Fall 2009 Prof. Oliver Williamson Wins Nobel Prize in Economics Nonprofit Organization CalBusiness US Postage Haas School of Business PAID University of California, Berkeley Admail West 545 Student Services #1900 Berkeley, CA 94720–1900 CalBusiness The Magazine of the Haas School of Business at the University of California, Berkeley Business Beyond Borders From Everest to San Francisco, Alumnus Richard Blum Touches Many Lives Plus: New Haas Leading Through Innovation Award Recognizes Prof. Henry Chesbrough, PhD 97 The Magazine of Fall 2009 CalBusiness the Haas School of Business at the University of Contents California, Berkeley Senior Editor Features Richard Kurovsky On the Cover: Editor 8 Business Beyond Borders Ute S. Frey Richard C. Blum, BS 58, MBA 59, has been Managing Editor named the recipient of the Haas School’s Ronna Kelly, BS 92 2009 Lifetime Achievement Award to recognize his accomplishments in the worlds Staff Writers of business and philanthropy. Valerie Gilbert Pamela Tom Contributing Writers Leading Through Innovation Bill Brazell, Laura Counts, 11 Adjunct Professor Henry Chesbrough, PhD 97, Jennie Lay, Cyril Manning, receives the Haas School’s first Leading Bill Snyder, K.C. Swanson Through Innovation Award. Design Cuttriss & Hambleton, Berkeley Your Haas Network in Digital Media 12 Profiles of Three Haas School Alumni in Printer Digital Media and Entertainment Fong & Fong, Sacramento Darrell Rodriguez, MBA 94, LucasArts Photography Danae Ringelmann, MBA 08, IndieGoGo Robert Bean, Abhijit Bhatlekar, David Porter, MBA 00, 8tracks Jim Block, Toni Gauthier, Peg Skorpinski, Peter Stuckings Your Haas Network in CalBusiness is published by the Haas School of Business, 14 Profiles of Three Haas School Alumni in Asia University of California, Linh Do, MBA 04, Worldwide Orphanages Berkeley. For further Pashupati Advani, MBA 81, information, contact: Advani OTC Dealers CalBusiness Editor 8 Shaukat Khan, BS 62, Mehboob Film Studios Haas School of Business University of California Berkeley, CA 94720-1900 510-643-0259 Departments [email protected] CalBusiness Fall 2009, Number 71. CalBusiness is published three times 2 In Brief 6 Power of Ideas a year (fall, winter, and spring/sum- Haas, McKinsey Serve mer) by the Haas School of Business, Up Nonprofit Solutions 16 Alumni Notes University of California, Berkeley, CA 94720-1900. Prof. Williamson Wins 28 Haas Alumni Economics Nobel Prize POSTMASTER: Send address Network Worldwidede changes to CalBusiness, Haas New Hires Strengthen Events Haas Faculty Roster School of Business, University of California, 545 Student Services 31 In Memoriam #1900, Berkeley, CA 94720-1900. 5 Innovation Wizards Printed in the USA on recycled paper. Edward Lee and Alex 32 Personal View Fall 2009 Pabon, MFE 02, Petrofix The Road Less Tradedd Printed in the USA. Nikhil Arora and By Tariq Dennison,, Alejandro Velez, BS 09, MFE 04 Printed on FSC-certified recycled BTTR Ventures paper using soy-based inks. Michael Natenshon, To update your address, visit MBA 09, haas.berkeley.edu/alumni/haasatcal Marine Layer and click “My Profi le.” Cindy Karasick, MBA 02, Wrigley Prof. David Teece: 6 How Firms Build Competitive Advantage “We came to Haas because Design Eye for Prof. Oliver Williamson Wins we wanted help creating a 21st century business model to have Tech Program an even greater impact on mil- Senior Lecturer Nobel Prize in Economics lions of girls’ lives by expanding Sara Beckman GoGirlGo! around the country,” has been named says WSF Senior Program the new co- Officer Cicley Gay. faculty director of Hundreds of Haas School faculty, staff, and students toasted InBrief While students in S3 gain the Management News from the Haas School Professor Oliver Williamson on Oct. 12 after he was named a hands-on consulting experi- Senior Lecturer of Technology Sara Beckman winner of the 2009 Nobel Prize in Economic Sciences. ence from such projects, they (MOT) Program. also learn academic frame- MOT is a part- nership between Haas and the works in a course taught by illiamson shares the prize Nora Silver, director of the College of Engineering that focuses on the use of technology with Elinor Ostrom of Indiana Center for Nonprofit and Public University. Both were Leadership, and Paul Jansen, to obtain competitive advantage recognized for their analyses founder of McKinsey’s nonprofit and brings MBA and engi- W of economic governance. The award is the practice and a director emeritus neering students together in the with the firm. The program is classroom. Beckman’s charge second Nobel in economics for the Haas one component of the Haas at MOT includes exploring new School and the fifth for UC Berkeley. School’s nonprofit learning opportunities and integrating the “It’s undeserved I suppose,” Williamson, 77, opportunities — a specialty for program more tightly with the told a crowd of more than 300 people packed which Haas was ranked #3 by Haas School’s “Leading Through into the school’s Bank of America Forum to Innovation” emphasis on US News & World Report. celebrate with him. “I would describe myself 3 developing leaders who know S has served 28 clients since as a conscientious teacher who had a lot of its inception, and Silver has only how to put new ideas to work. Beckman’s efforts pioneering the students who were tolerant and went on to seen demand increase from both do good work.” students and clients. “S3 offers a study of product development Williamson’s work involves a multi- PEG SKORPINSKI high-impact experiential learning and design thinking in the MBA disciplinary field that he mapped out to study opportunity,” says Silver. “It helps curriculum were a key factor that Haas Professor Oliver Williamson answers press students build consulting skills, led BusinessWeek to name Haas how varying organizational structures for questions hours after being named a winner of the 2009 Nobel Prize in Economics. understand the nature of non- one of the world’s top design markets and institutions affect economic profits, and have a real impact in schools in the world. CB activity. One of the world’s most cited overlooked in the world of economics.” the community.” CB economists, Williamson is credited with Williamson, the Edgar F. Kaiser Professor co-founding “New Institutional Economics,” Emeritus of Business Administration and a which emphasizes the importance of Venture Launchpad professor emeritus of economics and law, formal institutions, as well as informal is the author of several books. They include Blasts Off Undergrads institutions such as social norms, and how Budding student-entrepreneurs Markets and Hierarchies: Analysis and Take Two they affect transaction costs. His insights at Haas now have a new step- Antitrust Implications (1975), an economics have influenced everything from electricity by-step guide to help them The Haas Undergraduate classic, and The Economic Institutions deregulation in California to investment successfully get their busi- Program climbed to #2 of Capitalism: Firms, Markets, Relational Women’s Sports Foundation, in Eastern Europe to human resource founded by Billie Jean King, is Haas, McKinsey Serve Up nesses off the ground. The UC in this year’s US News & Contracting (1985), which is said to be the management in the technology industry. among the nonprofit clients Berkeley Venture Launchpad World Report most frequently cited work in social science that have teamed up with the Nonprofit Solutions outlines all of the opportuni- Before toasting Williamson in the BofA ranking, up research. Haas School’s Social Sector ties and offerings available to Forum, Haas School Dean Rich Lyons said Solutions (S3) Program. Pictured 3 from #3 for Williamson is the Haas School’s second When tennis star Billie Jean King years, S has dispatched teams student-entrepreneurs during he “could not do justice” to the depth and here are the foundation’s Cicley decided she wanted to nation- of MBA and undergraduate the previous Nobel Prize Laureate. In 1994, the late John Gay; Kirstin Mennella, MBA 10, the entire life cycle of devel- scope of Williamson’s contributions to the alize a program that promotes students to consult with non- Harsanyi was awarded the Nobel Prize in the student lead on the foun- oping a business, from idea six years. Haas field of economics. “I don’t know how I’m dation’s S3 project; and Nora health and wellness for girls profits like the Women’s Sports Economics for his work in game theory, a creation to going live. While tied for second with MIT going to contain myself,” Lyons said. “I Silver, director of the Center for through sports, the challenges Foundation that are poised to several components of the mathematical theory of human behavior in Nonprofit and Public Leadership, Sloan. Wharton took #1. couldn't be more proud of the Haas School. I 3 seemed daunting. The team at launch entrepreneurial ventures. Venture Launchpad have been competitive situations that has become a which created S . 3 UC Berkeley remained couldn't be more proud of Oliver Williamson. King’s nonprofit, the Women’s S matches each client with in place at the school’s Lester dominant tool for analyzing real-life conflicts Sports Foundation, faced several a custom-built team backed the #1 public university Olly, well done.” Center for Entrepreneurship in business, management, and international questions that did not have easy by classroom curriculum and a and ranked 21st nation- Williamson's son, Oliver Williamson Jr., and Innovation for many years, relations. answers: Which cities should be McKinsey coach. For instance, ally among public and visiting from Poland, handed his father the the Launchpad more clearly (Editor‘s Note: Williamson’s award was targeted? Who are the partners? to help the Women’s Sports delineates which component private schools. phone at 3:30 a.m., saying, “I think this is announced days before CalBusiness went to What is the business model? Foundation develop a plan to can help an entrepreneur at the call.” The elder Williamson said he hopes 3 press.