Builders&Leaders

Boston University School of Management FALL 2010

inside

Rankings Up, Up Again.

BU, The Capital of Entrepreneurship.

The Overconfident CEO.

Who Owns the Brand?

Engaging Ideas.New Dean Ken Freeman sees a world of potential ahead of us.

Visit Builders & Leaders online.Featuring: •Latestissue •Specialwebcontent •Classnotes •DownloadablePDFs •Archives

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Boston University School of Management

City Light. Chuck Gordon,

GSM ‘91. 30

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Rankings Jump. EMBA Now #11 in US. 3Employers’ Choice. QS ranks MBA #16. 3Show Me The Money. Feld Finance Forum. 4Happy Anniversary. MSIM turns 10. 4Incoming Classes. Larger and Smarter. 5Hayden Estrada. 1959-2010. 6 Online All the Time. UPO Goes Paperless. 6The Green Pages. Sputnik Alarm. 7EMBAs Taste Apples; Alums Remember. 9Irish Gig. Honors Program Visits Ireland. 10

The Index. Business by the Numbers. 15

PROFiLEs

Evan Gross, BSBA ’12. 11Ajay Mehta, MBA ’11. 12Jessica Maclean, PEMBA. 13

Ben Lawrence, PhD ’11. 14

FEATURE

Cover Story: The Ken Freeman Era Begins. 16

FACULTy

New Full-time Faculty. 25Faculty Accolades. 28

Faculty Profile. Chris Dellarocas. 29

ALUmNi

Paparazzi. Say Cheese. 31Classnotes. Whassup? 32Leaders and Givers. Recognizing Donors. 33

COmmENTARy

Kathy Kram: Developmental Networks. 38Dean Freeman: Respect and Results. 40

LAsT WORD

Susanne Lyons, GSM ‘82. Inside Back Cover

Entrepreneurship at Boston University. ITEC Leads the Way. 21

Builders&Leaders

Fall2010

The Overconfident CEO. Professor Timothy Simcoe Explains. 26

FSClogo

BOsTON UNivERsiTy sChOOL OF mANAgEmENT

DEAN

Kenneth W. Freeman

SENIOR ASSOCIATE DEAN

Michael E. Lawson

ASSOCIATE DEAN, FINANCE AND ADMINISTRATION

Martin Carter

ASSOCIATE DEAN, ACADEMIC PROGRAMS

John Chalykoff

ASSISTANT DEAN, DEVELOPMENT AND ALUMNI RELATIONS, ad interim

Ilisa Hurowitz

ASSISTANT DEAN, GRADUATE PROGRAMS

Katherine Nolan

ASSISTANT DEAN, UNDERGRADUATE PROGRAM

Sandra Procopio

DIRECTOR OF MARKETING

Suzanne Otte

BUiLDERs & LEADERs

EDITOR

John DiCocco

ASSOCIATE EDITOR

Alissa Mariello

CREATIVE David Linde emergedesigngroup.com

CONTRIBUTORS

Joel Carlton-GysanAdriane DeanLauren DezenskiHannah Gathman Kathy E. Kram James PostTracy SlaterJennifer Tobin

PHOTOGRAPHy & ILLUSTRATION CREDITS

Julie CordeiroJohn DiCoccoAlissa MarielloDon RockheadLen RubinsteinNatalie SchieraJennifer TobinDan WatkinsiStock.comCover: Len Rubinstein

DEAN’s mEssAgE

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Builders&Leaders

A NEw BEGINNING.

Greetings!

The 97th academic year in the history of Boston University School of Management is underway. your School is a buzz of activity on many fronts including ongoing faculty research, energetic discussions between students and faculty inside and outside the classroom, a number of executive education seminars, and many visits by prospective employers. In addition, the faculty is discussing ways to ensure that the curriculum is relevant to meet tomorrow’s needs with a focus on information systems, finance, health care, sustainability, and globalization.

It is a privilege and an honor to serve as your new dean. The School has made great strides, with special recognition and gratitude to Dean Emeritus Lou Lataif for the many accomplishments achieved during his 19 years at the helm. I look forward to building on Lou’s legacy as we continue the pursuit of greatness, establishing Boston University School of Management as a preeminent provider of undergraduate and graduate business education.

The opportunity is clear: to create value in a changing world—educating the next generations of responsible and responsive global leaders, and producing insightful management research. Based on the enthusiasm of faculty, students, administrators, and alumni, a very bright future lies in front of us. It will be an incredible journey!

Sincerely,

Ken Freeman

EmBA PROgRAm RANKs 11Th iN Us. The School of Management’s Executive MBA Program (EMBA) has raked in recognition from multiple sources this year. In October, Financial times named the EMBA Program 11th in the US (the top program in New England) and 40th in the world. The international jump of 23 spots from 2008 is the largest of any school in the listing. Furthermore, the average alumni salary three years after graduation is 21st highest in the world. The ranking was based on program and alumni feedback in the categories of Career Progress of Alumni, School Diversity, and Idea Generation. In addition, the Wall Street Journal 2010 rankings named the EMBA Program 20th overall in the country. It was the only New England program to make the rankings. It was also named 6th in the category of most economical, and 14th overall for alumni satisfaction. In the category of Imparting Crucial Management Skills, it ranked 18th. Additionally, the BU EMBA placed in the top one-third in each of the following survey categories: Program Quality, Faculty Quality, Classmate Quality, and Immediately Applicable Coursework. The program was reviewed based on three elements: a survey of recent graduates, a survey of recruiters, and how well the program imparts the skills identified as crucial by those who were surveyed. All of this buids on a November 2009 ranking by BusinessWeek that placed the School 23rd among executive MBA programs—the program’s first appearance in that ranking since 2001.

ThiRD ANNUAL ONE-yEAR iNTERNATiONAL mBA (imBA) ALUmNi PANEL. For the past three years, the Alumni Panel Discussion and Reception has been giving current IMP/IMBA students a view of the working world. For this year’s event in early October, 10 successful IMP/IMBA alums from around the world gathered to speak with current program students about job search strategies, the value of the program, the temperature of the marketplace, and what employers are looking for in freshly-minted MBAs. The panel discussion, hosted at the School of Management, featured Teresa Chuang (’01), Oscar Soto (’01), Jeremy Burbank (’04), Bill Thompson (’07), David Zeller (’08), Francesco Orselli (’08), Joseph Raccuglia (’08), Feng Xia (’08), Brie Greenberg (’09), and Murat de Picciotto (’10). Dean Ken Freeman, Associate Dean John Chalykoff, Graduate Program Director Gail Justino-Miller, Assistant Director Johanna Beers, IMBA Program Director Amanda Miller, and Professor and IMBA Faculty Director Aimin Yan were also in attendance at the alumni reception. The following day, students and five alumni, including panelists Thompson and Zeller, “raced” two vintage America’s Cup class 12 meter yachts in Newport, Rhode Island. Professor Allison Kirby Jones and her husband also joined the group for the sail. Director Miller called it “a perfect day.”

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Think Quick.

EmPLOyERs’ ChOiCE RANKs mBA NO. 16. The School of Management MBA Program has been ranked 16th in North America, according to the October 2010 Quacquarelli Symonds (QS) Employer’s Choice Top MBA Ranking, up from No. 22 in 2009. QS is the organizer of the largest business education event in the world, the QS World MBA Tour. This ranking lists the top 200 business schools currently preferred by international employers seeking MBA graduates. It is compiled from an annual survey of human resources and line managers with recruiting responsibilities at companies around the world.

FULL-TimE mBA RANKs 38Th. Just released as we went to press, the 2010 Bloomberg BusinessWeek ranked the School of Management’s Full-Time MBA Program 38th in the US and 5th in New England behind Harvard, MIT, Dartmouth, & Yale. The biannual rankings place a heavy emphasis on recent student and recruiter feedback. The listing is unusual in that only assigns rankings to the top 47 schools across the nation. In the biannual part-time MBA rankings last year, BusinessWeek named the Boston University Part-Time MBA Program 2nd in the entire northeast (all of New England plus New York State).

Financial Times, Wall Street Journal, BusinessWeek, and QS have all recently elevated the School’s ranking.

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By LAUREN DEZENSKI AND TRACy SLATER

msim PROgRAm: 10Th ANNivERsARy. On June 19, 2010, Boston University’s Master of Science in Investment Management (MSIM) Program celebrated its 10th anniversary with a day-long conference devoted to today’s markets, drawing a talented group of almost 100 senior investment professionals and School of Management alumni. The anniversary also celebrates MSIM’s status as the first graduate program in the nation to be named a CFA® Program Partner, providing students with unique preparation for the CFA exams and the profession. The conference included:

•Akeynotepresentationon“ThePresentandFutureofFixedIncome:From Investment Grade to Emerging Market Debt,” by Bill Nemerever, CFA, co-manager of Global Fixed Income at GMO.

•MSIMAdvisoryBoard“Mini-Case”discussionsoninstitutional,private wealth, and hedge fund management.

•Researchpresentationsonmanagerselectiontechniques,optimalasset allocation amongst alternative investments, and key determinants of successful education in investment management.

•Areviewofthetopic“TheBusinessEnvironmentforBoston’sFinancial Services Industry” with Jim Klocke, executive vice president of the Greater Boston Chamber of Commerce.

•MSIMcareerpanelsonfixedincome,equities,andalternativesinvesting.

•Networkingactivities.

smg’s CENTENNiAL FAsT APPROAChEs. The School of Management is gearing up for its 100th birthday in 2013. Founded in 1913, the then-named College of Business Administration (CBA) enrolled 234 men and 40 women, compared with today’s 3,255. In the ‘20s and ‘30s, the College’s Bureau of Business Research developed the New England Business Activities Index—a first for the region—and started conducting major studies of consumer buying habits and sponsoring research projects. Later, in the ‘50s and ‘60s, the College adopted the case study method of learning, requiring discussions amongst students, rather than lectures, and seating students in an amphitheater-style classroom—both elements of learning still in practice at the School today.

shOW mE ThE mONEy. The Feld Career Center (FCC) gathered some of the School of Management’s top young finance alumni this past fall to discuss job search skills with current students. Organized by Jim O’Neill, director of corporate relations for the Feld Career Center, and alum Michael Tobitsch (SMG ’07) senior analyst at Marsh and McLennan, the conference featured keynote speaker Mark Casady, chairman and CEO of LPL Financial, and Professor Scott Stewart, faculty director of the School’s Master of Science in Investment Management Program (MSIM). The two-day conference taught students how to prepare themselves for interviews and careers in the finance industry, highlighting major financial concepts that all candidates must know, secrets to successful interviews, and the range of careers available in the industry.

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Tie Died. By shedding ties and allowing a 1OC rise, companies in Italy are saving 217,000 kilowatts per year in air conditioning costs.

In the early ‘70s, the Public Management and Health Care Management programs were introduced to the CBA curriculum, among the first of their kind in the world. In recognition of these new programs, and the need for management in all kinds of organizations in addition to business, the name was changed to the School of Management in 1974. “We look forward to celebrating this very important milestone in the history of Boston University and the School of Management as an opportunity to recognize what has gone before, but more importantly to focus on the great potential that lies before us,” says Dean Ken Freeman.

iNCOmiNg CLAss sTATs imPREss. The Two-Year MBA program had another jump in applications this year, as well as an increase in the number of enrolled international students. Meanwhile, the program’s selectivity increased too, with the acceptance rate dropping from 30 percent to 28 percent, delivering a class of approximately 160 students. The mean GMAT score of this year’s incoming class also rose, from 679 in 2009 to 681. And while the male to female ratio of the class remained the same this year (62%/38%), the percentage of international students increased 1% and those of Asian, Hispanic, African, or Native American descent (AHANA) increased 4% over last year. In the Undergraduate Program, there was another significant jump in 2010. The number of enrolled students rose to 393, from 349 last year. The average high school GPA increased from 3.48 to 3.51 and the average SAT score from 1279 to 1284. The School’s Honors Program grew this year as well, adding an additional 23 freshmen and 7 sophomores, bringing the Program’s overall total to more than 100.

“BEsT yOUNg ENTREPRENEURs” FiNALisT. Alex hodara (SMG ’10) was recently named a 2010 finalist in BusinessWeek’s America’s Best young Entrepreneurs list. At 23, Hodara, a School of Management graduate based out of Boston, is the founder and owner of Hodara Real Estate Group, what he calls the first student-run real estate brokerage, with more than $5 million in deals thus far. The company’s trajectory is as promising as Hodara himself, garnering revenue of $175,000 in 2009 (the company’s first year), with expected growth to $400,000

in 2010. The company has recently expanded into property sales. To read more about Alex, who was profiled in the Spring 2010 issue of Builders & Leaders just before he graduated, visit bit.ly/bP8n3u. To read more about the many entrepreneurial initiatives at Boston University, go to “Start Something,” on page 21.

iNmL RECEivEs $300,000 gRANT. Boston University’s Institute for Nonprofit Management and Leadership (INML) was recently granted $300,000 by the Boston Foundation. In an effort to promote a “thriving, vibrant city and region,” the grant is to be awarded over the next three years, with the goal of “enhancing the long-term vitality of the Massachusetts nonprofit sector.” The grant will go toward the institute’s ongoing goal of preparing the next generation of nonprofit managers. INML participants come from a widely diverse range of organizations, ranging from community development to foundations, and from legal research to institutions such as the New England Aquarium.

MBA Job Market on the Rise.While the US market will be flat, Quacquarelli Symonds’ TopMBA.com projects a “big jump” in MBA demand in the upcoming years, especially in emerging markets in the East. China, India, and Southeast Asia, along with Latin America, namely Brazil, are all markets embracing MBAs “as a route to global competitiveness,” according to the study. Additionally, demand for MBAs in “general industry, consulting, finance, and technology sectors is predicted to grow in excess of 115% in 2010 and 130% in 2012 worldwide.”

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In Memorium.Hayden Estrada, 1959-2010

Hayden Estrada, 50, assistant dean of graduate admissions in the School

of Management, died October 12 after a brief illness. “We have lost a very important member of our School leadership and community,” says Ken Freeman, dean of SMG. “Hayden’s strategic thinking, his values, and his positive attitude were invaluable to our mission.” Others remembered Estrada not just as a colleague, but as a friend. John Chalykoff, associate dean, says Estrada “was a beloved man in the halls of the School of Management—a professional, a friend, a self-deprecating person who was young at heart, with a broad sense of humor.” Chalykoff recalled Estrada’s infectious laugh and his smile. He praised him for being “an advocate for high achievement and diversity in the classes he admitted.” Before coming to BU in 2004, Estrada was director of academic consulting at Productivity Management, a technology and consulting firm based in South Bend, Indiana. Prior to that, he worked as director of MBA Admissions at the University of Notre Dame’s Mendoza College of Business, the University of Maryland’s College Park Robert H. Smith School of Business, and Vanderbilt University’s Owen Graduate School of Business. After earning a BS in management from Johnson & Wales University, where he graduated summa cum laude, Estrada received his MBA from Babson College. At the time of his death, he was vice president, education for the National Society of Hispanic MBAs.

UPo goes Paperless.Student Satisfaction Rises.

By LAUREN DEZENSKI

what started as a University-wide venture 10 years ago to digitize student information has finally become a

reality for SMG’s Undergraduate Program Office (UPO). Going paperless has increased productivity for the staff, cut costs for the University (and reduced its carbon footprint), and increased satisfaction for the students. Degree Advice, an online system used to track student progress and give them automated “advice” about their trajectory, was implemented by the UPO last year. According to UPO Director Norm Blanchard, the best part about the paperless system is that advisors and students are both able to access and review the information, including which classes the students have already taken, what requirements they have filled for graduation, and which classes they have left to take. “When you put students in a position where they can keep track of how they’re doing, you’re able to start the conversation at a higher level and engage in a richer discussion,” says Erik Linnane, associate director of the UPO. In addition to Degree Advice, which can be found on the Student Link, there are two internal online programs that have been recently implemented as well. The first is a digital folder system called On Base, introduced by the Undergraduate Admissions Office. “It’s a workflow solution that allows the BU Office to send us their application materials, so that we can pick up where their office leaves off. We can review their notes and then add our own because it’s all online,” says Linnane. “It makes it much easier to work closely with the University and take advantage of all the work that’s already been done.” The second is an online notes system. Instead of writing notes on scraps of paper and placing them into students’ files as they used to do, the UPO staff is now able to record information online from student advisory sessions, and access them easily again later. “It might sound mundane,” says Blanchard, “but these are the kinds of efficiencies that affect students’ lives.” In the future, the UPO hopes to integrate all three systems into one.

The 2010 Sputnik Alarm.US Behind (Again) in Energy Sector Challenges.

gREEN PAgEs

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The green Pages are dedicated to bringing you news of green initiatives

on campus, reporting on green trends, and presenting ideas for

green business opportunities for the School community and alumni.

“The nation that successfully grows its

economy with more efficient energy use, a clean domestic energy

supply, and a smart energy infrastructure

will lead the global economy of the 21st

century.”

—Arun Majumdar

By JOHN DICOCCO

Dr. Arun Majumdar is alarmed, and he wants to wake up the whole neighborhood—indeed, the whole nation.

On September 30, 2010, Majumdar, director of the Advanced Research Projects Agency-Energy (ARPA-E), addressed the Boston University community as part of president Robert Brown’s Presidential Lectures on Clean Energy and Environmental Sustainability. His talk, entitled “Addressing the Sputniks of Our Generation,” framed current national issues in the light of the shockwave felt in the US in 1958 when Russia beat the US in launching the first vehicle into space. That event sparked an immediate national mobilization in science, engineering, and research, and the Department of Defense created the Defense Advanced Research Projects Agency (DARPA) to regain the technological lead for the US. Over time, it became the agency responsible for innovations such as the Internet and the stealth technology found in modern fighter aircraft. ARPA-E was created in the same mold. Majumdar said the US “needs to address technology innovations with fierce urgency” [his emphasis]. He says today we are faced with three “Sputnik-like” challenges in the energy sector: energy security, greenhouse gas emissions and climate change, and, again, the loss of the US technological lead. All are immediately critical and interrelated, he says, but he emphasized the third. As an example he cites the lithium-ion battery found in laptops and cameras. It was invented in the US, but the current US market share is down to a mere 1 percent. Meanwhile, Japan sells 46 percent, Korea has 27 percent, and China has 25 percent. “Numbers such as these demand a wake-up call,” says Majumdar. “We must change course and do so with fierce urgency. The nation that successfully grows its economy with more efficient energy use, a clean domestic energy supply, and a smart energy infrastructure will lead the global economy of the 21st century.” He adds, “We will measure long-term success by the US market share of ARPA-E-developed technologies as well as domestic and global sales, avoided greenhouse gas emissions, reduced oil imports, the creation of new technologies and businesses, a new industry ecosystem, and job creation. “These goals are not simply the mission of ARPA-E; they are also at the heart of US national, economic, and environmental security.” Visit http://arpa-e.energy.gov/.

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BU ENERgy CLUB WELCOmEs ALUmNi. The BU Energy Club, comprised of students, faculty, staff, and friends of the University, co-hosts the Presidential Lectures on Clean Energy and Environmental Sustainability, such as the Majumdar lecture cited above. The club hosts meetings of energy-related seminars on campus and around the city every week. (you can also join the weekly alumni meetings at Espresso Royale on Saturday mornings from 10-11 a.m.)

DOUgh FROm ThE DOE. In July, the Department of Energy (DOE) awarded $92 million for groundbreaking energy research projects. The projects are spread across 18 states, with 36% of them led by universities, 33% by small businesses, 24% by large businesses, 5% by national labs, and 2% by nonprofits. The projects include new storage technologies that exhibit energy, cost, and cycle life comparable to pumped hydropower but are modular and can be widely implemented at any location across the power grid. They incorporate improvements on the efficiency and cost of power conversion and switching, and developments in new approaches and technologies for cooling buildings, which will dramatically improve energy efficiency and reduce the use of refrigerants and their impact on climate change. This past September, US Secretary of Energy Steven Chu announced the selection of six additional transformational energy research and development projects that could revolutionize how the country uses, stores, and produces energy. The project subject areas are: •Nanotechnologymembrane-baseddehumidifier •Transformationalnanostructuredpermanentmagnets •Airbornewindturbine •Cryogeniccarboncapture •Optofluidicsolarconcentrators •Thermalenergystoragewithsupercriticalfluids.

yOUR NExT vEhiCLE? A recent green energy fair in Boston’s Copley Square previewed initiatives by innovative companies offering alternatives to gas-driven vehicles. While it may take a while yet to wean Americans from their car dependence, at least we are seeing new choices in personal transport systems. Wheego manufactures an all-electric two-passenger car that will travel 40 miles on a charge, perfect for the commuter. The Segway is another way to go. So is the electric-motor-aided bicycle, with the “boosting power” semi-hidden in a traditional bike frame. This allows you to bike to work and get decent exercise while getting assistance when you need it on the one big hill on the way to work.

yOUR NExT OFFiCE? Boston University’s first geothermal building, at 888 Commonwealth Avenue, is heated and cooled exclusively by geothermal energy. A heat exchanger and pump system circulates water through six wells, dug to a depth of 1,500 feet, to warm or cool (depending on the season) the 95,000 square foot space—without the use of fossil fuels. This technology also eliminates the need for a boiler room and cumbersome heating, ventilation, and air-conditioning systems, allowing for a roof garden. Since the underground temperature at that depth remains at approximately 55 degrees year-round, the technology works no matter what the season. bit.ly/bv34rM.

A hOmEPAgE WiTh gUsTO. Want to see a cool website homepage? Check out bu.edu/sustainability, which uses a striking visual format to demonstrate the environmental impact of a place as big as Boston University. (The University has an aggressive program in place to reduce such waste.)

BU iN gREEN TOP 50. The Sierra Club magazine named BU one of its Top 50 Green Schools in its annual listing. Sierra’s 2010 survey gave most weight to each school’s energy supply but also included nine other factors.

mAKiNg gREEN iN gREEN. For those wondering about the best commercial opportunities in environmentally based business, consider the following items. A Spring 2010 article on Entrepreneur.com, “Ten [and ½] Trends to Watch in 2010,” shared a finding from Cleantech Group, an industry research firm with sponsorship by Deloitte. The report said venture capital (VC) investment in clean technology—including solar, biofuels, batteries, and the smart grid—overtook IT and biotech for the biggest piece of the VC pie. The sector scored 27 percent of all investment dollars in the third quarter of 2009—that’s $1.6 billion. The article also noted that the leading sector in the quarter by amount invested was solar ($811 million), followed by biofuels ($302 million), and smart grid ($256 million). Energy efficiency was the most popular sector measured by number of deals, with 31 funding rounds, ahead of solar (26 deals), and biofuels (13 deals). To see more: bit.ly/9ToMHw.

By JOHN DICOCCO

The EMBA (Executive MBA) Program builds loyalty, no doubt about it.

This year’s annual EMBA Alumni Luncheon in October filled the fourth floor dining rooms, with about a dozen former EMBA classes represented. They came to network, reminisce, and hear a panel of four alumni discuss “Leveraging EMBA in your Career.” Panel members were Donna Gandt, Director, Creative Learning Solutions, Dare Mighty Things; Michael Laine, Managing Director, Soltegic LLC; Matt Nowosiadly, President, Now Business Intelligence; and Dan Olsten, Chief Delivery Systems Officer, Martin’s Point Health Care. Peter Russo, Director, Entrepreneurship Programs, Boston University, moderated the panel participants, who were effusive about several topics. The dominant themes were the transformative nature of their EMBA experience and the value of the network created for life after EMBA. Dan Olsten said, “EMBA builds you up—builds up your skills and your confidence—so that even when you venture outside your comfort zone, you feel like, ‘I can do this.’ In fact, it makes me want to push myself into new areas more, because each time I do, I know I’m going to keep learning things I didn’t know before.” Gandt said, “When you have a group of people go through something this intense together, you form a bond that you can’t or wouldn’t have anywhere else. These are people you can call upon for advice about work situations, professional opportunities, or situations you can’t discuss within your company. The trust you build and the expertise you can call upon is extraordinary.”

iPads in Class.EMBAs Bite On Apples.

By JOHN DICOCCO

we have always believed in delivering our curriculum using technologically advanced

tools in a way that enhances both learning and student satisfaction,” says Janice Dolnick, Executive MBA (EMBA) Program director. This year, starting in mid-July, EMBA began piloting the use of Apple iPads in their highly intense program. “We’ve been experimenting with technology for years,” explains Dolnick, “first by offering more and different course materials online in various forms, and two years ago trying the Amazon Kindle. Each has had some drawbacks. But this year, the iPads proved more effective—and popular.” At press time, Dolnick announced that the trial was highly successful, and said “iPads will be integrated into the curriculum for all students in our next entering class, which begins next month, January, 2011.” In the 2010 pilot, approximately half of the current EMBA class committed to join in the trial. “We paired with XanEdu, a company that specializes in online course materials development,” says Dolnick, “which created a digital course packet for us.” (Each student also received a complete printed course packet). The iPads in the trial did not totally replace the paper materials, but students were preparing more than half the class assignments on their slim, light tablets. In EMBA, where many students are frequently on the road for their jobs—carrying heavy books is a burden and finding good online connections can be a problem. In surveys, students noted that access to materials offline was essential. With the iPads, students could download materials, read, take notes, and communicate with teammates from anywhere. “By October, our students were reporting 93% satisfaction with the iPad, with the caveat that application and navigation refinements are needed, particularly with e-textbooks.” The new EMBA class will still get books, but will no longer receive the printed course packet. It will all be on the iPad. The iPad solution is the newest—but hardly the final—solution. It seems clear that leveraging next-generation digital capabilities will continue to yield rewards in more efficient education and a reduced reliance on paper.

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EMBA Alums Remember.A Warm Welcome Home.

From left, Professor Peter Russo, Michael Laine, Matt Nowosiadly, Dan Olsten, and Donna Gandt.

By JAMES POST, JOHN F. SMITH, JR. PROFESSOR OF MANAGEMENT

In May 2010, 20 freshmen in the Management Honors Program and their advisors traveled to Dublin and

Belfast. The group was led by Assistant Dean Sandra Procopio, Assistant Director of the Honors Program Amelia Catone, and Associate Director Erik Linnane—all from the Undergraduate Program Office—and me. This field seminar, which was an integral part of the Honors Program, was the culmination of the students’ initial year.

managing in hard Times.This year, the global recession formed the context for site visits with companies and trade organizations. At each site, executives who are grappling with effects of the recession still sounded a hopeful and optimistic note. In Dublin (Republic of Ireland) and Belfast (Northern Ireland, part of the United Kingdom), we found government and business working together to stabilize financial institutions and build for recovery. Ireland’s recession was brought on by a collapse of the housing market “bubble” and declining global demand for Irish exports, because the country is highly dependent on international trade: 85% of Ireland’s gross domestic product (GDP) is tied to exports. With only 5 million citizens, the domestic market simply isn’t large enough to support a diverse and robust economy. Their recovery depends on Irish creativity, education, and innovation. The declining value of the Euro, while a concern, is actually a plus for Ireland’s economy because it makes its exports relatively less expensive on the world market. Our visit to Citigroup highlighted Ireland’s role in the global financial community. Citi Vice President Colin Moreland discussed the long road to the restoration of global financial health and Ireland’s role as a financial hub. At Allied Irish Bank, Senior Economist Geraldine Concagh predicted that recovery would unfold as exports grew. (This became reality on June 30 when the government declared an official end to the recession, citing growth in Ireland’s GDP and exports.)

Most of our hosts noted the central role of a highly educated population, key to Ireland’s drive to increase productivity and GDP. One agency we visited, Enterprise Ireland, is supporting the efforts of indigenous businesses to expand exports and develop winning strategies in the global economy.

Northern ireland: Peace and Prosperity. In Belfast, after seeing Northern Ireland’s Parliament, we visited Titanic Quarter, where the legendary ship was built. Today an imaginative 21st-century redevelopment project is underway that includes plans for a new 18,000-student campus to spur education in high-tech fields. Our group was also introduced to the strategic concept

of the “triple helix”—economic regeneration led by business, inspired by academia, and supported by the government. This concept made it clear to us that the way forward in Northern Ireland is through collaboration, not conflict. One of the most fascinating

visits was to PayPal, a company that has grown rapidly during the recession. Its Dublin Centre of Excellence serves all of Europe and enjoyed a 27% increase in business this past year. Another growing enterprise is Guinness, the world’s fourth most popular brand. Clearly, the students agreed, this was a company whose branded products merited careful study.

An Irish gig.Educate, Innovate, Thrive.

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With only 5 million citizens, the domestic market simply isn’t large enough to support a diverse and robust economy. Their recovery

depends on Irish creativity, education, and innovation.

Management Honors Program students at the Titanic Quarter in Belfast, Northern Ireland.

A Mayor in the Making? Evan Gross (BSBA ’12).

By ALISSA MARIELLO

Listening to him talk a mile a minute and watching the excitement build on his face, it’s easy to see how junior Evan Gross (BSBA ’12) convinced the City

Council of his hometown, Scarsdale, N.y., to choose him over other candidates as the councilman for youth Affairs. “When I spoke with the village trustees about why they should choose me, I explained that I could offer the most unique perspective. I had just graduated from the high school and could give insight into youth affairs that most adults couldn’t possibly dream of. And I thought it would freshen up not only the board itself but the way it’s perceived by others as well.” City Council isn’t the only thing Evan’s talked his way into. Being a huge baseball fan (and a proud yankees supporter) and having umpired local baseball games since the eighth grade, Evan also co-manages the Little League of Scarsdale with his best friend Matt Ursillo, who attends Union College, in Schenectady, N.y.—all the way from Boston. “We put together a formal pitch for the board of directors that oversees the League,” he says. “Since we go to different universities about 300 miles from home, they asked us how we would do it. We came up with a comprehensive outline for spring break training and effectively scheduling games.” That was two years ago, and they’re still running the program from afar, with great success, Evan adds. They manage more than 50 people involved in the league and have recently been asked to take over the management of a Fall Ball program. Sometimes they have to drop everything they’re doing in their respective cities to

deal with umpires canceling an hour before a scheduled game, but in the two years since they’ve taken over the league, not a single game has gone uncovered. “It’s a lot of fun and gives us a chance to work with parents, help kids in the

community, and stay involved with baseball and my hometown. It’s one of the most fun things I do. It’s a junior version of what I hope to do someday in management.

It’s definitely taught me how to deal with different types of personalities and adapt to different kinds of people.”

Evan was fueled to do volunteer work because he wanted to make a difference in his community. “It was the idea that things are

great, but…” he said, “I could definitely see a couple things going in a better direction.” As an example, he tells the story of the senior internship required at his high school and how he was able to effect change. “The guidelines and rules they designed for the internship were so horrendous that I had to let the school administration know they had a problem. When I graduated, they asked me to come back and become an advisor. So I was

happy that other students could benefit from my feedback.” Evan is particularly happy to help the youth in his community.

continued on page 20.

sTUDENT PROFiLE

bu.edu/management 11

“When I spoke with the village trustees about why I really wanted to do this and why they should choose me, I explained that I could offer the most unique perspective.”

By ALISSA MARIELLO

Tall and thin, with short dark hair and dark eyes, MBA Council President Ajay Mehta’s humble demeanor is

surprising at first. But the more we talk, the more I realize that it’s probably this exact characteristic that helps make him a good leader. “I want to be a good manager, and leadership goes hand in hand with management,” he says. “you can’t be a good manager without being able to convince people to follow you and work for you.” After graduating from the University of Iowa with a BS in electrical engineering, Ajay got a job at Union Pacific Railroad in Salt Lake City as an engineering associate. Realizing he was more interested in management than science, though, he quickly moved into the position of terminal manager of signal maintenance. Soon after, his interest in leadership led to our business school, and then to the Student Council. After being voted in as the first-year representative for Cohort D, Ajay helped organize MBAid, a global health club started last year at the School. The group’s first project was to raise money for Primeros Pasos Medical Clinic in Quetzaltenango, Guatemala, before traveling there this past summer. The idea for the organization, whose mission is to increase the involvement of SMG students in international development projects, came from Rob Segan (MBA/MPH ’11), a fellow Cohort D student, who had worked at Primeros Pasos in 2005 and 2006.

“Ajay was essential in organizing the trip to Guatemala,” says Rob. “We really came together as a cohort when we were there, and among other factors, Ajay deserves a lot of credit in his role as cohort rep.” “Helping people regardless of what sector you’re in is crucial,” says Ajay. “It’s an idea I want to carry throughout my career and to whatever company I work for.” In Ajay’s field of transportation management, it’s not just a feel-good payoff either. Increasing morale by caring for your employees leads directly to cost savings—a more satisfied employee is more careful, which cuts down on

workplace accidents, he says. “Good leadership can directly affect morale,” he says. “Small things lead to bigger things, and before you know it, you’re saving your company a lot of money and increasing shareholder wealth.” In the long term, Ajay would like to run his own transportation business.

“After working at Union Pacific, I really understood how much growth potential there is in this industry, and I want to be a part of it. In the future, whether it’s high-speed rail or freight, railroads are going to be the next big thing, because it’s the most efficient and green way to move goods, compared to trucks,” he says. “In the US, the projected growth of the railroad industry in the next 30 years is tremendous compared to other industries.” And when it gets there, Ajay will be ready to lead it.

on the (Rail)Road to leadership.Ajay Mehta (MBA ’11).

sTUDENT PROFiLE

12

“Helping people regardless of what sector you’re in is crucial. It’s an idea I

want to carry throughout my career and to whatever

company I work for.”

Battle-Tested.Jessica Maclean (PEMBA).

By ALISSA MARIELLO

Like business school, a main goal of the army is to train capable leaders.

“Leadership fundamentals in the military are the same as in the civilian world,” Jessica Maclean (PEMBA) says, “however, a big difference is that oftentimes soldiers are motivated to follow an order based upon fear, rather than earned respect.” Maclean would know. She recently started the Professional Evening MBA (PEMBA) program here at the School after four years in the Reserve Officers’ Training Corps (ROTC) as an undergrad and five years in the army. “In my first semester at the School, I’ve already learned a great deal about how the values of an organization are of the utmost importance in forming a team and getting people to work together.” Growing up in Newburyport, Mass., Jessica was a highly active athlete in high school, playing basketball, softball, and hockey. She was an active leader as well, serving as captain of her field hockey team and a helpful mentor to freshmen her senior year. “In college, I really enjoyed the camaraderie and the physical and fitness aspects of ROTC,” she says, “and since I didn’t have a sport in college, the rigorous physical demands of ROTC served as a good replacement.” After graduating with a BA in communications from Wake Forest University, she became an active military intelligence officer. “I really wanted to serve my country and do the job I was trained to do in a real-life situation. I chose to go into army intelligence because I liked analyzing and strategizing, and I wanted to be able to lead my own platoon.” She wanted action, and the army needed leaders while fighting a war on two fronts. Jessica did just that during two tours in Iraq between 2006 and 2008. She was the leader of a drone unit, or unmanned aerial vehicle (UAV), commanding operations that provided near real-time imagery to troops on the ground.

“My job in the military required a lot of management—planning and organization, supply and logistics, and coaching and mentoring. I was the very first UAV platoon leader for the 101st Airborne Division. The asset was brand new, and we were pioneering the first effort. It was an honor to lead one of

the first UAV platoons. “Iraq wasn’t easy. you work 12 hours a day, and the weather is hard to deal with, especially during the summer. But the worst part is being away from your normal support system of family and friends. It was probably the most difficult thing I’ve been through, but it made me appreciate life and family even more.” When Jessica’s commitment to the army was complete, she and her husband, who she met during her first tour in Iraq, decided to settle down. “I did a lot of research and soul-searching, but I eventually chose to

pursue health care management. you have a lot of options coming out of the army, but health care had always been an attraction. I wanted to make a difference in people’s lives and be behind the decisions that improve the health care industry.” Last year, Jessica took a job at Tufts Medical Center’s concierge adult primary care practice, the Pratt Diagnostic Center, as the organization’s program coordinator, managing daily operations and business development. “The military prepared me well for a career in management. It taught me how to analyze a situation and come up with a strong plan of action, how to mentor others and help them further their careers, and how to stay calm and make solid leadership decisions in high-stress situations.” In the future, Jessica hopes to merge her experience in the army with her MBA to help make a difference in the lives of veterans.

sTUDENT PROFiLE

bu.edu/management 13

“Leadership fundamentals in the military are

the same as in the civilian world, but

a big difference is that oftentimes

soldiers are motivated to follow

an order based upon fear.”

By ALISSA MARIELLO

Raised in Indonesia by British parents till he

was 18, Ben Lawrence (PhD ’11) came to the states in 1993 to study hospitality at the Hotel School at Cornell University. From there he studied marketing at Texas A&M, where he earned his MBA. Initially interested in the idea of brand communities and social influence, Ben began the PhD program at BU with a focus on the consumer. After taking a class as a PhD student with the School’s Marketing Department Chair Patrick Kaufmann on distribution channels, he realized there was a place where social relations and distribution merged: in the study of franchisee/franchisor relationships. It was a topic that, until that point, had barely been touched. He quickly chose the area for his dissertation. Historically, franchise relationships have been viewed from an economic lens, through which the franchisor is labeled as the principal and the franchisee as a self-interested agent. But Ben’s research looks at franchisees as embedded actors in a social context. These contexts can include union-like structures called independent franchisee associations that often mediate the relationship between franchisee and franchisor, and may influence the way individual franchisees identify with their franchisors. “As franchisees gain more power in these union-like structures, their ability to resist mandated change and system-wide adaption increases,” says Ben. “But the more they can relate to the franchisor, the more they will become collaborators, as opposed to obstacles.” The idea of looking at these relationships in a social context, rather than purely dyadic, is new, as is the approach that Ben took to his research. Where others had studied these

relationships from a distant, quantitative point of view, Ben took a qualitative, in-the-field perspective that included in-depth interviews, as well as ethnographic fieldwork such as attending franchisee conferences and social gatherings. It was at these events that he observed firsthand how franchisees relate to each other—and often don’t relate to the franchisor. “Once you go into the field, you understand that current assumptions in the franchising literature aren’t necessarily

reflected in the day-to-day reality of franchise systems in operation,” Ben says. He observed other behavioral nuances, too, that uprooted the usual thoughts on franchise systems. For one, he found that the franchisee is more often viewed as the stable partner in the relationship, rather than the franchisor. While there is high turnover in

the senior leadership and ownership of many companies, there are organizations with relatively low turnover in franchisees, who often pass their franchise down through generations. The franchisees often perceive this discrepancy in stability to mean that they are the more dedicated stewards of the company brand, rather than the company itself. According to Ben, this identity instability on the part of the franchisors is critical to the understanding of the franchisee-franchisor relationship and the development of franchisee-based communal organizations. “Franchisors in general haven’t really taken to the idea yet that the brand matters to the franchisee,” says Ben. “If the franchisor doesn’t stake claim to the brand, then the franchisee can—and often does. And when the franchisee association is seen as the legitimate keepers of the brand, rather than the company, then franchisees can appropriate the meanings of the brand and use them to strengthen their opposition to the franchisor and its strategic objectives. continued on page 20.

Whose Brand Is It Anyway?Ben Lawrence (PhD ’11).

sTUDENT PROFiLE

14 Builders & Leaders

“Current assumptions in the franchising literature

aren’t necessarily reflected in the day-to-day reality of franchise systems that are

in operation.”

bu.edu/management 15

ThE iNDEx

Business by the Numbers.

Number of adult Americans without bank accounts.

(money.cnn.com)

US job market expected growth in 2011: 1.1% (usatoday.com).

Massachusetts job market expected growth in 2011: 0.4% (usatoday.com).

States with highest expected job growth in 2011: Texas and New Mexico, 2.2% (usatoday.com).

Average age of business founders in the US: 44 (Bloomberg Businessweek).

Average starting salaries for undergraduate business majors: $46,672 (money.cnn.com).

Average starting salaries for BU undergraduate business majors: $48,194 (Feld Career Center).

American women’s median wages as a percentage of men’s: 83% (Bloomberg Businessweek).

China’s world ranking in millionaires per country: 4th (usatoday.com).

The price of raw cotton: 90 cents/pound (up 100% due to shortages in India) (money.cnn.com).

Expected increase in cotton textile prices per pound this winter: $2 (money.cnn.com).

US’s current trade gap: $42.8 billion (from $49.8 billion in June) (money.cnn.com).

Facebook’s estimated revenue for 2010: $1.3 billion (money.cnn.com).

Blockbuster’s debt upon filing for Chapter 11 bankruptcy: $900 million (Bloomberg Businessweek).

Number of microfinance outlets in the United States: 362 (nytimes.com).

US credit card holders carrying a card balance of less than $1,000: 40% (fico.com).

US credit card holders carrying a card balance of less than $5,000: 48% (fico.com).

US credit card holders carrying a card balance of more than $10,000: 15% (fico.com).

COMPILED By LAUREN DEZENSKI

44 million

Income level where money allegedly can buy happiness. (wsj.com)

$75K

COvER sTORy

16 Builders & Leaders

Executive Summary.

Born: 1950

Prior Experience: Member, KKR (Kohlberg Kravis Roberts & Co); Chairman & CEO, Quest Diagnostics; many roles at Corning Incorporated

Education: BSBA, Bucknell University, summa cum laude, Phi Beta Kappa; MBA with distinction, Harvard Business School

Other: Chairman of the Board, Bucknell University; Senior Advisor, KKR

Family: Married, two children.

By JOHN DICOCCO

After almost 40 years in business, Kenneth W. Freeman came to Boston University in August 2010 as the Allen Questrom Professor and Dean of the School of Management. Ken (as he prefers to be called) is the School’s 10th dean, following the 19-year tenure of Lou Lataif. One of Ken’s first official acts has been visiting every single office in the School to see what makes it tick, including an hour-long visit with every member of the faculty.

The following is a selection of comments from two lengthy discussions we had just before we went to print, in which he begins to outline his upbeat strategy for the School going forward. Ken is eager to listen and learn, plan, and then act. He likes where we are, and believes we have tremendous potential to move further ahead. We look forward to the developments of the next few years.

Engaging Ideas.Listening and Planning for the Years Ahead.

bu.edu/management 17

COvER sTORy

So Ken, now that you’ve gotten your feet wet, is this the school you thought it was? Yes, in large measure it is. I’m very inspired to be here, at a place where the faculty and staff genuinely want the best for our students and want the School to continue to rise; where the aspirations for our school are grounded in an environment where people treat each other with respect, and everyone is so committed to the overall mission of the School. And how does the role of dean compare to positions you’ve held in industry? Being a dean is not unlike being a CEO. You’re always on; it’s a 24/7 job. You’re constantly representing the School to the best of your ability. I’ve had countless times already when I’ve engaged with our students, faculty, and staff, or other folks from the Boston University community outside the walls of SMG. The deanship and CEO roles both carry the responsibility for providing overall leadership for their organizations. People wonder about CEOs coming in to become deans. What’s the difference? Despite the many similarities, there are also some

differences between being a CEO and a dean. The primary difference is that in academia, the notion of shared governance has been developed over centuries between the administration and the faculty. In the end, the dean must pick his or her spots, in terms of setting the vision and priorities for what will get done. And, as in business, you’ve got to get the team to come along with you. It may be overstated in the popular press in terms of how easy it is for a CEO in a company to wake up one morning, go to work, and say, “We’re doing X. Get on board and let’s go.” In the end, whether you’re in academia or you’re running a company, you’ve got to get people to come with you. If change is needed, you’ve got to have a compelling vision and reasons to support the change. And then you’ve got to identify the first steps toward making progress. All leaders must listen and learn, keeping in mind that CEOs and deans alike need to focus on creating value in their respective environments. I’m amazed by the similarity between the two roles. What is the role of a business school dean? A dean is a steward of the students and the faculty. It’s a leadership position, and the main duty is to serve the

“I come from a world where arrogance kills. It’s great that we’re really moving up in the rankings. But the moment we start believing our own press is the moment we’re in trouble.”Engaging Ideas.

Listening and Planning for the Years Ahead.

COvER sTORy

18 Builders & Leaders

students, providing them the very best possible learning experience through a highly engaged and committed faculty and staff. This means supporting the faculty in their research and teaching efforts as well as their service efforts. It means supporting the staff ’s efforts to make the place run effectively and efficiently, and, above all, it means supporting our students, who are paying lots of money to come here to gain an education and ultimately become

responsible and successful global citizens. In our first chat (for B&L Online this summer), you said your first step as dean was to listen and learn. What’s the next step? The listening and learning continue. I have engaged more than half of the faculty one-to-one in their offices to learn about their scholarship, their teaching, and their service to SMG. I’m listening to the voices of our students and alumni as well. Since we last talked, I’ve commissioned five faculty study groups. We have great faculty, great students, and a strong curriculum, and a lot of great things are happening at SMG. At the same time, we must not sit still. The world is changing and we must change with it. The five strategic task forces are exploring possible areas of focus at SMG as we prepare our students for what the world will be like in 10 or 15 years, in addition to their initial job right after graduation. I come from a world where arrogance kills. It’s great that we’re really moving up in the rankings. But the moment we start believing our own press is the moment we’re in trouble. So I live my life, and encourage my colleagues to live, like we’re on the edge of a cliff about to be pushed over into the abyss of irrelevance by a strong tailwind. I ask, “Are we providing the business education here that is preparing the global leaders for the 21st century? What are the trends in the world that are going to impact business education and global citizenship?” The five areas being addressed are health care, information technology, finance, globalization, and sustainability. And these are topics, themes, megatrends that are going to be with us for the next 20, 30, 40 years.

The framework for the curriculum used in our undergraduate program, as an example, was developed 15 or so years ago, refined very nicely all the way through, and remains very strong. Despite its success, however, we must not rest on our laurels; we must futher adapt the curriculum for a changing world. We’ve also had several variations of the MBA program through the years that have been very topical and

appropriate to the times. As a result of discussions with a few of our colleagues, I’ve concluded this is a good time for us to rethink, from a thematic standpoint, if we are really providing the education and training required for successful careers during the next 15 or 20 years. Think about it. In the past 15 years we’ve transitioned from a manufacturing to a service economy; health care has become a major industry consuming ever-increasing resources in an aging world; and finance has experienced several ethical crises. The world economy has gone from being very heavily US-based to truly international in scope. Information technology is the only industry I can think of that is, in the words of one of our faculty, a young, rapid-growth, and mature industry all in one. And the current generation of students is telling us that sustainability isn’t optional—it must be addressed quickly and effectively for the benefit of future generations. We must prepare our students to effectively engage in these areas. The five faculty planning groups are going to report back by the end of this fall semester? Yes. After we receive their feedback, we will broaden the dialogue to include the rest of the faculty, staff, students, and alumni. I expect that during the second semester we will coalesce around specific goals for further advancing the School during the next decade. We will likely conclude that we can’t do it all by ourselves inside SMG. If we don’t take advantage of the vast resources of Boston University and Boston, as we look at health care, for example, or sustainability, or information technology, we’re only going to get halfway to where we could be, and that would be a shame. I intend for us to have a shared vision. If constituent groups buy into our aspirations at the outset, progress

“We’ve set up five faculty study groups: health care,

information technology, finance, globalization, and sustainability. These are the megatrends for the

next 20, 30, 40 years.”

bu.edu/management 19

COvER sTORy

will be made more quickly and we will have better results. It will take a little longer to get out of the starting blocks, perhaps, but we’re not going to take too long, I promise. By having buy-in at the front end of the process, when we look back we’ll be amazed at the progress we achieve. Might we drop a program or two? I suppose that anything is possible. For SMG to become a distinctive and distinguished school, which is

what I sense we all are striving for, we aren’t going to be able to be everything to everybody. We’re going to need to pick our spots, the one, two, three areas we’re going to target to become a top five school, and get there together. At the same time, we must maintain a full palette of capabilities across the disciplines that are “management,” so that on the road to becoming a top five school in targeted areas, our broad-based general MBA will also rise in stature. So perhaps we’re looking at some sort of restructuring. I wouldn’t call it restructuring. We’re certainly living within the current structure of the departments. However, we face some major decisions as we go forward. One could ask, is this going to be a revolution? Or is it going to be an evolution? My sense of it all is that we’ve got to be both revolutionary and evolutionary. We can’t just sit still, and we can’t take 10 years to figure this out. At the same time we need to preserve the essence of this place that makes it special: the collegiality, the teamwork, the desire to achieve. One of the things that has surprised me upon taking the deanship is that academia is every bit as competitive as many of the toughest industries. There are universities and schools out there that want to eat our lunch, just like we want to eat theirs. We could have a pretty good life for a little while longer, but we’re going to be unhappy if we don’t start thinking creatively about what the future holds. You’ve indicated that alumni engagement is one of your top two or three priorities. What is your message as you start talking to them? What is it that is going to excite people about the School? Early on, I believe there are several core messages. First, the School of Management is approaching its 100th anniversary. We are one of the oldest schools of management in the country, with a very rich tradition. The

School and Boston University as a whole have risen very rapidly in recent years, transformed from a commuting school into a globally renowned research university. In many ways, our School has helped set the pace of Boston University’s evolution. And I think that’s something our alumni and current students can be proud of. Second, there is a lot of momentum here, and we can do so much more to build upon what’s been done to take

the School to the next level. We’ve just begun our journey to greatness. Everybody likes to be part of a winning team. And, as an alumnus, if your school continues to rise, it benefits all alumni as well as the School. So our commitment is to help the School continue to rise. We need our alumni to engage much more than they have historically. Our alumni engagement, frankly, is relatively light, compared to other schools. And, at this point, that’s one of the big challenges we face. So how do we create more glue, more affinity with our alumni, once they leave this place? We’ll be mounting a number of different initiatives with our younger alumni and alumni who have been out for a while, with likely different approaches, to reacquaint ourselves and reintroduce our graduates to the School of Management, past, present, and future. What events have shaped your style as a leader? I’ve been a student of leadership all my life. And the moment I stop listening and learning and striving to improve is the moment I shouldn’t show up for work. There are a number of leaders who have had a dramatic influence on me. They were there to give me some heavy duty advice and feedback in terms of my management approach, my decision-making style, and how I engaged at various levels in the organization and with customers, and their advice has stuck with me over the years. I strive to make a difference as we seek to create value in a highly competitive world. Many people have affected my leadership approach over time. Certainly my focus in terms of being values-driven and seeking to treat everyone with dignity, fairness, and respect, under any circumstance, is grounded in me by my parents and my upbringing.

“We’re going to need to pick our spots, the one, two, three areas we’re going to target to become a top five school, and get there together.”

COvER sTORy

20 Builders & Leaders

I worked for a company that was once called Corning Glass, a 160-year-old company now, where the values of integrity, performance, quality, and accountability were part and parcel of the company’s fabric. And I learned to thrive in that kind of an environment over almost 25 years there. I found that the people from whom I learned the most were people with whom you could have a dialogue, as opposed to a hierarchical conversation. And I learned, very early, from a number of different people, that one of the most important things a leader can do is to put yourself in the other person’s shoes and think about the impact of your words, your conversation, and what you’re trying to do. Whether it’s a lecture, a customer meeting, or engaging with a union in the factory, leaders must always keep in mind the potential impact of our words and our actions with our colleagues. In the future, we look forward to learning more about your views on numerous management issues. May we pick one as an “appetizer?” How about regulation, for example? In the end, the fact of the matter is, it is not a perfect world. Unfortunately there need to be regulations to help drive compliance and to encourage appropriate behavior. In the business school environment, we need to educate our students about the importance of regulation, and at the same time engage in the national and occasionally international dialogue on what is and what may not be appropriate regulation. Because regulation shouldn’t stifle entrepreneurship and innovation. It needs to encourage it in the right way. And there is that risk. There’s an ebb and flow of regulations in our history. I think, in the end, the missing theme in so much of what is happening today, including politics in the United States in general, can be summed up in just one word: “trust.” There’s no sense of compromise. There’s no sense of achieving a common ground anymore, at least in this point in the nation’s history in Washington. It’s happening in the states as well. That is not a formula for any country to thrive in the future. Ken, thanks so much for your time. Thank you. I’m thrilled to be part of Boston University and the School of Management at a time of great challenges, great change, and great promise for the future.

mayor in the making, continued from page 11.“Schools are the most important thing in a community. If you can shape them, you can shape the way your town evolves.” He feels so strongly about this, Evan is considering running for mayor of Scarsdale in the next election. “Local politics are more interesting because you know the people and the issues, and you can really relate and effect change. “When you come across issues that impact your daily life, or the daily lives of those around you, you have to stand up,” he says. “And from my experience, I’ve found that when you find the right person to talk to you and offer your opinion in a respectful and intelligent way, you’d be surprised how easily you can change things.” It’s clear that when Evan puts his mind to something, he doesn’t stop until he achieves it. Last year, when he and seven other male students got together for the College of General Studies’ Capstone project, a 50-page research paper, he was told that an 8-man team would never win. Evan, the team leader, wanted to prove the naysayers wrong. He gave his team a motto—“If you’re not first, you’re last”—and flung himself into the project. The group wrote a comprehensive new outline on global warming and devised a mathematical formula to determine who was emitting what and in what capacity. Out of 17 teams, Evan’s group won the Capstone Award, which they received during Parents Weekend this past fall. If he doesn’t win mayoralty in Scarsdale, Evan would like to go into accounting after graduation, following in the footsteps of his father. “Accounting just makes sense to me,” he says. “Money helps determine everything.” If all else fails, he’d be perfectly happy as the commissioner of Major League Baseball.

Whose Brand is it anyway, continued from page 14. “My advice to franchisors based on my research would be twofold: One, you need to think of your identity not only in relation to how your customers perceive you, but also how your franchisees view the organization. Second, you need to understand that the management of franchisee-based organizations is critical to your ability to adapt and compete in the marketplace.” Ben is currently conducting survey work to investigate the potential benefit of intrinsic mechanisms such as identification in aligning franchisee and franchisor.

“We need our alumni to engage much more than they have historically. Our alumni engagement, frankly, is relatively light, compared to other schools.”

FEATURE

bu.edu/management 21

start something!

iTEC

Boston’s New Capital of Entrepreneurship.

“The entry points for entrepreneurial

pursuits are so numerous.” —Paul McManus

By JOHN DICOCCO

|startedthisstoryapproximately15timesover10days.Iworkedonatleasteightfulldraftsandmanymorereorganizationsofthestory.Theproblemwaswheretofocus,asevidencedbythewordsofPaulMcManus,

managingdirectoroftheInstituteforTechnologyEntrepreneurship&Commercialization(ITEC). McManussaid,“TheentrypointsforentrepreneurialpursuitsatBostonUniversityaresonumerousthatIdon’tknowifanyotheruniversityintheregionhasthismuchactivityinsomanydifferentareas.” ThegoodnewsisthatITEC,whichMcManusreferstoas“acenterofentrepreneurialresearch,teaching,andpractice,”istheorganizationthattiestogetherthemultipleentrepreneurialgroups,offices,clubs,events,andcompetitionsacrosscampus.Througharicharrayofacademicprograms,collaborativeprojects,events,andservices,ITEChelpsstudents,faculty,staff,andalumnigaintheskillsandresourcesnecessarytobringanideatothebusinessplanstage,andthenconnectsthemtopotentialfundingsources. FromtheentrepreneurshipconcentrationintheSchoolofManagementMBAandundergraduateprograms,totheincubatorspacesinthePhotonicsCenter,andtheengineeringprofessorsstudyingmaterialsscience,there’sasignificantpopulationoncampusdevotedtocreatinguniquenewbusinesses. ThevastmajorityoftheteachingandcoachingisbySchoolofManagementfacultybasedintheStrategy&InnovationDepartment.

FEATURE

22 Builders & Leaders

McManus says, “We’re the University’s pivot point in helping students, faculty, investors, and corporations connect, collaborate, and create new products and services. Specifically, we teach the particular management skills that help you translate ideas into marketable products and services. We’ll help you express your entrepreneurial gene.”

One BU.“Our goal is for Boston University to become the new center of entrepreneurship and innovation in Boston,” says Vinit Nijhawan, managing director of the Office of Technology Development (OTD), which works closely with ITEC. That would seem to be a bold claim in the face of MIT across the river and smaller colleges such as Babson who market a focus on entrepreneurship. But here’s why the lofty goal is attainable. Soon after Robert Brown took the office of Boston University president in 2005, he began talking about the idea of “One BU,” a university whose organizational structure would help rather than hinder cross-fertilization. It signaled more than an endorsement of shared ideas; it was a statement of mission, to accelerate the University’s prestige by harnessing faculty and student expertise to generate cross-disciplinary dialogue, ideas, and productive collaboration, and, where relevant, to commercialize those projects that would benefit the creators, society, and the University. It’s an ideal espoused by a number of universities. But at Boston University, faculty actually do talk across the aisle, and across Commonwealth Avenue. They research across departments and schools. They share students and graduate assistants and labs and data and insights from multiple disciplines. For decades BU has always had faculty who collaborated across departments. But since the idea has a champion in President Brown, it is truly spreading. Brown says, “Boston University is ramping up its entrepreneurial role in the knowledge economy. Across our schools and colleges, the University is looking beyond the intellectual value alone of faculty and student research. “We’re increasingly focusing on opening up commercial potential and playing an ever bigger role in economic and social development. As we recruit new faculty and seek to better engage our alumni, we’re looking for people who share our energy and our optimism.” BU has 17 schools, including the usual “big four” of entrepreneurship— management, engineering, medicine, and arts and sciences—with scholars conducting research in potential commercial applications such as medical technology, information systems, physiology, chemistry, photonics, and so much more. And our global reach enables us to pursue emerging opportunities wherever they exist. In short, Boston University is an emerging entrepreneurial powerhouse, and the School of Management plays a central role in educating and connecting those who play in this realm. The following are channels to success and the programs within them. ITEC works with the entrepreneurship faculty to teach at all levels and develop curriculum plans for courses in management, engineering, medicine, and more.

Office of Techology & Development | CAs | CFA | Cgs | COm | ENg | gRs | LAW | mET sAR | sDm | sED | shA | smg | sPh | ssW | sTh | BioLab | Fraunhofer | Photonics

————————————————————— iTEC sERviCEs + CURRiCULUm —————————————————————

FIGURE 1

iTEC structure. The relationship between the School of Management, ITEC, OTD, and the rest of the University. The professors who teach entrepreneurship are in the Strategy & Innovation Department at the School of Management. ITEC is based in our School as well, although it serves the whole University. As the figure shows, they teach courses in other schools and colleges at BU as well.

ADMINISTRATIVE OFFICES UNIVERSITY SCHOOLS

“Our goal is for Boston University to become the new center of entrepreneurship and innovation in Boston.”

—Vinit Nijhawan

FEATURE

bu.edu/management 23

ITEC furthermore organizes extracurricular events around the discipline, such as workshops, conferences, and competitions. ITEC supports student-, alumni- and (non-research) faculty-initiated ventures. According to McManus, ITEC is a research center “that should be viewed as a center of practice. We show you how to get things done.”

Office of Technology Development.A close partner to ITEC is the Office of Technology Development. OTD, whose motto is “Maximize collisions, minimize frictionSM” is an administrative office that has the mandate and authority to commit University resources to chosen projects, with the goal of moving them along the road to commercialization. Like ITEC, OTD works hand-in-hand with BU-based individuals and groups. But OTD always takes the lead in projects that originate with University-owned intellectual property (e.g., a new polymer developed in a BU lab). In such cases, the University and the researcher would share in the profit that might be generated down the road. Nijhawan explains that OTD handles patent filing and licensing, and works with both existing companies and new ventures. It procures funding or directly funds projects via several on-campus sources, as well as acts as an official conduit to foundations and government funding options, including the Fraunhofer Center (for manufacturing projects) and the Coulter Foundation (specific to biomedical devices). For projects not tied to BU intellectual property, there’s OTD’s Kindle Mentoring program, which pairs an early-stage entrepreneur with a practicing, experienced one. “Kindle Mentoring was started,” says Al Hawkins, director of New Ventures at OTD, “to support projects that are currently outside the scope of technologies we own and develop here at BU. We work with alumni, student and faculty projects, and technology projects that may not have become companies yet but have commercial potential.” The mentors, specialists drawn from a wide range of Boston-area industries, include serial entrepreneurs and early-stage investors, and they are strictly volunteers, according to Hawkins. During the mentoring relationship, neither the mentors nor the University can receive any compensation. It’s a free service. For more advanced-stage concepts, OTD can assign a space in either of the two BU incubators in the Photonics Center or BioSquare on the medical campus to a working group that is moving to a proof-of-concept stage.

Furthermore, OTD guides entrepreneurs and their startup entities through the legal and procedural stages of the commercialization process.

The Curricular Pieces.Can entrepreneurship be taught? ITEC’s Director of Curricular Services and Executive-in-Residence Peter Russo believes it can, if you also have certain traits. “If you’re good at strategic communications and leadership, and have a high tolerance for ambiguity, you can learn the rest. “What we can teach,” Russo continues, “is the accumulated knowledge from the experiences of others, and what is repeatable in those experiences. Those who go through the early and middle steps of a startup gain confidence in going forward with it. What we try to impart is that a startup is not an event; it’s a learnable and repeatable process.” Those steps include, but are not limited to, articulating a value proposition, recruiting skilled people to join you, evaluating the concept, and then deciding to proceed—or walk away. “If you proceed,” says Russo, “you have to get others to take risks for you and with you. Customers, employees, investors—they’re all taking a bigger risk than you are.”

innovative Undergrads and mBAs.According to the Undergraduate Program Office, the School of Management has approximately 150 undergrads developing a career path in the field of entrepreneurship. Undergrads from other schools, principally engineering, also take courses at SMG, and many BU schools are represented in the University’s Entrepreneurship Club. “Many of our students come from family businesses,” says Russo, “and are looking to carve out their own role, a way to make their own mark. For most of them, and our other undergrads, we often advise them to get their first job in the industry sector before they try to start a business. We suggest going into the field where they think they want to start a venture, such as medical devices, music recording, restaurant management. Get a good sense of the industry from as many angles as you can to help you gauge the viability of a potential new venture.” All School of Management students get a strong sample of entrepreneurship when, as juniors, they must “face and conquer the Core” (in one student’s words), a full semester team-taught team-learning experience that exposes them to the critical steps required to start a business. When they emerge exhausted but wiser at the end of the semester, they

Office of Techology & Development | CAs | CFA | Cgs | COm | ENg | gRs | LAW | mET sAR | sDm | sED | shA | smg | sPh | ssW | sTh | BioLab | Fraunhofer | Photonics

————————————————————— iTEC sERviCEs + CURRiCULUm —————————————————————UNIVERSITY RESEARCH CENTERS

FEATURE

24 Builders & Leaders

have conceived of a unique product, researched real suppliers, designed a factory floor, produced ads, written a full-blown business plan, and produced a prototype. Within the MBA entrepreneurship concentration, a student may choose from approximately 15 electives each year. A yearly highlight is the $50K Business Plan Competition, which is open to the whole University. The 2010 winner was the BetterMeans team of Karim Bishay, MBA ‘10, Adele Burnes, MBA ‘10, and Karim’s brother Shereef Bishay. BetterMeans is a web-based platform offering social entrepreneurs and large organizations a revolutionary governance model that is decentralized and self-organizing.

Executive Thinking.ITEC and the entrepreneurship faculty teach at multiple levels and in a variety of programs, both on and off campus. ITEC faculty lead one-day “business plan bootcamps” for students, PhDs, researchers, and alumni—people who suddenly say, “I need help in a hurry here.” ITEC hosts the Diploma In Entrepreneurship program each fall at the School’s Executive Learning Center. It’s a 24-credit intensive program for (usually non-MBA trained) people who are either planning or are in the midst of startups, and need to get up to speed immediately on certain financing, operational, and strategic management concepts. Also on the executive level, the School of Management, with ITEC’s backing, trains students from outside the School. Each summer faculty share in delivering a 12-week course developed specifically for visiting Norwegian MBA-level entrepreneurship students. This past summer, Beth Goldstein, senior associate, Distance Learning at ITEC, and Barry Horwitz, executive-in-residence, taught a master class in innovation and growth for medical device firms in Shanghai. The duo also led a New England Technology Venture Accelerator (a program through the French Embassy) for French Laureates who were winners of a business plan competition in France. And there are more programs to come.

Do We measure Up?An institution that teaches entrepreneurship needs first and foremost to be innovative itself and remove barriers. Tradition, inflexible structure, and red tape are the foes of invention. Do we measure up? A walk around BU today should make most starry-eyed tinkerers feel like they are definitely in the right place.

————————— TyPiCAL vENTURE PAThs —————————

FIGURE 2

The steps in a typical venture.1. Form an idea.

2. Evaluate its viability.

3. Decide how best to commercialize it.

4. Formalize the plan.

5. Secure resources.

6. Launch.

STAGE“0” STAGE1 STAGE2 STAGE3CONCEPTION OPTIONS

”What we try to impart is that a startup is not an event; it’s a learnable and repeatable process.”

—Peter Russo

ITEC

OTD

ITEC

OTD

Person’s Individual

Idea

FeasibilityStudy

Canthisideafly?

IdentifyMarket Opportunity

LicenseandTechTransfertoOutsideEntity

SeedMoneyStage

IPDeveloped atBUvia Research

Develop Business Model

SeedMoneyStage

VentureCapitalStage

VentureCapitalStage

STOP ProjectNotFeasible

FACULTy

bu.edu/management 25

michelle A. Bartonassistant Professor, Organizational BehaviorBarton’s research explores how individuals and groups organize to manage uncertainty in real time, as events are unfolding. In particular, she focuses on practices that affect awareness of dynamic and complex events and that facilitate the capacity for flexible and adaptive performance. Barton earned her PhD in business administration (management & organizations), at the University of Michigan and her BA in psychology from Pomona College. Prior to her PhD studies and joining the faculty here, she held management positions at Harvard Business School Publishing and Boston Consulting Group.

Patricia Cortesassistant Professor, markets, Public Policy, & Law In her research, Cortes studies unexplored but potentially key dimensions in which immigration affects sending and receiving countries, such as prices of goods and services, time use of women, and the well-being of the family left behind. She has studied immigration in several countries, including the US, Hong Kong, and the Philippines. Cortes earned a PhD in economics from MIT, and an MS in economics and a bachelor’s degree from Universidad de los Andes in Colombia. Prior to joining BU, she was an assistant professor of economics

at the University of Chicago Booth School of Business. Cortes has also worked for the World Bank Research Department and the Inter-American Development Bank.

Colin m. Fisherassistant Professor, Organizational BehaviorFisher’s research focuses on how teams and individuals improvise. He investigates improvisation in three contexts: (a) team leadership and coaching, (b) creativity, and (c) negotiations. Fisher earned his PhD in organizational behavior from Harvard Business School and an AM in social psychology from Harvard University. He also has an MA in individualized study from New york University and a BMusic in jazz performance from New England Conservatory of Music. In his work as a professional jazz trumpet player, Colin was a long-time member of the Either/Orchestra (1998-2006).

Benjamin Lubinassistant Professor, information SystemsLubin’s principal studies include multi-agent systems, game theory, mechanism design, electronic commerce, combinatorial optimization, preference elicitation and representation, distributed systems, and grid computing. He earned his PhD in computer science, SM in computer science, and AB in computer science, all from Harvard University.

Rodolfo Prietoassistant Professor, FinancePrieto’s research interests include asset pricing theory, portfolio and risk management, fixed income and credit risk markets, and financial econometrics. Prieto earned his PhD in finance at Ecole Polytechnique Federale de Lausanne, a Master of Advanced Studies in economics/finance at UPF, Spain, and a BSc, industrial engineering at PUCV, Chile.

Adam Zawadowskiassistant Professor, FinanceZawadoski’s main research interest is how derivative and over-the-counter contracts affect risk in the financial system. He also studies the effect of asset allocation decisions of investors, especially wealthy ones, on asset prices. He earned his PhD in economics from Princeton University, an MA in economics from Central European University, and an MSc in physics from Budapest University of Technology and Economics.

New Faculty. By JOHN DICOCCO

New full-time faculty include (left to right), Benjamin Lubin, Colin Fisher, Michelle Barton, Adam Zawadowski, and Rodolfo Prieto. Missing is Patricia Cortes.

An excellent recruiting year here at the School of Management has yielded another six outstanding full-time faculty. This, coupled with 11 new full-time

faculty the year before, is a substantial next step in adding depth and expertise to our very talented base of teacher/scholars. Welcome, all.

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26 Builders & Leaders

By JOHN DICOCCO

Overconfidence, by definition, is a sign of self-delusion. While these delusions can spur an inventor to action in the face of long odds, CEOs at large public

companies are typically prudent hard-headed realists. Or are they? A new study by Assistant Professor of Strategy & Innovation Timothy Simcoe (with Alberto Galasso of the University of Toronto) shows that firms with “overconfident” CEOs were more innovative than their peers. While this

did not always translate into a higher share price, their findings suggest that where innovation provides the best route to profitability, boards should seek “unreasonably” optimistic leaders.

Using previous research to identify overconfident executives (OCEs), Simcoe and Galasso examined how CEOs managed their personal wealth. Specifically, they labeled a CEO “overconfident” if they held onto fully vested stock option grants after a firm’s share price had climbed by at least 67 percent. About half of the CEOs in their study exhibited this

behavior of exercising their options to lock in gains and diversify risk, and were thus labeled OCEs. Holding the options is akin to making a large leveraged bet on the firm, and because most OCEs continue to hold large amounts of restricted stock in their own firm, the result is a highly concentrated personal portfolio.

Could the decision to hold on to their fully vested options reflect inside information about the firm, as opposed to excessive optimism? “Perhaps,” says Simcoe, “but previous research shows that, on average, these CEOs could make the same returns by cashing out their options and investing the proceeds in an S&P 500 index. Moreover, option-holders do more deals, are less likely to use debt financing, and are thus more sensitive

to cash flows than their peers. All of this is more consistent with the idea of overconfidence.” (See sidebar: identifying the Overconfident executive.) In fact, Simcoe and Galasso hypothesized a link between overconfidence and innovation as a way to explain why firms run by an OCE don’t underperform their peers, because ordinary CEOs do fewer risky deals and are more conservative with cash flows. To test this idea, they examined data from a sample of 290 firms (primarily from manufacturing and technology-intensive industries) and 627 CEOs during the period from 1980 to 1994. (The researchers focused on this time period because they could find detailed data on CEOs’ personal portfolio management, though they replicate their findings on more recent data, using a less precise measure of overconfidence). When Simcoe and Galasso looked at the relationship between CEO overconfidence and innovation, the results were striking. Firms run by OCEs invested about 15% more in research and development. Their firms also generated 20% more patents per dollar of R&D spending. And the patents granted under

Simcoe and Galasso found that firms run

by overconfident CEOs invested about 15%

more in research and development.

The overconfident CEo.Do You Want One?

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bu.edu/management 27

an OCE received 20% more citations than a typical patent in the same industry and technological field. (Research on innovation often uses citations as a rough measure of the value of a patent.*) Could the CEO really be responsible for an increase in patents? “yes,” says Simcoe, “because patenting at these large firms reflects a broader innovation strategy that gets set at the top.” Simcoe and Galasso provide a theoretical model of innovation in their paper, and suggest that their findings are driven by an OCE’s willingness to push the firm in new directions. “We think the same `bias for action’ we observe in their attitude toward mergers and acquisitions extends to how the firm chooses projects and manages its research and development activity.” One piece of evidence that supports the idea that CEOs can drive innovation is that the impact of hiring an OCE is much larger in more competitive industries such as textiles, apparel, and non-specialty retail, as measured by average profit margins. Simcoe and Galasso also suggest that in these industries successful innovation provides a larger boost to the CEO’s personal reputation as a turnaround artist. So, should boards seek to hire an overconfident CEO? “Our feeling is that overconfidence has both costs and benefits,” Simcoe says, “so it is not clear that it is always good to hire or fire an overconfident CEO. Rather, an overconfident type might be the right person in some situations and the wrong one in others.” Nevertheless, Simcoe is enthusiastic about the implications of their research, particularly the idea that it helps to explain why markets don’t necessarily weed out “irrational” CEOs. As with great inventors, the self-delusions of an overconfident executive can have both have plusses and minuses, which make it hard for the rest of us to clearly discern the line between genius and the baseless certainty of one’s strategic view.

Identifying the Overconfident Executive.In psychological research literature, over- confidence is defined as a type of bias in judgment. A person is overconfident if he has unrealistically high expectations about his own ability or performance. Thus, a person may be called confident if he has unbiased beliefs. Psychologists have found that most people are overconfident in a variety of small ways. For example, people tend to report that they are “above average” drivers and reasonably attractive to the opposite sex. Furthermore, psychologists suggest that individuals typically attribute success to their own actions, and failures to external factors, leading to a strong correlation between success and excessive self-confidence. But how can one identify an overconfident CEO without looking inside their mind? Professors Ulrike Malmendier of UC Berkeley and Geoffrey Tate of UCLA pioneered the idea of using CEOs’ personal financial decisions to measure overconfidence (2005, 2008). They show that most CEOs have very strong incentives to diversify their personal wealth, which is often highly concentrated in a single firm, especially after a period of strong corporate performance. Logically, CEOs who choose to maintain a highly concentrated position must have an unusually high tolerance for risk, or hold very optimistic beliefs about the future performance of their firms. To test their idea, Malmendier and Tate assembled a large data set on CEO option-holding behavior and the performance of their firms. They found that CEOs who held vested option grants that were highly “in-the-money” did not benefit from doing so. However, these CEOs were more likely to enter into M&As, and their investment behavior was more sensitive to the firm’s cash flows (consistent with a belief that markets were under-pricing their debt). Says Simcoe, “Our research takes Malmendier and Tate’s findings as the starting point, and looks for a potential upside of having an overconfident CEO.”

Patents = Innovation.*According to patentcitations.com, patents cited by many later patents tend to contain important ideas upon which many later inventors are building. A company with a large number of cited patents is thus likely to possess technology that is central to developments in its industry…The citation links among patents also indicate the speed at which a company is innovating. Companies whose patents cite relatively recent patents are likely to be innovating faster than companies whose patents cite older patents.” –Gregory McKenzie, filament.com.au

James E. Post, the John F. Smith, Jr. Professor in Management, has been honored with The Aspen Institute’s 2010 Faculty Pioneer Award for Lifetime Achievement (dubbed the “Oscars of the business school world”

by the Financial times), celebrating teachers who have demonstrated leadership and risk-taking in integrating social, ethical, and environmental issues into the MBA curriculum.

Lifetime Achievers.Kathy E. Kram, the Shipley Professor in Management, has received the 2010 Everett Hughes Award for Outstanding Career Research, established to “honor scholars whose research connects the career literature to other organizational research areas” from the National Academy of Management. With Rajashi Ghosh, Drexel University, and Raymond Hayes, University of Indiana, she also

received the Best Paper Award for Research on Management Education at the National Academy of Management 2010. The paper is titled “Developmental Networks as Holding Environments for Growing Leaders: An Adult Development Perspective.”

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28 Builders & Leaders

Tenure granted. Paul Carlile, Associate Professor of Information Systems, is now tenured at the School of Management.

Jeffrey Furman, Associate Professor of Strategy & Innovation, is now tenured at the School of Management.

Fulbright Awardee. Bradford Hudson, a lecturer in marketing at the School, has been selected as a Fulbright Scholar to Canada. He has also been appointed as the Fulbright Visiting Research Chair in Sustainable Commerce at the University of Guelph. His specialty is brand heritage, which involves the use of historical references in current marketing by older companies. Hudson is also assistant professor of marketing in BU’s School of Hospitality Administration.

Pardee Fellow. Stephanie watts, Assistant Professor of Information Systems, was named Faculty Fellow at the Boston University Pardee Center for the Study of the Longer Range Future, appointed by Director Adil Najam, winner of the 2007 Nobel Peace Prize (with Al Gore). She is researching IT transparency and corporate accountability for her paper there. The provost also named her to the Program Development Committee for the new University Honors College.

Distinguished Paper Citings. Iain M. Cockburn, an Everett V. Lord Distinguished Faculty Scholar, won the 2010 Dan and Mary Lou Schendel Best Paper Prize from the Strategic management Journal for his paper “Measuring Competence: Exploring

Firm Effects in Pharmaceutical Research,” co-authored with Rebecca M. Henderson, Harvard University.

Colin M. Fisher, Assistant Professor of Organizational Behavior, won the Academy of Management’s 2010 William H. Newman Award for Best Paper Based on a Dissertation, for his work “Better Lagged Than Never: The Lagged Effects of Process Interventions on Group Decisions.”

Stine Grodal, Assistant Professor of Strategy & Innovation, won the European Group of Organizational Studies Best Paper Award, given annually for a paper delivered at the previous year’s conference, for her article “Hedging your Bets: Explaining Executives’ Labeling Strategies in Nanotechnology.”

Continued on page 37.

got Accolades? Faculty Also Shine Outside the Classroom.

By TRACy SLATER

This fall’s roster of faculty accolades includes recognition for outstanding scholarship, leadership across industry and academia, and even lifetime achievement.

“the growth of the Web has thrown content industries such as news organizations into turmoil. an important reason is one of the Web’s most defining features: hyperlinks.”

“The media must learn how to master the power of links.”

“Linking has fundamentally transformed the ways in which content organizations must compete for attention and revenue. the traffic a site

attracts not only depends on the quality of its own content but also on the pattern of links that connect it to everywhere else: highly connected sites with average content can thus be better off than peripheral sites with great content. Some refer to this environment as the ‘link economy.’”

“it is telling that the players that are currently most successful in this new world, such as Google and the Huffington Post, produce no or

very little content but excel at identifying and linking to the best content that others produce. On the other hand, traditional content producers, such as the associated Press, are in dire straits.”

“Our study aims to uncover the best ways that content organizations can combine original content and links strategically,

as well as to assess the industry and social implications of the current Web culture of free and unilateral linking across sites.”

“Our initial findings suggest that, by linking to one another in a coordinated manner, content organizations can alleviate the

hypercompetition that’s currently eating into their profits and avoid unnecessary duplication of effort. However, such coordination is difficult to

achieve when a) sites are simultaneously competing with each other, and b) links are free and the link target typically has no veto power. Surprisingly, we find that associating payments with links can often increase coordination

and result in better content and higher profits for everyone.”

“the tricky part is computing who pays whom and how much. this is part of what we are currently working on.”

EDITED By JOHN DICOCCO

Associate Professor of Information Systems Chrysanthos (Chris) Dellarocas is one of the world’s most cited scholars in the fields of online reputation and Web 2.0. His interests also include collective intelligence, online advertising, and the economics of media. He is a recipient of the National Science Foundation’s CAREER award, holds nine patents, and serves on the editorial boards of Management Science and Information Systems Research. He holds PhD and SM degrees in computer science from MIT. Currently, with a prestigious grant from Google, he is studying the laws of the “link economy” (along with Zsolt Katona, University of California, Berkeley, and William Rand, University of Maryland). At right, we highlight some of the focus points of the study. Learn more about him at www.dellarocas.com.

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bu.edu/management 29

FACULTy

Chris Dellarocas. Associate Professor of Information Systems.

By ALISSA MARIELLO

Let’s face it. Very few managers ever make it to the C level. It takes extraordinary skill, leadership, and innovation—

and probably a little luck too —and sometimes even then the top of the ladder never comes into view. Chuck Gordon (GSM ’91) rose from intern to youngest-ever senior vice president at United Way over a short 15-year span, was named a “40 under 40” in 2003 by Boston Business Journal, and was recruited by Boston-based nonprofit City year in 2008 for the position of senior vice president and chief development officer. How did he do it? It went like this. Soon after starting at Boston University School of Management for his MBA, Chuck applied for an internship at United Way of Massachusetts Bay. His job was to build a resource directory of nonprofit programs on school campuses. A year whizzed by and United Way offered him a full-time position as the development director for the Leadership Gift Division, soliciting gifts of $1,000 or more. Twenty-one years, six positions, and a senior executive title later, he was still there. “I was given an opportunity to build an individual leadership giving program that had never existed at United Way before. The goal was to diversify the organization’s revenue base to enable more funding across the Boston community. “Traditionally the United Way had focused on workplace giving (small contributions via payroll deduction), but I started inviting donors to consider gifts of $10,000 or more.” Gordon’s work resulted in increased leadership giving from $5 million to $25 million, and the program he created accounted for 45% of United Way’s total revenue. City year took notice. “I had always admired City year from afar,” says Chuck. “Its singular focus on increasing graduation rates was really attractive to me. Through the leadership of CEO and co-founder Michael Brown, a dedicated board, and an incredibly passionate staff, they had a vision unlike anything I had experienced for a number of years.”

Interestingly, there are two other members of City year’s senior management team who graduated from Boston University—Evelyn Barnes (CAS/GRS ‘80), executive vice president and chief financial and administrative officer, and Stephanie wu (COM ‘88), senior vice president and chief program design and evaluation officer—and numerous other staff members from BU as well. “There is a culture of service at Boston University that’s interwoven into many of the classes,” he says. “It’s a reflection of the commitment the University has to the

Boston community. And as a result, it attracts that type of student too. So it’s not surprising to me that City year attracts so many BU students.” Founded in 1988, City year’s goal is to help at-risk high school students stay on track to graduate.

They want to improve their attendance, behavior, and academic performance in math and literacy by placing young corps members in urban schools across the country to serve as tutors, mentors, and role models. Here are a few sobering facts: 44% of dropouts are jobless by the age of 24; 12% of the nation’s high schools produce 50% of the nation’s dropouts; and 75% of state prison inmates are high school dropouts. Going into troubled school districts based on data and requests from superintendents, today City year serves 20 markets in the US, and two overseas in London and Johannesburg. In his current position, Chuck’s main duties are two. One is to raise funds for the headquarters operation to the benefit of the entire network of City year sites. The other is to set strategies and work closely with individual sites, helping to raise funds to meet their annual and long-term goals. “In my position, one of the most important management skills is to be able to understand the needs of any specific site or community and determine the strategies and processes to put in place to help meet those needs. We at City year have to figure out how to leverage the most from a limited set of resources to ultimately achieve our overall objectives.” If the School continues to graduate leaders like Chuck, we really might be able to change the world.

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30 Builders & Leaders

City light. Chuck Gordon (GSM ’91).

“There is a culture of service at Boston University that’s interwoven

into many of the classes...It’s not surprising to me that City Year attracts so many BU students.”

bu.edu/management 31

PAPARAZZi

mBA ORiENTATiON WEEK.Assembling a (hopefully) water-worthy craft, are four first-year MBAs: from back left are Ritika Mahal, Ruchi Mishra, and Lesley Jones, with wide-smiling Bishal Gupta in front.

ALUmNi mEET ThE DEAN.Dean Ken Freeman shares a light moment with Digna Mejia (MET ‘99, ‘03).

smg REUNiON DiNNER AT ThE hyATT.From left, second-year MBAs Louise Davies and Deepa Krishna chat with GSM 2005 alums Kathryn Kirk and Charlie Rosenberger.

Earlier at the same event, from left, Ken Lammy, Patrick Ryan, and Calvin Place (all GSM ’00) take in the river view from the Cambridge Hyatt deck.

UNDERgRAD CLUBs AND ORgANiZATiONs.Juniors Stephanie Thierer and James Shalhoub helped guide freshmen and others around the Undergrad Activities Fair.

32 Builders & Leaders

CLAssNOTEs

A Flurry of Activity.

Dear Fellow Alumni,

Greetings from your School of Management Alumni Board of Directors. Your board and our committees have been busy this autumn with various tasks while getting the new members orientated. We added nine new directors (Beverly Allen (SMG ’75/GSM ’79), Amber Ayer (SMG ’02), Nacole Buyck (SMG ’04), Brett Feldman (GSM ’01), Michael Flippin (SMG ’97), John Iappini (SMG ’68/GSM ’77), Mark Kiklis (SMG ’96), Keith Munsell (GSM ’71), and Michael O’Brien (SMG ’01), and, in addition, three new assistant vice presidents, (Risa Ferri (SMG ’97), Michael O’Brien (SMG ’01), and Alex Tanguay (SMG ’02)). Risa and her Membership & Outreach Committee have been orienting the nine new directors and reaching out to alumni interested in learning more about the board. Michael and his Alumni Network Committee have planned the next four quarterly downtown networking lunches and are continuing to brainstorm two “Business Of” series events partnered with other BU Alumni groups. Alex and his Scholarship & Development Committee are focusing on annual fund and scholarship development. We hope you will consider becoming a member of the Annual Fund Leadership Gift Society (AFLGS) this year. Please see donors on pages 33-37. Debby Dunphy (SMG ’73, GSM ’81) and her committee presented two new distinguished alumni awards to Arnold Karp (SMG ’81), President, Karp Associates Inc. and David Jones (SMG ’86), CEO and co-founder, CastleOak Securities L.P. We wish you a great year and we always appreciate your feedback. Reach us by contacting Jennifer Tobin, assistant director, Alumni Relations, at jentobin@bu.edu.

Connell Tarr, President SMG Alumni Board

sChOOL OF mANAgEmENT

Alisha Bhadelia (SMG ’04) and Erol Ozmeral (ENG ’04, GRS ’07) married on July 31 in Angier, N.C. The wedding party included several other BU graduates, including Jessica weafer (CAS ’04), Sara Cleveland (SAR ’04, GSM ’09), and Kristin Malinowski (COM ’04). Also in attendance were Ryan Dulay (CAS ’04), Alex Tatusov (CAS ’04), Isabel Lazo (CAS ’04), Laura Sceppa (SMG ’02), Joseph Dunn (CAS ’05), Brad Davis (COM ’06), and Kelly Donahue (COM ’06). The couple resides in Chapel Hill, North Carolina, where they are both pursing graduate degrees at the University of North Carolina. Alisha can be reached at alishab456@yahoo.com.

Richard Bryant (SMG ‘96, CLA ‘96) recently celebrated his 10th wedding anniversary with Josephine Marrali (CLA ‘97). The couple met as residents of the Management House in 1995. They live in Long Island, N.y., with their 5-year old daughter, Annabelle. Rich is Head of Treasury Bond Trading at MF Global in New york. Josephine is a general practice attorney for the State of New york.

Danielle DiMaiolo (SMG ‘05) recently joined Kurt Salmon Associates as a consultant in the Retail and Consumer Products group. Prior to joining KSA, Danielle worked for Bloomingdale’s and H&M across several roles.

Joseph M. Donnelly (SMG ‘01) graduated from Columbia Business School with an MBA in May 2010 and began employment with Deloitte Consulting LLP in the Greater Washington DC area in August 2010. He can be reached at joe.m.donnelly@gmail.com.

Gina Perille (SMG ‘01) was recently named the chief communications officer of the Boston Public Library. She has been with the library and the city of Boston since 2009.

Ahmed Rehan (SMG ‘10) just joined the Egyptian Ministry of Health as manager of Public Private Partnership. He now resides in Cairo, Egypt, and can be reached at rehan.egypt@gmail.com.

Alexandra Lauren Silva (SMG ‘05), a private banker at Morgan Stanley, is engaged to marry Michael Jacob Chau (CAS ‘05), a technology analyst at Goldman Sachs. Alexandra can be contacted at asilvany@aol.com.

gRADUATE sChOOL OF mANAgEmENT

Joan F. Crimlisk (GSM ‘89), a resident of Derry, N.H., was elected to the Board of Trustees at the Derry Public Library.

Candida Brush (DBA ‘92) was recently awarded an honorary doctorate of philosophy in business and economics from Jonkoping University in Jonkoping, Sweden. She taught for 17 years at BU and has since moved to Babson College, serving as the Paul T. Babson Chair in Entrepreneurship, Director of the Arthur M. Blank Entrepreneurship Center, and Chair of the Entrepreneurship Division.

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gifts & Pledges of $1,000,000 or higherEstate of Patricia M. Aronowitz GSM ’74Richard D. Cohen CGS ’67, SMG ’69 1

Alana M. Feld COM ’02Kenneth J. Feld SMG ’70 and Bonnie T. Feld CAS ’73Bahaa R. Hariri SMG ’90 Rajen A. Kilachand GSM ’74Robert A. Knox CAS ’74, GSM ’75 and Jeanne Knox 1

gifts & Pledges of $500,000 to $999,999Arthur S. Bahr SMG ’54 Capital IQ, Inc. 1

Factset Research Systems Inc. National Football League Frederick S. Pardee SMG ’54, GSM ’54, HON ’06 Peter T. Paul GSM ’71 1

Amy Wallman SMG ’71 1

gifts & Pledges of $100,000 to $499,999Anonymous Barr Foundation William D. Bloom CGS ’82, SMG ’84 1

Estate of Elinor H. Caines PAL ’30, GSM ’54Estate of Mary Gentzel Cogswell Richard Cogswell Wesley H. Eaton SMG ’43 Hup Fong SMG ’67 Arnold M. Karp SMG ’81Kevin H. Kelley SMG ’72 and Maryellen Kelley 1

Microsoft Corporation 1

MSCI Barra 1

Robert Oldford SMG ’51 1

Richard C. Shipley SMG ’68, GSM ’72 1

John F. Smith Jr. GSM ’65, HON ’93

gifts & Pledges of $50,000 to $99,999Anonymous 1 Barry Dym 3

Russell Sage Foundation Charles L. Schwager SMG ’66 and Evelyn C. Schwager SMG ’66

leaders and givers.July 1, 2009, to June 30, 2010.

gifts to Restricted Funds.We are most grateful to the following alumni and donors, who have invested in BU and the School of Management through restricted funds in support of faculty research, scholarships, student activities, and curriculum development. This roster lists supporters who gave at the leadership level during fiscal year 2010. For a list of all SMG alumni donors to BU and the School, please visit bu.edu/smgalum.

Gary S. Siperstein SMG ’80 and Mynde S. Siperstein SAR ’78 1 Lisa Roets Wendt SMG ’92

gifts & Pledges of $10,000 to $49,999Anonymous Brown Rudnick LLP 1

Jay M. Cashman SMG ’75 1

Douglas Campbell Chamberlain MET ’74, GSM ’76 1

Chevron Products Company Harry H.S. Chou GSM ’49 Mr. & Mrs. Eugene Croisant Robert L. Dubofsky SMG ’60 1

James M. Edwards SMG ’63 1

Edwin D. Fuller SMG ’68 1

Jonathan Gertler GSM ’99 and Jane ClarkAmbassador & Mrs. yousif B. Ghafari Google Inc. Eugene D. Hill III GSM ’80 and Joan Hill 1

Hyams Foundation, Inc. Mr. & Mrs. Peter K. S. Law Charles Reiner Lax SMG ’82 1

Martin J. Linsey SMG ’57 and Miriam Linsey CAS ’57 1

Steven J. Lipman CGS ’86, SMG ’87Robert Margolis CGS ’67, SMG ’69 1

J. Kenneth Menges Jr. SMG ’79 1 Artemis Nazarian SMG ’53 1

NCIIA Theodore Edson Parker Foundation Richard L. Pearlstone SMG ’69 1

Praxair Foundation Adam M. Rosmarin CGS ’83, SMG ’85 Seyfarth Shaw LLP Bhai A. Singh SMG ’77, GSM ’79Marshall M. Sloane SMG ’49 1

Abbot & Dorothy H. Stevens Foundation A. Raymond Tye SMG ’47 and Eileen Tye SMG ’47 1

Stephen R. Weiner SMG ’63 WPP Group

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gifts & Pledges of $1,000 to $9,999Joshua B. Abramson SMG ’01 Howard S. Altarescu SMG ’70, LAW ’74 1 Leslie G. Aronovitz GSM ’81 1 Janet Barbookles LAW ’07, GSM ’10 Mack A. Basil 2

Donald C. Bates SMG ’63 1 Joan H. Beharie SMG ’78 Victor L. Berman CAS ’62, GSM ’66 1 Arnold Bloom SMG ’47, LAW ’50 Mary C. Buletza SMG ’80 1

Samuel Cabot III GSM ’68 and Claire S. Cabot CAS ’64 1,2 Richard D. Carmel Charitable Remainder Trust SMG ’30 1

Daniel J. Carnevale SMG ’83 Mr. & Mrs. Martin R. Champagne 1,2 Raj K. Chandaria GSM ’86 Brian D. Coffee SMG ’81 1 Cynthia R. Cohen MET ’77 Lorin F. Decker SMG ’90 2 John P. DiGiovanni SMG ’89 Jeffrey F. DiModica SMG ’89 Frank D’Orio Jr. SMG ’67 and Elaine H. D’Orio SMG ’67 1,2 Alan M. SMG ’47, LAW ’49 1

and Sybil EdelsteinKenneth E. Fosdick CGS ’65, SMG ’67 1 Daniel R. Frank SMG ’79 1 Steven D. Frank SMG ’88 Ines Garrant SMG ’88 1,3

Edward T. Geary SMG ’77 and Carol R. Geary SMG ’78 1 Steven M. Glovsky GSM ’79, LAW ’79Stephen Gordon 2

George Hansen SMG ’41 1 Andrew M. Harris SMG ’89, GSM ’95 Ronald I. Heller Marc S. Hetnik SMG ’79 1 William F. Hofmann III CGS ’63, SMG ’66 1 IBM Corporation 1 Joseph F. Jabre 1

Elizabeth S. Karp COM ’89 1 Lawrence M. Karp SMG ’87 1 Michael B. Kaufman MET ’74, GSM ’83Kodiak Venture Management LLC 1 Jonathan M. Kramer SMG ’74 Louis E. Lataif SMG ’61, HON ’90 1,3

Brendan G. Magauran Jr. GSM ’03 1,3

Marguerite P. Matson ENG ’62, GSM ’67 Dean Robert F. Meenan MED ’72, GSM ’89 1,3

Anne R. Meyers GSM ’80, GSM ’81 Elliott I. Mishara DGE ’51, LAW ’55, GSM ’61 1 Edward N. Moller SMG ’80 1

Joseph H. Motzkin SMG ’93 1

Sami y. Nawas CGS ’85, SMG ’87 1

Lawrence M. Noe SMG ’79 and Karen L. Noe COM ’80 NuStar Logistics LLP John J. Parker SMG ’68, HON ’97 1,3

Philanthropic Fund Howard S. Reef SMG ’71 1

Bradley T. Rubin SMG ’92 Kenneth D. Rudnick SMG ’50 Melvin E. Scovell SMG ’58 Susan G. Shaw SMG ’68 1

James C. Sherburne Donald T. Shire SMG ’51, LAW ’53 1 Debra A. Simmons SMG ’80 1

Amandeep Singh SMG ’00 Matthew B. Smith CAS ’70, GSM ’72 and Merle S. Smith GSM ’72 Gregory J. Spanos SMG ’83 1 Maria Stata CAS ’62 1

Ray Stata 1

Donald B. Stewart GSM ’98 Robert J. Strechay Jr. CGS ’95, SMG ’97 and Kristen E. Strechay GSM ’04 1 Francis C. Taylor GSM ’74 TeleEMG LLC Peter and Elizabeth C. Tower Foundation Michael Umana SMG ’85 1

George Vanderheiden GSM ’72 1 Gautam Vangala GSM ’10 Jerry A. Viscione GSM ’67, GRS ’69, GRS ’73 Susan L.N. Vogt GSM ’82 Richard M. Wichmann GSM ’90 Marcelle M. Willock GSM ’89

1. Donated to SMG last five years or longer.2. Donor increased gift via company match.3. Current Faculty/Staff.

Please accept our sincere apologies for any mistakes or omissions. We have made every effort to prepare this donor list accurately. if you see an error, please contact Joel Carlton-Gysan, School of management development & alumni Officer, at 617-353-6137 or joelcg@bu.edu.

Annual Fund giving society.In an environment where tuition covers only 58% of the cost of a BU education, the Annual Fund gives the school operating flexibility to support its students and faculty scholars. Unrestricted gifts to the annual fund allow the school to make strategic investments in technology, scholarships, student support services, and other critical functions. The following list recognizes leadership level donors to the Annual Fund during Fiscal Year 2010. For a list of all SMG alumni donors to the Annual Fund, please visit www.bu.edu/smgalum.

President ’s Circle ($25,000+)John K. Billock GSM ’75 1

William D. Bloom CGS ’82, SMG ’84 1

Kenneth J. Feld SMG ’70 and Bonnie T. Feld CAS ’73 David E. Hollowell ENG ’69, ENG ’72, GSM ’74 and Kathleen A. Hollowell GRS ’71, SED ’77 1

Michael T. Lee GSM ’86 David Luski SMG ’80 and Cathi E. Luski CAS ’80 1

Peter T. Paul GSM ’71 1

Allen Questrom SMG ’64 Richard C. Shipley SMG ’68, GSM ’72 1

Edward B. Slatkin SMG ’77

President ’s Associates($10,000-$24,999)Patrick F. Cadigan GSM ’66 Andrew M. Carter Bernard K. Chiu Maureen E. Cullinane GSM ’81 Deborah Pratt Dawson GSM ’82 Robert F. DeBesse SMG ’52 1

John D. Doherty GSM ’95 Millard Drexler GSM ’68, HON ’08 Ahmass L. Fakahany SMG ’79 Alan M. Gittelson SMG ’79 1,2

Michael W. Goldberg SMG ’82 and Terri L. Goldberg CAS ’85

giFTs TO REsTRiCTED FUNDs continued

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Prem Kishan Gupta Lucy Landesman Halperin CGS ’75, SMG ’77Robert W. Hawley Jr. SMG ’74 1

Louis E. Lataif SMG ’61, HON ’90 1,3

Joanna T. Lau GSM ’91 Michael J. Lyons SMG ’81 Isidore Mayrock SMG ’78 and Stacey S. Mayrock CGS ’78, COM ’80J. Kenneth Menges Jr. SMG ’79 1

Gerald L. Nissenbaum SMG ’63, LAW ’67, LAW ’85 1

Shaifalika and Subhrakant Panda SMG ’93 Dorrit M. Saviers GSM ’78 Steven Z. Schwartz SMG ’82 1

Barrie Shore SMG ’53 1

Marshall M. Sloane SMG ’49 1

Aaron Spencer SMG ’52 Russell J. Stein GSM ’98, LAW ’04, LAW ’05 1

Oscar A. Wasserman SMG ’56, LAW ’59, LAW ’62 1

Mr. & Mrs. William S. Wasserman Jr. Sidney D. Wolk SMG ’57 Edward J. Zander GSM ’75, HON ’05

gold Annual giving society($5,000-$9,999)Salaam S. Al-Shaksy CAS ’85, GSM ’91, GSM ’92 Arthur S. Bahr SMG ’54 Ike Brown SMG ’76 1 Robert H. Clark Jr. SMG ’64 1,2 Suzanne Cutler SMG ’61 1 Richard Dieter SMG ’65 1 Estate of Margaret E. Gamble CAS ’30, GSM ’38 Sheryl H. Haberman LAW ’85 1

Edward J. Hartnett SMG ’54, GSM ’58 1,2 Thomas W. Jones GSM ’78 1,2 Lawrence M. Karp SMG ’87 1

Robert A. Knox CAS ’74, GSM ’75 1 William H. Kremer SMG ’86 Ronald A. Lopez SMG ’77 Andrew Lyasoff and Hannelore Glaser CAS ’71, GRS ’77, GSM ’81 3

Dennis J. McNichol SMG ’82

Lawrence A. Merse SMG ’70 Richard E. Mikels SMG ’69, LAW ’72 1 Charles L. Moore GSM ’75 Sami y. Nawas CGS ’85, SMG ’87 1 Mark J. Notkin GSM ’88 Robert M. Paine SMG ’86, GSM ’91Richard D. Reidy SMG ’82 and Minda G. Reidy SMG ’82, GSM ’84 1 Shirley M. Sontheimer SMG ’58 1 Elinor Svenson GSM ’75 David S. Taub SMG ’61 Estate of E. Philip Taylor SMG ’33 Andrew M. Vrigian SMG ’88 2 Jacqueline M. Washburn SMG ’89

silver Annual giving society($2,500-$4,999)Herbert S. Alexander SMG ’64 1,2 Alan Altman LAW ’54, GSM ’51 1 Arma E. Andon SMG ’41 1 Edward C. Arditte GSM ’80 and Barbara A. Arditte GSM ’80, COM ’97 2

Stephen J. Bakonyi SMG ’90 2 Kathryn J. Barton SMG ’84, LAW ’90 2

John L. Belsito SMG ’82 Mary C. Buletza SMG ’80 1 Glen P. Calderon SMG ’84 1 Benjamin S. Clark SMG ’62 1 Roger P. Day GSM ’87 1 Mr. & Mrs. Peter R. Dunn Wesley H. Eaton SMG ’43 Daniel R. Frank SMG ’79 1 John J. Gaffey SMG ’51 1 Herbert M. Gann DGE ’53, SMG ’55 Henry Gardiner SMG ’74 1 Richard J. Golden GSM ’77 2 Robert S. Golden SMG ’64 1

Michael W. Husman SMG ’97John P. Iappini SMG ’68, GSM ’77 1

Gerald T. Iseda GSM ’89 1,2 Pamela B. Jackson GSM ’91 1,2

David L. Kelly CGS ’89, SMG ’91Dana F. Klein SMG ’82 1 Lawrence M. Kosow SMG ’75, GSM ’77 1

Paul S. Kramer SMG ’53, GSM ’54 1,2 Caryl J. Kuchman SMG ’79 1,2

Lawrence E. Langsam SMG ’57 1 Henry S. Levin LAW ’60, SMG ’58, SMG ’84 1 Jonathon Lee Levin CGS ’89, SMG ’91 1 Fernando Malenchini GSM ’00 1 Robert F. Meenan MED ’72, GSM ’89 1,3

Jay B. Mitchell SMG ’62 Bradford L. Parberry GSM ’86 Richard L. Pearlstone SMG ’69 1 Robert B. Potash SMG ’70 1

Martin S. Rifkin SMG ’82 Kenneth M. Sands SMG ’83 1 Charles C. Siegel SMG ’48 1 Brian C. Smith SMG ’96 1,3 Peter M. Steinmann GSM ’91 1 Joseph P. Terrasi SMG ’55 1,1

Mario A. Umana SMG ’63 1

Michael Umana SMG ’85 1

Daniel J. Wagner Sr. SMG ’60 1 Garrett A. Walls SMG ’78 1 Rainer Wenz SMG ’91 Philip W. Wolcott SMG ’61 1 William Wright SMG ’47 1,2

Bronze Annual giving society($1,000-$2,499)Ratnadeep Acharyya GSM ’05 *Karen E. Adams GSM ’09 *Stuart Aferiat 2 Fatmah E. Al-Ashour SMG ’87 yamen Al-Hajjar SMG ’07 *Arthur C. Anton SMG ’50 and Madeline K. Anton PAL ’48 Jonathan A. Baron GSM ’82 1 Timothy Beardsley GSM ’08 *2

David L. Bedard GSM ’00 and Kerry Locke Bedard GSM ’00 1 Llewellyn N. Belcourt SMG ’53 1 James W. Bell GSM ’09 *Rachel M. Berlin SMG ’04, GSM ’10 *Ranjeet S. Bhosale GSM ’09 *Karen Bigman SMG ’84 William S. Blackwell GSM ’09 *Henry G. Booth Jr. GSM ’69 1 Samuel S. Booth GSM ’09 *Ifigenia A. Boulogiane GSM ’65 and James G. Boulogiane 1 Elise Brafman GSM ’10 *Christina M. Brathwaite SMG ’10 *Leo R. Breitman GSM ’65 1,2

Nancy S. Brickley GSM ’86 and Richard Brickley 1 Jayme J. Brown GSM ’09 *James F. Buck Jr. SMG ’09 *Bladen J. Burns SMG ’92 1 Paul E. Butler Jr. GSM ’09 *Michael C. Campbell GSM ’00 Michael P. Cannistraro GSM ’10 *Gerald Caporicci SMG ’74 1,2 John P. Carli SMG ’73 1

Robert E. Carlson SMG ’88 Antonio Caroprese GSM ’09 *Robert P. Carrigan Jr. SMG ’89 John G. Carriker SMG ’76 1 Susan A. Casey GSM ’05 1 Nicolas C. Gard GSM ’09 *Janet F. Chapman GSM ’77 Eugene B. Chen GSM ’09 *Jenny y.C. Chen GSM ’09 *Won Kak Choi GSM ’10 *Amy Choquette GSM ’09 *Herbert T. Clark III GSM ’63 1 Jeffrey T. Clement GSM ’07 *Daniel J. Coakley SMG ’58 1,2 Brian D. Coffee SMG ’81 1,2 Jared P. Coffin GSM ’09 *John R. Conant SMG ’49 Kristen M. Cox GSM ’10, SPH ’10 *William Crawford GSM ’80 1,2 Sarah E. Cue GSM ’10 *Albert L. Cummings SMG ’52 1 Sarah B. Curley GSM ’09 *Arthur J. Daltas GSM ’73 1 Rachel T. Demaster GSM ’09 *Allen F. Dickerman GSM ’59 Paul G. Dionne GSM ’09 *Peter C. Diotte GSM ’85 1,2 James P. DiSilva SMG ’65 1 J. Douglas Dixon GSM ’00 2

Luke E. Donaher CAS ’01, GSM ’10 3*Frank D ’Orio Jr. SMG ’67 and Elaine H. D ’Orio SMG ’67 1 Elizabeth G. Doubek SMG ’88 1

Mr. & Mrs. Cyril R. Drabinsky John M. Draghi SMG ’82 1 Lance F. Drummond SMG ’76 Deborah A. Dunphy SMG ’73, GSM ’81 1,2 Lisa M. Dutot SMG ’00, GSM ’10 1 *Chelinde M. Edouard MET ’80

ANNUAL FUND giviNg sOCiETy

36 Builders & Leaders

Jeffrey T. Eldridge GSM ’09 *Anna L. Eng GSM ’09 *Olaf Faeskorn GSM ’09 *Richard A. Farrell SMG ’54, GSM ’63 1 David S. Fehr GSM ’62 William A. Felder SMG ’64 1 Francis R. Fincke CAS ’03, GSM ’08 *Barbara J. Finder SMG ’80 1 Sean M. Flynn SMG ’84 John A. Foppiano SMG ’53 1 Joseph R. Forbes SMG ’10 *Andrew Forcier GSM ’10 *Charlotte H. Friedman Laura M. Frizzell SMG ’91, GSM ’04 1 Jonathan J. Galli SMG ’83 1 Victor J. Garo SMG ’63, LAW ’65 1 Joel S. Gaynor GSM ’09 *Stephen R. Gerety GSM ’07 2 Robert B. Getreu SMG ’92Craig A. Gleason GSM ’08 * 2

Lawrence Glovin SMG ’57@ Wolfgang K. Goetzinger GSM ’08 *2

Marc S. Goldberg SMG ’64 1 Joshua M. Goldstein GSM ’08 *Julie D. Gonzalez GSM ’09 * 2

Sven F. Grail SDM ’90, GSM ’90 1 John E. Gray Jr. SMG ’79Ralph H. Groce III CGS ’80, SMG ’82, MET ’84 Lisa M. Guertin GSM ’04 1,2 Joshua E. Hackel CGS ’00, SMG ’02 Nubar D. Hagopian GSM ’67 George W. Haines GSM ’67 1 David D. Hall GSM ’09 *Zachary M. Halloran GSM ’09 *young Jae Han GSM ’79 Antoinette Hanes *Lauren E. Hanlon GSM ’09 *Stephen P. Hannabury GSM ’90 1 George Hansen SMG ’41 1,2 James F. Harper GSM ’09 *2

Alan P. Heatherley GSM ’08 *Donald S. Heaton SMG ’68, GSM ’70 1 Lynn M. Hendrickson GSM ’08 *Michael E. Herman SMG ’69, LAW ’78 1

Ann C. Hertelendy GSM ’06 *Thomas T. Higgins SMG ’73 Benjamin Hildreth GSM ’10 *William F. Hofmann III CGS ’63, SMG ’66 1 Richard G. Holland Jr. SMG ’49 yeji Hong GSM ’09 *2

Carl I. Hoyer SMG ’51 1 Peter M. Hunt SMG ’73, LAW ’77, LAW ’85Ruth A. Hunter ENG ’64, GSM ’86 1 Frederick D. Huntsberry CGS ’82, SMG ’84Ilisa Hurowitz LAW ’81 1,3

David M. Israel GSM ’84F.X. Jacoby III GSM ’91 1 Ellen J. Janis GSM ’10 *Pauline C. Jeong GSM ’09 *Mimi Jigarjian GSM ’87 1 Earl K. Johnson SMG ’59 1 Leonard W. Johnson GSM ’89 M. R. Ophas Kanchanavijaya SMG ’60, GSM ’61 Lawrence E. Kaplan LAW ’68, SMG ’65 1 Gary M. Karelis SMG ’70 1 Jeff S. Katten SMG ’05 *Jonathan C. Katz GSM ’09 *Rachel B. Katz SMG ’10, CAS ’10 *Paul C. Kaynor GSM ’06, GSM ’08 1*Gina M. Kelly GSM ’93 2

C. Annette Kelton SMG ’81 Abhishek Khanna GSM ’08 *Eiu Kim GSM ’08 *2

Ju C. Kim GSM ’08 Paul J. Kim GSM ’10 *Donald W. King SMG ’74 1,2 Deron P. Kohl GSM ’08 *Stephen R. Kosow SMG ’78 1

Igor Kovalik David L. Kravette CGS ’81, SMG ’83Robert D. Krebs CGS ’80, SMG ’82James B. Kurdek GSM ’08 *2

Andrew J. Lanoix GSM ’08 *Kimberlee M. LeDonne GSM ’08 *Andrew T. Lee GSM ’10 *Ju-Lien Lee SMG ’02, GSM ’09 *Alan M. Leventhal HON ’09 and Sherry Leventhal 1 Joshua A. Levine CGS ’08, SMG ’10 *

Daniel J. Lherault CGS ’08, SMG ’10 *Eli Lipcon SMG ’67Dale K. Lipnick SMG ’86Jarad M. Logsdon GSM ’09, GRS ’09 *Forest R. Lombaer Jr. Lois A. Long GSM ’09 *2

Brendan J. Longcore GSM ’09 *James F. Lord GSM ’81 2 Taline Lorensian GSM ’09 *Erica M. Lotz GSM ’10 *Alfonso T. Lubrano GSM ’73 2

Michael A. Lukasek GSM ’03 2

Richard D. Lynch GSM ’95 and Susan D. Lynch GSM ’91 Atta A. Malik GSM ’09 *William S. Marsh GSM ’07 1 Katherine A. Martelon GSM ’83 1,2 Warren Martin SMG ’77 Nelson E. Mather III DGE ’52, SMG ’54 1 Ana Maxim GSM ’09 *William T. McArthur GSM ’08 *Rebekah L. Mccaslin GSM ’10 *Edward A. McDermott III CGS ’08, SMG ’10 *Brian R. McGough SMG ’10 *Jonathan S. Miller SMG ’73, COM ’75 1 Randolph L. Miller CGS ’67, SMG ’69 1 Maxine E. Milstein SED ’71, GSM ’06, *Stephen E. Milstein SMG ’77 Edward N. Moller SMG ’80 1

Eric D. Muller SMG ’94 and Lydia S. Muller SED ’94 2

W. Keith Munsell GSM ’71 1,3

Michael A. Musi SMG ’78 and Angela J. Musi SMG ’80 1 Humphrey K. Mwangi GSM ’09 Alice G. Myatt SMG ’10 *Michael C. Nash Jr. GSM ’79 Mr. & Mrs. William Nelson Seth R. Newell GSM ’07 *2

Horace S. Nichols SMG ’51 Richard E. Norton SMG ’59 1,2 Mark J. Nugent CGS ’81, SMG ’83Carol B. Nulman CGS ’76, SMG ’78Thomas J. O ’Connell Jr. GSM ’08 *Thomas E. O ’Donovan Jr. SMG ’58 1

Jill W. Okun SMG ’82 1 Mitchell W. Oldham GSM ’09 *James F. Orr III GSM ’70 Jerome Ostrov SMG ’64 1 Sonali Padhi GSM ’08, SPH ’08 *Joan M. Palermo SMG ’92 2

yiannakis Papatheodorou Jong G. Park GSM ’98 Bert W. Parmenter III GSM ’74 1,2 Kristen J. Parnell GSM ’10 *Jonathan R. Pasquale SMG ’08 *Stefano Perotta GSM ’10 *Michael R. Petizon CAS ’02, GSM ’09 *Thomas A. Petrie GSM ’70 Michael T. Picone GSM ’06 1,2*Christopher S. Pilalas SMG ’75 1

Laura W. Plattner GSM ’10 *James E. Post 3

Steven D. Preiss SMG ’79 Kimberly Purdue GSM ’95, GRS ’96 1,3

Albert G. Quinzani SMG ’42 1 Allison Rappaport GSM ’10 *William F. Reardon Jr. SMG ’53 1 Shaun Reynolds GSM ’09 *2

Thomas L. Rich SMG ’80 Nicholas A. Rioux GSM ’09 *Mr. & Mrs. Joseph Ritorto Robert T. Rizk GSM ’08 *Kristine A. Rose SMG ’09 *Mr. & Mrs. Robert W. Rose 1 Robert D. Rosenthal SMG ’71 Matthew W. Roth SMG ’81Tammy L. Rothstein-Levine SMG ’82 1 Anthony M. Rozmanith GSM ’07 *Melanie Samson GSM ’08 *Heather S. Schachter GSM ’09 *2

Schermerhorn Family CGS ’82, SMG ’84 3 Ronni A. Schnell SDM ’81 1,3

Jay E. Schulman SMG ’83 1 Charles L. Schwager SMG ’66 and Evelyn C. Schwager SMG ’66Hakan R. Seber CAS ’04, GSM ’10 3*Rohit Sharma SMG ’10 *Donald T. Shire SMG ’51, LAW ’53 1 Richard A. Short CAS ’76, SDM ’82 1

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ANNUAL FUND giviNg sOCiETy continued

Got accolades, continued from page 28.

Siobahn O’Mahoney, Associate Professor of Strategy & Innovation, won the Outstanding Author Contribution Award at the 2010 Literati Network Awards for Excellence for her chapter “Differentiating Organizational Boundaries,” published in research in the Sociology of Organizations.

Scott Stewart, Associate Professor of Finance and Faculty Director, MSIM Program, won first place in the Educational Research Category at the 2010 Financial Education Association annual meeting for his paper “Do Student Evaluations Match Alumni Expectations: A Study of a Specialized Masters in Finance Program,” co-authored with Carla Guevara, Boston University School of Education. His paper “Absence of Value: An Analysis of Investment Decisions by Institutional Plan Sponsors” won the 2010 Financial Analysts Journal Graham and Dodd Award of Excellence.

major grants. Chrysanthos Dellarocas, Associate Professor of Information Systems, has been honored with a 2010 Google and WPP Marketing Research Award and grant for his work “Media, Aggregators and the Link Economy: An Analytical and Empirical Examination of the Future of Content,” with co-author William Rand (University of Maryland). He also received a 2010 summer research grant from the Networks, Electronic Commerce, and Telecommunications Institute, along with coauthors Zsolt Katona, University of California, Berkeley; and William Rand, University of Maryland, for their work “Media, Aggregators, and Strategic Hyperlinking in Content Networks.”

Stine Grodal, Assistant Professor of Strategy & Innovation, and Fernando Suarez, Assistant Professor and Chair of Strategy & Innovation, were awarded a three-year National Science Foundation grant for the project ”Dominant Categories, Industry Life Cycles, and Entry Timing Advantages.”

Shuba Srinivasan, Associate Professor of Marketing, won a 2010 Google and WPP Marketing Research Award and grant for her study “Are Audience-Based Online Metrics Leading Indicators of Brand Performance?” co-authored by Koen Pauwels, Dartmouth College; Oliver Rutz, yale University; and Randolph Bucklin, University of California, Los Angeles.

Board Leaders and Committee Luminaries. Jack Aber, Professor and Chair of Finance, has been elected to the Board of Trustees of the Aston Funds, a Chicago mutual fund complex, as well as to the Board’s Audit Committee.

Samina Karim, Assistant Professor of Strategy & Innovation, was elected to the Executive Committee of the Academy of Management BPS Division for the term 2010-2012.

Robert Marquez, Associate Professor of Finance, has recently been named an associate editor in the finance department at the journal management Science.

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Michael Shwartz 1,3 Gregory P. Silva GSM ’09 *Po Sit Jeffrey Smith GSM ’09 *Sheila T. Smith GSM ’84 2

David B. Spenciner GSM ’09 *Roseanna Spizzirri SPH ’80, GSM ’91 1 Kerry A. Stakem SMG ’96 1

Jeremy M. Stern GSM ’09 *Sarah Stevenson GSM ’09 *Cathy L. Su GSM ’09 *Joshua Sucsy GSM ’08 *Mr. & Mrs. Austin Sullivan Alicia Sundberg SMG ’90 Thomas J. Szkutak SMG ’82 Milenko Tanasijevic GSM ’04 Alex F. Tanguay SMG ’02 *2

Abdallah Tannous GSM ’08 Carl R. Tarabelli SMG ’82 Shun yu Teng GSM ’07 *Constantine Tsiros SMG ’66 1 John K. Twyman Jr. SMG ’82Parag Vaish GSM ’03 1,2 Charles B. Van Dyke CAS ’03, GSM ’09 3*Gary A. Villella SMG ’71, CGS ’69 2

Louis J. Volpe GSM ’78 and Carol M. VolpeGordon R. Walsh ENG ’67, ENG ’68, GSM ’71 1 Shao-yun Wei GSM ’07 *Robert J. Weissman SMG ’58 Ronald G. Weissman SDM ’77 1

Patrick S. Wilmerding GSM ’99 1

Helen Wong GSM ’09 *Joseph F. Wrinn GSM ’82 Narisa S.A. yee GSM ’09 *John B. Zedros CGS ’80, SMG ’82 1

Celia Diane Zolade GSM ’09 *Anthony A. Zona GSM ’93 1

1. Donated to SMG last five years or longer.2. Donor increased gift via company match.3. Current Faculty/Staff. * Recent grads can join AFLGS with gift of $100 for each year since graduation.

Please accept our sincere apologies for any mistakes or omissions. We have made every effort to prepare this donor list accurately. if you see an error, please contact Joel Carlton-Gysan, School of management development & alumni Officer, at (617) 353-6137 or joelcg@bu.edu.

COmmENTARy

38 Builders & Leaders

By KATHy E. KRAM

Alert to climbers, strivers, and those seeking higher rank. The personal, one-to-one, mentor-to-protégé approach is no longer touted as the holy grail of career advancement, professional development, or satisfaction in

contemporary work settings. With today’s fast-changing technology and increasingly global, multicultural, and team-based work environments, no single mentor could possibly provide the guidance, exposure, and opportunities that are so essential to effectively managing current job challenges and preparing for future leadership roles. Nor is assigning formal mentors to high-potential employees the solution to building a high-performance, learning organization. Our recent research shows that creating and cultivating a developmental network is a far better approach to ensuring ongoing learning and growth. A developmental network is that group of individuals who have a genuine interest in your development and are uniquely qualified to assist you in a critical aspect of your learning and professional growth. The individuals who make up your developmental network may or may not know one another, and they may span several departments, organizations, and geographies. Note we are not referring here to your entire network. Rather, a developmental network is that sub-network of people, a small group of about five people to whom you turn for mentoring support in your everyday life at work, a group you might think of as your personal board of directors. The point here is that these individuals have been enlisted by you to provide the mentoring functions that will enable you to take the next step forward, whatever that may be. Developmental networks provide information, access, and emotional support, all or at least some of which may be important to you.

Professor of Organizational Behavior Kathy E. Kram, The Shipley Professor

of Management, recently received the 2010 Everett Hughes Award

for Outstanding Career Research from the National Academy of

Management. At our invitation, she submitted an excerpt from a piece

submitted to the Wall Street Journal, which ran March 2010. Her co-author

was Monica C. Higgins, Professor of Education, Harvard University

Graduate School of Education.

Mentoring 2.0.Developmental Networks at Work.

A developmental network is that sub-network of people to whom you turn for mentoring support in your everyday life at work.

COmmENTARy

bu.edu/management 39

Having a network of high-quality relationships characterized by mutual learning and trust is essential to doing one’s current job and preparing for future opportunities. The fundamental nature of mentoring has been transformed from one-to-one, stable, hierarchical relationships to a wide variety of developmental relationships with peers, seniors, juniors, family members, and friends (due to regular restructuring, downsizing, and strategic repositioning that are now so common). In addition, given the steep learning curves that characterize most global markets, individuals must constantly acquire new knowledge and skills. Even those who are experienced and have served as traditional mentors find themselves in need of learning from those who have the latest technological knowledge and skills. Thus, juniors and seniors are often co-learners. Perhaps more so than ever before, peers can learn from one another in one-on-one and group settings where complementary knowledge and skills, as well as shared challenges, can be a source of learning and problem-solving for all present.

how to Build yours.The keys to building a developmental network involve a bit of work, but it’s worthwhile. First, knowing yourself well, including your personal goals, strengths and weaknesses, and relational skills, can be tremendously useful to others who are trying to help you. Only with this self-awareness will you be able to figure out to whom to turn for developmental support. Part of your self-knowledge should include an assessment of your relational skills, such as your propensity to reach out for help; your ability to identify potential developers; your capacity to initiate conversation with individuals who don’t know you; and your openness to sharing your own experiences, inviting feedback, and establishing a connection of mutual trust and respect with one another.

Second is to know your career context. Think of this as an opportunity audit. Knowing yourself is one half of the equation. The other is knowing the opportunity structure for where you want to go. Whether it’s achieving balance, promotion, or change that you seek in your career, there are different kinds of advice and coaching that you will want to seek. The more prepared you are about whom and what you need, the more thoughtful and potentially rewarding your developmental network will be. Individuals who want to change firms or industries run the risk of not having an accurate understanding of the context and job characteristics of their desired positions. Without the benefit of knowing one or more individuals who are already working in the new job, organization, or industry, it’s quite likely that your assumptions about the move may be faulty or at best incomplete. Third, enlist potential developers. you should approach prospective developers with a sense of how they might benefit from an active association with you. Having a clear sense of these possibilities will make it easier for you to empathize, ask relevant questions, and disclose information about yourself as you ask for guidance that will facilitate meaningful connections and, in turn, mutual learning and development.

Networks Aren’t static.Fourth, regularly reassess your developmental network. As we compare networks of successful executives in our research, it is clear that as one’s career unfolds, the ideal developmental network changes as well. Always be thinking of who may be able to help in your next step. Fifth, develop others and your organization as you develop yourself. High-quality mentoring is characterized by mutual learning. Consider your developmental network a critical tool for developing others, your organization, and yourself. If you are discerning about the value of your current developmental network and take action to strengthen its value to you, you will at the same time create opportunities for those you enlist to enhance their own developmental networks. Ultimately, these networks can be leveraged to serve organizational performance and development as well. It’s a win-win proposition for you and for your organization.

Whether it’s balance, promotion, or change that you seek in your career, there are different kinds of advice and coaching that you will want to seek.

40 Builders & Leaders

DEAN’s COmmENTARy

By KEN FREEMAN, ALLEN QUESTROM PROFESSOR AND DEAN

in a challenging world with widespread pressure to improve business performance, we have a choice. We can view major business decision-making as the most important work we undertake as leaders, without ensuring effective

implementation of these decisions throughout our organization. Or we can make the effective and respectful deployment of our decisions with customers, suppliers, and employees just as important as making the difficult decisions themselves, yielding stronger results. During a career spanning almost 40 years, I have learned that treating everyone with dignity and respect, no matter how tough the times, spells the difference between having an optimistic, committed organization or a demoralized, disgruntled employee base that holds back progress, often prolonging the agony of poor business performance. Whether it is modifying how the work is done, how it is staffed, or when other changes are made, affected workers look for signals that they are being treated fairly, as human beings, in a dignified way. In addition, employees watch our every move to see how we treat their colleagues, who are in many cases their friends. For example, everyone quickly moves from the harsh reality of facing a staffing reduction to closely watching how we implement the decision. It all boils down to how you value your fellow employees. Are they important assets that help enable your company’s success? Or do you view them as nonessential to the success of your company or your personal success as a leader? A number of years ago, I was placed in charge of a business that had longstanding performance problems. The customers were not happy with our quality and service. My superiors believed the root of the problem was a workforce that didn’t care. The business had largely been run by edict from the top, with a frequent flow of demands and ultimatums (“fix this or else”) without meaningful dialogue, a solicitation of ideas, or building a broad-based commitment to make needed changes. Performance significantly improved only after we changed the approach to leadership, focusing on sincerely engaging all employees openly and honestly, sharing consistent and frequent communications about the business, and constantly seeking everyone’s ideas and commitment to help make things better. Responsible leaders generally make decisions with a disciplined process. We need to implement our decisions in a similar way, observing several important ground rules: 1) Treat every employee with dignity and respect; 2) Serve all customers without disruption; and 3) Communicate openly, honestly, and frequently to address rumors and confirm facts. What is the outcome when these tenets are followed? Employee loyalty and customer satisfaction improve, and financial results follow. We have a choice as leaders: treat our employees with dignity and respect, even under the most difficult circumstances, or demotivate our workforce by treating employees as if they are machines, without a heart and without a brain. If you select the latter course of action, prepare for an extended period of poor performance and a workforce that will forever question your motives, your integrity, and your capability to lead.

Respect and Results go Hand in Hand.

It all boils down to how you value your fellow employees.

Are they important assets that help enable your company’s

success? Or do you view them as nonessential to the success

of your company or your personal success as a leader?

ThE LAsT WORD

Susanne D. lyons (GSM ’82).

The greatest truth in management: there are very few solo acts in business.

My first job was: delivering the local paper. they told me they only hired boys, and i told them i knew the head of the aCLU. (i didn’t, but i got the job anyway.)

The last book I read was: The Girl Who Kicked the Hornet’s Nest by Stieg Larsson.

No one has influenced me more than: Cesar milan, the dog Whisperer. i find his methods work not only with dogs but with employees and teenagers too.

The moment I knew I didn’t know it all was when: my daughter explained twitter to me.

when I attended the School of Management, I wish: i had been able to take more courses.

My last meal would be: Pizza, a glass of red wine, and something intensely chocolate for dessert.

If a film were made of my life, I’d be played by: diane Lane.

The most difficult part of management is: Learning when to let go and allow employees to stumble.

My next venture will be: educating the next generation about our planet.

My favorite place to go on holiday is: anywhere my family is.

when I was 10, I wanted to be: an oceanographer.

Most people don’t know that: i used to raise mice and i am a very good baker.

Every day I make the time to: Get out in nature and hug my dog.

Running a successful organization takes: Vision, leadership, energy, and a sense of humor.

The soundtrack of my life includes: anything from Glee.

Nothing tells more about a person than: the pictures they post on Facebook.

My guilty pleasure is: eating cupcake batter.

If I could change one thing about the world, it would be: to help people listen more than they speak.

I’m happiest when: i’m singing or hiking.

what’s changed most in business is: Corporate governance, at least for public companies, is a much more serious business.

The wisest investment I ever made was: Learning to type.

Susanne D. lyons has held senior marketing and general management roles at some of the largest financial services companies in the US, including chief marketing officer at both Charles Schwab & Co and Visa USA. In 1999, the Financial Women’s Association named Susanne “Financial Woman of the Year” and, in 2006, she was named one of America’s top 50 marketers by Advertising Age. She received her undergraduate degree from Vassar College and her MBA from Boston University. We’re honored to give her the Last Word.

2010 Distinguished Alumni.OntheeveningofOctober29,theSchoolcelebratedits2010DistinguishedAlumniAwardHonorees.Fromleft,presenter Suzanne Cutler (SMG‘61),David Jones (SMG’86),Dean Ken Freeman, Arnold Karp (SMG’81),andpresenterJeanette Horan (GSM‘93). DavidJonesisco-founder,president,andCEOofCastleOakSecurities,aboutiqueinvestmentbankbasedinNewYorkthatprovidessalesandtrading,capitalmarkets,andfinancialadvisoryservices(www.castleoaklp.com). ArnoldKarpispresidentofKarpAssociates,andco-founderofInsightLaboratories.KarpAssociatesisabuildingfirmspecializingindistinguishedcustomhomesandhistoricalrenovations(www.karpassoc.com).InsightLaboratoriesisaconsumerproductstestingcompanywithofficesinNewYorkandSingapore(www.insightlabs.com).

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