Zane,. Network . Rudnick, Freed Osr. Gesmer 1 he SPRING_2001.pdf freeing zane TOEFL listening ......
SPRING
2001
BOSTON UNIVERSITY SCHOOL
of
Management
Master Venture
Capitali Undergrads In Demand Team
Chemistry New
Approach
To Retirement
http://manaqement.bu.edu
Companies like these
can
choose any of the world's top business schools.
They choose this
one.
Sllll Microsystems donates to a scholarship fund for our innovative new dual-degree MS'MBA. The GE Fund makes it largest-ever donation to a business school to create and sup port our Center for Team Learning for its executive
.
personnel. Lucent
future of the mobile Internet and
IBM
selects Boston
provides $5
Chase selects the School of Management our
Leadership
Institute for
training
its
engages this School to
University
as its
million of unrestricted as a
develop distance learning courses sole US partner
funding J. P.
to
research the
Morgan
key recruiting school. Pitney BoweS
high-potential
selects
managers.
We could go on, but you get the idea. By delivering consistent leadership. To learn
results
more
through imaginative programs,
about what the Boston
your organization, please contact
us.
You'll be
University
making
a
we've developed
School of
a
reputation for
Management
can
great choice, too.
BOSTON UNIVERSITY SCHOOL
of
Management 595 Commonwealth Avenue, Boston
.
MA 02215
617-353-2668 http://management.bu.edu
do for
Keep in Touch! Builders and Leaders
keeps
you informed about what's
happening
at
the School of
Management
please
take
a
help
moment to
up with
keep
us
your progress. Note
to
International Alumni: Builders
and Leaders is
now
available online at
htln://manasicmenl. bu.edu. Please noti
fy
us
if you would
prefer
not to
Builders and Leaders mailed either us
case,
please
visit
our
have
you. (In site and lei to
know what you think. Email
to:
[email protected].) Please
use
the attached card.
Fold and seal with
tape.
Keep in Touch! Builders and Leaders
keeps
you informed about what's
happening
at
the School of
Management
please
take
moment to us
keep
a
help
up with
your progress. Note to International Alumni: Builders
ami Leaders
is now
available online
http://management.bu.edu.
at
Please noti
us if you would prefer not to have Builders ami Leaders mailed to you. (In
fy
either us
case,
please
visit
our sue
and let
know what you think. Email to:
[email protected].) Please
use
the attached card.
Fold and seal with
tape.
SPRING
PPjrJp_f, BOSTON
UNIVERSITY
SCHOOL
OF
MANAGEMENT
The
Undergraduate Program. Where tougher is also better
Team !
ALUMNI
page 3
Chemistry. they mulupU
Letter from the President.
tier,
PAGE 6
Alumni Board
accomplishments
PNP's 25th Year. Public &
Nonprofit
celebrates
PAGE 7
MBA
PAGE 32
Beta Test A Success. SMG
grads launch local chapter of Beta
alumni
DBAs
Gamma
For New Truths.
Dig
Doctoral students new
explore
territories. PAGE
Applications Jump. Multiple [actors play a part
the
Institute trains
capitalist
PROFILES
Health (
Medal Round.
both PAGE 9
Undergrad walei
Prize
plans
COMMENTARY
c
Retirement Investing:
Frank Stronach and Michael Bronner PAGE 39
Approach.
manages
Olympic
your
portfolio
PAGE 18
to
City
business.
MBA turns Bo-
achievements
19
Faculty I h
At Their Best.
nn
PAGE 28
In The News.
dia tap
PAGE 30
for
page 11
BOSTON UNIVERSITY SCHOOL
of
Management
msmba o mmi inment:
Manag 53-358 53-3 mem meni
b
reserve
IT.
make Foi
Hall.
councilman. PAGE
Undergrads recognized
page 25
Outsourcing
reap rewards
Reflections on Two Builders and Leaders.
A New
Mr. Ross Goes
PAGE 10
What
PAGE 35
master venture
Professor Bodie rearranges
Business Plan
Winners.
they go?
become?
PAGE 20
FACULTY
Doing Well, Doing Good. MBA manages
they
PAGE 14
PAGE 8
are
did
the Green.
harles Lax,
i
generation of
next
Where did
12
Leaders.
PAGE 33
Classnotes.
FEATURE Driving
Building Leadership
Sigma.
our
exp
i
2001
daTS
BLJJ
ILlBfS^J Boston
John
Cycles.
University Deal Fellow Alumni and
R. Sillier
We
Jon Westling Dennis
Out the
Riding
entitled
faculty
Berke)
School of
Friends,
present this eighteenth issue of the Schools magazine the second Builders and Leaders The new title is consistent with the passion ol the School's
are
pleased
and stall for
to
preparing
our
students
This issues
Management
build and to lead,
to
cover
builder and leader As
not
simply
subject. Charles Lax (SMG '82) a prominent venture capitalist,
manage.
is
just such
he
helping introducing new
launch
Michael E. Lawson
technologies, providing new products and services, and creating new jobs. You'll enjoy reading his insights about contemporary,
technology-affected
Heineke
Janelle
But modern
are
a
is
Louis E. Latail
a
host ol innovative businesses which
to
business.
technology notwithstanding,
the United States
a experiencing the first economic contraction in a decade reminder that the laws ol economics are alive and well. Business
is
Martin Carter
cycles
R CENTER
Jennifer
Lawrence
Procopio
D1RE(
Ruth A.
and future
Gallagher
economic
recession" that Eileen Seman
There
Builders and Leaders HER
Louis E. Lataif
normally
follows
a
be shorter and shallower because the
pullback
in consumer
number ol research initiatives
spending
The School
DiCocco our
underway at the School (several of them technology on present and future busint
continues to
Undergraduate Programs
prominence In this issue, you'll enjoy reading about progress and the Leadership Institute program lor training
gain
in
owe much to our alumni and friends who provide support in multiple read here about a number of alumni making a will You positive difference in their ways, world We delight in their stones and in bringing the school to you through these pages
executives. We
Matthew Bellico
Baird
Zvi Bodie
Carol Hoopes ( hi llvon Lee Willa Mueller I
(
Boston
fi*
Lindcsign
cn^~
University
I ouis 1
Photo Services Matthew Bellico
John
Dean
DiCocco
raig MacCormack Andrea Raynor (
(
ordially,
ileen Seman
David Linde,
ovenKalman Zaharsky,
2 Builders
inventory
should be minimized.
nonproht organizations, and healthcare institutions. There is so much more to learn; we are proud that our faculty scholars are aggressively pursuing their research agendas. That ambi tious research keeps our curricula fresh and relevant.
EDITOR
Lloyd
are a
contractions to
described herein) which address the effects ol
Allison P. Lurey
John
inevitable.
Digital technology has, however, provided some fundamental business changes For example, computer technology facilitates much better management ol inventories mow called supply chain management"). At present, aggregate inventories in the U.S. as a per cent of sales are about 20/o lower than for the previous 40 years. So I, for one. expect this
RAM
Sandra
remain
BUPS
Latai
595commonwealth
The
Undergrad Program. Tough, Distinctive, Effective.
undergraduate pro gram here is unlike that ol most business
The
ils For
graduates share the
graduate
instance, under
at Boston same
Universit) building as
students. We
ever) student
benefit ol
to
want
get the lull
facility (class computer labs, library,
rooms,
our
meeting rooms), the
proximity
to
faculty
same
and
administration, and the benefit ol
being part ol a united -I all working toward
same
goal
the
ol management
at every level. The program was recently ranked by ( 'S News c~ World
excellence
among the nation's top programs We believe
Report
forty
E-Commerce and Marketing and I he I I lie
increasing exposure to the dif ferences here will elevate thai
ranking
sooner
because tional, for
our
the) are inten translate lo advantages students
abroad,
three
new
intro
duced this year Electronic Commerce (an information
lis
third
or
schools, ream
or
elsewhi
Learning
institutionalized
Perhaps unlike
more more k
i
only
lor
is
seeing
more
schools,
loi ihe
an
nn
past five years
the) also exhibit reasingl) prominent
social conscience this the
point? people
pated
in
tinue lo an
have
arrived
at
to some
ol
we
Listen
who have
the
design,
shape the
ongoing basis
con
program
have
a
ver)
undergraduate
program
here
than
more so
MBA programs I've
some seen
on
else-
an
competitive, yet the) re reall) good at working togethei B) the time I gel them [she teach es senior level courses], the) re I think quite sophisticated that's we
due
parti)
have
so
students
partici
and
today?
Strateg) and Melissa Schilling saw Poliq
where sMc. students
incoming students have been steadily
I low
i
business
>
recruiters, we re seeing from Ameri< as rrn ud ompanies And
keep asking
most
importantly,
most
are we
soi ol
We
cur
riculum anyw h
climbing
throughout
are we
has ihe
reputation ol running the
the curriculum Nol
niversity
the credentials ol
semester
or
Where
graduates
toughest undergraduate
Unlike most business
example,
courses were
Honors
Dublin, Lyon,
in
openhagen,
The
business world. For
concluding
summei
a
our
Boston I
lor stuch ing management dur ing
ol
omni.
isful year There are more choices
<
undergraduate cur riculum is undergoing signifi cant advances, both reflecting and anticipating changes in the
ol F-C
Management
am is
rather than
later We believe the cliller-
aw
to
ihe lad that
man) international it
gives people a perspective
much broadei
she adds,
rewarding
is
\\
hat's
reall)
thai, after Leaders 3
commonwealth Some students call it
'management boot camp.' year-long cross-disciplinary introduction to the field that's team-taught by professors from diverse disciplines. It's
a
graduation,
alter
for
months
out
six
call
been
they've
and say some they'll thing like, Wow. my boss was so
me
I knew how to
impressed
do [this
that task]
or
Or
that
the
was
McKmsey
schools. SMG
undergraduates
management studies m the first semester of freshman
begin
fact, they're
year In into
Management boot
svstem.
as a
Some students call ment
thrown
cauldron with SM 121-
a
\22.
it
"manage
Its
camp."
a war-
long cross-disciplinary duction
to
intro
the held that's
they they know
as
in some
Sandra
Procopio,
dean for the
they
year,
micro-
much
as
undergraduate
sophomore
the
teams
them bv
decision-making,
vidual and
If
team
eco
intro
performing teams learn how put personality-based prob
SM 32 i, the
1)
-tied
(aka
(. ore
mester ol
courses in
four
market
ing, finance, operations
in Lisbon
McKinsey
Prolessor Peter Arnold of
Several years ago, Brian Corbett one ol our graduates, .
lems aside and
create an
io
"all-
on-the-same-page"
attitude At
the end, thev have
a
strong
a
business It's
a
shame
na/alumnus can't
plan
ness
sound
the
are
terntic The
sharp) and
street
and
alum
the busi
presentations, savs As a group, thi
sentations are
even see
ve
verv
the reasoning well defend
spent a semester themselves, doing
product testing
and
in
in
ihe dorms.
continually refining
then-
under the
By junior year, with these basic tools in hand, the) ah
i
business school, work for
went to
single team member isn't pulling his or her weight, the team must take action High-
lour
i
Europe's top and
a
aris courses.
the
their chosen
both indi
behavior, and several liberal
Cross-Functional
n
i
strateg)
and lill in
performance
tutelage ol ,i plan team ol demanding highlv
to
required
knowl
strength
challenging
law, organizan
then "Heated
pnhcy
in a
company like that Then she got her MBA from INSEAD,
and per on
research and
mting, statisiic.il and to
a
course
responsi
That's unheard of
and bal
gender,
based
are
ed Thev
will have taken
and macroeconomj
duction
dents have
stu
operations management asks:
crucial
is a
Grades
ideas
financial and managerial
nomic
senior vear.
and
performance.
Learning
Procopio
assistant
program By the end ol
In their
wuli
I
ceived functional
ing
schools, says
|umors
bility.
account
aspect ol the Core (as well as manv other courses) The fac
finish freshman
W hen
proje<
the intent.
months she had
six
direct client
grasp ol creating and launch
team-taught by prof* from diverse disciplines year,
Teams drive
edge, nationality,
business
most
U
and within
concentration
ances
interview.'"
Unlike
pletely
hung
to
intense, com
an
team-based
ulty picks
most
important part ol my
plan
market Its
Team
Thank goodness you laught us that strategic analysis tech
nique
business
nuts to
or so.
their plans into real businesses, although thai convert
and
professors
High-performing teams learn how to put personality-based problems aside and create an "all-on-the-same-page" attitude. At the end, they have a strong grasp of launching a business.
"
Win does General Electric a
sponsoi A
defining
i
course.
than an) other, this course probably defines the More
SMG program and seis u apan from all others I he best plans ea<
h lall semestei from s\H2 3
are
nominated lor ihe schools
here
entei
or
'
ihe
h) does AT&T product develop w
challenge"
ment
mitted
io
lence and
I In
)
n
com ex<
high qualit)
work
P. mlctt (,
and
at
onsulting
impressed
managers
el
came
sin
w
management they want closer
to our
went to
Putnam, Haves, and
learn 1 earning
1 he
his next vear,
back and hired I he
more
following
anied lour
thev
two vear.
thev
SMG
grads
"I've had recruiters
come
more
"
information systems lis the most
demanding
their lour years
semestei ol
I he
object is io conceive consumer prod uct and develop a soup-toa
4 Builders
dents I li.
AT&T Pes! Case Scenario i
ompetition,
which
are in
the finals ol ihe follow ing
semester A lew teams
actually
two
examples
woman
\ I
professor provides We had
who went
Kearnev
in
lo
one
work lor
Dusseldorf,
here
to
hire
undergrads
to
complement the MBAs thev hiring from other schools.' Arnold
s.iv-.
re
SMGnews
All this, and Honors Finance and Economu
too.
Prolessor Michael
Salinger Management
heads up the Honors Program, to which the
top
percent ol each
ten
but
motivated
did
marketing
startup software
a
company There ries like these
for the better.
and
sense
both in out ol
There
class One ol
students
first
was
was
little
connection
between classes his
sor was
or
together,
each pi her own island
we
teach here is hard to teach-it
requires what most schools won't force themselves to do, and that's
organizations will need
courses
disi
iplines,
we
produce
Four main
goals
mam
stu
dents who would commit
to
management. That a good dose in the
learning
required freshman
vear
II
much
lose
not
interdepend
functions.
ol
3.
communicate and collaborate
with major corpora startups from
and institutes,
and
tions
us to
lor
Thais whv
it
we were
among the first to initiate gen uine teaming skills (not simply group work). And whv
started
time
2. Teach ihe ence
working
plan
meant
could transfer out and
centers
anticipate change early, and
student
a
manv
research
around the world, enable
for management, didn't like it. he or she
wasn't
the
in
we
without
adjust accordingly,
target. The Schools
goals.
Identification of
1
and
future,
near term
undermining our academic discipline Its always a moving
graduates."
Arnold sued lour
or
"We've learned overall that what
designed across
could leach heller, and
about twelve
ago. the faculty had a things could be better
-
that
team
heiier
redesigned
they're highly they're active
sto
are manv
When ihe curriculum
all
our
vear
Changing
incoming freshman class is invited "They're diverse in interests,
freshman
studies lor
-
such
we
placing emphasis on information tech nology and that was a dozen
Adding TQM concepts important, particularly basing decisions upon reliable
years ago
data We had
good
an
was
across
departments."
% #-
teach how
to
gather, interpret, and then upon the data
act
4.
ethics
Adding
dimension of
a
black-and-white,
they
ellecls lor individu
ripple
als, communities, and
The future is in
even
nations.
hands.
Assistant Dean
the
Manv business decisions
are nol
have
to
next
learning
122. The
was
faculty
SM 121-
built
it out
from there. There
was no
formalized pro
gression other than
oncurrently,
t
ge
in
the air
I here
tions
require
for each concentration
ments
was
there
was
live
vears
in
corpora talk ol Halter
organizations Hie infiltration of personal computers was changing loial
the office
landscape
learned overall that what
n
is
we
teach
to
most
seem more
ly saw) technology
They're
schools
force themselves
c|iialuv
of
Procopio
notes.
raised the
we
to
been m
a
dramatic
600, iberes
change
the classroom and
sessions
barrier
Language
me.
that
all these work
facult)
a
courses.
together
huge difference
isnt
the
"Another change that
do,
depart
both
m team
u once was
continues,
ments, In
our
"Ever since
collaborate ihe
ol
minimum
really pleases
across
certain
m terms
and that's communicate and
thai makes
Qualit) Management
hard
what
requires
won i
ago
more
TOEFL level to
Arnold concludes "We've teach here
The
incoming international stu dents has definitely risen, too.
was
essential. The first result
different
students
savs
man
focused and prepared than
The Team
generation ol
agers will be newer
Procopio
ing
more
is
people concerned
about social more
Procopio we re see
Ihev
issues
interested
m
re
service,
in
"
did
an
internship
at
the
Federal Reserve Bank
in
(TQM1
York, Then, going in a com pletely different direction, he did
an
internship
shop ing study a
in an
help
the
owner
improve his operations We have a woman who in her
taught
graduates
here
served
the earlv
on
We
auto
management consultto
Arnold has
New
lor
was a mantra
since
thought
main
under
1987, .ind
have
united whole
planning ll
we
could
where we'd
communication
frequent departments,
between
die end
volunteering,
I he curriculum
coniinii-
allv evolves Over ihe
vears.
and
making
a
difference in the life ol their
communit) ["hats
a
good
sign
"
belter structure the curriculum as a
m
and
a
courses
have been added,
deleted, A
or
i in lie
drastically
ulum
lor all ol
us
altered
is never
Im
http://manaqement.bu.edu/upo
plied,
says Senior Associate Dean Mike I aw son We keep
looking
ahead
at
what skills Leaders 5
commonwealth
Team TLO
S\ Wl
Chemistry.
Workshop Builds Skills.
Foundation
i
I
On
the
February 10,
Community
involves all sections of the
atnum was an
Schools
epicen and pro-
of
organizational holds
their
team
or
feedback about the
tern as
success was
diverse groups of people. We involved the outside communi
ty, members of every class from freshmen to seniors, and the The
faculty." to
be
relay
workshop proved
an innovative
vehicle
the TLOs
to
objective, evaluating dynamics, through a
com-
municating and team senes
of lectures and breakout
The
to be
vehicle to
relay the TLO's objective, com municating and evalu ating team dynamics, through a series of lecture and breakout
sessions. GoTradeSeafood.com, and
Aldrey, ol Razorlish,
Raul
The guest speakers includ ed seasoned business profes
discussed motivation and lead
entrepreneurs, and students. Their success and var new
ership
in an
Internet events
Inc.,
entrepreneurial speakers
were
award-winning SM $2
a
Team of Fall 2000 The group d how communication.
standing about the role team work plays in different business venues.
Product
Victor
Gerdes, Senioi
Manager
at Parametric
Technologies Co., spoke about leadership and cross-functional ity
in
a
hightech
Mario Pani 6 Builders
environment.
(GSM 00) of
organization, it
i
and
ailed SMG
dally
l
team
!> I
dv
a
nam-
students, espe
hose who would h
breakout
session,
which the student
during
teams
to
were
enroll lor the
sponsored by Learning, founded by stu
event
the TLO
was
dents
1998
in
to create
tunities to
establish
and
The
trust.
oppor
unity
team
Dynamic
Team
with at least three members of
Management Workshop fulfills
their actual academic teams,
this
the
them
exercises not
only provided
the opportunity lor students
to
objective,
and also allows what thev
to exercise
learn inside then classes
evaluate their contributions to
ungraded atmosphere
their group, u allowed them to observe and improve then
on ns
dynamics. One activit) required participants to com plete the escape scene ol a teams
oiilv the
movie,
preceding
certain props
entering the same course Each lecture was followed
by
required
Bond-type the
ied
backgrounds gave students broadened sense of under
Because thev
activities
I he
environment
final
participated in problem-solving
innovative
an
learnm.
team
well
the Center for Team
workshop proved
sessions.
sionals,
undergraduate survey evaluate students'
School's
ihe
the cooper ation and coordination of event's
and distnbute
an
to
According to TLO president Jose Almirall (SMG in
student academic
teams,
to
expenence.
cntical factor
Boston
University's Sargent Camp in New Hampshire They proide group counseling
chem
istry, filled the SMG atnum participate in the day-long
a
regular
events at
by the School's Team Learning Organization (TLO). Nearly 120 students. to test
behav
classes, and
ior
coordinated
eager
which
Sei
School of Management
creativity ductivtty The event was the first Dynamic Team Management Workshop, ter
arrange OB
to
lenged the
Ihe
teams
given
events session
and chal
creative and
initial
says
lis
critical that students
be better
prepared
withm
the
SMG, students have
opportunity
interviews is
a
addition
workshop, the rates
work, but ihe
one
with the
to
the
II O
recent
collabo
Starlight
manv
skill that
brought
is
in
up the abilitv to
interrelate and work with other
people Knowing In
learn
to
skills and tools from class
their
ment
lor work
outside ol school because
consistentlv
to
the organ
plans to hold the Workshop annuall) Almirall ization
strategic thinking, and gave them the opportunit) to gauge
adaptabilit) and response predetermined environ
success,
m an
Based
ol
the
effective learning
prerequisite ls a
dynamics
is a
kev
lor real compe
leader''
SMGnews
Quarter Century, Full PNP MBA
in
Back
Leadership. Program Celebrates 25th. "Today, in order for a nonprofit to survive,
1975, disco and
polyester jumpsuits were big. They're gone now
But
it's necessary to an
things never go out ol style, like establishing com panies that place service ahead of profit and create value beyond their stock pnce. On some
organization
like
a
our
students
Nonprofit
MBA
MBA
marked its
Program (PNP) the
conference, "Civic Is There
Urban .Allan-
twenty-fifth
anniversary with
special Leadership:
business and
and
,n 1
Mass Boston;
Jyothi Nagraj,
Director ol
City
Executive
Year Rhode-
able
like
business and
a
their MBA
dialogue among and business leaders and cele
Sally Locke, ihe program's assistant director. "Within the
brate the
CareGroup,
spark a today's public way
program's
to
social
in, the
President lor External Affairs at
joined the Moderated by 1 larry
panel addressed topics such as political service,
group.
social entrepreneunsm, and venture philanthropy The
President of The
panel
Director of the Center lor
the
Kennedy
Government
at
University;
Hubie lones.
the Chancellor for
special
time
are i ui
rendy
and organizations
the government,
some
compa across
nonprofit,
and
sectors, including the United Nations, The World
for-profit
of the PNP program.
cross-sectional
Bank, Oxlam America, EMC
Corp.,
and the American
Ballei rheatet
deliverable
a
a mean
business
strategy and
implementation gained experience by applying and students
plan
dents how the three
anniversary committee.
sectors,
and private,
interrelate and support
situations
savs
an or
MBA 1 ink
|ennifer Meyer
event
gave the
fields Future leaders
internship in either nonprofit organiza
problem-solving
a
shot
at
and
taught that good civic leadership with in a community is vital After the panel discussion. the
distinguished
Award
Day, spon
real
to
02\ co-chanol the PNP
Club "The
and encourages team-
al Bl
their strategic thinking
(GSM
one
another
requires a public
Gina Perille COD, left, and Frey COD of the 25th
Jeanne
our stu
based consulting pto|ects One su< h project was the first annu
nies
Thieleman, former directors
a
degree and, since Us inception, 500 graduates have d through the program
They currently ol the most prestigious
compa
with
lo
Hon
work for
nonprofit awav
savs
pursuing their PNP MBA
over
From left, Alice Gray, Sally Locke, and Stephanie
background,"
I lie PNP program also
80 lull- and part-
students
ol
more
attendance
Nearly
to
public, nonproht,
students, and community lead
Harvard
able
approach, leaching
faculty, administrators,
ers m
Assistant
to
College-
Board, the panel later opened SMG
school ol at
Senior Advisor to the
the floor to questions from
featured Ira Jackson,
Business and Government
Spenee,
are
last five years PNP has tried design our courses lo take
also
the
walked
were verv
our stu
McGovern, Executive Vice
as a
tangible; nies
member.
faculty
do that with
State Senator Patricia
Viewed
SMG
"Today, in order for a non proht to survive it's necessary to run an organization more dents
Crisi
an
business leader.
"The benehts
added
background."
Island Former Massachusetts
a
a
ingful
to do that with their
March 30, the Public and
and
run
more
are
dents,
was
lohn Russell
given to
Kristen
sored bv the Public and
Mc( ormack
(GSM '92)
Nonproht Management Student ( lub On April 20. students, communit) members,
Named alter
one
and
who contributes to the betterment ol profession, com
help
professionals gathered
to
improve three Boslon-arca
nonprofits paired
was
group
Each organization a consultant
wuh
consisting ol
PNP stu
programs
ol the PNP
founders, the
inually
given to
an
award alum
nus
munity,
and the program.
http://manaqement.bu.edu/qpo/pm Leaders 7
commonwealth
MBA
Applications
Jump 22%. Program's Popularity Grows.
GSM
graduate
The
admis
sions team was over
whelmed this spring and loved it. Applications for our
2001 MBA programs by 22%. Applications
increased
for all the
masters
programs,
including MBA, MS'MBA, MS in Information Systems (.MSIS), and MS
in
Investment
Management (MSIM), increased
group by 18%. a number of
as a
We think
factors influenced what this
hap
says Dawn ( rail 'lo. director of MBA acting admissions. "First ol all, we're
pened
year,"
starting to get some recognition in the rankings, although we believe thev still
wide
lag reality by
a
margin Second, the new is striking a
MS'MBA program
what
nerve in
people really
(The MS'MBA offers
want
two
an Ms
degrees simultaneously, in Information Systems plus a classic Boston University MBA, all
the
in
earn a
takes to
same time it
lull-lime MBA
alone.)
Third, people have heard how
"We're
starting to get recognition in the rank ings, the new MS'MBA program is striking a nerve, and people have
lor
our
was a
graduates." -up
University
("I hen-
for Boston
MBA salaries in
jumped last
we can
me. ins
sele< ti
be (
incoming GMAT Hackly the i
8 Builders
increasingly
ialolo,
about the program. Team I earning11*, the research initiaie.il
have here Most io v mi
lie words I
fat ililv
people
and sit-in
are verv
quality
ol
expect
oul
also
really
been
crammed into the
charges
working ol
personal
in
what we're
and
corporate sponsors who strongly believe
doing
Within these groups there
re
building
was a
parti( ularly
aggressive lew
m
Public and
marked
applications for the Nonprofit Manage
I he programs assistant director, Sail) 1 ocke, ment
MBA
back
as a wav
success
todav
the world
to
see our
program
ol enhancing their both wavs
keep
on
School We
eve on
re on a
this run.
great
Shanghai Express. As
we
go to press, the
new
International
Management Program-China has gotten off to
a
class of will in
fast start. The first
approximately
begin
come
of 35
their MBA studies
Shanghai
and those
this summer,
continuing
on
will
to the Boston
University
a
as
we n
haul to gel that hlth i overed b\ a number
on an
with ImaiH ial aid the past
But
people
well .And thev
and that
means an extra semestei s
tuition
hey're
thing
to
ol social
seeing thev can have vr and give some
OUl \
an extra semes
time schedule
semestei
impressed facult)
bv this
requires
increase
'We've
ting
example,
we
who
our
and students And thev knocked
we
Another factor is finances,
past five
1
same
"Our
sco
needs among
I oi
increase
awareness
director for financial aid
ters work
out
Iter
school," says la Vang, assistant
salaries
year for graduates."
attributes the
with any
gram
MBA class
larger application pool
so we can com
equitably
heard how much
with the "A
well,
more
pete
strongest applicants to be look ing at the MS'MBA that pro
much salaries increased List ve.it
as
years
campus this fall.
SMGnews
Doing Well. Doing Good Health Care MBA Manages Both.
from politicians
Everyone to
patients
trying
to
decipher
United States health
grams, and the
currentl)
are
capital
the
care svs
are
and Arthur Andersen spon sored "Doing Good While
Doing panel
discussion that
ined the care
system
exam
The discussion
of
education into the health
[ohn O'Brien, ambndge Health
Alliance: Robert Restuo Executive Director ol Health
for All; and Ellen Zane, Network President ol Partners There
forces,
such
are as
large external
tion,
placing extraordinary
insurers,
health
the margins ol hospitals, and other
providers, savs Shawn Farrell, alumni a ation president. These forces care
service
and who has
it. The
bottom line
is
care
access
to
context,
so
and health service ancc
delivery."
these influences and still
medical
tion's
mission
management programs and currentl) tanked twelfth in the mi '
and financial
goals, the development ol community-based health pro
care
leading health
S News & World
recent
(
Report
survev
http://management.bu.edu/qpo/hc
I he discussion consisted
on
eventual!)
care
Management Program is rec ognized as one ol the nation-
ol opening comments from the panelists, a question and
competi
affect health
first-class MBA
students emerge with a better understanding of the interplay between business principles
the govern
and market
pressure
weaves a
provide- the highest quality
Inc.
ment
was part lecture series
AACSB, the Health Care
Life Sciences,
System,
ongoing
both the ACEHSA and
panel "The curriculum
HealthCare
an
concerning the health man agement held Accredited by
Partner at Schroder Ventures
C
care
interplay between principles and health delivery,' savs Farrell.
service
included Eugene Hill. General
CEO ol the
first-class MBA edu
into the health
business
Director Al discussion
ol life. The
the delicate
undergoing, and the profes sion's options for upholding quality medical service. Moderated by HCM Program Cohen, the
quality
context, so students emerge with a better understanding ol
currently
is
improve
cation
the US health
strain
medical
weaves a
Well in Health Care
a
venture-
are
Management (.HCM) Program Alumni Association (
ol
familiar and intrigu topics for alumni and students. ing The programs curriculum
On March 28. the Health
tem
use
develop high cost technologies that
to
to
bal-
answer
roundtable. and
an
open question period for the nearly seventy students, alum ni,
and health
professionals
attendam Panelists reflected upon vaii.lv
in
a
ol topics, including the
balance between
,\n
organna-
The Health Care panel moderated
by Professor Alan Cohen, center. Leaders 9
commonwealth
Net
Impact Case Competition.
A Banker's It's 1984. A
CEO is
new
to take the reins of
ing
Getting Down
Quandary.
national bank with
com
Business.
a
history
a
of generous local institution
philanthropy. But the
al
new
CEO has been pressed to find
his
and
organization
petitive
are
pressures
dollar. Does
the bank have
responsibili
a
back to the
ty to give munity? If
com
so, what criteria
use
in
making
donations? What
such
were
Thev
Management gist of
tackled
by fifteen
the MBA
judges a
Net
University
and Allen and EMC
gold
Danielle Brandt
on
in
case
responding
March
On
22,
re-presented
$5000
group of nine- to fourteen-
synopsis of
opening
the
case as
to the finals.
the
a
and Vick Vaishnavi.
switching capabilities
a
grid ol carbon
"nan-
are a
fairl) ol
i at
resembling rolled-up hue and
soot
phase
I heii
strength,
are
found in
lightness, conducting
technologies People will SEN to meet new people
assembling
multi-layered grid
ol
otubes and silicon
wires
will
store
a
nan
OP
\-\I will
software solutions for
with
experience thai
foi the burgeoning
socializing face-to-fa
s
panv
market
optical 1 he com-
solution will offei
telecomm piov iders approxi
matel) 76% savings over internal!) developed self-inte grated solutions 1 he compa s
software
w
ill be devel
using propriciai v algo rithms that will be patented
as
intellectual propert) Third place went to
its customers
is
virtual
a
similar
he sponsors ol each prize presented the awards lust bv Bill Holodnak. | Roben
second bv
^cott,
Andy
Nao, silicon Yallcv Bank.
and third
by
Da\ id Gammell,
Brown. Rudnick, Freed Osr
Gesmer 1 he
judges
Kurlat,
Kurlat
(..ma
harles 1 ax,
Associates,
e
Softbank
apital
v
(GSM 01)
and Richard
who
Social
Propel lies
were
i
Partners.
ohen ol
Associates
that
memor) and per-
to
I
David Berman
developed
and
maintain ongoing relation ships. The service provides
piov Moiling optica] sen ices multi-vendor equipment
oped
properties make them ideal candidates foi new semicon
efforts
place
.\n online networking forum enhanced bv the latest
(SEN)
over
nv
and
involve
provide
networking
wires,
simple laborator) equipment Nanotubes
second
won
Entertainment Network.
a micro
(GSM
ductor materials Current
10 Builders
as
developed
by
Ned Rimer (GSM '95), gave
function
is.
bv Vick Vaishnavi
Don
the Citizens
that
and
and manufactured with
twist when
Schools program founded
form truth table operations a
processor. SA1 Networks
OtubeS and silicon
year's ceremony
year-olds from
Cheryl Ryder,
plan for developing a molec ular switch that oilers storage
Iroin
and Rob Newbold.
a
It's
Engines.
(essentially a 200gigahertz chip) is formed
Joel Janney, Chris Jones,
intriguing
place and $5,000 Cheryl Ryder (GSM
The switch
Bernat, Glen Daraskevich,
This
Dean Lou Lataif with the EMI Business Plan winners,
vastly outpacing those ol the conventional silicon chip.
their
winner's prize went to Bree
an
of SMG fac-
David Berman,
0 1 1 for Carbon
17
polished
panel
tii a
went to
chose four finalist
that afternoon. The
had
evening
three
Tust
following
Friday,
work and then
presentations by
cor
and members of the School's
teams, who
an
uliv members.
judges from local companies faculty
Competition,
plans
to their presen
tation times the
morning.
the
those MPAs who submitted given
were
staggered times
Thursday,
choose
event was
finalists chosen from among
were
sponsors.
The teams the
eventually
winner." The
Plan
ol
Adventis
Chang.
Corporation
did
second annual EMI Business
Impact Case Competition,
organized by
Institute
Director Peter Russo, "but the
teams in the sixth annual
Boston
said
Entrepreneurial
holders? Such is the
all first class
proposals,
the
are
consequences to all stake
case
Competition.
com
squeezing every
should it
EMI Business Plan
cost efficiencies in
more
to
http://manaqement.bu.edu/research_center/emi
e
apital
SMGnews
At Their Best. Undergraduate Student Recognition Awards.
builders and lead
Future
ers, our current were
honored
November 17
at
Undergraduate
students.
on
the Schools
Student
and Awards
Recognition
Ceremony. Of the many hon ored, the following highlights capped the day's celebration: Daniel Krause (SMG '01) won
the Albert Grace Prize,
presented around
to
the best all-
senior
president
student Krause,
of both the SMG
senior class and the School of
Education student council. also received the Scarlet kev
Scholarship. Jacqueline 02
1
Morris
(SMG
received the Charles H.
Palmer
Scholarship, annually to the best
given all-around
junior and established by Phyllis Palmer Thomas in memory of her late husband. The Allen E. Beckwith
Scholarship
was
awarded
sophmores Aarathi Agadi, Molly Bennard, Eric Kaplan, Anjali Ramachandra, S. Christopher Szczerban, and Eli Zybert for their leadership potential and academic per to
formance
as
freshmen in SMG
core courses.
Winners of the AT&T/
SMG 2000 New Product
Challenge for new product and plan development include Jaclyn Anemone, Cora-Leigh Antonowicz, business
Daniel Krause, recipient of the Albert Grace Prize.
Sarah Cruz, Nathaniel Howe.
Barry Klein, Adam Rybczyk, (Yet) Sam. James George and Gregory Tate won the Invest and Paul
ment
Challenge 2000,
market
investmenl
a
stock
contest,
while Robin
Zaragoza received the Wall Street Journal Award for student achievement.
Incoming freshmen
were
"The awards link the
past, present, and future of the School in
great
a
Scholarships Fulmer and
event."
Ryan Mary Schuiz. went to
The Boston
High School Scholarships, given annually to
local students ol academic
also honored. The Boston
excellence,
University National Merit
Nina Chan.
were
awarded
to
Amy Cheung, Peter Chong, Ngan Le, and Thuy Ngan Nguyen. 1 he awards
embody
Jacqueline Morris
won
the
Charles H. Palmer Scholarship.
the
importance ol friendship with in the School community .md giv
ing
back to others and show
students that alumni gave .'I themselves for their benefit, said Marcia Novak,
assistant
director o! universit) steward ship development The awards link ihe past, present, and future in a great event
Senior Dominic
Chipolone, left,
chats with Geannette and Jason Burack (SMG '42).
The recipients shared the with Deans, faculty, par
event Michael Seimman (SMG '94,
grandson)
and Mrs. B. D.
Coyne,
flank Daphne Germaine, the B. D. Coyne Scholar.
ents, and
manv
ol alumni
tributors and their families Leaders 11
commonwealth
DBAs
Dig for New Truths. Doctoral Student Research.
alwavs important
There's
behind-the-scenes work
going on in the School Iodav there are approximate!)
fifty-five
students enrolled in
the School's doctoral (.DBA)
program, each
delving
into
ol
ol management. Each
we'll
issue,
the work
highlight
lew selected DBA students
a
Technology
High-
a
nents are
informal
organizational
which
ture,
consists
relationships ees,
among
struc
ol social
employ
facilitates the sharing and
creation of know I that
h
ledge
different type ol
networks vary in their abilitv to
facilitate knowledge sharing
and
creation,
influences cess.
able
which
turn
successful, entrepre organization "To inves this tigate question, I sent surihe to twenty-one original engineers ol a high-lech, start
is
ol research
on
between social networks and such
social networks and
sharing
first trading dav market over live billion
ed how
indicat
engineers
thev
frequend) sought knowledge
the live different
benefits from the other
m\
mem-
ol their group I'm using ial network methodolog) to
analyze the patterns ol knowl edge sharing Then 111 compare my results with results from similar, prev ious stuck
a
in a
large organizational setting. What
I
expect
to
Imd
is
that
and shar
knowledge ing m entrepreneurial organiza creation
differs from that
ol
large
Bakstran did her under
orga
known about the link
organizational
a
valuation ol
a mn
nizational social networks, lit tle
a
up company that went IPO three vears alter founding, hit
tions
organizational
While theres
body
in
into
live compo shared in similar pat same
neurial
investigating how the
is
sharing
lormed. Bakstran
rrentl) looking whether the
dollars 1 he
Start-l p
Organization. Lynn Bakstran, working in the strategy and pohcv depart ment,
are
patterns
ting
Social Networks in
and distinct
sought,
terns in
a
pecific issue thai might eventually impact the art or science
aie
graduate ol
work
ai
ihe I
Vermont, majoring
Iniversit) in
Previous research reveals that when
iing She has worked at I ligital I quipmenl in sales
ue.
conceptualized
networks and
domain ol large
Small Multinationals in
Global
Competition.
Tatiana Manolova
the strateg) and department, and is interested
live basic informational benefits
in
in
the effects ol
organi
zational success,
working policv
is
global compe-
Recent
or
social networks and
knowledge sharing and creation." on
small
companies
Global competition has h assumed to require companj
attributes posiiivclv associated wiih size, such as market powei, resources, 01 a proprietarv adv, image Therefore
as
the
ex<
corporations developments in
the international business arena,
tition
knowledge is shared in social relationships among members ol large organizations, 12 Builders
global competition has been
i
knowledge
and creation.''
"Little is known about the link between social
.
how
lew
.
hallcngmg
International
liberalization, favorable cal
climate,
tr
politi
advances in inter
national travel and communi
cations, and a global mobilitv ol factors ol production have
brought
down national market
barriers and have made ei
lor small businesses
it
easi-
lo inter-
SMGnews nationalize Small companies.
especially
in the
ogv industries,
technol-
high
increasing!)
need to consider sales to
a
market segment in order to recoup accelerated
global
development
Nol
costs
01
mall and medium-sized
emergence ol small multina
tionals horn
Finally,
some
tvpes of global industries Manalova has a BS in
people
companies active exporters, thev also establish production,
international business horn the
sales, service, R&D or other affiliates abroad, emerging
Bulgaria
instant
multinationals. The for
1997
Organization Cooperation Development synthesis Economic estimated
more
than
and
alone. This number ed
to
grow
235,000
is
expect
continually
>idmg to Manolova, "Companies experiencing
rapid to
internationalization tend
be clustered in several
industries: computers and associated peripherals, soliware,
industrial electronics.
medical
and spechemicals Since small
technology
multinationals
global
enter
Sofia,
fellow. This
inde
start-up.
The "Invisible
in
I)
il
follows that
inherent
industry
unilorm-
some
and competitive charade; favor the entry ol small multi
or
formed
consulting
research
and
I le
nmeni
agem ii
tvpical
business
issues
addressed include
I) promot knowledge sharing m net
works that
i
ross
functional
hierarchical bound. u
IBM-spon
engage
organizations
or
li
product development i; 2) post-merger management and network integration; J) facili new
tating development ol commu nities ol practice. 4) designing organizations to support strate gically important networks.
management Out of these
5) promoting alliance effective
Rob Cross
companies. Cross has organ
ness via
the
working organizational behavior
in
is
he
ment
she
or
for
research question
His primarv is: Does
the
and
mainte
quality,
ol information-
use
based
relationships impact individual performance? Definition
hat
\\
a
sub-group
of
agencies
and
to
means
ing
Cross has
a
BS
busi
in
and government studv social capital
ness
ot improving
University ol Virginia. Previously, he was a manager
companies
creation
and shar
in social networks. "I
administration and
at
Arthur Andersen and
essentiall) leveraged portions from the qualitative part ol my dissertation and have been
successfull)
and testing various
models with organizations
in
an
MBA, both from the
commercial
developing
relationships? the
is
a
lending officer
at
NationsBank This March he
defended his the
sis
and will
on
Commencement Dav
receive
his DBA
and
Henderson Named to Chair. Professor John Henderson, left, ent of the Richard C.
process bv which such rela
tionships develop
zS
social networks.
the
are
Process What
stud) knowledge
knowledge
informational needs
various
nance
turns to
to
ized and leads
department researching the relationships that comprise a person's information environ
mdus-
structural
as a
is an
savs,
lor
College Knowledge-Intensive Work.
mation-based
not
18 months ago
ments
ing
sored group ol over 40 compa nies ,\nd government agencies
numbers, yet
across
other
joined die Institute ledge Management
held company and
pendent
on
databases
on
seeking information ledge-
experience includes managing a cosmetics division ol a state an
reliant
more
than
Cross
salient characteristics ol mfor-
are
hen
know
to
lor know
competition in increasing distributed
w
professional
Her
report
small multinational corpora tions in the OECD countries
often
an-
this group. To date, I've done more than 30 social network
studies and
employed manage organizational knowledge, we continue to find that people
ol emergence ol small multinationals in different
ol l conomics ol
employ
advanced technical
solutions
terns
-i
networks ol
Despite
to
suggest ol the distinctive pat
spective
embedded within
knowledge
industrv per
an
was honored as the first recipi Shipley Management Chair by Richard
Shipley, CEO, Shipley Company.
are
maintained? How
Function
are
such
nationals Hence the research
question guiding
mv
work is
problem
What industrv structural and
I
lour-and-a-hall-veai
competitive forces 'a1 promote and hi impede ihe emer
coming
of small multinationals?"
with
i
Her work has three
intended contributions 1 io
concepts and relation from the industrial
apply
ships
contexts1
started the program
a
from Arthur Ami heaw
fairly
I
background at
the intersection ol
tion
from international business
man)
focused almost
multinational
enterprise. develop a theoreti framework explaining the id,
cal
lo
look
organiza
speuhc knowledge man
research in order
explain
with
technology
emphasis
the emergence ol die small
to
tional behavioi ,\nd informa
organization paradigm and the theories ol the multinational
io
consulting
wanted
agement
on
ik\H
earl)
I
a
felt that
KM initiatives
exclusive!) technolog) .md codified knowledge and missed performance improve ment opportunities from
on
information
Leaders 13
commonwealth
Building Leaders Leadership Institute.
The
s\
fi
l
m
'
utives
i
competition
Increased
experiential brainpower to the
technologies, and multiple alliances of the evolving econo my require fundamen new
els. Leaders wall need
continually
implement
the
to
always applied nothing
abstract We talk
skills and
world
alwavs locus
at
the opportunities lor each executive to discover
approaches and capa they'll need to thrive in
new
bilities
their
new
roles The partici
are executives
pants
from
prominent companies lacing and difficult chal-
compelling
Thev- work with
-
group ol
a
teachers
mastei
select
This collaboration is in
which
ated
by
nies to
thai allows the ment
leading
compa
create an environment
and
quick develop
application
knowledge
ol
It merges the
generating capability demic institutions, 14 Builders
ol
aca
Pitney
Packard, and Giant hood,
ip
prise
such
as
fast-cycle
proht
customer
responsiveness, leading in the new economy, real options. and
driving organizational
transformation. The
founded
1988 k
was
at
leverage
areas
ment,
Institute
the School
in
developed specifi ihe
learnings
corporate partner
and research
ships the
Leadership
ol
tenters
executive
technology
and
in
develop strategic
alliances,
enterprise manage strategic human resources io help propel high and
potential level
in
executives to
ihe
next
their organization.
savs
as
Prolessor l.lovd
Band, institute director, Our
sector
such
as
United
quickly," as a
people
bring speed more savs. helping
up
she
them gam
in areas
as
(
to
companies
executives
non
ment,
strategic needs of the hrm vvtih the learning and knowledge-
as
own
oui
ol experts and
such
Hoopes,
those with their
to
wide arra)
com
highly
companies Bowes, Hewlett
substantial niche in the
from
a
for-profit
well
cally
Leadership
successful
immediate results
learning
collaborates with
is co-cre
to
a -cnsc
ol the enter
whole We
in as
Institute
bring fellows,
Wav and the I
nterprise nki.i! Corporation In addition to our own expertise in the public and nonprofit
where thev work with
Investment
nine
sectors, the diverse group ol
groups
work lor
applica
Associate Director
working together h s knowledge that produces
was
Institute
come
panies
(both
process.
executives
the Institute and
academic and corporate1 who serve as facilitators in the
The
knowledge
from
one
real
on a
spcuhc object
irding
maximize
the
a
a
is
high-impact, fast-cycle learning initiative, designed and tailored to
tion,
strai
new
I aster
Institute
to
economy, how to and quicker. We
choices,
Leadership Boston University
in
concerns,
strategies that meet the chal lenges of our rapidly changin The
learn
ot strai
context
and it's actual
practice,
new
our
ing partnershipaddress leadership
old assump
test
tions, and discover, and
"In any ol
business mod
new
a
tual and
speed, globalization,
tally
brings
wide range of concep
months We have
developed,
a mix
ol small
as we
as
us a
for frame
which allows
working bioadei
SMGnews opportunities for learning from
high
level
fully
select
executives a
person's leadership capabilities
We
npanies
group ol diverse
advance have
companies which intcntionallv broadens every participants
attention
exposure to new ideas. "In addition to group
us
integral
to running
us.
the Bronner E-
lor learn
Development
education format. Eni Hewlett Packard
we
on-one
one-
in their corporation.
We also
provide
a
communica
works with each individual presence, which often enables the executive
to a
higher
created to
manufacturer to
Hoopcs, "After working Eda,
Institute, and the Svsiems
tioned
Institute
can
also
as
on a
greater executive
more
clearly,
and be
more
con-
hdenl ol connecting with oth all levels. This is particu
important as executives move to broader roles within
Internet. NBC's creation of
tion isn't
NBC Interactive (NBCi) blends
find the answers-but whether
Lynch, and Fidelity have rein
discover. It goes
vented themselves in the
gle university
tumultuous financial services
pany. It calls for collaboration
expertise ot
Centers a
tap the
number ol the
senior
faculty,
extensive
of
manv-
Institute has up
market
forty
by leveraging the
This is not
ing. Whole els
to
regular basis leading edge issues
meet on a
discuss
One of the
examples
ol the
partnerships Leadership Institute on
the is
(increasing
mobility implications.
communi
and its broad
on
specific pro gram for a particular vice pres ident who may need morework in a particular area, customize a verv-
Hoopes includes utive
continues. This
working
with
often
an exec
coach within the individ
ual's corporation who has done an extensive assessment ol the
such contacts led to the
ol
our new
Institute
Leading in the Dynamic conomy (See sidebai I
is
a
embedded in
doing
working
with
with the Institute may send executive, several m
sequence, or a group at a lime Since each compan) has differ a
executive
different skill set, the
set of advanced
has to customize
generally program
a
to
best
help the
pany and individual
that will
meet
most
a
com
the
bene
Other business schools
1 1
research
university, the
School
ol Management has several, all the better foi concentrating
luepower
on
specific
companies
the Institute.
to conduct research and
applied projects
within the
corporations. The working
function-
continually advancing
state of
knowledge
reflecting
on
learned. A
what
they've
faculty
core
the
and
mem
ber will lead each group.
al
areas m
depth
At the
Baird,
Because
time,
savs
look
.moss
we
to
we
all the functions.
bring a cross-discipliapproach lew could hope
match This
partnership on
same
can
narv
ma) have one or two research centers, but .is part ol a
one
has
models,
concepts, and approaches by
working
from
They'll combine the expertise
year,
new
specific
groups will meet 3-4 times per
The charter at BUILDE is
fit both
I lent companies
ways of
business.
objectives
needs, and each
new
come
sponsoring
on
The participants
areas.
scholar, and corporate leaders the
the wealth creator's list
I
ent
options). rapid ascent to
reflection of the potential
lor
(.
panies focused
of academic researchers,
real
to co-create the
becomes critical
creation
the power of finan
through
top of a
corporate needs clearly helps the School identify trends early
we can
tion
single
com
by working groups composed of eight to ten com
will
as
sin
a
The research agenda will
ing), changes in governance (ownership to relationships), well
beyond
or a
be driven
topic
Microsoft's
the work with ihe Lucent
cations
returns
cial instruments (securitiza
draws
orporation thai has lunded major research initiative to the topic ol
rec
to scale rather than decreas
as
cor
which
collabora
consultants, and corporations.
business mod
the shift in economic
rationale to
i
al
fine-tun
mere
a
between academic institutions,
needed-those that
are
ognize
most recent
School's
new
establish
think tanks, research centers,
mem
ber corporations with which
the)
Express, Merrill
power of the Internet.
relation
nates, peers, and bos; toward a common goal so
we can
The Schools
organization ability to rally others (subordi
"We're set up
whether
just
tive network that continues to
The potent combination ol academic excellence and
where the
the
it
The ques
we can
ers at
larly
over.
American
porate
presence which enables them to articulate their objectives
and
over
get it
get
television with the Web.
executives not
more
take
right
to those who
put together specihc expertise to address an executives needs.
to
only speak effectively, thev literally
the airline of the
realm
a
but to those who
with corporations In addition, each Center or
with
Success in such
right,
ships
to
today's environment.
a
Express is reposi
'
According
and
Federal
'Is
level within the
organization
the core principles practices for leading in
uncover
transformations.
a
economy. We will discover and
Human Resources Policv
who have
effectively
study those
validity
dynamic
come
on
executive
communicate more
Dynamic Economy (BUILDE) was
their
reassess
won't
coach, Eda Roth, who
tions
blind faith in established theo
and relevance of this
Westinghouse morphed
Roundtable.
questions. We will suspend ries and
in the
Leading
new
kinds of
new
Institute for
from
Research Center, the
work with them
leading
com
and
questions
media and broadcast leader.
Leadership work,
Hatchery, Learning,
Institute, Executive
the classic executive
equal
knowledge by asking
panies. The Boston University
Entrepreneurial Management
The program clearly above
within
underway
the School ol
Business Center and v enter
entrants. It is
new
We will pursue
companies.
economy" is not just
ly about the transformation
including
releasing the essence of Leadership in all of
about
Managements other centers,
a
unique formula for
stands
The "new
business
in
Professor Lloyd Baird
by
an)
University Institute for the Dynamic Economy.
The Boston
Leading
devel
Baird "In fact
savs
opment,
to
more
pa)
leadership
to
Through The Institute is
to
thai want
is
all about
We deliver \\e.\d
what the companv and the
person ne< hand savs he current
issues
sees
three
and three future
developments that clients
want
Leaders 15
commonwealth While
ing
learning what
it takes to succeed in
dynamic economy is critically important, the real challenge is
evolving
to
are no
be seeded and
into
a
whole
set
new
increasing!) adaptable aligned with suppli
unlearning and learning should be cultivated by engaging
ers, clients, and pari nets
Leader will become
d says
The
teacher,'
svsiems
thinking
require the integration
alliances Thus
growth
will be the
change
leaders in the process of discovery, experi
not
and
source
of
advantage. people industry research we
competitive
"Because of the
and the
mentation, and
application. DlRIi
can
tap, we're
two
vears
always
about
address First, companies todav are looking at people as
to
their competitive advantage. This is nothing new, but issues out
of this so-called
leadership
to
be up
have
a
will win the
battle
to
date
but
our
that everyone understand how and capture value Second, there's a push for
tionships to happens on We
dard7 What
A les
re
an
basis
what's
irch demand results
isn't learned until behav
will
services
it
provide1 What do want7
consumers
Professor Nalin Kulatilaka of the
finance and
economis
The data
on.
tries, among others
tackling questions is
shaky,
marketing to
lies Initiative, he heads
ility
a
$10 million research program that is examining the business ol the mobile-
potential
Internet. Funded
by
Technologies (which
$5
gave
Currentlv.
carrier
on wire
cai
particular!) researcherfriendly That is. their usage
aren't
data,
places
ent
data, and lo
billing
data lend
lion
Lucent
messages
biggest hurdle, howin rinding the right
The
As director ol the Global
to test
less devk
the least. But the prizi
sav
that this into
ill the
immei
on-going
wired
w
next
stan
look like-
technology what
head
we
totally happening around the globe ( ompanies funding our
to create
the
these and related
Centers.
insure
to create
wireless Internet
lartment
built in mechanism
through
Where
Institutes, and corporate rela
demand
effectiveness
application, says Band "Other schools trust profi
wireless
is
headed? Who
ahead of the tradi
tional process ol translating research into knowledge and
(PRI
Mobile Internet Initiative.
more
within the corporation, but across partnerships and
The
son
be
and
will
experienced.
arising "little I
Wireless. So Far It's Clueless.
are
ol pressures Along with effec tiveness, companies will have
longer valid and accomplishing the un-learning of them. This can't be taught; it to
go away But thev
to
uncovering the models, behaviors, and assump
has
thinking. No one expects these
this
tions that
develop sys
executives
tems
to
be
differ
m
Plus
kulatilaka.
We have
to
guess
"
ior has
there's
million to the School ol
changed Third, call lor
a constant
help-
Management
E-Day 2001. Students
begin
Economy"
session of
about electronic
E-Day,
commerce.
"Financing
In The New
where speakers shared wisdom
and $2.5 million
on
each to INS1 AD and 1 ondon
use it
to
School ol Business1, Kulatilaka
tial
to
colleagues
predict
are
consumer
behaviors
with results thai will reach
kulaiilakas hist creating
where
consume)
lab.
keters
conduct
can
challenge
reliable mobile
a
controlled studies
mar
e it
they'll has
sign up lor
a cost
coming
Ihe
hoping
leant is
ol travel and
to remove
as
enlisting
possible die
help
financial indus
ask
feature
X
si
it
we
hopes
\o
results bv mid-
fall Well check back I
know
when it
attach
kulatilaka
user
professor
is
d like
its
project
can
experiment, how do
his In
variables
the)
We
to
when thev aren't paving lor it vet. ot trying it out live in an
identities will he shielded from ihe experimenters, the as manv
is
to
says kulatilaka, but
"i
carefully
medical model where
difficult
actual usage
Using
a
order
simulate other poten
extreme!)
oi
m
hi top ol all tin-,
*
into the multi-billions foi the
is
target,
offerings
living
w mners
16 Builders
technolog) platform
most
and his
to take seats for the
which
issue
have to
late
in a
ol Builders and
eadi www.lucent.com
SMGnews
Expert Testimony. Speakers Explore Business Today.
A
diverse group ol lead ing professionals and
academics
School ol
the
spoke
the
at
Management during
semester
shared their
The
speakers insight in a vari
ety ol settings, from the class room to special events, includ
ing the Marketing Depart ments Distinguished Speaker
David Silk (GSM '94), managing director at Korn/ and member of the 1980
Ferry
US Gold Medal addressed gies at
the
Hockey team, networking strate c
areer
( enters invi
tation. The former star Terrier
spoke to graduate students on Januarv- 18 and undergradu
A student,
6
ates on
Februarj
Simon
Garfinkel, due! scien
left, poses
a
question to David Silk, right,
while Professor Ted Chadwick looks
on.
Series and the Healthcare
Management and
Polic)
Programs lectures. Bernie
MarketSpace, issues facing his
discussed industrv with
Patrick Kaufmann's Marketing class
on
Space
April
recent
with h-
and CTO
Sandstorm
appeared
spoke
i
at
prises,
to
Jesper
fohansson's Information Systems class on February Garfinkel discussed
w
as
part of the
(. areer
enter's ongoing Lunch Series nh top business executives
cussed the latest develop in on-line
purchasing possible determinants to gauge consumer bu) ments
and
habits on-line.
26
seeuntv
Jody
6. Market-
Hoffer Gittell, entrepre neurial And serv
Monitor compa
is a
changes
in the compan) Ehrlickman
Jaworski. co-founder
ol
IBM and
tist at Broadband2-W ireless
ice
ny that uses technology and new media to create
management
prolessor
David Russo.
president d unique approaches human
at
executive vice
ol BuilclNel. dis-
resources
Harvard Business
Foulkes
Beha\ ioi
Organizational March 29
new
businesses and busi
School,
ness
opportunities
coordination
On
mechanisms.
Comeau, executive
relational coordi
dent ol Human Resources
25, the
On
Marketing April Departments Distinguished speaker series continued
nation
the Amos Tuck
ge Keller discussed the effects of ingredient branding on
exlcndibility
uon
security
scientist
at
oration discussed ntv
the
m
incident response, while Ramsey Key. senioi informa
m Windows March 12
host brand Also
Mitre seeu
Peter S. Fader ol
held
on
concerns
May
L>
Februarj 6 students and facult) sponsored bv the
lacing
talk
to
I leak Ik
are
his
Rich
Dawn
Ehrlickman,
presi Propert) Licensing, IBM, spoke vice
dent for Inielleelual and
with students
lass
si, m
Stn el (
on
22. Sue vice
presi
orporation,
about how her compadeals with employee priva-
spoke nv cv
issues
nolog)
in
and the
the
use
ol tech-
workplace-
Management
Program (acobucci, marketing
profi
the Wharton School, University ol Pennsylvania, addressed
groups
t
Februarj
2000 on
Associate Prolessoi ol
Marketing
care
1 lei
school ol Business. Dartmouth
strategies
provider
Jody Hoffer Gittell
Osborn Prolessor ol at
and pel
formance in
with Kevin L. Keller, E B
Marketing
spoke
on
to
with 1 red
over
lunch
on
March 14 about his role al
orthwestem's
Kellogg Graduate School ol Management, look pari in the
Marketing Department s Distinguished Speaker Series on
March 1
lacobucci disLeaders 17
studentprofile
Medal Round. SMG Student Golden Down Under.
life, sure,
the School ol
Oh
Management didn't
send any athletes to compete in the 2000 Summer in
Olympics
Sydney, Australia,
but that doesn't
wasn't well
SMG
mean
represented
at
the
Games Karen Brzozowski
tSMG '01) extended her Boston
University study
she became
a venue
ations coordinator
at
maintaining
C enter at Fennth Lakes,
Row
were
liming malfunctions for while the most omi
mier
of
event
the
potential threat
"There
much
hype
about
until her
'what if and conducted simu
ended in
2000. but her
May
internship Sydnej Olympic
with the
Committee
tunity
proved
golden
too
lot ol
a
preparing
during
abroad and
study
oppor leave "I
to
time
spent lor the Games
an
a
my work fullilled," says Brzozowski. I dis cussed the situation with mv shame
SMG sots
all
wen-
was so
possible always asking
terrorism, we
ourselves
lations ol
possible scenarios throughout the summer We had to
satisfy for safety and running the
and
my
seemed
it
can
i to
I
hours and spectators w ho entered ihe bleachers at claw to
savs
m
active
a
lot of time
for the Games
a
is
Peer
preparing during my
abroad and it seemed
shame not to
see
my
a semester
or
18 Builders
kavaked
a
m
dav in her
both
Karen Brzozowski
of
directs the course's student
teaching
assistants
about life and
Karen has
enthusiasm and
strong!) "
believes hard work pays oil Brzozowski, whose journev
to
Australia included
stops in Thailand and the
Islands,
in
from the country Crocodile
She
currently
me
hough she had
Manv
us
remains verv
too
missing
n
the lake and started
protest and exhaustion We didn't see that one coming
tutelage
great spirit to every she does, says Arnold. thing "She takes an optimistic view
couldn't
Dundee, Brzozowski
efficiently,"
a
seats
Brzozowski
lumped
tunity
rowed
good
swimming around
the oppor
I
lind
the
and labs for freshmen and
brings
the necessit) ol
smoothly
System Under
Professor Peter Arnold, she helps brainstorm workshops
extraordinary
competition, wind pushed start times back by
Awav
savs
teaching assistant of Management as a
d.w ol
that gave
events
spent
assure
SM 122.
the Easiest times.) "The last
work fulfilled."
valuable to pass by, even il it meant
sen
olten causing
delayed (to
both the need
Brzozowski.
study
pro).
agreed
was
limes,
be
not to see
and thev
weather
sport and excessive wind wreak havoc with per
sitive
Stand the wait and the hi
terrorism.
Reading, was native, Pennsylvania only to be Down Under supposed a
semester
spectator
is a verv
ices
sen
athletes the fairest results and
nous was
sporting
ing
Advisor. Presidents Host, and
co-head
to
helped oversee the logistics of keeping the venue afloat in ease ol myriad possible prob
ol managing the worlds pre Brzozowski.
lighter,
formance
races,
Olympian
was a
respect for athletes who work paddle and oar in hand, she
herself
task
a
man-made gem outside ol the host ciiv While gaming a
lems. The least ol which
the
However, there
and much wetter, side
Svclnev International Regatta
abroad program and, like thousands ol others, dedicated to
oper
the
a
little
more
explore
wants to
ol her world
every dav II its South America or the South End, it mailers little Savs Brzozowski. 'I've come
to
single eled
appreciate ew dav since I ve
trav
Exposing mysell
to
ideas and perspec tives, learning about
new
life, is really whats important These expe riences, brought into the classroom, make "
it
richer
studentprofile
City Hall.
Mr. Ross Goes to
City Councilor.
GSM Student Becomes
ago, Mike Ross
vears
Seven
(GSM 0 1 ) small
a
huddled
sat
in
groundskeeper over
the
as a
He
amid that
pelted
the
But when die winter of
city
Cuv
find a position with the of Boston. Ross scored
well
on
his GMAT and
But his
run
1999, he decided
in
lor
citv
council
home district,
in
an area
to
his that
includes Boston's Beacon Hill,
1994 melted into spnng, Ross' lather helped the recent college
grad
award from Government
and,
poured
GMAT stud
winter snow
"Best ol the W. b
exposure lo city politics under Menino still captivated him
Bostons Franklin Park Zoo,
where he worked
a
Technology Magazine
in
building
red
li
Mission
"1 learned the value of
from my par earlv- age-, savs Ross Mv lather did youth
public he
soon
Fenway, and neighborhoods.
Back Bav. Hill
his way to graduate school, thanks to a City pro was on
service
ents at an
outreach
in some
of Boston's
or
Northeastern part-time free
toughest neighborhoods and look me along as a child I learned a person's job can and
ol
charge.
should have
gram that allows employees to attend either Boston Universit)
Mv
first
job
Cuv Hall
al
entry level, says Ross. "I helped coordinate the online
meaning
technology department
campaign bv
was
"When I got the was
job,
1
famil) good to never
telling
a
have enthusiasm, but
mistake enthusiasm for
competency stuck with
I hats
always
He
and with
quickly
rose
good from
his tech support position Mayor Thomas Menino's advance
man.
to
coordinating
appearances. Alter
a
the
as
director ot online
the
successful
services
quickly began rebuilding sue.
"It's
good
which had fallen
into
virtual
disrepair Upon his return,
for competency.'
never
manager,"
mom
|anine I
run
lor
office,
it)
the
oil
to
his treasurer Ross
undergradu
area.
dog
re iv
the
rules
communit)
thai the A
job
reveals thai still
ballpark straight out ol 1 Michael e urlev s playbook,
m
job,
recognize
shuts oil
schedule
recently
rents lor tenants
m
his
communitj training, the hard, last negotiating and preparation come into plav Mv MBA
evervdav and thev woik
in
as
government business, s.us Ross
touch with
Ross
Ross
attended wakes lor those
i
personal politics
matters
negotiated
at
this
to
proposed
with ihe Red
Sox, and.
Ross
And
nevet
glance
street
vendors outside
except alvvavs he
he recruited
also had several
diverse
Park says
.iv
[here
part-time
semester
the hoi
girl
help from his MBA classmates, including Mudge, who now serves as
the (
a
a verv
my district spans from Beacon Hill to Mission Hill, from the to
instrumental."
though
Student look
Its
boutiques on Newbury i
argue thai, but
was so
ven
and my
my
different
completely
Hall.
City
discussed the new
gelling elected and governing
things
"
Mike Ross at Boston
from his on-campus
constituents
are i wo
important life, |anine Mudge (GSM
"My mighi
turnout
However, Ross admits thai
woman in
most
Ross
assisting him in the cam paign and enjoyed a high voter
ates
to have
mistake enthusiasm
friend
plus vears, Ross returned technology department
io
and
28, became the
city's youngest representative. T really owe mv success to the
at
my campaign
his
travel schedule and local
two
the council and.
me
capabilities
reason
the
on
4 1 margin, he
enthusiasm, but
Ross worried little about his
a
seat on
won a
Its
me
can
Though outspent
excited and I remember
friend
moral compo have that
a
Politics
nent.
as
thev do
faces reelection
Ross
m
November and looks forward to
serving
his
time
with
ment,
.\n
or in
be afraid
to
and
neighbors
friends lor another
term,
this
MBA "In govern
an) job, dream,''
vou cant savs
Ross
laced Willi the loss ol their Leaders
featurestory
Driving
the
Charles Lax Bv
John DiCocco
Once in
'82) This
a
great while, Charles
R. Lax
(SMG
sneaks out of the office to
past
summer
he
play golf. participated in the
pro-am at the Senior PGA FleetBoston
Classic with Bob
Emery, CEO of Robertson Stephens, at nearby Nashawtuc Country Club. "Our pro was Leonard Thompson," says Lax. "What
a
Palmer in front of There
ball. We had Arnie us
and Tom Kite behind.
spectators all around. rolled in a couple of 40-foot putts. I actually did pretty well for me, but playing in front of a gallery was a lot of pressure..." Pressure? Compared to his job? were
C-. Venture (
SOFTBANK (
and his part es k
apital,
apital
Partners, and GrandBanks
apital have woven their wav through the Internet and technology invi ment minefields, build c
ing
a
formidable
I
even
empire in the private
market From
equit)
tial fund of $57 million in 1996, his
ral investment capital base (ai companies) today is a tally sheet of nearly $8 billion capital under management. Now that's
driving the
green.
kax and his partners have uni
ered. nurtured, funded,
helped
man
the very least guided some ol age, the giants ol the Internet, including I hade, and Art or at
Technolog) Group Despite
the
pessimism about
in
high
tech and Internet
remains
upbeat
about both
Co-Founder, General Partner SOFTBANK
Capital
Partners
Co-Founder,
Managing
Director
SOFTBANK Venture
Capital
Director SOFTBANK
Investment America
Corporation
Co-Founder, Managing General Partner
GrandBanks
Capital
Advisor, Seed Capital
20 Builders
an ini
u
SMGnews "I have
keep urging to go back to business school. Getting a master's degree, in today's market, gives you an edge." His
people
extensive
here I
professional experii
graduating from the School
since
h springer
high tech hrms including ALPHA Software, Economica, and Phoenix
We had c
li.u lev
Technologies Ltd.
huge
During his last assignment at Phoenix Technologies, he was managing a |oint
the
between Phoenix, Interactive
venture
svstenis,
in ]apan and Corporation is now largest high technology
one
ol the worlds I
ax
private equilv to
go into
bus) headquarters
in a
is an
kind
was
ol his
storv
enough with
successes
share
to
The fol
us
entrepreneur So
was a
who, with
Industries,
a
in
business
mv
was
mini-conglomerat< most!) and.
interest
1
arguably,
got my ol
some
she has and
Ron Fisher, the CEO ol Phoenix In 1995, Fisher
Technologies. brought
on as vice
Lax then
Holdings.
Fisher
investments to
new
SOFTBANK in
apitalist kind
to invest
Charley said, Charley oiled
Lax
in
a
in
the first
the
Capital
'l TBANK
on
the
vears
arguably,
parents, I
licit
is
golf, Charley also plays squash and attends t cities
and Brums games He has a passion lor cigars, international travel, and with his
grad
us
school
Although graduate people here I keep urging lo go hack to business school Getting a mas ters degree, in today's market, gives an edge
I
have
B&L: lodav you
a
joint
venture
New York
in
with Chase
Capital
late stage strategic investment group In the kill ol 2000, we started a new earlv
group focusing on Fast technolog) investments called GrandBanks Capital venture
stage
v e
been
good for
vice vi
CL: We've done well And various
deals and
partnerships,
through we've
ended up with over a dozen partners spread across the I S managing SOFTBANKs investment
interests
We created SOFTBANK Partners
to invest
in
capital companies on a
late
stage basis, companies verv dose to public or ahead) in die public market 11
ahead) public, we can invest through a PIPE (a private investment in public entit) I 1 hat's where, instead ol going into ihe open market, negotiated, structured deal B&L: Dell
us more
a
vou create a
about thai
CL: We've done that
so
far with
two
a
group ol
high-powered
Would
vou
walk
us
general pan
re a
ncr/managing partner/pi
de from
have
us
ol
-'lie
better
are
All ol
sons
uated from
I-
Partners and CE( I ol Lax
Ventures (now called Capital' We also
\oii
Wi
general partner ol SOI
the managing general partner ol GrandBanks Capital and
good fortune of
undergraduate di later,
now
tennis
CL: \lv
educated than
worldwide well-
Global Ventures, and
lien she
educated household.
ven-
venture
machine Lax's partner manages SOFTBANK
managing
w
Rowan Lniversitv
an
a
oppottun Six
it
her Ph P
on
B&L: You had the
investment
BANK si
Internet
pan ol
Gar) Rieschel, Venture Capital is
join him
$57 million
"Lets do
is
began offering
venture as a
working
my lather, and got her MRS instead she was recently Vice chairman ot
consider Before
Fisher asked Lax to
long,
w as
degree from Harvard.
met
was
chairman ol SOFT
BANK
a masters
Cuv.
B&L: So you SOFTBANK and
from him
acumen
who's always been sup all lour ol Ik i sons has also portive ol been verv much involved in education He staved in touch with
Technolog)
SOFTBANK Venture
Coast
Mv mother,
capital
first domestic fund, Si )FT-
Partners
successful-
verv
through acquisition Certainly, business
our
a
17. He built that business i
BANK
still am). Then
president (and
i|P Morgan Partners) In 1999, I co-founded SOFTBANK Capital Partners.
partner, started SL
father died in 1976 when I
\lv
was a v ice
created klatiron Partners
was an
Harvard-trained
electronics company
an
was
ihe blood?
it runs in
Lax: Mv lather
Charley
lawyer
under the auspices ol SOFTBANK Holdings (later rolled up in SOFTB Investment America Corporation) where 1 sed
Builders & Leaders: Your lather an
sequent Japanese fund of $170 million
excerpt
southern New |eisev
venture
"'ItJg^^Cf
I
a
enjoys the antics ol his spaniel puppv "Grade opportunity lo meet with
entrepreneur. He
left Phoenix in 1990
I'M "11
E~
renovated church in Newton Center.
MA, where he
and SOFTBANK
investors in
an
his
ai
lowing
Korea SOFTBANK
scientist at
a senior
"
-
iotec h firm
magna
laude includes positions at several
cum
Miehele,
girlfriend
""
''"
imarv
investoi in
companii
through
them?
CL: Ron I ishei ol SOFTBANK
Holdings
asked
establish ihe
me lo
venture
Ihe lust kind,
$ il million
We
ran
join
him
capital
already
to
group
help in
raised,
that hind and
a
earlv
was
subLeaders 21
featurestory "One of the
things
that characterizes
our
base, but
always focus on the No. 1 player and that's why our returns have been extraordinary. Because the delta between the No. 1 and the No. 2 player is roughly three to five times. Which means that the No. 3 player does not even count!" investment thesis is that
investments,
a
with, bricks and mortar brands Yet its backend a fulfillment companv so
local company called
Webhire; and then Global sports Interactive,
in
Philadelphia
The Webhire deal
months
to
gestate We
million into
it.
ten
Global sports And
subsequently
another ^20 million. Then Comcast co-investor. Webhire
one
software vendor in the human
resources/human
is
joined
the number
as a
thesis is that 1
been
always
we
why
1 and the No. 2
between the No three
lo
live
ha\
e
plavei
limes
Which
does
not even
player
count!
space (managing recruiting processes' has 40% share ol market Global sports manages retail operations online for panies like the Sports
We
Authority, Foot, and
brands
Sports
rWw
you're
lamtliar
earlv investors
were verv
We invested
Internet
to
widely, broadly,
^
Yahoo1 and E-Trade We
holders in
some
We've done
not
in which
we were
investor
I
still
B&L: What vour
locally,
Technolog) Group,
the board there
investments were
lnquiry.com
among
But ol the three,
ure. was
lEntertainment, was
the onlv
another fail
Inquir)
com
-, uhoui an) hesitation, il that deal rued itsell 1 kev were a clearing
house lor 1
professionals looking
1
loi
where
misjudge
vou
u ,mi
monev
not
spends
lai
chasing
a
ready
vou
\
lo
have
Inquiry
a
ners,
loo
much
business thats
happen
Raielv do
failure thats like
com.
agement
22 Builders
the management
the business model, and the
companv
with the
team,
the
the
right
held. It still has far and away a better n than
man
hnology
And
competitors
us
lot ol pan ol that was because we put capital m the compan) ahead ol time a
gave them
unfair advai
an
nst
the competition But having said that. thev had a terrific management team. which
their
guided
GrandBanks
success
to
he
a
1
just
recruit
Corporate
partner
in
J.I Heal) We've been successful because
had
a
v
apital
singular
focus
on
we've
the Internet
argue the bubble has burst
today,
but 1 d argue we haven't vet seen the valu able contributions the Internet platform
bring to all businesses lis going to radicall) change the way all business is done, its going to radicall) change the
can
all education B&L:
is
So vou
done don't think the
Internet has been
overhvped Are people overlooking something1 What are vou seeing? CL: Well, mv partners just invested m Big Chalk, loi example, a k-12 tech
nolog) platform tionize
right right part
te<
in its
enue stream
wav
nformation enterprise software more hkek 10 have failures You're on
H^.
a
some
1 would dc^ A,Ain
one
co-invest
occasions.
better business model and
Development
Cybercasl
American
number of
CL: Yes. Id argue that even though Yahoo's stock has gone down dramatical ly, with the rest ol the market, it's still the
disappointments1 CL: 91
We've had them
ed their former head ol
the first venture
on
our
co-investoi and limned partner, too. B&L: You create strong famil) ti
it
Mainspring
An
ommunications, m
significant
investments
with companies like c
still
ol those companies.
lot ol
a
re
had Yahoo' acquire two of companies, Geocities and
ve
us on a
leader
the
in
know ing what was going to work some ot our earlv investment successes include
Athletes
all the
Chalet
com
is
means
Having said that, we re still subject the ups and downs ol the slock market.
It
,
Impulse Buy Network and Webhire, to name two. They've also been a significant limited partner in SOFTBANK Capital Partners E-Trade has been a significant
the No.
our returns
things is that we have a very large portfolio, almost 300 compa nies now, and we re verv aggressive about reating partnerships across our compa nies. We stopped counting when we had ovei 500 interrelationships between all the portfolio companies.
with
investment on
its time
CL: One of the
portfolio Yoyodyne).
because the delta
extraordinary
roughl)
our
focus
far ahead of
was too
successful?
We
it
and that's
player
that the No. 3
capital management
a
With Global Sports, we probabl) have an 80%+ market share. One ol the
things that characterizes
in
co-investor We put $80 mil
as a
lion
m
brought
we
Yahoo1
hear about
never
took
probably put approximate!)
and
we
it
of the business opportunity B&L: What's made your company
m terms
teaching
but this
site
that's
just might revolu
Ihe three R's
expands
access
are
still kev.
lot students.
and parents in amazing ways I also see the Internet impacting pro-
teachers,
SMGnews duction and the procurement processes
partnered
The Net
brands, thai didn't have
going reduce
is
and reduce
inventory, Plus, are
events
something
have been
reduce
cost,
brands
spoilage-
like the Firestone failure
that should have and could
seen
much earlier 11 all that
lem mueh
to
That's
sooner.
catch this a
and business
utation
hundred-year-
can
entirely
that these
things
Those
are
technologies
alleviate B&L: What else
CL: Software
application e-mail
are vou
services,
service
looking
at?
outsourced
providers
We have
our
silting out in the Internet. You don't have to have it local!) Those arcserver
things that we're investing in, technologies and managed service providers, anything that has
to
do with
streamlining
e-tailing.
shopping
building
had
it
brand Thais
great there. We invested in companies that
were
the
all
Impulse
Chase
ol
one
something
and
We
goods It's product for them to procure. Global Sports aggregates demand across a dozen brands, and provides merchandis ing, inventory and fulfillment B&L: But a
.
have
vou
medical
someone
like
Global
Through
was
is a
Web
Sports'
another investment ol
line
successes
product jusl shopped at Sports Authority.com, and 100% ol everything that Spons Authority vends online is done by Global spoils We do everything for them and we
as
franchise fee back
Authority lor use ol the to the Sports Authorit) presence
on
the
net.
to
sports
profit
Ihev gel first and thev don't have
leave the on-line business
everybody
thats
to
to a
we vc
focussed
branded
Ever)
taking
on,
products
time
model that
a
on-line
we've invested
in an
e-tailing company, we've looked at where thev can gam market and margin on w
Bluelight
bv
being advantage We partnered
the Internet
uh Kmart,
ol their
brand and using their men handise capa bilities in a similar wav
B) tware
focus today is m or software services technologies
and
large,
prepare lor
one
a
capital?
can t start out as a venture
capitalist Before
I got into this business I
was an executive
with
number ol soil-
a
companies What prepares vou the best isn't understanding capital structure ware
or
how
become
to
a
deals Thats the
ture
with
about
people
mechanic and easv
building with
struc
part This busi
great companies
entrepreneurial drive
hat prepares vou the best is being successful m business Go start a busii
become involved in
a start-up. or do line management in some organi product zation where vou have profit-and-loss
responsibility and have to in. force, manage technology people who build products, and manage product development Do something that has to do uh building products or sen ices that w
vou
then have
tomer,
our
to go face-to-face
You
creating
com as an extension
believes
W
competitor So
in
in the Asian markets Plus we've
in venture
ness is
brand. Pure
public,
like Y'ahoo!, and E-
big opportunities.
are
career
vou
a
taken
created SOFTBANK Korea, and SOFT
CL: You
handled
is
technolog)
Trade have gone public there And some ol these companies will be tremendous
ours
back-end lor Web M.D.
Their entire
companies
50 joint ventures,
over
were
B&L: How does
CL:
pay
created
Japan. Companies
goods
it
vc
ol which
BANK China, which
selling sporting
site,
help
can
the second largest
into
some
easy
Web M 0
largest. roughly
market, Japan.
sporting goods, you Amazon doesn't sell sporting not an
the
is
$8 billion capital under man agement worldwide. But we re the only go
because
cant,
Capital Partners)
firm out there that
a
avoid We
we
VC?
J.P Morgan Partners (the former
have- about
lor
ours) crashed
a store
applicability
have about SI 5 billion We
They
establish
to
private
in
CL:
is now
Toys-R-Us.com,
think have worldwide
we
B&L: Where does SOFTBANK rank
invested in Global Sports II vou go to Amazon toclav and you want to huv
Global Sports
successes
that
new
shopping.
because
M.D.
CL: We've sort ol gone the gamut ol some
part ol
infrastructure.
We invested in
processes
and outsourced management B&L: What about e-tailing? We've had
establish
example E-Toys (not prob
old company that may have lost their rep the kinds of
were
to
huv Network, sold to Inktomi,
to
Firestone, able to be crunched, thev
that
or
Inktomi
warranty data had been available online would have been able
online
with the bricks and mortar
capitalist, anv
be
cannot
thing,
or
a
and sell
out
successful
1 would argue
unless
to
venture
successful
at
competent sales be verv comfortable
you're
person You have
to cus
a
selling, presenting, and being more knowledgeable about your area ol interest than anybody else
"You cannot be
a
successful venture
capitalist, or, I would argue, successful at anything, unless you're a competent salesperson."
\lv hrm
former CEOs Perils pist
is
almost entirely made up ol top line managers Mike
or
joined
us as a
partner, he
was
hall dozen media companies like Ziff-Davis and Playbo) i
EO
at a
I kick
associates oul
after
two
or
Leaders 23
featurestory "I like
that
that
That's
companies satisfy pain.
'analgesics,' solving a real
are
customer need." three
he) can either go back and get graduate degree-, or go work For a portfolio company We clout hue MBAs
ket
Oftentimes, those
guvs will hnd
wav
and build
business. But
who've had three
standing
I
vears
a
or lour vears ol experi become partners here. Partner candidates are almost entirely succ<
to
ence
Jefl Parker
CEO's.
aer
ol CCBN and us
1
He
was
now
also
inancial and
CEO
currently
Thompson
real
of this past
per week' CL: We probably have 200-300 per week here in Boston We discuss a short receive
list of
30
maybe look
time to
10
at
40. We
to
to
probably
Is companies
week, face-to-face We like
have
to see
be contracted but
to
and business
product
driven bv tomer
deals
have
to
feedback,
he
cus
come in
right
board, back ol the
alter the a
com
pany, hut rarelv .And then, we'd be look ing at companies that are just before their In this market,
initial
public offering. you're probably looking
market
right
isn't
reall)
public offering, much ol a public proposals
out
ol
-ion1
CL: Not
here and
a
crisp concept ol companies
A lot ol
have
they technolog) thats
we
some
who your walk m
blank concept ol
still in search ol
a
the
wav
signs that the Put
are to
lot ol
a
had the
we
public
wider
oui a
take
our
markets
can
market had dried up. potential bu-
And ihe
ate a
large
with
regard 1
return,
ve
to
decisions
been
on
marginal
lough tough enough
not
new
com
ol my
on some
com
public
opportunities we're
every bit as interesting as previous but the valuations are so much bel
ones,
We used
be able
to
ear or two
ol
our
to
get
liquid
with-
first capital fusion,
the companies wouldn't be more than old before vou saw them in
public
markets Now.
we
ot three
live
minimum
before
period Its
a
thought
pounding the table with my pounding the table with
should expect
a
ation
liquidity event. market change. vour successes,
about creating
have
vour own
mutual
lunds1 CL: I doni believe
taking public High net worth individuals can participate through a kind ol kinds like Banc Boston c apital in
lor private equity
monev
sometimes
to
a
B&L: With
companies that gener and be more definitive
ihe
on
like real
two vears
of
net
perform
are
consolidation.
on
Focus
diversification. The
list. I should be
That makes
my shoe, like Khrushchev did, and actual ly should have thrown mv shoe at some
retail market should avoid private equity though lis sunplv loo volatile an asset
othei board members
ot the
is a
asleep
were
ol
Some
c
market that needs thai kind ol The earliei
the bettei foi bod) involved Capital markei constraints not only affect die companies but affect us as well Raising new capital lor lunds should have happened i arliei in the < urve W lien
do
it,
ever,
things
an
the best
ii
nine
be
to
good to he true, thats raising capital Because '
limited partners
mar
lodav
capital
lor
I here a
venture
tough
is a
new
are not
contrari
couldn't be
investoi than
bettei
lime to
be
oui
limn
ed partners the last lew vears But now the public markets have evaporated and new
investments dial haven
t
can
he made
been
ol the (.mil War A
new
seen
better prepare one ol the best
graduates?
cihc
players
in
spccihc segments
to
ai
valua
since ihe time
reality has
set in.
partic
processes, hosting on-campus seminars where students participate and m
ipate
at
m the real world furies Lax will he the featured speaker
the 2001 MBA
We made
billions ol doll, us ol returns foi
tions
to
things 1 ve seen is what the School ol Managements doing wuli their Ms* MBA. which is tying IT acumen with a business degree That's die verv best thing I ve seen 1 also think management schools should bring in spe-
t
toda)
doing
CL: I think
hi a
be
hear about business
time lo
venture
lor
B&L: What should sehools ol bi ness
vou
sense
lass
the wheel And
at
lough decision-making
ans
24 Builders
panies
ter
to
prolus before the be v isited.
earn
so
imminent
.
louts
companies have
econo
manager; to and earlier, which,
did better than when
brethren,"
this
now
B&L: What knocks
customer is
actually,
these guvs
at six to iw
months before the initial
the les
portfolio
spending faster
I shouldn't be
white
napkin-designed
a
ing
resen'es, as a
boards but
We'd consider
because there
larger curtail
panies
knowledge investor
the
vear.
are
CL: Ihe lessons learned
t e
lot ol the
design
some customer
We like to
angel
a
solving
bring in the M&A [merger and acqui sition] intermediaries earlier, and reallv
a
that already' have customers, in some wav. shape, or form. Thev don't necessarily
have
"anal-
are
dropped?
class entrepreneur companies B&L:
To
customers want
general, what
B&L: In
my
having founded several including First Call. How manv proposals c\o vou
clear under
some
ol what die
their
customer ni
sons
successful world
a verv
good
have
to
that end. I like companies that that satislv pain 1 hats
Venture Partner with
a
EO ol
c
is
reallv have
a
www.qrandbankscapital.com
SMGfaculty Retirement A New
By Zv
In
Approach.
!
i
a
Investing
this article. I'm proposing new approach to invest
There lull
ing for retirement that advantage ol recent mar innovations
innovations to
and advances
risk/reward
in finance
the
theory to improve risk/reward opportunities
available
take
to
these theo
improve ihe
opportunities
available to individuals
self-directed
individual
to
advantage ol
retical advances and market
takes ket
are wavs
in
retirement
accounts
investors before and after
The
retirement.
approach
introduces three
Guaranteeing
*
ele
new
ments:
Living It
tected bonds mum
inflation-pro
uses
to
standard
hedge a mini ol living after
persons pone
cessful retirement maintain ones
willingness
to
a
post
retirement
Retirement pose
option ladders'' lever growth in retirement It
to
ol
account
uses
can
theoretical
number of
a
daunting
I
economic
decisions. One must
Millions ol
world
people
today
are
self-directed
around the
relying
IRAs and 401k
(e
plans)
provide future
g
,
ment income
Since
these people lack about how to money
manv
they
ol
knowledge
invest
the
accumulating
accounts,
retire
seek the
portfolio model are a set ol risk) assets u terized by their means, standard deviations, and
lations
form ol
I
cient
guid
corre
as
he outputs are in the ol risk-return
arrayed along portfolio frontier
since
Markowitz
an
i
intro
1952 The inputs to the
literature The
been
many
extensions
emails m
lh
"
duced his model there have cnhani
important
as
and
the scientific
most
he desire
assets.
I
against
a
important
risk are
uh that risk I
a
desire
adverse
lo
<
or
securi-
hanges
demand for
in shod
induces
urities and
index
options
estimate thai
pre-retirement
vour
vou
re
bonds
I he
treasury
long-dated
I his
use as vour
income I
to
standard ol
is the amount we default desired
goal
inancial
contin-
Engines
Youi ideal goal is the amount ol annual pre-tax iii
income vou
are
making the
before retirement)
living a
annual
household income (the
80s, and ^Os
innovations discussed here
-ei
11 need about 70% ol
maintain vour
major markei innovations and the rise ol the new held ol
inflation-indexed
to
investing advice clients "Man) finan
planners
year
engineering
is
vou
example,
saw
financial
plan
standard ol
cial
amount
long-term
1970s,
its
correlated
hedge- aga
term interest rates
Ihe
can
diversifying hedge
requires
suc
retirement
to
highly
w
a menu
ol experts Most experts advice is based upon research clone bv Harry Markowitz in ance
hedging
be
hat
selection
choices
in these
He showed that
a
living m retirement I oi example. Financial Engines a popular online source tells
1969, 1971, 1975, 1992).
before retirement. Markowitz
on
investment
accounts
to
weigh risk, time, and guality of life, all well
the past.
have
developments
been from Robert Merlon
income.
Improving
Retirement.
in
The ultimate' goal ol
retirement.
It lakes
a
Minimum Standard of
have
m
would like
retirement
to
Your
minimum income goal is the smallest amount vou would find acceptable to live on Leaders 25
SMGfaculty thai
Monte Carlo meth
Using
and
retirement age that enable the user to achieve
US
the
"stripped
goal
minimum income
with
a
smallest
is
truly "the
you would
amount
acceptable to
seems
minimum
vour
goal
income
lind
ol 9
probability
But il
that
me
Hedging
live on,"
to
vou
iThe concept ol
securities is
understood in the
is an
and
the risk ol loss bv sacri-
nates
ficing
the
for gain Investing Iree ol
potential
converse-
asset is
the
in a
age 65 and
form
plans
bonds of he
tarantee
huv
Mates
form ol
is an
were no
ing long-run protection situation vears
arum
has
to
protected
Taking
reward
if the stocks
aps
m
of
terms
retirement age and
at
I conomists
in
from
ideological have long urged
perform poorly,
age 69.
Options and Leverage. Adding index options to the set of portfolio inputs greatly
retirement
enhances the
to
the
Call options allow
leverage potential
investors to
gains while insuring that their
standard
minimum
Frequency Chart
income
Aqe
benefits take the
117
.078
life
hut Social Seeuntv
54
50
bonds
Skewness
c
Range Minimum Range Maximum Range Width
effect
,
ihe first
to issue
tion-indexed gilts with the slated means
(i e
goal
,
infla
o\ prov id-
benefits
lo
Aqe 7 Outliners
Frequency Chart
applied
models ol
ll
onsider
elev iation
on stan
assumptions about future
snick market
the most
57
Mode
57 4
48
c
24
-<
returns
higher m
Range Minimum Range Maximum Range Width
likely
and ihe
hxed saving rate and a predictable salary until retire
deviation Bv
higher
retirement age die standard
leasing the proportion invested in stocks me
41
68
27
illustrate the pare die
principle, cevmfollowing investmenl
strategies for investment
the fraction
slocks, ihe lowei
person saving lor retirement
-0.35
64
ll shows the results
ol simulations based
dard
57
Median
VL. 58
inve-sli'el a
ll
...llll
I lu-
investing i
.048 o
.000
1,000
Mean
Skewness
a
O. .024
Trials
Standard Deviatior
>..072
weirk
optimal portfolio quite Luge- It therefore sense to incorporate this
in
a
67 22
1
a
mix
To illustrate with
45
68
Figure
Forecast Retirement 1,000 Trials
Account of
retirement
bonds)
leir pension kinds
retirement
makes
3
-1.08
K 63
59
100% in stocks
immunize
to
The theory suggests dial the effect ol labor supply Ik-xihiluv be
62
Standard Deviation
39 <
...llll
.000
61
Mode rv
3
a .039
Median -n
JD
O
1.000 60
Mean
156
117
the relationship optimal investing ,\nd flexibility a person has in
die
To
is secure.
Trials
10 Outlinerss
.156
Seeuntv
ho, '-ing how much
on
of risk/
eipportuniues available
to investors.
expected us
menu
50% in stocks
other
some
between
i
57;
retire at
Bui then-
Forecast Retirement
Flexible Retirement Age. Recent theoretical literature has
for retirement In 1981 the
hedge
by expected
illustrates the
1,000 Trials
In the
theil liabilities
can
26 Builders
4% per
Jy(
inflation-pro
Private annuity companies can fill the gap, using inflation-
prov ide a long-run inflation hedge lor households saving
inga
ck) well, she ceuild
return
1
post
poning retirement, the higher the fraction he or she should
income
explored
changed
their governments lo r inflation-indexed bonds
was
postpone
will
more
is lo risk
ieal retirement income
'I
against
all ends ol die
I'K
to
most
invest in stocks. If her stocks
ol
ige 65. The standard deviation oi her retirement age
benefits may kill shon eil a persons minimum desired
offer
securities
the risk ol inflation I lo
recent
is an
investor
.096
fixed-income
the-
rate
accompany mg risk of her
Figure
would have-
[And
The ing the
tradeoff between risk and
at
inflation-protected
annuities,
her reward
having
(in
a minimum
annuities
rate
100%, the
retirement
lo
stocks exceeds the
risk-free interest
is
age 85.
retirement
life, people lo
at
can
of
CPI) starting
ending
expected
to
age drops to 57, and the standard deviation
retirement
retirement age e>l hi
By investing
income
of her
from 50% hkelv
risk-
(3.5% per
By choosing
II the
risky
heclgi In ihe past there
tei
ol the
terms
nsk-
simplest
65
is
retirement
earning the
in stocks, her say 50% future rate' ol retum becomes
vear.
single-
a
maturities,
real retirement
retirement
important distinc
between
fully
of
vears
immunize a stream
United
hedging diversifying Hedging elimi tion
thai
age 65.
appropriate
tected kle
it
year'
invest senne
years old and
ii
countries) Sc^ckiI
context
30
inflation-protected
lor
well
institutional investing, where ailed "immunization There
to
on
rate ol interest
return on
be able
hedging with fixed-
be
can
free
price index (CPI l- denominat ed pure discount bonds with
level ol real
eliminating
US inflation-
age based
kind
in
end. I propose hedging with inflation-protected bonds.
did the
so
risk-free'
Her
ment
qualified finan cial institutions to provide a complete arra) ol consumer
man is
sac
in
bv
Suppose
To that
it
guarantee
income
indexed bonds
to retire at
by
1997
m
Treasury. The
would
rificing the converse potential for gain. Investing in a risk-free asset is the simplest form of hedging.
risk bv
and
maturities up
it
eliminates
the risk of loss
want to
living
1994,
suggested
the cost
to
Canada followed
oi
a
indexed
wei\-
ods, Financial Engines com putes a portfolio allocation
i in
a
$] million
ewer
ihe
next
yeai
P Inve-si all si million
l-year risk-free bonds
to
cam
(2) m an
fund
Invest all SI million
ec|iiuv index mutual
SMGfaculty 2
Figure
^^
of Four Investment
Comparison
minimum value ol die
>
$1,800,000
r
>
$1,600,000 $1,400,000
> >
$1,000,000
y
portfolio
ill three
thi
is
cases:
$945,000; howevei the higher
r
T
die exercise
price,
the
the
slope
mmm *
-.
100. 120, and 140. The
prices
$2,000,000
$1,200,000
future
for three different exercise
Strategies
lo
the steepeT ol
nghl
90:10 stocks
Figure
90:10 calls
the all
$0 20
40
60
80
100
120
140
160
Value of Stock Index at T
=
Option's
180
(3)
$900,000
1
options
series
in
I -year risk-tree bonds to
nd the other $100,000 in
index with
price equal
Figure
2 contrasts the
from the four
"kink'' at the
price ol 100
starting
Figure
at
2.
are
the
Changing
bonds ol different
Option's Exercise Price
4,000,000
O
3,000,000
gesting
2j
2,500,000
ra
2,000.000
x
wmmm
x
120 =
willingness
/
100
ness to continue
J
the
the
to
in sug
allo greater the willing
optimal
an
should
iseus
account eil
retirement
cation The
140
=
m^
x
asset
working
past
retirement date.
expected
the greater the proportion invest m stevks
to
Third, sponsors ol self20
40
60
80
120
100
140
160
Value of Stock Index at T
=
180
directed
1
investment
I he
call-option
strategy, however, has
10
two L,0
out
the 90:10
call-option
has
upside
nuue
than ihe 90 ihe
In
stocks
10
thai Is the valui that
tiuisi
U
ol
rea<
several years.
positive pavoll I he higher ihe lower the
cost
at
the in
lo
have-
a
expiration
threshold,
t
to
3 shows the
Figure pavoll
investors
as a
a
is
strategy
"laddering.' Accordingly laddering ol
call this strategy
options t
exchange-traded
SPX LEAPS have as
maturities as
three years
I inns that
sell structured cc|uuv participa tion see urines have- issued notes
with maturities e>l 10 it
i
-
eas)
long-dated
imagine that might issue
to
innovative firms
01 even
function
ol the value- ol die sioek melex
investors bv
like .\n
onclusions
Millions ol
reiving
on
people'
class
stock markei
ig dard ol
eMu-s
1
as
hese
a means
leveraging participation
e^l
in
while prominimum stan cams
living the lull
e
Working
(WP 2001-03) with extensive references, please Panel
contact
mjbellic@bu edu is o pro/essi
Zvi Bodie \lu>ol lie
(
\o
contracts
asset
provide
finance and
ladders
available
sec unties or
index call opiums
option
can
offering option
additional
asscis Lan
urrenih
ho
ol each option,
and the steeper the slopethe right ol the kmk
I
years
heel in ordet
lor ihe eall option
options maturing
the
old value ol the markei index,
protection
year, the investor can buy a series of call
ol
called
long
stra
price
option determines ihe thresh
with the all-
practice, instead of having all options mature in a single
pav oil
strategy lever.)
exercise
vide 'downside
in
a
diagram with a steepei slopeto die right o{ the kink Thus,
maturities siuh
plans
enhance the' risk reward
opportunities stexks strategy
lines
when
over
plan
take
postpone
0
both strategies pro
compared
retirement
500.000
for both strategies portfolio value ol $945,000 sense
ities in the
1_
come
this
offei
4,500,000
1,500,000
axis
v
hedge
to
employers should inflation-protected annu
O
1,000,000
Comparison of Strategies
strategies The
plans
minimum levels ol
mdiv idual's
dia
proposals:
employer-sponsored
in
explicitly
>
Four Investment
compare the
pants
the
in
enable partici
to
5,000,000
exen
the vertical
First,
O
strateg)
straight
concrete
Second, adv
I he pav oil dia
all
form ol
40 lk-type
grams lor the either threestrategies
them here
summarize
5,500,000
strate-
payor!
gram lor the options a
to
When
vears
3,500,000
Note that the has
ol call options maturing
proposed
available to these individuals. 1
6,000,000
current
value ol the index.
pav oils
single buy a
an exen
the
to
can
a
$6,500,000
md the other $100,000 l-year call option on that
stocks.
in
several
income,
Effect of
(4) Invest $900,000 in l-year risk-free bonds to earn a
in
having
Figure 3
the index kind
in
mature
several
applied
earn
Changing
Exercise Price
year, the investor
200
over
Invest
3. Effect of
In practice-, instead eil
$200,000
portfolios
had ion
large
ways to improve the risk/reward opportunities
tma
all stocks
diversified
m
a
Here I've
mam
$400,000
lunds
kink.
$800,000 $600,000
And government agencies all ack peo ple to hold their retirement
planners.
with
Us
retirement income.
Investment firms, financial
economic
is
at ihe
die- authoi
oj
several loil.IV
.lie'
self-directed invest
ment accounts to prov
books
best-selling college text including Ins most recent,
/in. i'
ide
http://manaqement.bu.edu/tac/fac_research Leaders 27
facultynews
Outsourcing IT. Partnerships That Create Value.
Companies
today fre
partner with
quently
temal information
technology (IT) suppliers better
to
value Irom IT
extract
critical to company performance. These IT sourc
a resource
ing
partnerships that
people that forget prior
tous
are so
ubiqui
sometimes to
1989, few
large companies used them Companies developed and
Moreover,
supported or sourced IT inter nally. It was Eastman Kodak's partnership with IBM in 1989 that legitimized IT sourcing partnerships (TTSPs) as a
a
viable strategic option lor
II sps are com
monplace, thev have changed significantly since 1989 Specifically, the bilateral 1 1 SP form (one company or buyer and one supplier) is still com mon
but
now
use
tone
buver and two
manv
either
or more
bilateral form
supplier,
suppliers to
in
multilateral form, Tor
pie. Kodak
e>nlv
a
be the se>lc
but cooperate in
buyer's e-xisimg IT (i.e., plat efficiency) while some focus on jointly developing
new
and
IT-based
capability
ue,
leverage). platform efficienc) partnership reduces costs or inefficiencies by standardizing IT and processes while
bility
a
a
enables
partnered partnered
onsulting)
company itself. But do they create value?
capa
knowledge
a
buver
\o
offer
new
propositions bv leveragipphers unique 1 1
value
knowledge- kodaks partner wuh IBM
eil die- loi
in,
i
is an
Broadvision, And create
to
exchange for steel products, ol die
create a
is
value-
'
SPs
1 I
h
partnership,
because
the)
supplier specializing
m
I I
their participants How is value allocated
participants? We Imd suppliers extract more Irom IT partnerships
among that 1 1' value
than huvers This result empir ically validates anecdotal evi dence
pliers
suggesting that better able
are
value because thev
building We
01
moie-
the total
i
one
Although delivered
some
from lanu.uv December U, 1999
live-
ana
and used i
anl
i
statisticall) siglllllhanges in a compan) s
stock markei valuation
in
allocation ol value among 1 1 suppliers foi different I ["SP
700 lisp
We-
to create
specialize
knowledge performed additional
all
suppliers
IT sup
IT
below represents
I. 1988 to
a
value lor all
forms and loci
ovi
partnerships
that IT partner
create
ed between the buver and
lattei
believe thai
ships
do
value created musl be allocai
Show Me The Value II
We Imd
analyses that examined the
(
announcements
in
ol
urc
value created and allocate
unique opportuni
loi examining value
-
Silknet,
greater
ation and allodiums because
.
the first neutral
example
dei thev
ty
coins
can create
value from a company's IT than the company itsell But le-pie-seni
example
and eSteel
with ( S(
partnership
an
Buyers form IT part nerships because they believe that a supplier specializing in IT knowledge can create greater value from a company's IT than the
leverage partnership
exam
with IBM and Accenture
28 Builders
innovative
capabilities
with IBM, but Rveler
lersen (
some
form
ship
companies
the multilateral form
suppliers) suppliers compete against
partnerships extracting value Irom
us on
A
companies struggling to create value Irom IT.
Although
loe
as a
Ihe
graph
our
findings
partnerships
degree ol [orange bark the fig ure shows thai suppliers that participated in capability lever value
age- 1 1 SPs
achieved
[striped bars] more
value than sup-
facultynews
1.6
o
*
allocated less.
being
1.2
I la\c buver
1.0
ly
CIOs fundamental
erred? We argue
0.8
S
is
buyer
a a. ID
We
lie)
0.6
that multilateral
o.4
leveraged suppliers
assert
being
only lor dis
Platform
Bilateral
pliers form
that
participated ITSPs
efficiency
I Multilateral
plat
m
[solid
bars]. This result suggests that IT-based
new
creating ties
IT
making
more
conclude that
capabili
value than
create more
in
kev driver lor
as a
This result
partnership. suppliers are nol equally endowed with IT knowledge As suppliers coop suggests that
the total value created
increases.
creating value Tor example, consider the Internet and its
business-to-business
More Is Not
Always
Better.
multilateral plat why form-efficiency suppliers [solid So
were
red bar] unable
to extract more
value than bilateral
suppliers
buver
to attenuate-
risks associated with
capability leverage projects 1 1, nee, buyers are placing a on premium cooperation. Not does the emly significant allo multilateral
lo
capability leverage ITSP repre sent suppliers distinctive IT
nounced
in
value alloca
especially pro for suppliers that
par
must
he allocated
more
suppliers resulting
ticipated in multilateral, capa bility-leveraged ITSPs [striped red bar]. Thev were clearly
smaller allocations
allocated the
eral
platform
ers.
Moreover
most
value. This
intriguing because a multilat eral ITSP contains more suppli is
ers
than
a
iged
bilateral ITSP
bar]. Value between
a
capahihty[striped blue-
must
be allocated
buver and
two or
suppliers Given that a multilateral partnership lor our sample contained em average three suppliers, the toial value created from capability- leverage multilateral is quite signifimore
canl
We conclude- thai
number ol a
suppliers
multilateral
as
the
partnership
can
leverage more distinctive IT knowledge assets than a bilai-
lei
m
multilat
elheieiicv
suppli suppliers know ledgemore
possess the IT needed to standardize IT and ses
alter
Becan
available
natives ate
platform-ell compensated
buyer. suppliers
iciencv
and risk
flexibility
mitigation.
Compensating Our results
I
question Should tinue
to
additional buver
cen-
form multilateral capa
bility-leveraged a
a
insights
ITSPs? Given
allocated between buver and Us suppliers, a disis
proportional allocation ol value to IT suppliers can suggest thai
to
IT and ITSP
list
managers value
create
both
buyers and suppliers Information technology sourc
to
lew
a
not
reside wuh
a
IT
single
supplier Hence, identifying suppliers, effectively transitioning Irom internal le) external sourcing, and moni toring supplier performance these
will be the
new
challenges
CIOs.
Third, partnerships will increase in importance critical driver e>! effective
partnerships are an effet strategic option lor man aging and creating value from
value network A buver create
significant
and neither
required result that
wheihei II
lo
participate
SP but how
aging
in
an
Moreover, ol ITSPs
portfolio
a
longer
is no
[
is
not
Matching appropriate locus
geneous
value created I
e
ill
w
compensate cooperation
and other
and
intangibles,
buyers
suppliers should endeavor the- total value
available loi ehvMon rather
form
than compete fiercel) for siiiallei total value
maxi
r
hi-Hyon
Lee
is d
reated the 111,111
increasingly
shift Irom managing tangible 1 1 assets (e g mainframe
a
post-doc
toral sltlele-nl and hsedhh
oi
ond e-lleetlVe'lv
aging II SPs
oupled wuh the buyers are willing
is
least valueSee
U)
C
U) increase
example, multilateral platform elhcienev 1 1 SPs
value alone
can a
man
homo
I I SP
in a
cannot
single sup plier Cooperation, under the appropriate circumstana
live
IT The c|Uc'stion
as
sup
pliers increasingly operate
ing
wiih
ooperation.
raise ai\
only avail suppliers
it is
performance Buyers and
mizes
(
in contrast, creates
value because
a
to a
less.
are
that value
men
to two or
suppliers knewv ledge,
onlv
as
manv
Distinctive IT
such
valuable
were
available from
are
confronting
it
nerships create less value than capability -leveraged partner ships. A smaller total value
tion
Thev
also represents a buyers valuation ol intangibles
knowledge,
Managerial Implications. Holistically, our results provide
that differences
com-
Furthermore, distinctive
risky
exchanges. The graph
further shows
personal
able from
a
bars]7 Previous results suggest that platform-efficiency part
capabilityiged suppliers [all striped
omputers and
alsei allow
impact business-to-consumer
or
or
i
puters) lo managing ITsPs and knenv ledge tangible assets cannot create significant value.
[seihd blue bar]
on
longer whether to participate in an
compensated not tinctive IT knowledge but also for their ability to cooperate with other suppliers. Cooperation among sup pliers alkwvs a buver to be flexible. Multiple suppliers
cation ol value
contem
porary economy, innovating with IT will increase in us
importance
Averaqe
eral
erate,
efficient We the
Overall
Capability Leverage
Efficiency
no
ITSP, but how.
capability are
The question is
ilssiHI-
ilu- information systems department. X Venkatraman is the David / McGrath,Jr. Pro/essoi .'I Management John oie
m
Henderson
is
the Richard C
Shipley Projessoi oj Management.
,
http://manaqement.bu.edu/fac/research_center/src Leaders 29
SMGfaculty
the News.
Faculty in The media
stock
risk However, the theo
image may be limited
Electric and the
ry
because Michelm
Environmental
ratio
treats
Agency dis pute who should clean up pollutants in the
tions
gains the
to
already marketing i
be
itsell
as
the
safety-
ious buyers
"It'll
battle,'
long, uphill
a
eil
history
a
company for
tire
its
improve
has
he said.
York
Times. Professor C. B. com
mented
new
the
on
redesign
will highlight quality control
nme Us new
procedures. ion m
its
io
"Ford's avoid s.iletv
advertising
"We
pub
22%
for
a
safe haven
for their money and
are
stocks.
I
hose
vvhe)
want te>
secure
lock in
base ol
you can't beat I bonds You don't even have to a
understandable but
retirement account
Firestone had little
vou
choice
penalties
in
issue It's
addressing the lleit
idea.
good option they one
the wall,
Us
just
the
a
the only
Us
I ord wants the
is
Firestone's
moiie-v
access to
public problem
problem,
30 Builders
advertising
m
ihe
applications
last year
While Other
to
how
Its
nv
a testament
tunes
changed
that
can even
ing
a
time
are
experienc similar rise,
increasingly
attractive
spill
26 Wired current
ntuin
dot-
has led
aeade-mie upturn Manv industr) workers
lo an
going back le)
improve their skills and enhance their le>
attractiveness
employ ers
u>
future
Dawn
gen-
Februarj
21- Investor^
tne,
Professor
systems
Jesper Johansson [the authors] know ibout the have
face
k market
advice prov ided by ihe investment industry l tu-
financial planners, and based
government
is
upon l l.uiv
Markowitzs
model published in 1952 Also known ihe modem
as
portfolio
espouses the beliel thai diversifying
theory
u
No,
neM
a
such into
Do a
systems
breaking?
are
the) objective,
are
Never put all your eggs in one bas ket. Zvi Bodie explains sloe
ea-
believes Information
breaking
risks in the
aftei
a virus
viru
the
potential
damage control, like
Anna
virus was
accessibility- and
Do
hie Use-el
recent
program a tenyear-old could use. The
makes the School
compafloat a
out
always
elow
created bv
thev
pointed
Investors
I om
1 5- Wired
Ms* M B.A program
efforts mostly
News. Ihe
February
Galolo
/illSIIKSS Pill/v
February
ones.
have
ronmental regulation, corporate relations on
downside
a
campaign like this. In the earlv days (i| envi
sche>e>l
its
iik rease
number eil
schools
Organiza
varia
same as
such programs inc I es the chances ol more
a
Andrew Hoffman
are-
Firestone should have
about
ve seen
compared
doesn't have that luxu II anvil
admissions, reveals
tional Behavior
while Firestone really
ry
Galolo, acting director
to this
to
Profi
believe the
concerned about
and
Professor in
the \aldez
back
Bhattacharya said
to
re
il
rela
lic record Assistant
Fxxons stiategv
have
has
a
righteous
and admired
lorv
states.
income.
a
public
a
upside
erator
ol
put I bonds into
was
Andrew Hoffman
his-
saving for retirement
while
Explorer,
dump
claims
Bodie advises.
us
by
the years follow World War II. GE in
can cut
detractors sa) the
kournikova
launched
Finance Professeu Zvi
empha
GE's
s
holdings
News. The
tions campaign that
avoiding risky
new
was
Street Journal Wuh
where Void will
ol
hick.
ing
Ford and Firestone. the
Hudse>n River,
the economy slowing down, investors are
looking
advertising strategies ol
size
w
the EPA believes
ing
March 7- The Wall
Bhattacharya,
Protection
caused
Bhattacharya
4 -The New
experts.
March 4- The New
ability
April
our
York Times. General
And Firestone's
iei
C.B.
tap
No
spcatie as
Svstem X?
usually These
simple
vandals,
w
he)
basically get their kicks
from
destroying things
SMGfaculty Hoosier is Chosen for
Executive Leadership Center. for other
people," says Johansson That does not
make them elite,
nor
does
assistant
hike
are,
other than
narrow
BusmessWccfc Online old
Everything
Irom any other
Jeffrey Heisler
fifty
the
Management game. "The
rankings
School's resources,
our
from its
sive
school,"
are
outstanding
to its
impres physical home,
faculty
says Lawrence
is new
please more
beat its rivals in the
rankings. best graduates toe-to-toe wuh the best graduates
22-
Januarv'
seeing
School of
listed among "I'll put
minded deviants
than
was
BusinessWeek's top
would
Dan McGurrin
time
comes at a
recently
in a verv
circle of like-
Nothing
salary
when the School
knowledgeable they
Dan McGurrin Lands Executive Director Post.
didn't
Services. "But I
expect this." The
prove how
it
dean for Career
second to none,
though the rank fact," says McGurrin.
even
again Strategy and Policy Prolessor Anita
crossroads, Heisler says, 'You shouldn't be look
December 1- The
McGahan and Harvard
ing at what to
New York Times
long advocate, don't
Business School
now in terms
Finance and Econo
joins the School from Kelly Executive Partners,
Professor Brian
strategy moves so much as you should be look
Silverman studied the
widespread that
contention
innovative
what stocks
primarily
nies were
ot
nght big
ing at what you
really right now,
want to own
compa
do
could
funds
or
buy
now
younger, start-up types,
vou
while older companies in traditional sectors
you would expect
less
were
To
creative.
January
graduates
are
tion.
in
especially
and seek them
nesses
partnership
in
with small-
>mpanies. "The bot tom
line
afford
to
terfeit medicines
nobody can be smug," says
is,
based
the
on
1 7- The Boston
to
pro
He now heads SMG's
Leadership Center.
The Center, located the School of
on
the fourth floor of
Management, supports
the work
of the School's various research centers and
rights
technological
by offering meeting
and
space
professional support for
and educational functions.
development and support services to
our
various academic centers and programs, such as
The Leadership Institute and EMBA," says
McGurrin. "At the create
expand
to
new
our
same
services for reach to
a
time, we'll be striving to
existing
customers and
broader client base."
lain Cockburn
up-liek
says Jennifer
Western
economy," Lawrence.
drug
companies jusl don't like the idea that the n
proprietary rights can be got around via the oi
door,"
Alumni, Keep In Touch. We encourage you to
pull out
Classnotes card and let
us
the enclosed alumni
and your classmates
know what you have been up to. We welcome your
photos and stories.
says
kburn "Thats the
bottom line lis to
Globe. Assistant
Kelly's
clients, which currently consists of the School's
$89,560. "1 would havean
Director of
oversee
Kelly MBA graduate, McGurrin says "My immediate role is to provide valuable busi
i
Januarv
coun
and
hack
McGahan.
twenty nationwide.
ness
year,
expected
as
helped
Executive
in
established companies often seek more patents busi
he
Programs,
University's Kelly
Serving
A 1995
starting salary jumped thirty- percent Irom last
core
School of Business.
companies, from poten
The average MBA
climbing
and life
semi-independent executive education service
training
development products. However,
new-
graduate
executive education center leap into the top
all the
monetary compensa
ways,
SMG
an
let him fool you. McGurrin
problems arising with pirate pharmaceutical
get
tive processes for cur rent offerings and
right
that
associated with Indiana
Custom
2- The Boston
ting noticed
outside their
Cockburn expresses ins about the
prietary
startups and concen trated on both innova
of
a
Professor Iain
academic programs
MBA
as
yet reflect
If he sounds like
Globe. The Schools
tech
developed nologies as actively
mics
tially dangerous
to
lor many,
want to own manv vears
the contrary, thev lound established companies new
that
don't
ings
a
threat
the business model.''
Professor of Finance
Jeffrey advice are
Heisler offers to investors
lacing
annual loses
lor the first time years.
who
in
Of this economic Leaders 31
alumninews Alumni Board Achievements Reflections from
Pear
Gerry Iseda.
Fellow Alumni.
op
the
Over
recent vears,
including
tenure
have been
Recognition
Distinguished kadi
excit
build
goal help lifelong relationship betv is to
the school and
our
a
BOSTON I N1YERSIT
worldwide
of these ments
a
number
a
active
very
alumni and has
An
by
ent
e-mail hsl
website
a
va>ung alumni
ha
The address
is
html
~bcrlec7hu-snigvuc/inde\
In March, the Committee
gathering
Pub. We had turnout
and
already
summer.
in
an a
at
the BU
excellent
follow-up
upon
event
the works for this
Alumni.
Regional
events,
which
gatherings and
ple
are
regional
ol alumni, students.
business pe\>ironmeni which
ommittee Ik- has
ed
a
new
program
regional diri
spearhead
in w
hie h
intact
GSM
applicants to strengths ol the Bl MBA programs wuh the hope ol converting them to
accepted
discuss die
enrollees ulse) be
I
he
( ommittee will
exploring
additional
engage our geographi diverse alumni base-
wavs to
outstanding job
identity ing
senile
ol
in
our most
accomplished alumni, who are recognized at the awards luncheon
communuv m .m env
and
Student This
Programs. the hoard estab
networking
exchange
e)l ideas
lished the ^\k. Alumni Be Mid
Programs.
Scholarship Fund, which will provide aid U) current and
areer
The Bl'A, the
Alumni
Regional
our
Buletza (SMG E
Mary
promotes
(
Howard (SMG
cally 32 Builders
building
as
past programs.
i
http://mem.bers telocity.com/
a
well
heads
dynamic
specifically
many new and inno vative programs as
The Board has also spon sored "Winning Teams
an
to
keep young SMG alumni informed. Bernard Lee (SMG has created
the Alumni
Board has initiated
Young
and electronic newsletter
is
bv
Alumni Board President.
an
past few
years,
Alumni.
Darlene Masserv (SMG 9 i The committee
hosted
Gerry Iseda, outgoing
In the
Alumni Committee, headed
new
distinguished sen ice to their alma mater, community, and/or industry through the
outstanding develop
We have
ass
Awards Committee, chaired share
to
with
Young
Alumni.
the Board
vear.
annual Alumni Awards The
alumni base I'd like
of
the School in recognizing alumni who have provided
ing programs and initiatives established for present and future alumni of SMG. Out-
ultimate
the Career Center.
Board, there
number ol
a
by
my 2-year President ol
as
the SMG Alumni
ni
program to enhance offered to SMG alum
a new
serv tees
university-wide
vear.
future students Proceeds Irom
alumm association, sponsors ( areei 1 tecisions, ai\ annual eveni ni
designed
on a
\ ,u u
i \
to assist
ol
alum
careei issues
( Ihe SMG Board established tins
event
in 1995 ) David
Pottier(SMG '86, GSM die-
1. areers
He also has
-
Committee
worked wuh
Golf Classic May 14, 2001.
fellow board member |ack I loward in helping \ssisiani .
Dean lenmler I
awrence
Attend the 3rd Annual SMG
devel
Visit
our
tournament website at
informationfairway.com event
keyword:
smg
alumninews the annual goll
tournament
chaired bv Bill Walsh (SMG
well
as
butions,
are
as
Beta Test A Success
other contri
working
build
U)
the endowed Fund. This spring,
host A Toast
will again
we
Help Launch Local Beta Gamma Sigma.
SMG Grads
the Future
rn
receptions for the graduating classes ol sMe. and GSM This as
their first official
is
the
newest
SMG Alumni
event
members ol the
population
Several ment
Gifts
the School.
to
Finally.
I'm
announce
done
its
pleased
pari
in
to
help
to
its
the national
area
rightful place rankings. Gift
end of this academic year, the i will reach 100% giving for the first time, joining onl) a select lew schools within
loft)
te>
achieve ibis
..
We
are
always
seeking
increased alumni participa tion, and invite vou io join in our
events
and activities We
also actively work
to
identif)
beiard members each
new
the AAGSB.
Director eif
Gallagher Development
SMG Alumni
[email protected]
ing
I
i
)ffii
i I
com-
the
opened
October 26th
with
Kicked!
event at
a
the Sheraton
Michael
McCarthy, Treasurer, Geoffrey
Hum Hotel where Fred
Kent (BU MBA '96),
and Dorina Lauza, President.
Smart of Smart Bandwidth.
LLC, led
discussion
a
the
em
future eil the Internet On February 15, Professor Michael
L'niversilv alums
Center for Ethics
College, presented on
there
are
elected Chair ol the
outside the Beistem
Large
(
ommittee,
grads Paula
L)7) and
"97)
I
Sigma's i
and
mono is we-
Bo
ion an a
in
have-
m
this
area
wuh
In
and
s.m
establish
1999, Atlanta D.( Diego all opened
aklllllll
Gerald Iseda, GSM 89
into die group lor their .tea clemie achievements. The
work dial will stretch
President,
creation e>l
ihe country bv opening three
SMG Alumni Board ol
is a verv
Directors
lor local BCiS memb slates
a
BosU)n
positive
chapter
development
to
plements
le'.lle' all
foul
new
local ehaplers
e
haptei
com
SMG's traditional
alumni network bv
including
other BGS schools Boston
e
exciting to be a pan reating die local chapter,'
savs
Kent
We have
manv
ele'elle.Ueel anel lalcntcd
mem-
a
open
chapter
e
is
all members ol
le)
National Beta Gamma I he-
new
the
see
v.
lub encourages
hools
Sigma
profes-
to
join
and pro\ ides free annual membership fo learn more
about the Boston
membership. It's
ol
lew
lle'l across
each
Kent.
The BGS
e
definitely
The Boston
goal
quickly
to
network in
in
next
chapters and ibis year n. San I rant isco and Hie
a
chapter network glow prominence ewer die
local ing
Pallas followed suit
We
ciiv
alumni
Is lo
v
I
than
more
leaders while also proiding a means for BGS mem
bers who relocate
IS schools
nationally,
hold
ness
who
440.000 members
the
initiated
reside
are- o\
members
8,000 members i
iolden
elected At-
t ommittee
almost an
I urlan
foanne
were
these Board initiatives
ne>w
to
thai will pro
twork among local busi
mem
area
plan
we
events
vide a forum lor professional growth along with other perl eche networking events The local chapters are a great wav
alh
thousands ol
bers who attended sdieiols
\I
in
Furthermore, loi
work environment
Geoffrey Kent (GSM "96)
(GSM
t
Massachusetts
how ethics impacts the
was
and I mvcisity ol
Suffolk,
his vi(
invoked and
quarterly
Northeastern,
Bent
at
joined
were
by theise from Babson, Bentley, Boston College,
Hoffman, director ol the
Beta Gamma
ot
by
a
ebruary 2000, ilunteers formed a
chapter
hopic
will inspire vou to engage ic engage with SM< i
with
in I
while Bl'
and Alumni Relations,
[email protected], eir Eileen Seman.
Starling
Membership
either Ruth
for
society
committee The
steering
year.
tact
(BioS), the
business schools accredited
everyday
II you have any ques tions, please leel tree le) con
ol Beta
Chapter
Sigma
mittee officially
the
rankings By
Gamma
reception
and the Alumni Board factor
the University
launch the Boston
Alumni
national honor
the
participation rates hv the general alumni population into some
graduates recently
helped
that the Board has
School take
school e>l Manage
events,
visit
national www
chapter,
And future
the local
society's
or
web site
betagammasigma
at
org
www.bqsboston.orq
bers Irom local school-. Leaders 33
alumninews
School of Management Calendar of Events
Giving Again. Giving with
Planned
All events
on
campus, unless otherwise noted. For further
information, please contact the SMG Alumni Relations
Arthur Brown.
Office at 617-353-5618.
Spring Semester 2001 Cmdr
Lt.
Arthur Brown
filled
roles,
March 22
SMG
on her part, thev married and
March 28
SMG Health Care
University donor He recently provid
I
anted
establish
$80,000 chari
table gilt annuity to his alma mater and
established the
w
lasting
Arthur Brown
Evelyn
B.
and Arthur J. Brown Scholar ship Fund.
March 30
my wiles
April 25
April 26 April 27
donating with my late wife, Evelyn, many times. I thoroughly en|oyed
Massachusetts, who show
May
myself
there. 1 had
time
and made
keep
with
a
his
name.
always joined the Navy
attack and served
on an escort
that ensscrossed the
A charitable
contract between
Greenland. He later saw action m the Pacific and
this
case
and
a
earned the Bronze Star for
creates
to
combat heroism The oil icers talents also lent themselves
lo success on
dry land. Brown, who's motto is accept things as thev come and make
genul friends,"
benefited
Irom his
eiwn
has
advice
is
qift annuity
Atlantic from Somh America
Boston
University,
donor. The contract
fixed
annuity
pay
ment to the donor, and
suc
a
cessor, for their
respective
lifetimes. A portion of this
annuity payment Charitable
qift
is tax-free.
annuities
devoted
to
the
same course in
34 Builders
Management Class of '01
SMG Alumni Golf Classic
Juniper Hill Golf Course, Northboro, MA
18-20
Entrepreneurial Management Institute Seventh Annual Recognition Reception SMG Dean's
May 18
Advisory Council Meeting
Reunion 2001
www.bu.edu/alumni/reunion/
Silver and Gold Reception President's House
May 18
SMG Class of 1951 50th Reunion Dinner
May 19
SMG Alumni Awards Luncheon
May 19 May
20
June 7
SMG Class of 1936 65th Reunion Dinner Commencement 2001 SMG Alumni Board of Directors
Meeting
Fall Semester 2001 Sept. (TBD)
SMG Alumni Board of Directors
Oct. (TBD)
Entrepreneurial Management Institute Open House
October 12
SMG Dean's Advisory Council Meeting
October 12-14
Homecoming / Parent's Weekend
October 27
Alumni
Nov. (TBD)
SMG Student Awards Ceremony
Dec. (TBD)
SMG Alumni Board of Directors Meeting
a
fixed income for life and
The donor(s) know
qains.
their support will help many
University
pro-
For more information,
Estate
Boston
I niversity when the two
Graduate School of
Meeting
Leadership Conference 2001
contact the Office of Gift and
but also his best friend met at
Management Class of 2001
vide senior donors with
qrams in the future.
Evelyn,
merely- his wile,
School of
are
students and
was nol
Reception
beneficial because they pro
talented oil painter And he
They
May
14
charity, in
a
NJ
New York Alumni Presidential
Go to a
favorable treatment of capital
mo
14
May
performed with the New York Metropolitan Opera cho rus and also developed into a He's
who
May
May 18
Charitable Gift Annuity.
the week ol the Pearl Harbeir
Jersey Alumni Presidential Reception Country Club,
Champagne Send-Off
me
Brown
ship
2
2035 will remember
beyond I
New
Alumni Career Event
A Toast to the Future
graduat
ed in 1935, but students well
great
memories
is
financial need. Brown
Career Decisions 2001:
New York Yacht Club, New York, NY
Scholarship permanently endowed fund for students, preferably from
naturally
Nonprofit MBA Program Anniversary Celebration Civic Leadership: Is There a Crisis? SMG Public and
Livingston,
a
"My gilt
in Health Care
Cedar Hills Golf and
says Brown. "Boston University was close to us both." The Brown
March 31
from my love of the School. says Brown. 'I talked about
eame
Management Alumni
25th
to
memory and do thai would please her.
things
at the BU Pub
Doing Good while Doing Well
something
in
Young Alumni
Association Panel Discussion
were
is
a
admitted wearing
together for forty-six years.
the latest ol which
ed
SMG Alumni Board of Directors Meeting
some
down"
IC. A5U-ias
manv
March 8
After
erature
took
English
lu-
2347
Planninq
or
at
800/645-
617/353-2254.
http://manaqement.bu.edu/alu
classnotes 1
I -,
Wu
i
\l
Earl R. Osterstock (GSM
Graduate School of
'86) of Lenhartsville, PA, is the on-site business manaqer for Air Products &
Management Andrew J. McSween iGSM
'50) of Portland, ME, has
Chemicals. He is also
adjunct professor in
University, located Center Valley, PA.
William Stewart (GSM '68)
of
MA, retired
Sauqus, computer consultant. He remains
as an
adjunct comput er science professor at Bunker Hill Community College in Charlestown, MA, and North Shore Commun
ity College
in
Lynn, MA.
senior vice
president, e-business, and CIO for Causelink.
Vibhu Juneja (GSM '87) of
Jersey City, NJ, recently relocated to the New York branch of ANZ Investment
Jason M. Kotlen (GSM '69) of Trumbull, CT, is executive vice
Sean Auerbach (GSM '87) of
Duluth, GA, is
an
president of Bedding
Bank after
havinq spent
thirteen years in its India and New Zealand offices. He is
Shacks, Inc.
vice
president of global
The
Cheetahs. The Paints. The Do any of these sound familiar? If
|ohnnies.
baseball
teams
then you already know the Frontier League. If they don't,
they do,
Mike Lieberman (SMG '92)
introduce you Yes, the Capitals. to
the
to
Based in
Springfield, Illinois, League is an inde minor pendent league system. Established in 1993, the league the Frontier
boasts
a
72) of Chelsea, MA, is presi
manaqes the New York portfolio of capital goods
across
the Midwest from
dent of Wizard
and diversified
Pennsylvania
H. Freedman (GSM
Security,
Inc.
corporate
Donald Tsao (GSM 75) of Laurent Malek (GSM '89) of
retired.
Milan, Italy,
Edward Miller (GSM 78) of Glen
Ridqe, NJ, recently
retired. He was CEO and
president of The MarketNet Group, which provided tech nical consultinq to capital market
tradinq
institutions.
was
promoted to
recently president
vice
and manaqinq director of the
Disney Channel, Italia.
He is married and has two
children: David, 3, and Lila, 18 months. Carlito Millan (GSM '90) of
Upon retirement, he sold his
Troy, NY,
firm to Reuters, Ltd.
York State
Bruce A. Harris (GSM 79) of
Authority. He was in August 1999.
Chatham, NJ, is of counsel for the law firm of Riker,
Danziq, Scherer, Hyland, & Perretti LLP. Edward F. O'Donnell (GSM '81) of Greenville, Rl, is the director of business for Teknor
analysis Apex Company.
Ed and his wife, Sarah,
enjoy
life
in
Rhode Island
with their seven-year-old son, Nate.
Gregory E.
Truman (GSM
'84) of Wellesley Hills, MA. is an assistant professor in
Barry
works for the New
Thruway married
Zimmerman (GSM
'90) of Natick, MA,
was
selected
Aqent of the Year by The Bulfmch Group, a Guardian Life Insurance
Company General Aqency. He recently became a mem ber of the Guardian Life Insurance
Company
Leader's Club
as
tions. He assists individual
the Mathematics and
clients with advanced estate
Science Division of Babson
planninq and retirement planninq as well.
College. Paul A. Ware (GSM '84) of
Stouqhton, MA, is founder president of PW Resources, a quality assur ance and requlatory affairs consulting firm, which and
serves
small and medium
companies in the sumer products field. size
con
Kenji BabaiGSM '91) of Toshimaku, Japan, works for Russell Reynolds Associates, Japan, Inc.
Ontario, Canada.
to
competitive.
Over the past
Carolina and Texas and California.
to
of Dunwoody, GA has returned to the US after
workmq for The Industrial Bank of Japan in Toronto
Montana
Serving
as
assis
manager for his
general teams, he's picked up some nice hardware along the way. He and his staffs have garnered a fran tant
chise of the year award in the Texas-Louisiana League, a staff of
the year award in the Class-A Midwest League, and a Pioneer
League championship
minor
league
is to own
a
team,
says I leberman. He picked and chose
his
courses
ambitions
based I
on
his hardball
enrolled
in
proposals such
Whatever Lieberman is
became assistant
general counsel and corporate com pliance officer for Boston Medical Center, where she is
responsible for
both the
one
of the youngest
managers in professional baseball and his proven record of turning financial cellar dwellers into
profitable organizations
makes him the economic
lent of
good
equiva
left-handed
pitcher Springfield Capitals thev would no longer be a sine tlv baseball operation, I received some quizzical looks," a
"When I told the
whether that
means
fireworks,
giveaways
they're
di
in the
park,
show them what
baseball
is
free concerts, Once'
then well
minor
league
all about."
entrepre
activities.
of
league expansion City, Nevada." applications he
general
office.
Murphy (GSM '91)
while mine
franchise in Carson
hospital and the facility practice plan compliance
Karen
businesses
minor
was on a
Tokyo. He is senior vice president at their Atlanta
and
were on
restaurants,
as
says Lieberman. "We need to gel fans inlei the stands en masse,
with the
Helena Brewers.
"My ultimate goal
man
agement courses and applied them to baseball. Other student's
made, they worked. At 29,
five years, Lieberman crisscrossed the continent from North
Norwood, MA, recently Akihiko Mabuchi (GSM '91)
in base
recently
graduation, joined Capitals as general and has designs to make manager the organization both profitable and
and small business
neurship
the
Zimmerman specializes in
corporate benefit strateqies for pri vate and public corpora
scattered
teams
ball since
well.
and executive
dozen
Lieberman, who's been
and financial institutions.
San Francisco, CA, recently
wants
Capitals.
transaction services, and
Jeffrey
Minors.
in the
Crocodiles. The
at
DeSales
retired.
Majoring
an
Ann
Thornburg
(GSM '91) of
Brookline, MA, is partner in charqe of the northeast consumer industrial prod ucts & services practice at PricewaterhouseCoopers
Janet (Ramirez)
Feigle
(GSM '94) of Los Angeles, CA, was married in
September 2000 to Charlie Feigle. Bridesmaids in her wedding included fellow GSM classmates Corey (Hadnagy) Stranger, Sharon (LeFever) Zablan, and Susanne MacDonald. She is
LLP.
Leaders 35
classnotes a
market-planning analyst
at Princess Cruises. Charlie
is
a
senior director of
livinq in Israel since his graduation from Boston University.
An Island Treasure.
finance at BMG Music
Stephanie
Publishing.
Lee Martin (GSM
'98) of Essex, MA, recently
Keith Gottfreid (GSM '95,
became
LAW '92) of Scotts
ment coordinator, Latin
Valley, CA, is a senior vice presi dent in law and corporate affairs for Inprise Corporation, also known as
Borland Software.
Stamford, CT, is
a
manager
of marketing and supply chain
operations at
develop training
ment programs and
ing
as
well
writ
as
proposals for disaster
relief and general
recently engaged
to Kazim Isfahani (GSM '95).
of Westford, MA, is
funding. a
baby qirl, Emma Cecilia Zuniza, in September.
associate at Hale and
an
Dorr LLP.
Brian Clark (GSM '96) of
Somerville, MA, is director of
manufacturing at Antigenics, Inc. He celebrat ed the birth of his daughter, Lauren Julia Clark,
at
Thinking
is a
controller
Investments. He
chairperson of the membership committee of the Boston Chapter of was
elected
Beta Gamma
Sigma,
national honor
months and
the
society for
schools of business and
a
divi
buy dresses, linens, anything and everything. Welcome to Courtney O'Neill's world. A 1989 SMG graduate, O'Neill
of San Francisco, CA,
recently left Genuity, a sales and marketinq company, to start an independent consultinq firm for web-based married in
'98) of Atlanta, GA, is vice
contrast
International
International. Melinda Joy Katzman (GSM '99) of Boston, MA, recently
tomed the foundinq
really
auto
Systems, Inc. as the vice president of application
and
Braintree, MA,
Stoneham, MA, is vice presi dent at Maiden Ventures,
Industries, Inc.
Kai Deneke (GSM '98) of
Gregory
Hamburq, Germany is a consultant at McKinsey Company.
&
is
assistant commissioner of Health
Raz Hazan (GSM '98) of
recently promoted to marketinq was
director of the Assisted
Livinq Facilities for the Elderly division of Bayit Bakfar Enterprises. He mar ried in April and has been 36 Builders
Stofega
00) of Wilton, CT,
Thomas J. Goodfellow (GSM
Kadima, Israel,
E.
a
(GSM
is
the
Recovering
managed
guaranties
John T. Williams (GSM '00) of Bronx, NY, recently became an Equity Research Associate for Bear, Stearns
a
satisfying and
family
"What's
buy
the
shop,
loan
my house but I knew it was on
opportunity I couldn't pass
up,"
says O'Neill. The ex-college counselor turned townie hasn't looked back. Still managing the store herself, O'Neill has "found her niche and is
a
sticking
to
it," she-
lessem she learned
when
mv
Phyllis
ow n
saw
at
quoting
SMG.
customers
buy
was
recent
(a.k.a. George
preservation. She received recoqnition for her contribu tions to the Council for the
Costanza's dad in
Seinfeld) did all bis Christmas here, huv ing gilts for lav
Leno and the NBC
Sony
secretaries
|eirv and I lame, you didn't
make the hsi
Arts and the Animal
career
Protective Association.
ment. David is married, with
four children and four
of her first husband, Charles
issues
high
means
of Neiman Marcus, among others," savs O'Neill. "Once Jerry Stiller
honor her years of civic
concerninq
which
big sales numbers and celebrity shoppers. "I've sold items to BillyJoel, Miami Dolphins owner Wayne Huizega, and the Marcus's
Manaqement
activism
dinner
Nantucket and the
Phyllis
of conservation and historic
neighborhood
begins again,
shopping items
shop, it reflects well upon lasie- and stv |(- Its great!)
Thomas (SMG '41) of
season
an
cele
Nantucket
returns to out a
ly inducted into the Greater
brated his retirement.
a
hands.
Woonsocket Hall of Fame to
Myer of Naples, FL, recently
lot of fun
fun is
"
School of
H. Friedman (SMG 38)
a
not
shows break up the monotony However, summer eventually
Woonsocket, Rl,
& Co., Inc.
shop
chance
a
for
up for sale in 1999, Handblock was delivered into her skilled
from the
IBCA, Duff & Phelps.
the
in
a severe
in town and off island trade
"Today,
at Fitch
the island
from
parties
associate director for finan cial
to
winter,
to
Vic Sharma (GSM '00) of
Philadelphia. PA,
but
an
Danvers, MA.
seasons
friend. "Just one season" turned into six and when the shop went
business
is a
manaqer at ITW Plexus in
in
a
adventure," says
accident, she took
"I took
him at
[email protected].
City of Boston, Inspections.
in sales between an
O'Neill ventured
tive team of OPTAX
support. OPTAX is market inq the first objective meas urement device for hyperac tivity, impulsivity, and inat
a store
O'Neill.
1993.
execu
"Owning
location where there is such
is
Services at SunTrust Bank
division of Maiden Mills
the
Nantucket Island.
Alex (Shatov) Fields (GSM
September 2000. E-mail
Hyde Park, MA,
the successful
on
a
tention in children.
Shahinaz Nabih (GSM '97)
'98) of
owns
Handblock
Bill Dunn (GSM '00) of
was
.
Massachusetts.
president,
beating bags
to
sion of Asia-Pacific.
manaqement.
ventures. He
customers are
A native of
Kent (GSM '96) of
Newton, MA,
a
Street. But flash forward six
dishes.
pre-sales support enqineer at Harte-Hanks, Inc.,
nearly
empty Handblock, a ladies apparel and housewares store on Main
in
December.
Geoffrey
Melbourne, Australia, is
cob
the
each other with their Gucci
Dennis Sam (GSM '98) of Belinda M. Juran (GSM '95)
on
as
old-fashioned
illuminate the
lampposts
Humanity. Her duties include managing pilot
for the area,
sets, the
sun
She and her husband had
Elizabeth Arden. She became
The
lightly
blestone lanes and,
American and the
resource
tails
siuwv
develop
Caribbean, for Habitat for
country
Jennifer lorio (GSM '95) of
resource
H.
has also established
endowment
in
with the US govern
qrandchildren.
memory
Robert Searle (SMG '56)
Palmer, to provide schol
arships for financially disad vantaged SMG students.
retired from Marriott
International in
January
1999, where he
was
David S. Friedman (SMG '51)
hotel franchise
of Bowie, MD, retired from
ten years.
a
the
attorney for He currently
classnotes beach resort hotel company
enjoys qardeninq, cookinq, readinq, travel, and follow ing the exploits of the Red
and his wife, Linda, and son,
Sox, the NY Giants, and the
Corey, have lived
Duke basketball team. He'd
Bay for five
in west central Florida. He
in
Good Exchange Rate.
Tampa
years.
like to hear from brothers of
Alpha Kappa Psi.
wishes to know if
He also
Bruce Follansbee (SMG '80) of Sammamish, WA,
Eugene
Desaulniers is out there. His
national account manager
for Xerox
mailing address is 486 Woodshire Lane, Herndon, VA 20170 and his email is
is
NASG division in
,
A.
unit. He
one
the
oversees
(SMG'58) of Belmont, MA, a
is
controller at The Danforth
Associates.
Wright (SMG '80) of Silver Spring, MD, started a new position as director of finance and administration
of Beverly, MA, is
at the
with his
own
CPA
of Cupertino, CA, recently became executive vice pres ident of worldwide sales
management Valley, Inc.
at Ricoh
of Norwood, MA, recently opened Goodman &
employee
public is
a
since
March 22, 2001,
Catholic educational
also acts
as
basketball
serves as
English
Handbell
martha_qoodmanajuno.com.
George
R. Hutchinson (SMG
ears.
director of finance and adminis
CellExchange, a mobile infrastructure provider based in Cambridge, MA. Launched in August 2000, CellExchange offers a variety of products aimed at making business transactions tration at
cost
effective.
Barazi
was
looking
al
business when
StefanieHorn (SMG '82) of
Coram, NY, is secretary at V.S.
Chevrolet, General Motors. Susan Peretz Zeiri (SMG '82) of Cliffside Park, NJ, is
reqional
sales executive at
the Orlando Convention & Visitors Bureau, New York
ture
for energy and infrastruc proiects. He married
reqional office. She solicits Fortune 500 companies which are planninq conven
his wife Elizabeth in
tions, national sales meet-
October 2000.
inqs,
and
product launches. boys,
She has two wonderful
a venture
his at
to
offer him
projects.
a
spot in
"I took the
CellExchange,
at
two
the
was
easily
you have
to
be
an
attorney at Merrick Louison
Maureen Prescott Atkinson
& Costello. He
(SMG '84) of Roswell, GA,
promoted
recently
to Lieutenant
Colonel, US Army Reserve
Judge Advocate General's Corps. Currently, he is assigned as staff judge
married to her "col-
happily leqe sweetheart,"
David.
"We have been blessed with a
three-year-old
son,
to
routes business
Rick Busch (SMG '80) of
Dale Keats
mobile device Bui
dent of finance at
Lipnick (SMG '86) of Washinqton, DC, looks forward to seeinq his
PublishersClearingHouse.com.
old SMG buddies at reunion.
Krumholz (SMG '83), is
information ll
a
Senior Officer at Central
Joseph
N.
Demontigny
(SMG '80) of Palm Harbor,
FL,
was
recently promoted
to treasurer at Fortune
Hotels, Inc.,
a
multi-unit
Michael
Goldberg (SMG '86) was recently
of Somers, NY,
promoted
to director of
information technology at UBS Warburg. His wife,
eemipany's
The company introduced the DataSwitch platform win. h
[email protected].
presi
chal
many partners include IBM, HP, Nokia and ( hacle
Brigade, Devens, MA.
vice
now
evangel
must
It's worked. Today tin
advocate, 804th Medical
is
lime
convince, and excite people believe in what you're doing."
Nicholas David," says Atkinson. E-mail her at
Syosset, NY,
only
he sells his company to anyone who will listen. "As an entrepre neur,
Securities in New York. "Our
Jeffrey, 5, is looking for ward to kindergarten next son
year and loves to ski. Our
on
the
run
and in
Currently, CellExchange provides services for Sikorskv International, Ciena Corp., and Primus Telecom. His excitement about
position
sold. And
lenge,
was
of
business grow and define itself." Envisioning the company CellExchange could become,
ist," says Barazi. "You
an
cap
programmers says Barazi. "I got in on the ground floor and I've seen the
Barazi
CellExchange's unique UrgentWare' technology, designed to coordinate business real time.
one
which had
Eric, 4, and Jonathan, 2.
78) of Raynham, MA, is
bis
University engineering grad) called
part of
only
functions
heart,
to start
italist he knew (a Bostem
Younq.
'00),
Barazi is
recently promoted to partner in the Philadelphia
managing director of Tow Asset Management Company. He recently closed a $950 million fund
Bradford N. Louison (SMG
his
music lei
ewv n
78) of The Woodlands, TX, is
For Khaled Barazi (GSM
it's all
'81) of Lafayette Hill, PA,
treasurer/comptroller
Contact her at
phones and beep nearly as rare.
An entrepreneur
Sheri Tucker Risler (SMG
office of Ernst &
Rinqers.
of cell
of PDAs isn't
ing
Kevin, 10, and Sean, 8.
Massachusetts State Chair
for the American Guild of
of the
faster and
was
benefits consulting firm. She also
The
Cultural Center, open to the
coach for his two sons,
Martha Goodman (SMG 78)
an
Washinqton, D.C.
center and museum. He
Silicon
Associates,
Pope
John Paul
II Cultural Center in
firm.
James E. Harris (SMG 76)
and
new
working for companies riding the
you may be
buzzing
Steve
John W. Callahan (SMG '64) a
other mobile devices.
wireless Internet boom and the
Nordstrom, and The Gap.
Dulgarian
or
Today,
Costco, Eddie Bauer,
Harry
Five
the retail industrial business
accounts of Starbucks,
robsearleii'hot mail.com.
years ago, not too many people had cellular phones
te> am
comprises
businesses
founding
SMG, where he analyzed business cases
new
in
Starting
peaked
at
New Ventures and
Entrepreneurship in High Teeb always loved creat and something beginning ing Ventures. "I've
new
me
says Barazi. "And SMG gave the opportunity to put every
thing
in
pi.
Barazi still receives advice from
faculty
and friends of the School,
including Peter Russo, director of the Entrepreneurial Management Institute. "Throughout the past ear, Petei s .uh i< regarding mv career development has been v
e-
invaluable In
addition,
tntrodui ed
III
i
c
\e
Petei has
hange
to
says Barazi.
potential clients," a great s\Ki relationship intend
to
Its
that I
keep
daughter Sarah, 2, is grow ing fast and is firmly in charge of the Goldberg
Harris D. Rafield (SMG '86) of Valley Stream, NY, left
household. Contact him at
fourteen years in commodi ty brokeraqe to beqin a new
michael.goldbergiaubsw.com.
career
He is
in financial software.
currently
a
client sup-
Molly Leaders 37
classnotes port analyst at OpenLink
Megan,
Financial. He shares his
clan. Tim,
success
with his partner
'89)
are
special
as vice
chair
Campaign
Karp (COM
proud parents. Eli in
Thomas Fuerst (SMG '91) of
Solingen, Germany, recently began a new job at Investment Bank CSFB
in
Frankfurt and will be work-
Combined Federal
Karp (SMG
Cooper Karp was born September 2000. Eli's
3, in the Dwyer FBI
of the Central N.Y.
man
'87) of Braircliff Manor, NY, and Liz Susman
a
agent, served
Hilary and her children Gayle and Harris. Lawrence M.
now
in 2000 and is
inq out of its London offices
the campaign chairman this
for the next
Margaret is a senior financial analyst at Carrier Corporation.
and his wife,
year.
wel
Tanja,
on
daugh January 4,
2000. E-mail him at Karen
Dumery (SMG '90) of
[email protected].
brother, Robert, turned
Tervuren, Belgium, recently
three
became financial manaqer
Samir Hussein (SMG '91) of
at the Brussels branch of
New York, NY,
Watson
dent in the investment
during Thanksgiving.
Larry is busy with the merg er
of Chase and JP Morgan, recruiting of the
Wyatt.
and the
School's finest to the
new
Dana
(Compos) Marti
(SMG
get
in touch with
old friends. She is
partner at Marks Paneth & Shron, LLP in New York
City, specializing in taxation of real estate entities, indi
viduals, estates, and trusts. and
was
now
married in 1991
Nancy D. Mathers (SMG '90) of New York, NY, recently
announce
the
of Public Administration
deqree. She
of Duluth, GA, married Carol
ed
Anne Ciulik in
Industrial Associations
as
was
Phonpimol Pathomsak (SMG
also select
the National Defense
for Citibank, N.A.
August 2000, in
the
traditional labor law.
of New York, NY, married
'93) of San Francisco, CA,
at Advent Software. She married Jon Adler
in
Nicholas, in October 2000.
alumni in attendance
of the Year
Karachi, Pakistan, is director
He
Jeremy Viqnaux and Edward Moon. Greq is a sen ior technoloqy architect at
David Cooperman (SMG '88) of Amsterdam,
MCI Worldcom, and respon
president of Global Trade & Advisory at ABN AMRO. Ann Zaslow (SMG '88) of New York, NY,
recently
ried. She is
attorney at
an
designing customer information systems. The
sible for
Netherlands, is senior vice
mar
Smithsonian Institute has
recognized two of his designs as advancements the field of computing.
a
John
Manhattan law firm. E-mail her at
[email protected].
Blodgett
(SMG '91) of
Portland, OR, works
as a
content manager for
Kevin M.
Raymond (SMG '89) of Washington, D.C. was recently named Client Service Officer at the ITS
Company.
tree.com.
Myrene (de
Brian Rivel (SMG '89) of was
of Rivel Research
welcomed
son
Benjamin
Patrick, to their family in
January 2000. Ben joins
38 Builders
2000 to
can
con
her old buddies and
be reached at myrene-
Patrick M.
Donegan
(SMG
'91, JD '94) of Alexandria became
Bay, NY, recently partner of Vision Development, Inc.
a
the Anti-Defamation
Seunq lyst
pany. "I'd love to hear from
Horn Lee (SMG '98)
of Seoul, Korea, is in
an ana
the financial services
industry at Accenture.
my old friends," says Elahi.
Mustapha Bakar (SMG '99)
His email address is:
of Malaysia,
nadeemellahieihotmail.com.
workinq
in
is
currently
London for
Dresdner Kleinwort Benson.
Germany. Currently, he
han
dles all the activities of the
rapidly growing automotive sector in Europe. Nicole Sabat Mackin (SMG
'91) of Atlanta, GA, and her husband, Patrick, celebrated
daughter,
Banking
at
Young (SMG '94) of Washington,
He is
tive,
D.C. became the human resources
and
manager at
Ketchum Public Relations
a
second year
specializing acquisitions.
in
execu
mergers
He can be
reached at mustapha. bakar in
@drkw.com.
November 2000. In December 2000, she
Konstantinos Bastas (SMG
passed the certification test
'99) of Samos, Greece,
for the
Society for Human Resources Management.
an
She would love to
(CAS '97). He says hello to his Greek crew from SMG
hear from friends at
[email protected].
runs
olive and date farm on
the island with
Ryan Ross
'99. He'd like to hear from old classmates at
Company. Elizabeth Wee
for
marketinq textile spinninq com
Susan Elizabeth
training manager for IndyMac Bank in Pasadena,
[email protected].
'90) of Baldwinsville, NY,
in
office in
The Robinson-Humphrey
investor relations services
0.
an
of Investment
tacting
Timothy M. and Margaret (Viele) Dwyer (both SMG
Free Markets
Clearlake, CA, is the national
president Group, a leading provider of Westport, CT.
man
Sloan Lynlee, on July 23, 2000. She is vice president
los Santos)
CA. She is interested in
named
the
is
ager of Automotive Europe at Free Markets. He |oined
the arrival of their
sales
Weston, CT,
in
Web
development firm, www.oak-
Gomez (SMG '91) of
division of State Street
based
a
Frankfurt, Germany director and general
establish in
of finance and
Sven Rose (SMG '91) of
works at Goldman, Sachs &
Leaque.
NadeemElahi (SMG '94) of
joins siblings
in
Co. and Rachael works at
1998.
Company Grand Instructor
Christopher and Alex.
Billiq (CAS '00) September 2000. Alex Rachael
designs integration software for portfolio manaqement
[email protected].
1998.
AidaSamad 'SMG '96) of
Alexander Kohl 'SMG '98)
Wendy J. Knel-Adler (SMG
birth of their third child,
in
in
Boston, MA, works for Thompson Financial.
of employment and
September 2000. Boston University were
marketinq and sales
ate
Baltimore office of Littler
area
Greqq Zollmann (SMG '90)
[email protected].
Baltimore, MD, |oined the
contractinq officer for the US Army. While workinq as an assistant professor of military science at Jacksonville State Colleqe, she completed her Master's
International, Inc.
Aaron's email address is
'96) of Banqkok, Thailand, is now a manaqement associ
Traci Burch (SMG '93) of
Mendelson in
a
City
Lisa's is
[email protected].
in
Executive Tax Services at
where she practices
tives at Nomura Securities
pleased to
became tax manager
two
1.
New York
in
New York and Mass Bar.
Widyaningsih (SMG '92) Singapore recently
(SMG '91) of Huntsville, AL, is
Brothers
firm.
Christine (Roman) Hackett
[email protected].
are
Bryce Matthew,
as a
and is admitted to both the
Ernst & Young.
Dylan Jacob, 3, and
in
Deloitte & Touche's
Analysis Manager. Lisa recently starting work inq as a lawyer for Coudert
Internet
became the vice president
'90) of Newton Square, PA, is director of equity deriva
Andrew Mitchell (SMG '87)
CEO of
is
becoming a Management Consultant
Financial
Andy. Andy is Director of Operations for Savantic
Sri
After
Bumble Products
their son, Dakota
an
mar
Maney (SMG '95).
moved to Bumble and
blessed with the birth of
WebSystems,
New York, NY, recently
Management Solutions and Services Department, Aaron
Andy Nq (SMG '92) and Virginia Seid Ng of Framingham, MA, were
of Global Sales Management at Willis Group Limited.
5 and 2. E-mail her at dmar-
of Wayland, MA, and his wife Kim Lirio (MET 92)
ried Lisa
of
Acceptance Corporation. He has sons,
just relocated to San Diego. Classmates can con tact him at dan.fumai^pwcqlobal.com. has
consulting
Morqan
Turner
in
John D. Schmuckler (SMG
has two sons, ages
division of
of Riverwoods, IL,
Zurich and London.
currently
a
Dana
resided
vice presi
is
Jonathon L. Levin (SMG '91)
in
1993. He works for UBS
Group and has
'87) of Saint James, NY, wants to
Jason Kwan (SMG '90) of
Tokyo, Japan, married Seolah Dong (COM '90)
JPMorganChase.
banking Stanley.
Aaron Lewis (SMG '95) of
months. He
six
comed their second
ter, Emilia,
ager responsible for the Qualcomm engagement and
Daniel Azrin (SMG '95) of
Endang
Widyasari (SMG '91) of Singapore is a tax manager at Ernst & Young of Singapore. Daniel Fumai (SMG '92) of Solana Beach, CA,
is
senior
manager at Pricewater-
houseCoopers LLP. Dan is the worldwide senior
man
Brookline, MA, is
an
invest
ment
analyst at Liberty Mutual Group, in the fixed income
department
Robert M. Crawford (SMG '95) of Boston, MA, current
ly works as an attorney for Goodwin, Procter & Hoar LLP. He
was
recently admit
ted to the Massachusetts Bar.
[email protected]. Joel Mizrahi (SMG '00) of
Livinqston, NJ, recently acquired a new position as a technology consultant at KJ
Technology Consulting.
dearTscommentary Reflections on Builders and Leaders. Our family ski vacation late
a
During ilii--
I received
winter,
update
a
ated
Michael Bronner
ness is
pany sales exceed S 10 billion1 This "old economy' company has trans
into
ran
formed
a
April
in
leaders of
of 1995.
ini
most
t.
nology
the
International, among the worlds the
and
global
diversified
most
Listening
suppliers
taking
decades ahead, about Bronner's
em
his businesses in the
the heels ol
plans
reading
for UPromise.
another vivid reminder ol ihe role bv business builders and leaders
in creat
new
products
or
servic
standards, the
improved living ation ol jobs, and the es
wealth.
Magnas
expansion e>l
experience also dramatiz
the inevitable convergence ol estab lished industries and new technologies
es
This
directly emphasis mirrors
the School. Our
the
mission
is on
ol
the devel
opment ol managers who build and lead, manage, and
delivering simply comprehensive understanding ol new technologies in our management curricula nol
on
a
the fastest
resent
Societal value takes the form
ing genuine societal value That value-
lakes the form ol
in
was
pla
is a
ol the "old"
myth
hue
example ol "new"
versus
onl) dynamic, constantly evolving econom) striving to produce desired goods and services at the highest quality, with the lowest ce)sts
Stronaeh describe where
to
every
economy" techimproving quality, lowering
economies; there
to
automotive industry
nvisions
at
new
health. (Magna
founder and chairman ol M
largest
operations,
costs, increasing output, and improving employee safet) and
iusi-
time, Stronaeh
our
us
level, wuh
Executive Lecture
Distinguished the School
SI),
cover
Frank Stronaeh. who delivered
One of the
cre
s\H i
this magazines Spring 1998 subject. On that same dav. 1
at
revolu
network
college savings
e-mail
an
L'Promise,
on
tionary
by
emphasis is on the devel opment of managers who build and lead and on delivering a comprehensive understand ing of new technologies.
of
products or services, improved living standards, the creation of jobs, and the expansion of wealth. new
About Stronaeh: Frank Stronaeh immi
grated a
to
anada
e
tool and die
he- rented
a
hum Austria in
later,
Intemation
nuclei his
leadership,
dramatically today,
Hum
i
lime,
one
and
prices that rep
at
fair valui
What
is
especially fascinating about
Magna is its rooting in a senes ol princi ples Stronaeh articulates in Magnas e
orporate Constitution
delineate
I
hese
principles
employee, shareholder,
management participation
in the
and
profits
ol the company, research and develop ment support (7",. ol proht) the firm's dedication to
so<
i.il
responsibilit) (2
ehaniv v the-
ol
sharehold
profit
io
ers to
ele-ei additional elireeu>rs ii defined nun
nghis
profit performance isn't rights te> approve
achieved, shareholder
\l
SI billion
pproached
And for the past I 5 years the
has grown
I as
three years, nd launched Ins own 19 >7 his first yeai ol
machine shop In business, sales reached $1 1,000 vears
19 i
maker \\ iihm
is
ompany
unrelated investments; and a commit ment lo ensure thai a majorit) *)l the
ihe-
board members
com-
are
outsiders Leaders 39
dean'scommentary
There is
only one dynamic, constantly evolving economy produce desired goods and services at the highest striving guality, with the lowest costs, in the fastest time, and at prices that represent fair value. to
the
entrepreneur never rests About Bronner: Michael Bronner
visionary
over a ivventv
period, created the Digitas, a leading
vear
company that became internet
viding
professional
with
size
(and the attendant
He is
launching an imaginative- concept designed to help average Americans afford a college educa
To avoid the sclerosis that often comes
(its March 2000 IPO netted
million).
s22i
technology,
strategy,
ing services
firm pro and market
services
cen
now
for their children. Bronner
deter
tralization and bureaucracy I, Stronaeh has institutionalized a ^eiise ol entrepre
tion
neurship throughout Magna. When a Magna division expands sufficiently, managers are provided incentives to spawn a subsidiary business in order to
resources to improve educational oppor tunities lor all.
each
keep
hands-on.
that permits control by the line
mined to
aunts,
intimate
tribute
Magna emplews
18 countries,
across
about 62,000
These leaders
people
in
personally
model the values of their
experience
family
uncles, and
account
established in the
UPromise
name
of
Michael Bronner
an
parents, grandparents, even friends cm con
college education
to a
is
and his
UPromise, members ol
Through extended
unit to a size
management. Today,
his
use
leaders have much
provides
the
tion, the
visiein,
given child Thev- do so their normal purchases.
simply through Participating
new
companies contribute
portion of each
thai
designated college frequent flyer money!) Bronner has
ture
revenue
a
model the values e)l their
produce
(lis like
savings account
manufacturing divisions and 31 product development and engineering
CVS, AT&T, Citibank, Lands' End, Coca Borders Books, General Motors,
employed
(That averages less than 400 employees per location.) Hence Magna
ExxonMobil, Toys R Us, Fidelity, ( enturv 21, Gateway. SO online merchants, and 7000 restaurants nationwide
establish
166
centers.
a
giant,
series
global corporation entrepreneurial run
ol small,
like
is
a
businesses
past three vears. stronaeh has created Magna Entertainment, one ol the In die
most
important powers in the racing
Entertainment
now owns
California,
Gulfstream Park
in
I he
company
is
transactions for miliums eil customers
nn
Florida,
with the marvels eil
m
melding the 'spon ol
nology by exploring
digital
te< h
media sports wager
ing operations, including telephone account,
interactive
television, and
inter
net-based wagering The imagination ol 40 Builders
es
expertise
as
to
die u>
hnologv.
te-e
oil
pull
a
tei
Michael Bronner
has always heen
marketer mak
ing
tury apart
in
gifted
age,
a
s
digital technolog)
new
or to
business models
True builders and leaders We are
fortunate,
among
indeed,
te)
have them
us
Program
Bronners, the School is launching the innovative MS-MBA program
Stronaeh, origi
betier While
texlav
transform their business
eration of Frank Stronachs and Michael
making products better, a
to
To help attract and train the next gen
and the- human
ioe>l and die maker committed
services
either
MS*MBA
and thousands ol others do well
nally
the resultant corporate cul
is
this ambitious
In contrast to Prank
personally organization
nities, and improved products and serv \nd both leaders have effectivel)
experience
undertaking Michael Bronners passu>n lor cleung good, nc^ doubt, w ill help him
entertainment value e>l die- old
kings
such
The database management related what will be hundreds ol million
in
Thistledown in Ohio, Remington Park Oklahoma, and Greal lakes Powns m
Michigan
participating companies
staggering building Digitas makes him uniquel) capable- ol assembling the financial
Santa Anna
Park and Golden Gate Fields
recruited
But Bronners
industry. Magna
Thoroughbred
real
to create
Their enterprises, m turn, generate social wealth, new employment opportu
dollar to ihe
only
Each
energy, the convic and the personal and
businesses These leaders
organization that produce the resultant corporate culture.
miles,
common
financial risk
considerable
a
m
intense
quarter-cen these iwo builders and
both technical
combining
depth (Master of
Science in Information
Systems) and rigorous business preparation (an MBA with
a
functional specialty) required for
organizational leadership
in the
decades ahead. The School is committed to
the
producing
competence
totally
managers with
and the courage to
build and to lead.
-
Alumni Keep in Touch! Please
help us keep up with your personal and professional accomplishments by completing and faxing or mailing this page. Fax to 617/353-5581. Mail to: Alumni Relations, School of Management,
Boston
New address?
University,
? Yes
595 Commonwealth Avenue, Boston, MA 02215-9779.
? No
Name
Degree
Home address
Phone ( state
City
Degree
Country
Zip
Home e-mail
New
Year &r
Work e-mail
position?
? Yes
?No-
Business title-
Company Division Name
Department
Address/mail code
Phone (
State
City Which address do you
prefer
the School
to
News about you for Classnotes:
Country
Zip
use? Q Home vie and
|
Q Business
professional honors,
career activities,
family
additions'
SMG/CBA Reunion Class of: ? '32 Q37 J '42 ? '47 ? '52 ? '57 ? '62 ? '67 ? 72 ? 77 ? '82 ? '87 ? '92 ? '97 1
am
interested in
helping
SMG in the
following
areas:
Deferred Giving (Please send me information.) ? Alumni Admissions Associate (talking with prospective MBA students) -I
Planned
or
Advisory Program (meeting or talking by telephone with current students) Class Agent Program (helping SMG build alumni program partitipation) Student Internship Program: ? undergraduate ? graduate
? Career ? J
? Other
Questions? Call Alumni Relations Our email address is
617/353-6137. Our fax number
[email protected]
is
617/353-5581.
NO POSTAGE NECESSARY IF MAILED IN THE
UNITED STATES
BUSINESS REPLY MAIL FIRST CLASS MAIL
PERMIT NO. 1 839
BOSTON, MA
POSTAGE WILL BE PAID BY ADDRESSEE
Alumni Relations
School ot Boston
Management University
595 Commonwealth Avenue
Boston, MA 02215-9633
The SMG Fund and Graduate Programs Fund
Every Gift Really
Does
Make A Difference? You often hear
"every gift makes
a
difference," both from the School of Management and other organizations seeking your annual fund support. Here's why we say it and why your gift truly makes an impact. Corporations participation
and foundations
decisions to make
of
use
rate as a benchmark in a
gift
or
grant
the alumni
making
to the School
Management.
Gifts contributed to the SMG
develop technology-enhanced
capability of making large
gifts to the School of Management are more likely to do so when they see others are making contributions.
Graduate
Funds help recruit prominent
Programs
Alumni with the
or
faculty,
courses, and pro
vide various student services. These Funds also such
help provide as
the
a
full range of alumni activities
Distinguished
Executive Lecture
Series, Finance Day, business conferences, Last year
we
listened to you,
our
alumni,
as
and
on-going
alumni
career
services.
you indicated unrestricted annual fund support should focus
on
Every gift does
the School from which you
graduated
instead of the
response,
we
University at-large.
created two
that benefit the School of
new
In
a
gift guarantees
difference and your our success
the
For
more
Officer for the School of
and the
Seman, at
(supporting undergraduate initiatives) Graduate Programs Fund (supporting
graduate program initiatives). The response has been tremendous. The SMG a
dollars and the Graduate
demonstrated
a
30% increase in
Programs
we can
Fund has
22% increase in dollars and a
15% increase in donors. This is and need to do better.
impressive,
building
information please contact the Alumni
SMG Fund
Fund has demonstrated
in
leaders for the future.
annual funds
Management:
annual
make
but
Management, Eileen 617/353-6137 or
[email protected].
Doctoral Students' Research, page 12
Faculty
In
The News. PAGE 30
School Calendar. PAGE 34
The
new
SMG website and
publications
have made
Master's program
