Spring 2004 - deepblue.lib.umich.edu

Globalization Transforming the Way

America WorksTransforming the Way

America Works

Globalization

Plus—Sustainable Transportation: Twists, Turns and Potentially Huge Rewards

Plus—Sustainable Transportation: Twists, Turns and Potentially Huge Rewards

Spring 2004Spring 2004

U n i v e r s i t y o f M i c h i g a n B u s i n e s s S c h o o l

F E A T U R E S

18 Globalization: Transformingthe Way America WorksWorkers in other countries are doing the same jobs better,less expensively and more reliably than can be done in theU.S. What challenges and opportunities does this create?Michigan Business School faculty experts discuss theramifications for American business and MBAs.

24 Sustainable Transportation:Twists, Turns andPotentially Huge RewardsScholars, researchers, urban planners, governmentofficials, corporate executives and environmentaladvocates are searching for a next-generationtransportation system that is life-supporting, bothecologically and socially. Thomas N. Gladwin, MBA ’71, PhD ’75, describes it as “the grandchallenge of our time.”

30 U.S. Tax System: A Study in MarketingLook no further than the IRS Form 1040 to find framing and other marketing techniquesat work.

34 Mining Money: How to Attract, AcquireVenture CapitalFew people have all the characteristics that make a true entrepreneur, says Sam Zell, AB ’63,JD ’66. Meet Alumni Entrepreneur of the Year Rick Snyder, MBA ’79, and others who do.

38 Reunion 2003More than 1,300 alumni and guests attendedReunion 2003. Many participated in AnnualBusiness Conference workshops, including:

Negotiating Tools and Traps: Phrasing Can Be a Powerful Tool

How Executive Education Can Help You and Your Company

I N T E L L E C T U A LC A P I TA L

11 Hire and Firewithout GettingSinged or SuedManagers tiptoe aroundpersonnel issues, fearful thatlegal restrictions will hindertheir ability to select,evaluate and terminateemployees. Learn to skirtpotential pitfalls that can create legalheadaches for you and your company.

Plus: Separating Fact from FallacyWhen Dealing with Employment Law

Dividend 1 SPRING 2004

Cover by Blue Pencil Creative Group Ltd.

Thomas N. Gladwin, MBA ’71, PhD ’75,

Sam Zell, AB ’63, JD ’66. Rick Snyder, MBA ’79,

CONTENTSSPRING 2004

CONTENTSD E P A R T M E N T S

3 Across the BoardA short news roundup, including Howard Ben Tré’s “Column 36”…Strengthening Michigan’s Chinaconnection…Showcasing student talent at Spotlight! 2003…Restoring America’s imageabroad…Honoring four outstanding alumni…and more.

9 Quote UnquoteWho is saying what—and where.

13 Faculty ResearchFishing for an Advantage on Wall StreetData snooping—an inevitable bias resulting from the endlessslicing and dicing of finite sets of data—accounts for most gains forecast by empirical studies of equity prices, contendsGautam Kaul.

Plus: What multinational business leaderscan do to help women in developing nationsand, closer to home, how cultural differencesplay out in the workplace.

15 Ovation“Meet You in the Student Lounge”Ports and plugs are plentiful, thanks to giftsfrom the Classes of ’02 and ’77 and a newraised flooring system.

16 Alumni at LargeTracking Trends on a Grand Scale: A profile of Sharon ReedWalker, BBA ’74, MBA ’81.

Mastering Manufacturing in a Global Market: A profile ofAndrew Masterman, MBA ’93.

41 Alumni ActivitiesClub news from Boston, Frankfurt, Minnesota, Peru, San Francisco, South Florida, Toronto and Wisconsin.

43 Class NotesThe goings-on of friends, classmates and colleagues.

54 Obituaries

55 Alumni Network UpdateStrengthen ties with the University of Michigan Business School.

Dean: Robert J. Dolan Director of Communications: Cynthia Shaw

Executive Editor: Mary Jo FrankClass Notes and Copy Editor: Fred P. Wessells

Publication Assistant: Brenda SpaldingDesigner: Blue Pencil Creative Group Ltd.

Photographers: Elizabeth Curran, Philip Datillo, Steve Kuzma,

Marcia L. Ledford and Martin VloetPrinter: University Lithoprinters

Vol. 35, No. 1: ©2004 The University of Michigan Business School.

This publication is produced twice a year by theOffice of Communications and made possiblethrough the generosity of private donations.

For more information, contact Dividend,The University of Michigan Business School,

701 Tappan, Ann Arbor, Michigan 48109-1234.


SPRING 2004

University of Michigan Business School Web site:

www.bus.umich.edu

The University of Michigan Regents:David Brandon, Laurence B. Deitch, OliviaP. Maynard, Rebecca McGowan, Andrea Fis-cher Newman, Andrew C. Richner, S. Mar-tin Taylor, Katherine White, Ex-OfficioMember, Mary Sue Coleman, President, Uni-versity of Michigan.

The University of Michigan, as an equalopportunity/affirmative action employer,complies with all applicable federal and statelaws regarding nondiscrimination and affir-mative action, including Title IX of the Edu-cation Amendments of 1972 and Section 504of the Rehabilitation Act of 1973. The Uni-versity of Michigan is committed to a policyof nondiscrimination and equal opportunityfor all persons regardless of race, sex, color, re-ligion, creed, national origin or ancestry, age,marital status, sexual orientation, disability orVietnam-era veteran status in employment,educational programs and activities, and ad-missions. Inquiries or complaints may be ad-dressed to the Senior Director for Institu-tional Equity and Title IX/Section 504Coordinator, Office for Institutional Equity,2072 Administrative Services Building, AnnArbor, Michigan 48109-1432, 734-763-0235,TTY 734-647-1388. For other University ofMichigan information call 734-764-1817.

Joint programs slated for 2004 include:■ The CEO Learning Consortium, which

will bring together 25 prominent CEOsfrom China to learn from each other and Business School and CEIBS facultymembers.

■ An advanced management program,which will provide executive manage-ment skills to leadership teams.

“COLUMN 36”

Ben Tré Magic: A Message of HopeHoward Ben Tré’s “Column 36,” a 97-

inch tall translucent sculpture of greencast glass and copper, welcomes students andvisitors to William Davidson Hall.

Installed in August, the 500-poundsculpture is one of the largest pieces in theBusiness School’s art collection, whichnumbers more than 50 pieces. All the artworks are gifts or on loan to the school.

Ben Tré, who is known internationallyfor his pioneering work in cast glass, sayshe loaned the sculpture “to help students

INTERNATIONAL

MichiganStrengthens China ConnectionDean Robert J. Dolan and Alfredo Pas-

tor, dean and vice president of theChina Europe International BusinessSchool (CEIBS), signed an agreement onSeptember 18 at the Business School pledg-ing to work together to develop and deliveradvanced business education to senior exec-utives in China.

CEIBS, founded as a not-for-profit or-ganization by the Chinese government andthe European Union in 1994, is the only in-dependent international business school inChina. The CEIBS is ranked by FinancialTimes as the top executive educationprovider in Asia and among the top 50worldwide in its MBA and Executive MBAprograms.

Arthur Yeung, executive director of theBusiness School’s Organizational Effective-ness Lab (OEL) in China, says the partner-ship will help Business School faculty learnabout China, expand the school’s contactswith senior executives and build Michigan’sglobal reputation. The OEL was created in2002 to help organizations in China facili-tate change and transformation for world-wide competitiveness.


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(Clockwise from front left) CEIBS Dean and Vice President Alfredo Pastorand Associate Dean Rolf D. Cremer, Business School Associate DeanRaymond R. Reilly, OEL Executive Director Arthur Yeung and Dean RobertJ. Dolan at the signing ceremony

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see that art is part of our lives. I try to takethe magic that happens in my studio intothe public realm.”

“Column 36” is part of a series of sculp-tures created by the Providence, Rhode Is-land, artist that includes columns, vessels,implements, benches and wrapped forms.Many of Ben Tré’s cast glass and metalpieces are architectural installations in publicplaces, including the Norman B. LeventhalPark Post Office Square in Boston and Tar-get Plaza in Minneapolis. His work also ispart of many private and public collections.

“Column 36,” cast in 1986 and firstshown at the Charles Cowles Gallery inNew York City, originally was purchasedby a firm in Irvine, California. The sculp-ture was damaged in a 1991 earthquakeand remade in 1998.

For Ben Tré, drawing the sculpture is themost important step in the artistic process.From the drawings, sand molds are madeand transported to factories where moltenglass is poured into the molds as quickly aspossible. The glass cools eight to 10 weeks be-fore it is returned to Ben Tré’s studio forsandblasting, cutting, grinding and finishing.

“What art can do is help us see things in a different way and thereby learn tochange. My art is not cynical or ironic. It ishopeful, and you have to have hope inorder to embrace change,” says Ben Tré.

(Left to right) Franklin Mayers,MBA ’05, Joseph Dougherty, MBA’04 and Ruchi Misra, MBA ’04, and“Column 36” in the entryway ofWilliam Davidson Hall

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MANUFACTURING

Spotlight! 2003ShowcasesTalentForty-five Business School and College

of Engineering students competed for$35,000 in scholarships at Tauber Manufac-turing Institute’s (TMI) Spotlight! 2003.

As part of the day-long competition heldin September, 17 student teams gave 30-minute presentations summarizing theirprojects and results from 14-week summerinternships.

The Intel Corporation team won firstplace for “Supply Chain Balancing throughthe Creation of an Innovative ‘Newsboy’Inventory Model.” Team members Luke

Leubuscher, MBA ’04; Johanna Lichtman,MSE ’04; and Pinar Yaprak, MSE ’05, de-veloped a tool to balance Intel’s supplychain through inventory deployment andair freight decisions.

Intel manufactures server chassis in Asiaand distributes them through warehousesin Hong Kong, the United States and Eu-rope. The team improved Intel’s respon-siveness in handling orders, identified morethan $1.2 million in savings for the first halfof 2003 and projected an additional $1.9million in savings for the second half of theyear. Dennis G. Severance, the AccentureProfessor of Computer and InformationSystems, and Mark Lewis from the Collegeof Engineering advised the Intel team.


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(Left to right) Brian Forster, MBA ’04,MSE ’04; James S. Reece, professor ofaccounting and operations and managementscience and co-director of the TauberManufacturing Institute; College ofEngineering faculty adviser TassosPerakis; Business School faculty adviserGeorge Widmeyer; and Allan Chung, MSE ’04, stand in front of a mural of anastronaut using a jet pack manufactured byLockheed Martin Corporation. Forster andChung worked with Lockheed Martin onchange management techniques in the areaof information technology.

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Spotlight!Two teams tied for second place:

■ Alcoa Inc. Dan McMaster, MBA ’04;Mahshid Pirzadeh, MSE ’04; and Nan-dakumar Srinivasan, MBA ’04

■ Pall Corporation. Ian Kummerlin, MBA’04; Slava Leykind, BBA ’04; and KirkLight, MBA ’04To learn more about TMI or becoming

a project sponsor, visit http://www.tmi.umich.edu/.

CONSULTING

Gaining Controlof Your LifeJuggling the demands of a management

consulting job doesn’t mean you mustmiss your children’s soccer games, assertsRalph W. Shrader, chairman and CEO ofthe global strategy and technology consult-ing firm Booz Allen Hamilton Inc.

“Think about ways you can gain controlof your life,” Shrader advised students attending the Business School’s Dean’sSpeaker Series. The program gives stu-dents direct access to successful, high-levelexecutives.

Shrader has led major assignments fortelecommunications companies in theUnited States, Europe and Latin Americaand programs for the U.S. National Com-munications System and Defense Informa-tion Systems Agency and for the UnitedNations’ International Telecommunica-tions Union.

“My family has always been very impor-tant. So have my work and my play,” saidShrader, who maintains only one calendarfor both family and work commitments.

Ralph W. Shrader

DIVERSITY

Hispanic MBAsRecognizeBusiness SchoolCiting the Business School’s commit-

ment to “provide outstanding educa-tional and career building opportunities to our nation’s diverse population,” the National Society of Hispanic MBAs(NSHMBA) presented its BrillanteAward—a sculptured flame exemplifyingthe warmth and light radiated by its recipi-ents—to the school in November.

The Educational Institutional Award waspresented at the 14th Annual NSHMBAConference. Michigan has been an activesupporter of NSHMBA’s annual conference,as well as the National Black MBA Associa-tion’s conference and Career Expo.

NSHMBA seeks to foster Hispanic lead-ership through graduate management edu-cation and professional development.

WOMEN IN LEADERSHIP

“Find YourPassion,”Advises FannieMae CEORace relations at the University of Michi-

gan were tense in the mid-1980s, whenPresident Harold T. Shapiro invited thepresident of the Black Business StudentsAssociation (BBSA) to his office to discussthe campus climate.

“That was the year I started to developas a leader, learned to build coalitions andto seek partners in everything I do,” recallsStacey Davis Stewart, MBA ’87. Today, theformer BBSA leader is president and CEOof the Fannie Mae Foundation, the coun-try’s largest foundation devoted to afford-able housing and community development.

Stewart and Carol Gallagher, presidentand CEO of the Executive Women’s Allianceand author of Going to the Top, gave keynoteaddresses at the 11th Annual Women inLeadership Conference, held at the BusinessSchool in October.

Stewart discovered her career passion—public finance—at a panel discussion aboutcareers in investment banking. A month be-fore graduation, she turned down an attrac-tive offer from a leverage buyout group.“Something said to follow my heart,” Stew-art recalled. The next day she received anoffer from Merrill Lynch’s public financedivision, where she went on to assist stateand local governments in structuring morethan $2 billion in bond transactions to fundhousing and infrastructure projects.

“Find your passion and act on it. Youhave to know what you’re passionate about,what you’re willing to sacrifice for,” Stew-art advised.

Her investment banking background gaveStewart a strong foundation for her workwith Fannie Mae, which she joined in 1992.“Even if we’re driven by passion, we can’t beruled by passion,” she said. “Philanthropywill only survive if we appeal to the walletwith cold facts that make sense.”

Stewart, who holds honorary doctor-ates from Trinity College in Washington, D.C., and Morgan State University in Balti-more, said, “Every day I feel I am making areal contribution to people. Many of theskills I gained right here at the Universityof Michigan.”

The alumnus told the more than 400women who attended the conference:“Spend time thinking about what you wantto do every day. Pursue it. If you stay focusedon it, you will get all the rewards you seek.”


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Stacey Davis Stewart, MBA ’87

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In the News(Left to right) Ana Nadalin, MBA ’04, Can Kendi, MBA ’04, and Patty Yang,MBA ’05, pause outside the Student Lounge to read news articles featuringMichigan Business School faculty and research. As authorities in theirfields, faculty are called upon by print, broadcast and online media toprovide expert commentary on everything from breaking news to businesstrends. Business School faculty members and their work were quoted orcited in 934 articles and broadcasts in 2003.

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CENTRAL EUROPE

AmbassadorWeiser: BusinessFuture BrightCentral European countries are among

the world’s most effective exporters ofdemocracy and free market capitalism,notes Ronald N. Weiser, BBA ’66, U.S.Ambassador to the Slovak Republic.

Slovakia, Poland, Hungary and theCzech Republic—the Visegrad 4 (V-4)—can help reel the former Soviet empire,Iraq and other emerging democracies intothe western sphere, asserted Weiser in the37th Annual William K. McInally Memo-rial Lecture, presented in October at theBusiness School. Weiser, who founded thenational real estate investment companyMcKinley Associates, has served as ambas-sador since November 2001.

In his lecture titled “Central EuropeanTransition: Opportunity for AmericanDiplomacy and Business,” Weiser said,“Developing a market economy with a cul-ture of entrepreneurship and risk takingwas a monumental task” for early politicalleaders in the former Warsaw Pact coun-tries. Who better to give Iraq, Afghanistan

and countries that were part of the SovietUnion a road map for their transition todemocracy?

Central Europe’s transition from cen-trally controlled economies to free marketcapitalist systems will create business op-portunities for the United States and theworld, Weiser predicted. “These peoplerepresent incredible future purchasingpower as they become upwardly mobile.”

New investments in Central Europe will

create American jobs inadministration, professional

services and expatriate positions.

The V-4 countries have highly moti-vated, well-educated workforces, he noted.Already more than 125 American compa-nies—such household names as IBM,Hewlett-Packard, Delphi, Johnson Con-trols, Pfizer and Whirlpool—have facilitiesin Slovakia and almost all are expandingtheir operations. Low wage rates found

throughout the V-4 will provide foreign in-vestors with substantial cost advantage andhigher profit margins over western Euro-pean competitors, Weiser said. In additionto lower direct costs, income taxes generallyare lower, and often there are incentives fornew investors. Slovakia, for example, willbe introducing a 19 percent flat tax for bothcorporations and individuals next year.

New investments in Central Europe willcreate American jobs in administration,professional services and expatriate posi-tions, added Weiser, who also envisionsmore exports of U.S.-made materials, sup-plies and equipment and growth in con-sumer markets. “It is a lot easier to sellproducts to people in Kiev from your officein Krakow, Bratislava or Budapest than it isfrom Kansas,” he noted.

(See related article on outsourcing onpage 18.)

KUDOS

Student,Professor WinTop Honors AMichigan Business School student

and faculty member took top honorsat the 2003 National Conference of theAcademy of Legal Studies in Business(ALSB), the most prestigious academicbusiness law organization in the country.

Matthew Brody, BBA ’03 and a studentin the Master of Accounting program, wonthe Best Student Paper Award for “EndingBrownfields Paralysis: Community-basedDecisions and Government Cooperation toAchieve Full Stakeholder Involvement.”Brody researched and wrote the paper aspart of the BBA Senior Seminar taught byGeorge J. Siedel, the Williamson FamilyProfessor of Business Administration.

Lynda J. Oswald, professor of businesslaw, also was recognized at the ALSB con-ference in Nashville. She received the Dis-tinguished Proceedings Paper Award for“Challenging the Registration of Scan-dalous and Disparaging Marks under theLanham Act: Who Has Standing to Sue?”and the Holmes-Cardozo Award, pre-sented annually by the American BusinessLaw Journal for excellence in legal re-search. Oswald was elected secretary/treas-urer of the ALSB.


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(Left) Dean Robert J. Dolan meets with Ambassador Ronald N. Weiser andhis wife Eileen prior to the McInally Lecture.

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COMMUNICATIONS

RestoringAmerica’s ImageAbroadState Department officials, journalists,

marketing professionals, psychologistsand political scientists brainstormed aboutcommunicating with skeptical audiencesand improving America’s image at a con-ference organized by the Yaffe Center forPersuasive Communication, a joint initia-tive of the Business School and the Schoolof Art and Design.

In public diplomacy, listening is as impor-tant as speaking, and probably more so, saidseveral panelists. Paul Denig, director of theWashington Foreign Press Center in theState Department, said Americans overseasmust engage in “active listening” and ensuretheir manners of speech and tones of voicealign with local customs. He also stressed theimportance of recognizing shared values—living peacefully, economic stability, educa-tion, family and the importance of faith.

Acknowledging unshared values also isbeneficial, said Eric Knowles, psychologyprofessor at the University of Arkansas. Hedirects that university’s Omega Project,which studies sources of resistance and howto lower them. Listening with an “honoringear” offers “seeds for collaboration and atti-tude change.” He noted, “When you ac-knowledge someone’s difference, it dimin-

ishes it. If you don’t at least honor the sourceof conflict, it grows and grows.”

The October conference also looked tothe private sector for advice. Panelist StevenParrish, senior vice president for corporateaffairs of Altria Group, has served as spokes-man for the Philip Morris Company. Parrishadmitted that past tobacco culture was one of“arrogance and denial,” fighting any regula-tion, proud of winning lawsuits with a take-no-prisoners aggression. Things are chang-ing, he said, “but it’s going to take a long timeto dig out of that hole.” Parrish’s top piece ofadvice: “If you’re wrong, say so.” The imageof tobacco company executives on CapitolHill denying, under oath, any knowledge ofnicotine’s addictiveness is never going to goaway, Parrish said. The industry has to focuson building a better reputation in the future.“Don’t waste your time trying to convincepeople they’re wrong about what they thinkabout you,” he said.

A positive message from the UnitedStates—delivered with respect, candor anda willingness to listen—can offer hope tocitizens of Islamic countries who wantdemocracy, said Anthony Pratkanis, Uni-versity of California-Santa Cruz psychologyprofessor. But even on that point, he urges asensitive touch.

“Even to say, ‘We’re here to help,’ impliesweakness,” he said. “Better to say, ‘We’rehere as citizens of the world.’ ”

The conference was funded by WilliamK. Fung, group managing director of Li &Fung Ltd., Hong Kong, and supported bythe International Institute and WilliamDavidson Institute.

SCHOLARS

PhDs Shine in DissertationCompetitionThe Michigan Business School fared well

in doctoral dissertation competition atthe annual Academy of International Busi-ness (AIB) meeting held in California in July.

Fritz Foley, assistant professor of corpo-rate strategy, was one of four finalists in thecompetition, which was chaired by Kiyo-hiko (Keith) Ito, PhD ’88, assistant profes-sor of business at the University of Wiscon-sin. Another finalist’s dissertation committeewas chaired by Myles Shaver, PhD ’94. Re-nata Kosova, PhD student of corporate strat-egy and international business, won tophonors in the dissertation proposal category.

In a related event, the “Guru Confer-ence,” Gary P. Hamel, PhD ’90, was selected“Number One Guru” by The Economistmagazine. Hamel is associate professor ofstrategy and international management atthe London Business School.

Another Michigan graduate, Stephen J.Kobrin, PhD ’75, professor of multina-tional management at the Wharton School,University of Pennsylvania, is the immedi-ate past president of the AIB.

ALUMNI SOCIETY

Laurence SaulJoins BoardLaurence P. Saul, MBA ’03, formerly

of Plymouth, Michigan, currently resid-ing in Wassenaar, The Netherlands, has beenappointed to the University of MichiganAlumni Society Board of Governors. Saul isvice president of Domino’s Pizza Internationalfor Europe, the Middle East and Africa.

The board strives to strengthen the net-work and fellowship among faculty, alumni,students and friends of the Business School.

The group’s semi-annual meetings pro-vide a forum for an exchange of ideas be-tween board members and the school.


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Michael Kennedy, director of the International Center, and journalist Robin Wright at the conference

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LEADERS & BEST

School RecognizesOutstandingAlumniFour University of Michigan Business

School alumni are to be honored with2004 alumni awards: John Madigan forprofessional achievements, Cecil Shepherdfor service, and Keith Alessi and Lee Shai-nis for entrepreneurial success.

John Madigan, BBA ’58, MBA ’59, ofChicago, will receive the David D. AlgerAlumni Achievement Award at SpringCommencement on April 30. The award isnamed in honor of the late David Alger,MBA ’68, former president and CEO ofFred Alger Inc.

Madigan, who served as chairman andCEO of Tribune Company from 1996 untilhe retired in 2003, joined the company in1975 as vice president and chief financial of-ficer. He also served as publisher of the Chi-cago Tribune and president of the TribuneCompany. Madigan is chairman of the Mc-Cormick Tribune Foundation; a director ofthe Chicago Council on Foreign Relations,Morgan Stanley and AT&T Wireless Serv-ices; and a member of the Board of Over-seers of the Hoover Institution.

Madigan, who has served on the BusinessSchool’s Visiting Committee, is a founder ofthe Henry Carter Adams Society and hasparticipated in the Dean’s Seminar Series.In 1996, he and his wife established theHolly and John Madigan Endowed Schol-arship to benefit BBA and MBA students.

Cecil Shepherd, MBA ’00, of NewYork, is receiving the Bert F. WertmanAlumni Service Award at the BusinessSchool Scholarship Dinner on March 18.

The award was established in honor of BertF. Wertman, BBA ’28, who served as presi-dent of his class for more than 60 years.

As president of the Michigan BusinessSchool Club of New York, Shepherd wel-comes new graduates, interns and admittedstudents and works to integrate them intothe wider New York alumni community.He has successfully recruited volunteers tocounsel alumni and students through theclub’s Career Development Committee andalso has worked with the Admissions Officeon student recruitment. Shepherd, a fixedincome specialist in the Individual InvestorGroup at Morgan Stanley, was appointed tothe University of Michigan Club of NewYork board in 2002 and elected to the Boardof Directors of the Alumni Association ofthe University of Michigan in 2003.

Keith Alessi, MBA ’79, will be presentedthe Entrepreneur Award on September 24at Entrepalooza. Alessi is CEO and major-ity shareholder of Lifestyle ImprovementCenters LLC, the world’s largest franchiserand operator of hypnosis centers used to as-sist people with weight loss, smoking cessa-tion and behavioral change. For almost 15

years he was a leader in the wholesale andretail food industry, serving as a senior ex-ecutive for numerous private and publiccompanies. As CEO of the public taxpreparation firm Jackson Hewitt, Alessiengineered a turnaround of the companythat resulted in it being the fastest-growingstock on any U.S. exchange in 1997.

Alessi, adjunct professor of law at theWashington and Lee University Law School,also serves as a director on numerous privateand public company boards. He is a pastmember of the Alumni Society Board ofGovernors, teaches the Business School elec-tive Entrepreneurial Turnaround Manage-ment course and serves on the board of theSamuel Zell & Robert H. Lurie Institute forEntrepreneurial Studies. In 1998, he and hiswife established the Keith E. and Valerie J.Alessi Professorship of Business Administra-tion. They also funded the renovation andbeautification of the Keith E. and Valerie J.Alessi Courtyard.

Lee Shainis, BBA ’99, founder of Inter-cambio de Comunidades in Boulder, Col-orado, will receive the Entrepreneur Awardat a dinner this year. In 2000, he founded In-tercambio, a nonprofit organization dedi-cated to reducing the language and culturalbarriers that prevent native Spanish speakersfrom becoming part of the community. In-tercambio volunteers teach free evening andweekend English classes attended by morethan 600 Latino adults, ages 17 to 70, andconduct field trips to familiarize studentswith the Boulder County community. Inter-cambio also holds workshops and providesresources to help Latinos meet medical, edu-cational, residential and other social needs.

Shainis is responsible for all facets of ad-ministration, including managing morethan 350 volunteers. In 2001, the organiza-tion received the Boulder CommunityFoundation’s NOVA Educational Award,which recognizes innovative and entrepre-neurial nonprofits.


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John Madigan, BBA ’58,MBA ’59

Cecil Shepherd, MBA ’00

Keith Alessi, MBA ’79

Lee Shainis, BBA ’99

“Our findings suggest that compassion among co-workers ismore than simply a momentary humane response to pain. It fosters important organizational outcomes and leaves itsimprint on the organizational landscape.”

Jane E. Dutton, the William Russell Kelly Professor of Business Administration,elaborating on research showing compassionate interactions with supervisors

and co-workers help employees make sense of the working world.Workers’ Compensation Monitor, December 24, 2003

“You go into the market with whatever advantage you havein terms of low fares, but gradually they want to becomebigger players. That is a natural progression in any business.”

E. Han Kim, the Fred M. Taylor Professor of Business Administration and director of the Mitsui Life Finance Research Center and East Asia Management Development

Center, commenting on low-cost airlines’ efforts to embellish their services.The New York Times, January 7, 2004

“When you license a brand, you’re paying for the opportunityto not spend money to build awareness. Taking a well-knownname in one geographic area and moving it to another doesnot always succeed.”

Rajeev Batra, the Sebastian S. Kresge Professor of Marketing and director of the Yaffe Center for Persuasive Communication, commenting on the use of Britain’s Truefitt

& Hill brand for a new line of grooming products and barbershops in North America.The New York Times, December 25, 2003

“Chinese imports have helped many U.S. industries maintaintheir competitiveness and expand global market share in a waythat would not have been possible if they had been restricted toonly U.S.-based production. Thus, a rise in the yuan could costas many U.S. jobs as it saves, as well as contribute to a reversalof the low inflation that U.S. consumers have been enjoying foryears, which has kept interest rates low even as the U.S.economy recovers from recession.”

Linda Lim, professor of corporate strategy and international business, countering arguments that revaluing the yuan would resolve

the widening trade deficit between the U.S. and China.New Straits Times, Malaysia, November 2, 2003

“I think it [Russian steel giant Severstal’s efforts to acquireDearborn, Michigan, steelmaker Rouge Industries Inc.] saysthere are certain Russian companies that are ready to be globalplayers and abide by Western standards of transparency.”

Anna Meyendorff, associate professor and area director of finance for the William Davidson Institute, talking about the Russian purchase.

The Detroit News, December 22, 2003

“Meetings in some places don’t end until they reach thenatural end of a conversation. Tardiness is not looked upon as being rude or disruptive. In the United States, however,everything people do is controlled by the clock—not therelationship. It’s a mainstream American theme that hardwork is a good thing. We consider it the right way to live.When we are working, we tend to set aside emotions. Someother cultures put emotions into every aspect of their lives,including in the workplace.”

Jeffrey Sanchez-Burks, the Sanford R. Robertson Assistant Professor ofBusiness Administration, discussing American work styles and those of other cultures.

HR Reporter, November 14, 2003

“Leadership is a clinical art, and people need experience. You don’t train a physician by getting a researcher to performopen-heart surgery.”

Noel M. Tichy, director of the Global Leadership Program and professor oforganizational behavior and human resource management, explaining his course to

teach business leaders to run their own courses.The Economist, October 25, 2003

“The law is the same. If you have a company in America, andit’s owned by Americans, they pay their taxes. If you have thesame company in America, but it happens to be owned byforeigners, they pay the same taxes. There’s no difference.”

James R. Hines Jr., professor of business economics, public policy and economics,debunking the buy-American proponents’ assertion that foreign companies don’t

contribute as much to the United States in taxes as domestic firms.Industry Week, September 2003


Q U O T E U N Q U O T E

“China has the most rapidly growing automotive market in theworld. Almost everywhere else in the world the major players arecompeting against each other for market share in mature markets.”

Kenneth G. Lieberthal, the William Davidson Professor of International Business and professor of political science, talking about trade deals to expand

Chinese importation of cars and auto parts.

Marketplace, Minnesota Public Radio, November 12, 2003

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Managers often tiptoe around per-sonnel issues because they be-lieve legal restrictions hinder

their ability to select and evaluate employ-ees, supervise diverse groups and tacklepeople problems. This lack of supervisorysurefootedness is unwarranted. U.S. em-ployment laws give management broad dis-cretion in dealing with employees and gen-erally align with sound business practices.Still, managers need a solid understandingof basic legal principles and concepts to en-sure they are treating subordinates fairlyand protecting their employers from legalliability. Following are some guidelines thatwill help supervisors develop an internalcompass to guide day-to-day decisions asthey hire, evaluate and fire employees.

Job Descriptions: Be SpecificManagers often write purposely vague

job descriptions to give their company flexi-bility in assigning work. Bad idea. A spe-cific, detailed description of a job’s responsi-bilities eliminates misunderstandings withapplicants and, ultimately, the person hiredfor the job. It also clarifies the educationaland experiential criteria for the position andwhether a physical disability would preventan applicant from performing the job. Thislast point is an important legal consideration.

When lawsuits hinge on an applicant’s oremployee’s ability to fulfill a job’s physicalrequirements, courts often defer to the jobfunctions as they are listed in the job de-scription. Companies forfeit this deference,however, when the description does notclearly detail the requirements of the job.

Cast a Wide Net in the Job PoolIt’s common for managers to recruit

through a personal network—people theyworked with in the past, attended collegewith or met through a social activity, forexample. They know these people, after all,and can surmise whether they are a goodfit for the position and the company. How-ever, when managers hire employees simi-lar to themselves—a practice called the“Like Me” syndrome—it can impede equaljob opportunity. In extreme cases, it mayamount to illegal discrimination againstcandidates on the basis of gender, race, re-ligion, color or national origin. Even whenit doesn’t violate the law, the Like Me syn-drome can create a one-dimensional work-force that does not reflect a company’s cus-tomer base or community and fails toprovide a variety of viewpoints, experienceand educational background. To ensure abroad pool of applicants is considered,managers can advertise openings in a vari-ety of publications, recruit from a range ofuniversities or hire a headhunting firm.

Know the Ground Rules for Job Interviews

Some managers believe there are forbid-den interview questions—those that couldimply illegal discrimination in the hiringprocess—and everything else is fair game.It’s not that simple. It’s true that companiesmust avoid questions designed to elicit in-formation about an applicant’s race, relig-ion, ethnic background and other charac-teristics that cannot be used as the basis for

hiring decisions. But what about small talk,intended to put a candidate at ease, whichrefers to local schools and childcare alterna-tives? It could be perceived as an attempt toascertain the candidate’s family status andwhether she has children—informationthat should not be a factor in employmentdecisions. It can be difficult to defend againstan allegation of gender bias in such cases—particularly if male candidates are askedabout their golf game while women areasked about their children.

There are several steps that can help man-agers avoid legal pitfalls lurking within in-terview questions. First, they should under-stand and follow their company’s policiesand practices. This will ensure interviewsare conducted in a consistent manner thatminimizes liability for illegal discrimination.

Second, steer clear of interview ques-tions—and informal chitchat—that could beperceived as an attempt to obtain informa-tion about characteristics that cannot legallybe the basis for employment decisions.

Third, treat all candidates consistentlyduring the hiring process. Do not, for ex-ample, cut short an interview after a fewminutes when it becomes apparent that thecandidate is not viable.

Finally, focus interview questions on the job requirements and the applicant’squalifications—not on personal attributesor characteristics.

Verify the Résumé Managers often believe it is futile to con-

duct background checks on job candidates


Hire and Fire withoutGetting Singed or SuedBy Dana M. Muir

Muir is the Louis and Myrtle Moskowitz Research Professor ofBusiness and Law and associate professor of business law at theUniversity of Michigan Business School. She is a nationally knownexpert in legal and human resources issues, and her research has beencited by the U.S. Supreme Court and other federal courts. Muir is amember of the U.S. Department of Labor’s Advisory Council ofEmployee Welfare and Pension Benefit Plans, where she chairs theworking group on Defined Benefit Plan Funding and Discount RateIssues. She is the author of A Manager’s Guide to Employment Law:Protecting Your Company and Yourself.

I N T E L L E C T U A L C A P I TA L

A Manager’s Guide to Employment Law: Protecting Your Company and Yourself.

Dana M. Muir

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because former employers are unlikely toprovide substantive information about jobperformance. That’s okay. Even basic factsare valuable. Double-checking an applicant’semployment history confirms they worked atthe places, in the positions and for the timeperiods they claim.

Some managers, meanwhile, use alter-native methods to obtain meaningful ap-praisals of job candidates. They ask candi-dates for copies of performance appraisalsfrom prior jobs, for example, or solicit refer-ences from peers, customers and subordi-nates who may be more willing to talk to apotential employer than a former supervisorwould. However, don’t contact anyone asso-ciated with a candidate’s current employerwithout the candidate’s written consent be-cause it could create problems for them onthe job. And managers should employ suchalternative intelligence-gathering tactics—like all steps in the hiring process—fairlyand consistently.

Employers also can turn to one of themany firms that perform a full range ofbackground checking tasks. If you engagean outside firm to perform a backgroundcheck on a potential or current employee,however, you must comply with the FairCredit Reporting Act.

Be Forthright in Job AppraisalsManagers sometimes are less than candid

when they evaluate a subordinate becausethey don’t want a negative performance re-view to trigger or be used as evidence tosupport a discrimination complaint. It issafer to give a positive appraisal, they rea-son, than an honest-but-poor evaluation toan employee who might file a complaint.This approach is fraught with problems.First, the manager is saddled with a poorlyperforming employee who has no motiva-tion to improve and who may not even real-ize there is a need to improve. Second, de-partmental morale will likely suffer whenother employees see there are no conse-quences for the employee’s poor perform-ance. Third, this approach does not protectthe manager from allegations of unlawfuldiscrimination. A satisfactory evaluationmight exclude an employee from counsel-ing or access to a performance improvementprogram—available to other marginalworkers—that could help her qualify foradvancement or avoid layoff.

An honest negative appraisal protects amanager and the company by getting thepoor performance on the record. It alsogives the employee a chance to becomemore productive.

Don’t Be Afraid to Provide a Reference

Contrary to common belief, employmentlaw generally does not create a legal liabilityfor companies that provide an honest nega-tive reference, which may prevent a formerworker from landing a new job. Fear ofsuch liability often prevents employersfrom providing substantive references,which is detrimental to companies collec-tively because they benefit from candid ref-erences (as do good employees).

Over the past decade, a majority of statespassed laws designed to encourage employ-ers to provide references. These laws varyfrom state to state, but most of them pro-tect managers who act in good faith whenthey provide a reference.

Most companies still prohibit managersand human resources personnel from pro-viding more than basic facts on former em-ployees. Ironically, this approach makes itmore likely managers will unofficially pro-vide a verbal reference—without benefit ofcorporate guidelines that provide consis-tency and prevent illegal discrimination.

Companies Have Flexibility in Firing Employees

A primary tenet of employment law says(non-union) workers retain their jobs at thewill of their employer. This means they canbe fired for good reasons, bad reasons, un-fair reasons, arbitrary reasons or no reasonat all—as long as the reason is not specifi-cally prohibited by law. Courts have allowedworkers to be fired because they allegedlyhad an affair with their boss’ son, for exam-ple, or because their spouse issued a trafficticket to their manager’s wife. These rea-sons, while ludicrous, are legal because theyare not expressly prohibited by law. On theother hand, federal non-discrimination lawmakes it illegal to fire employees because oftheir race, color, gender, national origin, re-ligion, disability or for being pregnant orpassing their 40th birthday. Some state, cityand county laws add sexual preference andother characteristics to the list of prohibitedcriteria. In addition, verbal commitmentsand casual written assurances can be legallybinding; so managers should be carefulabout promises they make to employees,even informally.

In summary, U.S. employment law givesmanagers wide latitude in hiring, evaluat-ing and firing employees, but supervi-sors still must recognize and avoid subtlemistakes and potential pitfalls that can create legal headaches for themselves andtheir companies.


I N T E L L E C T U A L C A P I TA L

FACT OR FALLACY?

More About Employment LawA Manager’s Guide to Employment

Law: Protecting Your Company andYourself by Dana M. Muir is part ofthe University of Michigan BusinessSchool Management Series.

To order a copy, call toll free800.956.7739, fax 800.605.2665 or visit www.umbsbooks.com.Remember to use code UMB toreceive your discount.

To contact Muir directly, sendmessages to [email protected]

Answers: Numbers 1 and 3 are facts; 2, 4 and 5 are all fallacies.

1. You don’t need good cause to legally fire an employee. □ Fact □ Fallacy2. Job descriptions should be as general as possible to □ Fact □ Fallacy

maintain management flexibility in assigning work. 3. A negative job evaluation can be sufficient evidence of □ Fact □ Fallacy

unlawful discrimination for a member of a protected group to bring a lawsuit on that basis alone.

4. State law discourages employees from providing □ Fact □ Fallacyreferences for former employees because it makes employers liable for bad references.

5. If managers typically do not give references on former □ Fact □ Fallacyemployees, there is no legal risk in making an exception in order to give a positive reference for an outstanding achiever.

The bottom line: Data snooping accountsfor about half the profits forecast by a typicalempirical study that analyzes the impact ofone corporate characteristic, Kaul says. Adda second characteristic to the study and datasnooping may account for 80 percent ormore of the expected returns. “A large frac-tion of the reported relations between equityreturns and (corporate) characteristics couldresult from our collective familiarity withthe data,” the paper concludes.

So what’s the solution? Kaul suggestsanalysts resist the urge to conduct empiricalstudies until they develop a logical theorythat explains why the characteristics theyintend to analyze merit the effort. “Weneed to go back to theory to understandwhy a certain factor should matter,” hesays. “Once you abandon logic, you end upwith the ‘Flavor of the Day.’ ”

Many Common EquityTrading Strategies Fail to YieldStatistically Significant Returns

This is not the first time Kaul has skew-ered conventional wisdom and demon-strated what he good-naturedly calls his“bad attitude.” In the paper “An Anatomy ofTrading Strategies,” published in The Re-view of Financial Studies in 1998, Kaul andConrad evaluated 120 common equity trad-ing strategies and concluded that fewer thanhalf yield statistically significant returns.

The paper examines momentum invest-ing, which advocates buying equity shareswith rising prices in the belief they will con-tinue to rise, and contrarian investing, whichadvocates buying shares with fallen prices inthe belief they are primed to rebound. Kauland Conrad explain momentum investing isgenerally successful in the medium term(three to 12 months) while the contrarian approach delivers better results on long and short horizons. They provide evidence,however, that neither of these polar-oppositetrading strategies may be beating the mar-ket. Their apparent success, Kaul says, couldsimply be a result of the relatively high riskinherent in implementing them.

That’s not the end of the confusion.Kaul’s paper “Transactions, Volume andVolatility,” published in 1994 in The Reviewof Financial Studies, refuted the commonbelief that trading volume contributes tovolatility in stock returns. He and co-authors Charles Jones of Princeton Univer-sity and Marc Lipson of the University of Georgia found that it’s the number oftrades—and not the volume—that matters.That means that five transactions of 100


FA C U LT Y R E S E A R C H

slicing and dicing of finite sets of data. In anew study, Gautam Kaul, the John C. andSally S. Morley Professor of Finance, con-tends that data snooping accounts for mostgains resulting from different trading strate-gies based on stocks.

Analysts conduct endless regressionstudies involving company size, price/earnings ratios, cash flow and dozens ofother factors, Kaul explains, to unearth re-lationships that affect stock prices. Promis-ing findings are published and propagateand inform future studies. If, however,these patterns are spurious—“Run enoughregressions and you’ll find something,”Kaul says—then every analysis they influ-ence is skewed.

Kaul and two colleagues, Jennifer Con-rad of the University of North Carolinaand Michael Cooper of Purdue University,measure data snooping’s impact on finan-cial analysis in the article “Value versusGlamour,” published in the October 2003issue of The Journal of Finance.

“What is the extent of that bias?” Kaulsays. “This paper says it’s scary.”

Fishing for an Advantageon Wall StreetBusiness Professor Gautam Kaul challenges conventional wisdomwith his analysis of commonly accepted trading strategies andresearch findings on “data snooping”—bias resulting from theslicing and dicing of finite sets of stock market data.

Let’s say hundreds of fishermen trydozens of techniques under a vari-ety of conditions to determine the

best method to catch fish. Some cast dryflies that set upon the surface of the water,others troll the depths with elaborate luresand still others fish in quiet coves withworms and bobbers. They fish at dawnand dusk, in heat and through ice, in thecenter of the lake and along the shore.

After thousands of expeditions testingdozens of factors in every imaginable com-bination, they conclude fish migrate northon rainy days. The harder the rain, the far-ther north the fish congregate.

Now let’s say the relationship they ob-served between rain and fish occurred ran-domly and is not predictive. However, it hasbecome ingrained, so as fishermen testother variables—large and small hooks, liveand artificial bait, heavy and light sinkers—they always do so at the north end of thelake in the rain.

In the realm of stock market analysis thisphenomenon is called “data snooping”—aninevitable bias resulting from the endless

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More Opportunities for Women in Developing NationsMay Lead to Greater Stability,Less Violence

Multinational business leaders can domore to help women become meaningfulwage earners in developing nations, saysCindy Schipani, professor of business lawand co-director of corporate governanceat the William Davidson Institute.

Adopting proactive policies and pro-grams to promote the professional develop-ment of women potentially may benefit thecompany, its female employees and theirfamilies, she says. It is also possible that itmay lead to greater economic stability andlower rates of violence in the local society.

In their study, “Gender Voice and Corre-lations with Peace,” published by the Van-derbilt Journal of Transnational Law,Schipani and Terry Morehead Dworkin ofIndiana University’s Kelley School of Busi-ness looked at 144 countries and found acorrelative relationship between low levelsof gender inequity in the workforce andlow levels of violence in resolving disputes.

Although many nations have passed legislation banning discrimination in the hiring, treatment and compensation ofwomen, those laws are not always enforcedor sometimes are negated by culturalnorms, religious customs or traditional busi-ness practices.

“Business might play a role by grantingsocial rights and by adopting policies onnondiscrimination, providing mentoringand training programs, and implementingchild care and other family friendly poli-cies,” Schipani says.

Multinational companies can encouragecompliance with policies designed to inte-grate and fairly compensate and promotewomen within their organizations by estab-lishing educational programs for managers,offering incentives and instituting evalua-tions tied to pay raises.

Contact Schipani at [email protected].

Cross-cultural Communicationsand the Bottom Line

An American belief that personal relation-ships and emotions in the office are inap-propriate and unprofessional may interferewith communication and ultimately with pro-ductivity in today’s multicultural business en-vironment, says Jeffrey Sanchez-Burks, theSanford R. Robertson Assistant Professorin Business Administration and assistantprofessor of organizational behavior andhuman resources management.

Sanchez-Burks, who is also a psycholo-gist at the University’s Institute for SocialResearch, says, “East Asian, Latin Ameri-can and Middle Eastern cultures tend tobelieve that social and emotional relation-ships are just as important at work as a re-lentless focus on the task at hand.”

His research on what he calls ProtestantRelational Ideology or PRI—character-ized by the expectation that one should be more impersonal and emotionally de-

tached at work than in social situations—was published in the Journal of Personalityand Social Psychology.

Cultural differences in PRI play out in sub-tle ways, Sanchez-Burks explains. Being indi-rect to save a colleague’s feelings demon-strates a personal relationship. A blunt,say-it-like-it-is approach puts content aboveconcern for a co-worker’s emotional reaction.

Sanchez-Burks and colleagues at Michi-gan and in Korea and China have conductedexperiments showing cross-cultural commu-nication styles can fuel conflict and misun-derstanding in a diverse workplace. Euro-pean Americans were less attentive to indi-rect cues at work than they were in social situations, while East Asians were equally indirect at work and in non-work settings.

Research findings have implications forimproving cross-cultural working relation-ships. By creating informal environmentswhere employees from different culturescan relax and socialize with each other inthe office and by offering plenty of chancesfor employees to get to know each otheraway from the office, organizations canhelp to reduce cross-cultural misunder-standings at work, Sanchez-Burks says.

For more information, see www.si.umich.edu/ICOS/sanchezburks.pdf.

Contact Sanchez-Burks at [email protected].


FA C U LT Y R E S E A R C H

shares each will have more impact on marketvolatility than one transaction of 500 shares.

Given these contradictions, faulty doc-trines, debunked strategies and counter-in-tuitive conclusions, what’s an investor to do?

“Don’t try to beat the market,” Kaul says.“It won’t work.”

Kaul advises risk-averse investors to con-sider holding a diversified portfolio of equity

funds and investing for the long term toavoid idiosyncrasies that can devastate anindividual stock or sector. And don’t be sorisk-averse that you sidestep stocks; theyhave out-performed less risky bonds inseven of the past eight decades, Kaul notes.

“On the other hand, if you are risk-loving, all bets are off, and I have nothingfor you,” he said. “Do your homework,

pick something, throw your money at itand have fun.”

Kaul received the Business School’s Sen-ior Faculty Research Award in 2003 for“sustained exceptional and continuing con-tributions to building and maintaining astrong research environment in the school.”Contact Gautam Kaul at [email protected].

Dave Wilkins

Through their ongoing research, University of Michigan Business Schoolfaculty members continue to bring new knowledge to the

classroom and to the business community at large.Below are brief synopses of recent research in two areas.

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The tangle of extension cords wind-ing around the floor of the Busi-ness School Student Lounge has

disappeared, and students no longer com-pete for scarce electrical outlets along thelounge perimeter.

What do students appreciate most aboutthe renovated and freshly decorated Stu-dent Lounge? Plugs.

“We knew what had to be done. It was amatter of money,” explains James L. Mur-dock, assistant dean of finance and plan-ning. Also, Davidson Hall’s concrete floorsposed a challenge. To cut into the concreteto install the electrical and data distribu-tion systems to meet today’s standards wasprohibitively expensive. However, whilecreating additional staff workspaces on the third floor of Kresge Library in thesummer of 2002, Murdock and project en-gineers discovered a low-profile raisedflooring system that creates a three-inch el-evation to accommodate cable and electri-cal wiring. The raised flooring system wasinstalled in there and in the StudentLounge this past summer. In all, about 20additional group spaces for six to seven stu-dents were added.

“This is definitely a huge improvement,”says Emily Collings, MBA ’04, who, likemany of her classmates, spends five to 10hours a week in the lounge, participating ingroup meetings and studying.

When asked about the renovation, PierreCox, MBA ’04, mentions the new carpetand electrical outlets on each table. It’s saferfor laptops and for people because studentsare no longer tripping over cords, Cox says.

In addition to giving students more spaceto congregate, Jed Taylor, MBA ’04, saysthe renovation has created a communityfeeling, particularly during peak times ofthe day when most chairs and benches instudy group booths are occupied.

New booths along a north-facing windowwall, and tables and chairs that accommodatefour to six students, provide flexible spacesfor team meetings as well as a comfortablespot to study or hang out between classes.

Funds for the renovation came from giftsand pledges from the Class of ’02 with ad-ditional support from the Class of ’77,which selected the lounge renovation as thefocal point for its 25th anniversary gift tothe Business School.

I backed the funding of the Student Lounge because

I didn’t think the look was in linewith what you would expect from one of the best business

schools in the country.Rob Oliver, MBA ’02

George A. Isaac, BSE ’75, MBA ’77, andClass of ’77 chair, is pleased that so manystudents use the area throughout the day.“The Student Lounge needed a renovationto remain competitive. Our class fully en-

dorsed the project based upon commentsfrom the recent graduating class about theimportance of improving the lounge,” saysthe president and CEO of GAI CapitalLtd. and Pyramid Scrap Management ofMaumee, Ohio.

Michael Mandecki, BBA ’02, whochaired the BBA student pledge campaign,says, “I especially like the booth-like tablesset up along the walls. When I was a BBA,the difference between the small and largelounges was striking, but no longer. Thelounges now complement each other in styleand purpose.” Mandecki is a client engage-ment executive with Wipro Technologies.

Al Leandre, MBA ’02, and Rob Oliver,MBA ’02, who helped organize the MBAclass fundraising efforts, are pleased withthe lounge’s aesthetics and improved func-tionality. Leandre, president of VyalexManagement Solutions, says, “I’m proud.Now I can take my colleague who attendedNorthwestern’s Kellogg School of Manage-ment into the lounge and don’t have tomake excuses.”

Oliver, executive development programconsultant for MassMutual FinancialGroup, says, “I backed the funding of theStudent Lounge because I didn’t think thelook was in line with what you would ex-pect from one of the best business schoolsin the country. Also, when I was there, wewere fighting for meeting space and power.Now it is much easier to say ‘meet you inthe Student Lounge.’ ”


O VAT I O N

Plugged in

“Meet You in theStudent Lounge”

Funds to renovate the Student Lounge came from the Class of ’02 and the Class of ’77.

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Shortly after Sharon ReedWalker, BBA ’74, MBA’81, began her first job at

Dupont, her group was askedto review several of the com-pany’s product lines. Walkerwas assigned the smallest andleast significant product.

“Now, you might say toyourself, I’m the newest andyoungest so they gave me thisinconsequential task,” her bosstold her. “Or you can look at itas I’m hoping, and as I in-tended, and give it a fresh look.Tell us what you think.”

Walker did. Based on heranalysis, she recommended thatmost of the product line beeliminated.

Wherever she lives, shefinds ways to involve

herself in the community,whether through her

church, the YM/YWCA,professional groups or

the local school system.

“Smaller companies wereproducing it more cost effec-tively,” she relates. “Phasing itout would reduce our overhead.Who’d have thought they’d lis-ten to a 23-year-old? But theyendorsed the proposal.”

It was a heady start to a ca-reer that has taken her throughthe accounting, treasury, financeand planning departments ofDupont, Scott Paper, Soft SheenProducts and Mead JohnsonNutritionals, along with travelto nearly every continent.

It also predicted her aptitudefor strategic planning. As vicepresident of strategy, informa-tion management and businessintelligence for Mead JohnsonNutritionals, Walker is in herelement, tracking consumerneeds and social trends on anational and global basis.

“Our primary business is in-fant formula, marketed in morethan 100 countries. Since we’re adivision of a pharmaceutical com-pany (Bristol-Myers Squibb), we

are a hybrid of scientific researchand consumer product,” she ex-plains. “For us, improving the sci-ence and understanding the con-sumer are equally important.”

A native of Flint, Michigan,Walker entered the University

with thoughts of becoming amath teacher. She was invited totransfer to the BBA program,where she became captivated bybusiness history—how corpora-tions grow large and powerful.She joined Dupont and re-


turned there after earning herMBA, resisting offers from sev-eral other firms and the lure ofconsulting. She says, “I likebeing associated with a largemulti-national corporation thatmakes and sells product.”

Large—but not impersonal.Walker is always accessible tocolleagues, students and otheradvice-seekers. Wherever shelives, she finds ways to involveherself in the community,whether through her church,the YM/YWCA, professionalgroups or the local school sys-tem. After years of counselingyouth about money matters,she now teaches a series of freeworkshops on financial em-powerment. “It’s not about ca-reer,” she tells them. “It’s aboutlife and being comfortable withthe choices you make, beingtrue to your values.”

Among the choices she val-ues most is her active affiliationwith the Business School,which she describes as “ex-tremely rewarding.” Walkerserves on the school’s Corpo-rate Advisory Board and hasbeen an adviser to the TauberManufacturing Institute sinceits inception in 1993. “If youmake yourself available,” shefinds, “people are willing toutilize you.”

It’s all part of a continuum.Her parents instilled a sense ofresponsibility and confidence, reinforced by her counselors and employers. “The guys I’veworked with were always sup-portive and willing to stretchme,” she says. She is likewise an-chored by her husband Aronand their three grown daughters.

Over her years in accountingand finance, Walker alwayswas drawn to the planning as-pects. Now she’s in “the catbirdseat,” extracting from varioustrend trackers the best coursefor her firm to pursue. “I get tospend my time working withpeople on all levels to make lifebetter for our customers,” shedeclares. “It’s a fun job.”

Pat Materka

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Tracking Trends on a Grand ScaleSharon Reed Walker, BBA ’74, MBA ’81

When the Universityof Michigan Classof 1993 sang its

final “Hail to the Victors,” An-drew Masterman, MBA ’93,had more to celebrate thanmost: three master’s degrees—in business, Japanese studiesand industrial engineering—all earned in three years.

But perhaps three degrees inthree years isn’t so startling forsomeone who has completedmore than 100 dives in the SouthPacific and nine triathlons.

Masterman is president ofWalbro Engine Management,the world’s largest manufac-turer of carburetors. The firmalso manufactures ignitionsand f lywheels for small en-gines and fuel systems and fuelinjection components for out-door power equipment, marineand recreational products.

The key to success:clearly communicatingexpectations and the

philosophy of the parent company

and demonstrating the advantage of

focusing on a global market.

The son of an Episcopalpriest, Masterman has lived inall four corners of the UnitedStates. He graduated from Col-orado College with a degree inpolitical science and came toMichigan to study business andJapanese. “Japan was the hot-bed of manufacturing,” recallsMasterman. After arriving atthe University, he expanded hisstudies to include engineering.“The University had a newprogram to teach Japanese toengineers. It made me think,why couldn’t a student of Japa-nese learn engineering?”

After graduating, he joinedIntel Corporation as a senior fi-nancial analyst, and in 1995was recruited by Walbro Cor-

poration to serve as the firm’sfirst foreign general managerin Japan. Integrating an opera-tion that had functioned sepa-rately for 20 years into a globalorganization was a challenge,Masterman says. The key tosuccess: clearly communicatingexpectations and the philoso-phy of the parent company anddemonstrating the advantageof focusing on a global market.He went on to become presi-dent of Walbro Asia Pacificand was named president ofWalbro Engine Management

in 1999. His mandate: to createa global fuel systems organiza-tion focused beyond the auto-mobile market. Today, Walbroemploys 3,400 people in ninecountries.

“Not a week goes by that Idon’t use Japanese in my work,in conversations and reports,”says Masterman, who is proudof how the Asian BusinessConference has grown fromthe 1991 Japanese BusinessConference. He also appreci-ates the fact that BusinessSchool professors “demonstrate


an ongoing interest in studentsand alumni. They are keen ondeveloping careers and theknowledge base in the faculty.”

Masterman is upbeatabout American

manufacturing, citing the narrowing gap in quality between

Japanese and American products.

Masterman helped createthe base with Joel D. Tauber,BA ’56, JD ’59, MBA ’63, andothers to establish the TauberManufacturing Institute (TMI)in 1993. “The caliber of stu-dents coming through TMI isimpressive. They are able todrive home solutions in a shortperiod of time,” notes Master-man, who helped judge Spot-light! 2003, an intense, day-long competition in whichTMI students presented theircorporate-sponsored projects.

Masterman is upbeat aboutAmerican manufacturing, cit-ing the narrowing gap in qual-ity between Japanese andAmerican products. “Ameri-can manufacturing is differentthan it was 20 years ago andwill be different 20 years fromnow. To stay competitive willrequire a concentrated focuson improving lead time andspeed to market and usingtechnology effectively,” he pre-dicts. “Although threats fromChina and other low-costmanufacturing locations are a constant topic, using regionaladvantages such as quick de-livery will help to preservelocal presence.”

In addition to spending timewith his wife Cheryl and theirtwo sons Zachary and Nicholasat their home in Tucson, Ari-zona, Masterman plays golfand serves on the advisoryboard of Spartan Light Metalof St. Louis, Missouri.

Mary Jo Frank

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Mastering Manufacturingin a Global MarketAndrew Masterman, MBA ’93

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Globalization istransforming the wayAmerica does businessas firms increasingly

rely on aninternational

workforce for goodsand services ranging

from pharmaceuticalsand electronics totelemarketing andfinancial analysis.

What are the key drivers of outsourcing overseas and why is it happening now? What will be the impact on the U.S. economy and American workers?

What challenges and opportunities does this create? How willoutsourcing affect opportunities for MBAs, and how is the Business School responding to trends in outsourcing?

Dividend asked four Michigan Business School faculty to discuss the ramifications of outsourcing—moving a process or function across a firm’s boundary—and offshoringor outlocating, which involves geographic boundaries. Thefollowing is a condensation of their discussion. Panelists are:� Izak Duenyas, the John Psarouthakis Professor of

Manufacturing Management and associate dean for facultydevelopment and research

� Robert Kennedy, clinical professor of corporate strategy andinternational business and associate director of the WilliamDavidson Institute (WDI)

� C. K. Prahalad, the Harvey C. Fruehauf Professor of BusinessAdministration and co-chair of the Center for Global ResourceLeverage: India

� Dennis G. Severance, the Accenture Professor of Computerand Information Systems

Artwork by New York City–based illustrator A. J. Finlayson, BFA ’03, Parsons School of Design


GlobaliGlobaliTransforming the Way

America Works

zationzation


Severance: It is more of the sameexcept it is hitting very close to home,affecting our graduates and otherhighly trained professionals.

Duenyas: If you look at it from avalue chain perspective, you are lookingto see whether you can add more valueto the service or manufactured good youproduce through outsourcing. In themanufacturing sector, companies havelong asked what portion of their valuechain can be outsourced. For a manu-facturing company today, the strategicquestions are: What parts are core to thecompany? What parts can someone elsemake? In what location do we make it?A company has to consider the valuechain and calculate the costs. Servicesare now going through the same types ofanalysis and decision making.

Prahalad: It also is important to rec-ognize new characteristics of outsourc-ing. One is remote delivery of servicesvia telecom network. With IT andother services, your work and responsecan be real time, changing the charac-ter of how you fragment your valuechain. By breaking the value chain innew ways, a company can get betterservice, higher quality and more speedin addition to lower cost.

Dividend: What shouldbusinesses do? How do theyassess opportunities andadjust to succeed in a trulyglobal marketplace?

Prahalad: The outsourcing move-ment is challenging the way you run acompany, everything from how youcreate business processes to transactionprocessing. This presents a challengefor vendors and large global companies.How do we manage internal processes?How do we build a network of sup-pliers so there is no such thing as out-sourcing? This forces us to come toterms with what is really the boundary,the basic footprint of the firm.

Kennedy: For example, moving soft-ware activity or payments processing off-shore offers a much greater cost advan-tage than moving manufacturingoffshore. Typically when you move autoparts offshore, you save 20 percent to 30percent. When you move software devel-opment offshore, you save 60 percent to80 percent once you have the infrastruc-ture in place. In the past you would getsomewhat lower productivity offshore,which was outweighed by the cost sav-ings. Now, some suppliers are seeing pro-ductivity actually increase. In the call cen-ter business, low-end centers in theUnited States typically recruit peoplewithout high school educations.Turnover is 100 percent to 150 percent peryear. In India, they won’t interview youunless you speak fluent English and havea college degree, so there are tremendouscost savings and quality improvements.

Also, the unit of analysis is muchsmaller. In manufacturing, we move awhole factory or outsource a large partof the value chain. Now some firms aremoving specific jobs, perhaps onlythree or four, which is blowing apartthe value chain. How do we disperse allthese activities around the world andthen reintegrate them?

Dividend: What is offshoringand why has it become such an important topic?

Severance: Offshoring is a phenom-enon of outsourcing, which has beenaround since we started thinking aboutvertical integration—how much a firmshould do inside. Work is going to Indiaand China for two reasons: Transporta-tion has become more reliable, and communication costs have dropped.Also, the perceived risk has gone down.Workers in India, China and othercountries are doing the same jobs better,less expensively and more reliably thanwe can in the U.S. We also have devel-oped methods for and feel more com-fortable about managing talent overseas.

Kennedy: Is this a continuation ofpast trends? For example, 40 percent ofthe people worked on farms and thenmoved to factories, 40 percent of thepeople worked in factories and thenstarted moving to services. Is this fun-damentally different?

(Left to right) Professors Duenyas, Severance, Kennedy and Prahaladdiscuss offshoring in the Business School’s new John R. and Georgene M.Tozzi Electronic Business and Finance Center.

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Duenyas: I think we can look tomanufacturing for valuable lessonsabout outsourcing. When decisions aremade on cost alone, without consid-ering the effect on the whole supplychain, companies typically fare worse.When there are separate purchasing,quality control and logistics depart-ments, all their incentives are different. Iworked with a company that changedfrom a U.S. supplier to a Brazilian firm;the switch was made on price alone.They didn’t check on quality, whichadded enormous costs. Firms that takeinto account quality, cost and respon-siveness in their supply chain and valuechain analysis gain a distinct advantage.

Prahalad: The good news aboutoutsourcing services, especially call cen-ters and software transaction services, isthat quality standards are set by thevendor, not the customer. Vendors aresetting standards that are far ahead ofwhat customers are used to. The firstthing Indian software companies do islook at the business practice and say wecan bring you to the modern age if youlet us. Most firms’ business processesare not well documented. Outsourcingforces firms to become more efficient,transparent and better documented.

Severance: I agree that outsourcingrequires better documentation but thinkyou need to distinguish between largeand small companies. Most large corpora-tions are well run. This kind of disciplineis being brought to small organizations.

Prahalad: What the Indians, for ex-ample, bring is a methodology on howto document. This underlying method-ology is not well understood. For exam-ple, it may be a small piece of work involving 50 people. To decide whatshould be done on site and off site re-quires a methodology, as does handingover a process from an American com-pany to an off-site location.

New India Center to Focus on “Next Practices”

The Business School’s new Center for Global Resource Leverage: India hasa simple mission, says C. K. Prahalad, a center founder and co-chair.

“We are focusing on next practices, not best practices. The India Center’sfirst priority is to isolate issues of great importance for the future and framethem to create the right debate, both in the business community and in publicpolicy,” explains Prahalad, the Harvey C. Fruehauf Professor of BusinessAdministration and professor of corporate strategy and international business.

The center also will bring research findings into the classroom so studentscan reflect on how they should position themselves in terms of skills andattitudes toward opportunities, says India Center co-chair M. S. Krishnan, theMichael R. and Mary Kay Hallman Fellow and professor of computer andinformation systems.

When he announced formation of the center in August, Dean Robert J. Dolansaid, “The center is a response to the emerging pattern of restructuring ofindustries and the value chains of firms. Increasingly, managers are focusing onmethods to leverage resources globally. Our goal is to become a world leaderin research at one of the leading edges of change—global restructuring ofindustries and global resource leverage.”

For more information about the Center for Global Resource Leverage: India,contact Krishnan at [email protected].

(Left to right) C. K. Prahalad and M. S. Krishnan, co-chairs of the Business School’s new Center for Global ResourceLeverage: India, in front of Frank Stella’s “Chodorow III” in the Executive Residence lobby


Kennedy: In the 1990s, U.S. firmsthought a lot about core competenceand outsourcing. GE employs 30,000people overseas, a number that is in-creasing quickly. I think the benefitsyou cite—routinizing the task anddefining the information flows andprocesses—also can occur when donewithin a firm. You must put thesestructures in place if you are going tooperate remotely. Bechtel operates witha huge number of engineers overseas,as do GE, pharmaceutical companiesand many software firms. Much of thework is crossing geographic and firmboundaries, to India, the Philippines,Uruguay, Morocco and Costa Rica.

Dividend: Suddenly Indiaand China are big players in the global marketplace.Why and how important will this be?

Prahalad: India and China have oneoften-overlooked competitive advan-tage—the magic of large numbers.When you have a billion people, itchanges the game. Imagine an Indiawith 200 million college graduates

(only 16 percent of India’s population)and 500 million technically trainedpeople (carpenters, electricians andsoftware-maintenance types), whichrepresents only 40 percent of India’spopulation. Imagine a labor pool of 200million people. It is beyond our com-prehension. In the United States, 35percent of people go to college so atmost we can have 70 million college-educated people. For the first time weare starting to say population may notbe a disadvantage if you know what todo with it.

Duenyas: India has two importantadvantages: the early-mover advantageand English is widely spoken there. AFinnish company recently moved itscall center to India because it had theinfrastructure, an example of the early-mover advantage. Because Indiansdon’t speak Finnish, the firm relocatedFinnish college students to India to an-swer the phones.

Severance: Speaking English is im-portant currently because the largest mar-kets at this time are English-speakingcountries. India’s advantage is certainlydifficult to match: a society that valuesdiligent work and is well educated.

Dividend: What should other countries do if theyseek to emulate India?

Severance: There are alternativemodels for outsourcing work. You talkof GE hiring 30,000 people overseas.You see firms like Dow experimentingwith corporations that are headquar-tered in Singapore, India, Ireland or Is-rael. In the dominant model, third-partyproviders—IBM, Accenture and EDS-type firms—go to India to find quali-fied staff. As a manager, I write my con-tract with Accenture and the workwinds up being outsourced. Some peo-ple say if it is important, I won’t do itoverseas, citing 9-11 fears, fears of pri-

vacy, poaching and unforeseen delaysonce into the relationship. Even if thereare functions I would not offshore, Imay do so inadvertently because a third-party provider moves the records.

Kennedy: India for some historicalreasons had a big head start on soft-ware and developed an infrastructure,a head start that has translated intoback office processing as well. India isgoing to stay fairly far ahead, but Ithink there will be many smallerproviders nipping at its heels. No one isgoing to have millions of jobs, but inCosta Rica or Uruguay, 100,000 newjobs make a huge difference.

Dividend: How shouldbusiness people think about offshoring?

Duenyas: The first thing is to under-stand and document your value chain.The next step is to understand what isstrategic, what tasks to keep inside andwhat can be outsourced, and then de-cide if you will do it yourself or hireanother firm. You should develop theexpertise to understand your valuechain for yourself. That is a key com-petitive issue.

Severance: Offshoring creates op-portunities for technology organiza-tions. For decades we have had an un-dersupply of qualified IT professionals.

Robert Kennedy

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Dennis G. Severance

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Globalization


Now, you find people overseas who arequite capable of doing this at a higherquality than you can do it here. Tradi-tional barriers—it’s not been done be-fore, concerns about telecommunica-tion costs, unfamiliarity with differentwork practices and ethics—have beenbroken down.

Duenyas: We tend to ask: “Is thisgood for the U.S, for U.S. labor andU.S. firms?” These are three separatequestions. I believe the businesspersonmust perform the analysis at the com-pany level and think about companiesthat will be good business partners.Many good companies are in Indianow, but in the future good companieswill be elsewhere. The businesspersonshould take into account the risks, in-cluding where the company is locatedand the rewards of offshoring, but thathas always been part of the analysisthat companies make.

From the point of view of the personlooking for work or the state trying toincrease employment, the only impor-tant question is where the jobs are. Off-shoring is bad if it is taking jobs fromwhere you live, good if it brings jobsfrom other countries to where you live.If you are looking for work in Ken-tucky, Toyota is the greatest U.S. com-

pany. We are now in the situationwhere GE, traditionally considered aU.S. firm, is taking some of its jobs toIndia, and Toyota is opening more fac-tories in the U.S. At the company level,both firms are offshoring from theirtraditional locations because this is ben-efiting them. For the person lookingfor work, the benefit/cost calculation isentirely different.

Prahalad: We have promoted glob-alization, and it is working. Unfortu-nately, globalization is hurting seg-ments of our people. America’s biggestadvantage is its continuous capacity toinnovate and create new businesses.The biggest mistake we have made isunder-investing in R & D. We must in-vest massively in research, biotechnol-ogy and bioinformatics, which willsupport new businesses. You cannotprotect jobs that can be done bettersomewhere else, but you can createfundamentally new jobs that no oneelse knows how to do.

Dividend: How will thesechanges affect how weeducate MBAs and others?

Prahalad: The question we mustask is, “In what new skills do we haveto train our MBAs?” For example, howdo they manage projects in multiple lo-cations? How do we train people to un-derstand basic IT infrastructure in thecompany? In human resource manage-ment, we should look at it as an oppor-tunity to get more diversity into ourcompanies. How will we prepare man-agers for the next 15 years?

Severance: When you get a $1 jobdone for 33 cents, you have created 66cents excess, and the country that getsthe job is better off for it. But someone

has been dislocated from a job. If thisperson has a comparative advantage, heor she ought to move on to a job thatmakes use of that comparative advan-tage and creates additional excess. Theissue for the individual who has beendisplaced, however, is does the job existand am I capable of doing it? We must

invest at the macro-level—stimulationof R & D—and at the individual level—retraining—to lubricate the transition tothe next thing we are going to do.

Prahalad: Traditionally in theUnited States, we have assumed the in-dividual bears the total burden of mak-ing the transition. How can we make itless painful? Tariffs and visa restric-tions are self-defeating because we losecredibility as a nation. My attitude isthat every time other countries becomesuccessful, we sell more jet engines, soit is not bad for China and India to besuccessful. They don’t make jet enginesor CAT scanners. We do. And if 33percent of our students are from over-seas, it’s one of our nice exports, exportsthat keep us employed.

(For more comments about globaliza-tion and its impact on politics, the role ofinformation technology and trust in out-sourcing, and how outsourcing is chang-ing healthcare, visit http://www.bus.umich.edu/NewsRoom/Special Reports/Outsourcing.htm.)

Izak Duenyas

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SUSTAINABLETRANSPORTATION

SUSTAINABLETRANSPORTATION

Transportation and related challenges—from gridlockand long commutes to the loss of farmland and de-cline of inner cities—were examined from multipleperspectives at “Mobility in a Sustainable World: A

Complex Systems Approach,” a conference held at the Michi-gan Business School and supported by such high-profile spon-sors as Ford Motor Company’s Research and Advanced Engi-neering Group and the National Science Foundation. At theconference organized last summer by the University of Michi-gan’s Erb Environmental Management Institute and Centerfor the Study of Complex Systems (CSCS), participants usedfor the first time the science of complex systems to begin tocreate a road map for transportation’s future. In essence, the ul-timate question is who will be the Henry Ford of the new mil-lennium? Who will transform transportation as we know it?

When Henry Ford designed the Model T in 1908, the in-ventor promised “to build a motorcar for the great multi-tude,” giving “a large number of men employment at goodwages” and enabling families to enjoy “the blessing of hoursof pleasure in God’s great open spaces.”

The automobile has brought unparalleled economic andsocial benefits in the form of convenience, empowerment, in-dependence, economic productivity and accessibility to mar-kets, healthcare, education, culture and employment.

Unfortunately the American dream—car ownership and a home in the suburbs—also has a darker side. “Our love affair with fossil fuel-based, sprawl-inducing, auto-centered


Twists, Turns and Potentially Huge Rewards

For the visionary who transforms America’s transportation system, the potential payoff is enough to make even Bill Gates blink.

(Left to right) Conference organizers Thomas N.Gladwin, MBA ’71, PhD ’75, director of the ErbEnvironmental Management Institute, and Carl P.Simon, director of the University’s Center for the Studyof Complex Systems, are working with Ford MotorCompany on a long-term project called “Initiative onMobility in a Sustainable World.”

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transport systems is ruining the environment,” says ThomasN. Gladwin, MBA ’71, PhD ’75, the Max McGraw Professorof Sustainable Enterprise at the Business School. Gladwin’sproof points, numerous and discouraging, include: green-house gas generation leading to climate disruption, air andnoise pollution, biodiversity loss induced by habitat fragmen-tation, polluted runoff and stratospheric ozone depletion.

“We live in a world of interlocking systems. We can’t sepa-rate things into politics, economics, science, ecology and cul-ture. Everything is intertwined,” Ford Motor Chairman andCEO William Clay Ford Jr. recently observed.

Scholars, researchers, urban planners, government offi-cials, corporate executives and environmental advocates ex-plored how to ensure future generations can expand uponHenry Ford’s dream—to have good jobs and enjoy nature’sopen spaces with a next-generation transportation system

that is life-supporting, both ecologically and socially. “It’s thegrand challenge of our time,” Gladwin says.

The Science of ComplexityA mobility system, like a family or ecosystem or economy,

can be viewed as a complex system, said Michigan’s Center forthe Study of Complex Systems Director Carl P. Simon. TheUniversity of Michigan is a pioneer in complexity science.Simon described the workshop’s mission as “beginning to har-ness the emerging science of complexity to design mobility sys-tems that serve to secure a sustainable human future.”

Think of the players involved: consumers, politicians,transport and energy companies, land developers, bankers,regulators, planners, voters and action groups, all with differ-ent interests, preferences and strategies. They interact witheach other in complex, convoluted ways shaped by history,context and institutions.

It is a system that is unsustainable, Simon explained. It rep-resents trillions of small-scale, short-term decisions made byindividuals. All of the decisions appear to be rational actionsby individual decision makers, but when taken together thedecisions often produce collectively adverse results.

Although the science of complexity is still in its infancy, work-shop participants concluded it offers potential for providing


This “puzzle-solving framework” illustrates the complexweb of relationships and feedback among natural,technological, institutional and behavioral systems.

(Left to right) John Sullivan, technical leader of FordMotor Company’s Sustainability Science Program, andJohn Heywood, director of the Massachusetts Instituteof Technology’s Sloan Automotive Laboratory, areamong those working on sustainable mobility issues.

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BEHAVIORALQuality of life

Values/AttitudesConsumer preferences

Population densityLifestyle choices

Land use patternsWork patterns

Privacy concernCongestion reaction

Shopping habitsAccessibility

Commuting times

INSTITUTIONALGovt. regulation

Zoning lawsProperty rightsAuto ownership

Inequality toleranceIncome levels

Household spendingTax policiesSubsidies

Smart growthCivic participationHousing policies

TECHNOLOGICALEnergy consumption

Vehicle/Fuel efficiencyPublic transportHighway design

EmissionsTraffic flow

Lightweight materialsInformation technologyTelecommunications

R & D prioritiesE-Commerce

Vehicle speed/power

NATURALHuman healthBiodiversity

Energy supplyClimate

Wildlife habitatAir quality

Water qualityForests

WetlandsOpen spaceGroundwaterAesthetics

new questions, concepts, design principles and methodolo-gies for modeling, simulating and developing strategies forhuman mobility systems in harmony with nature, justice andthe future. The complex systems approach may help pin-point a small set of critical variables and processes that con-trol and guide the evolution of mobility systems, thus discov-ering the “leverage or tipping points” through which thesesystems are capable of promoting positive change, says Glad-win, adding, “Complexity science may be the key to thetransformational change and to out-of-the-box solutions thatwill be required.”

For example, Brad Allenby of AT&T described how tele-working saved AT&T more than $150 million in real estatecosts, productivity increases, and retention and recruitmentbenefits. Sue Zielinksi, of Moving the Economy in Toronto,provided an upbeat vision of the “New Mobility,” i.e., inte-grated, smart, clean, service-oriented and user-focused, madepossible by Internet, wireless, smartcard, electronic paymentand e-commerce applications.

Communities must focus on accessibility rather than mo-bility, said Douglas Kelbaugh, dean of the A. Alfred Taub-man College of Architecture and Urban Planning, who


Science ofComplexSystems

Searches for “Hidden Order”

The word complexity derives from the Latin verb complecti (to twine together) andthe noun complexus (network). A system becomes complex when it has manydiverse components interacting in nonlinear ways. The science of complex adaptivesystems is emerging from the interplay of many disciplines, including physics,

mathematics, biology, economics, engineering and computer science. It seeks to discern the general “organizing” principles that guide the behavior of complex

systems, focusing particularly on how the “global” properties of whole systems emergefrom the interactions of their parts. As the University of Michigan’s John Holland puts it, the young science searches for the emergence of the “hidden order” in systems as diverseas cells, brains, economies, ecosystems, ant colonies, stock markets and the Internet.

In searching for how large-scale patterns arise from interactions of simple things, the unfolding science of complexity deemphasizes the traditional goals of prediction,optimization and control in favor of deepening understanding of systems characterized by diversity, nonlinearity, dynamics, novelty and self-organization.

Research typically is conducted with a combination of computational methods and mathematical analysis, often in the form of agent-based modeling and nonlinear system dynamics modeling. These methods have been applied to a diverse array ofphenomena at Michigan and elsewhere, including traffic patterns, spread of disease,emergence of cooperation and altruism, ecological diversity, trading patterns andcollaborative networks.

The hope is that the complex systems approach will uncover deep patterns andprocesses of organization, which hold across systems studied in different disciplines, thus promoting intellectual progress through cross-fertilization. Another hope is that lessons learned at one level may be applicable at other levels in nested system hierarchies.

The Santa Fe Institute and the University of Michigan are pioneers in the study of complex adaptive systems. The U-M Center for the Study of Complex Systems bringstogether 60 professors from around the University, including the Business School, inresearch and education about complex adaptive systems. For more information, seehttp://www.cscs.umich.edu/ and http://www.santafe.edu/.

Thomas N. GladwinThe Max McGraw Professor of Sustainable EnterpriseUniversity of Michigan Business School

Thomas N. Gladwin says,“Our love affair with fossilfuel-based, sprawl-inducing,auto-centered transportsystems is ruining theenvironment.”

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Mobility Facts and Trends■ The U.S. is losing two acres of farmland, open space

and wildlife habitat every minute to sprawlingdevelopment (American Farmland Trust).

■ The average American spends 443 hours per yearbehind the wheel driving 10,000 miles (U.S.Department of Transportation).

■ The annual time idling in traffic jams in large U.S.cities rose from 11 hours per person in 1982 to 36hours in 1999, creating “congestion costs” estimatedat $78 billion (Texas Transportation Institute).

■ U.S. taxpayers subsidize the fossil fuel industry to thetune of $210 billion per year and subsidize automobileuse at $257 billion a year, adding up to over $3,000per taxpayer (Earth Policy Institute).

■ The transportation sector generates one-third ofAmerica’s greenhouse gas emissions (about eightpercent of total global emissions) and is the fastest-growing source (Environmental Protection Agency).

called for “transit-oriented development” that mixes higherresidential density with shops and employment, yieldingfewer and shorter automobile trips.

Gladwin, director of the Erb Environmental ManagementInstitute, urged participants to consider nature’s wisdom as asource of design inspiration: “From 3.8 billion years of R & Dwe know that natural systems move and access things via adiverse array of strategies and processes; powered by the sun;working through mutual associations; relying on local sourc-ing, adaptation and expertise; minimizing travel by workingand living in the same place; producing little waste; payingattention to limits and curbing excesses via self-regulation;employing artifacts self-assembled in water without toxins,all according to a logic of getting better rather than bigger.Surely we can learn from this.”

Kenneth C. Hass, manager of the Physical & Environmen-tal Science Department of Ford Motor Company, praisedworkshop participants for embracing the full scope and di-versity of the issues and outlining a research agenda that of-fers new ways of thinking about how global transportationsystems have evolved and what changes might be needed toensure a more sustainable path forward.

The conference offered a glimpse of a larger and longer-term partnership, the “Initiative on Mobility in a SustainableWorld,” launched by the Erb Institute, CSCS and Ford to de-velop a program of research and policy formation and imple-mentation to create mobility/accessibility systems consistentwith a sustainable human future. Created in 1996 through thegenerosity of Frederick A. Erb, BBA ’47, and his wife Barbara,the Erb Environmental Management Institute is jointly ad-ministered by the Business School and the School of NaturalResources and Environment.

As part of an agreement with the World Resources Insti-tute (WRI), the initiative will collaborate with WRI to ex-plore agent-based modeling of the transport systems of suchcongested, polluted megacities as Mexico City and Shanghai.The initiative will include graduate seminars, senior execu-tive programs, workshops, speaker series and faculty researchprojects focusing on complexity, mobility and sustainability.Three dozen Michigan professors, deans and external schol-ars are participating.

The initiative is one of the first research projects to be sup-ported by the University’s new Center for the Advancementof Behavioral and Social Science designed to provide oppor-tunities for faculty to work with scholars and non-academicsfrom around the world on innovative, high-risk collaborativeprojects addressing some of society’s most pressing problems.


(Left to right) Conference panelists Allen Hammond,vice president for innovation at the World ResourceInstitute, and Douglas S. Kelbaugh, dean of the A. Alfred Taubman College of Architecture and Urban Planning

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Noting the University’s tradition of encouraging transfor-mative research that crosses disciplinary boundaries, Univer-sity Provost Paul Courant saluted workshop participants for“working on problems that are too hard to solve,” adding “thisis exactly what the University of Michigan ought to be about.”

To learn more, visit:■ The Center for Sustainable Systems in the U-M School of

Natural Resources and Environment—http://css.snre.umich.edu/


MichiganBusiness

SchoolRecognized

As GlobalLeader for

Environmentaland Social

ImpactManagement

The Business School is one of the top six international business schools forexcellence in preparing MBAs to manage the complex social and environmentalchallenges of the global marketplace, according to the report Beyond GreyPinstripes 2003: Preparing MBAs for Social and Environmental Stewardship.

“Cutting-edge programs like these are producing leaders who can change tomorrow’sbusiness landscape,” said Jonathan Lash, president of World Resources Institute (WRI), anenvironmental think tank. WRI and Aspen Institute’s Business and Society Program, whichhelps business executives integrate financial success and social and environmentalprogress, released the report in October. Michigan, with its emphasis on preparing businessleaders to manage in the global marketplace by focusing on the relationship of financial,social and environmental factors, has consistently earned high marks in Beyond GreyPinstripes’ prestigious rankings.

The Business School was cited for■ Internships in large corporations, government agencies and nonprofit organizations that

focus on environmental and social responsibility. ■ Events such as conferences addressing Corporate Governance and Sustainable Peace

and Mobility in a Sustainable World: A Complex Systems Approach.■ Elective courses such as Strategies for Environmental Management, Systems Thinking

for Sustainable Development and Enterprise, and Human Rights and Business. In all, the Michigan Business School offers more than a dozen electives that addressenvironmental/sustainable business topics, as well as the Corporate and EnvironmentalManagement Program, a joint degree program with the School of Natural Resources and Environment.Beyond Grey Pinstripes Faculty Pioneer Awards were presented to Business School

faculty members Thomas N. Gladwin and Timothy L. Fort. Gladwin, the Max McGrawProfessor of Sustainable Enterprise and professor of corporate strategy and internationalbusiness, received the Lifetime Achievement Award for challenging convention and showing“how patterns of human behavior, including globalization, can degrade the integrity andresilience of natural systems.”

Fort, associate professor of business ethics and William Davidson Institute co-director for the Corporate Governance and Social Responsibility area, received the AcademicLeadership Award in recognition of his “significant impact on the field of business ethicsthrough his award-winning research, teaching and commitment to curriculum development,”including his popular elective course Business Ethics, Science and Technology.

For more about the awards program, see www.beyondgreypinstripes.org.

■ The Center for Sustainable Transportation formed to helpovercome the barriers to sustainable transportation inCanada—http://www.cstctd.org/

■ Environmental Defense, a nonprofit, environmental advo-cacy organization—http://www.environmentaldefense.org/Also, a special report at http://www.bus.umich.edu/News

Room/SpecialReports/Sustainable.htm includes links to twodozen conference presentations at www.cscs.umich.edu and ad-ditional links to Web sites devoted to sustainable mobility.

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Aradhna Krishna, the Isadore and Leon Winkelman Professor of

Retail Marketing, and JoelSlemrod, the Paul W. McCrackenCollegiate Professor of Business

Economics and Public Policy

As Americans grapplewith one of life’s more unpleasant

certainties—taxes—most incumbentpoliticians want to deflect blame

by having taxpayersbelieve the burden

of paying Uncle Sam is small. In fact,

taxpayers need look no further than their

Form 1040 to seemarketing tools atwork, according to

University of MichiganBusiness School

tax policy andmarketing experts.

In their study, “Behavioral PublicFinance: Tax Design As PricePresentation,” Aradhna Krishna,the Isadore and Leon Winkel-

man Professor of Retail Marketing, andJoel Slemrod, the Paul W. McCrackenCollegiate Professor of Business Eco-nomics and Public Policy, present evi-dence showing that, consciously or not,designers of the U.S. tax system haveapplied what marketing researcherscall the theory of price presentation—presenting prices for products in a waythat reduces the perceived cost—to theprocess of paying taxes.

Slemrod, who directs the BusinessSchool’s Office of Tax Policy Researchand is a member of the CongressionalBudget Office Panel of Economic Ad-visers, says much of price presenta-tion theory is based on the notion thatthe framing of a situation affects howpeople respond. Tax system designers,through price presentation, can:■ Minimize taxpayers’ perception of

their share of the tax burden.■ Persuade taxpayers that the more afflu-

ent are carrying a bigger relative shareof the tax burden than they really are.

■ Encourage particular activities, suchas saving and labor supply.Krishna and Slemrod provide several

examples of aspects of the U.S. income

tax system, as well as state and localsales tax systems, which appear to re-flect and perhaps take advantage ofconsumer behavioral patterns.

Discounts Versus Penalties

From Kmart blue light specials to$1-off coupons, the idea that any givenprice should be framed as a discount tomake the consumer believe he or she isgetting a bargain is pervasive in mar-keting. Retailers practice “comparativepricing,” comparing a current sellingprice to a previously advertised higherprice. “It is also widespread in suchareas as insurance, where policies fea-ture non-smoker or safe-driver dis-counts rather than smoker or bad-driver surcharges,” says Krishna, whosecurrent research emphases include con-sumer and trade promotions and be-havioral pricing issues.

Americans go through a similar ex-ercise when they prepare their tax re-turns, calculating the baseline gross in-come and subtracting exemptions anddeductions—allowances for dependentchildren, medical expenses and charita-ble contributions, to name a few—tofigure their tax bill. Creative tax de-signers could build a nearly equivalentincome tax system that features a lower

U.S. Tax System: A Study in Marketing


Itemizing, Framing and Other Techniques

U.S. Tax System: A Study in Marketing


baseline tax liability plus tax surchargesfor those who are uncharitable, whohave few medical expenses or who havefew or no children, Slemrod asserts.But this alternative tax system wouldnot have the attraction of discountsfrom “regular” tax liability.

Also, allowing the 70 percent of tax-payers who itemize deductions to sepa-rately deduct such large items as stateand local taxes, charitable contributionsand mortgage interest payments maxi-mizes the visibility of the deductionsand makes the total of the large deduc-tions appear bigger, he explains. Increas-ing the standard deduction to make it amore attractive option than itemizingwould save costs, in recordkeeping for

filers and in monitoring expenses forthe IRS.

A Matter of TimingKrishna notes that stating a continu-

ing cost as a cost per day rather than permonth or per year is another marketingstrategy used to sell periodicals and carleases and to promote charitable dona-tions. Research shows that people per-ceive the cost to be lower when it isstated in the smallest time period, suchas pennies per day, versus the same out-lay as an aggregate payment. As part ofhis 2000 presidential campaign, Al Goretried to frame the debate by scoffing atGeorge W. Bush’s plan for a $1.6 trilliontax cut over a 10-year period, arguing

that the average family would getenough money to buy one extra DietCoke a day—about 62 cents.

Whether consumers perceive a higherburden when paying taxes through pay-roll withholding or making a lump-sumpayment of taxes at year-end is unclear,Slemrod says. Research provides evi-dence for both. Some behavioral deci-sion theorists believe consumers wouldprefer to aggregate losses into one lump-sum payment. Indeed, some conserva-tives oppose withholding of incometaxes on the grounds that it softens andcamouflages the true tax burden.

Most tax administrators view with-holding and random audits as the back-bone of our tax collection and en-forcement system. “For this reason,abandoning withholding would almostcertainly increase the actual cost of rais-ing funds,” says Slemrod, who was seniorstaff economist at the President’s Councilof Economic Advisers in 1984–85, andhas been a consultant to the U.S. Depart-ment of the Treasury, the Canadian De-partment of Finance, the South AfricanMinistry of Finance, the World Bank,the Organisation for Economic Co-operation and Development (OECD)and several corporations.

Everyone Loves a SaleSales promotions are so widely prac-

ticed that many consumers learn topurchase only when there is a price cut.“Although there are analogies in the taxsystem to sales, it is a less-used tech-nique in that arena,” Slemrod says.“Occasional, limited tax amnesties havethe flavor of a sale, if not on the regu-lar tax price, then on the penalty that

Conference to Focus onBehavioral Public Finance

Experts in economics, law and psychology will participate in an academicconference titled “Behavioral Public Finance: Toward a New Agenda” April 23–24 at the Business School.

The conference is being organized by Joel Slemrod, the Paul W.McCracken Collegiate Professor of Business Economics and Public Policyand director of the school’s Office of Tax Policy Research, and Edward J.McCaffery, professor of law at the University of Southern California.Behavioral public finance, a relatively new academic field, focuses on the application of behavioral economics to government expenditure and tax programs.

Slemrod says, “Bringing together these people, with varying institutionalbackgrounds in tax and expenditure analysis, to discuss research projectspromises to significantly advance this field and begin to clarify an agenda forthe future.” The Russell Sage Foundation and The Lynde and Harry BradleyFoundation are conference sponsors.

One reason tax sales are less pervasive than sales on goods and

services is because the legislative process is less nimble when it comes

to frequently changing tax policies.


ordinarily would accompany initiallyunreported tax liability.” Recently somestates have introduced sales tax holidaysduring the back-to-school season.

One reason tax sales are less perva-sive than sales on goods and services,Slemrod says, is because the legislativeprocess is less nimble when it comes tofrequently changing tax policies. “Italso may be that the political cost ofraising taxes is higher than the politicalbenefit of reducing taxes,” he says. Thisconcern arose in the 2001 debate abouta tax cut to stimulate the economy. Re-ducing withholding taxes by employerswould have been one way to deliver aretroactive tax cut. Instead, taxpayersreceived rebates, which didn’t requirean offsetting upward adjustment forwithholding taxes in the future, andsubjected politicians to the charge theyhad raised taxes, Slemrod notes.

Timing RewardsSometimes, the overriding objective

of price presentation in the tax system isto induce certain behaviors, such as withthe earned income tax credit (EITC),designed to encourage low-income peo-ple to work, or with savings incentivesdelivered through the tax system. Be-cause it is generally perceived as a betterdeal to segregate gains, some wouldargue the EITC should be paid out inreal time rather than in a lump sum atthe end of the year. However, if the taxcredit per paycheck is small, the tax-payer may not consider it salient enoughto influence their working behavior.

A similar issue arises regarding thetax system and savings incentives. Theoriginal front-loaded IRA, in whichthe deposit to an IRA is tax-deductibleand the withdrawal is taxable, was pop-ular because savers received an imme-diate reward. In contrast, the new RothIRA, where the deposit is not tax-deductible and the income and with-drawal are not taxable, does not offeran upfront incentive. Lump-sum re-funds also may be better from a savingsperspective, Slemrod says, since there isevidence that people save more out oflump-sum payments.

Numbers Ending in NineMarketing research affirms that cus-

tomers perceive prices ending in 9s assubstantially lower than almost identi-cal prices with 0 endings.

“At first glance, the U.S. income taxsystem also appears to favor 9 endings,”Slemrod reports. The Medicare payrolltax rate is 2.9 percent. The top incometax rate, from 1993 until the 2001 taxcut, was 39.6 percent, close but notquite equal to 40 percent. But this pat-tern does not hold up to further investi-gation. As of this year, the U.S. top rateis 35 percent. Historically 0 endings areat least as common as 9 endings.

From 1964 to 1981, the top tax ratewas 70 percent; from 1981 to 1986, itwas 50 percent. In 1998, among the 27OECD member countries other thanthe United States, many more had lowendings (0, 1 and 2) than high endings(8 and 9).

“The bunching at low endings sug-gests,” Slemrod reports, “these tax sys-tems are designed to maximize the bur-den of the richest taxpayers perceivedby the typical voter, and thereby mini-mize the perceived relative burden ofthe typical voter.”

Policy ImplicationsWhy does it matter if the design of

the tax system fools taxpayers into un-derestimating the tax burden? Slemrodnotes that in many situations, the costof collection is higher and the equity ofthe tax burden distribution is lower fora tax design that makes the burden ap-pear lower.

“For example, achieving progressiv-ity by means of phasing out deductionsrather than explicitly graduating therate structure increases the complexityof the calculation of tax, and also mayincrease the error rate,” he says.

Also, if voters are induced by pricepresentation to underestimate the truecosts of government, they are morelikely to vote for larger governmentthan otherwise, Slemrod adds.

He concludes: “Policymakers whostrive to manipulate the tax system toreduce the perceived burden implicitlyaccept that there are anomalies in con-sumer and voter behavior that can beexploited by retailers and by politicians.”

Visit the Office of Tax Policy ResearchWeb site at http://www.otpr.org/ or con-tact Krishna at [email protected] Slemrod at [email protected].

Sometimes, the overriding objective of price presentation in the

tax system is to induce certain behaviors, such as with the earned

income tax credit (EITC), designed to encourage low-income people

to work, or with savings incentives delivered through the tax system.

“You cross the Rubicon when you accept venturecapital,” cautions Joel Martin, MBA ’93, part-ner of Forward Ventures, a $440 million fundfocused on the life sciences. “You’re married to

the venture capitalist. We never go away.”Martin was one of four panelists who talked about how to

work successfully with venture capitalists at Entrepalooza2003, held at the Business School in September. Joining Martinin the discussion titled “Venture Capital and Private Equity Fi-nance,” moderated by William Lewallen, MBA ’04, were:■ Guilherme Larangeira, MBA ’01, associate with Telecom-

munications Development Fund, a $50 million fund focus-ing on early-stage telecommunications firms

■ Bill Orabone, president of Syneptics, which makes early-stage investments in small but growing companies

■ David Shelby, BBA ’62, MBA ’64, president of NorthportPrivate Equity Investment Companies, who worked 25years in financial and operating positions at Ford MotorCompany and International Harvester before foundingICM industries in 1985

The following are excerpts from their discussion.

Preparing to raise capital Martin: Keep in mind venture capital is very expensive money.Get your ducks in a row so people believe in you. The goal isto have a good business plan.

Orabone: The key is to listen to those who know the potentialproblems and understand the weaknesses before you start toraise money.


Mining MoneyHow to

Attract, Acquire Venture Capital

(Left to right) Moderator William Lewallen, MBA ’04,and panelists Joel Martin, MBA ’93, Guilherme

Larangeira, MBA ’01, Bill Orabone, and David Shelby,BBA ’62, MBA ’64, discuss how to work effectively

with venture capitalists.

Lori Hollander enjoys a panoramic view of Ann Arborfrom the ninth floor balcony of William DavidsonHall, which houses the Samuel Zell & Robert H. LurieInstitute for Entrepreneurial Studies. Hollander’sinternship was sponsored by the institute.

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Identifying sources of capitalLarangeira: The type of business you plan to build will deter-mine what kind of capital to go after. If it is a company withhard assets, you are more likely to pursue bank loans. Gov-ernment grant money earmarked for R & D is another poten-tial source. That way you can develop your product withoutgiving away equity. Venture funding is more suited to com-panies that project exponential growth and are based on softassets, intellectual property, for example.

Martin: The sources are limitless, everything from creditcards, family and friends to angels, customers and suppliers.Venture capital is the most expensive and comes with themost strings attached.

Shelby: The natural progression is to start with family andfriends and then go to angels or higher net worth individuals.Venture capital is the last stage. Giving away rights earlymakes it more difficult to work later with more sophisticatedinvestors who have larger amounts of money. Key suppliersand customers can be sources of capital. Also, every commu-nity has angel groups, retired executives who have money toinvest and want to have something interesting to think about.

Finding the right investorLarangeira: Conferences like this are a good opportunity tomeet venture capitalists. Check out their Web sites. Who do


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Selling EntrepreneurshipLori Hollander, MBA ’04, a Domestic Corps intern at

the National Foundation for Teaching Entrepreneurship(NFTE), worked with the Houston Independent SchoolDistrict to create a model to cultivate relationships with newschool districts to sell educational programs as part of afive-year strategy to increase earned income. NFTE,founded by Steve J. Mariotti, BBA ’75, MBA ’77,promotes and teaches entrepreneurial literacy and basicbusiness skills to young people.

“Lori gained expertise in not-for-profit management andreplication and learned it is much trickier than it looks,”Mariotti says. “We’d love to have her back.”

Hollander, who managed the University of Pennsylvania’s $6 million National Institutes of Health-funded ReproductiveHormone Study before pursuing an MBA, also refinedNFTE’s evaluation instruments. After graduation, she plansto start or serve as executive director of a nonprofitfocusing on women’s health.

University of Michigan alumnus and playwright Arthur Miller did a great disservice toAmerica when he painted Death of a Saleman’s Willy Loman and salespeople in

general as living lousy lives, asserts one of the nation’s most powerful entrepreneurs.“No one is successful who doesn’t sell his or her ideas,” Samuel Zell, AB ’63, JD ’66,

told the more than 400 students, entrepreneurs and venture capitalists who attendedEntrepalooza 2003, held at the Business School in September.

Zell, a driving force behind the Samuel Zell & Robert H. Lurie Institute for EntrepreneurialStudies at the Business School, acknowledged that few people have all the characteristicsthat make a true entrepreneur. “A vast number have some of the characteristics. Thechallenge is to identify those skills and nurture them in all of us,” Zell added.

Entrepreneurs have a high tolerance for risk and are often lonely when pursuing solitarypaths. Zell recalled in 1987 when he decided to invest heavily in commercial real estate: “I raised $400 million in the pension market and was buying assets at 40 percent to 50 percent of replacement cost. As I was negotiating with bankers and insurancecompanies, I quickly realized there were no other bidders.”

Entrepreneurs respond to opportunities with a sense of urgency. Zell talked about a$50 million investment he made in 1995 in a small Cincinnati-based radio company, whichwas close to bankruptcy. When Congress passed the Telecommunications DeregulationAct in February 1996, the cap on the number of stations a company could own waseliminated. “We went from 17 stations in February 1996 to 234 in 1998 and became thesecond-largest radio firm in the country. We sold the company for $6.4 billion.”

With the outsourcing of manufacturing and other sectors overseas, Zell said, “We haveseen that the United States has no patent on intelligence, ambition or energy. We do havea patent on a society that allows for and creates an entrepreneurial spirit.”

Entrepalooza was sponsored by the Entrepreneur and Venture Capital Club and theSamuel Zell & Robert H. Lurie Institute for Entrepreneurial Studies, directed by Thomas C.Kinnear, the Eugene Applebaum Professor of Entrepreneurial Studies.

To hear presentations by Zell and Rick Snyder, MBA ’79, visitwww.zli.bus.umich.edu/events_programs/featured_event.asp.

they have in their portfolio? What are the partners’ back-grounds? Look at the size of the fund. Work with lawyersand accounting firms that can introduce you to venture capi-talists. You must find a lead investor who is local.

Finding a lawyerMartin: A good lawyer serves multiple purposes: networking,structuring the company, offering insights about people for yourboard of directors. I never pay a lawyer until I get the financing.The lawyer has to believe in you. You want someone who is notlooking to rack up billable hours today but who wants a long-term financial relationship with a successful company.

Overcoming hurdlesShelby: When possible, work on two sources of capital. If youhave only one, he or she will leave you in a heartbeat if some-thing better comes along.

Martin: Most presentations are horrible. When someone givesme a list of Nobel laureates involved in the company, I think,

“My God, this is a science project.” Too many people don’t tellme what they’re going to sell, who the customer is or howwe’re going to make money. I’m not going to understand thetechnology at the first sitting. Give me the executive summary,including limitations and problems. This builds credibility.

Applying due diligenceMartin: Venture capitalists are responsible to a higher author-ity, the pension fund of the university or a board of limitedpartners. We have a fiduciary responsibility. We want to seeexperts involved. The lone wolf is not good. Due diligencecan be more invasive than airport security, taking six monthsto a year. We want to know everything. The worst thing is tohide something. We’ll look into the background of each per-son, including reference checks.

Orabone: While doing due diligence, people are gauging to seeif you do what you say you’ll do. They want to see progress.You’re being evaluated on the nuts and bolts.


Sam Zell: Selling Ideas

Key to Success

Sam Zell chats with students andwell-wishers following his talk.

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In the not-too-distant future, you will be able to have lab tests done while you are with yourdoctor, perform daily tests on your water at home and carry around a super compact cell

phone, predicts Rick Snyder, MBA ’79, and winner of the Business School’s 2003 AlumniEntrepreneur of the Year Award.

The cell phone that Snyder, founder and CEO of Ardesta LLC, envisions will be socompact it can fit in an eyeglass frame. In his speech at Entrepalooza 2003, Snydershared his vision of the increasingly important small-tech world, including business’ role in bringing promising micro- and nano- inventions to market.

Already we’re seeing the effect of developments in the field, from microsystems used inink jet printers to accelerometers that control air bags. Film, Snyder said, is a classicexample of nanotechnology: It is comprised of 10 to 12 layers of material thatcommunicate with one another.

Before founding Avalon Investments Inc., a venture capital company that targetedinvestments in technology-oriented ventures, in 1997, Snyder was president and chiefoperating officer of Gateway Inc. In 2000, he attended a conference devoted to thecommercialization of microelectromechanical systems. Of the 200 attendees, only fivewere businesspeople, he recalled.

“I realized the future was not going to happen as fast as it could because businesspeople were not engaged,” said Snyder, who went on to raise $100 million to jumpstartthe industry. The field of small tech fit Snyder’s personal three criteria for getting involvedin a business: Can we make money, can we help people and can we have fun?

Ardesta brings small-tech products to the global marketplace. It invests in start-ups and early-stage companies and provides business and technical resources to supportthese companies.

He showed examples of what the technology firms affiliated with Ardesta are developing:■ A genetic testing device the size of a Post-it Note, developed by Ann Arbor-based

HandyLab, that doctors can use for rapid diagnosis of disease, including streptococcusin newborns.

■ A wand with a sensor to test for chemicals in water. The device being developed bySensicore, Ardesta’s first start-up company, has applications in home, industrial andcommercial water treatment. The microsystems used in the lab on a chip and the wand for testing chemicals in water

were developed and licensed by the University of Michigan. HandyLab also is part of theBusiness School’s student-led Wolverine Venture Fund (WVF) portfolio. The multi-million-dollar venture capital fund invests with the active involvement of MBA students, facultyassistance and an advisory board. The WVF is the largest, most active university-basedventure fund of its type in the country.

The United States, running head to head with Japan and China in basic research in thisarea, has the edge when it comes to transforming technological breakthroughs into realproducts, said Snyder, who believes the U.S. government is not spending enough onmaking products and packaging.

Targeting the rate of returnLarangeira: When it is early-stage financing, where there isthe maximum risk, we’re looking for the largest returns, 50percent to 60 percent for technology deals. For later-stageasset-based companies in more mature industries some ven-ture capitalists may look for lower returns.

Structuring your companyShelby: Start by issuing common stock to investors. It’s a cleanand simple approach.

Orabone: I prefer to see diversity in a company. I don’t want to see all family members or eight University of Michigangraduates.

Exiting Martin: We want to exit. We don’t want you to exit. Mostventure capital funds are for 10 years. Toward the end of theactive period of the fund—not much longer than five years—we’re looking for liquidity.


Business PlaysBig Role in

Small Tech,Snyder Says

Rick Snyder shares his criteria forgetting involved in a business:Can we make money, can we helppeople and can we have fun?

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Take the last three digits ofyour phone number. Add 400to it. Look at your total(which will be between 400

and 1399) and answer this question: WasAttila the Hun defeated before or afterthe year represented by your result?

A curious exercise, perhaps, to comeduring a presentation on negotiatingtips and tools. George J. Siedel, theWilliamson Professor of Business Ad-ministration, who teaches negotiationand dispute resolution to MBAs and ina popular executive education pro-gram, then took a sampling of answers,pairing phone-plus-400 results withguesses on the year of Attila’s defeat.Generally, as the first number in-creased, so did the second. In otherwords, the higher one’s phone-plus-400total, the more likely that person wouldguess a later year for the defeat of At-tila the Hun. The correct year is 451,but the majority of guesses were off byhundreds of years.

The exercise demonstrated the nego-tiation principle called “anchoring”:The first number thrown out—evenone that’s totally irrelevant—influencesdecisions. You’ve heard that in bargain-ing, always let the other person go first?Anchoring tell us that, in some cases,going first can set the tone in your favor.

Siedel’s presentation was among morethan a dozen workshops offered at theBusiness School’s annual Alumni Con-ference October 17.

Siedel offered several negotiationstrategies. The fundamental tension, hesaid, is how to regard the money atstake. “Do we divide the bag of moneyor enlarge the bag of money?” Enlarg-ing the bag means working toward awin/win outcome that benefits bothparties. But even when the bag is en-larged, there are difficult negotiationsover how the money will be divided.

Anchoring works if you have a senseof the “zone of potential agreement,”the overlapping price range between themost the buyer is willing to pay and theleast the seller is willing to accept. Butwhen bargaining, if you have no clearidea of your opponents’ limits, it may bewisest to let the other side go first.

Most people, Siedel added, fail to rec-ognize when their knowledge is limitedand are overconfident. Decision makersmust acknowledge this trait. “Fifty per-cent of negotiators never ask a ques-tion during negotiation,” he said. “Theythink their role is to present their case,but they’re missing a great opportunity.Information is power.”

Another powerful tool is understand-ing how decisions are affected by the

phrasing of a choice and whether it’sviewed as positive or negative. Suppose,Siedel said, that you had to exit theroom by one of two doors, each staffedwith someone handing out envelopes.At one door, each envelope contained$200. At another, three-fourths of theenvelopes were empty, but one-fourthcontained $900. Which door would youchoose? Most would choose the $200door, the sure thing, and would not riskwalking away empty-handed. Whenthe scenario is framed negatively, how-ever—everyone leaving by one doormust pay $200; three-quarters of thoseleaving through the other door will paynothing, but one-quarter will pay$900—people are more willing to takea big risk to avoid a certain penalty.

Negotiating Tools and Traps:

Phrasing Can Be aPowerful Tool


REUNION 2003

George J. Siedel teaching atReunion 2003

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This illustrates a flaw in reasoning:When faced with a positive choice,most of us pick a sure thing; when pre-sented with a negative choice, we tendto take a risk.

Likewise, Siedel asked the audiencewhat they would do if they were boardmembers of a company facing the clo-sure of three plants and loss of 6,000jobs. Plan A would save one plant andkeep 2,000 jobs; Plan B has a one-thirdchance of no jobs lost but a two-thirdschance of all 6,000 jobs lost. Ninetypercent chose Plan A. Then Siedelphrased the question this way: Plan Awould close two of the three plants andeliminate 4,000 jobs. Plan B had a two-thirds chance of all 6,000 jobs lost, but aone-third chance of no jobs lost. Ninetypercent chose Plan B. The two Plan Asand Plan Bs were identical, but the dif-ference in phrasing produced oppositeresults in how they were perceived.“This is an amazingly powerful tool,”Siedel said.

Even an expert like Siedel, however,is susceptible to negotiation traps. Hisdownfall, he said, came at the hands ofan eight-year-old girl. He was walkingthrough a park in Mumbai, India. Thegirl asked him to buy a peacock fan for$4. Siedel declined. The girl fell intostep beside him. As they walked, shetold him about the park and the treesthey were passing, information Siedeldidn’t know and found interesting.Telling the story, he marveled at thegirl’s skillful use of the reciprocity rule,which says that when someone doessomething for us, we naturally want toprovide something in return. It’s a po-tent weapon of influence even thoughthe girl probably wouldn’t have caredwhat business schools call it. All thatmattered was that at the end of thewalk, the girl had $4 in her hand, andSiedel clutched a peacock fan in his.

Mary Jean Babic

(Clockwise from top) Alumni, relativesand friends gathered under the BusinessSchool Portico for the traditional pre-game tailgate, a reunion highlight.Among those attending Reunion 2003were Marion Gottlieb, MBA ’98, herdaughter Sydney and husband ChrisGottlieb, and Professor Emeritus Lee E. Danielson, PhD ’56, AM ’49,and his wife Millie.

REUNION 2003

Photos by Martin Vloet

The Business School’s Execu-tive Education program hastraded its “one size fits all”strategy for a tailored portfo-

lio of programs that capitalize on fac-ulty expertise and pinpoint specificbusiness needs.

Associate Dean for Executive Edu-cation Raymond R. Reilly unveiled thestrategy at the 2003 Annual BusinessConference held October 17. As part ofthe redesigned Executive Education,faculty will join “Centers of Excel-lence” to study and present subjectsthat are critical to the future success ofbusiness firms. Proposed centers in-clude leadership, human resource man-agement, lean enterprise, healthcare,automotive, innovation, India andChina, among others. Services will in-clude public and custom programs, ex-ecutive forums, speakers for corporatemeetings and executive consultation.

Executive Education’s Centers of Ex-cellence focus on topical areas that mir-

ror the multidisciplinary nature of theissues facing businesses today. Al-though each of the centers focuses onan area of specialization, the structurelends itself to collaboration on complexproblems. The customer’s issue dictatesthe particular combination of facultyexperts involved. As expertise is ap-plied, the issue evolves and becomesmore clearly defined, and innovativesolutions emerge.

The new Executive Education ispoised to respond to rapid changes inthe business climate. Reilly offered sev-eral examples:■ For a hospital that needs to improve

operating room efficiency, ExecutiveEducation could create a custom pro-gram drawing upon faculty in Cen-ters of Excellence focusing on health-care, lean enterprise and India, wherespecialized medical facilities provideeconomy of scale.

■ A program on developing the next-generation management team couldbe developed with faculty exper-tise from such Centers of Excellenceas general management, leader-ship, human resources and the worldeconomy.

■ A program on how to negotiate thenext union contract could draw fromCenters of Excellence in innovation,human resources, labor relations, au-tomotive manufacturing and China,which has a large number of auto-mobile manufacturers.“The Center of Excellence approach

is about helping companies fully lever-age our faculty’s expertise,” Reilly said.“To that end, we promise high-impactexpertise to meet existing and emerg-ing needs, a wide variety of productsand top-quality service to all who workwith us.”

To learn more about Executive Educa-tion, visit http://execed.bus.umich.edu/.

How Executive EducationCan Help You

and Your Company


Raymond R. Reilly

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Save the Date:October 8–10 for Reunion 2004

Three hundred and ninety-three individuals attended the Annual BusinessConference held in conjunction with the Business School’s 2003 Reunion. In all,1,323 attended the reunion, including 31 people representing 17 countries,reports Alumni Relations.

Reunion 2004 will be held October 8–10. Michigan will play the University of Minnesota. To see photographs from Reunion 2003 or to learn more aboutthis year’s events, visit www.bus.umich.edu/reunion2004.

REUNION 2003

BOSTONThirty alumni and 80 prospective stu-

dents attended “An Evening with AndrewLawlor,” sponsored by the Alumni Club ofBoston in October. Lawlor, director ofGlobal MBA projects at the Business School,shared experiences working with students in the areas of entrepreneurship, interna-tional projects and action-based learning.Lisa Hurst, associate director of admissionsand career development, talked aboutMichigan’s MBA program. For more infor-mation about the Boston club, contact Low-ell Kim at [email protected].

FRANKFURTFifteen alumni attended the Club of

Germany’s regional meeting in October, re-ports President Andreas Kirschkamp, EX’98, who is part of the Department of Man-agement Accounting & Control at the Eu-ropean Business School. For more infor-mation about the Germany Club, contactKirschkamp at [email protected].

PERUThe Alumni Club in Peru hosted an

informal gathering to welcome James P.Hayes, senior associate director of admis-sions, to the World MBA Fair Tour 2003and a reception for prospective MBA stu-dents in Lima in September.

In May, alumni, students and significantothers, and prospective students gatheredin Lima to discuss the organization of aformal Business School alumni club.

Pictured (left to right) are GianniCarozzi, MBA ’03, Camila De Belaunde,MBA ’03, Carola Van Oordt, SOS, JorgeGonzales and his friend, Luciano Bedoya,MBA ’03, Ramkey Ananthakrishnan,MBA ’01, Carlos Caballero, MBA ’97, Bar-bara Quinones, MBA ’97, Fernando Fort,MBA ’96, Manuel Van Oordt, MBA ’02,and Martin Mongrut Durand, MBA ’04.For more information about the Peru Club,contact Fernando Fort at [email protected].


A L U M N I A C T I V I T I E S

EUROPEAN ALUMNI European alumni from the MBA class of 1999 met in the Munich area in August for

their annual weekend reunion. Alex Albani, MBA ’99, and his spouse Antonia led a sight-seeing tour. Next year, Edvard Cock, MBA ’99, will host the group in Oslo. The annual re-union is a custom that Alain Held, MBA ’99, reports “we all hope to keep up for a longtime.” For more information, contact Held at [email protected].

Pictured (standing left to right) are Jacob Michlewicz, MBA ’99, and his wife Leontine,Edvard Cock, MBA ’99, Alexander Albani, MBA ’99, and his wife Antonia, JavierNavarro, MBA ’99, Elaine and Alain Held, MBA ’99; (sitting left to right) are LineArntzen, wife of Edvard, and Victoria Ruiz, wife of Javier.

TORONTOIn October, the Michigan Business School Club of Toronto held its inaugural event,

which featured a presentation by Thomas C. Kinnear, the Eugene Applebaum Professor ofEntrepreneurial Studies and director of the Samuel Zell and Robert H. Lurie Institute forEntrepreneurial Studies. Kinnear, who was born and raised in Canada, briefed alumni onthe school’s strategy and positioning for the future. The club’s goal is to connect with themore than 75 alumni who live in the Toronto area and increase applications to the BusinessSchool from the region.

Pictured (standing, left toright) are Chris Beveridge,MBA ’01, Leah Duckman,BBA ’96, Mitch Green,MBA ’01, and Benjy Mogil,MBA ’02; and (sitting, left to right) Marya Tabbara,MBA ’02, Pankaj Agarwal,MBA ’96, and Galit Janco,MBA ’98. For more infor-mation about the TorontoClub, contact Mitch Greenat [email protected].

For more information about Business School alumni club activities around the world, visit the Alumni Relations Web site at www.bus.umich.edu/AlumniCommunity and select “Events.”

SAN FRANCISCO BAYMembers of the San Francisco Bay Area

Club (SFBAC) maintain an active schedulethat includes hosting events for prospectivestudents, a Cable-car Bar Hop, opportuni-ties to volunteer at Hands on San Franciscoand supper clubs that feature distinguishedalumni. President Shelley Scipione, MBA’01, says the SFBAC is looking for peoplewho are passionate about their Michiganexperience to help organize events and par-ticipate as board members. If you haveideas for club activities or are interested inleadership, contact Scipione at [email protected].

SOUTH FLORIDAThe Michigan Business School Club of

South Florida sponsored a breakfast withformer U.S. Ambassador to Bolivia ManuelRocha in Miami in August. Guests in-cluded members of the Florida Interna-tional Banking Association and businessand civic leaders. Rocha, senior counselorfor international trade and government af-fairs at Miami-based law firm Steel Hector& Davis LLP, talked about U.S. and LatinAmerican relations following the Iraq War.To learn more about the Club of SouthFlorida, contact Darío Epstein, MBA ’91,[email protected].

SWITZERLAND The Alumni Club of Switzerland repre-

sented the Business School at the WorldMBA Fair Tour 2003 in Zurich in October.The Michigan Business School booth, whichattracted many prospective students, wasstaffed by Steffen Oellers, MBA ’01, AlainHeld, MBA ’99, Mike Kelly, MBA ’99,Anton Hoefter, MBA ’95, Franz Grandis,MBA ’91, Martin Brändli, EX ’97, and Jür-gen Ziehfreund, EX ’91. For more informa-tion about the Switzerland Club, contactBeat Geissler at [email protected].

WISCONSINThe Alumni Club of Southeast Wiscon-

sin held its first meeting at the MilwaukeeAle House in June. Fifteen MBA and BBAalumni and their guests enjoyed the riverwalk and the opportunity to mingle. Formore information about Southeast Wis-consin alumni events, contact Kurt Cum-ming at [email protected].


A L U M N I A C T I V I T I E S

MINNESOTAProfessor Andrew Lawlor talked about the Business School’s positioning strategy and

action-based learning with members of the Michigan Business School Club of Minnesota ata reception in October. Club members also helped with a Business School admissions recep-tion at General Mills world headquarters in November and sponsored several social events,including a boat cruise and dinner on Lake Minnetonka and a fall barbecue at Boom Is-land. The barbecue was organized by Charlie Curry, MBA ’68, and spouse Pen,Jonathan Chizick, MBA ’02, and Jitesh Tank, MBA ’03. For more information about theMinnesota Club, contact Neil Janmohamed at [email protected].

TAIWANFollowing a popular Business School tradition, the MBA ’02 graduates organized this

year’s annual alumni gathering in Taipei. One of the organizers, Jennifer Liang, MBA ’02,extended a personal invitation to every alumnus listed on the school’s database living in thearea. Alumni thanked Thomas Hsu, MBA ’89, whose generous gift will be used to fundclub events. For more information about alumni events in Taiwan, contact Chin-Feng Sunat [email protected].

Pictured (left to right) are Steven Chen, MBA ’81, Casper Huang, MBA ’90, Mark Yang,MBA ’90, and Freddie Liu, MBA ’90.

For more information about Business School alumni club activities around the world, visit the Alumni Relations Web site at www.bus.umich.edu/AlumniCommunity and select “Events.”

1946Jack Caminker, BBA ’46was re-appointed a district director of South-east Michigan Service Corps of Retired Ex-ecutives, the counseling arm of the SmallBusiness Administration. Jack continues tocounsel and present seminars on businessmanagement to owners of small businessesin southeast Michigan through his own con-sulting firm as well.

1948Sidney Zilber, BBA ’48, MBA ’53is chairman emeritus of Carnegie CapitalAsset Management Company in Clevelandafter a long and fruitful career. He and hiswife Ruth have four grown children. “I havehad deep involvement and leadership posi-tions with the Jewish Community Federa-tion of Cleveland, the American JewishCommittee, the United Way of Clevelandand the Ohio United Way,” says Sidney, whoalso has traveled extensively to Europe, Asiaand South America.

1952Jerome Halperin, BBA ’52received the Lifetime Achievement Award in2003 from the Jewish Federation of Metropol-itan Detroit, recognizing an individual whohas devoted a lifetime of service to the Jewishcommunity of Detroit and the Jewish people.

1953Williamson H. (Bill) George, BBA ’53is now a happily retired CPA. After gradua-tion, Bill worked for two CPA firms and theBuick internal audit department, received hisCPA in 1956 and joined Hurley MedicalCenter in Flint, Michigan, as a senior ac-countant. In 1964, he became a Fellow of theAmerican Hospital Association and also wasappointed Hurley’s CFO. He retired fromHurley as associate director in 1983 andopened a full-time CPA accounting and taxpractice. In 1998, he sold the CPA firm andfinally retired. He had seven children, two ofwhom are deceased; six of the seven gradu-ated from the University of Michigan. Healso has seven grandchildren, one of whom iscurrently a U-M student. You can reach himat [email protected].

Fred L. Leydorf, BBA ’53moved to California after graduation wherehe served two years in the U.S. Navy and hiswife Mary attended the UCLA School ofMedicine. He graduated from the UCLASchool of Law in 1958 and practiced law inLos Angeles for 37 years, specializing in tax-ation, trusts and estates. Now retired, theymoved from San Marino and have homes in three lovely California cities. Since gradu-ation, Fred served as a member of the Devel-

opment Advisory Board of the BusinessSchool, chairman of the Conference of Dele-gates of the State Bar of California, vice president-North America of the Interna-tional Academy of Estate and Trust Law andpresident of the Los Angeles County BarFoundation, UCLA Law Alumni Associa-tion, Life Insurance and Trust Council of LosAngeles, and the Chancery Club of Los An-geles. To catch up on old times, you can reachFred at [email protected].

Bruce J. Maguire, BBA ’53is chairman and owner of the Wolverine De-velopment Corp. and the Spartan Oil Corp.He and his wife Mary Jo live in East Lan-sing. Bruce received his JD from HarvardLaw School in 1961, was admitted to theMichigan Bar and was a member of theYoung Presidents Organization and the WorldPresidents Organization. You can reach him [email protected].

1960

Daniel M. Arnold, BBA ’60“On November 22, 2003, the birthday of myspouse of 42 years, Jane Hirsch Arnold(LS&A ’61, Exec Ed ’90), I retired after nineyears at Connecticut General Life InsuranceCompany and 29 years with Hooker & Hol-combe Inc., providing actuarial and employeebenefit services,” says Daniel. He now spendshis time in volunteer work with AARP Tax-Aide (local coordinator and counselor to low-and middle-income families, especially seniorcitizens), Hartford Track Club (membershipdirector), AARL (Internet online mentor forstudents of courses in amateur radio emer-gency communications) and participating invarious ham radio activities of the Bloom-field Amateur Radio Club and BloomfieldAmateur Radio Emergency Net and Service(secretary). “Spouse Jane (retired attorney andsenior vice president, Global Portfolio Strate-gies) and I visit our four married childrenand six grandchildren as often as we can,”boasts Daniel, who adds, “We plan to returnfor Reunion 2004 to celebrate the 40th an-niversary of my Master of Actuarial Sciencedegree.” You can reach this very busy alum [email protected].

1962Walter “Skip” Eichhorn, BBA ’62, MBA ’63is a Realtor with Century 21 in FarmingtonHills, Michigan. He was a financial analystwith General Motors from 1963 to 1991, andjoined Century 21 in 1992. His children arefollowing in the right footsteps. JanniferStromberg (BS ’85, MD ’89) is a doctor atBeaumont Hospital in Royal Oak; AmyPerkins (BSN ’87, MPHSA ’91) is vice presi-dent with RSL; Allison Brink (BS ’89) ismarketing director with LCM. You can reachSkip at [email protected].

1963Rhenus H. Alderman III, MBA ’63is chairman of Investors Capital ManagementInc. in Rowayton, Connecticut. “I have hadmany personal milestones since BusinessSchool, gained by working with GeneralElectric, John Hancock and Citibank,” saysRhenus. “The milestone that has been mostimportant in my life, however, is forming myown investment advisory firm 13 years ago. Istarted with a blank sheet of paper and nowhave clients ranging from former corporateexecutives to new widows. Helping peoplesolve their financial problems is a very re-warding experience for me.” Rhenus also hasbeen active as an arbitrator for the AmericanArbitration Association. He has three chil-dren. Elizabeth is a professor of fine arts withthe State University of New Mexico, RhenusIV is an information director for a New Yorkadvertising agency and Sarah is a nurse andthe mother of his two grandchildren, An-drew and Katherine.

David A. Henwood, BBA ’63, MBA ’64is chief investment officer with RaymondJames & Associates (RJA) in St. Petersburg,Florida. He served as a lieutenant in the U.S.Army from 1964 to 1966, was an investmentanalyst with Comerica Bank in Detroit from1966 to 1972, an equity investment analyst for Prescott Ball & Turben in Cleveland (nowpart of Wachovia Securities) from 1972 to1984, and has been with RJA since 1984.David is chairman of RJA’s Investment PolicyCommittee and Focus Committee, has madenumerous appearances on CNBC and is re-sponsible for the monthly Focus List, the Sec-tor Spotlight and the yearly Analysts BestPicks. He and his wife Helen reside in SafetyHarbor; their son David works for WilliamR. Hough & Co. in St. Petersburg, and sonThomas works in systems development forAT&T in Atlanta.

Gary T. Walther, MBA ’63is managing director of Lincoln Partners inChicago. “I’ve spent my career in investmentbanking since 1969, following a time at ChaseManhattan Bank,” says Gary. He was at Mer-rill Lynch from 1969 to 1980, as well as some


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other major firms, before joining LincolnPartners, an M&A Boutique specializing indivestitures and merger advisory work. Welltraveled, he worked in London, New YorkCity and San Francisco before moving toChicago in 1973. He and his wife Mary livein Winnetka, Illinois.

James R. Waterston, BBA ’63“I learned the ropes at Arthur Andersen’s Chi-cago office for four years, then progressedfrom credit analyst to vice chairman of Com-erica Incorporated and president of ComericaBank in Detroit for over 23 years. I then servedas group executive VP and chief banking offi-cer of KeyCorp in Albany, New York, for twoyears, and operated my own venture capitalfirm for five years,” reports Jim, who sat onseveral civic and professional boards until heretired five years ago. A cancer survivor, he hasbeen married to Donna Hockaday for over 40years and has three grown children. You canreach him at [email protected].

1965Frederick C. Moore, BBA ’65is president of Moore Properties in Park City,Utah. He and Tom McAuliffe, BBA ’63,MBA ’64, claim the fun and sun of Park Citymakes it a four-season paradise. “There arelots of Wolverine grads in this area. Comejoin us!” extols Fred. To learn more, e-mailhim at [email protected].

(Left to right) Tom McAuliffe, BBA ’63, MBA ’65, John Hutchinson, BA ’63, JD ’66,Joanne Duprat and Frederick Moore, BBA ’65, JD ’68, at Snow Basin

1966David D. Joswick, BBA ’66principal at the law firm of Miller, Canfield,Paddock and Stone in Detroit, is ranked oneof Michigan’s top attorneys in ChambersUSA: America’s Leading Business Lawyers2003–2004, designed to present an objectiveguide to the best practitioners in the mainareas of corporate law. David is listed in theBanking & Finance and Corporate M&A sec-tions. David is a member of the business andfinance group and the corporate compliancegroup at his firm. He is an adjunct professorat the Wayne State University Law School

and previously was a law instructor at theUniversity of Michigan Law School.

1967Paul Sheldon Foote, BBA ’67presented several papers at the InternationalBusiness and Economic Research Conferencein Las Vegas, October 6–9, 2003. Topics in-cluded: “Franchising in China: The Case ofMedicine Shoppe,” “XML Search Enginesfor International Business: Chinese and Eng-lish Examples of Better Strategies and Profitsfrom XML Internationalization and Local-ization,” “Global Crossing Bankruptcy Scan-dal: Chinese and American Perspectives” and“Credit Bureaus and Credit Scoring Mod-els: Saudi Arabia’s Strategy for IncreasingCredit without Increasing Credit Card De-faults.” For more information, contact Paul [email protected].

1968

Tom Jones, BBA ’68, MBA ’71has been named director of the BBA Program,a new position that will help bring more focusto the program that houses more than 20 per-cent of entry-seeking students. Tom recentlyretired from CIGNA Corporation, where hewas president of Retirement and InvestmentServices, and has served the school in severaladvisory capacities. He is a member of theAlumni Society Board of Governors.

1973Peter Allen, MBA ’73and the other members of his team that developed Main Street Commons, a new 48-unit condominium project in Ann Arbor,recently presented a $10,000 check to the University of Michigan/Urban Land InstituteReal Estate Forum to help fund its Real Es-tate Initiative. The forum was founded in1986 by Allen, who also teaches real estate atthe University. The Real Estate Initiative co-ordinates courses critical to real estate devel-opment at the University of Michigan, suchas architecture, business, engineering, law,natural resources, public policy and urbanplanning. The initiative also may eventuallyprovide research opportunities and continu-ing education. The team that developed thecondo project is comprised entirely of Michi-

gan graduates, all of them former students inAllen’s real estate class. They include: LisaLeventhal, BBA ’99, sales and marketing; J. Bradley Moore, BS ’81, MA Arch ’83, proj-ect architect; Greg Copp, Eng ’86, MBA ’02,project manager; Joe Vig, BBA ’91, generalcontractor; David Kwan, MBA ’86, projectdeveloper; and Don Taylor, director of devel-opment for the Taubman College of Archi-tecture and Urban Planning.

1974

Bonnie R. Proctor, MBA ’74assumed the role of president of the AlumniAssociation of the University of Michigan onJune 1, 2003. Prior to being named president,she served as treasurer and secretary. She is amember of the President’s Club and hasserved on the Corporate Advisory Board ofthe Business School. In 1998, she received theBusiness School’s Bert Wertman AlumniService award. Proctor started her career inthe Bell System’s management program,then worked as a lecturer and financial con-sultant at the United Nations’ East AfricanCommunity Management Institute in Tan-zania before spending her last 20-plus yearsas an executive with Bank of America. Re-tired, she is active in a number of communityand philanthropic boards. She lives in LosAltos, California, with her husband John anddaughter Sara.

1975

James Bowman, MBA ’75owns and operates his own consulting firm,which designs e-learning programs on qual-ity improvement and client-specified topics.“I worked in training and quality assurance


Tom McAuliffe, BBA ’63, MBA ’65,

Frederick Moore, BBA ’65, JD ’68,

C L A S S N O T E S

for Baxter HealthCare and InternationalPaper until 1993, then I started a consult-ing firm. Bill Hall’s Business Policy coursetaught me skills that have been very help-ful,” says Jim. He and his wife Natalie, sonNicholas and daughter Stephanie live in Ap-pleton, Wisconsin. You can reach him [email protected].

1976James C. Czirr, BBA ’76is co-founder of Pro-Pharmaceuticals, thedeveloper of a special carbohydrate moleculethat is designed to eliminate unwanted sideeffects of chemotherapy and improve the ef-fectiveness of the drug’s cancer-killing abil-ity. You can visit his Web site at www.pro-pharmaceuticals.com.

Ken Nisbet, MBA ’76who is executive director of the University ofMichigan’s Office of Technology Transfer, hasbeen elected chairman of the Ann Arbor ITZone, which is a nonprofit group focused onsupporting various sectors of the local technol-ogy industry. Says Nisbet, a co-founder andboard member of the group, “How we en-hance our capabilities and more effectivelypartner with others is basically what we’re dis-cussing now.” Other Business School alumniwho have key roles include Jim Adox, MBA’95, partner at the Ann Arbor venture capitalfirm EDF Ventures, who just joined the ITZone board, and Chuck Salley, MBA ’96, whocontinues to serve as president.

1978Kathy Brenner, MBA ’78is owner of Melrose Nameplate & Label Com-pany in Hayward, California. “I worked inbrand management and executive manage-ment positions at Frito-Lay, Clorox, Dole andMother’s Cookies,” says Kathy, who left cor-porate life in 1991 to buy a small companywith her husband, Chris Somers, MBA ’78, aretired consultant. “Three years ago, I leftday-to-day management to Chris and nowbalance company involvement with family,home and tennis. I moved from Texas to Cali-fornia in 1981, survived leukemia in 1988, wasmarried in 1989 and adopted two wonderfulboys from Paraguay in 1993 and 1996,” reportsKathy happily. To catch up with her, [email protected].

Deborah (Gerrish) Chapman, BBA ’78is senior account manager at Delphi Corpo-ration. She spent 13 years in procurementand supply at DaimlerChrysler, seven yearsin purchasing management and has success-fully transitioned into sales and programmanagement in the automotive industry.Deborah also boasts that she has perfectedher sewing skills to a professional level, hasraised three wonderful children, is very hap-pily married and received her MBA in fi-

nance from the University of Detroit with aperfect 4.0 gpa. She is very active in volunteeractivities and has traveled to many exotic lo-cations. To learn more about all that, whather children are doing and her passion fordogs, e-mail Deborah at [email protected].

Rick David, BBA ’78is a partner with KPMG LLP in Detroit. Herecently completed 25 years with the firmand was named one of the “90 for the ’90s”business leaders by Crain’s Detroit Business.You can reach Rick at [email protected].

Mary Jane (DeFilippo) Desimpel, BBA ’78is a self-employed financial accountant inSouthington, Connecticut. “I married PaulDeFilippo in 1981 and have two sons, An-thony and Peter. I love my life,” says MaryJane. “After working in both CPA firms andthe corporate environment, I started my ownfinancial accounting firm in 1991, specializ-ing in small-business financial accounting. Ifyou need help, or want to catch up on oldtimes, e-mail [email protected].

Ed Franklin, MBA ’78works in business development for the Aus-tralian Trade Commission in San Francisco, as-sisting Australian information technology com-panies. He recently toured Australia speakingon opportunities in the U.S. marketplace. InAdelaide, he attended the grand opening of theSolution Showcase Exhibition, meeting withDenis Wall (left), executive director of the ITCouncil for South Australia. You can reach Edat [email protected].

Steven R. Galper, MBA ’78is chief resident in psychiatry at the Univer-sity of Arizona College of Medicine in Tuc-son. He received his JD in 1982 and MD in1998, both from the University of Arizona,and has a joint residency in neurology andpsychiatry. He is married to Carol Price. Youcan reach him at [email protected].

Gary Goldner, MBA ’78is principal at Accountable Solutions. He at-tained his CPA and served in various posi-tions in private industry, culminating as di-rector of accounting. Since 1993, Gary hasbeen a self-employed consultant for account-ing software. He and his wife Sharon and

children Deanna and Marissa live in West-field, New Jersey. To solve your accountingproblems, contact Gary at [email protected].

Robert Greenwald, MBA ’78is finance staff manager for Avaya in BaskingRidge, New Jersey. “I have been involved inabout the average number of wonderful hap-penings, momentous events and bizarre coin-cidences as the next person,” says Bob. His firstjob, at Ohio Bell, was to determine how manydogs lived in Franklin County, Ohio, as part ofa marketing campaign for the new Snoopyphone. He then moved into financial analysis.“Over the past 25 years I have worked for fivedifferent companies, have vacationed in Eu-rope twice, performed for two years with atroupe of professional belly dancers, given upskiing, spent a year as a maître d’ at a MiddleEastern restaurant in the Poconos, grown apony tail, sort of taken up skydiving (‘sort of’because his main chute only opened once).”Bob also has been involved with performingarts groups, met some famous folks and oncedanced a hula by an erupting volcano whilecarrying a monkey. E-mail Bob at [email protected] to learn more about his rather un-usual activities and his recent marriage and re-modeling projects.

Brian (Weng) Larson, BBA ’78is senior vice president, secretary and generalcounsel for the Boyd Gaming Corporation inLas Vegas. “I received my CPA, graduatedfrom Arizona State University Law School andbecame a partner in a Phoenix law firm. Mycurrent firm is a NYSE company with morethan 15,000 employees,” says Brian. He also has been a two-time qualifier for the U.S.Marathon Olympic Trials with a personalrecord of 2:17:19. He and his daughter Shannonlive in Las Vegas. If you can catch him, it willbe at [email protected].

Wade S. Lnenicka, MBA ’78is vice president-purchasing for CPG-PepsiBottlers Inc. in Atlanta. Wade was an honorgraduate of the U.S. Army Command &General Staff Course in 1983 and retired as amajor from the U.S. Army Reserve in 1995after 22 years of service. He is a certified pur-chasing manager, served on the leadershipteam for Smyrna, Georgia, coached lacrosseat Georgia Tech from 1978 to 1982 and sincethen has served as a college lacrosse official.He and his wife Robin live in Smyrna, andyou can reach him at [email protected].

Michael Muchortow, BBA ’78is the owner of Muchortow & Associates inMount Clemens, Michigan. Mike received hisCPA in 1980 and worked at Arthur Ander-sen for 24 years, achieving principal level. Hestarted his own financial planning practice in 2003. He married Lily Schreiber in 1981,and they have four children, Melanie, Jason,Adam and Bryan. Melanie is a junior at theUniversity. You can reach him at [email protected].


C L A S S N O T E S

Joanne (Hartman) Parks, BBA ’78“After three years in advertising, I returnedto school and completed the coursework to-ward an MS in physical organic chemistry,then earned my MD at the University ofSouthern California,” says Joanne, who com-pleted her residency in psychiatry followedby a fellowship in trauma. She is board certi-fied. She has worked at Loyola UniversityMedical Center in Chicago, Rush NorthShore Medical Center, has her own consul-tation practice for businesses and also has her own private practice. She married GaryParks, MBA ’78, in 1979, and they have twochildren, Alyssa and David. In her sparetime, Joanne designs, assembles and sellsquilts and teaches quiltmaking, studieskarate, grows vegetables and takes care ofthree retrievers and four cats. They live inWinnetka, Illinois, and Joanne says shewould love to hear from former classmates.You can reach her at [email protected].

John Pohl Jr., BBA ’78is program manager for Bendix in Elyria,Ohio. Since graduation, John received hisMBA; traveled to Jordan, Spain, Thailand,Taiwan and Japan; lived in Denmark for ayear and in Korea for a year; led a defenseproduct company into its first commercialcontract and digitized the marketing of onecompany. John also has taught religious edu-cation at his church for five years, was a BigBrother for four years and now is leading theeffort to build an in-line hockey rink in hiscity. He and his wife Lynn Ann CantwellPohl have three children: Henry, 16, Anne,14, and Oliver, 11. You can reach him [email protected].

Deborah Pool, BBA ’78is director, customer and financial services,Solo Cup Company in Urbana, Illinois. Priorto that, she received her CPA in 1983, was se-lected as one of 10 women to represent Motorola at the annual Catalyst Awards(women of excellence in business) in NewYork City and spent a year in China, HongKong and Singapore directing an implemen-tation of a new business software system.“I’ve also been involved with Christian chil-dren’s ministries for many years, and havebeen on several trips to other countries towork with children,” says Debby. “I spend alot of time with my family and started ahealth ministry in 2002 to help people im-prove their health and nutrition.” You canfind Debby at [email protected].

Doug Weber, MBA ’78is managing principal of Onset CFO, LLC, inAnn Arbor. “After what I imagine were prettytypical stints in consulting and corporate fi-nance, as well as a couple of small dalliancesin the entrepreneurial world, I jumped full-time to the start-up world five years ago,” saysDoug, who manages a small consulting prac-tice that focuses on providing part-time CFO

services to start-up and early-stage, venture-backed companies. His son Scott, 23, just com-pleted his masters in computer science atLehigh University and is starting a career inWashington, DC, and his daughter Laura isgraduating from Michigan State University.To find out more about Doug’s new venture,e-mail [email protected].

1979

Michael J. Grebe, BBA ’79has served as president and CEO of InterlineBrands in Jacksonville, Florida, since Septem-ber 2000. Interline Brands is a national dis-tributor and direct marketer of repair andmaintenance supplies and has revenues ofapproximately $650 million. Mike attendedthe University on a Navy scholarship andserved as a naval officer on the staff ofAdmiral Rickover from 1979 to 1984. Mikeand his wife Eileen live in Ponte VedraBeach, Florida, with their daughter Erin andson Kevin. You can reach him at [email protected].

1980Eric Chen, BBA ’80has been named senior vice president, cor-porate finance, and general counsel forAECOM Technology Corporation in LosAngeles. He will oversee the company’s legaldepartment and help lead the company’s corporate finance initiatives. Eric joinedAECOM in October 1998 after eight years atPrudential Capital Group. He passed theCPA exam in 1980 and graduated from theUniversity of California, Berkeley law schoolin 1983. He lives with his wife KathleenSchwallie and their daughter Caroline, inRolling Hills Estates, California.

Howard H. Prager, MBA ’80was inadvertently listed with the wrong e-mailaddress in the last issue. Howard, who is direc-tor of Lake Forest Corporate Education at theLake Forest Graduate School of Management,can be reached at [email protected].

1981Dean Lindroth, MBA ’81recently was named vice president and direc-tor of finance for Asia Pacific Wireless Cellu-

lar Infrastructure Systems for Motorola Inc.He has been with Motorola for over 22 years,holding various financial positions. For thepast six years, he and his wife and three chil-dren have been based in Asia and are cur-rently living in Hong Kong.

Seth Moldoff, MBA ’81was recently promoted to senior vice presi-dent at Wells Fargo Bank in San Francisco.He resides in Lafayette, California, with wife Donna and their sons David, 15, Phillip,13, and Joshua, 13. You can reach him [email protected].

1983Daniel Bober, MBA ’83is managing director of the commercial mort-gage group of Wells Fargo in Troy, Michigan.He founded Bloomfield Acceptance Com-pany, a nationwide CMBS lender, commercialmortgage banker and servicer with a $1.2 bil-lion portfolio and $500 million in annual or-ganizations, which is now part of Wells Fargo.He also co-founded e-Cognita Technologies, asoftware company servicing the commercialreal estate industry. His other major accom-plishments? “I coached Odyssey of the Mindfor several years and got two kids throughtheir teen years with my sanity intact,” laughsDaniel. Nicole just graduated from Michiganwith her BS in architecture and will continuefor her MS in the same field. Danielle is cur-rently a freshman at Mount Holyoke Collegein Massachusetts. Dan and Pat live quietly in West Bloomfield. You can reach him [email protected].

Yehuda Cohen, MBA ’83is CEO of Great Barrier Systems in Chicago.“After a two-year stint as an operations consul-tant after Business School, I have pursuedtechnology and real estate entrepreneurial endeavors,” says Yehuda, who claims to playtennis “as well as when I was 16, or at least I believe it!” You can learn more at [email protected].

Martin Essenburg, MBA ’83is managing director of Standard CharteredBank in London. “I’ve been involved in assetsecuritization/structured finance for the last15 years. I built up and manage a successfulemerging markets corporate and structuredfinance practice,” says Martin, whose col-leagues are based in Asia, the U.S., MiddleEast, Africa and Europe. Martin, however, is no slouch in that area either, having trav-eled to more than 80 countries for businessand pleasure. He has been helping disadvan-taged families and young people in the U.S.and U.K. through a variety of communityand church organizations. He and his wifeDebra have two children, Julia and Jordan,both attending the American CommunitySchool in London. You can reach him at [email protected].


C L A S S N O T E S

October 8–10, 2004. Network with alumni, facultyand other business leaders at the Annual BusinessConference on October 8.

■ Alumni Clubs Network(www.bus.umich.edu/AlumniCommunity/AlumniClubs)Get involved in the Business School alumni communityin your city or country. To join or establish a club in your area, contact Alumni Relations [email protected].

LIFELONG LEARNING TOOLS

■ Kresge Library (http://eres.bus.umich.edu/web/alumni2.html)Visit the Kresge Business Library to access onlinebusiness information and career resources. Kresgenow offers 11 subscription databases free of chargeto Business School alumni, including WetFeet PressInsider Guides, InfoTech Trends and Reference USA.The Library also offers links to hundreds of businessWeb sites, access to Mentor (the library catalog) andfaculty working papers.

■ Executive Education (http://execed.bus.umich.edu)Executives know that the key to continuing job successis continuing education; the Executive EducationCenter offers the programs that can help you achievesuccess in every aspect of your professional life.

NETWORKING SERVICES & PROGRAMS

■ iMpact (www.bus.umich.edu)Get connected to the Business School’s password-protected online community for students, faculty,staff and alumni. Via iMpact, members can accessthe Business School Alumni Directory, class and clubWeb sites, career listings and more.

To get an iMpact login name and password, contactAlumni Relations with your name, your name while inschool (if different) and your degree and year ofgraduation. Requests will be answered within 24 hours.

■ Alumni Directory(www.bus.umich.edu/Networking/AlumniDirectory.asp)Connect with Business School alumni in your city,country, company or class with this easy-to-use,searchable database located in iMpact.

■ Class Web Sites(www.bus.umich.edu/Classsites)Find out what your classmates have been up to lately,and publish personal and professional updates of yourown. To help develop your class Web site, contactMelanie McIntyre at [email protected].

■ Reunion Weekend & Annual Business Conference (www.bus.umich.edu/reunion2004)Join your classmates and other Business Schoolalumni in Ann Arbor for Reunion Weekend,

University of Michigan Business School Creating a Lifetime Community

Alumni ServicesAlumni Services

Alumni Relations www.bus.umich.edu/AlumniCommunity

The University of Michigan Business School boasts a powerful, international alumninetwork of more than 35,000. To help unite and strengthen this diverse andinfluential community, the Business School and Alumni Relations are pleased to offer the following services, programs, tools and products—all designed to help alumni communicate easily and network effectively with both the Business School and one another.

Class of 1997 alumni

Washington, DC, Club members with Professor JanSvejnar (third from left)

Professor Gretchen M. Spreitzer

BUSINESS SCHOOL ALUMNI RELATIONS

Phone:734.763.5775 Fax: 734.615.6103E-mail: [email protected]

Ann LaCivita, Director of Alumni Relations, [email protected]

Melanie McIntyre, Assistant Director of Alumni Relations, [email protected]

Julie Antis, Reunion Manager,[email protected]

COMMUNICATION TOOLS■ Lifetime E-mail

(www.bus.umich.edu/AlumniCommunity/EmailForLife)Sign up for a free “@umich.edu” e-mail forwardingaddress! Stay in touch with classmates and othermembers of the Business School community, even during career transitions and changes in Internet providers.

■ MichiganMail(www.bus.umich.edu/AlumniCommunity/Michiganmail)Update your e-mail address at [email protected] andreceive Alumni Relations’ e-newsletter, packed full ofinformation about the Business School, the Universityand alumni.

For more information about these andother services for Business School alumni,visit the Alumni Relations Web site atwww.bus.umich.edu/AlumniCommunity.

Regional Clubs& ContactsEASTBoston*Lowell Kim, MBA ’[email protected] Leonard, MBA ’[email protected] JerseyJeff Norman, BBA ’[email protected] York*Cecil Shepherd, MBA ’[email protected]/Delaware Valley*Geoff Wilson, MBA ’[email protected], DC*Steve Hennessey, MBA ’[email protected]

MIDWESTChicago*Greg Bolino, MBA ’[email protected] Neuroth, MBA ’[email protected] Histed, MBA ’[email protected]*Steve Morris, BA ’[email protected] WaynePaul Campbell, BBA ’61219.747.7592IndianapolisMike Shingler, MBA ’[email protected] Loudenslager, MBA ’[email protected] City*John Copaken, MBA ’[email protected]*Kurt Cumming, MBA ’[email protected]*Neil Janmohamed, MBA ’[email protected]. LouisJordan Pratzel, BBA ’[email protected]

Toledo*John McCarty, MBA ’[email protected]

SOUTHAtlanta*Barry Trout, MBA ’[email protected]*Julie Lehne, MBA ’[email protected]/Fort WorthTom Dolan, MBA ’[email protected] Konipol, MBA ’[email protected] Skeeters, MBA ’[email protected] Heckelman, MBA ’[email protected] CarolinaKaren Mishra, MBA ’[email protected] Rico*Manuel Calderon, MBA ’[email protected] Florida*Darío Epstein, MBA ’[email protected]/St. PetersburgDavid Everett, BBA ’[email protected]

WESTDenver*Jane Okun, MBA ’[email protected] Angeles*Harry McElroy, MBA ’[email protected] McInnis, MBA ’[email protected] DiegoDrew Hoffman, MBA ’[email protected] Francisco Bay Area*Shelley Scipione, MBA ’[email protected]*John Gearty, MBA ’[email protected] [email protected]

AFRICA & MIDDLE EASTIsrael*Benzi Ronen, MBA ’[email protected] CoastBernard Kouassi, PhD ’[email protected] Arab Emirates(Dubai)Sunil Khanchandani, BBA ’[email protected]

THE AMERICASArgentina* (Buenos Aires)Christian Sieling, MBA ’[email protected]* (São Paulo)Raul Aguirre, MBA ’[email protected]* (Toronto)Mitch Green, MBA ’[email protected] AmericaKlaus Stadthagen, MBA ’[email protected]* (Santiago)Juan Carlos Altmann, MBA ’[email protected] RicaMarco Gutierrez, MBA ’[email protected]* (Mexico City)Gerardo Ruiz, MBA ’[email protected]*Fernando Fort, MBA ’[email protected] Blanco, MBA ’[email protected]

ASIAAustralia (Sydney)Miguel Madrigal, MBA ’[email protected]* (Beijing)Hao Sun, MBA ’[email protected]* (Shanghai)Daniell Chen, MBA ’[email protected] Kong*Richard Chow, MBA ’[email protected]* (Mumbai)Ashish Khemka, BBA ’[email protected]

India (New Delhi)Atul Bahadur, MBA ’[email protected]*Takeo Suzuki, MBA ’[email protected] (Karachi)Nabeel Batlay, BBA ’[email protected]*Richard Lui, MBA ’[email protected] KoreaSang-Wook Ahn, MBA ’[email protected] Sun, MBA ’[email protected] Kulvaraporn, MBA ’[email protected] Nguyen, MBA ’[email protected]

EUROPEAustria*Joerg Windbichler, MBA ’[email protected] Hung, MBA ’[email protected] & Eastern EuropeGregor Strazar, MBA ’[email protected]

England* (London)Otto Dreissen, MBA ’[email protected]* (Paris)Stéphane Blondeau, MBA ’[email protected]* (Frankfurt)Andreas Kirschkamp, EX ’[email protected]*Sylvia Salibi, MBA ’[email protected] (Rome)Riccardo Cesarei, MBA ’[email protected] Lorentzen, MBA ’[email protected]* (Madrid)Jeff Hassman, MBA ’[email protected]* (Zürich)Beat Geissler, MBA ’[email protected]

Special Interest ClubsBlack Alumni Association*(UMBS-BAA)Harry McElroy, MBA ’[email protected] of Michigan Entertainment CoalitionDominic Cianciolo, BBA ’[email protected]


Alumni Clubs & Contacts

For more informationabout alumni activities in your area, e-mail yourregional contact or club leader or contactAlumni Relations [email protected] Clubs & Contacts


*Denotes established or forming clubs as of December 2003

Attendees at the Alumni Leadership Workshop in October 2003included Michigan Business alumni club leaders and contacts,members of the Alumni Board of Governors, faculty and staff.

Trina Fentriss, MBA ’83is a managing consultant with IBM in South-field, Michigan, and has quite a story to tell.She consulted or taught on three continents;consulted with clients in banking, financialservices, healthcare and automotive; and leda local chapter of IBM’s Women in Technol-ogy program, which sends women into mid-dle school classrooms to inspire youngwomen. Kevin Rhodes and she just cele-brated their 23rd wedding anniversary. Theyhave two sons, Steve, 17, who is a jazz musi-cian and avid golfer, and Dave, 15, who is acartoon artist, writer and Japanese languageand studies student. The entire family trav-eled to Melbourne, Australia, for six weeksand later to Edinburgh, Scotland, for oneglorious week. More important, Trina hassurvived a brain tumor diagnosis since Sep-tember 1995. You can reach this truly amaz-ing alumnus at [email protected].

Andrea L. Gordon, MBA ’83is a self-employed systems consultant in LakeZurich, Illinois. “Since graduation I’ve trav-eled to many parts of the world for busi-ness and pleasure, with friends and with mydaughter, who got her first passport at age4,” reports Andrea. “I’m most proud of mydaughter Ellen, now 11, who has a spunkand spirit that despite battling lupus justcan’t be suppressed.” Andrea started her ownsuccessful consulting practice “that has sur-vived recessions, depressions and family cri-sis,” she notes. Ellen says she loves buggingher mom and loving her two Siamese cats.Andrea concludes that she attended JerryGarcia’s last concert in 1995. If you wish tocontact Ellen, or even Andrea for that mat-ter, e-mail [email protected].

Wendy (Kavensky) McCollom, MBA ’83is CFO and COO of Sterographics Corp. inSan Rafael, California. “I have served as theCFO of growth companies for the past 13years in multiple industries. I recently haveadded COO responsibilities and run the or-ganization with the founder/CEO. I am mostproud of successfully balancing the roles ofwife and mother while leading a company,”says Wendy. To learn how she does it all, e-mail Wendy at [email protected].

Shiela (Dietz) McKinnon, MBA ’83is a Realtor with Snyder, Kinney, Bennett &Keating in Birmingham, Michigan, a “recentcareer change for the next 20 years,” as shesays. Prior to this, she was a senior VP in an11,000-employee international tech firm,principal at Main & McKinnon ExecutiveGroup, named to Crain’s Detroit “100 MostInfluential Women” in 1999 and the south-east Michigan regional director of Women inTechnology International. You can reach herat [email protected].

Janet (Meenehan) Point, MBA ’83“After a few financial analyst-type jobs, Ilanded in investor relations. In 1993 I was re-

cruited to Philadelphia and Advanta, a finan-cial services firm. Today I work for InterDig-ital Communications, a wireless telecom in-ventor building an IR program, and I serve aspresident of the Philadelphia chapter of theNational Investor Relations Institute,” reportsJanet. “I married Steve Point, MBA ’82, in1985. Our first son, Edward, arrived inMarch 1995, and John arrived in March 1997.”To find out more about life in the City ofBrotherly Love, contact Janet at [email protected].

Bobby Swiller, MBA ’83is first vice president at Merrill Lynch inMinneapolis. “I manage an office that hastripled its revenues over seven years,” boastsBobby, who has been approved by MerrillLynch to be a portfolio investment adviser.He has been a Big Brother for 10 years andhas led many volunteer missions to the Mid-dle East and Eastern Europe. He and hiswife Missy have two daughters. You canreach Bobby at [email protected].

1985Jeffrey A. Bussell, BBA ’85was admitted to the Michigan Bar in May2003. He is currently an associate at Hertz-berg PC in Bingham Farms, Michigan, spe-cializing in bankruptcy and commercial liti-gation. You can reach Jeffrey at [email protected].

Colin Wahl, MBA ’85was appointed adjunct professor at the Uni-versity of North Carolina’s Kenan-FlaglerBusiness School in March 2003. In October,he launched a new company, Client Opin-ions, a firm dedicated to helping organiza-tions conduct client/customer relationshipmanagement research via the Internet. Healso maintains the Internet company hefounded in 1999, InvestorForce, to provide in-stitutional money managers and investorswith a technology platform enabling them toconduct online investment research and duediligence. You can reach Colin at [email protected].

1986Jeff Haynes, MBA ’86is a partner with Boyle Investment Companyin Brentwood, Tennessee. “After 16 years

with Trammell Crow, I opened an office for a family owned real estate investment com-pany to develop and acquire real estate inNashville,” says Jeff. He and Lucy have fourchildren ranging in age from 5 to 11. You canreach Jeff at [email protected].

1988Mike Held, MBA ’88“First I bought a company and named it HeldMotorsports and then sold it in 2003. Now Iam actively working with Clean Air Inc., theworld’s only self-contained ventilation outletfiltration unit,” says Mike. Recently celebratinghis 14th anniversary with Sherry, they havefour kids: Michael, Casey, Andrea andMatthew. “I’m enjoying tennis and activitieswith the kids and still planning to retire closeto the Florida Keys,” adds Mike.

Valencia Roner, BBA ’88has owned and managed her Los Angeles-based full-service marketing and public rela-tions firm, VXR Enterprises, since 1999. Arecent recipient of the Small Business Ad-ministration’s Special Achievement Award,Valencia is active in her community and inprofessional organizations. For additional information, contact VXR Enterprises at 310.641.1696, visit the firm’s Web site atwww.vxrenterprises.com or e-mail Valenciaat [email protected].

1990Chris Lawrence, MBA ’90was recently selected as controller-reportingand analysis for Interline Brands in Jack-sonville, Florida. He was also named chair-man of the Jacksonville Financial ExecutiveNetworking Group. “My wife Grace and I,along with our four-year-old son Zachary,enjoy the Florida lifestyle of tennis, golf andwarm weather,” says Chris.

1991Todd Simon, MBA ’91is currently working for Alta Via Consulting,specializing in Strategic Cost Management.He published “A Planning and ControlModel Based on RCA Principles” in theJuly/August 2003 issue of Cost Management.The article explains the real-world imple-mentation of RCA management accountingprinciples in a complex environment us-ing SAP software. You can reach Todd at [email protected].

1993Makoto Ariga, MBA ’93was appointed senior executive officer, corpo-rate general manager of the human resourcesoffice of Mitsubishi Motors Corporation inJune 2003. “This is the first time a publiccompany of this size in this country brought


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in an HR leader from outside and appointeda relatively young person to head HR func-tions,” said Makoto, who is a former mem-ber of the Business School Alumni SocietyBoard of Governors and an active volunteerfor the Business School in Japan.

Tim Barrett, MBA ’93is COO of Barrett Distribution Centers inFranklin, Massachusetts. He married Laurenin the summer of 1999, and they have oneson, Matthew, born on January 4, 2002. Timalso endowed a scholarship in his brother’sname at Boston College. You can reach himat [email protected].

Michael Brown, MBA ’93moved from Ann Arbor to Stamford, Con-necticut, and a year later was transferred toAsheville, North Carolina. In 1997, he took anew job in Dallas. “I survived a paralyzingillness and learned to walk again nearly a year later,” boasts Mike. “I successfullytransitioned to the high-tech wireless dataworld, then held on for dear life during mas-sive downsizings and was promoted to VP,marketing, in 2002. I’m now raising threebeautiful children with my wife Jill.” To sendgood wishes to Mike, you can reach him [email protected].

David Everett II, BBA ’93is vice president of MIS and Telecommunica-tion for Tampa Bay Lighting. Dave notes hispersonal milestone was buying his first home,and his professional achievement was promo-tion to VP and earning Microsoft Certifica-tion for building a complete data center. Youcan reach him at [email protected].

Mary Hannes, BBA ’93completed her MBA at the University of Chi-cago in June 2002. In March 2003 she joinedFortis Health in Milwaukee as a productmanager. You can reach Mary at [email protected].

Steve Hartle, MBA ’93is the global marketing manager, urology, forMedtronic in Shoreview, Minnesota. “Myposition has allowed me to travel throughoutthe world for short periods of time,” saysSteve. “I continue to play soccer and volley-ball, although with more aches and pains.Currently I participate in Junior Achieve-ment as a teacher to middle school childrenand am active in the local elementary school’splanning team. Julie and I are the proud par-ents of three children, Megan, Tommy andJohnny.” You can find Steve recovering fromsoccer at [email protected].

William D. Leonard Jr., BBA ’93, MBA ’99is working in the corporate staffs financialcontrol area with DaimlerChrysler Corp. inAuburn Hills, Michigan. “I was a tax consul-tant at Price Waterhouse for four years, re-turned for my MBA and recently completedDaimlerChrysler’s advanced degree develop-

ment program,” says William. The programdevelops MBAs in the finance discipline,with the ultimate goal of training people forsenior management within the company. He and his wife Meg Blondin Leonard (U-M ’94) have three children, Kathryn,William III and Elisabeth Sloan, who wasborn on May 30, 2003. You can contact him [email protected].

Karen (Nowak) Lewis, MBA ’93created a niche for herself at 3M as an envi-ronmental marketer, then launched a drug at Searle Pharmaceuticals in the women’shealthcare division and developed a networkof professionals interested in sustainablegreen building design in metro Chicago. “Inthe latest phase of my life, I’ve become astereotype stay-at-home mom, soccer coach,SUV, two kids (Megan Ruth and Adam) andPTA. My negotiation class has come in quitehandy,” says Karen. “Soon it’s back to paidwork, which is much easier than coordinat-ing carpools.” She and husband Bob and theirchildren live in Chicago and can be reachedat [email protected].

Andrew V. Masterman, MBA ’93is president of Walbro Engine Management.“I lived in Japan for five years, gaining agreater fluency of the language and under-standing of the culture,” says Andrew, whoalso obtained advanced SCUBA certification,completing more than 100 dives in the SouthPacific and has finished nine triathlons. Heran the Asia group for Walbro Corp., andcurrently is responsible for a company of3,400 people in nine countries. He and hiswife Cheryl and children Zachary andNicholas live in Tucson. You can reach himat [email protected].

Masashi Nakamura, MBA ’93is division manager, motion picture division,for Imagica Corp. in Tokyo. Formerly he waspresident/CEO at Imagica Corp. of Americaand held similar positions with other compa-nies. “I’m finally getting used to living back inJapan after spending five years in the U.S.,”says Masashi, who frequently commuted fromTokyo to Los Angeles. “My current profes-sional focus is on developing a business modeland strategies to prepare the motion pictureindustry for the era of digital cinema.” You cancontact Masashi at [email protected].

Pamela Preston, BBA ’93is director of investor relations and financefor Transaction Network Services in Reston,Virginia. “I worked at Arthur Andersen fornine years where I was promoted to senioraudit manager, but after its demise in May2002, I decided to make the exit from publicaccounting and went to work for a longtimeclient in the corporate finance group,” reportsPamela. “I moved to Washington, DC, in1997, and over the years I’ve enjoyed makingnew friends and becoming Aunt Pam to 12 kids (more to come). I met my fiancé Ju-lian early in 2003, and we plan to marry inspring 2004.” You can catch up with Pam [email protected].

Bryan Thomas, MBA ’93is a lieutenant colonel in the U.S. Army inCentennial, Colorado. “After graduation Itaught economics and finance and served as anacademic counselor for economics majors atWest Point,” says Bryan. He has continued toremain on active duty and will retire in 2004,looking to transition to a finance career. “I hada great time living in a small town in Germanyfor three years. While there, I was able totravel through most of Germany, Austria,Czechoslovakia, Poland, Italy, Paris, Nether-lands, Ireland and Tunisia,” says Bryan. Heand his wife Marie have three children, Victo-ria, 11, Monica, 8, and Katie, 6. “My wife homeschools all three,” adds Bryan. You can reachhim at [email protected].

Takahiro Tokunaga, MBA ’93is manager of Shinsei Bank in Tokyo. “I havebeen exploring real estate and loan investmentbusiness over five years,” says Taka. “My cur-rent position is oversight of various real estate-related investment opportunities in a Japaneseinvestment banking firm.” He also has playedmore than 50 repertoires as a pianist andbought a grand piano. He and his wife Ryokohave two daughters Kazune and Kanae. Youcan reach him at [email protected].

Shelley (Woods) Whiting, MBA ’93is a senior consultant with DuPont in Wilm-ington, Delaware. “I’m re-energizing a dyingproduct line while simultaneously leading amajor launch,” says Shelley, who admits she’sdeveloping top-notch marketing talent. Shecontinues her involvement in community or-ganizations and currently is a board memberof the local YMCA. She and her husband W.Bernard Whiting Jr. live in Wilmington. Youcan reach her at [email protected].

1994Charles Asubonten, MBA ’94director and strategic business unit controller atDTE Energy, has been recognized by the De-troit Regional Chamber of Commerce as oneof the “100 Emerging Business Leaders” in thearea, stating that he has shown the potential toplay a significant role in business and his com-munity. A five-year veteran of DTE Energy,


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he provided keen financial leadership in theturnaround of DTE’s Fermi Nuclear PowerPlant operations. Prior to joining DTE,Charles worked with Ford Motor Companyand Dow Chemical Company, as well as anauditor with KPMG early in his career. ACPA and CFA, he has taught economics, finance and accounting at the University of Michigan-Dearborn and Wayne State Uni-versity. He is f luent in French and Twi. He is a member of the Henry Carter AdamsSociety at the Business School, and is a recentgraduate of Leadership Detroit. He is a boardmember of the Detroit Urban League. Charlesand Rosiland and their three children, John-Paul, Mary Christina and Michael Cyprian,live in Dearborn. You can reach him at [email protected].

Karen (Slinin) Buczek, MBA ’94“For the last two years I have been livingwith my husband John and kids Andrew, 6,and Kevin, 4, in Mexico City,” reports Karen. “I have been working in Cereal PartnersWorldwide, a joint venture between GeneralMills and Nestle, as director of marketing for Latin America, Central America andCaribbean. I travel a lot throughout my re-gion and attend worldwide meetings in Eu-rope. The job is challenging but fun. Myfamily is finally learning Spanish, and itlooks like one of my kids might be a futuresoccer star. There are many beautiful placesto visit in Mexico, so we are also taking a lotof small trips and getting to know the coun-try, its culture and the beaches. I would loveto hear from Section 5.” You can reach Karenat [email protected].

1995Luis A. Colon, MBA ’95is director, strategic and business planning, for Source One Management in Denver. He has been appointed by the Governor of Colorado to the board of trustees ofMesa State College. You can reach him [email protected].

Lori Robinson, MBA ’95is director of marketing for McCormick &Company in Hunt Valley, Maryland. “It’sbeen almost 10 years since business school,and I’m looking forward to the big 2005event,” says Lori. “Give me a call if you’re in

the Baltimore/Washington, DC, area, andfeel free to come hang out with me, the twinsand the hubby,” she adds. To make reserva-tions, contact Lori at [email protected].

David N. Stievater, MBA ’95founder and president of Stievater & Associ-ates, a strategic consulting group serving thebiopharmaceutical industry, has been ap-pointed vice president-sales for ImpactRx, thepioneering force in measuring the impact ofpharmaceutical promotion on physicians’ pre-scribing behavior. Prior to establishingStievater & Associates, David was with Moni-tor Company Group, an international corpo-rate strategy consultancy, where he served 11 years as a partner and global account man-ager. You can reach David at [email protected].

1996Paul R. Maurer, MBA ’96sold his business, Streamsoft LLC, to Manhat-tan Associates this past October. After fiveyears of growing a company that provides soft-ware to help companies optimize their ware-houses through slotting, Paul accepted the ac-quisition offer. He has joined Manhattan assenior director overseeing both their slottingproduct and Streamsoft’s software—FlowTrak.

Robert C. McLister, BBA ’96has launched Sphere Analytics LLC and Emperian Global Markets LLC. Sphere Ana-lytics develops institutional trading analytics.EGM is a proprietary equity trading firm. Youcan learn more at www.sphereanalytics.comand www.egmtrading.com or contact him [email protected].

1998

Bruce Berglund, MBA ’98had been business team manager for thebuildings and coatings business at WackerChemical Corporation but left to join an AnnArbor-based firm, Neolytica, “where I’m en-joying the excitement and opportunitiesavailable in a start-up,” as Bruce puts it. Tofind out more about Neolytica and Bruce,contact him at [email protected].

Tina Chow, BBA ’98is a trader at the Susquehanna InternationalGroup in New York City. “I bought a car and

house and got married,” says Tina. To learnmore, e-mail her at [email protected].

Joseph Craig, MBA ’98is president of IDEACore in Birmingham,Michigan. “We recently have launched threenew software products in products and serv-ices: QFD Designer, WebMine Online SurveyTool and TRIZ Contrasolve. We also filed apatent on some exciting commerce-facilitatingtechnology. Our company has acquired theU.S. Army/DARPA as a customer, and wealso have done consulting for the U.S. StateDepartment and the city of Detroit,” reportsJoe. To learn more, contact him at [email protected].

Sean Gelston, MBA ’98is an equity analyst at Dreyfus Corp. in NewYork City. “I achieved my goal of entering in-vestment management and have been a buy-side equity analyst for five years,” says Sean,who also has managed to trace his family lineback to Belfast, Ireland, in the 1600s. You canreach Sean at [email protected].

Charlene Klinkner, MBA ’98“After nearly four years with PwC Consult-ing, I started consulting independently forlarge companies interested in customer rela-tionship management, founded Link2Cus-tomers Inc. and am seeking expansion oppor-tunities,” says Charlene, who also notes shewas able to travel to several countries aftergraduation and has learned the painful joy ofsnowboarding. Living in Chicago, you canreach Charlene at [email protected].

Chia-Lin Ou, MBA ’98is finance manager for Hewlett-Packard AsiaPacific Ltd. in Hong Kong. If you want tofind out about the family’s three children,Anderson, Jonathan and Angela, or plan tobe in Hong Kong or just want to talk, [email protected].

Stephen W. Reinhard, MBA ’98is vice president in private wealth managementat Goldman Sachs in New York City. He mar-ried Deborah Hanson Reinhard, MBA ’98, in1998. Since leaving the University they havetraveled to Australia, Spain, London, Italy,Aruba, Bermuda, Puerto Rico and throughoutthe U.S. They have one daughter, Madeleine,3, and one Scottish terrier, Hudson, 5. To findout what’s happening in their busy lives, con-tact [email protected].

Tobin Ross, MBA ’98is plant manager for National Gypsum.“After being laid off by my previous em-ployer, I hired in with National Gypsum and began my career in November 2002 inTexas,” says Tobin. Since then he became aplant manager for the firm’s Ohio facility. He and Millicent celebrated their 14th wed-ding anniversary in September, and they havetwo children, Spencer and William. You canreach him at [email protected].


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Raman Singh, MBA ’98is president of Agilero, a company in Col-orado Springs providing computer, Internetand software services. You can reach Ramanat [email protected].

Stephanie Skolnik, MBA ’98is VP of the payments strategy and acquisi-tions group of Bank One in Chicago. She hasdone extensive traveling in southeast Asiaand America and is enjoying Chicago—andbuying a condo there. To contact Stephanie,especially if you’re in Chicago, e-mail her [email protected].

Dina (Denham) Smith, MBA ’98is vice president of Aquarius Equipment Fi-nance in San Francisco. “After a few years inconsulting and then high tech, I am finallyenjoying both my work and life,” says Dina.“I now split my time between working withmy husband at his company, doing some independent consulting and working for anonprofit focused on at-risk youth.” You canfind Dina at [email protected].

Steve Weinstein, MBA ’98is principal with Prism Venture Partners inWestwood, Massachusetts. “I married mylovely wife, Joellen, in December 2002, andwe spent our honeymoon in Anguilla,” saysSteve. “I joined Prism Venture Partners in2001 after two years at Mid-Atlantic VentureFunds, where I served as a Kauffman Fel-low, focusing on software and communica-tions investments. For the past two years atPrism I have been focusing on early-stagemedical devices and drug discovery oppor-tunities,” he adds. You can reach Steve [email protected].

Robert Wilson, MBA ’98is new business development manager for W. R. Grace in Cambridge, Massachusetts,where he works mostly with new acquisi-tions and some other major ventures withSingapore. His other major accomplishmentswere marrying Julie Yi and the arrival oftheir daughter Rachel. You can find outmore at [email protected].

1999Brian Jay Conom, MBA ’99is southern regional sales manager for RegentMedical in Dallas. He recently was named

Regent Medical’s regional manager of theyear for the second straight year. Regent Med-ical is the world’s leading manufacturer ofpowder-free and label-free surgical gloves.

2000Russ Klein, MBA ’00married Debbie Libman, BBA ’00, on May25, 2003, in Cleveland. The wedding party included Sachin Gadhvi, MBA ’00, withmany other alumni in attendance. The cou-ple met at Michigan and currently reside inCleveland. Russ is a consultant at Diamond-Cluster International. You can reach him [email protected].

2001Ajay K. Amlani, MBA ’01has been named to the 2003–2004 Class ofWhite House Fellows. Ajay is assistant vicepresident for strategic planning with PacerStacktrain, and was recognized with the 2002Pacer Significant Contributor Award for thestrong economic results he achieved related toopening U.S.-Mexico cross-border freighttransportation. He serves on the board of di-rectors and holds leadership positions at theYMCA Urban Services, the Network of In-dian Professionals and the Children’s Councilof San Francisco. He is also actively involvedin Habitat for Humanity, the Volunteer Center of San Francisco, and Child Reliefand You.

Peter Hansell, MBA ’01“After graduation, Barbara and I tried to landin Portland, Oregon, but we pulled up stakesand moved to Quincy, California (Barbara’shometown), located in the northern end ofthe Sierra Nevada range,” says Peter. He isnow general manager of American ValleyAviation, leading the company throughtough times. “If anyone out there wants toperform market research and mentor a salesdepartment, what we lack in pay is surelymade up in small town, country living. Dropme a line,” adds Peter. Barbara and Peterwere married last year. You can reach Peterto find out all the news about the job andwedding at [email protected].

Jennifer Hollems, MBA ’01is senior associate brand manager for KraftFoods. “My husband Tim and I are enjoyingthe company of our first child, Carter JacobHollems, born February 20, 2003,” reportsJennifer enthusiastically. Congratulations canbe sent to [email protected].

Brodie Killian, BBA ’01is a salesman with G.X. Clarke & Company inJersey City, New Jersey. “After finishing myBBA, I decided to continue my academic ca-reer at the University of Michigan Gerald R.

Ford School of Public Policy, where I receivedmy Master of Public Policy in economic policyin April 2003,” reports Brodie. “I will be sellinggovernment securities, agencies and mortgage-backed securities, and have taken residence inmidtown Manhattan.”

2002Sara Chen, MBA ’02is knowledge manager for Medstat in AnnArbor, a new function that she built. In 2002,she was able to see the French foreign ex-change student her family hosted over 12years ago. To find out more about Sara’swork at Medstat, e-mail her at [email protected].

Frank C. Fontana, MBA ’02founded and became president of BanyanAsset Management Inc. (www.banyan-asset.com), a registered investment adviserdually based in Harrison Township, Michi-gan, and Fort Myers Beach, Florida. His firmprovides professional money managementservices to individual investors and corporateclients. In 2003, Frank earned the CharteredFinancial Analyst designation, a globally rec-ognized credential for investment analysisand management. You can reach Frank [email protected].

Russ Heilbrun, BBA ’02is a business analyst, movies department, withTarget Corporation in Minneapolis. To reachhim before the mosquitoes do, e-mail [email protected].

Masatsugu Inoue, MBA ’02is manager of Inoue Manufacturing Inc. inKanagawa, Japan. “I sold the largest machinemy company manufactured, collaboratedwith a chemical company to develop a newprocessing system and am involved in an in-house project to develop a new product to bepatented in the near future,” says Masatsugu.He also participated in an MBA symposiumheld in Japan, with alumni from Harvard,UC Berkley and Dartmouth. “I definitely ad-vertised Michigan. I also have gotten my bestscore in golf and have started gardening as ahobby,” adds Masatsugu. He and his wife Miereside in Kanagawa. You can reach him [email protected].


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Amy Mell, MBA ’02is a strategic pricing associate with GuidantCorporation in St. Paul, Minnesota. “I’ve beenhere since August 2002, bought an 80-year-old house in St. Paul and have mastered theart of removing ugly wallpaper,” laughs Amy,who also helped her youngest sister open andoperate her bar/restaurant, Mell’s Beauty Bar,in Minneapolis. Amy is working toward com-pletion of training necessary to move into afield rotation with Guidant. To learn why shealso considers herself an expert at toilet repair,e-mail [email protected].

Rob Oliver, MBA ’02is director of the MassMutual FinancialGroup in Springfield, Massachusetts. He’scompeting in his first triathlon and is takingthe CFA Level II exam.

Smrity Prakash, BBA ’02is director of Daya Engineering Works Ltd.in New Delhi, India. “I modernized thefamily enterprise, computerized several pro-cedures such as inventory management andintroduced an incentive-based salary systemfor management,” says Smrity. He has been

accepted to the Stanford Graduate BusinessSchool for a PhD in accounting and shouldbe in class by the time you read this. How-ever, you can always reach him at [email protected].

Daljeet Sidhu, MBA ’02is a senior analyst with Capital One Financialin Glen Allen, Virginia. Daljeet spent the sum-mer of 2002 in Shanghai learning Mandarin.You can reach him at [email protected].

David J. Wible, BBA ’02is an associate financial analyst with E & JGallo Winery in Modesto, California. “Imoved to the west coast, where I didn’t knowanyone, and established a strong networkwithin months,” says Dave. To order youraward-winning wines, e-mail him at [email protected].

2003Winston Wenyan Ma, MBA ’03was the founder and president of the Finan-cial Derivatives and Risk Management Clubat the Michigan Business School. Recently the

club has become an affiliate member of theProfessional Risk Manager International As-sociation, and Winston has become a mem-ber of the steering committee for the associa-tion in Shanghai. He has joined JP MorganSecurities at its equity derivatives groupbased in New York. Working in the productsand solutions group, he structures/marketsOTC structured equity products to corpo-rate, funds and high net worth clients. Hecan be reached at [email protected].

Jennifer Vandenbrooks, MBA ’03has returned to Kaplan K12 Learning Services,a leading provider of standards-based educa-tional services for schools, as director of districtservices, responsible for working with majorurban school districts to implement the KaplanAchievement Planner and other comprehen-sive curriculum programs. A former managerand teacher in Kaplan’s test preparation divi-sion, Jennifer returns to the company afterserving as a product director of RenaissanceLearning. She also has taught high school andmiddle school social studies and English in De-troit area public and private schools. You canreach her at [email protected].


C L A S S N O T E S

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Place an order online or call toll free888.262.6499.

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Walter M. ReamBBA ’49, MBA ’50died of heart failure on September 27, 2003,at St. Joseph Mercy Hospital in Ann Arborfollowing intestinal surgery. Walt was bornin Detroit in 1926 and graduated from CassTechnical High School in 1944. He enlistedin the U.S. Navy and was selected for theV-12 Officer’s Training program duringWorld War II. In 1945, he married JanethKnapp Ream. Following his military serv-ice, he entered the University of Michiganunder the GI Bill. He was an avid, life-longWolverine football fan, missing very fewgames since his school days. He worked forover 30 years for Ford Motor Company andwas a veteran world traveler, fulfilling six-year assignments in both Ford of Ar-gentina and Ford of Australia. In 1962,Walt received the Ford Motor CompanyAward for Outstanding Community Serv-ice. He founded the Redford TownshipJunior Athletic Association, which beganwith Little League Football and grew toadd basketball and baseball leagues. Walt issurvived by his wife Janeth, sons Charlesand Ted, and five grandchildren.

Frederick E. IttnerMBA ’53died peacefully from cancer at his home inMoraga, California, on December 7, 2003, atage 73. Fred was born in Saginaw, Michi-gan, earned his BA at the University ofMichigan in 1952 and received his MBAfrom the Business School in 1953. After col-lege he served with the U.S. Army in Korea.Fred taught at Laney College in Oakland,California, the College of Alameda inAlameda, California, where he was the col-lege’s first business department chairman,and at Vista College in Berkeley, California,where he also served as dean of instruction.He was vocational dean at Bakersfield Col-lege in Bakersfield, California, and at SantaAna Community College in Santa Ana, Cal-ifornia. In his retirement he continued toteach at Alameda and Vista, as well as theUniversity of San Francisco. Fred also hadhis own investment advising business.

He loved being a part of the BerkeleyBreakfast Club, Rotary and the Bay AreaGraduate Chapter of Phi Gamma Delta. Heserved on the boards of Peralta Cancer Re-search Institute, Saybrook Institute, Om-budsman of Contra Costa and the Universityof Michigan Development Advisory Board.

Fred is survived by his wife Helen Louise,his son Philip and many cousins. His sonDavid predeceased him. Memorial gifts maybe given to the Michigan Business School, c/oElsie Orb, Associate Development Director,701 Tappan St., Ann Arbor, MI 48109-1234or to the Hospice of Contra Costa, 2051 Har-rison Street, Concord, CA 94520.

Russell L. Epker BBA ’64died November 4, 2003, at age 61, fromcomplications from cancer. Russ was one offive former Thomas H. Lee & Companyinvestors who formed Boston-based Berk-shire Partners, a private equity firm, in1986. He retired from full-time duties inJune 2000, but continued to serve as an ad-visory director. Russell was born in Ohioand raised in Michigan. After graduatingfrom Seaholm High School in Birming-ham, he attended the University of Michi-gan, where he served as the president of thestudent government.

An enthusiastic supporter of the Busi-ness School, Russ contributed generously tothe school’s Annual Fund, 75th anniversarycelebration, Domestic Corps and the Initia-tive Endowment, which supports innova-tive approaches to education. Between thelate 1980s and 2003, Russ served on theAlumni Society Board of Governors, Cor-porate Advisory Board and the Samuel Zell& Robert H. Lurie Institute for Entrepre-neurial Studies Advisory Board. “We cer-tainly were the beneficiaries of Russ’ per-sonal involvement and generous spirit.Over and over again, he stepped forwardwith sound advice, infectious enthusiasm,strong encouragement and general support.“We will miss him greatly,” said DeanRobert J. Dolan.

Russ earned an MBA in 1967 from theHarvard Business School. A year beforegraduating, he began working for FordMotor Company and eventually moved toPuerto Rico to supervise Ford’s plant there.When he returned to Boston, he workedbriefly for Xerox, Tyco International and theThomas H. Lee Company before foundingBerkshire Partners. He was active in Boston’snonprofit community and served as chair-man of the board of the Boys & Girls Club ofBoston, vice chairman of United Way ofMassachusetts Bay and co-chair of theFriends of Camp Committee of Camp Hale.

Russ is survived by his wife Anne Perci-val; his three children, Kristen, Mark,MBA ’01, and Allison; four grandchildren;his mother and two brothers. Donationsmay be made in his memory to: The Boys& Girls Club of Boston, attention: Jill Gold-weitz, 50 Congress Street, Suite 730, Boston,MA 02109-4002.


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“Someday Our Books Too Will Be on the Wall”

(Left to right) Li Jiang and Xinxin Hu, Michigan Business School doctoral students in operationsmanagement, examine a book display on the first floor of William Davidson Hall. Li Jiang andXinxin Hu told photographer Philip Datillo, “Someday our books too will be on the wall.” Thedisplay of books, written and edited by Business School faculty, includes 30 new titles added in2003. For more about faculty books, see http://www.bus.umich.edu/FacultyResearch/Books/.

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Spring 2004 - deepblue.lib.umich.edu

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