmarketing. at [email protected] and specializing in biotech laboratories and com. Pat resides in Rockland County, Domineca at [email protected]. fl ex-tech/offi ce space, and Windstar New York, with her husband Byron and Communities for residential condomini- daughters Jaenique and Javon. You can Hau Th ai-Tang, MBA ’93 um and apartment projects. Brandon reach her at [email protected]. was named director of product develop- started working at Nexus Properties in ment for Ford Motor Co.’s South Ameri- 1988 and formerly was director of asset Mark H. Weintraub, BBA ’91 can operations based in Brazil on March management for Nexus/Windstar. was appoint- 1. Th ai-Tang, who was raised in New You can reach him at bcrocker@ ed in January York, joined Ford in 1988. He received windstargroup.com. as general his undergraduate degree in mechanical auditor for engineering from Carnegie-Mellon Uni- Lyle Finkle Jr., MBA ’87 GMAC Fi- versity. Prior to his promotion, he was was awarded the Illinois CPA Society’s nancial Ser- director of advanced product creation Gold Excel Award on May 31 for earning vices’ Global and special vehicle team, and oversaw the the top score in Illinois on the Uniform Audit orga- development of the 2007 Shelby GT500 CPA Exam for 2006. “I’m convinced it nization in Mustang. He also has served as chief

dividend 45 fall 2007

113756_cs3_44_48.indd3756_cs3_44_48.indd Sec1:45Sec1:45 112/19/072/19/07 5:01:485:01:48 PMPM CLASS NOTES ily currently reside in New York City. You Linda Mok, BBA ’01 can reach him at bfrankel@mars&co.com. is a senior associate at the Silicon Valley engineer for the 2005 Mustang, and led offi ce of Draper, Fisher, Jurvetson ePlanet the development of the 2001 Mustang Martha Masterman Gordon, MBA ’98 Ventures, a global venture-capital fi rm GT, Cobra and Bullitt GT models. You joined the Arbor Strategy Group (ASG) where she works with entrepreneurs to can reach him at [email protected]. as a consultant in March 2007. ASG, lo- help them develop global marketplace cated in Ann Arbor, is a consulting fi rm strategies. Linda, who was born in Singa- Ginger Wilson, MBA ’93 specializing in strategic brand innovation. pore, came to the University of Michigan is founder and managing principal of Martha brings her traditional marketing on a Singaporean government scholar- legalQuest LLC, Chicago’s fi rst and only background from her former marketing ship, and aft er graduation she became minority- and women-owned full-service position at Campbell Soup Company, in the youngest person to join the strategy- legal staffi ng fi rm, which specializes in addition to retail marketing experience at planning team of a billion-dollar real the temporary and direct-hire placement Borders Group. Martha says, “It is great estate development company in Singa- of attorneys and paralegals with law fi rms for me to have found this opportunity pore. Later, she was able to transition into and corporate law departments. Ginger right here in Ann Arbor—a consulting venture-capital investment at DFJ ePlanet began her legal career as a tax attorney fi rm that works with Fortune 500 compa- Ventures. Linda is active with the U-M and CPA. Prior to founding legalQuest, nies and specializes in what I fi nd most chapter of AIESEC, an international stu- she spent eight years with the nation’s exciting in business: identifying future dent organization. largest legal staffi ng fi rm, where she served areas of opportunity for companies and as executive director of its Chicago offi ce. helping them fi ll those spaces with break- Adam Borden, MBA ’05 She is an active member of the Chicago through, actionable innovation.” Martha’s founded a Baltimore-based venture-capital Bar Association and the Black Women husband Scott recently has taken a new fi rm called Bradmer Foods in 2005. He Lawyers’ Association. You can reach her position as a powertrain engineer with celebrated the successful IPO of his fi rst at [email protected]. the diesel division of General Motors. portfolio company, Organic To Go, an Martha and Scott have two young chil- organic-food retailer and caterer, earlier Tony Harris, BBA ’97 dren, 4-year-old Finley and 2-year-old this year. He is now raising money for his left BMO Capital Markets, along with Madilyn. Th ey thoroughly enjoy living fi rst investment fund. Bradmer brings several colleagues, and established an in Ann Arbor and welcome friends who together small early-stage specialty-food alternative asset management company are returning to their alma mater for a businesses and investors. Adam cultivated called Six Degrees Capital Management, visit. You can reach Martha at mgordon@ a penchant for specialty foods aft er col- which will specialize in making struc- arborstrategy.com. lege while working for a caviar importer tured product investments across the in New York and combined it with his capital structure. Th e fi rm also expects to Ralph Bolognese & Karen Maruyama interest in entrepreneurial business. establish an asset-backed collateralized Bolognese, MBA ’99 debt obligation management business. announced the birth of their daughter, Matt Brynildson, EMBA ’06 “As an alter- Anne Maruyama Bolognese, on June 2, recently was appointed head of human native asset 2006. Anne arrived promptly and was 7 resources for Kenworth Truck Company, manager, we lbs., 13 oz. and 19.5 inches. She is a very a $4 billion division of PACCAR Inc., expect to active, cheerful girl who loves people, based at their headquarters in Kirkland, target attrac- animals, lights and observing everything Washington. Kenworth is a leading manu- tive returns around her. Congratulations may be sent facturer of heavy- and medium-duty that are non- to [email protected]. trucks and the recipient of three J.D. correlated Power and Associates awards for customer with and Chekesha Kidd, MBA ’01 satisfaction. Matt was previously senior provide lower was honored at Th e Network Journal 10th director of human resources at Arvin- volatility than other investments off ering Annual “40-Under-Forty” Achievement Meritor in Troy, Michigan, and also has similar returns,” says Tony. You can learn Awards Dinner on June 21 in New York held HR leadership positions with Coca- more about Six Degrees at www.sdcm. City. Th e journal is the premier magazine Cola and Chevron. com, or contact Tony at Tony.Harris@ for Black professionals. Th e event was sdcm.com. fi rst held in 1997 to recognize the next Jason Jarjosa, BBA ’96, MBA ’06 generation of African-American leaders is an associate with TouchStone Partners, Brad Frankel, BBA ’98 who have proven to be exceptional per- a private-equity fi rm in Birmingham, has been promoted to senior consultant formers in their respective industries and Michigan, where he analyzes, evaluates at Mars & Co., a management consulting committed to the development of their and makes investments in real estate and fi rm specializing in business strategy. communities. Chekesha is a director in distressed or turnaround assets. Touch- Brad joined Mars & Co. aft er earning the Investment Banking Department Stone’s founder, Gerald Timmis, is a U-M his MBA from Georgetown University in of UBS Securities. You can reach her at alumnus, and the company regularly 2005. He is a member of the Greenwich, [email protected]. sponsors interns and hires graduates from Connecticut, offi ce where he has worked the Ross School. on a broad range of strategic engagements for Fortune 100 clients. Brad and his fam-

dividend 46 fall 2007

113756_cs3_44_48.indd3756_cs3_44_48.indd Sec1:46Sec1:46 112/19/072/19/07 5:01:495:01:49 PMPM OBITUARIES University in St. Louis, where he became director, fi nancial planning and analysis, associate dean and professor of economics. treasurer and vice president of fi nance. He then served as dean and professor In 1977 Alan left the automaker to form Gilbert R. Whitaker Jr. of business economics at Texas Christian A.H. Foster & Co., a corporate fi nancial served as dean of the U-M Business University from 1976 to 1978, before consulting fi rm, which he headed until School from 1979 to 1990 and as provost coming to Michigan. During his eight 2006. He also was the president of Finan- and executive VP for academic aff airs at years at Rice, Whitaker was the driving cial Risk Management from 1983 to 2006. U-M from 1990 to 1995. He died on June force behind the conception, design, Alan served as adjunct professor of cor- 21 in Houston at age 75. “As dean, Gil led funding and building of McNair Hall, porate strategy and international business Michigan’s Business School to national in which the Jones School is now housed. at the Ross School from 1983 to 2002, In 1998, he and his wife Ruth pledged winning the Student Award for Teaching $100,000 toward the new building. Excellence in 1994 and the Dean’s Award A native of Oklahoma, Whitaker re- in 2001. He co-founded the Detroit chap- ceived a bachelor’s degree in economics ter of Commanderie de Bordeaux and from Rice in 1953 and a master’s and served as president of the Detroit chapter doctorate in economics from the Uni- of the Financial Executives Institute. versity of Wisconsin in 1958 and 1961, Alan also was a member of the Baker respectively. He was a member of the Street Irregulars, Speckled Band of Bos- Navy ROTC and upon graduation from ton, Institute of Management Sciences Rice was commissioned an ensign and (past national chair), University of Mexico assigned to the USS Isherwood destroyer, Club, Samuel Pepys Club, Harvard Club serving in both the Mediterranean and of NYC, Harvard Faculty Club and Ann Pacifi c. Arbor chapter of the Secular Order of Whitaker is survived by his wife of Discalced Carmelites. 53 years, Ruth; their three children Kate, David and Th omas; his sister and fi ve grandchildren. Kenneth Warren MBA ’47 Alan H. Foster passed away on September 30, 2006, in Moraga, California, where he was receiv- was a senior fi nancial executive and Uni- ing hospice care for cancer. Ken was born versity of Michigan adjunct professor. He in Elizabethtown, Kentucky, on March 5, died October 18, 2006, at age 80. Alan 1922. He spent his youth in Fort Wayne, was born November 7, 1925, and married Indiana, and earned an accounting degree Cynthia Ann Brooks on June 26, 1954. at the Ross School. During WW II, Ken Th ey had two children, Mark Brooks and served as an offi cer in the U.S. Navy in Andrew Herbert. Alan served in the U.S. the Atlantic. Aft er the war, he married prominence,” said Dean Robert Dolan. Naval Reserve from 1945 to 1946 and Mary Whitehead and started a family and “He doubled the size of the faculty, spear- received a BA and BS from Boston College a 40-year career in accounting. Ken re- headed the school’s eff orts to attract out- in 1951 and an MBA from Harvard Univer- tired in 1988 and lived in Paradise, Cali- standing minority students and expanded sity in 1953. He worked at Sylvania Elec- fornia, with Mary until her death in 1995. the school’s facilities.” Upon Whitaker’s tric Products from 1953 to 1963 before In 1999, Ken married longtime Paradise departure from Michigan in 1997 to joining American Motors Corp., where he resident Carol Fickett and joined Craig become dean of Rice University’s Jones held several positions including corporate Memorial Church, where he volunteered Graduate School of Management, then- as treasurer. Ken is survived by his wife president Lee Bollinger noted U-M was Carol, sister Evelyn, sons David and Tom, losing “one of its most talented and and daughters Anne and Susan. dedicated faculty members. As dean he brought national prominence to the Michigan Business School, and his strong commitment to strengthening the Uni- versity’s academic programs was evident during his tenure as provost.” Whitaker was a professor of business economics, and his research interests included the cost-eff ective use of technology in teaching and corporate governance. He began his teaching career in 1960 as an associate professor of business economics at Northwestern University. In 1967 Whitaker went to Washington

dividend 47 fall 2007

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Coming: Fall 2008

A cloudless Ann Arbor sky off sets the new Stephen M. Ross School of Business facility, photographed in August 2007.

113756_Cs3_Cover.indd3756_Cs3_Cover.indd 4 112/19/072/19/07 4:14:424:14:42 PMPM