Dividend University of Michigan Business School Spring 1999 REUNION,REUNION, TogetherTogether Again!Again! PLUS: Gene Imhoff on Foreign Investing in U.S. Markets University of Michigan Business School Reunion99 October 21 –24, 1999 We’re holding a spot for you Celebrating all alumni, and especially the Classes of ’59, ’74, ’79, ’89, ’94, and ’98. For further information, call Alumni Relations: 734-763-5775 E-mail: [email protected] Details and registration on web site: www.bus.umich.edu/ reunion99 It’s time to come back to Ann Arbor! Volume 30, No. 1 Dividend Spring 1999 2 Across the Board News of the University of Michigan Business School—Asian Business Conference… C. K. Prahalad and Kenneth Lieberthal win McKinsey Award… Wolverine Venture Fund…Global Learning Center— from Ann Arbor and around the world. 7 Faculty Opinion Barbara Everitt Bryant, former director of the U.S. Bureau of the Census, explains why there is no consensus on the census. 9 Quote Unquote Who is saying what…and where. Page 10 10 Reunion ’98 For three days, 900 B-School graduates gathered for a weekend like no other. 20 Putting the MBA to Work Alumni panel shares experience and advice during Reunion ’98. 22 Compromising Standards Threatens Capitalism Gene Imhoff, chair of the Department of Accounting, discusses foreign investing in the U.S. capital markets. 27 Ovation Financial support boosts professorships, endowment and recruiting. Page 20 31 Club News Boston, Hong Kong, Los Angeles, New York, Chicago, Detroit, San Francisco, Seattle, South Florida, Washington, D.C. 33 Alumni Club Calendar of Events Page 22 34 Class Notes The goings-on of friends and colleagues, plus profiles of Aparna Agrawal, MBA 82; John W. Norris III, MBA ’84; Julie T. Wu Lee, MBA ’85; Pamela E. Starrett, MBA ’88; and Yuval Moed, MBA ’91. 47 Alumni Network Update Strengthen ties with the University of Michigan Business School: Complete and return your update form today! Cover photo of Philip A. Dawson, BBA ’93, at Reunion ’98, by Michael J. Schimpf Dean: B. Joseph White; Associate Deans: Susan J. Ashford, Gautam Kaul, F. Brian Talbot Editor: Cynthia Shaw; Class Notes and Copy Editor: Fred P. Wessells Contributors: Susan Bleznick, Claudia Capos, Eldonna May; Editorial Assistant: Julie Antis Designer: Blue Pencil Creative Group, Ltd. Chief Photographer: Michael J. Schimpf; Photographers: Peter Ingalls, Bill Wood Copyright ©1999 The University of Michigan Business School. This publication is produced by the Office of Communications and made possible through the generosity of private donations. ACROSS THE BOARD Asian Business Conference Agenda for Recovery is Clear: Success Hinges on Reform ow did the “Asian Breedlove, MBA ’80, Steven turnarounds will be difficult discipline and accounting Htiger” turn into the Wynn, MBA ’83, Peter in Indonesia, where 85 per- standards, and increasing “Asian crisis?” Trager, MBA ’89, Charles cent of the loans are non- managerial skill bases, for Frank, energetic discus- W. Breer, MBA ’92, Craig performing (valued at example—can be accom- sions about Asia’s financial Phares, MBA ’92 and $34.1 million) ; and South plished internally or only woes and its prospects for Makoto Ariga, MBA ’93— Korea, which is held in the through intervention by recovery created a highly who spoke from their van- vice-like grip of five pow- multinational corporations charged atmosphere as par- tage points at corporations erful controlling families remains to be seen. ticipants debated the issues with major interests in Asia. (called chaebols). Looking “Don’t write off Asia yet,” at the Business School’s 9th At the opening session, at the other end of the concluded Prahalad. “The Asian Business Conference, keynote speaker C. K. spectrum, Prahalad said, countries that come back will held January 28–29. More Prahalad acknowledged the “I don’t believe Hong Kong, compete with new vigor. than 700 students, faculty Asian crisis took nearly Singapore and Taiwan have When they do, they will be and business professionals everyone by surprise. “Five a problem.” tougher. It’s not time for attended the two-day event. years ago, the discussion was: In any case, whether champagne and cigars yet.” Key international figures, Is Asia going to lead? Today, the wide-ranging reforms including Dr. Dorodjatun the question is: Is Asia going needed for economic Kuntjoro-Jakti, Indonesia’s to survive?,” said Prahalad, recovery—eliminating crony ambassador to the United the Harvey C. Fruehauf capitalism, restructuring States, and Dr. Suk-Chae Professor of Business assets, instilling corporate Lee, former chief economic Administration and pro- governance, adopting credit advisor to the president of fessor of corporate strategy Korea, provided valuable and international business. insights into the recovery “With few exceptions, prospects and economic nobody saw this coming.” THE ASIAN BUSINESS future for their respective In retrospect, Prahalad CONFERENCE IS THE countries. Complementing added, “The success of Asia Business School’s largest their views were eight com- contained the seeds of its annual student organized pany CEOs or presidents, own failure.” Factors that event, with involvement including Fuji Logitech initially led to tremendous from more than 50 men and president Takeo Suzuki, growth in the early 1990s— women from five different MBA ’76, and other Business crony capitalism, increasing University of Michigan School graduates—Mark dependence on export-led degree programs. Linda growth, conglomerate diver- Lim, associate professor of sification, financial leverage international business and and excess capacity—even- director of the Southeast tually contributed to the Asian Business Program, Frank Chong, MBA2, and region’s economic collapse serves as the faculty advisor. Mark Guthrie, MBA1, led the planning of the 1999 in 1997. The theme, “Recovery in Michael J. Schimpf Michael conference. He cautioned against Asia,” offered eight panel bundling all countries in discussions made up of 26 speakers who discussed region- Asia into the same economic and industry-specific topics such as Greater China, South Asia, package: “If there is one ASEAN, Japan, high technology and telecommunications, thing we’ve learned from finance, marketing and operations. “Despite what has been the Asian crisis, it is this: going on in Asia, companies and governments represented at Don’t look at Asia as a the conference were cautiously optimistic about the region’s monolith…there are all future,” says Frank K. Chong, MBA/MA China Studies ’99 and kinds of differences.” chair of the 9th Asian Business Conference. “Companies Economic progress will remain committed, believing Asia is the next market to ener- be determined largely by the gize. Our theme, ‘Recovery in Asia,’ reflected that outlook.” highly differentiated capaci- For comprehensive coverage of the conference or to learn ties for renewal among Asian more about the upcoming January 20–21, 2000, conference, C. K. Prahalad countries. He said economic visit www.umich.edu/~asiabus. 2 / SPRING 1999 Intellectual Capital Breakthrough Thinking on Emerging Economies Wins McKinsey Award K. Prahalad and An Interview with Dell new business models. The C.Kenneth Lieberthal Computer’s Michael Dell.” authors guide readers have won a McKinsey Award In “The End of through five questions com- for their article, “The End of Corporate Imperialism,” panies must answer to com- Corporate Imperialism,” Prahalad and Lieberthal, pete effectively. which appeared in the who is currently on leave For the past 40 years, the July–August 1998 Harvard from the Business School to McKinsey Foundation for Business Review. serve as special assistant to Management Research has The article, written the president and senior offered awards recognizing by Prahalad, the Harvey director for Asian affairs the two best management C. Fruehauf Professor of at the National Security articles published each year Business Administration and Council, observe that when in Harvard Business Review. professor of corporate multinationals first entered The awards recognize out- strategy and international emerging markets in the standing works that are likely business, and Lieberthal, the 1980s, they saw them as to have a major influence on William Davidson Professor opportunities to unload old the actions of business man- of Business Administration, products and sunset tech- agers worldwide. professor of international nologies. But they met with business and the Arthur F. limited success. To be com- Thurnau Professor of petitive in the emerging con- To obtain a reprint of “The End of Corporate Imperialism,” Political Science, tied for the sumer markets of the check the appropriate entry on the Alumni Network second-place award. Joan post-imperialist age, the Update form, which appears on the last page of this Magretta won first place authors contend the multi- magazine, and return the completed form in the self-addressed for her article, “The Power nationals must now develop envelope provided. of Virtual Integration: a new mind-set and adopt The Alumni Society Board of Governors welcomes its new members: • Ted Haddad, BBA ’92, vice president, R. H. Bluestein & Co., Birmingham, Michigan • Andre McKoy, MBA ’92, vice president, Global Project Finance—New York, Citicorp Securities • Edward “Ted” Michael, MBA ’68, Naples, Florida • Jill Rupple, BBA ’86, director of recruiting, Diamond Technology Partners, Chicago • Michele Takei, MBA ’74, senior manager, Treasury Planning and Analysis, Sun Microsystems Inc., Palo Alto, California • George