C O R N E L L
J O H N S O N AT C O R N E L L U N I V E R S I T Y
F A L L 2 0 1 0
Taming the Bear Will Dodd-Frank put paid to more
market meltdowns?
Game ChangersAlumni facilitating economic
development in emerging economies
Getting More GlobalJohnson’s new Emerging Markets Institute
Profile in Leadership: A Brand for All Seasons
Godiva CEO Jim Goldman, MBA ’85
Visit www.eship.cornell.edu/ActiVities/celebrAtion/2011 to leArn more!
the
Join more than 900 alumni, students, faculty, and staff for two days of on-campus events including:• Symposiaonawide
range of topics• Businessidea
competitionfinals• Networkingopportunities ...and much more!
“The annual Entrepreneurship@Cornell Conference exemplifiesourunique,integratedapproachtoentrepreneurship.”DavidJ.Skorton•CornellUniversityPresident
ShaiEynavPho
tograp
hy
celebrAtionentrepreneurship@cornell
A two-dAY conFerence
2011co
rnel
l un
iV
ersitY, ithAcA, nY, April 14-15
April 14–15, 2011
sAVe dAte
Scenes from Celebration 2010
“Finding and fostering the entrepreneurial spirit in every Cornell participant in every college, every field, and every stage of life.”
www.eship.cornell.edu
CorNEllENtrEPrENEUrShiPCoNfErENCE
w w w.johnson.cor nell .edu
Wearecommittedtocontinuallyimprovingthecurriculumin
allofourprograms,asourstrategicplanstipulates.ProfessorBeta
Mannixisleadinganefforttoimprove,update,andbuildonour
curriculumforourPalisades-basedExecutiveMBAprogram,and
weplantoreevaluatetheCornell-Queen’sEMBAcurriculumover
thecomingyear.
Thissemesterwehavewelcomedanimpressivearrayof
guestspeakerstotheschool,includingJohnC.Bogle,
founderoftheVanguardGroup,Inc.;formerU.S.
TreasurySecretaryHenryM.Paulsen;AndrewRoss
Sorkin,authorofthebestseller,Too Big to Fail;
ScotSafon,executivevicepresidentofCNN
WorldwideandgeneralmanageroftheHLN
network;andWilliamC.Dudley,presidentof
theNewYorkFederalReserveBank.
Earlyindicationsarethatthejobout-
lookfor2011willbebetterthan2010,which
wasbetterthan2009.Whilewe’reclimbing
backup,weknowitwillstillbeadifficult
yearforplacement,andwestillneedyourhelp.
OurClassof’11studentsareoutstanding,and
thehighcaliberofsummerinternshipstheycom-
pletedmakesthemwell-preparedtobeeffectivein
theworkplace.
Asalways,Iappreciateyourhelpinmany
ways.Pleasestayintouchwithnewsaboutyourself
andyourideasforus,andbestwishesforhealth
andsuccess.
L. Joseph Thomas
Anne and Elmer Lindseth Dean
Shaping our future and reaffirming our strengthsBuildingonthesuccessandoutstandingreputationofourexisting
centersofresearchandeducation—theParkerCenterforInvest-
mentResearchandtheCenterforSustainableGlobalEnterprise—
Iampleasedtoannouncethatthisfallweestablishedtwonew
entities:theEmergingMarketsInstituteandtheEntrepreneurship
andInnovationInstitute.Wehavebeenworkinginbothofthese
areasforsometime.Creatingtheseinstitutesnowreaffirmsour
achievementsandsignalsourcommitmenttobringtogetherpre-
eminentpractitionersandacademicsandexpandoureducational
andresearchprograms.
ThenewEmergingMarketsInstituteunderscoresourresolve
tobecomemoreglobalinfocusandoutlook,toeducatestudents
abouttheglobalnatureofbusiness,andtoenlargeourfootprint
aroundtheworld.Readmoreabouthowitcameabout,as
wellasitsgoals,mission,andstrategyinthisissue(seep.
29).Wearegratefulfortheverygeneroussupportfromour
alumni,includingclassmatesBobStaley’58,MBA’59,and
AlbertE.Suter’57,MBA’59,bothretiredexecutives
atEmerson,whowereamongthefirsttofundour
globalbusinessefforts.Morerecently,wereceived
significantsupportfromKyung-BaeSuh,
MBA’87,presidentandCEOofSeoul-based
AmorePacificCorp.,whofundedafacultychair
inglobalbusiness.
Asyoumayalreadybeaware—fromoneof
ourenewsletters,ourWebsite,orouradsinthe
press—wehaveanewlogoandanewlook.
Buildingonresearchforthestrategicplan,plus
anadditional,year-longresearcheffort(involv-
inginputfromthousandsofpotentialstudents,
students,alumni,recruiters,faculty,andstaffas
wellasextensivemarketresearch),weupdatedour
brand,maintainingourthreepillars—performance
learning,collaborativeenvironment,Cornellconnec-
tions—becauseourresearchvalidatedthese.While
givingthe“Johnson”namemoreprominence,we
continuetostronglyconnectJohnsonwithCornell.
Ournewpositionstatementisbasedonwhatwehear
backfromemployers:Johnsongraduatesknowhow
toharnessthecollectivestrengthofotherstocreate
extraordinaryresults.Learnmoreaboutournewbrand
onpage6andonourWebsite.
Creating the Emerging Markets Institute and the Entrepreneurship and Innovation Institute reaffirms our achievements and signals our commitment to bring together preeminent practitioners and academics and expand our educational and research programs.
Ph
oto
: R
ob
ert
Ba
rke
r, U
niv
ers
ity
Ph
oto
F R O M
Taming the BearWillDodd-Frankputpaidtomore
marketmeltdowns?
Game Changers Alumnifacilitatingeconomicdevelopmentin
emergingeconomies.
C O R N E L L
FALL 2010 VOL. 25, NO. 1
Getting More Global, with a Fresh New FocusJohnson’snewEmergingMarketsInstitute
strengthensitspositionasapowerplayer
amongtopschoolsofmanagement.
29
18
23
Cornell Enterprise onlinewww.johnson.cornell.edu/alumni/enterprise
Profile in Leadership: A Brand for All Seasons JimGoldman,MBA’85,Presidentand
CEOofGodivaChocolatier,iscreating
newmarkets,newproducts,andnew
distributionchannelsforthecompany’s
luxurychocolates.
Departments
COVER ILLUSTRATION: James Steinberg
From the Dean 1Shapingourfutureandreaffirmingourstrengths
Enterprise Online 4WebExclusivestories,videos,andpodcasts
Intellectual Capital 5GuptanamedassociatedeanTwonewinstitutesannouncedNewfaculty
Johnson: Our Brand 6AnupdatetoJohnson’sbrandstrategy,promise,andlook
Business Roundtable 8SteveKaplanUnplugged:unveilingstrategiesforsuccess
Newsmakers 9ThevalueofanMBATrickleup,tax,andgetoveritTheMBAadmissionsgame
Job Talk 10Networkinginadigitalage
Vantage Point 12RobertH.Frank:Incomeinequality
Startups 14TheCornellVentureChallenge
Startup Snapshots VahaSolarandGreenConsulting BoldAspirations
Thought Leadership@Johnson 17VrindaKadiyali:Thehiddencostof9/11
Class Notes 37 Alumni Profiles Dan Tobin, MPA ’74, MS ’76, PhD ’77 Groomingthenextgenerationofleaders
Candace Davies ’00, MBA ’06 Longdistancegiving
Hilary Cox Maxson, MBA ’05 Growingthegrid
Keigo Kuroda, MBA ’00 Adaptingtosucceed
34
4 cor nell enter pr ise • fa ll 2010
FALL 2010: Vol. 25, No. 1Cornell EnterpriseispublishedtwiceayearbytheSamuelCurtisJohnsonGraduateSchoolofManagementatCornellUniversity.
Anne and Elmer Lindseth Dean L.JosephThomas
EditorJaniceEndresen,MA’85
Staff WritersShannonDortchNicolaPytell
Class Notes and Copy EditorTanisFurst,PhD’94
DesignWarkulwizDesignAssociates
We welcome feedback from readers.
Address letters to:
Cornell EnterpriseJohnsonatCornellUniversity130E.SenecaStreet,Suite400Ithaca,N.Y.14850-4353
Phone:800.847.2082;607.255.3096
Fax:607.255.1858
E-mail:[email protected]
Lettersmaybeeditedforclarityandlength.
Cornell Enterprise online www.johnson.cornell.edu/alumni/enterprise
©2010JohnsonatCornellUniversityISSN07416989
Printedgreenonrecycledstockwith30%post-consumerfiber.
enterpriseonlineC O R N E L L
Web ExclusivesLook for these stories, videos, and
podcasts online at www.johnson.cornell.
edu/alumni/enterprise
The birth of “customer 2.0” and the death of marketing as we know it
Inthisarticle,Pelin
Thorogood’90,MEng
’91,MBA’94,andco-
authorRandSchulman
showhowdramatically
onlinemarketingand
socialmediahave
changedthemarket-
inglandscape.From
boardroomsandgaragestartupstobusiness
schoollecturehalls,anew,billion-dollar
questionnowreverberates:“Ismarketingas
weknowitreallydead?”Theanswer:The
morethingschange,themorethingsstay
thesame.Marketingisstillaboutknowing
youraudience.However,thetoolsand
tacticsweemploytogettoknowandengage
ourtargetcustomerhaveindeedchanged—
ashashowwedefineandmeasuresuccess.
Shell HR Chief on the importance of human capital
WhenHughMitchell,
chiefhumanresources
andcorporateofficer
forRoyalDutchShell,
visitedJohnsonSept.
16,2010,speakingatBarnesHallon“The
GlobalEnergyChallenge:TheImportance
ofHumanCapital,”healsosatdownfora
videotapedinterview.Inashortvideothat
highlightsaselectionofexcerptstakenfrom
theinterview,Mitchellshareshisviewson
offeringaneffectivevaluepropositionto
retainhigh-performingemployees,howto
attractgenerationsXandY,andwhatit
takestobeasuccessfulHRleader.Youcan
alsoviewfull-lengthvideosofhispresenta-
tion,andotherclipsoftheinterview.
Check out Johnson’s new Web site
Johnson’snewlyredesignedWebsitehasbeen
craftedtocreateaninviting,user-friendly,
interactiveplacewherevisitorscanfindand
learneverythingtheywishtoknowaboutthe
uniqueaspectsofourschoolanditsculture.
Browsethroughthesite,clickaround,and
takeinallthenewfeaturedaspects.
Trading in a high frequency world: the flash crash and beyond
MaureenO’Hara,RobertW.PurcellProfessor
ofManagementandprofessoroffinance,
sharedherperspectiveontheramificationsof
theMay6,2010“flashcrash”inapresentation
toFingerLakesareaalumniinNovember.
Marketing in the digital age
Inadynamickeynotespeechthatkicked
offJohnson’sfirst“BattleoftheBrands”
competition,ScotSafon,MBA’84,executive
vicepresidentofCNNWorldwideandgen-
eralmanageroftheHLNnetwork,pointed
outthatinthedigitalage,anyonecanbea
marketerandthatoneofCNN.com’smost
successfulmarketingcampaignlastyear
resultedinatweetfromLadyGaga.
An interview with Robert Frank on income inequality
Inthisvideotaped
interview,Robert
H.Frank,Henrietta
JohnsonLouisProfes-
sorofManagement
andprofessorofeconomicsatJohnson,
expandsontheideashepresentedon
incomeinequalityinhisNew York Times
“EconomicScene”columninOctober
(reprintedonpage16ofthisissue).
5w w w.johnson.cor nell .edu
I N T E L L E C T U A L
Sachin Gupta named Associate DeanSachinGupta,theHenrietta
JohnsonLouisProfessorof
Managementandprofessor
ofmarketing,wasappointed
associatedeanforacademic
affairseffectiveJuly1,2010.
Thepostwasheldforthree
yearsbyMarkNelson,the
EleanoraandGeorgeLandew
ProfessorofManagementand
professorofaccounting.“MarkNelsonservedtheschooladmirably
asassociatedean,butwantedtoreturntothefacultyfull-time—I
reluctantlyagreed,”saidDeanJoeThomas.“Iamverypleased
thatSachinGuptahasagreedtoserveinthiscapacity,andIenjoy
workingwithhimaswecontinuetoadvanceteaching,research,and
thoughtleadershipatJohnson.”GuptajoinedthefacultyatJohnson
inJuly2000,andwasnamedtotheHenriettaJohnsonLouischair
in2007.HeservesaschairoftheFacultyPolicyCommittee,and
isarecipientofJohnson’sFacultyResearchAward(2006-07),the
AppleAwardforTeachingExcellence(2007),andtheStephen
RussellDistinguishedTeachingAward(2009).
Johnson announces two new institutes Thisfall,JohnsonadvanceditsStrategicPlanbyapprovingtwonew
institutesfortheschool.TheEmergingMarketsInstitute(seestory,
p.29)willfocusonexpandingourglobaleducation,outreach,and
research,andtheEntrepreneurshipandInnovationInstitutewill
furthertheschool’sstrategyinthegrowingspaceofentrepreneurial
educationandtheuniquechallengesofcommercializinginnova-
tions.TheseinstituteswillsupportgoalsJohnsonhasprioritized
toexpandoncurrentprojects,whileenablinggenerationofwhat
isexpectedtobegame-changingandparadigm-shiftingresearch,
businessmodels,andthoughtleadershipinthesevitalareasof
today’seconomy.Lookformorenewsaboutthesenewinstitutesin
comingmonths.
Welcome new Johnson facultyEugenia C. Wu, Assistant Professor of Marketing
EugeniaWu’sresearchfocuses
onhowouremotionsandmoti-
vationsaffectthewayconsum-
ersbehave.Inarecentproject,
sheexploredhowsocietal
beliefsaboutemotioncan
motivateconsumerstoselect
productstheywouldnototh-
erwisechoosetoconsume.In
anotherproject,sheexamined
howtheneedforself-discoveryleadsindividualstoseekout,but
notnecessarilyaccept,thefeedbacktheyreceiveandtheimportant
consequencesthishasforsubsequentproductchoice.Wureceived
herPhDfromDukeUniversity.SheholdsaBSineconomicsfrom
theWhartonSchoolattheUniversityofPennsylvaniaandaBAin
psychologyfromtheCollegeofArtsandSciencesattheUniversity
ofPennsylvania.
Pengqin Gao, Assistant Professor of FinancePengqinGao’sresearch
interestsareintheareasof
assetpricing,investments,and
financialeconometrics.His
currentresearchfocusesonthe
impactofcross-sectionalinfor-
mationtransferonsecurity
pricesandtheapplicationsof
characteristic-basedcovari-
ancemeasuresonportfolio
optimizationandfirms’expectedreturn.Histeachinginterestsare
infinancialderivatives,portfoliostrategyandinvestments,and
financialeconometrics.GaoearnedhisPhDandMBAfromthe
UniversityofChicago’sBoothSchoolofBusiness,andheworked
asaresearchconsultantforUBSO’ConnorQuantitativeStrate-
giesinChicago.
Co
rne
ll Un
ivers
ity Ph
oto
Co
rne
ll Un
ivers
ity Ph
oto
Co
rne
ll Un
ivers
ity Ph
oto
6 cor nell enter pr ise • fa ll 2010
Johnson and Cornell are strong brands and great, powerful names that have existed
for years. to support our school’s strategic Plan, this branding initiative has focused on updating the brand
strategy for Johnson in light of the competitive environment and changing dynamics in the Mba and executive
education marketplace.
our brand is an articulation of who we are and what we do best. It is a signal and a promise to a wide array
of audiences. by virtue of our proud connection to Cornell University, we have a strong endorser brand which
is embraced wholeheartedly in our new brand strategy. In the Johnson master brand, however, which has not
been well-defined, we saw an opportunity to differentiate ourselves, while staying authentic to the experience
we provide.
the brand positioning statement, support statements, and logo were an outgrowth of extensive research
throughout a two-year timeframe, beginning with the strategic Plan. the research included the input of
thousands of students, potential students, alumni, recruiters, faculty, and staff as well as extensive market
research of the top fifteen business schools in the country.
research strategies included four quantitative studies, the most recent being a 2010 student survey with a
sample of 438 students and accepted but not-matriculated students; hundreds of interviews; and more than twelve
focus groups to develop and test positioning strategies, names logos and advertising messages. the results of this
research have culminated in the updated brand positioning, name, and logo that make up our brand.
Johnson: Our Brand
Updated Johnson brand promise Promise:Johnsongraduatesknowhowtoharnessthecollective
strengthofotherstocreateextraordinaryresults.
Support statement: Morethanever,leadersmustbecapableof
sustaining,mining,andgettingthemostoutofanorganization.
Throughcollaborativelearningandimmersioninreal-world
challenges,Johnsonstudentsgainessentialbusinessskillsplusdirect
experienceinleveragingthetalentandknowledgeofothers,yielding
moreideas,morepossibilities,morethoughtful,well-roundedsolu-
tionsand,ultimately,extraordinaryresults.
WhenemployershireaJohnsongraduate,theygetmorethan
oneperson.Theygetthestrengthofmany.
Updated Johnson logo Weareanamedinstitution—theSamuelCurtisJohnsonGraduate
SchoolofManagementatCornellUniversity.Thishasnotandwill
notchange.AndwhilewestillusetheCornellUniversityinsignia
andtheCornellUniversitynameinthenewlogo,justasbefore,
wehavegiventhe“Johnson”namemoreprominenceasafirststep
towardenhancingnameawarenessandrecognition.Thecampaign
pieceontheoppositepageshowsoffournewlogoandhowit
integrateswithourcurrentadvertising.
How you can help make Johnson truly our brandYoucanhelpbymakinganefforttounderstandthebrandposition-
inganditssupportstatements,andadoptingitaspartofyourcom-
municationswithotherswhentalkingaboutyourexperienceshere
atJohnson.Wehavecreatedacampaignmicro-siteatwww.johnson.
cornell.edu/brandthatcontainsinformationonthedevelopment
andimplementationofthenewbrandstrategy.Visitthebrandsite
withanyquestionsyoumayhave.
I have a voice.
We speak as one.
Students, alumni, faculty, staff, administration — together, we embody the Johnson brand. Our actions and attitudes make the brand ring true for everyone who interacts with the school.
With the recent repositioning of our brand and the unveiling of the new Johnson logo, it’s important that we all speak about Johnson with a united voice, so the brand can become even stronger. To watch informational videos about the repositioning, learn about the reasons behind it, and see examples of how the brand lives in the marketplace, visit johnson.cornell.edu/brand.
8 cor nell enter pr ise • fa ll 2010
Sorkin discusses Too Big to Fail New York Timesfinancereporterandcolumnist,
AndrewRossSorkin’99,aleadinginterpreterof
WallStreetandcorporateAmericaandauthorof
theaward-winningbest-sellerToo Big to Fail: The
Inside Story of How Wall Street and Washington
Fought to Save the Financial System — and Them-
selves(2009),returnedtocampusOct.20fora
booksigning,todeliverapubliclecture,andto
participateinapaneldiscussionmoderatedbyDean
JoeThomas.OtherpanelistsincludedProfessorand
JohnsonDeanEmeritusRobertSwieringa,Eswar
Prasad,theTolaniSeniorProfessorofTradePolicy;
andSharonTennyson,associateprofessorofpolicy
analysisandmanagement.Whenaskedaboutthemainlessons
learnedfromtheeconomicdebaclehecoversinhisbook,Sorkin
responded:“Weneedtohaveanadultconversationaboutour
costsandrevenues.It’saconversationnoonewantstohave.“
Swieringaagreed,saying:“Itdoesn’tlooklikewehavethepoliti-
calresolvetodealwiththeseissues.”Sorkin’sbookisthefirst
true,behind-the-scenes,moment-by-momentaccountofhowthe
financialcrisisdevelopedintoaglobaltsunami.
Business RoundtableSteve Kaplan Unplugged: unveiling strategies for successBy Maria Minsker ’13
“Bigelephants”makeorbreakcompanies.
Baggingbigelephants—orhugeclientsthat
canlaunchacompany“intothestratosphere”
—isSteveKaplan’sspecialty,andhe’seager
tosharehissuccessstrategieswiththerestof
theworld.VisitingonhisBag the Elephant
UnpluggedUniversityTour,Kaplanex-
plainedwhyhebeganhisowncompany,and
sharedtechniquesforseekingoutopportuni-
tiesand“bagging”largeclients.
Atage22,hedecidedthat“beingalittle
fishinabigcompany”wasnotforhim,and
sohedecidedtostarthis
own.Asmallmarketing
companyatthetime,
BountySCAWorldwide
soldtacticalmarketing
strategieslikeproduct
samplingandcoupons.
Nowmakingover$250
millioninsaleswith
officesin14countries,
thecompanyisoneof
manythathehelped
makesuccessful.
Oneofthekeysto
hissuccess,Kaplansays,
isseekingoutopportunity.Whiletrying
tolandarelativelysmalldealwithProctor
&Gamble,Kaplancameacrosssomething
unexpected.“Iwas
meetingwithaguyto
talkaboutpotentially
workingonthePantene
brand,butwhenwemet
Icouldsensehewas
havingahorribleday.
Hewasworkingona
nationwidecampaign
andneededtoimport80
millionsilkbagsfrom
China,andcouldn’t
evenget30,000ofthem
pastcustomsinLos
Angeles,”heexplained.
Ineffortstoearnthepotentialclient’strust,
Kaplandecidedto“seewhathecoulddo.”
Kaplan’scompanyatthetimewasnota
bigimporter,shippingmostlybetweenNew
YorkCityandSyracuse.Nevertheless,after
“afewphonecalls,”hewasabletoarrange
forsomeonetogoandpickupthe30,000
bagsinLosAngeles.WhenKaplancalled
hiscontactatP&Gwithgoodnewsabout
hisbags,hegotthefastestcallbackhehad
received:“Thisguycalledmebackwithin
10seconds,”hesaid,“andtoldmetosend
himaninvoiceforasmuchasIwanted.But
allIwantedwasashotatthe80-million-bag
campaign.Andhegaveittome.”
Kaplanreflectsthathecouldhavejust
attendedthemeeting,pitchedhisoriginal
ideasforthesmallcampaignhewasinter-
estedin,andwalkedaway.Noticinganop-
portunityforgreatersuccess,takingarisk,
and“comingthrough”madethedifference.
WithP&Gbehindhim,Kaplansayshefelt
likehe“wascapableofdoinganything.”
Despitethecurrenteconomicclimate,
Kaplanstillfirmlybelievesopportunityis
everywhere—youjusthavetolookforit.
Steve Kaplan
Andrew Ross Sorkin ’99
9w w w.johnson.cor nell .edu
Professor Stuart Hart
Trickle up, tax, and get over itTheeconomicdownturnand
proposedsolutionshaveplaced
severalofJohnson’sowninthe
mediaspotlight.In“Trickle
Up!”(The New York Times,
“Green”blog,Aug.3),Profes-
sor Stuart Hartsuggeststhat
economicsolutionsmustbegin
atthebaseofthepyramid.
Hartarguesthatworkingin
low-incomemarketssuchasIndiaandChinacanforceinnovators
andentrepreneurstodrivecomplexityandcostfromtheirproducts
andthebusinessmodelstheycreatetosellthem.Hesaysthatonce
thesenewsolutionsaretestedandproveninthepoorestcommuni-
ties,thetheorygoes,manycan“trickleup”tothedevelopedworld,
wherefeaturescanbeaddedformoreaffluentmarkets.
“USeconomistsaysrisingexecutivepaygaphasspawned
expenditurecascadesthroughouttheeconomy,”anarticlepostedby
Ireland’sleadingeconomicpublication(FinFactsIreland,Aug.24,
2010),citesProfessor Robert Frank’sargumentthatinorderto
assistthemiddleclassandhelpthemmakeendsmeet,theexpen-
diturecascadescausedbytherisingexecutivepaygap—starting
withincreasedspendingonhousing—mustbeclosed,andthat
consumptiontaxesratherthanarbitrarylimitswouldbeamore
effectivemechanismtoclosethepaygap.“You’reRich.GetOver
it”(Newsweek,Sept.16)citesFrank’sresearchonhowpeopleassess
theirwell-being—“notsomuchonhowmuchtheymakeand
consume,butonhowmuchtheymakeandconsumecomparedwith
theirneighbors.”
The value of an MBAIn“TheNextGeneration,”thecoverfeatureinHispanic Executive
(September/October2010),MichaelJurado,MBA’11,wasoneof
fourMBAstudentsenrolledindifferentprogramswhospoketo
therelevanceofhisMBAexperienceinarichQ&A.Thestory
connectedhisbackgroundandpersonalhistoryasaHispanic
Americanandwhyhebelievesitissoimportanttogiveback.About
hischoicetoattendJohnson’sgeneralmanagementprogram,Jurado
said,“IknewIwantedtohaveadifferentexperience;Iwantedtogo
toasmallerschoolwhereIcouldreallygettoknowmyclassmates
onapersonallevel,andtheschoolwasaperfectfitforme.…[The]
generalmanagement
degree…enablesoneto
lookattheworldthrough
adifferentlensandwill
helppositionmeasaleader
regardlessofwhethermy
workisinthefor-profitor
thenot-for-profitsector.”
Whenaskedhow
hisJohnsonexperience
informedhisop/ed,“U.S.
can’taffordtowaitto
switchtocleanenergyany
longer”(Detroit Free Press,
Aug.11),SteveMaddox,MBA’10,said:“MytimeatJohnsongave
methetoolsetstoanalyzeopportunities.Iunderstandthatthecrux
ofthecarbontradeargumentisreallyabasic‘makevs.buy’decision
thatIlearnedinCoreEconomics(andlaterdrivenhomebymy
classesanddiscussionswithProfessorBenHo).IcametoJohnson
lookingforthetoolstoprove(ordisprove)whatmyguttoldmewas
therightdecision,andIgotthem.”
The MBA admissions gameWhentheadmissionsseasonrampsup,thepressreachesoutto
gleaneveryb-school’sstrategyforattractingstudents.It’sahighly
competitivegame,andonethatcanforceanobsessionwith
numbersanddataversusthedeeperreasonsthatdrivestudentsto
selecttheschoolstheydo.Thisyear,whenBusinessWeekspokewith
Johnson’sRandall Sawyer,assistantdeanofAdmissions,Financial
Aid,andInclusion(AdmissionsQ&A,BloombergBusinessWeek,
Aug.5),heoutlinedhowheandhisteamzeroinonstudentswho
arebothintellectuallycuriousandpassionateaboutJohnson,quali-
tiesheviewsasiscriticaltoastudent’slong-termsuccess.
Johnson’seffortsinattractingwomenwerecitedin“33%Female
StudentsinB-SchoolsAbroad,”(Economic Times of London,Sept.
19),notingthatJohnson“includespartnershipstoreachoutto
womenandencouragesthemtoapply.TheschoolhasaWomen’s
PowerLunchforcurrentstudentstonetworkwitheachother,
femalefaculty,andprominentalumnae,andpartnerswiththe
JohnsonSchoolWomen’sManagementCouncilandothergraduate
professionalprogrammes.”
Newsmakers
10 cor nell enter pr ise • fa ll 2010
Networking in a digital ageHowever high-tech your tools, remember: your network is peopleBy Irene Kim
RememberBobfromAccountsPayableatyourfirstjoboutof
school?Niceguy,butyoudidn’thavemuchincommon,andgot
tiredofupdatinghisphonenumberinyourlittleblackbook.Soyou
losttouch.Well,recentlyyourememberedBob,andlookedhimup
onFacebookorLinkedIn.Turnsouthe’dworkedhiswayupinthe
IRSandhadbecomedeanofaprominentbusinessschool.Soyou
droppedhimaline,andreconnected.
That’sthepowerofdigitalnetworking.Whereasinthepast
youmighthavelosttouchwithBobforever—yourlittleblack
bookcantakeonlysomuchLiquidPaper,anditwouldweighfifty
poundsifyoukepteveryone’scontactinformation—younowcan
stayconnectedwitheveryoneyoulike,nomatterhowmuchyou
changejobs.
Asafirststeptoonlinenetworking,StephenCalk,seniorassociate
directorofJohnson’sCareerManagementCenter,suggestsaLinkedIn
account.Youcanbuildyournetworkfairlyeasily(mostofyour
contactsareprobablyalreadyinthedatabase),andseeyourconnec-
tions’contactandcompanyinformationandrésumé.Keepingthe
informationcurrentispainless,becauseBobupdateshisowndata.
LinkedInalsoallowsyoutoseeallyourcontacts’networks.So,
ifyouhave100connections,andeachofthemhas100connec-
tions,younowcanseethenameandcompanyinformationof
10,000people.Ofcourse,thatdoesn’tmeanyouhave10,000
friendswillingtofindyouajob.Butitdoesopenupawholenew
worldofpossibilities.
Whilethetoolsweusefornetworkingmaychange,saysCalk,
theprinciplesremainthesame.“Allnetworking,allrelationship
building,isandwillalwaysbeanalog,”saysCalk.“Technology
simplygivesusamoreefficientmechanismforkeepingtheanalog
worldwarm.”
Remember:Eachofthosenamesrepresentsanindividualwho
wantstoberespected,takenseriously,andbefriended(notjustin
theFacebookway).Anetworkisacollectionofpeople,andisonly
asgoodastheeffortyouputintocultivatingthosepeople.It’sno
coincidencethattoday’snetworkingbooksrepeatthesametenets
expoundedbyDaleCarnegie80yearsago:Listentoothers,make
themfeelimportant,thinkfromtheirperspective,andgivemore
thanyoutake.
Keepinginmindtheage-oldmaximsofnetworkingandcultivat-
ingrelationshipswithpeople,Calkoffersafewpointers:
•Keep your nose clean.Youprobablyhaven’tpostedphotosof
yourselfdoingbodyshotsduringhappyhour.Butbeawarethat
aprospectiveemployerorclientmightfindanythingaboutyou
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—politicalcommentaries,off-colorposts.Ensurethatsomeone
doingasearchonyournamewillfindasolidrésuméandinforma-
tionthatreflectswellonyou.
•Connect.CalktellsincomingMBAstudentstoselecttencon-
tactsfromhisnetwork,tosomeofwhomhewillintroducethem.
ManyJohnsonalumniareoneortwodegreesofseparationfrom
high-profileleaderssuchasWarrenBuffett,atmost;bytaking
advantageofacontact’snetwork,youcansignificantlyreducethe
distancebetweenyourselfandsomeoneyou’dliketodealwith.
•Don’t ask for a job.Don’tassumeanycontactsyoucultivatewill
createaspotforyouattheircompany“becauseyou’rebrilliant
andwenttoCornell,”saysCalk.“Theonlywayyou’regoingto
findaspotattheircompanyisifthey’reimpressedwithyouand
haveaspotalready—soyouwanttogetontheradar.”
•Ask not what your network can do for you. “Givingbegets
moregiving,”wroteKeithFerrazziinNever Eat Alone.“WhenI
calltotalktoalumniandothercontacts,Imakesuretheyknow
it’snotbecauseIwanttohoundthemforthenexttenyears,”says
Calk.“It’sbecause,ifIcanhelpthemwithanything—research
fromtheschool,brilliantinterns—Iwillmakeithappen.”
•Make your network reflect you.Sure,everyone’sheardofwiz-
ardswhocanrememberthespouses’namesof50,000contacts,
butCalkdoesn’tcounselsuchshowmanship.Noonelikesto
feellikeanotchinsomeone’sbelt.Calkhas900namesinhis
network,butpointsoutthatthelargenumberreflectshisrole
asinformationbrokeramongstudentsandalumni.Heknows
thenamesofhisfriends’dogs,butdoesn’tclaimthisintimacy
withall900contacts.Ifyou’renotinsales,yournetworkwill
probablybesmaller.
•Don’t abuse privilege.“Ifastudentasksmetointroduceherto
anequityanalyst,soIcallhimtotellhimaboutthisgreatMBA,
andhesays,‘Idon’thavethetime,’Ihavetorespectthat,”says
Calk.“Liketightropewalking,thisisasystembasedonbalance
andtrust,”wrotenetworkingmogulHarveyMackayin Dig Your
Well Before You’re Thirsty.
•Be professional. “Whenyouinvitepeopletoyournetwork,do
itpersonally,”saysCalk.“Don’tsendamassemailto500people
saying,‘Iwanttoconnecttoyou.’”
•Stay in touch.Mackayadvisesreconnectingwithoneortwocon-
tactsdaily.“Thatfeelscontrivedtome,”saysCalk.“I’dratherget
acalloutofthebluesaying,“Justsawyourcompanyonthenews
andthoughtofyou.’”Forinstance,LinkedInpublishesupdates
everytimesomeoneinyournetworkmakesachange.“That’san
idealtimetowriteashortnotetocongratulatesomeoneontheir
promotionorjobchange.”
•Use tools to gain credibility.LinkedInhasa“questions”section,
inwhichmemberscananswerquestionsthatmembersoftheir
networkareasking.“Somepeoplebecomewell-regardedintheir
fieldthisway,”saysCalk,althoughhecautionsthatthisapproach
isn’tforeveryone.“Thepeoplewhodothattendtobeserial
entrepreneurs,orexpertsinafield.”
•Be easy to find. “Somepeopledon’tgiveouttheirnewemail
addressbecausetheydon’twanttobefound,”saysCalk.“That’s
thebiggestprofessionalmistakeyoucanmake.Weallhave
peoplewe’drathernothearfrom.Butthatdoesn’thappen
much;youcanalwaysrefusepolitely,andthebenefitoffsetting
thedangerishuge.”
•Don’t overlook anyone.“Everysocialinteractionisanoppor-
tunitytonetwork,”says
Calk.“Iftheprotonis
active,itbumpsintomore
things.Somecouldbe
painful,butsomecould
turnouttobegreat.”
Mackaytellsthestory
ofsittinginanairplane,
politelyrebuffinghis
neighbor’srepeated
attemptsatconversation,
becausehewasbusy.
Afterhedisembarked,he
realizedhe’djustblown
offDianeSawyer.
Favorite Networking BooksStephenCalk,SeniorAssociateDirectorofJohnson’s
CareerManagementCenter,recommendsthefollowing
booksforhoningyournetworkingsenseandskills.
Dig Your Well Before You’re Thirsty
byHarveyMackay
Never Eat Alone byKeithFerrazzi
How to Win Friends and Influence People
byDaleCarnegie
12 cor nell enter pr ise • fa ll 2010
V A N T A G E
Income inequality: too big to ignoreBy Robert H. Frank
Peopleoftenrememberthepastwithexaggeratedfondness.
Sometimes,however,importantaspectsoflifereallywerebetterin
theolddays.
DuringthethreedecadesafterWorldWarII,forexample,
incomesintheUnitedStatesroserapidlyandataboutthesame
rate—almost3percentayear—forpeopleatallincomelevels.
Americahadaneconomicallyvibrantmiddleclass.Roadsand
bridgeswerewellmaintained,andimpressivenewinfrastructure
wasbeingbuilt.Peoplewereoptimistic.
Bycontrast,duringthelastthreedecadestheeconomyhasgrown
muchmoreslowly,andourinfrastructurehasfalleninto
gravedisrepair.Mosttroubling,allsignificantincome
growthhasbeenconcentratedatthetopofthescale.The
shareoftotalincomegoingtothetop1percentofearners,
whichstoodat8.9percentin1976,roseto23.5percent
by2007,butduringthesameperiod,theaverageinflation-adjusted
hourlywagedeclinedbymorethan7percent.
Yetmanyeconomistsarereluctanttoconfrontrisingincome
inequalitydirectly,sayingthatwhetherthistrendisgoodorbad
requiresavaluejudgmentthatisbestlefttophilosophers.Butthat
disclaimerringshollow.Economics,afterall,wasfoundedbymoral
philosophers,andlinksbetweenthedisciplinesremainstrong.So
economistsarewellpositionedtoaddressthisquestion,andthe
answerisveryclear.
AdamSmith,thefatherofmoderneconomics,wasaprofessor
ofmoralphilosophyattheUniversityofGlasgow.Hisfirstbook,
“ATheoryofMoralSentiments,”waspublishedmorethan25years
beforehiscelebrated“WealthofNations,”whichwasitselfpeppered
withtrenchantmoralanalysis.
Somemoralphilosophersaddressinequalitybyinvoking
principlesofjusticeandfairness.Butbecausetheyhavebeenunable
toforgebroadagreementaboutwhattheseabstractprinciplesmean
inpractice,they’vemadelittleprogress.Themorepragmaticcost-
benefitapproachfavoredbySmithhasprovedmorefruitful,forit
turnsoutthatrisinginequalityhascreatedenormouslossesandfew
gains,evenforitsostensiblebeneficiaries.
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Robert H. Frank, Henrietta Johnson Louis Professor of Management and professor of economics at Johnson, is a monthly contributor to the “Eco-nomic Scene” column in The New York Times. He has served as a Peace Corps volunteer in rural Nepal, chief economist for the Civil Aeronautics Board, fellow at the Center for Ad-vanced Study in the Behavioral Sci-ences, and was Professor of Ameri-can Civilization at l’Ecole des Hautes
Etudes en Sciences Sociales in Paris. Frank’s books include Choosing the Right Pond, Passions within Reason, Microeconomics and Behavior, Luxury Fever, What Price the Moral High Ground?, The Economic Naturalist, and The Economic Naturalist’s Field Guide. A book he co-authored with Philip Cook, The Winner-Take-All Society, was named a Notable Book of the Year by The New York Times, and was included in Business Week’s list of the ten best books for 1995.
Recentresearchonpsychologicalwell-beinghastaughtusthat
beyondacertainpoint,across-the-boardspendingincreasesoftendo
littlemorethanraisethebarforwhatisconsideredenough.ACEO
maythinkheneedsa30,000-square-footmansion,forexample,just
becauseeachofhispeershasone.Althoughtheymightallbejustas
happyinmoremodestdwellings,fewwouldbewillingtodownsize
ontheirown.
Peopledonotexistinasocialvacuum.Communitynormsdefine
clearexpectationsaboutwhatpeopleshouldspendoninterview
suitsandbirthdayparties.Risinginequalityhasthusspawneda
multitudeof“expenditurecascades,”whosefirststepisincreased
spendingbytopearners.
Therichhavebeenspendingmoresimplybecausetheyhaveso
muchextramoney.Theirspendingshiftstheframeofreferencethat
shapesthedemandsofthosejustbelowthem,whotravelinoverlap-
pingsocialcircles.Sothissecondgroup,too,spendsmore,which
shiftstheframeofreferenceforthegroupjustbelowit,andsoon,
allthewaydowntheincomeladder.Thesecascadeshavemadeit
substantiallymoreexpensiveformiddle-classfamiliestoachieve
basicfinancialgoals.
Inarecentworkingpaperbasedoncensusdataforthe100
mostpopulouscountiesintheUnitedStates,AdamSethLevine(a
postdoctoralresearcherinpoliticalscienceatVanderbiltUniversity),
OegeDijk(aneconomicsPhDstudentattheEuropeanUniversity
Institute)andIfoundthatthecountieswhereincomeinequality
grewfastestalsoshowedthebiggestincreasesinsymptomsof
financialdistress.
Forexample,evenaftercontrollingforotherfactors,thesecoun-
tieshadthelargestincreasesinbankruptcyfilings.
Divorceratesareanotherreliableindicatoroffinancialdistress,
asmarriagecounselorsreportthatahighproportionofcouplesthey
seeareexperiencingsignificantfinancialproblems.Thecounties
withthebiggestincreasesininequalityalsoreportedthelargest
increasesindivorcerates.
Anotherfootprintoffinancialdistressislongcommutetimes,
becausefamilieswhoareshortoncashoftentrytomakeendsmeet
bymovingtowherehousingischeaper—inmanycases,farther
fromwork.Thecountieswherelongcommutetimeshadgrownthe
mostwereagainthosewiththelargestincreasesininequality.
Themiddle-classsqueezehasalsoreducedvoters’willingness
tosupportevenbasicpublicservices.Richandpooralikeendure
crumblingroads,weakbridges,anunreliablerailsystem,and
cargocontainersthatenterourportswithoutscrutiny.Andmany
Americansliveintheshadowofpoorlymaintaineddamsthatcould
collapseatanymoment.
Economistswhosayweshouldrelegatequestionsaboutinequal-
itytophilosophersoftenadvocatepolicies,liketaxcutsforthe
wealthy,thatincreaseinequalitysubstantially.Thatgreaterinequal-
itycausesrealharmisbeyonddoubt.
Butarethereoffsettingbenefits?
Thereisnopersuasiveevidencethatgreaterinequalitybolsters
economicgrowthorenhancesanyone’swell-being.Yes,therichcan
nowbuybiggermansionsandhostmoreexpensiveparties.Butthis
appearstohavemadethemnohappier.Andinourwinner-take-all
economy,oneeffectofthegrowinginequalityhasbeentolure
ourmosttalentedgraduatestothelargelyunproductivechasefor
financialbonanzasonWallStreet.
Inshort,theeconomist’scost-benefitapproach—itselflongan
importantarrowinthemoralphilosopher’squiver—hasmuchto
sayabouttheeffectsofrisinginequality.Weneednotreachagree-
mentonallphilosophicalprinciplesoffairnesstorecognizethat
ithasimposedconsiderableharmacrosstheincomescalewithout
generatingsignificantoffsettingbenefits.
Noonedarestoarguethatrisinginequalityisrequiredinthe
nameoffairness.Somaybeweshouldjustagreethatit’sabadthing
—andtrytodosomethingaboutit.
FromThe New York Times,EconomicScene,October16,2010.
©TheNewYorkTimes.Allrightsreserved.Usedbypermissionandprotectedby
theCopyrightLawsoftheUnitedStates.Theprinting,copying,redistribution,or
retransmissionoftheMaterialwithoutexpresswrittenpermissionisprohibited.
“ Rising inequality has created enormous losses and few gains, even for its ostensible beneficiaries.”
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S T A R T
The Cornell Venture ChallengeFinding and supporting tomorrow’s most promising new enterprisesBy Irene Kim
Itallstartedwithdrinks.
Backinthefallof2008,BenjaminRollins,MBA’09,was
helpingsetuphappy-hournetworkingeventsbetweenJohnsonand
SchoolofEngineeringstudents.Hemetbiomedicalengineering
studentBrianLawrence,PhD’11,whohadhelpedsetuptheevents
onhisend.Rollinswaslookingforatechnologytolaunchabusi-
ness;Lawrencehadapromisingtechnology.
“IhadgonetoCornelltofindatechnologythatwasboth
interestingfromanintellectual-propertystandpointandthathad
bigmarketpotential,”saysRollins.HewasintriguedbyLawrence’s
proposition,alow-costtypeofwoundcareforpatientsrecovering
fromophthalmicsurgeryortraumaticeyeinjury.“Let’sstartabusi-
ness,”RollinssaidtoLawrence;BombyxTechnologieswasborn.
Sincethen,BombyxTechnologieshasreceivedgrantsfromthe
DepartmentofDefenseandtheNationalScienceFoundationtotal-
ingmorethan$1million,aswellasseriousinterestfromindustry
andtheinvestmentcommunity.Gettingtothispointhasn’tbeen
easy:Rollinspackeduphisfamilyandmovedbackinwithhis
parentstobootstrapthecompany.
WhatmadeRollinsdecidetheventurewasworththesacrifice?
Inthespringof2009,heandLawrencesubmittedtheirfledgling
businessplantotheCornellVentureChallenge(CVC),anannual
business-plancompetitionrunbyJohnson’sventure-capitalfund,
BRVentureFund(BRV).Aftermakingtothefinalcut,Bombyx
Technologiestookfirstprize.
Prize money: $20,000. Winning the CVC: priceless.RollinsandLawrencewereawarded$20,000forwinning($10,000
fromBRV,matchedwith$10,000fromtheCornellCenterfor
TechnologyEnterpriseandCommercialization,sinceBombyxis
basedonaCornelltechnology).Buttherealprize,saysRollins,was
therecognitionbyBRV—ahighlyrespectedventure-capitalfund,
andtheonlyonecompletelyrunbystudents.“WhatBRVdidforus
wastogiveusthevalidation,theconfirmationthatwecouldreally
runthisbusiness,”hesays.
EvanLuxonofJohnsHopkins,whosefirm,CorticalConcepts,
wontheCVCinApril2010,hassimilarhighpraiseforBRV.“By
winningthechallenge,wewereaffordedwithimmediatevalidationin
discussionswithpotentialinvestorsandlicensees,”saysLuxon.“Given
thereputationoftheJohnsonSchoolanditsalumni,thewinhas
allowedustomeetpeoplewemaynothavehadaccesstopreviously,
andtohavehigher-leveldiscussionsthanwewouldhaveotherwise.”
More than good ideasEachwinter,theCVCinvites
aspiringentrepreneurs,including
Cornell-affiliatedindividualsand
currentstudentsandfacultyatother
universities,tosubmittheirbusiness
ideas,andreceivesdozensofshort
executivesummariesofpromising
newventures—fromonlineshopping
servicestorainwater-collectiondevices
forruralareas.TheBRVmanagers,
second-yearMBAstudentsselected
bythepreviousyear’smanagers,carefullyreviewallsubmissionsand
chooseuptofivetoproceedtothefinalround.Thesefinalistssubmit
full-fledgedbusinessplansandpresenttheirideastotheBRVmanag-
ersandapanelofveteranventurecapitalistsforfeedbackandjudging
duringtheuniversity-wideEntrepreneurship@CornellweekinApril.
Thecompetition,formerlyknownastheBusinessIdeaCom-
petition,changeditsnamein2008-09toreflectitsemphasison
solid,viableventures.“Thereasoningwastoshiftthefocusfrom
The 2010-2011 BR Venture Fund managers (all Class of 2011) and faculty advi-sors (standing, left to right): Marlon Nichols, Brent Goldberg, Anand Sundaram, Sung-Hoon Ahn (seated) Professor David BenDaniel, Kelley Dwyer, Henry Parry-Okeden, Weston Cashman, and Professor Steven Gal.
“ What BRV did for us was to give us the validation, the confirmation that we could really run this business.”
— Benjamin Rollins, MBA ’09, co-founder and CEO, Bombyx Technologies
Danny Hest, MBA ’10, COO of BRV in 2009-10
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justpresentingagoodbusinessideatofindingreal,high-growth,
venture-fundablestartupcompanies,”saysDannyHest,MBA’10,
whoservedasCOOofBRVin2009-10.
Making VC connectionsArguablytheCVC’smostvaluablebenefit,competitorsandBRV
managersagree,isthefinalround,inwhichapanelofprofessional
venturecapitalistscritiquesfinalists’businessplans.“Oneofthe
primarybenefitsofcompetingwashearingfeedbackfromestablished
venturecapitalists,”saysLuxon.“Notonlywerewechallengedto
defendourtechnologyandbusinessmodelduringthepresentation,
buttheone-on-onesessionsafterwardallowedthejudgestogiveus
incrediblyrelevantadvice.”AsHestpointsout,inadditiontolearning
fromthecritique,thefinalistshavetheopportunitytostartadialogue
withtheVCsforpotentialfunding.
TheVCs,liketheBRVmanag-
ers,arelookingforsolidbusiness
propositions.CorticalConcepts,
developerofadeviceforuseinspinal
surgerythatincreasesthestrength
offixationinosteoporoticbone,
presentedacompellingcase,says
MarlonNichols,BRV’spresidentand
COOfor2010-2011.“Ingeneral,
theywereahigh-performingteam
thatsuccessfullyaddressedthetypicalventure-investorconcerns
ofviability,strengthofmanagementteam,intellectualproperty,
realisticfinancialprojections,graspofthemarketpotential,and
feedbackfrompotentialcustomers.”
Thewholeprocessofscreeningthepromisingcontestentries,and
thenwatchingselectedentrepreneurspitchtheirideastothepanel,
wasaremarkablelearningexperience,saysHest.“Everybusiness
presentsadifferentsetofchallenges,andit’sagreatexercisetothink
throughwhatcanhelpastartupbesuccessfulinaparticularmarket.”
Replicating the VC experienceBRVentureFund,annualsponsoroftheCVC,isuniqueinthelevel
ofresponsibilityitconfersonitsstudentmanagers.“Moststudent-
runfundsaresetupsuchthatthestudentsmakerecommendations
toanoutsideboardofalumni,faculty,orothers,whomakethe
investmentdecisions,”saysStevenGal,associateprofessorofclinical
entrepreneurshipandoneofthefacultyadvisorsfortheBRVenture
Fund.“AtBRV,thestudentsmakeallthestaffingandinvestment
decisions,actingaspartnersofthefund.”
Nicholsaddsthatsomebusinessschoolshaveventurecapital
fundsinwhichstudentsperformonlyduediligenceforpossible
investments,orareallowedtoparticipateinonlylimitedways.
GalexplainsthattheBRVexperiencetrulymirrorstheactual
environmentinwhichventurecapitalistswork.“TheBRVfund
managersgeneratedealflow,conductduediligence,makeinvest-
ments,andmanageaportfolio,”hesays.“Theonlydifferenceis
thatthestudentsdon’tprofitmonetarilyfromthedeals’success.
AddsNichols:“Wehavetheopportunitytolearnallaspectsofthe
venturebusinessbydoingiteveryday.”
Basicallyoperatingasrealventurecapitalists—albeitwithout
pay—BRVmanagersareabletobuildimportantrelationshipsin
theventure-capitalandentrepreneurialcommunities,saysNichols.
“SuchrelationshipsarecovetedintheVCspace.”Andplentyof
otherpeopletakenoticeoftheBRV,aswell.Duringhistenure,says
Hest,BRVmanagersreceivednumerousrequestsforinformation
fromotherschoolsabouthowthefundisrun.
Asahighlightattheendoftheacademicyear,theCVCaffords
theBRVfundmanagersaninvaluableopportunitytoseetheir
investmentdecisionsevaluatedbytopventurecapitalists.“The
singlemostvaluablelessoncamewhenweparticipatedinthejudges’
deliberationsession,”saysNichols.“Thiswasacrashcoursein
howtoevaluateentrepreneursandtheirideas.Today,aswereview
potentialinvestments,wepracticemanyoftheprinciplesthatwe
learnedinthedeliberationroomonthatday.”
(clockwise from left) Bombyx Technologies co-founders Ben Rollins, MBA ’09, CEO, and Brian Lawrence, PhD ’11, CTO, in their clean suits; Benjamin Rollins; Bombyx Technologies’ product: a transparent bandage that rapidly heals eye wounds. The bandage, made of material that is completely unique, patented, and inexpensive to produce, resembles a contact lens. When placed on a dam-aged eye, it relieves pain and protects from further damage. Bombyx took first prize at the 2009 Cornell Venture Challenge.
Marlon Nichols, BRV’s presi-dent and COO for 2010-2011
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Making green while the sun shinesGaye Tomlinson, MBA ’05:CMO, Vaha Solar and Green Consulting
Asoilreservesshrink,environmentalconcernsgrow,protestsflyover
hydraulicfracturing,andelectricitycostsskyrocket,GayeTomlinson
isbettingthatthetimeisfinallyrightforrenewable-energysolutions.
Sheandherhusband,Geoffrey—aformerWallStreetanalyst
turnedgreen-technologiesconsultant—launchedVahaSolarand
GreenConsultinginMarch2008tohelpconsumersimprovetheir
energyefficiency.BasedinsunnyAnaheim(averageannualrainfall
below14inches),thecompanyfocusesonsolar-energysolutions.
Ithelpsthatconsumersrecognizetheneedforenergyefficiency,
butTomlinsonfoundthatmanysolutionsweretoocostlyformany.
Evenaftergenerouseconomicincentivesfromstategovernment,
solarsystemsremainedoutofthereachofmostwallets.“Theinitial
capitaloutlaystillturnedclientsoff—manywouldratherspend
theirmoneyongranitecountertops,”saysTomlinson.
Creativebusinessthinkingwasinorder.“Irealizedthatthe
peoplewhomostneedsolarpowerarelow-incomehouseholdswho
payhighbillsforelectricity,”saysTomlinson.Sheengineeredapart-
Change agentDaniela Peiser, MBA ’00:Founder and managing director, Bold Aspirations
In2007,whenDanielaPeisermentionedtohercolleaguesatDeloitte
Consultingthatshewasthinkingabouttakingasix-monthvacation
inhernativeSouthAfrica,herleadershipofferedtoarrangeforherto
workoutofthecompany’sCapeTownoffice.“Theyfeltthatleavesof
absenceoftenresultedinpeoplenotreturning,”saysPeiser.
Sixmonthswentby,thentwelve.Notreadytogobacktothe
UnitedStates,PeisertransferredtoDeloitteConsulting’sSouth
Africanarm,headinguptheHumanCapitalPracticeinCapeTown.
Peiserspentthenextyeargaining
localexperienceinherchosenfield
ofchangemanagementandbusiness
transformation,becomingaccli-
matedtotheSouthAfricanbusiness
environment,andstrengtheningher
SouthAfricannetwork.In2009,she
wasreadytostrikeoutonherown,
launchingherconsultingfirmin
SouthAfricaandtheUnitedStates.
nershipwithHabitatforHuman-
ityandAnaheimPublicUtilities
wherebyVahadesignedthesystems,
Habitatvolunteersinstalledthem,
andtheutilitypaidthebill.The
partnershipslashedthemarketprice
forthesolarsystemsfrom$14,000
to$500perhome;hundredsof
homeownersboughtin.
Vahaalsotargetsbusinessesand
otherorganizations.Solarsystemscansignificantlyaffectcommer-
cialbuildings’overallenvironmentalimpact,andgenerateareturn
oninvestmentof15to25percentafteraccountingforlocalrebates,
taxcredits,andanaccelerateddepreciationscheduleonsolar
systems.VahahasinstalledsystemsatVonssupermarketchain’s
creditunionandAnaheim’sUnitarianUniversalistChurch.
TomlinsoncreditsJohnsonwithteachingherthreecrucialstartup
skills:theabilitytorecognizetheopportunity,theknow-howto
differentiatehercompanyinatougheconomyandcompetitive
environment,andvitalnegotiationskills.“Idon’tthinkIwouldhave
startedthisventureifithadn’tbeenformyMBAdegree,”shesays.
“OnceIcameupwiththenameBoldAspirations[www.boldaspira-
tions.com],Iknewitwasperfect,”saysPeiser.“Itimpliespositivity,
strength,andgrowthorientation—exactlywhatIwantedtoofferclients.”
Peiserassistsfirmswiththe“people”aspectsofbusinesstransformation
anddrivingsustainablechange.Inadditiontoconsulting,shealsoprovides
coachingservices.“Iwantedtoleveragemyexperiencetoworkwithpeople
one-on-oneonbothprofessionalandpersonalgrowth,”shesays.
TheworkenvironmentinSouthAfricadifferssignificantlyfrom
thatoftheUnitedStates.Foronething,thebusinesscultureismuch
moredrivenbyrelationships,saysPeiser.“Thishasmadeitabitmore
difficultforme,asIhavenotbeenhereforlong,”sheadds.“However,
onceyouhavesomesuccess,itleadstoalotmoreopportunity.”
Andthecountryoffersgreatpotentialtoentrepreneurs.“SouthAf-
ricaisarisingeconomywithunlimitedpossibilitiesforgrowth,”Peiser
says.“Ifindittobeveryentrepreneur-friendly.”Largecompanies,she
adds,arefrequentlyopentoengagingwithsmallerbusinesses.
Itdoesn’thurt,either,thatshehasnineyears’experiencework-
ingforDeloitteintheUnitedStates,India,andSouthAfrica.“My
internationalexperienceandeducationareesteemedhere,asIbringa
uniqueandoftenmuchmoreglobalperspective,”Peisersays.
– Irene Kim
Startup Snapshots
Gaye and Geoffrey Tomlinson
Daniela Peiser
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The hidden cost of 9/11More lives were lost, as Americans chose driving over flying By Robert Preer
InthemonthsaftertheterroristattacksofSeptember11,2001,
Americansshunnedairportsandinstead,tooktothenation’s
highway—presumablyonthebeliefthatvehiculartravelwasasafer
option.Yetwhatseemedabetterbetendedupcostingmorelives,
becausetravelersshiftedtoamoredangerousmodeoftransporta-
tion,accordingtoresearchbyJohnsonprofessorofmarketingand
economicsVrindaKadiyali.
“Aftercontrollingforobservableandunobservablefactorsthat
influencefatalities,weestimatethatasmanyas2,300liveswere
lost,becauseoftravelers’responseto9/11,”writeKadiyaliandher
co-authors,GarrickBlalockandDanielH.SimonofCornell’s
DysonSchoolofAppliedEconomicsandManagement,in“Driving
FatalitiesAfter9/11:AHiddenCostofTerrorism,”publishedin
Applied Economics,Vol.41,Issue14,2009.“Thesedeathsarea
hiddencostofthe9/11attacks.”
Travelersappeartohaveavoidedflyingnotonlybecausethey
thoughtitwassaferbutalsobecausetheywantedtoavoiddelays
andhasslesassociatedwithincreasedairportsecurity,accordingto
theresearchers.
“Theseextrasecuritymeasuresareimposedtotellpeoplethatit
issafertofly,”Kadiyalisays.“But,becauseofthosemeasures,fewer
peoplechoosetofly,andwhentheydriveinsteadofflying,more
peopledieontheroad.”
Theresearchersanalyzeddataonallmotorvehiclefatalitiesin
theU.S.between1994and2003.Highwaydeathsincreasedsig-
nificantlyafter9/11,theresearchersfound.Toisolatetheso-called
“9/11effect”theresearchersusedstatisticalanalysistocontrolfor
variationsinairfaresandgeneraleconomicconditions.
Theyalsocompareddataonfatalitiesinvolvingcommercial
vehicles—primarilytruckstransportingcargo—andnon-com-
mercialvehicles,suchaspassengercars.Ifa9/11effectdidexist,
therewouldbehigherdeathratesfornon-commercialvehicles,since
commercialvehicleswouldbeontheroad,regardlessofterrorism
fears,theresearchershypothesized.Infact,theresearchersfound
thatfatalitiesinvolvingcommercialvehiclesdidnotincreaseafter
9/11,whiledeathsinvolvingnon-commercialvehiclesspiked.
Theyalsoidentifiedseveraladditionalsignsofa9/11effect.Out-
of-statefatalitiesincreasedmorethanin-statefatalities—evidence
thattravelerssubstitutedhighwayforairtravel.Andfatalitieswent
upmostintheNortheast,wheretypicaltraveldistancesareshorter
anddrivingisanattractivealternativetoflying.
Also,theincreaseinautodeathsweakened
overtime,withfatalitiesreturningtopre-9/11levels
byOctober2003.Accordingtotheresearchers,this
probablyhappenedbecausefearofflyinglessened,and
travelersadjustedtoairportsecuritymeasures.
Butinthetwoyearsthe9/11effectheldsway,
morethan2,000peoplediedonthenation’shighways,
accordingtoKadiyali.
“Whenwedidthecalculationandfound
thenumber,myheartsank,”shesays.“Lookathow
imperfectlywemakedecisionsandwhatthecostcan
be,whenweimproperlyassessrisk.”
“ Because of extra security measures, fewer people choose to fly, and when they drive instead of flying, more people die on the road.”
– Professor Vrinda Kadiyali
Co
rne
ll Un
ivers
ity Ph
oto
gra
ph
y
ThoughtLeadership
18 cor nell enter pr ise • fa ll 2010
g
T a m in
ILLUSTRATION: James Steinberg
19w w w.johnson.cor nell .edu
henPresidentBarackObamasignedtheDodd-
FrankbillonJuly21,hedeclaredthatthefinancial
regulatoryreformlawwouldempowerconsumers
andinvestors,shinealightonshadowydeals,and
endtaxpayerbailouts.
“Itprovidescertaintytoeverybody,frombankerstofarmersto
businessownerstoconsumers,”headded.
Whetherthelawwillcuretheillsthatcausedtheglobalfinancial
crisisisamatterofmuchdebate.ButexpertsatJohnsonagreeon
onepoint:Financialreformhasnotbroughtmuchcertainty.
“Everyfinancialcompany,everyprofessionaltradeassociation,
everylawfirm,everyaccountingfirm,everyconsultingfirmis
spendingtheirtimestudyingthisbill,”AccountingProfessorRobert
J.Swieringasays.“We’regoingtohaveinterpretationsandenabling
legislationandregulationsforthenextthree-and-a-halfyears.It
hasn’treduceduncertainty;ithasincreaseduncertainty.”
Thenewlawdealswithalmosteveryaspectofthefinancial
system,fromderivativestoexecutivepaytocredit-ratingagenciesto
consumerprotectiontohedgefunds.Butinmanyareas,thelegisla-
tionomitsspecificrules,whicharelefttoregulatorstocraft.
“Thebillisopen-ended.Itlegislatestheneedtodocertainthings
andleavesthedetailstovariousgovernmententitiestodealwitha
laterdate,”ProfessorofFinanceandEconomicsRobertA.Jarrow
says.“I’mnotapoliticalscientist,butthatseemsratherunusualto
me—Congressadoptsaframeworkbutleavesmanyofthedetails
toofficialswhoareappointedandnotelected.”
GeorgeAndrewKarolyi,professoroffinanceandglobalbusiness,
saysenactmentofthebill,whileanimportantmilestone,mainly
setsthestagefordecisionsaboutspecificregulations,aswellthe
designofnewagenciesthelawcreates.Henotesthatthecontroversy
surroundingestablishmentoftheBureauofConsumerFinancial
Protectionisapreviewofthingstocomeunderthelaw.
“WhenItalkaboutthisbillIhaveasimpletheme,”Karolyi
says:“’Ladiesandgentlemen,pleasedon’tthinkthisistheendof
anything.It’sthebeginningofeverything.’”
A crisis reactionheDodd-FrankWallStreetReformandConsumerProtec-
tionActistheU.S.government’sresponsetothefinancial
crisis,whichin2008broughttheworldfinancialsystem
tothebrinkofcollapse.Stockmarketsplunged,businessesfailed,
wealthevaporated,andmillionslosttheirjobsandhomes.President
Obamacalledforanoverhaulofthefinancialsystem,andafter
monthsofdebate,maneuvering,andcompromise,bothhousesof
Congressandthepresidentsettledonthisbill.
“Thelegislationreallyisacollectionofmanyremediestoallof
thedifferentaspectsofthefinancialcrisis,”AssociateProfessorof
FinanceYanivGrinsteinsays.
ThecrisisbeganwiththeburstingoftheU.S.housingbubble,
whicharosebecausebrokerssoldmortgagestobuyerswhocouldn’t
repaythem.Nextcameacollapseinthevalueofmortgagesecuri-
the Bear
T
W
Will Dodd-Frank put paid to more market meltdowns?
By RoBe Rt P R e e R
20 cor nell enter pr ise • fa ll 2010
ties,heldbyfinancialinstitutionsofallkinds,fromcommercial
bankstoinvestmentbankstohedgefunds.Derivativesbrought
moreplayers,includingbiginsurancecompanies,intothecascadeof
failures.Stockmarketscrashedandcreditmarketsfroze.
Foreachstepinthecrisis,theDodd-Frankbillhasananswer.To
curbdeceptivelending,aconsumerprotectionagencyisestablished.
Topreventfinancialinstitutionsfromdabblinginriskyinvestments,
limitsanddisclosurerequirementsareimposedontrading.Deriva-
tiveswillbemorecloselywatchedandregulated.Anewagencywill
monitortheentiresystem.Andwhenabigfinancialinstitution
teeters,newproceduresareinplacetowinddowntheentitybefore
ittakesothersdownwithit.
Thebillestablishesproceduresaimedatcurbingexecutivepay,
whichsomebelievewasanunderlyingcauseofthecrisisbecauseit
encouragedexcessiverisk-taking.
“Youcanlookattheabusesofthelastfiveyears,andthey’reall
inthislaw,”Swieringasays.
Looking for cracks in the foundationobertC.Hockett,aprofessoratCornellLawSchool,be-
lievesthatestablishmentofaFinancialStabilityOversight
Councilisamajorcontributionofthenewlaw.Thecouncil
includestheFederalReservechair,treasurysecretary,andheadsof
themajorfinancialregulatoryagencies.Itsjobistoidentifythreats
totheoverallsystem.
“ForthefirsttimeinAmericanregulatoryhistoryweexplicitly
embracetheideaofsystemicrisk,”Hockettsays.
TheU.S.regulatorysystemisapatchworkcreation,theresultof
agenciesbeingestablishedinresponsetocrisesovermanydecades.
Oneagencyoverseescommercialbanks,anothercommodities,
anothersecurities.Insuranceislefttothestates.
“It’salmostasiftheywereconfinedtoparticularlittlewalled-off
worlds,”Hockettsays.“Andtheywerenotpayingattentiontotwo
importantthings:first,thewaymanyfinancialinstitutionshavecome
tolookalike,andtwo,theinterconnectionsbetweentheinstitutions.”
Exactlyhowthecouncilwillfunctionremainstobeseen.Firstit
needsabudget,astaff,andworkingprocedures.
Jarrowisskeptical.“Myviewisthatit’sanotherlayerofbureau-
cracy.Wedefinitelyneedsomeonelookingforsystemicrisk,butI’m
notsurethiscouncilwilldoanything.Itwouldbeeasiertohavethe
FedandTreasuryconsultwitheachother.”
Karolyialsohasdoubts.“Whetherthecouncilwillseriouslymonitor,
andwhetheritwillhavetheresourcestodoso,areverybigquestions.”
When big institutions failn2008,whenthenation’sbiggestfinancialinstitutionswere
onthebrinkofinsolvency,thesceneinWashingtonappeared
chaotic—topofficialsscurryingatoddhourstohastilycalled
meetings.Someofthedecisionsseemedarbitrary:rescuesforAIG
andBearStearns,butnolifelineforLehmanBrothers.
Dodd-Frankestablishesprocedurestobefollowedwhenbig
financialinstitutionsgetintotrouble.TheFDIC,inconsultation
withtheFed,isauthorizedtotakecontroloffailinginstitutions
andwindthemdowninmuchthesamewayitdoeswithfaltering
commercialbanks.
“We’vehadthissystemsincethe1930swithcommercialbanks,
preciselybecauseweknowhowchaoticbankrunsandbankfailures
canbe,”Hockettsays.“Thelawextendsthesystemtootherkindsof
financialinstitutions.”
Jarrowseesthisasastepforward.“It’s
inadditiontothebankruptcyprocess,
whichcantakemuchlonger.Havingthe
FDICgoinandcontroltheliquidation
processtomaintainthehealthofthe
financialsystemisagoodthing.”
Thereformbillalsoextendsfederal
oversighttoinsurancecompanies,which
arenowregulatedbythestates.Anew
agencywithintheTreasuryDepartment,
theFederalInsuranceOffice,willmonitor
biginsurersandworkwithotherregulators
tosuperviseinsurancecompaniesthat
falterandthreatenthesystem.
RI
“We’re going to have
interpretations and
enabling legislation and
regulations for the next
three-and-a-half years.
Dodd-Frank hasn’t reduced uncertainty; it
has increased uncertainty.”
– P Rof e s soR RoBe Rt J . sw i e R i nga
T A M I N G
the bear
21w w w.johnson.cor nell .edu
Curbing risky behavior ntheyearsleadinguptothecrashof2008,asignaturefeature
ofthefinancialworldwastheproliferationofnew,exoticinstru-
ments,manyofthemlightlyregulated.TheDodd-Frankbill
seekstoclampcontrolsonthesefinancialinnovations.
ThelawgivestheCommodityFuturesTradingCommission
moreoversightoverderivatives,whichwillbebroughtontoregu-
latedexchanges.Hedgefundadviserswillhavetoregisterandreport
tofederalagencies.
“Morethingsarebeingbroughtundertheregulatoryumbrella,”
Hockettsays.
Alsoinlineforclosercontrolarecommercialbanks,which,with
repealoftheGlass-SteagallActin1999,wereallowedtotradeinsecuri-
ties.Dodd-Frankdoesn’tprohibitsuchtradesbutitdoessetlimits.
Banksthatwanttodabbleinsecuritiesmust
holdextracapital,complywithconflict-of-interest
rules,andlimittheamountsoftransactions.These
restrictions,proposedbyformerFedChairmanPaul
Volcker,havebecomeknownasthe“Volckerrule.”
“Onewaytothinkofitisasapartialreturn,
withoutgoingthewholeway,inthedirectionof
Glass-Steagall,”Hockettsays.
Regulation in a roundabout way
hefinancialreformbilltakesaback-doorap-
proachtosomethings.Insteadofimposing
strictrulesmandatingbehaviors,itcreates
conditionsthatmakecertainoutcomesmorelikely.
Executivecompensationisoneexample.
Thelawestablishestheprincipleof“sayonpay.”
Shareholdersofpubliclytradedfirmsmustbegiventheopportunity
tovoteoncompensationpackagesoftopexecutives.Shareholder
votesarenon-bindingondirectorsofcompanies.
“Thedirectorsdon’thavetofollowthevote,buttheyknowif
theygoagainstit,it’sgoingtohaveanimpact,”saysSwieringa,
whoservesontheboardofdirectorsofGE.“It’sawayofmaking
directorsmoreresponsibleandaccountable.”
Hockettconsiders“sayonpay”tobewindowdressing.Grinstein
doubtswhetherthenewrulewilldomuchaboutthefundamentalprob-
lemofrealigningincentivestocurbexcessiverisk-takingbyexecutives.
ButSwieringabelieves“sayonpay”willforcedirectorstojustify
theiractionsonexecutivepay.Iftheyignoreshareholders’non-
bindingvotes,theywillriskbeingousted.
“It’sclearthiseffortisgoingtohavesomeimpact”Swieringasays.
I
T
“We definitely need
someone looking for
systemic risk, but I’m
not sure this [Financial
Stability Oversight]
Council will do anything. It would be
easier to have the Fed and Treasury
consult with each other.”
– P Rof e s soR BoB Ja R Row
22 cor nell enter pr ise • fa ll 2010
AAA ratings for mortgage- backed securities
odd-Frankhasamenuoffixesfortheproblemposedby
credit-ratingagencies,whichaffixedtriple-Aratingsto
themortgage-backedsecuritiesthatwereattheheartof
thecrisis.
TheactcreatesanewofficeofcreditratingswithintheSECand
setsuprulesintendedtomakecreditagenciesmoreaccountableand
transparentandlesssusceptibletoconflictsofinterest.Aconcern
aboutratingagencieshasbeenthattheirjudgmentmaybeclouded
whentheyarebeingpaidbythecompanieswhoseproductstheyrate.
Jarrowisdoubtfultheseregulationswillwork.“Itlookslikethey
aregoingtocreateanotherlayerofregulation.Ithinkthisisahalf
fixandthewrongfix.”
Hefavorsdoingawaywithrequirementsthatinvestment-grade
securitiesberatedbytheagencies.“Financialinstitutionswoulddo
theirownduediligenceorpaysomebodytodoit,andtheywouldn’t
relyonquasi-governmentsanctionedorganizations,”Jarrowsays.
Hockettnotesthatthelawremovesalegalshieldcredit-rating
agencieshavehadandallowspartieswhogotbadadvicetosuethe
agencies.“Byopeningthepossibilityofcertainlawsuits,itmay
renderthecredit-ratingagenciesmoreaccountable,”hesays.
The crisis next timestheDodd-Frankbillmovesintotheimplementationphase,
thequestionlooms:Willitpreventthenextfinancial
crisis?
FinanceProfessorWarrenB.Baileyhasdoubts.“Smarttradersand
theirlawyerswill,toadegree,alwaysfindawayaroundsomeofthese
newregulations.Thatissimplythenatureofglobalfinance,”hesays.
Whilethelawdoescreatenewrulesandagencies,theU.S.regu-
latorysystemremainsapatchwork,withnocentralauthoritythat
canintervenewheneverandwhereverthenextcrisiserupts.Thelaw
alsodoesnotaddresstheproblemsofFannieMaeandFreddieMac,
thetwostill-ailingmortgagegiantsthatthefederalgovernmenttook
overduringthecrisis.
Baileysaysa
threatalsocouldcome
frombeyondourbor-
ders.“Wecanimagine
thatahedgefund,an
offshoreentity,orsome
otherplayerthatdoes
notfallunderthenew
lawsorregs,canblow
up,crashU.S.stockorbondmarkets,andcausebigproblems—
evenifalltheregulated,onshoreplayersarebehaving.”
KarolyisaystheUnitedStatesshouldhaveworkedwithother
nationstocraftacoordinatedapproach.“ItfeelsliketheU.S.has
goneitalone,”hesays.“Thereisnodoubtinmymindthatthecrisis
stemmedfromthefactthattherewasseriouslackofcoordination
amongglobalregulatoryagencies.”
Still,Karolyibelievesthelawisprogress.“I’moptimistic.Itmay
nothaveeverythingIoranybodyelsehopedfor,butatleastwehave
ablueprint.”
Hockettsaysthatinalmosteveryareacoveredbythebill,the
draftersofthelawwentabouttwo-thirdsofthewaytocomplete
reformofthesystem.
“Maybethat’sthebestwaytodoit,”Hockettsays.“Youdon’t
wanttogojusthalfway.Thingswerecrazyenoughtwoyearsago
thatyoudon’twanthalfmeasures.Two-thirdsisanicewayofsplit-
tingthedifference.”
Not strictly academicorbusinessschoolfaculty,thefinancialreformlawmeans
changestolecturesandadditionstosyllabuses.AtJohnson,
thelawhasbeenahottopicsincethespring.
“WediscusseditintheexecutiveMBAclassIwasteaching,”
Karolyisays.“Iteachcorefinance,andthat’sprobablynottheplace
totalkaboutit,butIsuredid.”
WhenCongresswasstilldebatingthelaw,theschoolbrought
inindustryexpertstoparticipatewithfacultyinaseriesofevening
paneldiscussionslastspring.
“There’snoformalmoduleinanycurriculum,butIthinkit’s
therightandresponsiblethingtobetalkingaboutthesechanges,”
Karolyisays.Understandingthelawisimportanttoanyonegoing
intobusinessorfinance,headds.
“It’sgoingtoaffectallthelivesoftheseyoungpeopleformany,
manyyears.”
“One way to think of it is as a partial
return without going the whole way
in the direction of Glass-Steagall.”
– P Rof e s soR RoBe Rt C. HoCk e t t
D
A
F
T A M I N G
the bear
23w w w.johnson.cor nell .edu
Judging by the headlines, many of the world’s emerging
nations seem to face a grim future. They are periodically swept
by famine, disease, and civil wars, and are often mired in
poverty. Yet Western business refuses to write them off. Where
others see despair, forward-looking businesses see billions
of consumers with money to spend, a desire for a better life,
and a willingness to apply capitalist solutions to longstanding
problems. The stories below give a glimpse of the quiet
revolution that is transforming the planet.
Alumni facilitating economic development in emerging economies
By Doug McInnIs
gaMe
ch
ang
ers
cor nell enter pr ise • fa ll 201024
JustIn DeKoszMovszKy ’99, MBa ’06:Combating Disease in the Poorest Big Cities
InNairobi,Kenya,roughly150residentsshareeachofthecommunal
bathroomsthatservethecity’spoorestneighborhoods.Butwhenit
comestocleaningthem,noneofthose150peopleisincharge.The
bacterialnightmarethatresultshelpsspreaddysenteryandotherdiar-
rhealdiseasesthataredeadlytonewbornsandyoungchildren.
ThesituationisreminiscentofthefilththatafflictedEuropean
citiesbeforetheageofmodernsanitation.NowSCJohnsonhas
movedintothevoidbyco-creatingprivatelyrunsanitation“micro-
franchises”tocleanupNairobi’scommunalrestrooms.Ifthesystem
worksinNairobi,itcouldcreateatemplatefordiseasemanagement
intheburgeoningslumsoftheemergingworld’sbigcities,and
createjobsintheprocess.
“Forthefirsttimeinthehistoryoftheplanet,themajor-
ityofpeoplearelivingincities.Andthemajorityofthenew
urbanmigrantsaregoingintoslums.Ifyoudon’thavesanitation
systemsinplace,garbageandexcrementjustpileup,saysJustin
DeKoszmovszky,SCJohnson’smanagerforstrategicsustainability
indevelopingmarkets.“OurChairmanandCEOFiskJohnson
believesthatpartofbeingaresponsiblecompanyisworkinghardto
playaroleinsolvingtheworld’sproblems.Heisverysupportiveof
theseeffortsinKenya.”
SCJohnson’ssolutioniselegantlysimple.Thecompanycreated
anorganizationcalledCommunityCleaningServices,orCCS,
whichprovidesstartupadviceandsuppliestohelpentrepreneurs
openneighborhoodsanitationservices.It’sawin—families
servedbytheseentrepreneurspayupto75centsaweektoassure
cleanfacilitiesandSCJohnsongainsanewmarketforitscleaning
products.Everyonebenefits.
Tolaunchtheventures,CCSdonatesglovesandrubberboots
tothenewsanitationcompanies.Cleaningsuppliesareprovided
inbulk,wellbelowretailcostsandinaclosed-loopsystemthat
eliminatespackagingwaste.Thearrangementminimizesup-front
costsforcash-strappedentrepreneurs.“Theylivehand-to-mouth,”
DeKoszmovszkysays.“ThemoneytheymakeMondaywillbuy
Mondaynight’sdinner.Soitwasimportanttomakesurethese
businesseswereprofitableforthecleanersondayone.
“We’vegotacommitmenttodothispioneeringwork.Andwe’ve
gottheglobalreach.Ifwecancomeupwithabusinessmodelthat
works,wecanquicklyscaleitup,”hesays.”
Justin DeKoszmovszky ’99, MBA ’06, with the Community Cleaning Services management team with whom he worked to develop the business. (left to right): Dennis Mambo, Eliza Achieng, and Joseph Njenga. This was taken outside one of the public toilets CCS manages in Pangani, Nairobi.
DeKoszmovszky with CCS team members after a CCS biannual general meeting. “The gentlemen and lady I am standing with are all part of one of the CCS clean-ing teams from Kibichoi, Mathare, one of Nairobi’s larger slums. They are, in es-sence, SCJ’s business partners for the micro-franchise business we are pioneer-ing in Nairobi.”
G A M E
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w w w.johnson.cor nell .edu 25
KrIstIn o’PlanIcK, MBa ’10: Making the Most of Tourism
Foreigninvestmentissupposedtospurlocaleconomiesandcreate
jobs.Sometimesitdoesneither.InEgypt,forexample,European
companiesbuiltnumeroustouristhotels,andthenstaffedthem
withnon-Egyptianworkers.Asaresult,90percentofalltourist
dollarsspentatsomeresortsendedupinEurope,saysKristin
O’Planick,whoworksfortheUnitedStatesAgencyforInterna-
tionalDevelopmentasanenterprisedevelopmentspecialist.
O’PlanickwitnessedtheprobleminherpreviousjobasaUSAID
contractorinEgypt.Atfirstglance,foreign-ownedtouristventures
reapedabonanza.“Theycouldsay,‘Lookhowmanytouristswe’re
bringingtothecountry,’”saysO’Planick.“Butifyoulookedat
capitalflows,muchofthemoneyflowedtoothercountries.”In
somecases,Egyptreapedlittlemorethanenvironmentaldegrada-
tion.“Egyptstillhaspocketsthatareundeveloped,”sheadds.“And
theyaredefinitelylookingtodofuturedevelopmentdifferently.”
DuringherstintinEgypt,O’Planicksupportedthedevelopment
oflocallyownedventuresthatwouldattracttouristspending.They
includedrestaurantsthatfeaturedindigenousfood,daytripson
camelback,andhandcraftingbusinessessuchasjewelry,wallhang-
ings,rugs,andleathergoods.Womanranmanyoftheseventures
tosupplementmeagerfamilyincomes.Whilethesebusinesseswere
tiny,theimpactwasoftenlarge.“Someofthewomentripledtheir
family’sincome,”shesays.
O’PlanickgravitatedtoeconomicdevelopmentafterherPeace
CorpsserviceintheWestAfricannationofGuinea.“Igotad-
dictedtotheideaofdoingworkthatismeaningful,”shesays.She
admitsthattheroadtoprogressissteep.“Insomeplaces,itseems
overwhelming,”shesays.Shefocusesonthosethingsthatcanbe
changed.“InEgypt,wewantedtoleverageforeigninvestmentto
benefitthelocaleconomyasmuchaspossible,”shesays.“Ourgoal
wastochangethesystem.”
egypt still has pockets that are undeveloped. and they are definitely looking to do future development differently.”
Kristen O’Planick, MBA ’10, in a work “victory” photo with a water truck that she and her team procured for a village along the southern Red Sea that didn’t have access to potable water. “The procurement was a long and painful process,” she says, “so when the truck finally cleared customs I had to have a celebratory photo with it!”
A picture from the camel market outside of Cairo — a very traditional place in what can be a very modern city.
26 cor nell enter pr ise • fa ll 2010
JustIn BaKule, MBa ’99: Saving The Cocoa Crop
Fortheworld’schocoholics,theoutlookisgrim.Chocolaterequires
cocoa,andintheworld’sbiggestcocoaproducer—theWest
AfricannationofCôted’Ivoire—cocoatreesaregrowingoldand
increasinglyunproductive.
“Atharvest,manyofthetreesliterallyhavenothingonthem,”
saysJustinBakule,aconsultantatFSGSocialImpactAdvisors,a
non-profitBostonfirmthathelpscorporationscraftstrategiesto
benefitboththebusinessesandthesocietieswheretheyoperate.His
latestclientisamajorchocolatecompanythatwantstoaddressCôte
d’Ivoire’sproblem.
Thecountrysupplies40percentoftheworld’scocoa.Ashrink-
ingcropthreatensthelivelihoodsofuptoonemillionsmallCôte
d’Ivoirefarmers,whotypicallyhaven’thadtheresourcestoreinvest
intheircocoatrees.Thegovernmenthashadlimitedresourcesto
helpthem.“It’sacountryalreadyincrisis,”saysBakule.“It’sbeen
splitbycivilwarsincetheearly2000s.”
Bakulehelpedhiscorporateclientdevelopacocoa-revivalplan
thatrecognizestheuniquerolesofhisclient,thegovernment,the
The world’s emerging economies want to grow. But it isn’t likely that they will follow the U.S. path of ever-expanding production and consumption. “It’s hard to think that you could take the same path the U.S. took and replicate it in China, India, Brazil, and some 125 other countries,” says Professor Mark Milstein, director of Johnson’s Center for Sustain-able Global Enterprise (CSGE). “You would need the resources of three Earths to do that.” The center brings that point home in its Sustain-able Global Enterprise Immersion program for first-year MBA students. The SGE Immersion requires students to apply critical thinking to some very tough issues, such as how the private sector can grow in an era of limits. “We want them to look at problems objectively with a business lens — problems such as poverty and ecosystem degradation,” said Milstein.
Last year, for instance, immersion students traveled to the Philippines, where the country is shutting old dumps and replacing them with new dumps run with modern technology. But progress can also cost jobs. The old dumps provided a livelihood for families that picked through the rubbish for recyclable trash, says Monica Touesnard, CSGE’s associate director. “Their way of making a living was vanishing.” The students worked on a World Bank project to find new employ-ment options for displaced waste pickers. The SGE Immersion aims to foster the analytical skills needed to tackle modernization issues, such as those that face the Philippines. “We tell our students to look at the issues that will really impact lives over the next century,” says Milstein. “Then they must ask them-selves if there is a product or service that the private sector could create to deal with those issues. If they can do that, they can have success in the marketplace.”
sustaInaBle gloBal enterPrIse IMMersIon
Justin Bakule, MBA ’99, in a cocoa orchard in Côte d’Ivoire, holding a cocoa pod.
G A M E
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w w w.johnson.cor nell .edu 27
farmers,andotherstakeholders.Itfocusesonboostingproductivity
byrehabilitatingexistingcocoa-growingareas.Farmerswillhave
improvedaccesstohigher-yieldingcocoatrees,agriculturalinputs,
andagronomicbestpractices.Investmentsininfrastructure,policy,
andthecommunitywillalsobeneeded.
“Thescaleofthisproblemiswhat’sdaunting.Thereareliterally
billionsoftrees,alltypicallyfarmedon1-3hectares,”saysBakule.
“Replacingthemtakestime,andnewtechnologiesmustbetaughtto
thefarmers.Youtakecuttingsfromyoung,healthytreesandgraftthem
tooldertrees,whichreinvigoratesthemwiththenewplantstock.”
Undertheplan,thegovernmentwillgrowtreestoprovidecuttings.
“Cocoaisthesingleingredientthatcannotbereplacedina
chocolatebar,”saysBakule.“Ifyouwanttohavechocolatebars,
you’vegottohavecocoa.”
ryan Kelley, MBa ’09: Our Man in Madagascar
Severalyearsago,theeasternU.S.plungedintodarknesswhenthe
powergridabruptlyfailed.Byandlarge,Madagascardoesn’thaveto
worryaboutsuchproblems;80percentofthecountrylackselectric
power.Mostresidentscookwithwoodstovesandlighttheirhuts
withcandlesorkerosenelamps.Unfortunately,asthesedevices
burn,theyfillhutswithnoxiousgasesthatcauseupperrespiratory
diseasesthataccountfor21percentofhospitalvisits.“IfyouorI
weresittinginthatroom,oureyeswouldbetearingandourthroats
wouldbeburning,”saysRyanKelley,whohandlessolarsalesin
MadagascarforToughStuff,aEuropeancompanythathopesto
transformtheislandnationthroughsolarpower.
Kelley’scompanywantstoleapfrogfossilandnuclearpower
solutions,andtakemanyofMadagascar’sresidentsdirectlyintothe
alternative-energyage.ToughStuff ’sprincipleproductisasolar-
poweredLEDlight,whichsellsfor$22.50andistoughenoughto
functionafterfallingfromasix-storybuilding.
Thelighthelpscutindoorairpollution,providesbetterillumina-
tionforstudents,andallowswomentocreatehome-basedbusinesses
intheeveninghours.However,evenatitsmodestprice,theproduct
isbeyondthefinancialreachofmanyhouseholds,sothereare
unusualpaymentplansavailable.Somepeoplepayoffthedeviceat
$3amonth.Others,wholiveahand-to-mouthexistence,canmake
dailypaymentsoftencents.“Theygototheirfield,harvestpartof
theircrop,sellitatthemarket,andearnenoughtocovertheirdaily
costs,”saysKelley.Thepotentialmarketforsolarlightsisenormous.
“Thereare1.4billionpeopleintheworldwithprimitivelighting.”
ToughStuffalsosellslow-pricedrechargeablebatteriesandcell
phonechargers.Alow-pollutionstoveisindevelopment.
ThebusinesswasperfectforKelley,whowantedajobthat
combinedsocialresponsibilityandbusiness.“ToughStuffaligns
mypersonalandprofessionalgoals.IfoundsomethingwhereIcan
makearespectablelivingandmakealargeimpactontheworld.”
LEFT: Ryan Kelley, MBA ’09, in Madagas-car with a man holding a solar-powered LED ToughStuff light.
BELOW: A woman using a ToughStuff batttery pack to charge her cell phone
cor nell enter pr ise • fa ll 201028
Jean-clauDe Balcet, MBa ’70: Boosting Crop Production In Benin
TheGreenRevolutionhaslargelymissedSub-SaharanAfrica’s
fast-growingnations,amongthemBenin,along,narrowcountry
sandwichedbetweenNigeriaandGhana.“InBenin,agricultural
productivityhasnotmarkedlyincreasedinpastdecades,”says
Jean-ClaudeBalcet,whoretiredasanagriculturaleconomistforthe
WorldBank,andnowhandlesspot-consultingjobsfortheBank.
“It’sthesameprettymuchalloverAfrica—asopposedtoAsia
wheretheGreenRevolutionhashadatremendousimpact.”
BalcetisnowonaWorldBankassignmenttohelpBenin
improveirrigationandintroducenewhigh-yieldseedsandbetter
fertilizers,whilegraduallyincreasingagriculturalmechanization.
“Thecountryhasonlyafewhundredtractors,”Balcetsays.“They
wanttocultivate20percentofthecountry’sfarmlandwithtractors
by2015.Now,it’slessthanonepercent.”
Atthesametime,Beninwantstodecreaserelianceonits
mainstaycottoncropandgrowmorefood.Thecountryhaslong
dependedoncottontosustainfarmersandbringinneededforeign
exchange.ButthatstrategyputsBenin’seconomyatriskshould
cottonpricesplungeorimportedfoodpricescontinuetorise.“Now
itmakessenseforpoorcountriestofocusmoreonfoodproduction,”
saysBalcet.“Foodhasbecomeveryexpensiveoninternational
markets.Adecadeago,itwascheap.”Beninhopestohaveenough
foodleftoverforexport.Targetcropsincluderice,millet,sorghum,
pineapples,cashewnuts,onions,andcarrots.
Afteryearsintheagriculturaldevelopmentfield,Balcetstillfeels
joywhenheseesprogress.“Whenfarmersincreasetheiryields,they
canfeedthemselves.Andtheycanhavesomeproductionlefttosell
onthemarkettogetcash,purchasebasicnecessities,andimprove
theirlivelihoods.”Inthedecadeshehasworkedinagriculture,he
hasseenalotofprogress.“ButnotasmuchinSub-SaharanAfrica
aselsewhere,”headds.“Themajorfactor,inmostcountries,has
beenalackofexpertise,oftencoupledwithpoorgovernanceand
politicalinstability.Theroadaheadisstilllong.”
G A M E
changers
now it makes sense for poor countries to focus more on food production. Food has become very expensive on international markets. a decade ago, it was cheap.”
Balcet visiting a World Bank agro-processing project in Mali, West Africa, where the women pictured had set up a workshop for drying fruit, vegetables, and herbs. As Balcet notes, dried products are easier to preserve, bypass the challenges of transporting fresh fruit, and have “an interesting ‘niche’ market in Europe and America where nuts, dried fruits, and herb teas are popular. In this area, mangoes were plentiful. With a gas oven and minimal additional equipment, women were able to dry the mangoes and pack them. That was a good business for them.”
Jean-Claude Balcet, MBA ’78, PhD ’98, in Mali, West Africa, in 2010. “This picture was taken during a field visit for the supervision of a World Bank project to help develop commercial agri-business,” says Balcet. “At some point we visited a train-ing center for women in business (the women are generally the ones involved in agro-processing in Africa).” Pictured are those responsible for the training center and those being trained, as well as colleagues and officials.
29w w w.johnson.cor nell .edu
Johnson’s new Emerging Markets Institute strengthens its position as a power player among top schools of management. By L indA BR A nd T M y ER s
TwoyearsagoJohnsonmaderaisingitsglobal
profileapriority.
Provokingthatdecisionwasthe
swiftlychangingglobalbusinesslandscape,
particularlytheemergenceofemerging
markets—placeslikeChina,India,South
America,andEasternEuropethatinvestors
hadoverlookedinthepastbutwerenow
pursuinglikeWileE.Coyotechasingthe
RoadRunner.
Andforgoodreasons.Theyoffer
extraordinaryinvestmentopportunities.
OnAugust16,2010,BloombergNews
reportedthatChinahadovertakenJapanto
becomethesecondbiggesteconomyinthe
world,withagrossdomesticproduct(GDP)
forthesecondquarteroftheyearat$1.337
trillion.Thenewsstorycitedaprediction
fromGoldmanSachs’chiefeconomistthat
thecountrywouldactuallysurpassthe
UnitedStatesby2027.
AndonSeptember8,2010,Business
WeekcitedpredictionsbyGoldmanSachs
strategiststhat“fastereconomicexpan-
sionandgrowingcapitalmarketsmaylift
emergingnations’shareofworldequity
capitalizationfrom31percenttodayto55
percentby2030.”
“Askedwhichwillbethemostattractive
regionoverthenextthreeyears,Ernst&
Young’spanelof809internationalbusiness
leadersputsChinaandCentralandEastern
Europeinfirstplace,”notesElenaIankova,
lecturerininternationalbusinessatJohnson.
“Indiaranksthird,followedbyRussia,
WesternEurope,andBrazil,”shesays.
AndKunChen,MBA’11,presidentof
theGreaterChinaBusinessClubatJohnson
andasummer2010internatJohnson&
JohnsonPharmaceuticalsinChina,recalls:
“Thegeneralmanagertheretoldme:‘No
onecansaynotoamarketlikeChina,with
aGDPthatgrowsat8+percentayear.’”
Butthat’sonlypartofthestory.
“Ourstudentsweretellingusthey
wantedmoreglobalexposure,andthe
companieswhohirethemweresaying
theywantedpeoplewithmorein-depth
globalexperience,”saysRandyAllen’68,
whoseresponsibilitiesasassociatedeanfor
internationalandcorporaterelationsinclude
globalstrategyandinitiatives.“Wealready
hadfacultywithglobalresearchinterests,
butwewantedtostrengthenthat.”
30 cor nell enter pr ise • fa ll 2010
A suRPRisE AdVAnTAgE“Wedidourduediligence,”saysKarolyi.
Theireffortsinvolved“someseriousbrain-
storming”withstudents,faculty,alumni,
andstaff,collectingstacksofrelevantdata,
andlookingcriticallyatwhat20topbusi-
nessschools,includingJohnson,weredoing
thatwas,andwasn’t,working.
Theirmostsurprisingdiscovery?
“Althoughthere’sanincreasingdemand
forknowledgeaboutemergingmarkets,
wefoundthatnotopbusinessschoolshad
centersdevotedtothestudyofemerging
marketsinamajorway,”saysChen.
“Alotofourpeersweredoingalotofin-
ternationalthings,butnotinareallycohesive,
coordinatedway,”Karolyicomments.One
reason:ManypeerMBAschoolshadlaunched
CIBERs[federalgovernment-sponsored
CentersforInternationalBusinessEducation
andResearch]asfarbackas20yearsago.
Becausetheythenneededtomeetgovernment
objectives“theirroleasCIBERswasforcing
themtobediffused,tobeallanddoall,but
notfocusinanyspecialway,”heexplains.
ThatawarenessledKarolyi,Chen,andAllen
toembraceamorefocusedapproach,with
emergingmarketsasthefocalpoint.“We
askedourselves,‘Howcanwetakeadvantage
ofouropportunityhere?’”saysKarolyi.
Theterm“emergingmarket”wascoined
in1981byAntoinevanAgtmael,aformer
WorldBankexecutive,whowaslooking
forawaytoencourageinvestmentsinthose
developingcountriesthathadlowGDPbut
highgrowth—thatwere,inessence,onthe
pathtobecoming“economicpowerhouses,”
saysKarolyi.Overlookedbackthenas
investmentopportunities,theyarenow
centerstage,hesays.
OnE Of A Kind“Wehomedinonemergingmarketsasour
internationalstrategyforthesereasons,”
saysKarolyi.“Theyarethehottestgrowth
“Wewantedtoleverageourresourcesto
createamuchmorepowerfullearning
experience,”saysProfessorDougStayman,
associatedeanforMBAprograms.
Thefirstorderofbusinesswastorecruit
twoseniorfacultyofprominencewhose
researchandteachinginterestswereinterna-
tionalandwhowantedtohelpshapeanew
internationalinstituteofsomekind.
Followinganintensivesearch,Andrew
Karolyi,afinancialeconomistfromOhio
StateUniversity,andYa-RuChen,anorga-
nizationalbehaviorspecialistfromRutgers,
acceptedtenuredfacultypositions,arriving
infall2009.
“AndrewandYa-Ruarebothterrific,”as-
sertsProfessorMarkNelson,associatedeanfor
academicaffairswhenKarolyiandChenwere
hired.“Theyaregreatresearchersandteachers,
andtheirinternationalexpertiseisexceptional.
Theyareabsolutelytherightpeopletobuild
ournewglobalinstitute,andwewereexcited
whentheychosetocomehere.”
Onthesurfacethetwoseemworldsapart
—Karolyistudiesinternationalmarketsand
Chenlooksathowpowerandstatusvary
acrosscultures.Buttheybothradiateenergy
andenthusiasmforthetaskathand,which
isonereasontheymakeapowerfulteam.
Chenseestheirdifferencesasastrength.
“We’reauniquecombination,whichspeaks
tothekindofinterdisciplinaryfocusand
culturalvaluethatJohnsonhas.Alotof
businessschoolsliketotalkaboutthat
approachbuttheydon’treallydoit.Herewe
doit,andIthinkit’sfantastic.”
Onecommonality:theyarebothbelievers
inempiricaldatatobackupresearchclaims.
Thatwastheapproachtheyusedwiththeir
ambitiousandprobingyearlongstudy,
undertakenwithAllen,onhowinternational
businessistaughtatJohnsonanditspeer
institutions,andwhatisneededhereinlight
ofthechangingglobalbusinessenvironment.
“Although there’s an increasing demand for knowledge about emerging markets, we found that no top business schools had centers devoted to the study of emerging markets in a major way.” yA-Ru ChEn, PROfEs sOR Of M A n AgEMEn T A nd gLOBA L BusinEs s
gREATER gLOBAL PREsEnCEEnhancedglobalprogramming,curricu-
lum,andpresencewerefeaturedpriorities
inoneofsixmajorinitiativesintheschool’s
2008StrategicPlan,Allenpointsout.The
schoolalreadyhaddonealot,including
moreoverseasinternships,studytours,
EMBAglobalprojects,andMBAexchange
programs—manyinemerging-market
countries.Theonlypiecesofthepuzzlethat
seemedtobemissingwereastrategyanda
programthattiedallthoseeffortstogether.
G E T T I N G M O R E
global
31w w w.johnson.cor nell .edu
enterpriseonthisplanetrightnow.Theyare
topical,timely,anddistinctive–noother
peerinstitutionisstudyingtheminamajor
way.There’sagreatdemandforknowledge
aboutthem.Andwediscoveredthat
creatinganinstituteonemergingmarkets
fitsbeautifullywithintheCornelltradition
ofoutreach.”Theuniversityhashad“a
positivepresencefordecades”withinmany
ofthecountriesthatnowhaveemerging
economies,henotes.Earlierprogramshave
soughttoimprovemedicalcare,agricultural
output,nutrition,andwaterqualityin
primarilypoorcountries,addsAllen.
“Emergingmarketsmadesenseforus,”Al-
lensays.“Alotofourstudentsandalumniare
interestedinthem,soarealotofbusinesses,
andalotofourfacultyarealreadydoing
researchonthem.Thirtypercentofour
studentsareinternational,andsomeofour
alumnibasefromIndia,China,andLatin
Americaarestartingtogobacktotheirhome
countriesandparticipateintheireconomies.”
Theconceptforanemergingmarket
institutewonoutovertheideaforacenter
onaparticularcountry,whichwasalsocon-
sidered,because:“Somespecificgeographic
areasmayfadeininterestovertime,butthere
willalwaysbeemergingmarkets.”Allensays.
OnSeptember3,2010,Johnson
facultyunanimouslyapprovedtheproposal
presentedbyKarolyiandChentolaunchthe
EmergingMarketsInstitute,thefirstofits
kindatanyleadingbusinessschool.
RAVE REsPOnsEs“TheEmergingMarketsInstituteand
relatedcourseswillhelpstudentsbemuch
morefocusedandbetterpreparedtowork
successfullyinthechangingglobalenviron-
ment,”saysKunChen.
AdvisorycouncilmemberNellCady-
Kruse,BS’84,MBA’85,calledthe
institute“therightideaattherighttime.”
BasedinHongKong,Cady-Krusehas
overseenCreditSuisse’sriskmanagement
functionintheAsiaPacificregionsince
2005.Shesays:“Onecannotoverstate
howdramaticthepaceofchangeishere
andhowimportantitistounderstand
theimplications.Theinstitutewillnot
onlyenhanceteachingandresearchabout
emergingmarkets,butwillgivefirmslike
mineunparalleledopportunitiestorecruit
studentswithexcellentcredentials.”
NeelLakhani,MBA’07,MILR’08,an
associatewithBooz&CompanyinDubai
whodoesstrategicconsultingintheMiddle
EastandAfrica,commented:“Knowledge
ofemergingmarketsiscriticaltodoingbusi-
nessthesedays,anditsimportanceisonly
likelytoincrease.Thenewinstitute’splanto
produceempiricalresearchonthesubject,
somethingwhichhasbeenrelativelylimited
elsewheresofar,willmakeadifferencenot
onlyfortheschoolbutforthewaycompa-
niesdobusiness.”
PROMOTing diALOguE On EMERging MARKETsJohnson’s new Emerging Markets Institute is co-sponsoring these upcoming conferences together with other leading business schools. Check Johnson’s Web site for details.
• singapore, March 1-2, 2011: Joint Applied Research Forum on Asian Asset Management, with the National University of Singapore’s Center for Asset Management Research and Investment
• Philadelphia, april 2011: 2011 Impact Conference on Sovereign Debt Risk, with Wharton’s George Weiss Center for International Financial Research
• Beijing, June 2012: Inaugural global leadership conference, with the University of Peking’s Guanghua School of Management
• nanjing, china, June 5-6, 2011: “Enterprise Management in a Transitional Economy and Post-Financial Crisis — International Conference on Multinational Business Management,” with Nanjing University Business School
POwER shifTIn purchasing power parity (PPP) terms, currently, the G7 claims more than half of G20 GDP compared to approximately one third in the Big Five+M economies (Brazil, Russia, India, China, Indonesia, the traditional “Big Five” economies, and Mexico); in 2050, the Big Five+M economies will significantly overtake the G7.
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
02009 2030 2050
GDP Real US$, billions BIG FIvE+M G7
Source: Author’s projections in “The World Order in 2050,” Policy Outlook series, Carnegie Endowment for In-ternational Peace (April 2010).
32 cor nell enter pr ise • fa ll 2010
gLOBAL REsEARCh & OuTREACh Thenewinstituteincludesanactive,internal
grantprogramtoencourageandenablefac-
ultytodomoreresearchrelatedtoemerging
markets.“We’llputonacademicconferences
toshowofftheresearch,hereandelsewhere,
andinvolveotherexpertsfromtopschools
aroundtheworld,”Karolyisays.
Chenadds:“We’llhaveafellows
program,withonetotwovisitingscholars
cominghereforshortperiods,startingin
2011.They’llcollaboratewithourfaculty
onresearchprojectsinvolvingemerging
marketsandhelpingtodevelopnewcase
studiesontheirregions.”
Overtime,theinstitutewilldevelopa
repertoireofcasestudiesrelatedtoemerg-
ingmarkets,saysKarolyi,“whichcould
potentiallybeusefultoallourcolleagues
intheircoursework—bringingemerging
marketsmorefullyintothecurriculum.”
Karolyihadgreatsuccessrecentlysharing
anemergingmarketcasestudywrittenby
hisstudentswithanaudienceofalumni,in
“We homed in on emerging markets as our international strategy because they are the hottest growth enterprise on this planet right now; they are topical, timely, and distinctive.” A ndRE w K A ROLy i, PROfEs sOR Of f in A nCE A nd gLOBA L BusinEs s
Central Europe and Eastern Europe
China
India
Russia
Western Europe
Brazil
Northern America
Middle East
Northern Africa
Japan
Oceania
0% 10% 20%
23%
25%
31%
31%
37%
38%
39%
40%
41%
48%
51%
52%
30% 40% 50% 60%
South-Eastern Europe
MOsT ATTRACTiVE REgiOns OVER ThE nExT 3 yEARsCompanies from developed economies will continue to expand in emerging markets to grow their business, improve their cost structure and/or tap skilled labor pools.
AndBobStaley’58,MBA’59,retired
chairmanofEmersonElectricAsia-Pacific,
andvicechairman,EmersonElectricCom-
pany,observed:“AtEmerson,Ilearnedthat
understandingdifferentbusinessculturesis
akeytosuccess.Thisnewinstitutewillgive
tomorrow’sbusinessleadersagoodexposure
to,andunderstandingof,theglobalmarkets
thattheirfirmsserve,particularlythefastest-
growingones—theemergingmarkets.”
TRAining ThE “nAVy sEALs” Of gLOBAL BusinEss Karolyi’sgoalistomakethenewcenterthe
placewherepeoplecomeforexpertiseon
allaspectsofdoingbusinessinemerging
markets.“We’llhaveresearch,teaching,
andoutreachcomponentsandafocused
concentrationofresourcesthatwe’llmanage
anddeploytothoseactivities,”hesays.
Theschool’sglobalbusinessconcentra-
tionwillberevampedtofitemergingmar-
ketsandofferedasanintensivesecond-year
concentrationforstudentswhoarecom-
mittedtotakingonadditionalchallenges.
Itwillberigorous,saysKarolyi.“Ireferto
ithalf-jokinglywithcolleaguesasthe‘Navy
Seals’ofGlobalBusiness.Wethinkthat
notonlywillstudentswanttotakepartbut
prospectiveemployerswhoaredoingmore
businessinthesepartsoftheworldwillwant
toseekthesestudentsoutbecausetheyhave
theseskills.”SOuRCE: Ernst & Young’s 2009 European attractiveness survey. RESPONDENTS: 809 international business leaders. Total > 100% many possible answers
G E T T I N G M O R E
global
33w w w.johnson.cor nell .edu
collaborationwithJohnsonAssistantProfes-
sorGlenDowell,astrategyexpert.Thecase
involvedatelecommunicationsgiantinIndia,
BhartiAirtel,acquiringaKuwaiticompany
thatofferedaccesstocustomersin13African
countries.“ThequestionwaswhetherBharti
paidtoomuch,”saysKarolyi.“Sixtypeople
wantedtodiscussthisverytopical,interest-
ingcase.Wehadanactivediscussion,rave
reviews,andagreattimeteachingit.”
Inadditiontoherresearch,oneofChen’s
jobsatJohnsonisfacultydirectorofExecu-
tiveEducationPrograms.PekingUniversity’s
GuanghuaSchoolofManagementand
NanjingUniversity’sGraduateSchoolof
BusinessbothhavecertificateexecutiveMBA
(EMBA)jointprogramswithJohnson,and
Chenanticipatescreatingmorecertificate
programswithpremierChinesebusiness
schoolsinthecomingyears.Thelogistics
canbechallenging,androadblocksoften
requireastutenegotiations.Sherecounts
spendingoneafternoonlastAugustpersuad-
ingtheU.S.ConsulateinChinatoreverseits
decisiontoturndownvisaapplicationsfor50
EMBAstudentsfromNanjingUniversity.“I
realizedthat,asweincreaseourpresencein
China,we’vegottomakesurethateveryone
involvedisonourside,”shesays.
why (And hOw) insTiTuTEs wORK“Institutesandcentersaretheenginethat
drivesthetrain,”saysStayman.Byproviding
morestaffandresources,theyleadtomore
interactionsbetweencompaniesandfaculty,
heexplains,whichleadstomoreresearch
thatsolvesreal-worldproblems.Facultythen
takethisresearch,withtheirconcomitant
problemsandsolutions,intotheclassroom,
providingstudentswithextraordinary
learningopportunitiesthatmakethem
better-preparedforthecorporateworld.
“TheParkerCenterforInvestment
ResearchandtheCenterforSustainable
GlobalEnterprisearetwogreatexamplesof
centersatJohnsonthatdothat,”Stayman
says.Whiletherewillbesynergiesamongall
theschool’scenters,theEmergingMarkets
Institutewillputitsownspinontheshapeit
takes.“Rightnow,weareseekingcorporate
partnerswhowillengagewithfacultyon
questionsrelevanttoemergingmarketsand
providedataandavehicletoanswerthose
questions,”saysStayman.
“Wehopetogatheragroupof10to
30companieswhowillbeourcorporate
sponsors,”addsChen.“Theywillpaya
membershipfeefortheactivitiesthatwe
willhave.Andofcoursewehavetodeliver
valuetothem.”
ChenmadetwooutreachtripstoChina
thissummer,andStaymanandAllenspent
twoweeksinIndiaandChinainAugust
makingconnectionstheyhopewillhelpthe
schoolexpanditsinternationalreach.“One
thingwesawisemergingmarketsarenow
sellingtootheremergingmarkets,”says
Allen.Theinstitutehopestobethecatalyst
forstudyingtheircommonissues,shesays.
“Thetripalsogaveusachancetotest
theconceptoftheinstitutewithdiffer-
entstakeholdersintwomajoremerging
markets—alumniwhoworkthere,
leadersofcorporations,anduniversities
thatoperatethere,”Allenadds.“Itwasan
opportunitytoaskiftherearerefinements
weshouldmake,andwhetherpeopleare
willingtosupportus.Theidearesonated
witheveryone,andDougandIwentaway
withthesensethattherearetremendous
opportunitiesinbothplaces.”
MEAsuRing suCCEssJohnson’sEmergingMarketsInstitutewill
bere-evaluatedinthreeyears,butthemagic
numberforgaugingitssuccessisfiveyears
fromnow.
“Wewillhavesucceeded,”saysChen,
“if,infiveyears,we’reviewedasthego-to
“One cannot overstate how dramatic the pace of change is [in China] and how important it is to understand the implications. ” nELL CA dy-K RusE ’8 4, MBA ’85, CREdiT suis sE, hOng KOng
placeforkeyinformationaboutemerging
marketsbyourpeerinstitutionsaswellas
ouralumni,faculty,students,andcorpo-
ratesponsors.”
“Ifwe’resuccessful,infiveyearsour
admissionsstaffwillbeshowcasingthe
instituteasauniqueopportunityforour
students,”addsKarolyi.“Employerswill
beseekingthemoutaspotentialleaders
becauseoftheiruniqueskillsets,and
ouralumni,aswellasfacultyfromother
schools,willactivelyengageourfacultyas
thebestresourceforthelatestwisdomon
what’shappeninginemergingmarkets.”
Thelastwordonthesubjectcomesfrom
Allen.“Ifotherschoolsimitateus,”shesays,
“weknowwewillhavebeensuccessful.”
34 cor nell enter pr ise • fa ll 2010
ikemanysuccessfulleaders,JimGoldmanthinks
outsidethebox.Fortheaptly-namedGoldman,the
boxinquestionisa14-caraticon—GodivaChoco-
latier’sgold-tonedballotin.
Asoneoftheworld’sbest-knownpackages,thatboxconfers
astrongadvantage,saysGoldman,presidentandchiefexecutive
officerofNewYork-basedGodiva.Butit’salsoagildedcage.
“WearesaddledabitwiththeconsumerperceptionthatGodivais
onlyforspecialoccasions—greatforValentine’sDayandmaybefor
Christmas,buttooexpensive,tooluxuriousformoreregularconsump-
tion,”Goldmansays.Thatperception,headds,needstochange.
Thesedays,Godivaisbreakingoutofthegoldenboxinabig
way,seekingtoconnectwithconsumersinmanymoreplacesand
onmanymoreoccasions.“Godivaneedstoberelevant12monthsa
year,”Goldmansays.
ThepushtomakeGodivaabrandforallseasonsgoesbackat
leastto2004,whentheCampbellSoupCompanynamedGoldman
presidentofitsGodivabusinessunit.“Jimimprovedourcompeti-
tiveness.Hecreatedawholebevyofinnovationsthatfoundtheir
wayintotheGodivastores,”saysCampbell’sCEODougConant.
Theatricaltouches—employeesdippingstrawberriesinchocolate
orwhippingupfrozen“Chocolixer”drinks—drewcustomersinto
Godivaboutiquesandkeptthemcomingbacktoseewhatthestore
wouldserveupnext.
Butopportunitiestotransformthebrandreallytookoffin2008,
whenCampbellsoldGodivatoYildizHolding,parentoftheÜlker
Group,aprivately-heldTurkishfoodmanufacturer.
Thenewparent’schairman,MuratÜlker,isasavvybusinessman
andavisionaryleader,Goldmansays.“Hehasamuchlongerper-
spectiveonthings,notquarter-to-quarter.”CampbellgaveGodiva
strongsupport,hesays,butapubliclytradedfirmmustconsiderits
shareholdersfirst.“AsaFortune500company,Campbellcouldnot
affordtotaketherisksandmaketheinvestmentsthatwe’remaking
nowtorealizeourfullpotential.”
WithÜlker’sbacking,Goldmanandhisteamaregoingallout
toputbothtraditionalGodivatreatsandagrowingassortment
ofnewproducts—fromicecreamparlortrufflestodippedOreo
cookiestoindividuallywrappedGodiva“Gems”—intomoreand
morecustomers’mouths.“Overthepasttwoyears,wehave
rampedupourinnovationgametoalmostadizzyinglevel
ofactivity,”hesays.
Taking on the White SpaceGodivahasroomtogrowbecausethebrandhasplentyofwhat
Goldmancalls“whitespace”—marketopportunitiesithasn’tseized
inthepast.Especiallyduringarecession,hesays,amakerofpremium
chocolateneedstoservechocolateaficionadoswherevertheymaybe.
Tofillinthatwhitespace,Goldmanandhisexecutiveteam
arepursuingthreemainstrategies:expandingintonewcountries,
introducingnewproducts,andsellingthroughnewchannels.
Alreadywell-establishedinNorthAmericaandJapan,Godiva
recentlyarrivedinChina,withplansfortenboutiquesinfourcities
by2011.InOctober,itopenedtheworld’slargestGodivastore—a
boutique-plus-café—inShanghai.Godivadebutedthissummer
inIstanbul,ÜlkerGroup’sheadquarterscity,andit’sexpandingin
Australia.ThecompanyiseyeingSouthKoreaandaimstodevelop
astrongerpresenceintheMiddleEast,Goldmansays
Withitssecondstrategy,Godivaisencouragingconsumersto
reachforitsproductsonamuchbroadervarietyofoccasions.That
meansexpandingthepopularnotionofGodivachocolateasagift.
“Godivaisgreatforthatemotional,specialgiftforValentine’s
Day,butmaybealittlebitoverthetopforgivingtothepersonwho
tookcareofyourdogovertheweekend,”Goldmansays.That’s
thetraditionalview.ButGodiva’snewgiftbaskets,bakedgoodsor
holidaytreatsmightbejusttheticketforadog-sittingneighbor.
Godivaalsohasdevisedproductsforpeoplewhowanttobuytreats
forthemselvesortosharewithco-workersorfriends.“Godivaisn’twell
developedinthoseusageoccasions,andyetthey’rehugeyear-round,”
Goldmanobserves.Thatcategoryincludesalineofchocolatetablet
barsandtheGodivaGems,whichsellinfour-ouncebagsfor$4.99.
Tomarketproductsforanytimeconsumption,Goldmanandhis
teamhavedecidedtheycan’trelysolelyonGodiva’straditionalretail
venues—departmentstoresandGodivaboutiques.Sostrategynumber
threecallsforbroadeningdistribution.In2009,Godivastartedselling
chocolatebarsandGemsinpharmaciesandgrocerystoresintheU.S.
Itwasacontroversialdecision.“It’stheonethatIthinkwe,asan
organization,grappledwiththehardest,”Goldmansays.Butgiven
thepresencethatpremiumchocolateshavegainedongroceryand
drugstoreshelves,Godivacouldn’taffordtoholditselfaloof.
ResearchshowedthatcustomersintheU.S.appreciatedthe
chancetobuymoreimpulse-orientedproductsfromGodivaina
broaderrangeofoutlets,Goldmansays.Whilerespondingto
thosecustomers,thecompanyalsocontinuestocookup
LProfile in leadershiP: Jim Goldman, MBa ’85, President and Ceo, Godiva Chocolatier
By Merrill douglas
A Brand for All Seasons
Co
urte
sy o
f Go
diva
Ch
oc
ola
tier
36 cor nell enter pr ise • fa ll 2010
fresh,innovative,andcustomizedproductsforsaleinitsownretail
stores,headds.
Godiva’straditionalimagewasn’ttheonlyfactorthatmade
movingintothemassmarketaboldstep,saysKrisBreuer,Godiva’s
seniorvicepresidentofhumanresources.Besideschallenging
Godivatomaintainitsauraofprestigewhileappealingtoabroader
market,thestrategydemandedthatthecompanydevelopnew
marketinganddistributionskills.
“You’relookingatdealingwithbrokernetworks,whichwe’d
neverdonebefore.Andyou’reentrustingyourbrandtoplaceswhere
youdon’thavecontroloverwhatitlookslikeontheshelf,”says
Breuer,whofirstworkedforGoldmanwhenheheadedCampbell’s
FoodandBeveragedivision.“Youhavetolookathowtoadvertise,
howtokeeptheimagealivewhilegettingthechocolateintothe
mouthsofeverydayconsumers.”
Godiva’sluxurygiftbusinessoperatessomethinglikethefashion
business,drivenbytheseasonsandtheneedtobuildexcitement,
saysDaveMarberger,thecompany’schieffinancialofficer,whoalso
workedforGoldmanatCampbellFoodandBeverage.“That’sa
muchdifferentapproachthanwhenyouputanewproductintoa
grocerystore.”
Sofar,Godiva’sbroaderdistributioneffortsfocusmainlyonNorth
America.“Ourgo-to-marketstrategyisdifferentbycountry,butour
desiretoberelevant12monthsayearsandaleaderacrossthebestof
everythingchocolatecutsacrossallmarkets,”Goldmansays.
Thenewstrategiesarepayingoff.“Despitethefactthatecono-
miesarestillsluggishinmostplacesaroundtheworld,ourbusiness
nowisgrowingdouble-digits,”Goldmansays.“We’reputtingup
betternumbersthanwe’vehadinalongtime.Andwefeellikewe’re
justgettingstarted.”
Lifesavers Get a LiftThisisnotthefirsttimeGoldmanhasmadeboldmovestore-energize
abrand.HisleadershiphelpedtotransformNabisco’sLifesavers
division,saysConant,whoheadedNabiscobeforehemoved
toCampbell.AspresidentofLifesavers,Goldmandecided
thatthismature,modestly-growingbrandcouldrisetothetopofthe
confectionsindustry.Heprovedright.
“Thesecretwasfindingnewwaystomarkettraditionalproducts
whilerampingupbusinessdevelopmentandcreatingalargeportfolioof
newproductsthatleveragedwhatwewereabletodowell,”Conantsays.
AsheadofNabisco’srefrigeratedfoodsbusinessinthe1990s,
whenNabiscoacquiredParkayMargarine,Goldmanbuckedtradi-
tionbyintroducingthreetiersofmargarineproducts—premium,
popular,andvalue-priced.
“Assimpleasthatsounds,thatwasaradicalstepforthemargarine
category,”saysColinWatts,thenNabisco’sheadofmarketingfor
RefrigeratedFoodsandnowchiefinnovationofficeratWalgreens.
“Wealwaysusedtojokeaboutgettingvoicemailsfromhimwith
hislatestideainthemiddleofthenightandatanytimeofday,”says
SeanConnolly,presidentofCampbellUSA,whoworkedforGold-
manasvicepresidentofFoodBrandsatCampbell.“Hewasalways
thinkingabouthowtotakethebusinesstoawholenewlevel.”
AtGodiva,someoftherecentattemptstotakethebusinesstoa
wholenewlevelhavesparkedskepticismalongwithexcitement.In
particular,Breuercitesthemoveintopharmaciesandsupermarkets.
ButwhenGoldmanwantstosellaconcept,histenacity,diplomacy,
andenthusiasmusuallywintheday,shesays.“Hetendstobealeader
whocaninspireothers,whomotherswilltakealeapoffaithfor.”
Goldmanbringstremendousenergytohisroleasacorporate
leader,Marbergersays.“Whenhefeelsstronglyaboutsomething
that’sgoingtodrivethebusiness,anddrivevalue,heisjustpassion-
ateaboutit.Andhe’srelentless.”
Adeepinterestinhumandynamics—aninterestthatgoes
backtohisdaysasanundergraduatepsychologymajor,summer
campcounselor,andhighschoolteacher—isoneofthekeysto
hissuccessasanexecutive,saysGoldman.“Idon’tthinkyoucan
besuccessfulifyoucan’tworkwithpeoplesuccessfully,ifyoucan’t
motivatethemandidentifytalent.”Hetakesgreatprideinseeing
howmanyofthepeoplehehashiredovertheyearshavegoneonto
achievegreatthings,hesays.
AnotherkeytoGoldman’sleadershipishisabilitytotakestock
ofasituationandthenmakeafirmdecision.“Over-analyzing
canoftenleadyoudownthewrongpath.”Goldmansays.“Asa
company,we’renotgoingtobesittinghereattheplatewiththebat
onourshouldersandbeafraidtoswing.”
TherewillbemanyoccasionstotakedecisiveswingsasGodiva
continuestopursueitsnewstrategies.Thetrickwillbetochoose
thoseswingswisely.
“Wehavetomakesurewefocusintherightareas,”Goldman
says,“thatwedoitinaqualitywayandthatwedon’toutstrip
ourabilitytoexecutewithexcellence.”
espite the fact that economies
are st i l l s luggish in most places
around the world, our bus iness now
is growing double-dig its. And we feel l ike
we’re just gett ing star ted.”
– Jim Goldman, MBA ’85
37w w w.johnson.cor nell .edu
MinisterofFrance!”Alongwith
classmate,John Belknap ’68,
MBA’70,Robertalsoservedonthe
boardofeMergeInteractiveInc.
C L A S S O F 1 9 7 3
John A. Norris, JD ’71isCOO
ofHealthDiscoveryCorporation
(HDC)andaformerprincipal
deputyFDAcommissioner.
HDCisaleadingdeveloperof
analyticsenginesforpersonal-
izedmedicineuses.
C L A S S O F 1 9 7 5
William F. Gibson, MPA ’75,be-
cameCOOwithAlRajhiCapitalin
April,to“leadtheinfrastructureof
agrowingfirminadynamicpartof
theworld.”ARC,basedinRiyadh,
istheassetmanagement,brokerage,
andinvestmentbankingarmofthe
largestbankintheMiddleEast.
Richard Greene Jr.isdirector,
healthandresidentsupportser-
vices,fortheNewYorkCityHous-
ingAuthority.Acareerhospital
What’s News With You?Pleasesendupdatesaboutyourcareer,family,honors,orothernews.Yourclassmateswanttohearfromyou!
SubmitClassNotesonlineatwww.johnson.cornell.edu/alumni
Callusat607.255.9437,orfaxusat607.255.2075
MailusatAlumniAffairs,TheJohnsonSchoolatCornellUniversity,235SageHall,Ithaca,NY14850
Cornell EnterpriseishappytopublishphotosalongwithyournewsintheClassNotessection.We’rehappytoscanandreturncolorslidesandprints,andwecanusedigitalphotosiftheresolu-tionishighenough(werecommendatleast300dpiat4"x6").
(E)denotesagraduateoftheExecutiveMBAprogram
(CQ)denotesagraduateoftheCornell-QueensExecutiveMBAprogram
C L A S SC L A S S
C L A S S O F 1 9 7 0
Dave Hoppock ’68,most
recentlyatechnicalconsultantand
co-ownerofastartupcomputer
company,hasservedintheAir
ForceandheldpositionsatProctor
&Gamble,ArthurAnderson,and
WellsFargoBank.Nowsemi-
retired,heishelpinghisdaughter
withherstartup.Marriedwithtwo
children(30and33),helivesin
Orinda,Calif.
Robert S. Spencer ’69isglobal
chieffinancialofficeratBaker&
McKenzieinChicago,aglobal
lawfirmwith68officesin40
countries.Robertbeganhiscareer
withArthurYoung&Co.and
movedontoworkforPepsiCo
in1981.“Forthenext11years,
Iheldanumberoffinanceand
operationalrolesmainlyinthe
InternationalSnackFoodbusiness
(basedinDallasandItaly),
primarilyfocusedonenteringand
developingnewmarketsthrough
acquisitionsorjointventures,”
hewrites.HejoinedBaker&
McKenzieinChicagoin1993as
thechieffinancialofficer,leftafter
fouryearstojoinaworldwideHR
consultingbusiness,but“returned
toBaker&McKenziein1999
attherequestofthethennew
chairman,whoisnowtheFinance
C L A S S O F 1 9 6 1
Robert Claypool ’58retired
CEOofGATX,aChicago-based
equipmentfinancecompany,
andhiswife,Nan(Tetzlaf)’61,
“haveenjoyedretirementwith
extensivetraveling,havingvisited
allsevencontinents.”Fouroftheir
sixchildrenhaveCornelldegrees,
“includingoneMBA’er,Robert
Claypool Jr., MBA ’03.”
C L A S S O F 1 9 6 3
Tom Angearreceivedthehonorary
degreeofDoctorofLawsfromthe
UniversityofNottingham(U.K.)
inJune.Hewasalsoelectedtolife
membershipstatusontheCornell
UniversityCouncil.Tomisthe
benefactoroftheAngearEuropean
Scholarship,whichawardsEU
nationals$10,000tostudyatthe
JohnsonSchool.
C L A S S O F 1 9 6 6
Henry Shieldisabuilderandland
developer,nationallyrecognized
forhisworkinthepreservation
andrestorationofhistoricsites,
includingsixthathavecolonial,
Revolutionary,orCivilWar
significance.Henryisalsoa
photographer(www.andyshield-
photography.com).
administrator,hetransitionedtoa
newbutrelatedfield,publichealth,
eightyearsago.“Theeconomic
stingwassignificant,butthejob
hadjustbeenestablished,hadgreat
appeal,andinvolveddevelopinga
programthatwouldimprovethe
healthstatusandqualityoflifefor
theresidentsofpublichousingin
NYC,”hewrites“Hardwork,less
stressandmuchsatisfactionchar-
acterizetheposition.Iamenjoying
thehelloutofitandmakingsome
progressinsomeareas...inspite
ofadvancingage(Dyckmanand
Thomas’emphasisonphysical
fitnesscontinuestoinspireme
afteralltheseyears.)DianeandI
haveason(30)anddaughter(27)
whoaredoingwell.Leisuretimeis
spenttraveling,mountainbiking
(butnotonmountains),golfing,
andcollectingvintagebooksby
African-Americanauthors.Peace.”
William M. Powers, MPA ’75,is
CEOofBonnieBrae,aresidential
treatmentandspecialeducation
centerservingNewJerseyboys
ageseightthrough18.BonnieBrae
gainednationalattentionwhenits
KnightsDrumCorpswasinvited
toperformatPresidentBarack
Obama’sinauguralparade.
C L A S S O F 1 9 7 6
Robert G. Falter receivedthe
2010EducatoroftheYearaward
T H E
1960s T H E
1970s
38 cor nell enter pr ise • fa ll 2010
ing,aswellasongoingconsultation
—workingwithclientstoimprove
andenhancetheirprogramswhile
meetingregulatoryrequirements.
Stephen Semlitz ’75ismanaging
directorofHessEnergyTrading
Company,LLC,inNewYorkCity.
C L A S S O F 1 9 8 0
Carrie Byrns Villsays,“Lifeis
goodinMinnesota.Mybanking
skillsarecominginhandyasIam
doingmorenonprofitwork.Ihave
beenmarriedover20yearstoNeil
Vill,whoseworkbroughtusto
Minn.12yearsago.Wehavetwo
girls,ages20and13.”
C L A S S O F 1 9 8 1
Jeffrey Berg ’79, MEng ’80,is
director,emeritus,ofPRTMMan-
agementConsultants.Heandhis
wife,DebraPaget,haveahomein
Scottsdale,Ariz.,andspendwinter
andspringthere,andsummerand
fallinWestchesterCounty,N.Y.
Jeffcontinuesasco-chairofthe
AA&DCommitteeoftheJohnson
School’sAdvisoryCounciland
isinvolvedinnumerousother
Cornellvolunteeractivities.
Barbara BjornsonisCFOatthe
Mass.SocietyforthePreventionof
CrueltytoChildren.Shesays,“I
amthrilledtobepartofamission-
fromtheWorcester,Mass.,
regionalassociationofrealtors.
HeretiredfromtheU.S.Public
HealthServicein2001,afterserv-
ingasacorrectionalhealthcare
administratorandlicensednursing
homeadministrator,andbecamea
licensedrealestatebrokerin2004.
Heandhiswife,Kathy,livein
Shrewsbury,Mass.
Hiroyuki Hosokawaretiredfrom
hisjobasaninternationalspecialist
foranintegratedtradingcompany
inJapan,andis“now…helpingour
familybusiness,”andvisitingthe
U.S.twiceayear,“whereIenjoy
mindingmygrandchildrenand
playinggolf.”
Richard Marin ’75 reports,“My
dayjobafter35yearsonWall
Streetisturningarounda$2Bdis-
tressedrealestatecompany,which
wehavelargelydone;nowplanto
turnitintoadistressedrealestate
fund.”Heandhiswife,Kim,live
inNewYorkCity,butmaintaina
homeinIthaca,whereheteaches
threecoursesatJohnson.They
havethreechildren,twoofwhom
attendedCornelland“onewho
hopesto.”
Phyllis Patrick, MHA ’76,is
co-founderandmanagingdirector
oftheAPHealthCareCompliance
Group,whichprovidescompliance
advisoryservicestohealthcare
organizationsandcontractors.
Theseservicesincludecompliance,
privacyandsecurityprogramas-
sessments,development,andtrain-
T H E
1980s
driventeamofgreatpeople.Check
outourwebsiteatmspcc.org.”
Catharine Deelyhasastrategic
marketingandcommunications
consultingpracticefornonprofits
inStockbridge,Mass.Shesays,
“TheBerkshires…iswhereI’m
rootednow.Astrongcreative
andtourismeconomykeepsthis
rurallivinglively.…Cornell
continuestocomeupregularlyin
conversationremindingmethat
I’mgratefulforthelife-changing
experience—andyes,Ihavemade
provisionfortheschoolinmywill
—haveyou?!”
Barry Massarskyispresident
ofMassarskyConsultingInc.in
NewYorkCity.Heandhiswife,
Cynthia Wilson Massarsky,live
inTenafly,N.J.Theyrecently
joinedtwo’81classmatesand
theirspouses—Joseph Quilland
hiswife,Mary;Marty Lasherand
hiswife,Wendy—onaJersey
Shoreouting.
Christopher Multhaufis
executivedeanoftheCollege
ofManagementandBusiness
atNational-LouisUniversityin
Chicago.Hesays,“FellowJohnson
SchoolalumDave Mulliganis
anactivememberofouradvisory
boardandnevertiresofreminding
methatIwasplacedonscholastic
probationaftermyfirstsemester
attheJohnsonSchool...Daveand
I…foundedFirstCommonwealth,
amanagedhealthcarecompany
fiveyearsaftergraduating…tookit
publicin1995,andultimatelysold
ittotheGuardianLifeInsurance
Companyin1999.Sincethen
we’vepursuedarangeofinterests
generallyinthenon-profitarea.”
C L A S S O F 1 9 8 6
Doug Batesisco-founderandchief
businessofficerofApredica,special-
istinpreclinicalADME(absorp-
tion,distribution,metabolism,and
eliminationofxenobiotics)and
toxicologyassessment.Hereports
thatthecompanywasacquiredby
CyprotexinAugust2010.
Katia Facchetti ’85moved
toParma,Italy,tolearnmore
aboutslowfoodandsustainable
agriculture,andtookasomme-
lierclassinItalian.Shesays,“My
ItalianhasgreatlyimprovedandI
re-groundedmyselfinmyfoodie
rootsandspenttimegettingto
knowmyNorthernItalianrelatives
nearLagodiGarda.”
Jim JubelirerisVPandsenior
consultantwithHarrisInteractive.
Hewrites,“Iamweatheringthe
economicdownturnasImakea
careertransitionfrombusiness
developmentandconsultinginthe
fieldofcustomerloyaltytodoing
workinsustainablebusiness...
promotingsustainablesolutionsfor
apost-oileconomythroughpublic
speaking,training,consulting
andresearch.”Jimandhiswife,
Lauren,andson,Daniel,livein
ChapelHill,N.C.
Steve Kropperispresidentand
founderofWindPoleVentures
LLCinArlington,Mass.He
writes:“FoundedWindPole
Ventures,the‘BloombergofWind’
lastyear.Gotfundeddespitethe
depression.NowhaveDuke,
MidwestISO,Invenergyandoth-
ersasclients.We’velicensedover
7,000TVandradiotowers,which
weinstrumenttoprovidereal-time
C L A S S
39w w w.johnson.cor nell .edu
windresourceinformationforthe
windpowersector.”
Jeff Rosenkranz isamanaging
partnerwithMetronomePartners
LLC,inChicago,“anewM&A
advisoryboutique”thatheandtwo
partnersformedinspring2010.
Hesays,“IhadretiredfromPiper
Jaffrayin2008,whereIwashead
ofM&A,butdecidedtogetback
intothebusiness.Weareprimarily
focusedonsell-sideM&Ainthe
middlemarketandalreadyhave
threeengagements.”
Howard Spira ’85ischief
technologyofficer,Officeof
FinancialStability,withtheU.S.
Treasury.Hesays,“Comingup
onthefirst-yearanniversaryofmy
appointment…familyisnowfirmly
settledinBethesdaafterlivingin
Japanforthepriortwo-and-a-half
years.It’sbeenafast,fun,and
fascinatingcareertransitionfrom
themultinationalbankingworld
toahigh-profileofficeintheU.S.
Government…anexcitingtimeto
beinWashington.”
Grace Han Wolf ’86waselected
toserveontheTownofHerndon
TownCouncil(2010-2012term)
andisproudtobethefirstKorean
Americanwomanelectedtooffice
inthestateofVirginia.Sheinvites
alltocatchupwithheratwww.
herndon-va.gov.
Alex Zikakisispresidentand
CEOofCapstoneAdvisorsin
Carlsbad,Calif.
C L A S S O F 1 9 9 4
Kelly Smith Brown ’88says,“I
amthoroughlyenjoyingmytime
asastay-at-homemomtoSarah
Grace,6,andtwins,Caroline
andHenry,three-and-a-half.Itis
wonderfultofocusmyenergieson
mykidsandonorganizationsthat
Itrulycareabout.Inadditionto
volunteeringforCornellandmy
kids’schools,Iserveontheexecu-
tivecommitteefortheCincinnati
BalletandtheDevelopmentCom-
mitteefortheCincinnatiZoo.”
C L A S S O F 1 9 9 4
Brent Meyersispresidentand
CEOofManex,inMoraga,
Calif.“Istillgetarushidentifying
opportunitiesandthencraftinga
creativeapproachtoseizingupon
them,whether…foraclientor
forourcompany,”hesays.“It’s
theorder-out-of-chaosthing…
filteringthewhitenoise,seeingthe
opportunity,andthendeveloping
thestrategy.”
Daniel J. Haleisanauthorliving
inDallas,Texas.Hesays,“Still
wrestlingwithwords.Upondeck
next:Mystory,‘ThePrecipice,’
willappearinNelsonDeMille’s
The Rich And The Dead,tobe
publishedbyGrandCentralin
April2011.”
Brian Hansberry ’88andhiswife,
Jessica,welcomednewdaughter,
AlexisGrace,March2010.Brianis
chiefmarketingofficerandgroup
VPofconsumerproductsforHJ
HeinzinPittsburgh,Penn.
Laurent Moquetisrisk,audit,
andcompliancedirectoratMarine
WorldBrandsinParis,France.He
joinedthecompanyayearagoafter
10yearsatThomson,theformer
Frenchelectronicsmanufacturer,
andhas“lovedeveryminuteofit.”
hewrites:“Mywife,Christine,and
I,havebeenbusilyraisingoursix
kids.Iwholeheartedlyinviteall
Cornell/JGSMalumniwhowould
travelthroughParistoletme
knowandcomeoverforadrinkor
dinner.”
Stephen R. Silverispastorof
theFirstCongregationalChurch
ofLebanon,N.H.(www.fccleb.
org)Heearnedamasterofliberal
artsandamasterofdivinity,both
fromHarvard,andisanordained
ministerintheUnitedChurchof
Christ.Steve,hiswifeRachel,their
son,Chip,andtheiryellowlab,
Henley,liveinNewHampshire’s
UpperValley.
Marc Weinstein ’84, MEng ’85,
isCOOofCaliforniaNatural
ProductsinLathrop,Calif.CNP
isafoodandbeverageproductand
ingredientsdeveloper,andcontract
manufacturingcompany,with
twoplantoperations.Marcsays,
“Ouringredientsbusinessprovides
organicandnaturalingredients…
fornutritionbarsand…cereals
andgranola.Ourasepticpackag-
ingoperationprovides…products
suchassoymilk,ricemilk,teas,
soups,nutritionalbeverages,and
wine,for…organicandnatural
foods,coffeehousesandwineries.
Werecentlylaunchedourown
brandedproducts,anatural
sustain-energyproteinbeverage
(Svelte)andawinefromorganic
grapes(CalNaturale).”Marcand
hiswife,Andie,andtwogirlsenjoy
theWestCoast.
C L A S S O F 1 9 8 7
Seth Bagshawwaspromotedto
VPandCFOofMKSInstruments
Inc.MKSisaglobalhigh-tech
companybasedinAndover,Mass.,
thatsuppliestechnologyusedin
thedevelopmentandproduction
ofequipmentforthesemicon-
ductorandsolarmarkets.Seth
livesinBoxford,Mass.,withhis
wife,Katherine,anddaughter,
Elizabeth,8.
C L A S S O F 1 9 9 1
Rob DonohoisVP,supplierdevel-
opment,forE&JGalloWinery,in
Modesto,Calif.,withresponsibil-
ityforallofGallo’spurchasingac-
tivity.Robisactiveinhischurch,
coachesyouthfootball,andchairs
thelocalUnitedWayEducation
Council.Heandhiswife,Becky,
andchildren,Katie,15,andJosh,
13,liveinRipon,Calif.
T H E
1990s
40 cor nell enter pr ise • fa ll 2010
C L A S S O F 1 9 9 6
James Chanisglobalforeign
exchangeandcapitalmarkets
manageratEstéeLauder,in
Melville,N.Y.Jameslivesin
GardenCity,N.Y
Lisa Capirose DeSteinjoined
fee-onlywealthmanagementfirm,
JoycePaynePartners,asafinancial
strategistintheirBethlehem,
Penn.office.
C L A S S O F 1 9 9 7
John Brimbleis“enjoying
puttinghisCornelleducationto
gooduse.”HeispresidentofIdeal
HealthITInc.,developing“anew
U.S.consultingfirmthatsupports
healthcareproviderswiththe
planning,implementation,and
operationofhealthITsystems”
JohnlivesandworksinSan
Diego,Calif.
Lee ClancyisseniorVPof
productmanagementanddirector
ofrevenueatIMVUInc.,aPalo
Alto-basedsocialentertainment
networkwheremembersuse3-D
avatarstomeetnewpeople,chat,
create,andplaywiththeirfriends.
LeeandhisfamilyliveinSan
Francisco.
C L A S S O F 1 9 9 8
Kelly Wardwaspromotedtocolo-
nel,andworksfortheSecretary
oftheArmyinitsrecentlyformed
officeofBusinessTransformation.
Heandhisfamilymovedfrom
theirlastassignmentatWestPoint
totheWashington,D.C.,area.
Histwinboys,KendallandKyle,
areWestPointcadets,andhis
daughter,Katherine,isinherfinal
yearattheAirForceAcademy.
According to Dan Tobin, many
American companies are experiencing
the beginning of a minor succession
crisis. “All of these baby boomers are
retiring,” Tobin explains, “and in many
companies, there aren’t people ready
to fill in the gaps.” Too often when top
management leaves, he says, CEOs
promote young stars to managerial
positions, only to discover they aren’t
yet up to the task. “They come in with
all the answers before they ask any
questions, and then the business goes
off a cliff.”
Huge corporations like GE have the
luxury of spending hundreds of millions
of dollars a year on employee develop-
ment. But what are smaller companies
to do? A corporate learning strategist
with more than thirty years’ experience, Tobin recently laid out his answers to that question in
a book published this September — Feeding Your Leadership Pipeline: How to Develop the Next
Generation of Leaders in Small to Mid-Size Companies.
While his program can be easily adjusted for any situation, the ideal program, Tobin says,
would run for one or two years, involve selected employees (what Tobin calls “hi-pos,” short for
“high potentials”) as well as senior managers, and have four components: formal education ses-
sions every quarter; action projects that allow participants to implement new skills immediately;
frequent assessments; and one-on-one mentoring that would allow for instruction tailored to
the individual. Participation would mean roughly a ten percent bump in workload, but Tobin says
most ambitious “hi-pos” consider that a small price to pay for a chance at jumpstarting their
career, and developing a network of other like-minded employees in their company.
By being savvy about spending, Tobin says he’s able to keep the cost of his program to
$5,000 per participant, a price that’s comparable to many week-long programs that focus on
only one topic. Don’t have money for an elite speaker? Tobin suggests approaching a junior fac-
ulty member at a nearby college with an interest in executive education. Big-name hotel chains
charging too much for meeting space? Look into conference centers or university facilities during
the summer.
Tobin spent many years training workers directly before shifting his focus to teaching others
how to design and implement their own programs. It’s a change he’s glad he made. Though he’s
a baby boomer himself, he isn’t leaving the work world anytime soon.
“I’m having too much fun,” he says. “I love what I do.”
– Mark Rader, MFA ’02
G R O O M I N G T H E N E X T G E N E R A T I O N
Dan Tobin, MPA ’74, MS ’76, PhD ’77:
of leaders
C L A S S
41w w w.johnson.cor nell .edu
C L A S S O F 1 9 9 9
Geoff Archersays,“LastmonthI
raisedaglasswithJason Seigalin
London(onmywaytoleadanun-
dergradstudenttriptoEastAfrica
visitingTroy Holmberg’sCoast
CoconutFarms,YehuMicrofi-
nanceTrust,etc.)…Jasonlooks
greatandmakesmewanttomake
aportmanteauoutofsarcasticand
fantastic,butintheendIamtoo
lazytoworkthatoneout.”
Justin Bakuleisinfinanceand
privateclientservicesatFSGSocial
ImpactAdvisorsinBoston.He
reportsthateveryoneishealthy
andhappy,andhisdaughter,
Grace,isnowalmosttwo.
Chris Bassler ’88isasenior
consultantwithCogentConsult-
inginDanbury,Conn.Heand
hiswifearerenovating“whatwas
originallyasummerlakehouse…
asakitchenandbathdesignershe’s
havingfunwiththeproject,and
Imayhavefoundasecondcareer
asaplumber!Ofcourseworkhas
beenbusierthaneverwithseveral
tripstoIstanbulandMexicoCity
slowingprogressontherenovation,
butit’sallgood.”
Paul Belle Isle ’90issenior
director,loyaltyandretention,at
CharterCommunicationsinSaint
Louis.Hesays,“I’vebeendoinga
fairamountoftravelingandsome
speakingatmarketingconfer-
ences.IranintoGlenn Squire,in
virtualfashion,whenIfoundout
heisnowworkingforEpsilon,the
companythatprovidesmarketing
servicesforoneoftheprogramsI
run!”Onthepersonalfront,heis
“strugglingwithsomeinjuries,but
tryingtotrainforakarateeventin
Augustandmy5thdegreeblack
belttest.”Hiswife,Amy,runs
OperationShowerwithtwoother
women,providingbabyshowersin
aboxforwomenwhosehusbands
aredeployedservicemen.
Sarah BrubachermarriedGeoff
McDonaldJune26,atMission
RanchinCarmel,Calif.She
reports,“Thegroom(andmost
ofhisfamily)wereinkilts,we
hadabagpiper,andwewere
marriedinfrontofapasture
filledwithsheep.”Classmatesand
spousesinattendancewereJoe
andDeb King Garber,Justin
Bakule,EvanandMarianne
Danko Diamond ’93,Yvonne
Hsu ’93andDarrenPalmet’93,
Tami andDan Gordon,Laura
Sullivan,Alex Ghebru,Katie
Meredith,BillandMolly Rihn
Meyer,PeteandMarie Cotier,
Shannon MonigalWadsworth
andJohnWadsworth.“Iffolks
areinterested(andasthebrideI
reallyamnotobjectiveonthis),
I’mhappytosharetheslideshow”
(www.scottcampbellphoto.com/
slideshow/brubachermcdonald).
Sarahisseniorpolicymanager,
trustandsafety,witheBayinSan
Jose,Calif.
Marshall Chapinisseniordirector
ofmarketingwithEnerNOCin
Boston.HereportedthatinJuly
heandAndy Orth,Dave Benini,
andJustin Bakuledidaweekend
mountainbikingandcamping
trip“totheNortheastKingdom
ofVermont…agoodtimewashad
byall.”
Scott Chartierstartedanewjob
asmarketingdirectorforthenewly
formedconsumerproductsdivision
ofMerck,createdfromtheacquisi-
tionofSchering-Plough.Hesays,
“IamstilllocatedinMontrealand
amacozythree-minutecommute
toourWestIslandofficelocation.
BrandsinmyportfolioincludeDr.
Scholl’s,Tinactin,Drixoral,Mi-
ralax,andMuskol.”Onthefamily
front,Scott’sdaughters,Colette,
11,andRemi,9,“aredoinggreat,”
andhiswife,Ariane,“isgaining
tractioninherconsultingbusiness,
focusingonregionalB-to-Bsix
sigmaandsoftwareimplementa-
tionprojects.”
Marie Wheeler Cotierwas
cheeredonbyseveralJohnson
alumniduringherBostonMara-
thonrace,inwhichshe“finished
rightnear3:32.”
Bill Creech,aseniormanagerwith
SunMicrosystems,says,“I’mnow
withOracleaftertheSunacquisi-
tion,sogreatnewsthere.”Hehas
relocatedtoSouthernCalif.
JD Creedonreportsheisstillwith
GlassHouseTechnologies,global
providerofdatacenterconsulting
andmanagedservices.Hewrites:
“WehavefiledourS1inthehopes
ofgoingpublicatsomepoint,
whichwouldbeexciting.Mynew
jobisrunningourWorldWide
channelbusiness,whichisgreat
fun,andwearenowapproach-
ing700folksaroundtheworld,
whichisamazing.”JD,hiswife,
Suzannah(Johnson)’92,andtheir
childrenmovedbacktotheU.S.
fromtheU.K.lastsummer.The
childrenlovetheirnewschoolsand
JDisplanningtorideinthePan
MassChallenge(raisingmoney
forcancerresearch)inhonorofhis
father,whopassedawayinJune.
Jonathan DarcyandDonna
Petersarebothpartnersfocused
onhealthcareatAccenture
ManagementConsultingand
activeinrecruitingattheJohnson
School.Theysay,“Wearebased
inAtlantaandlivefromvacation
tovacation—42countriesand
counting.”Theysharetheirhome
with“KennyandDublin…Russian
Bluefelineadoptees.”
Luis del Vallesays,“Ireturned
fromHornofAfricainMarch
andout-processedfromthe
MarineCorpsbackintothe
reserves.Istartedworkingagain
atInternationalPowerandthe
bignewsisthatIPisgoingtobe
acquiredbyGDFSuez,another
independentpowerproducerwith
U.S.headquartersinHouston…
lookslikemystayinNewYork
Citywillbecomingtoanendat
thetimeoftheacquisition.”
Piet Demeesterandhiswife,Ilse,
announcethebirthofadaughter,
Alice,May19:“Aliceisdoing
verywell,andwithherhealthy
appetite,contributingherfair
sharetoeconomicrecovery.”Piet
isanindependentITconsultant,
specializingincustomerrelation-
shipmanagement.Heandhis
familyliveinTienen,Belgium.He
says,“Afterseveralyearsworking
inGermany,Iamnowworking
withtheBelgianPostinBrussels,
andthusclosetohome.”
Michael de la Cruz,hiswife,
Paula Uribe-Echevarria, MBA
’98,andchildren,Isabela,Emma,
Maya,andQueen,movedbackto
theSanFranciscoBayareaafterhe
completedafive-yearexpatassign-
mentforIntelinShanghai,China.
Michaelmanagesateamfocused
ondrivingtheadoptionoflow-cost
PCsandclassroomsolutionsin
theeducationmarketworldwide,
aspartofIntel’sWorldAhead
businessdevelopmentorganization.
Helooksforwardtore-discovering
lifeintheU.S.,saying,“itwilltake
usmonthstomakeitdownallthe
aislesatCostco.”
Deborah King GarberandJoe
GarberreportthatJoeisstillAVP
forRenewData,whileDeborah
worksinHewlett-Packard’slaser
division.Theyanddaughter,
Sydney,liveinBoise,Idaho.
42 cor nell enter pr ise • fa ll 2010
C L A S S O F 2 0 0 0
Charlotte Yeisthefounderand
CEOofwebcars.com.cn.Shelives
inBeijing,China.
C L A S S O F 2 0 0 1
David Bloom isCEOofNaama
NetworksInc.Heandhiswife,
Naama Ashkenazi, MBA ’03,
welcomedanewdaughterin
June.Davidlaunchedhisstartup
thisyearandwasselectedto
demoattheWeb2.0Expo.He
says,“Notmuchdowntimebut
nocomplaints.”
Susie Welgos Christensen,
MILR ’01andherhusband,
Ken Christensen ’95, MBA ’02,
welcomedtheirthirdchild,Todd
Kenneth,inMarch;Toddjoins
bigbrother,Danny,andbigsister,
Ali.Susieworksafewhoursaweek
fromhomeasabuyerforanonline
retailcompany,MadAthlete.com;
teacheskickboxingonceaweek;
anddoesHRconsultingonanad
hocbasis.
Scott Hansingwaspromoted
tocategorymanager,marketing
director,fortheRaidInsecticide
brandatS.C.Johnson&Son,
Inc.,andrecentlycompletedasales
assignmentwiththecompany’s
salesteamatTargetCorp.in
Minneapolis.Heandhiswife,
Krista,andtheirfourchildrenlive
inRacine,Wisc.
ThefamilytookatriptoHawaii
inMay,whereSydneylearned
thehula,andnowwantstobe
ahuladancerwhenshegrows
up.Deborahsaysthat’s“agood
aspirationforathreeyearold–I’m
sureyoucangetaBAfromCornell
andstillhula.”
Susan Menkhaus Jaffeworks
forLink-GS,aheadhuntingand
recruitingfirmfocusingonthe
financialsector.Shesays,“Iam
hopingtojumpstartanewphase
inmyprofessionallife.”Susanand
husband,Scott Jaffe, MBA ’98,
haveadaughter,Ellie,6,andason,
Hank,4.
Mike Keoghandhisfamilymoved
toBeijinglastyearafterfouryears
inthePhilippines.Hesays,“Some
partnersandIarestartingupan
Asia-focusedrealestateventure.If
anyoneisinterested,letmeknow.”
Molly Rihn Meyerspendsher
days“chasingthree-year-old
Evanand20-month-oldEllie.”
Sheenjoyedseeingclassmatesat
theBrubacherwedding,andshe
andhusband,Bill,ranintoDave
Aronicaandhiswifeataparty.
Shesays,“wishIcouldseemoreof
youmoreoften!”
Tom Mikulka ’90isdirectorof
marketingforIDEXXLabora-
toriesinWestbrook,Maine,and
spendsalotofhistimetraveling
toEurope.Hesays,“Ididget
stuckfromthevolcanoandhadto
drivefromMontpelliertoBarce-
lonatocatchaflighthome.Driv-
ingthroughBarcelonawithouta
GPSisnotrecommended!”When
heishomeinCapeElizabeth,he
managesagirls’softballteamand
aT-ballteam.
Steve Miskaisacaptaininthe
U.S.Army,andworksforthe
NationalSecurityCouncilin
Washington,D.C.,asadirectorfor
Iraq,focusingonmilitarypolicy.
Steve,hiswife,Amy,andchildren,
HeatherandRob,movedfrom
Frankfurt,Germany,toFairfax,
Va.,whereAmyplanstopursue
hermastersinreadingandliteracy
afterhavingtaughtthirdgrade
fortheDepartmentofDefense
SchoolsinGermany.
Scott Neuman ’93isdirectorof
globalmarketingandcompetitive
strategyforIBM’sLotusSoftware
business.Hiswife,Amy(Karlen)
’93,hasstartedanot-for-profit
organizationcalled“Inspiring
Kids”thathelpselementaryschools
educateandempowerkidstomake
adifferenceinlocal,national,
andglobalcommunitiesthrough
environmentalstewardshipand
studentphilanthropy.Scottand
AmyliveinNorwich,Vt.
Alex Sapundshiev ’96andhis
familyrelocatedfromDubai
toWatford,U.K.,whereAlex
worksintherealestateprincipal
transactionsgroupatHilton
Worldwide.Heandhisfamily
tookarecentholidayinTurkey,
“wherethekidsshoweddaddy
howtoplaygolf.”Son,Alex,
attendsaFrenchprimaryschool
andis“theonlyonewhospeaks
Frenchinthefamily;daughter,
Emma,enjoysthecompanyof
grandmas,cousins,andaunts
whileIamawayonbusiness.”
Josh Sitzer andhiswife,Amy,
welcomedadaughter,ZoeDolo-
res,July23.Zoejoinsbigbrother
Eli,4.ThefamilylivesinKansas
City,Mo.,whereJosh’sstart-up,
JavaGogo,aspecialtycoffee
drive-thruretailer,hasgrown
tothreelocations.Joshisalsoa
marketingdirectoratHandmark,
adeveloperanddistributorof
Smartphoneapplications.
Marshall L. Stocker ’97isa
foundingandmanagingmember
ofEmergentPropertyAdvisors,a
privateequityfirmthatmanages
foreigndirectinvestmentsinthe
redevelopmentofurban,emerging
marketrealestatewithincountries
undergoingeconomicliberaliza-
tion:“Forthisreason,Iamnow
livinginCairo,Egypt,75percent
ofthetime.”Marshallandhiswife
haveahouseonthesouthshoreof
Massachusettswherehespendsthe
remainderofhistimenotfilledby
researchtraveltoothercountries.
Evren Pacalioglu Toreandher
husbandwelcomedadaughter,
Leyla,inDecember2009,and
have“beenaskingourselveswhy
wewaitedallthistime.”Thefam-
ilylivesinLondon,whereEvren
worksforGoldmanSachs.
Shannon Monigal Wadsworth
ownsCoronadelMarFlorist,in
CoronadelMar,Calif.Sheand
herhusband,andsons,5and7
yearsold,liveinNewportBeach.
Theyare“finalizingdetailson
ournewhouse…directlynext
doortoourcurrenthouse,which
makesoverseeingtheconstruc-
tionbotheasyanddifficult…we
plantolistthehousewe’rein…
hopefullythehousingmarket
makesadramaticrebound!”
T H E
2000s
C L A S S
43w w w.johnson.cor nell .edu
Susan Krische, MS ’01, PhD
’02,isanassociateprofessorat
theKogodSchoolofBusinessat
AmericanUniversityinWashing-
ton,D.C.
Nobuharu Kumagai isasenior
venturepartner,advancedtechnol-
ogygroup,withJAICVenturesin
Tokyo,Japan
Brian J. Thomaswaspromoted
tomarketmanagerfortheJ.P.
Morganprivatebankingbusiness
inSt.Louis,Mo.
C L A S S O F 2 0 0 2
Tom Schryver ’93isCFO,e2e
Materials.BasedinIthacaN.Y.,
e2eMaterialsmanufactures
petroleum-free,biodegradable
composites—sustainablebuilding
materialsthatarestronger,lighter,
andcheaperthancompositesfilling
landfillstoday.Tomsays,“Ithink
anydecentbusinesspersonhas
tobeconcernedaboutlong-term
trends.Andthat’swhat‘sustain-
ability’istome.”
C L A S S O F 2 0 0 3
Heather Abbott ’98joined
BedandBreakfast.com,thelargest
onlineB&Bdirectory,asdirector,
giftcardprogram.Heatherlives
andworksinAustin,Texas.
C L A S S O F 2 0 0 4
Joseph J. Bridy isapartnerat
HamlinCapitalManagementLLC,
inNewYorkCity.Hewaselectedin
Maytoasix-yeartermontheBerea
Collegeboardoftrustees.
Sujit Jha,wasnamedadirectorof
Bostonconsultingfirm,Altman
Vilandrie&Co.,agrowing
companythatfocusesonthecom-
munications,media,cleantech,
andrelatedtechnologysectors.
Keigo Kuroda can tell you firsthand that prudence
pays off. A director with the Blackstone Real Estate
Group’s Tokyo office since 2007, Kuroda and his col-
leagues not only survived the downturn in the global real estate market over the past few years,
but have come out ahead of the game, by holding onto only the best vintage assets, and being
cautious about purchasing new assets.
After an especially rocky
2009, many new deals have
emerged in the U.S. in the
past year, says Kuroda. Less
so in Japan. “Even if there
is a deal, most of them are
sold through an auction
process, and the pricing can
be challenging as there are so
many low-cost players here.”
This past July, Kuroda and two
other members of the Tokyo
team did make an exclusive
deal he is proud of — one
of the largest structured
real-estate debt transactions
in the Japanese market, purchased from an investment bank “at a very attractive basis.” But
more and more, Kuroda says, his office has been working closely with the Hong Kong office,
which mainly covers Greater China on cross-border deals in China, Japan, and other parts of Asia.
“Japan is suffering from a decreasing population, aging society, and 20-year deflation,” says
Kuroda. “There are a lot of good reasons why smart investors are putting money in the Chinese
market instead.”
Though business in his Tokyo office is conducted in either Japanese or English, Kuroda has
recently started to learn Chinese as a way of showing his positive attitude towards the country
and its culture. Lessons are every Saturday morning at a school near his downtown office.
Recently, he tested his vocabulary while out for dinner and drinks with some Chinese clients. “I
tried phrases like ‘Nice to meet you,’ and ‘This dish is very delicious’ — very simple things,” says
Kuroda. “They seemed glad that I’m trying.”
While Kuroda hopes to improve his grasp of the language enough that he can eventually speak
Chinese in a business setting, he’s finding himself strapped for time. His three-person office may
soon be integrating another large real estate platform in Asia, and creating a larger office. Also,
a year ago, Kuroda’s first child was born — a daughter named Nanako. She isn’t speaking quite
yet, but when’s she’s ready, Kuroda says he’s going to help her learn all three of the languages he
speaks. “For the next generation,” he says. “English alone won’t be enough.”
– Mark Rader, MFA ’02
A D A P T I N G T O
Keigo Kuroda, MBA ’00:
succeed
Keigo Kuroda, MBA ’00, with his wife, Natsuko, and daughter, Nanako, at Mount Fuji.
44 cor nell enter pr ise • fa ll 2010
C L A S S O F 2 0 0 5
Rick Adams (E)isthecorporate
controlleratByramHealthcare
anddoesbusinessconsultingon
theside.He’salso,“helpingsome
friendsgettheirITstaffaugmenta-
tionbusinessstarted.”Rickworks
inWhitePlains,andlivesin
Suffern,N.Y.
Carmen Akella (E)isaproduct
managerwithThomsonReuters,
basedinNewYorkCity.She
writesthathertwins,Caraand
Marc,turned3andhavestarted
preschool.Carmenis“working
towardstartingachildren’scenter,
focusingonenrichmentand
development,in2011…moreto
comeonthatlaterthisyear.”
Keith Carter (E)managessupply
chainintelligencewithinEstée
Lauder.Hewrites,“Emmanuel
(BabyQ)isnow6andgoingto
firstgrade,Lukeis4andentering
kindergarten…Emmanuelhas
beencreatingavideogamein3D
whichworksinaWebbrowserand
ontheAppleiPad…Weallhave
seenBabyQhelpingKeithwith
stats,butitlookslikehe’llsoonbe
earningKeithalotofmoneytoo.”
Kam Chang (E)isportfolio
manager,clientCIO,atPromark
Global,managingoverseas
investmentadvisorybusiness.Kam
isbasedinLondon,Englandbut
is“lookingforwardtomoving
backhometoNewYorkCity
inDecember…wehavebecome
seasonsticketholdersandsupport-
ersofChelsea’sFootball(soccer)
ClubbutstillwatcheveryYankee
gamewithSlingbox,thegreatest
inventionever!”
Scott Foster (E)ismanaging
principal,performancesolutions
practice,withGEHealthCare,
basedinSouthbury,Conn.His
oldestdaughterisstartingher
If you think dropped calls and dial-up modems
are a hassle, Hilary Cox Maxson would invite you
to spend some time in Cameroon. A resident of
Douala, Cameroon’s largest commercial city, since January of 2010, Maxson has experienced the
frustrations of an emerging market power grid firsthand. As CFO of AES Africa, the sole provider
of electricity in Cameroon, she’s working hard to make that power grid more reliable — and more
accessible to the country’s 18 million citizens.
Nine years ago, AES (formerly Allied Energy
Systems) paid Cameroon’s government $72
million for a majority stake in AES Sonel, the
country’s sole energy provider, understand-
ing that additional investments would be
necessary to upgrade the nation’s energy
infrastructure. The challenges to moderniza-
tion are many, Maxson says. As is common in
many emerging market countries, transmission
towers are sometimes stripped for parts,
and illegal power networks provide energy to
entire communities in the larger cities. The
small power stations which provide energy for
the televisions, light fixtures, and occasional
refrigerator in remote villages run on heavy fuel
oil, and unpaved roads mean fuel delivery can
take days. Then there is the messy matter of
collecting payment. “Since it’s a cash society here, it’s a big challenge,” Maxson says. “You have
people walking for miles to make a payment, and then waiting in line for hours in 100-degree heat.”
Slowly, Maxson says, conditions and services are improving. With the help of a 260-million-euro
loan provided by a consortium of multilaterals, AES has begun renovating the country’s largest
hydro plants, rebuilding power lines, adding more collections agents, and connecting many remote
outposts to the main grid. Last year 60,000 new power connections were made, and the com-
pany’s growth rate is a robust 9 percent. “A process-oriented way of doing business is still new
here,” Maxson says. “But we feel the changes we’re making in budgeting and planning can make a
real difference.”
Maxson says she and her husband miss going to the movies (there are no cinemas in Cam-
eroon), but she raves about the abundance of fresh local food at the markets and the white and
black sand beaches. And after years of living in one-bedroom apartments in New York City and
Washington, D.C., Maxson is enjoying the pleasures of living in a house equipped with first-world
amenities. “That’s our joke,” Maxson says. “We had to move to Central Africa to get our first wash-
ing machine.”
– Mark Rader, MFA ’02
Hilary Cox Maxson, MBA ’05:
G R O W I N G
the grid
C L A S S
45w w w.johnson.cor nell .edu
NewYorkCity,“thoughnotat
thesametime.”Rockyisbuilding
theglobalstrategyconsultingand
coachingbusinessthathesetup
inLondontwoyearsago,andis
“busyincubatingsomeexciting
companiesinmobileappdevelop-
mentandgarmentsourcing,and
slowlybuildingadditionallinesof
businessesandpresenceindifferent
partsoftheworld.”Onthefamily
side,“Ethanisthree-and-a-half
yearsold,andhe’sparticularly
proudofthe‘half ’part.He’sgota
veryinquisitivemind…I’vebarely
beenkeepingup.”
C L A S S O F 2 0 0 6
Rachel Peris Ash ’99andEthan
Ash’01liveinIthacawiththeir
son,Eli,one.Rachelisthe
managerofcorporateandfounda-
tionaffairsforCornell’sSchoolof
HotelAdministration.
Venu Ayalaandhiswife,Vasan-
tha,welcomeddaughter,Varsha,in
December.Shejoinsbigbrother,
Vinay,whois“ecstatic.”Venuis
aprincipalwithSRATouchstone
ConsultinginWashington,D.C.
senioryearofhighschool,andis
lookingatcolleges.
Phil Garton (E) isCFOfor
SpringsWindowFashions,and
livesandworksinMiddleton,
Wisc.AstowhyWisconsin,he
sayshewasadvisedtolookup
“bestplacestoliveintheU.S.A…
andthereitwas,asuburbof
Madison.”PhilandhiswifeKim,
havefourchildren:Keiffer,21,
isstartinghissenioryearatthe
UniversityofPennsylvania,andis
QBandcaptainoftheirfootball
team;Amanda,18,isatcollegein
Iowastudyingnursing;Natalie,
10,speaks3languages;Preston,6,
startsfootballthisfall.
Troy Glover (E)isVPandCOO
ofNewYorkLife’slong-term-care
operation,andlivesandworks
inAustin,Texas:“Greatcity!”
Hisdaughter,Lauren,isstarting
secondgrade.
Akbar Khan (E)isanaccount
executiveatLibertyMutual,
responsiblefornewbusinesssales
toNortheast-basedFortune500
corporations,andbasedinNew
YorkCity.Hisson,Amaan,“isa
worldoffunat18months,though
we’restilladjusting.”
Xin Li (E) andherfamily“relo-
catedduetomyhusband’sexpat
assignment.WillbeinTaiwan
foracoupleofyears.”Xinworks
half-timeforCornellUniversity
Library,focusingonexpanding
partnershipsinAsia.Shehopes“to
experiencesomeChinesecultureI
didn’tknow.Heardthereareexcel-
lenthotspringsnearourresidence
butIneedtofindoutwhere.”
Rocky Russell (E)ismanaging
directorofStructuredInsights
Ltd.HerelocatedfromLondon,
U.K.,toNorthAmerica,and
willbebasedoutofTorontoand
thistransition.TheAccelerated
MBAprogramwasverytimelyand
providedthemuchneededcareer
changeIwaslookingfor.”
Hetal Patelisdirectorofcorporate
strategyanddevelopmentwith
SNCLavalininMontreal,Canada.
David Tsui andJudySinwere
marriedMay29inSausalito,Calif.
TheyliveinNewYorkCitywith
dogsBusterandFelicia.Davidis
adirectorofCapstoneAdvisory
GroupLLC.
C L A S S O F 2 0 0 9
Muqtadar Ahmedgotmarried
twomonthsaftergraduation.Ten
daysafterthat,hestartedwork
withAccentureasaconsultantin
theirHoustonoffice
Ruchit Agarwal worksforAetna
inthecorporatefinancegroupin
Hartford,Conn.
Saif AjanilaunchedAssetize
(http://assetize.com)inMay,part
ofaVICincubatorprogramin
Toronto.Hesays,“Thefactthat
we’reaTwitter-focusedadnetwork
(withallthebuzz)hasgottenus
somegreatmediacoverage.”
Nad AjlaniandJoanna Chen
areinSingapore,“stillhappy,still
workingwiththefamily…wejust
boughtanapartment…ranthe
StandardChartered10kmracelast
December…nextchallenge—our
VerticalMarathon…whereweget
toraceupa63-storybuildingwith
acouplehundredotherpeopleina
stuffystairwell.”
Karen Albrightisamarket-
ingdirectoratTravelersCo.in
Hartford,Conn.She“starteda
newassignment…innationalauto
insurancestrategy,whereIwill
bedesigningnewcarinsurance
productsandenhancements.”
RickGrodinisVP,business
development,attheBroadlane
Group,aleadingend-to-endcost-
managementpartnerforhealthcare
providers.Heworkscloselywith
theexecutivemanagementteam
andTowerBrookCapitaltoexecute
strategicpartnershipandM&A
opportunities.Rick,hiswife,
Hallie,andsonJackliveinNew
YorkCity.
Mark HerrmannisVP,structured
dealsandfundamentals,with
NRGEnergyInc.inPrinceton,
N.J.HelivesinYardley,Penn.
Hasan Husain isseniordirector,
alliancemanagement,withSepra-
corInc.inMarlborough,Mass.
HasanlivesinMedway,Mass
Raymond Karrenbaueris
EVPandCIOofAxisGroup
inHartford,Conn.Helivesin
Glastonbury,Conn.
Savita Kini,amarketingmanager
withCiscoinBangalore,India,
writes:“Sincemovingback,Ihave
beenabletoleveragemyexperience
andexposureatCornell,especially
onentrepreneurshipandtechnol-
ogymanagement,invariousways.
IhavetaughtatIndianInstitute
ofManagement,Bangalore,and
InternationalInstituteofInforma-
tionTechnology,Bangalore,on
subjects[ranging]frominnovation,
technology,marketingandstrate-
giesfornewentrepreneurs.Ihave
beenabletonetworkwithinthe
localentrepreneurialcommunity.
InmycurrentroleatCisco,Iput
manyofthebestpracticestouse,
asCiscohasaveryentrepreneurial
culture.Ihavebeenabletomentor
youngengineersatCiscoontheir
MBAplansortransitionfrom
engineeringtobusiness.Ithasbeen
averyfulfillingexperience.Ioweit
tomyprofessorsandmyclassmates
atCornellforhelpingmewith
46 cor nell enter pr ise • fa ll 2010
Roy Ashokisabusinessdevelop-
mentmanagerwithQualcomm
Inc.inSanDiego,Calif.He
sayshewas“rattledbytherecent
earthquakehere.”
Hedieh Bolourworksinwealth
managementforWellsFargo
InvestmentsinLosAngeles,Calif.
Hediehis“enjoyingtheniceCali
weatherwithmyweeklyrunson
thebeach.”
Navara Boon-Longworks
forStandardCharteredBank,
Bangkok,intheirwholesale
bankingdivision.
Kate Caposselaisanassociate
productdirectoratJohnson&
Johnson.ShelivesinPhiladelphia.
Annie Cheng worksforJPMor-
ganPrivateBankinHongKong.
Sheisontheproductsolutions
desk,helpingtoformulatevarious
investmentsolutionsforclients.
Michelle Colban livesinPhila-
delphia,wheresheisanassociate
brandmanagerattheCampbell
SoupCompany,workingonthe
V8juicebrand.
Sam Dadgari isaportfolioman-
ager,diversifiedfinancialservices,
withAmericanExpress.
John Doughertygotmarried
August8inRyeBeach,N.H.He
isaseniorassociateatPricewa-
terhouseCoopers,mergersand
acquisitionspractice,inNew
YorkCity.
Ben FieldingworksforNewYork
Life.Hesays,“Workhasgone
verywell,butmoreimportantly,
Ellahasturnedone-year-oldand
isthriving.”Ben,hiswife,Lauren,
andEllaliveinBrooklyn.
Andrea Findley, MPA’09,isa
strategyconsultantwithAccenture
inNewYorkCity.
Eric Fish sendsanupdate,saying,
“Gretchen,Ezra,andIaredoing
justfineinNewYorkCity.Ezrais
now15months,andshe’swalking
allovertheplace,climbingon
anythingshecanreach,andgener-
allybeingamenace.”
Scott Foresterisassistantchief
ofstafftotheCEOofCorning,
Corning,N.Y.
Roop GhangaslivesinChicago,
wheresheworksforUnitedAirlines.
Taryn Goodman ’00isimpact
investingmanagerofRSFSocial
Finance,aSanFranciscofirm
thatoffersinvestingandlending
servicestoindividualsandenter-
prisescommittedtoimproving
thesocietyandtheenvironment.
Shemanagesthreeportfolios,
andisinvolvedinlaunching
RSF’sProgram-RelatedInvesting
(PRI)fund.
Tim Hlavacek isAVP,business
development,inBankofAmerica’s
equitiesstrategygroupinNew
YorkCity.BeforemovingtoBank
ofAmerica,hewasananalystat
Grant’sInterestRateObserver.
Seong “Jimmy” Hongwrites
fromSeoul,“SinceJuly,2009,I
havebeenworkingwithKorea
Investment&SecuritiesCo.Ltd.,
KoreanlocalIB.Althoughitwasn’t
thebesttiming,Ijoinedthereal
estateprojectfinancingteamand
amdoingwellsofar.”
Jimmy Huisafinancecontrol-
lerwithJohnson&Johnsonin
Beijing.Hesays,“Chinaoffersa
veryexcitingandinterestinglife
styleandIwasreallyimpressedby
thedynamiceconomyheretoo.”
Goodspeed Hua-Jungisastrate-
gicprojectmanagerwithAnalog
DevicesintheBostonarea.
Dan Humphreyisaclientservices
manageratMedalliaInc.inMenlo
Park,Calif.
Brandon Jacobsonworksfor
Deloitte,andtravelstoChicago
whereheisworkingonaproject.
Heandhiswife,Amy,MA’07,live
inNewYorkCity.
Jeff JohnsonandBethany Caster
liveintheBeaconHillneighbor-
hoodofBoston.Jeffisaconsultant
inAccenture’sITconsulting
practice,andhisworktakeshimto
Hartford,Chicago,andNewYork
City.Bethanydoessell-sideequity
researchatRaymondJames&
Associates,Boston.
Kevin Johnsonandhiswife
welcomedadaughter,AvaSophia,
inDecember2009.Kevinandhis
familyliveinChicago,whereheis
aclean-technologyleadershipas-
sociatewithAcciona,anon-profit
environmentalcompany.
Ryan Kelleywritesfrom
Madagascar,“Iofficiallytook
overmanagementofToughStuff
Madagascar(www.toughstuffon-
line.com)inJan.2010.Business
hasbeengrowing,albeitataslower
rateduetopoliticalcoupattempts.
Ifonlytheelective,‘Startupsin
FailedStates’hadbeenoffered.
ButIwasratherwellpreparedfor
developingmodelstodeliversolar
energyproductstoruralvillagers.”
Ines Lamwrites,“Ihavefinally
movedtoShanghaiandstartedmy
newlifehereworkingasanacquisi-
tionanddevelopmentassociatefor
TishmanSpeyer.”
Simon Lee writes,“Iamin
Manila,Philippines…stillworking
forAsianDevelopmentBankand
amplanningtocontinuetowork
here.”
Steve Lee writesfromHongKong,
“Ping Shen (Accenture,SanFran-
cisco)andI(BankofAmerica/
MerrillLynch)justreturnedfrom
aquickfishingtripinOahu,
Hawaii…highlightsincluded
catchingbonefish,barracuda,and
aspottedeagleray…Skillsgleaned
fromJGSM,combinedwithour
briefworkexperience(strategy
consultantandbondsalesman),
helpedusovercomesometough
anglingconditions.”
LindsayandWesley Lehman
“spentthesummerinthesunny
Southandwelcomedason,Henry
Graham,totheworldonJune
12….lovingeveryminuteof
parenthood…spentthelastcouple
monthsgettingsettledintoour
newhomeinChicago.”
Sandeep Mankikar worksforJNJ
MedicalinMumbai,India,onan
internationalassignmentinthe
globalmarketingfranchiseatEthi-
conEndo-SurgeryInc.,with“some
ofthesmartestmarketingminds
inthebusiness.”Hewrotefrom
Cincinnati,wherehewas“undergo-
inganawesometraining—have
performedlivesurgeriesmyselfand
learnedahugeamountofanatomy
andsurgicalprocedures.”
C L A S S
47w w w.johnson.cor nell .edu
Peter Marmer isamanagerfor
Wal-MartStoresInc.inBenton-
ville,Ark.Hesays,“Icontinue
toenjoymyjob…andhavebeen
exposedtosomeprettycool
projects.Outsideofwork,Ihave
keptbusyattendingrodeos,horse
races,monstertruckbashes,goat
costumecontests,and,more
recently,NASCAR.”
Karen Martin worksforProctor
andGamble,ontheSwifferbrand.
ShewritesfromCincinnati:“Ilove
myjobatP&G!It’saglobalrole
withthejusttherightamountof
travel;Irecentlycamebackfrom
atriptoGenevaforoneofmy
projects.I’mtrainingformyfirst
triathlon.”
Jennelle MoorelivesinMil-
waukee,Wisc.,andworksasan
assistantbrandmanagerforS.C.
Johnson&Son,Inc.
Saurabh Mundhrais“happily
engagedinmarketingactivities
forhisnewventure,developing
asalespipelineandconnecting
withcustomersinIndia’sbooming
infrastructuresector—highways,
ports,andpowerplants….recently
returnedfromKrabiinThailand…
highlightwasclimbing1,237steps
uptotheTigerCaveTemplefor
spectacularviewsandamagnifi-
centBuddhastatueoverlooking
thevalley.”
Shunji NakaireturnedtoJapanto
workforhissponsoringcompany,
NipponLifeInsurance,Tokyo.
Susan Ngoisaseniorconsultant
withDeloitteConsultingin
Seattle.SheandKris Woolery
“havehadlotsoffunexploringthe
cityandmeetingnewpeople,”and
shemakesatriptoDallaseach
weektoworkwithaclient.
A private wealth advisor and vice president at
Goldman Sachs since 2006, Candace Davies
and her team work with a wide range of clients,
including individuals, family estates, non-profits, and corporate endowments. It’s a position, she
says, that requires “strict adherence to a long-term plan, even when that’s hard to do.” Outside
of the office, Davies has begun taking on a different sort of endurance challenge: training for and
participating in marathon runs and bike events, all for the sake of charity.
Davies says she “caught the charity-
endurance-event bug” in the summer of
2009, when she joined Goldman Sachs’
Bike MS (Multiple Sclerosis) Team. Her
initial motivation for joining was finding a
sense of community. However, when her
father suffered a stroke on the day she
had organized a major fundraiser for the
National MS Society, Davies’ sense of
purpose intensified; although she didn’t
know anyone battling MS personally, she
now understood more acutely the pain of
seeing a loved one struggle with serious
health issues. Thanks to her and her
teammates, Goldman Sachs raised nearly
$250,000 — more than any of the other
companies participating nationwide. As
a reward, the team got the opportunity
to ring the opening bell at the New York
Stock Exchange, “an awesome experience,” Davies says.
Simultaneously, Davies began training for her first marathon with the Lymphoma and Leu-
kemia Foundation’s Team in Training, inspired by her father’s courageous fight to recover from
his stroke. Every Saturday morning throughout the winter, even the frigid morning following a
record-setting February blizzard, she and her team put in time on the sidewalks of Manhattan. On
a morning that was too icy to run outside, Davies, undeterred, ran 14 miles on the treadmill. All
her hard work paid off: On April 11, Davies crossed the marathon’s finish line in Paris, and shortly
after, the Lymphoma and Leukemia Society received a check for more than $450,000 from the
New York City team, to be put towards blood cancer research and patient services.
This winter will find Davies training for another marathon-for-charity — this one in Miami.
She’s doing it for donations, of course, but also because she has come to treasure the camara-
derie she has with her fellow runners.
“The reputation runners have is that they’re upbeat,” Davies says. “This group is that and
more. They’re the most inspiring, beautiful people.”
– Mark Rader, MFA ’02
L O N G D I S T A N C E
Candace Davies ’00, MBA ’06:
48 cor nell enter pr ise • fa ll 2010
Frank A. Wisehartwasappointed
directorofthebusinessadvi-
soryservicespracticeatSchneider
Downs&Co.inColumbus,Ohio.
SchneiderDownsisoneofthetop
50largestpublicaccountingfirms
intheU.S.
Rob Woodsworksincredit
tradingforCreditAgricoleinNew
YorkCity,afterhavingspenta
yearinBlackrockInc.’sportfolio
managementgroup.
Kris Wooleryisastrategistat
Wunderman,TeamMicrosoft,in
Seattleandis“curiouswheremy
newcareerpathwillleadme,both
professionallyandgeographically.”
Outsideofwork,Krisisinvolved
withRisen’Shine,whichprovides
servicesandprogramsforchildren
affectedbyHIV/AIDS.
Richard Yu coversrealestateand
diversifiedsectorsforGenuityCap-
italMarkets,aTorontoboutique
investmentbankrecentlyacquired
byCanaccordFinancialGroup.
C L A S S O F 2 0 1 0
Anthony Van Nice (CQ)and
wife,Lindsay,announcethebirth
ofadaughter,GenevieveSwift,
March12.
John L. Kelley, MBA ’58
Arthur Snyder ’50, MBA ’52
Jeff Osbornsaysheis“slowly
takingovertheworld,beginning
withthecreditITemerging
marketsanalyticsgroupat
Barclay’sCapital.”
Stacie Palmerisinhersecondrota-
tionasaseniorbusinessconsultant
withLibertyMutualinBoston,
“focusedontheprocessforhandling
windandhurricaneclaims.”
Sangwon Park livesinSeoul,
Korea,whereheisasenior
analystwithEugeneInvestment
andSecurities.
Steve andChristine DeRoma
Peck liveinMinneapolis,where
ChristineisabuyeratTarget,
andSteveisdirectorofstrategic
accountsatWebMD,helpingto
developanewmarketfortheir
productsandservicesinthe
medicaldevice,diagnostics,and
imagingmarket.
Jimmy Pu coversU.S.-listedChi-
nesecompaniesasaninvestment
bankingassociate,BarclaysCapital
HongKong.
Mike Rethman isdirectorof
marketingatAcurenInspection
Inc.inLaPorte,Texas.
Ben Rollins welcomedadaughter,
GretaCatherine,inDecember
2009.Shejoinsbrothers,Luke,6,
andCaleb,3,who“lovetohug/
maulherandcarryheraround
whenwe’renotlooking.”Ben
writesfromSaltLakeCity,“I’ve
beenworkingonmymeddevice
startup…inthefinalstagesof
sellingourtechnologytoasmall
pharmacompanyinanequity
deal…beenexploringtechnologies
attheUniversityofUtahtostart
anothertechcompany.”
Keith Romerowrites,“I’vebeen
workingonanHIVprojectforthe
ClintonFoundationinPanama.
Learninghowtoplaypoliticsasa
gringowithincorruptPanamanian
policeandgovernmentsystemshas
beenbothtryingandexciting.The
workistremendouslyrewarding
andI’vebeentakingquestionable
propplanestofar-flungindigenous
communitiesaroundthecountry
rollingoutSMSprinterinitiatives.
Theprintertechnologyallows
HIVtestresultstobe‘texted’from
PanamaCityandprintedinstantlyat
remotesiteswherenoInternetaccess
orfixedphonelinesexist.Thiscuts
aboutfourweeksoffofthetimethat
patientstypicallyhavetowaitfor
HIV-relatedbloodresults.”
Liz Schuster startedastrategy
company,andSPRIG(www.and-
sprig.com),forsocialandcultural
nonprofitorganizations.Shelives
inParkSlope,Brooklyn.
Sarah Scudder Heddlestonisa
seniorconsultantwithDeloittein
Washington,D.C.Shewrites,“I
gotmarriedinJulyandthenspent
amonthtravelingaroundinAus-
traliaforahoneymoon.Camped
insomespectacularnationalparks,
hikedbeautifulrainforestsand
divedtheGreatBarrierReef.”
AparnaSharma“joinedastartup
inthesocialmediamarketing
spacebasedoutoftheBayArea.”
Ping ShenisanMBAconsultant
withAccentureinSanFrancisco,
living“astone’sthrowfromthe
Giant’sstadium.”Hesaid,“…at
mycurrentclient,Isitnexttoan
oldergentlemanwhoIjustfound
outisaCornellalumaswell—
classof1960.”
Stella SunlivesinBostonand
worksforaMIT-basedsolar
startup,SolarEngineeringSolu-
tions,mainlyonthefund-raising
andbusinessdevelopmentside.
Thecompanydeliverssolarther-
maltechnologyandsolutionsto
servetheheatingandcoolingneed
forbuildings.Stellasays,“The
startupisstillveryearlystage,so
let’sseehowthingsunfold.”
Andrea Tebay worksinmarketing
forPepperidgeFarmandlivesin
NewYorkCity.
Vivek Thaker isaseniorassociate
atDuff&PhelpsinMorristown,
N.J.,doingcorporatefinance.
Adam Treadwell isaninformat-
icsconsultantandhealthcare
leadershipprogramassociatewith
CIGNA,inBloomfield,Conn.He
andhisfamily,“stillhappyand
healthy,”liveinGranby,Conn.
Britta Von Oesenwrites,“Iam
stillworkinginCatania,Sicily,
forWKN,arenewableenergy
developer…Hadfunvisitsfrom
Sarah Scudder,Andrea Findley,
andJeff Fuchs, MBA ’08.”
Tayfun Uslumovedbackto
Turkey,andis“tryingtoadjust
afterspending11yearsabroad.”
Vikram Venkatasubramanian
isCEOofSIPtopicsInc.,avoice
communicationscompany.Hesays
thecompanyis“comingevercloser
tolaunchingourTopicPhoneser-
vice…thataimstoconnectpeople
toendpointsofcommunication
thataremostrelevanttotheirtopic
ofconversation.”Vikramandhis
familyliveintheirnewhousein
Westford,Mass.,“gettingused
toyardworkandothercalorie-
drainingnecessitiesthatcomewith
homeownership.”
Steve WangworksforGallup,
focusingonbusinessdevelopment
inemergingmarkets,andhasbeen
transferredfromLosAngelesto
Gallup’sSingaporeoffice.
T H E
2010s
C L A S S
w w w.johnson.cor nell .edu
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