Darden Report FallWinter2013_issuu

8/11/2019 Darden Report FallWinter2013_issuu

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FALL/WINTER 2University of Virginia Darden School of Business

T H E D A R D E N R E P O R T

Darden: Developing and Inspiring Responsible Leaders

& Advancing Knowledge

WE HAVEA STORYTO TELL.


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Executive Education

FOR SENIOR EXECUTIVES

THE EXECUTIVE PROGRAM:STRATEGIC LEADERSHIP AT THE TOPThe Executive Program is Dardens agship advanced managementresidency program for senior-level executives.

FOR ORGANIZATIONSCUSTOM PROGRAMSDarden is your strategic partner to prepare your leaders to shapeyour organizations future and outperform the competition.

FOR ADVANCED MANAGERS

MANAGEMENT DEVELOPMENT PROGRAM:HIGH-PERFORMANCE LEADERSHIPDardens two-week residency program for high-potential executives

provides a strategic organizational view and integrates functionalareas and mind/body wellness.

FOR EXECUTIVES OF ALL LEVELS

OPEN-ENROLLMENT PROGRAMSDardens programs challenge you to explore the latest practicesacross business disciplines.

www.darden.virginia.edu/exed l [email protected]+1-877-833-3974 U.S./Canada l +1-434-924-3000 Worldwide

UPCOMING PROGRAMS IN 2014

36 FEBRUARYStrategic Sales Management(Washington, D.C. )

1721 FEBRUARYLeading Teams for Growth andChange (Tampa, FL)

914 MarchManaging the CorporateAviation Function

1621 MarchFinancial Management forNon-Financial Managers

2428 MarchStrategic Thinking and Action

611 AprilPower and Leadership:Getting Below the Surface

2225 AprilStrategic Decision-Making

27 April2 May The Womens LeadershipProgram

59 May True Leadership: LeadingWith Meaning

1223 MayManagement DevelopmentProgram: High-PerformanceLeadership

1316 MayManaging Individual andOrganizational Change

1316 MayLeading Innovation: ThinkingCreatively for Positive Change

120 June The Executive Program:Strategic Leadership atthe Top

26 JuneLeading Teams for Growthand Change

1720 June

Design Thinking 2227 JuneGrowing Great Managers:

The Core Essentials

GREAT LEADERSNEVER STOP

LEARNING.


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FALL/WINTER 2013 1

Whats Your Darden Story?

One of the greatest joys of my role as dean of the University of Virginia DardenSchool of Business for the past eight years and as professor for the past 31 yearsis to listen to the stories of alumni and friends, who tell me how Darden hasshaped them and how they, in turn, are shaping the world.

One only needs to thumb through the growing Class Notes section ofThe DardenReport to see our vibrant, tight-knit community in action. The experiences of our 14,000

graduates, from the Classes of 1957 to 2013, collectively tell the story of the School.This issue ofThe Darden Reportis dedicated to showing you some of the many ways

we, as a community, are meeting the Schools mission: to improve the world by inspiringand developing responsible leaders and by advancing knowledge.

In the rst feature section of the magazine, you will meet four graduates of the DardenSchool who are making a positive impact from Brooklyn to Bogot. As my colleagueProfessor Alec Horniman writes, Responsible leaders lead by choice, not chance.

The second feature section offers ideas for the practicing manager from membersof Dardens top-ranked faculty, who are changing the way the world does business byadvancing knowledge.

We hope these stories of our bold pursuit of knowledge and the power of people tomake a difference will inspire you to continue to share your Darden story.

@Bob_Brunerblogs.darden.virginia.edu/deansblog

Please send us your pictures, memories and thoughts at #urdarden. Or e-mail us [email protected]. Mail us a letter or give us a call.

TOM COGILL

From the DeanRobert F. Bruner Dean, Charles C. Abbott Professor of Business Administrationand Distinguished Professor of Business Administration


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DeanRobert F. Bruner Charles C. Abbott Professor of Business Administrationand Distinguished Professor of Business Administration

The Darden Reportis published twice a year byUniversity of Virginia Darden School of BusinessOfce of Communication & Marketing P. O. Box 7225Charlottesville, Virginia 22906-7225 [email protected]

Executive Director of Communication & MarketingJuliet Daum

EditorJacquelyn Lazo

Design and Art DirectionSusan Wormington

Cover DesignRoss Bradley

Copy EditorsCatherine Burton, Seamane FlanaganPhotography:Dan Addison, Ian Bradshaw, Tom Cogill, Jaime Kay, JackLooney, Andrew Shurtleff

Advertising Inquiries:Carter Hoerr, Executive Director for [email protected]: +1-434-924-6576

The Darden Report is published withprivate donations to the University of VirginiaDarden School Foundation.

2013 Darden School Foundation

Fall/Winter 2013 Volume 40, No.2

STAY CONNECTEDdarden.virginia.edu/socialmedia


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FALL/WINTER 2013 3

16LOGGING MILES TO

SAVE CHILDRENSave the Children CEO CarolynMiles (MBA 88) travels around

the world to help children inneed and to provide them with

hope for a better life.

20A CATALYST FOR CHANGE

IN COLOMBIA Pedro Medina (CLAS 82,MBA 86) revolutionizes

Colombians perceptions of theirhomeland through his nonprot,

Yo Creo en Colombia.

MEETING THE MISSION

IN EVERY ISSUE31 SIX MANAGEMENT MYTHS TO AVOID

(AND SIX ALTERNATE MAXIMS TO CONSIDER) By Professor Jeanne Liedtka and Tim Ogilvie

32 THREE CRITICAL FACTORS OF BUSINESS STRATEGY By Professors Jared Harris and Michael Lenox

33 11 KEY CHARACTERISTICS OF A GLOBALBUSINESS LEADER

By Professor James G. Clawson 35 THE GLOBAL MARKETING OF AN AGE-OLD FRENCH GEM:

The Washington Post Case in Point By Darden Senior Researcher Gerry Yemen, with Thierry Delecolle,

Ronald Kamin (MBA 75) and Beatrice Parguel

FROM THEGROUND UP

Kim Morrish (CLAS 88,MBA 93 ) describes her journeyfrom the U.S. Foreign Service

to international development toentrepreneurship in the U.K.

24BASKETBALL MEETS

BUSINESS IN BROOKLYNRalph Baker (MBA 93) teacheskids in Brooklyn about business

and basketball through hisnancial literacy nonprot, New

York Shock Exchange.

28

CONTENTS Fall/Winter 2013

1 From the Dean 4 News Briefs10 Quote UnQuote/Darden in the Media12 Faculty Spotlight:Susan Chaplinsky

What Kind of Inuence Do You Want to Have?37 Alumni Services Update, In Memoriam38 Alumni Prole:Bob Smith (MBA 87)

No Stranger to Risk39 Alumni Prole:Elizabeth Weymouth (MBA 94)

An Inuential Force in the Field of Energy40 Alumni Leadership Boards42 20 Questions: Ned Hooper (MBA 94)

Developing and Inspiring Responsible Leaders

Ned Hooper (MBA 94)

Advancing Knowledge


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4 THE DARDEN REPORT

News Briefs

On Wednesday evenings throughout thefall, a group of female Darden students,faculty and staff members got together in

Dardens South Lounge to discuss issues rangingfrom where women stand in the workplace to whether or not they are called to perfection. Theseintimate discussions, called Wednesday 10 events,are organized by the Schools Graduate Women inBusiness Club (GWIB), and they serve as a forumfor Darden women to engage with one anotherabout meaningful topics that affect women inbusiness. We have real conversations about whatit means to be a woman in the business world,said organizer Alison Stewart, Class of 2014. This year, men have also been invited to take part in

the discussions, as the conversations arent one-

sided, and men and women need to be aware of thechallenges women face in order to create a morebalanced workforce.

The Class of 2014 has the highest number offemale students in Dardens history. Out of 112 women, or 35 percent of the class, there are 17female presidents and more than 40 female vicepresidents spanning Dardens 45 students clubs.Some hold vice president positions in more thanone club. Female presidents run some of theSchools largest clubs, including the ConsultingClub, Marketing Club, Finance Club, and GeneralManagement and Operations Club.

Darden alumnae have also shown an interestin discussing topics pertaining to women in the

working world. In Washington, D.C., a group

Darden Women Take Care of Business

ON WEDNESDAY 10 EVENTS:

We have real conversations about what it means to be a woman the business world, said Alison Stewart, Class of 2014 (left). Tyear, men have also been invited to take part in the discussions, the conversations arent one-sided, and men and women need tobe aware of the challenges women face in order to create a morebalanced workforce.

Pictured above is theleadership of the studentclub Graduate Women inBusiness. Seated from left:Katrina Bergh, Alison Stewart,Ashley Oost-Lievense,Michelle Callen, ColleenArthur. Standing from left:Stacey Cruz, Margot Sakoian,

Christine Lewis. Not pictured:Emily Yee. (All are SecondYear students.)

IAN BRADSHAW


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FALL/WINTER 2013 5

Stay Connected With the New Darden Community

As a valuable member of Dardens tight-knit alumni community, you can recon-nect with classmates, register for events, update your profile and network with

fellow alumni in our updated online community.

You must complete first-time registration to access the resources available on the website, including event registration, group participation and alumni search functionality. Contact Darden Alumni Services to obtain your access code to

complete first-time registration.

CONTACT US:alumni.darden.virginia.edu

[email protected]

EASIER SIGN IN

Log in using your e-mail address or connect your account to Facebook, Google, Twitter,LinkedIn, Yahoo or OpenID for convenient,one-click social sign-in.

GROUP MEMBERSHIPS

Join an online networking group of alumnispecific to your class, chapter, career orpersonal interests.

EVENT CALENDAR

View and register for upcoming Dardenalumni events.

ALUMNI SEARCH

Use the alumni search tools to locate alumniby class, location, company or program.

The Class of2014 has the highestnumber of femalestudents in Dardenshistory.

In Dardens 45 student clubs

of female Darden graduates conveneon the fourth Friday of the month forbreakfast and to listen to guest speakers,such as Natalie Foley (MBA 11), whodelivered an interactive presentation ondesign thinking and innovation to themembers. The womens alumnae groupin the capital city along with the NewYork City Alumnae Group are amongthe Schools rst alumni affinity groups.Their members enjoy getting together fornetworking, educational and social events.

To meet the needs of executive women who aspire to the C-suite,Darden Executive Education offers the

popular The Womens Leadership Program,a semiannual program led by Senior Associate Dean for Executive EducationErika James. The course, which will beoffered again 27 April2 May 2014, helps women assess and address their strengthsand challenges, navigate the frequentlycomplex dynamics of strategic businessleadership, and hone their skills aseffective, visionary leaders.

more than female vice presidents

femalepresidents


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6 THE DARDEN REPORT

News Briefs

Global Growthand the Next

BreakthroughEconomy

Shanghai Marriott HotelCity CentreShanghai, China

Sponsored by:Darden Center for Asset ManagementDarden Center for Global Initiatives

darden.virginia.edu/shanghaisummit

SAVE THE DATE

910 MAY 2014

FOR DARDENS THIRD ANNUALGLOBAL LEADERSHIP FORUMIN SHANGHAI, CHINA

INCLUDING THE INAUGURAL

ShanghaiInvestingSummit

Upbeat Outlook at the6th Annual Universityof Virginia InvestingConference After ve years of intense volatility including a global recession, the near-collapse of the nancial system and adebt crisis in the euro zone investorsat the sixth annual University of VirginiaInvesting Conference (UVIC), sponsoredby the Darden Center for Asset Man-agement, predicted a steady upswing in2014, and reported that retail investorsseeking positive, real returns are gainingcondence in public equities.

More than 600 attendees at the sold-

out conference in November heard froma string of experts on the U.S. energyrenaissance, the technology boom,investment strategies of endowments andemerging markets.

The experts offered investing ideas andstrategies for mitigating risk.

Buy when there is little condence,and sell when there is too much

condence, said Howard Marks, chair ofOaktree Capital. Risk is when theres toomuch condence in the price of an asset.

At the conference, Darden MBA

students also hosted the second annualDarden @ Virginia Investing Conference.Students from 15 top business schoolsparticipated in the stock pitch competi-tion. The team from Columbia BusinessSchool took home the $3,000 cash prize.

To view video interviews from theconference, visit youtube.com/user/ DardenMBA.

Start Up Now Conference Inspires EntrepreneursIs the entrepreneur crazy enough to be an entrepreneur, but not dysfunctional?asked venture capitalist Jonathan Aberman (pictured above), founder and managingdirector of Amplier Ventures, at the fth annual Darden Entrepreneurship Confer-

ence organized by Dardens Batten Institute for Entrepreneurship and Innovationand the Schools student-run Entrepreneurship and Venture Capital Club. Abermans comment shed light on his process to evaluate early-stage deals, as he

looks for evidence of patterns of behavior that are known to lead to success.Dardens Start Up Now conference convened more than 400 aspiring and

experienced entrepreneurs in November to learn about topics such as crowdfunding,the role of ethics in new ventures and change management.

The conference concluded with the announcement of the winner of the annualDarden Concept Competition: Lamarca, which uses crowdfunding to support handbagdesigners. Second Year student founders Sarah Sanchez and Anika Brown won a spotin the university-wide concept competition, the U.Va. Entrepreneurship Cup.

Howard Marks spoke on the subject of ManagingMoney in Uncertain Times.

CONFERENCES


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FALL/WINTER 2013 7

Darden in the Top Tier of theMBA Specialty RankingsNo. 1 Education Experienc e

(The Economist 201113)No. 1 General Management

(Financial Times 2013)No. 1 Facilities

( The Princeton Review 2014)No. 4 Management

(U.S. News & World Report 2014)No. 5 Entrepreneurship

(The Princeton Review forEntrepreneur magazine 2013)

No. 5 MBA Program(Hispanic Business magazine 2013)

No. 5 Faculty( The Princeton Review 2014)

Dardens Class of 2015: By the NumbersDardens incoming class is the largest in the history of the School, with 414 students across the three formats of the MBA program.

The full-time MBA boasts the Schools highest-ever average GMAT score and grade point average. When it comes to career aspira tions,this remarkable class reflects a growing trend: interest in mission-driven careers in fields such as health care, energy, education,

government and the nonprofit sector.

A Look at Recent MBA RankingsDeciphering business school rankings can be tricky, as each ranking publica-tion uses a different methodology to measure different factors. Heres a look atDardens rank in the most recent MBA polls.

DARDENSRANK

PUBLICATION MEASURES

4 The Economist , 2013

(Global Ranking)

Student and alumni experience, including

career services, job placement, facultyand student quality and diversity, recruiterdiversity, salary changes from before toafter degree

12 U.S. News & WorldReport , 2014

Ratings from deans and recruiters;quantitative analysis of career andadmissions data

15 Forbes , 2013 Return on investment using total salariesof alumni who are ve years out minussalaries lost while in school and cost ofeducation

MBA

316Enrolled

706 Average GMAT 3.5 Average GPA

16% Minority30% Women11% Increase in Applications

Over Previous Year 37% Born Outside U.S.

MBA for Executives

68Enrolled

32% With Advanced Degree25% With Military Experience10 Average Years Work

Experience

Bloomberg Businessweek s 2013ranking of Executive MBA programsNo. 11 Dardens debut U.S. ranking

A+ in Teaching A+ in Support A in Curriculum, Entrepreneur-

ship and Finance

Global MBA for Executives

30Enrolled

40% With Advanced Degree33% With Military Experience13 Average Years Work

Experience27% Born Outside U.S.

Countries represented in the Classof 2015 include: Brazil, France,Germany, Iran, Kenya, Russia,Serbia and the United States.

First Graduating Class: 2008 First Graduating Class: 2013First Graduating Class: 1957


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8 THE DARDEN REPORT

FACULTY

New Faculty

Professor Ed Freeman Earns Coveted Academyof Management AwardIn August 2013, Professor Edward Freeman was elected a Fellow of the Academy ofManagement, a rare honor bestowed only once a year on one of the organizationsmembers. With only about 180 fellows, or less than 1 percent of the academys 19,000members, the Fellows Group is composed of scholars who have made a signi-cant contribution to the science and practice of management. Best known for hisgroundbreaking work on stakeholder management and business ethics, Freemanjoins Darden Professor Ming-Jer Chen as an Academy Fellow. Freeman also receivedthe Academy of Managements Distinguished Educator Award, which recognizes

long-term excellence in outstanding teaching in the classroom, fostering pedagogicalinnovation and mentoring of students.

Elizabeth A. Demers , Associate Professor of Business

Administration

Daniel Murphy ,

Assistant Professor of BusinessAdministration

A Professors OlympicDreamsPROFESSOR PAUL SIMKO hatched hisDream Idea last year while planning hiscourses for the annual Global MBA forExecutives second residency in Brazil. Heenvisioned holding several experientiallearning activities related to the 2016Summer Olympic Games, to be held inRio de Janeiro. Thanks to his Mead En-dowment Award, which he earned for hisinnovative Dream Idea in December,Simko will integrate visits to various sites where the Olympics will take place to

teach a GEMBA cohort aboutthe planning process andthe societal and economicimpacts on the city. The

endowment, named for Darden Professor John Colley, sponsors a Darden facultymember to participate in the Mead En-dowment Program every year.

Yang and Warnock Appointed ChairsPROFESSOR DENNIS YANG was appointedthe Dale S. Coenen Professorship of FreeEnterprise Research Chair, an appoint-ment that has a three-year term. Yangjoined the Darden community in 2012,and he teaches First Year MBA classes onglobal economies and markets. He is also

developing an elective courseon China and Asia.

PROFESSOR FRANK WARNOCK wasappointed to the James C. Wheat Jr.Professorship in Business Administra-tion, a professorship for which there is noterm length. Warnock, a member of theGlobal Economies and Markets (GEM)area, is an expert on international capitalows, international portfolio allocationand nancial sector development. Hedeveloped and delivers GEMs First Yearcore elective Global Financial Marketsand the Second Year elective AdvancedGlobal Financial Markets. He alsoco-created and co-teaches the yearlongpracticum Markets in Human Hope.

Warnock joined the Dardenfaculty in 2004.

News Briefs

Global Economies and Markets

Finance

PAUL SIMKO DENNIS YANG FRANK WARNOCK


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FALL/WINTER 2013 9FALL/WINTER 2013 9

STUDENTS

Class of 2014 First Year Awards

Class of 2014 Student AwardsSamuel Forrest HydeMemorial FellowshipBrandon Guichard

William Michael Shermet Award Jason AndersonMatthew AttanucciMatthew AttawayWilliam BesashDavid CockerillBryan FurmanBrandon GuichardChiraj JainAmanda Miller Martha PageBrandon Prather Matthew Priest Andrew RobertsonKyle Simmons Yue Zhu

C. Stewart Sheppard Distinguished

Service AwardChiraj JainPatrice Yao

G. Robert Strauss Marketing Award Jonathan OConnor

FROM ONE GENERATION TO THE NEXT

The Shermet Award and the Hyde MemorialFellowship are great honors, and I couldntbe more proud of what Brandon hasaccomplished during his First Year. Whileaccolades are rewarding, particularly as aparent and alumnus, I am most proud of thecharacter and qualities that he continually

demonstrates. Brandon, like his fellowstudents, embodies the best traditions and

values of the University and practices servantleadership, placing the interests of hisclassmates and the School ahead of his own.KENT GUICHARD (MBA 83),BRANDONS FATHER ANDCHAIR AND CHIEF EXECUTIVE OFFICER OF AMERICANWOODMARK CORPORATION

At First Coffee in September, student awards were presented to members of the Class of 2014.

From left, Kent Guichard (MBA 83), Brandon Guichard (Class of 2014), recipientof the Samuel Forrest Hyde Memorial Fellowship and a William MichaelShermet Award, and Dean Bob Bruner.

Left: G. Robert Strauss Marketing Award recip ient JonathanOConnor with Professor TomSteenburgh.

Right: C. Stewart SheppardDistinguished Service Awardrecipient Patrice Yao withDean Bob Bruner.


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10 THE DARDEN REPORT

The Washington Post/ Darden Case in Point 15 NOVEMBER 2013

Unlike with stock picking, when it comes to forecasting,

averaging does not yield averageperformance. Averaging cando no worse than the averageexpert, and often does betterthan the best expert. By relyingon the average forecast, one canalso avoid the large forecastingerrors that even the best expertoccasionally makes.

YAEL GRUSHKA-COCKAYNE, assistant professorof business administration, and KENNETH C.LICHTENDAHL JR.(MBA 98), associate professorof business administration, on whether it is betterto trust the best expert or the average of a group ofexperts

Forbes | 7 NOVEMBER 2013

Promotions remain a durablefeature of consumer marketingbecause manufacturers, retailersand especially consumers alllove a deal and with goodreason.

PAUL FARRIS, Landmark CommunicationsProfessor of Business Administration, and KUSUM

AILAWADI(Ph.D. 91) on why retailers should notskimp on promotions

The Washington Post Capital Business20 SEPTEMBER 2013

A forward-looking customertargeting strategy that is enabledby the knowledge of customerattitudes is 11 percent more

protable than an alternativethat ignored customer attitudes. The bottom line payattention to customer attitudeas well as behavior.

RAJKUMAR VENKATESAN, Bank of AmericaResearch Professor of Business Administration, onthe importance of knowing what your customersthink of you

BBC Capital | 6 NOVEMBER 2013

Whenever communicationcrosses cultural boundaries,even small gestures of respect

to norms can be important. Thedos and donts we rely on here[in the U.S.] dont always apply.

ELIZABETH POWELL, assistant professor ofbusiness administration, on mastering the art of

global e-mail etiquette

The Washington Times | 28 OCTOBER 2013

If you extend the selling day byone day, do you get more salesthan you would had you not

been open that day? GREG FAIRCHILD(MBA 92), E. Thayer Bigelow Associate Professor of Business Administration,on Macys decision to remain open on Thanks-

giving day

The Economic Times Corporate Dossier | 25OCTOBER 2013

I would like you to considerhow we could go about creatingcomplex enterprises even if we

arent heroic leaders imbued with special traits like vision.In other words, how canordinary people demonstrateextraordinary leadership?

SARAS SARASVATHY , Isidore Horween Research Associate Professor of Business Administration,on ordinary people demonstrating extraordinaryleadership

The Wall Street Journal | 5 NOVEMBER 2013

More than 220 students attendedan Amazon.com Inc. briengthis fall at Darden, the highestattendance gure for any singlecompany brieng in the Schoolshistory.

JACK OAKES (MBA 88), assistant dean for careerdevelopment, on the growing number of Dardenstudents accepting jobs in the technology sector

Darden in the MediaONGOING SERIES The Darden School of Business has ongoingseries in the following media outlets:1. The Washington Post /Darden Case in

Point Darden has published 70 casesbiweekly in the papers Sunday Businesssection since 2011.

2. The Washington Post Capital Business Dardens faculty has published 14 articlesin 2013, most with an Executive Educatiofocus.

3. Forbes/ Dardens Batten Institute Darden faculty members frequently writeblogs about entrepreneurship and innovati

4. CNBC Professor Ed Freeman appears frequently CNBCs Squawk on the Street.

5. The Economic Times Corporate Dossier Professor Saras Sarasvathy writes a monthcolumn on entrepreneurship for the Indianbusiness newspaper.

DARDEN BUSINESSPUBLISHING: THE LATEST CASESDarden Business Publishing, founded in 2003to provide content for the Darden classroom,now distributes knowledge and ideas fromthe Darden School across the globe. Today,its catalog contains more than 3,000 cases plus technical notes, exercises, books andsimulations used in more than 130 countriesaround the world.

1. HemoShear, LLC: Series C Round Financ-ing by Susan Chaplinsky andAnne Erdman

2. Life in the Fast Lane: Stacy Hollins and the Hollywood Headache by Jenny Mead,Aaron Peters and Andrew C. Wicks

3. Pitching J. Crew Maternity Apparel toMickey Drexlerby Paul W. Farris, Randle D.Raggio, Patrick DesMarteau, Alex Mazakovand Lindsay Murphy

4. Segmenting Clinton and Obama Votersby Kenneth C. Lichtendahl Jr. (MBA 98)and Rohit Gupta

5. ZYRTEC: Responding to Allegraby KarinBergqvist (MBA 08), Angela Li (MBA 03)and Marian C. Moore

Darden alumni enjoy free access to theDarden Case Collection. For more details,e-mail [email protected].

QuoteUnQuote


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PILLARS THE POW ER OF PHILANTHRO PY AT THE DA RDEN SCHOOL OF BUS INESS

G IFT P LANNING YOUR PLANNED GIFTS LAY THE FOUNDAT ION FOR DARDENS FUTURE

Planned gifts from alumni, faculty and friends make it possible for Darden to deliver on itsbold mission of improving the world by developing and inspiring responsible leaders and badvancing knowledge. Te variety of available planned giving options gives you the ability tsatisfy your nancial goals while helping Darden prepare a new generation of leaders.

www.dardenplannedgiving.org

FOR MORE INFORMATION

To learn more about how a planned gift might t into your overall giving plan, please visit www.dardenplannedgiving.org or contact Carter Hoerr, EAdvancement at the Darden School of Business, at +1-434-924-6576 or [email protected]. The Darden Ofce of Advancement mail

P.O. Box 7726, Charlottesville, Virginia 22906 USA.

Did you know that you can support Darden through your estate planning?


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What Kind of Inuence

Do You Want to Have?Charlottesville? Wheres that?Susan Chaplinsky asked when she was recruitedto join the Darden School of Business faculty in1994. Professor Kenneth Eades, whom Chaplinskymet at the University of Michigan when they wereboth rookie faculty members, urged her to get toknow Thomas Jeffersons university.

Dont say no, just come, Eades said.So Chaplinsky agreed to meet with Darden

Dean Lee Higdon, and she told him why she wasnt

sure shed be a good t for the School. She taughtusing the case method at Northwestern University,but shed never written a case. As a Universityof Chicagotrained economist, she had a strongresearch background.

Higdon told her that she could continue topursue her research while becoming a world-classteacher. I see you as the prototype of what thenew Darden faculty members could be like, he

told her. You have strengths as a teacher, and you will be able to carry and continue your research atDarden.

As a former investment banker, Dean Higdon was a super salesman, according to Chaplinsky.Otherwise, I dont think Id be here. He believedthe School needed to diversify its faculty withrespect to gender, geography and academictraining. A lot of the previous faculty had notunexpectedly come out of the Harvard mold.

Today our faculty come from institutions aroundthe world, Chaplinsky said. And then he said something that made up

her mind. You could be one of a big departmentsomewhere else, but at Darden, were small. Youcan have much more inuence on your colleagues,on the School and in your eld here, he asserted.The question is what kind of inuence do you want to have?

Susan ChaplinskyTipton R. Snavely Professor of Business Administration

Faculty Spotlight


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FALL/WINTER 2013 13

The Next Generation of Faculty Chaplinsky, the Tipton R. Snavely Professor ofBusiness Administration, did not imagine that she would still be in Charlottesville 20 years later. Butshe quickly adapted to Dardens applied teachingmethod, because it was directly in line with hercorporate empirical research style. Pretty soon, shecouldnt imagine herself anywhere else.

Today, Chaplinsky is pleased to see that manyof Dardens faculty members exemplify the traitsHidgon believed were essential for the Schoolsnext generation of professors. We hire peoplebecause they have a body of thought leadershipthat we think will be important to people inpractice and policymakers, and they also bringthose skills into the classroom, Chaplinsky said. Ican only imagine what some of our younger facultymembers will be like with years of experience.They are already strong teachers and have a greatinclination of how to carry themselves in front oftheir students, she remarked.

Confronting Complex Cases in the

ClassroomFor her part, Chaplinsky has mastered the class-room setting. She steers her students throughcomplicated cases, which she simplies by askingprovocative questions. Transactions these daysare complex, she explained. I try to teach SecondYears how to use the building blocks they learnedin their First Year to confront complexity and torealize they have the skills to break down the sit-uation into solvable problems. Her approach hasmade her a perennial favorite among students, whoscramble to sign up for the two classes she teaches

each fall, Corporate Financing and Entrepre-neurial Finance and Private Equity (EFPE), thelatter of which was created in response to studentsinterest in the eld.

Students had organized their own course and were more or less teaching themselves a version ofEntrepreneurial Finance. That prompted the areaand me to offer a new course on the topic, shesaid of the situation at the School in 2001. The rst

course consisted entirely of Harvard case studies;since then, Chaplinsky has written all but one ofthe cases for the class penning many of them inconjunction with students and alumni.

Writing in Concert With the DardenCommunity Early on, developing materials for EFPE waschallenging because private equity is riddled withcondentiality concerns, and it takes a specialrelationship with a rm to gain access to thenecessary information. Chaplinsky was aided bystudents and alumni who had contacts or experi-ence in the industry that helped create materialsto benet the students.

One former student, Julie Engell (MBA 07),

approached Chaplinsky before winter break of herSecond Year with a challenge. Engells father, who was a board member of a Danish private equityrm, Polaris, wanted to co-write a case with hisdaughter about one of its portfolio companies.Eager to acquire an international case, Chaplinskyencouraged Engell to work on it with her father.She took the initiative as a student, which isalways welcome, said Chaplinsky, who has usedthe Engell case numerous times in her class sincethen.

Even alumni who werent Chaplinskys studentshave reached out with ideas for materials. In 2004, John Fruehwirth (MBA 96) who had nevertaken a class with her, though his wife, Christine Arnold Fruehwirth (MBA 96), had contactedChaplinsky because he had done a mezzaninenancing deal that he thought would be of interestto students. John owns his own fund now,Rotunda Capital, and he still comes back to theclassroom to teach and meet with private equity

3RD ANNUAL PRIVATE EQUITY CONFERENCE

On21 March 2014, Dardens student-run Private Equity club will hold itsthird Private Equity Conference. As the clubs faculty advisor, Chaplinskyhas been impressed by the initiative alumni such as John Loverro(MBA 00) have taken to support the endeavor.

This year, the conference will welcome members of Charlottesvillescommunity and cover topical issues, including energy and co-

investment. PE rms tend to be small, so they dont recruit heavily. Asmall number of students a year will get jobs in the industry directlyout of Darden, so they nd these networking and learning opportunitiesextremely important, Chaplinsky noted. She encourages interestedalumni to contact her or the club to get involved.

Did you know?Professor Chaplinsky,an avid sports fan,has season ticketsto U.Va.s basketballgames. You can ndher in section 110,cheering on the Hoos.


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students, she said. Engell and Fruehwirth are two

of the many students and alumni who have helpedChaplinsky develop new cases during her time atDarden.

A Fascination With FinanceChaplinsky majored in economics not nance as an undergraduate at the University of Illinois.She had initially dismissed nance as a subject areaof interest when she enrolled in a graduate-levelportfolio theory course at the University of Chicago.Her perspective shifted radically while she was inNobel Prize-winning Professor Eugene Famas class.

For a lot of us, it wasnt a class, it was a life-alteringexperience, she recalled. Some of us even describeit as a religious experience.

Now a renowned expert in corporate nanceand private equity, Chaplinsky is just as curious anddedicated to nance as she was in Famas course.There is some orthodoxy to the way marketsfunction, Chaplinsky said. I like that someelements are rational; it gives you a framework forhow to solve problems and narrows the elementsthat are unexplained. The blend of principles andthe ever-changing dynamic that affects them is what

motivates her research.Chaplinskys research interests are primarilyin corporate nance, and she has specializedinterests in capital raising, private equity andcapital structure. She is working on a project toidentify the outcomes of the JOBS (Jumpstart OurBusiness Startups) Act, which was passed in April2012. The law attempts to reduce the cost burdenof going public, but at the expense of transparency

and disclosure, Chaplinsky remarked. Were going

to look at how the act affects the pricing of thesecompanies. Its an option for the issuer they donthave to reduce their disclosure [burden of goingpublic], but they can choose to in an effort to savemoney. Although the SEC is still collecting data,she believes the act will increase the availability ofcapital for smaller rms.

Chaplinky is also examining the exit stageof the venture capital life cycle, particularly as itpertains to public offerings. Part of what motivatedthe JOBS Act was the precipitous drop in IPOssince 2000. Venture capitalists traditionallygenerate returns from IPOs, and as that avenuehas diminished, theyve had to exit by selling theircompanies privately, she explained. Chaplinskyreected that IPOs typically offer higher returnsthan private sales, and her research attempts tomeasure how pronounced this effect has been.

An active faculty member in the life ofthe School, Chaplinsky serves as the facultyrepresentative for the Darden School FoundationBoard of Trustees and was the associate deanfor faculty scholarship from 2008 to 2011. Shehas received numerous teaching accolades. In April 2013, she earned the Universitys highestteaching award, an honor that recognizes teachingexcellence, research and service achievementsof an outstanding caliber. In 2012, she receivedthe Wachovia Award for Excellence in TeachingMaterials Innovative Case, and in 2007, she wonDardens Outstanding Faculty Award.

by Jacquelyn Lazo

Chaplinskys research interests are primarilyin corporate nance, and she has specializedinterests in capital raising, private equityand capital structure. She is working on aproject to identify the outcomes of the JOBS(Jumpstart Our Business Startups) Act, whichwas passed in April 2012.


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FALL/WINTER 2013 15

DEVELOPING ANDINSPIRING

RESPONSIBLELEADERSResponsible leaders are individuals with a strong sense of self andothers, and the situations they influence. These are people that invite,include and inspire others. Being responsible implies intentional choice,which creates opportunities for exceptional performance from anorganizations members. Responsible leaders lead by choice, not chance.

Alexander B. Horniman,Killgallon Ohio Art Professor of Business Administration,Senior Fellow, Olsson Center for Applied Ethics


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Logging Miles toSave ChildrenSave the Children CEO Carolyn Miles (MBA 88)travels around the world to help children in need andto provide them with hope for a better life.

PHOTO: SAVE THE CH

RESPONSIBLE LEADERS


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FALL/WINTER 2013 17

CAROLYN MILES (MBA 88

As the leadingindependentorganization inspirinbreakthroughs inhow the world treatchildren,Save theChildren serves morthan 125 millionchildren in 120countries, includingthe United States.

Leadership Lessons From theSyrian Conflict

This fall, Carolyn Miles addressed students, faculty, staffand visitors at Darden as part of the Schools LeadershipSpeaker Series. She explained that Save the Children isworking to provide humanitarian aid to the two millionSyrian refugees, one million of whom are children. Sheshared the lessons she has learned while leading herteam through this conflict.

LESSON ONE: Leaders need to understand thechallenges their teams face on the front lines.Nothing can take the place of you being on the groundwith the people youre trying to help. You must know

When Carolyn Miles, president and chiefexecutive officer of Save the Children,joined the nonprot in 1998, shenever thought shed stay for 15 years. But there isabsolutely nothing I would rather be doing thanrunning this organization, said Miles, who becameSave the Childrens rst female CEO in 2011.

After graduating from Darden in 1988, Miles worked for American Express, rst in New YorkCity and then in Hong Kong. She then teamedup with Darden classmate Tom Neir (MBA 88)to help develop a successful chain of coffee shopsacross Asia called the Pacic Coffee Company, which they later sold to a Chinese investor.

The Catalyst: A Mother and ChildDuring her travels in Asia, Miles was routinelyconfronted by the endemic deprivation faced bymillions of children. She describes a life-changingexperience in the Philippines: My family and I were at a stoplight, and a poor woman came upto the car to beg. She had a baby boy in her arms,and I was sitting with my son Patrick in my arms,Miles recalled. Patrick was about six or sevenmonths old. The womans baby didnt look nearly ashealthy as mine did, but he was about the same age,and we looked at each other through the window.She never did knock, but at that moment, I had the

realization that there are millions of children whoare growing up in the world that have absolutelyno opportunity for a better life, for no other reasonthan that they are born into poverty.

At that moment, Miles knew she wanted todedicate her life to helping the worlds children andto providing them with hope for a better life.

Although I knew nothing about nonprots, Ihad the sense that, with the training I had, therehad to be something I could do for a nonprotorganization, said Miles, who has three children with her husband and fellow Darden graduateBrendan Miles (MBA 88).

When the family moved back to the UnitedStates, to Connecticut, in 1998, a Darden alumnusintroduced Miles to a staff member at Save theChildren. She took a marketing position withthe organization, applying the experience shehad gained at American Express and through her Asian startup to help the nonprot with its direct-response television and direct mail campaigns,bringing in new donors. In 2004, Miles becameSave the Childrens chief operations officer andexecutive vice president, and in September 2011,she moved into her current role as presidentand CEO.

During her tenure, the organization has morethan doubled the number of children it reaches with nutrition, health, education and other

what the challenges are and work at the highest levelpossible to make those challenges easier for your team.

LESSON TWO: Leaders need a flexible strategy.In Syria, our strategy has changed quite a bit. We haveto supply immediate support, but we also have to makesure people know whats going on to try and influencethe longer-term political solution. Theres a lot moreawareness in the United States now about whats goingon, sadly because of the chemical weapons attack onSyrian citizens. This has given us an important opportunity

to talk about the humanitarian situation. In addition tothe 400+ children who were gassed during the recent chemical attacks, 10,000 Syrianchildren have been killed in the past two years during this conflict. Our role is not to saywhat we want to do politically or militarily. It is to be a witness to what is happening tochildren and making sure people know the facts.

LESSON THREE: Leaders need to forge partnerships. When you are in a crisis, it is incredibly important to reach out to others who can help you. Who do you work with or know that you could get to support the work you do? Forus, it could be the United Nations Human Rights Council, the UN agency that works withrefugees and is on the ground with us in the camps; or it could be our board members,many of whom are corporate leaders. Partnerships are the only way youre going tomove your strategy ahead.


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programs. She has helped grow its budget from$250 million to more than $650 million today.

Making Sure the Story Is ToldIncreasing awareness about children in need isa crucial part of my job, said Miles. In additionto the support we provide every single day, weare documenting what is happening to kids. Forexample, 6.6 million kids still die every yearof things we can prevent, such as pneumonia,malaria and diarrhea. Part of our work is to makesure people know what the facts are.

As she travels to refugee camps and impover-ished areas in some of the 120 countries whereSave the Children works, Miles chronicles her in-teractions with children in her blog, Logging Miles.

As CEO, she has emphasized the need to usesocial media and new technology to extend theorganizations reach and fully engage with Save theChildrens employees, volunteers, beneciaries,donors and partners, as well as others around the world. She has also built partnerships with otherorganizations public, private, nonprot andfor-prot to cooperate and share resources andexpertise for the benet of the worlds children.

For example, in October, Save the Children andCalvin Klein Inc. hosted an inaugural benet galato increase awareness of the nonprots nationalearly childhood education programs and to honorits supporters. Miles presented the National Child Advocate Award to actress Jennifer Garner, one ofthe organizations most devoted advocates. Garnerserves as an Artist Ambassador along with suchother celebrities as Julianne Moore, Rachel Zoeand Jennifer Connelly.

In addition to working with Save the Children,Miles serves on numerous boards for non-

governmental organizations and entities thatsupport nonprots. An active and devoted Dardenalumni volunteer, she serves on the DardenSchool Foundation Board of Trustees and is chairof the Branding, Marketing and CommunicationCommittee.

By Jacquelyn Lazo and Julie Daum

Excerpts from Miles Blog, Logging MilesSyrian Refugees in Iraq Live in Limbo

The boy standing in the cement block doorway called to us to take his picture. Wecouldnt resist his bright smile in the bleak dust of the refugee camp. We went oveand snapped a few shots, and he looked at them proudly on our cell phones. Hisuncle, who was hovering close by, came to talk with us, and soon we were sitting itheir one-room cinderblock home, sipping warm Coca-Cola in tiny glasses. Nawza

father, uncle and mother told us how the two families had ended up here in Domiza refugee camp near the border with Syria.

For children like Nawzad, who is 9, and Chiman, who is only 3, the days are filwith small chores, sitting inside their one-room house an accommodation they

lucky to have, since many families are living in tattered tents. They have beenthere for nine months, and no one is sure when they might be able to go back toSyria.

As we said goodbye to Nawzad and his li ttle sister, we asked him if he wantedto go back to his village. He looked down shyly and said of course, it was home. H

father said the same, that as soon as Assad fell and things were safe, he would goback and find work as a house painter again.

But Nawzad and Chimans mothers eyes were fearful. This family hadbeen through so much already, and Im sure the thought of reliving the fear anddestruction she had seen was too much to think about as we sat chatting on the

floor of a place that feels nothing like home.

Can a Literacy Pilot Program Help Pakistans ChildrenLearn to Read?Except for the fact that the counting aids were rocks and polished peach pits, andthe space was tiny, we could have been at any preschool anywhere in the world.

All the colorful elements of the classroom had been produced by the enthusiastiwoman who was the teacher a local woman who provided a room in her house

for the school and underwent regular training with Save the Children. This schoowas also part of a new model in Pakistan that focuses on children ages 28. It workto ensure that these children get the most they can get from school, with a particula

focus on literacy. Save the Children has launched similar Literacy Boost programsin Bangladesh, Ethiopia, Malawi, Mozambique, Nepal, Pakistan and Zimbabwe.

The programs focus on preparing children to learn to read starting as early aspreschool.

Pakistan has policies at the national and provincial level to make sure everychild who has the right to go to school actually has a school to go to and a trainedteacher. But in many rural areas, this universal access is not happening andwhile primary school enrollment is 81 percent for boys, it is only 67 percent forgirls. Programs like Literacy Boost are targeted for both boys and girls and are runby teachers in local rural communities, and early pilots have shown remarkableprogress in learning outcomes for children enrolled in the program.

To read all of her blog posts, visit loggingcarolynmiles.savethechildren.org.

RESPONSIBLE LEADERS


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Inspiring us all to reach higher.

Johnson & Johnson is proud to support

the Darden School in all their continued effortsto build smarter, more dedicated,

and principled leaders for tomorrow.

i

I


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A Catalyst for Change

in Colombia

RESPONSIBLE LEADERS

PHOTOS: RICARDO PINZN HIDALGO

Social entrepreneur Pedro Medina (CLAS 82, MBA 86)believes in his native country and has convinced hundredsof thousands of Colombians they should, too.


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restaurants in the rst 12 months and 33restaurants in his seven years, and became

the top employer of college students in thecountry.

Colombia 2013: A Changed NationToday, Colombia is a completely differentnation from what it was in 1999. Foreigninvestments in the country have in-creased from $1.8 billion in 2000 to $15.8billion in 2012. The number of violent deaths per 100,000 inhabitantshas decreased from 67 to 32 since 1999.

We received 5,000 visitors from theUnited States in 1999, compared to500,000 in 2012, Medina said. Thereare now four international tourism guidesthat tout Colombia as the placeto visit.

According to Medina, Colombiasdramatic improvements can be attributedto three main factors: better leadership,

RESPONSIBLE LEADERS

Advice FromPedro Medina1. Expand your threshold of risk eachday by doing something you have neverdone on a daily basis. Start with smallchanges and build up.

2. Expand your heart engage regularly with strangers and do unsolicited actsof kindness.

3. Look for hidden assets the worldis full of tangible and intangible assets

that are underutilized.

I love and apply Professor Sankaran Venkataramans bootstrapping technology for entrepreneurs:

Dont buy anything new that youcan buy used.

Dont buy anything used that youcan rent.

Dont rent anything that you canlease.

Dont lease anything that you canborrow.

Dont borrow anything that you canbeg for.

Dont beg for anything you can get

for free. Dont take anything for free that you can get others to pay you for.

Dont take something you can getothers to pay you for that you can

get others to bid for and create anauction.

Plan Colombia [an initiative createdto end Colombian armed conict anddevelop an anti-cocaine strategy] anda more engaged civil society. Yo Creoen Colombia has signicantly helped

Colombians develop agency in a civilsociety by teaching them to believe intheir country and its inherent value.

A Profound Impacton ColombiaMedinas ferocious tenacity and hisunwavering dedication to his home-land have not gone unnoticed. In 2004,Colombian President Alvaro Uribe andEl Colombiano recognized him as an Ex-emplary Colombian. He was celebratedby the business magazine Dinero as oneof the 20 top businessmen of the year in2001, and in 2006, he was a nalist forthe Schwab Foundation Social Entre-preneurship Award and was chosen byCambio magazine as one of the top 50leaders under 50 in Colombia.

Medina, whom many consider a rare visionary who has made a signicantimpact on his country, avoids thelimelight when he can and prefersspending time at La Minga, a Colombian

environmental reserve that he owns. Torelax, I go to the waterfalls in La Mingaand balance the positive ions of the city with the negative ions, he said of hisfavorite weekend ritual.

Medina also dreams of exploring South America, and he plans to embark on a six-month sabbatical there in 2020 in honorof his 60th birthday. By Jacquelyn Lazo

The main hou se a t La Minga , aColombian environmental reserveMedina owns. The house is madeof mud, grass and rocks. P E

D R O M E D I N A


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Its a BIG world.It needs BIG ideas.

Eastman and The results of insight are trademark s of Eastman Chemical Company. 2012 Eastman Chemical Company 0208-A D-12 10/12

Eastman is proud to support the Darden Schoolof Business. As a global specialty chemicals

company, were honored to invest in programsthat help nd practical solutions to the worldsmost complex issues.

Today, the world depends on our insightsto create materials that are in just abouteverythingfrom the screen on your PCtablet to the sheen on your aspirin tablet.

And our global community of approximately13,500 employees continues to pioneerthe innovations that lead to practical solutions

with safety and sustainability at the forefront.

What could you do if we put our heads together?Rather, what couldnt you do?

Start the conversation at eastman.com.


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RESPONSIBLE LEADERS

From theGround Up

From her base outside London, Kim BrownMorrish focuses on growth. In 2004, Kimand her British husband, Simon Morrish,purchased a well-established grounds maintenancecompany called Ground Control Ltd. They part-nered with four of the companys existing directors, who took a risk to invest in the business alongsidethe Morrishes. The company provides landscapemaintenance, construction and design, fencing andother services for national or large regional clientsin the retail, utilities and public sectors. Its cus-tomer list includes more than 31,000 commercialsites of organizations like Tesco, Anglian Water,Network Rail and even the Royal Mail.

Over the past nine years, Ground Control hasgrown from $15 million to $100 million in revenueand from 60 to 500 employees. As the companyhas grown, so too has Kims family she is theproud mother of four children, ranging in age from5 to 14.

Morrish, who began her career in the U.S.Foreign Service, discusses entrepreneurship, socialmission-driven careers, women in leadership andthe oh-so-delicate work/life balance.

When you graduated from Darden 20 yearsago, what were your aspirations?I wanted to make a positive difference in the world. This ambition began while attending U.Va., where my studies in international relations drovemy aspiration to join the U.S. Foreign Service. After working in international development, I

realized what an exceptional gift an education isin this world. I took two years of leave withoutpay from the Foreign Service to gain formal, com-mercial management training at Darden.

What was your next career move? After Darden, I returned to my career with theU.S. Foreign Service to run development proj-ects in Bolivia, which at the time was the secondpoorest nation in the Western Hemisphere. Iextended my time there for a third year to workprimarily in micronance, which provided sus-tainable, affordable access to nancial servicesto small and micro businesses. I then spent two years working and living in emerging markets inCentral Europe and Central Asia.

I then moved back to Washington, D.C., and was recruited by the German rm IPC GmbH, which specialized in setting up microcreditbanks around the world. It was my dream job aleadership role in a global, commercial enterprisethat made a positive impact on people with limitedopportunities or access. I set up IPCs Washington

subsidiary, handling operations, branding andmarketing, staffing international projects andestablishing nancial controls to qualify thecompany to work as a U.S. government contractor.

After working on projects in Haiti and Bosnia, I was running a project in Jamaica, during the 1998banking crisis where all of the indigenous bankshad failed. We were trying to preserve a smallbusiness loan program. It was in Jamaica that I metmy husband, Simon.

After a career in the U.S. Foreign Service,Kim Brown Morrish (CLAS 88, MBA 93) growsa company that counts the Tower of Londonamong its clients.


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FALL/WINTER 2013 25

When did you launch your rst entrepreneurial venture? While in Jamaica, Simon and I identied what webelieved was a great business opportunity to createa real estate portal online in the U.K., which didnot exist at that time in any form, either onlineor offline. After a few months of research and thedevelopment of a business plan, we both quit our

jobs to start How-Smart.com, which was similar to Trulia or Realtor.com, but 14 years earlier andin the U.K.

What was the most important lesson youlearned from that rst venture?Surround yourself with the very best people

you can.

What circumstances led you to buyGround Control?We moved to Boston for 18 months while Simoncompleted his MBA at Harvard Business School.

On a whitewater rafting trip, we learned about theconcept of setting up a search fund to purchase anexisting business a management buy-in. Hav-ing gone through the blood, sweat and tears of astartup, this sounded like a much better approachto owning and running your own business. So, wereturned to London and spent the next year lookingfor the business. We also had our second child.

I told everyone and I mean everyone aboutour aspiration to buy a business. I met with businessbrokers and accountants, reviewed all of the busi-nesses on the market and attended seminars. GroundControl actually came to us through Jeff Bocan (MBA00), a friend and Darden alumnus who was workingin private equity in London and mentioned the op-portunity to me one night over dinner.

The next step was to secure nancing. As a buy-inteam without industry experience, we needed acompelling and comprehensive plan to convince theseller to sell to us and to raise nancing to pull thedeal together.

KIM BROWN MORRISH (MBA 93

PHOTOS: CHRIS SATTLBER


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How has your role at Ground Control evolved?I focused my rst years on business developmentand hiring the very best people we could tosupport our growth. Both responsibilitiesdepended on my ability to sell. I was selling ourbusiness to clients and ensuring that we weregrowing with them, and I was selling our businessto potential employees and allowing them togrow with us. My role has evolved from sellingand recruiting to a focus on creating and drivinga culture which recognizes that people are thesingle most important contributor to our success.So many of the people who have joined us,especially our senior team, are truly exceptional,and the most rewarding aspect of my involvementin Ground Control has been working with themover the past nine years.

What makes entrepreneurship a greatcareer path?There are few career paths that allow you toachieve your dreams, write your own rule bookand put you squarely in charge of your success orfailure. Ive worked in many cultures and coun-tries where my gender, age and skin color mat-tered. I know the challenges of trying to balancea family with career aspirations and the sacricesand compromises required.

I love that as an entrepreneur I can wake up

every day and focus on making a positive impact onthe people in our business.

Can you have it all?You can, but not necessarily at the same time. I was lucky to start my career in the U.S. ForeignService where I could work to create opportuni-ties for the disadvantaged. At Ground Control, itsbeen rewarding to run a business committed to

caring for our environment, supporting hundredsof small businesses that employ several thousandpeople who carry out work on our behalf. We alsofund a wide range of charities through matchinggrants for our 500 employees in their fundraising

activities.Of all of the challenges, heartbreaks, successes

and joys of the past 20 years, by far the greatestachievements have been my partnership with myhusband and being a mother to my four wonderfulchildren.

Thanks to the remarkable team weve built atGround Control, Ive been able to step away fromthe business at times and focus on my kids andshaping the way they view the world whetherduring maternity leave or school holidays, or whenthe kids simply need and deserve more time from

me. Likewise, all four children are supportive andunderstanding when the business demands mytime and attention.

Its worked. Not without a lot of bumps andsleepless nights. Ive evolved as the business andmy children have grown to better respond totheir needs and also to grow myself. Just whenI think I am on top of my game, the businessexperiences a whole new set of challenges dueto growth. Its the exact same with the children.Needless to say, theres never a dull moment and nochance of feeling overly condent that I am getting

it right. By Julie Daum and Jacquelyn Lazo

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FALL/WINTER 2013 27

UTC is proud to support the Darden School for its role in developingprincipled leaders with the integrity, discipline and insightful thinkingthat can help us build a better world.

Onward

For more information, visit utc.com.

OTIS

PRATT & WHITNEY

SIKORSKY

UTC AEROSPACE SYSTEMS

UTC CLIMATE, CONTROLS & SECURITY


30/46


RESPONSIBLE LEADERS

When Ralph W. Baker Jr. (MBA 93) started coaching his 11-year-old sons basketball team inthe summer of 2006, he came up with the idea of also teaching the players about the meritsof business. However, his idea was not immediately well-received by the other parents, who

wondered why nancial literacy was relevant to the young Brooklyn basketball players. Some wentso far as to call him crazy. Bakers son even threatened to quit the team when his father proposed anew name the New York Shock Exchange. [My son] thought we would be the laughingstock of theneighborhood, Baker said.

But Baker persisted. What began as informal investment meetings with the middle schoolers afterbasketball practice evolved into more formal gatherings in the summer. Guest speakers includingbankers, private equity investors, bond traders and asset managers attended the groups meetings and

Basketball Meets Businessin BrooklynRalph W. Baker Jr. (MBA 93) teaches kids how to dribble and how todouble their money through his nonprot, New York Shock Exchange.


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FALL/WINTER 2013 29

discussed their trades with the team. After teachingthe middle school kids how to think logically aboutinvestments, Baker put up $900 of his own moneyso the boys could track two stocks they thought would be successful. They observed the peoplearound them, most of whom were using iPods,and decided to invest in Apple Inc. and GameStop. A year later, in 2007, both stocks posted veryimpressive returns.

By 2008, in the aftermath of the nancial crisis,Baker had more advocates than skeptics. Financialliteracy and the tools needed to teach it became allthe rage, Baker recalled. He felt his background was suited for teaching kids competitive basketballskills and investing skills. The former small college All-American basketball player received his B.A. ineconomics from Hampden-Sydney College. Aftercollege, he worked at NationsBank in the Washing-ton, D.C., area. When he graduated from Darden,Baker got his rst taste of high nance workingin insurance M&A and leveraged lending for GECapital, and subsequently spent more than 15 yearsin the deal business.

Bakers debut book,Shock Exchange: HowInner-City Kids From Brooklyn Predicted the GreatRecession and the Pain Ahead, recounts his experi-ences of starting his nonprot, the New York ShockExchange, and received honorable mention for gen-eral nonction at the 2013 New York Book Festival.

When did you rst get interested inbasketball? As soon as I could walk. In Farmville, Virginia,sports were our entertainment. I tried to doeverything my older cousins did. We playedbasketball, football and softball. You name it, we played it. Over time, basketball became myfavorite.

When did you rst get interested in business?I always wanted to make money. My fatherintroduced me to the stock market in fth grade. Ihave been infatuated with it ever since. Investing iscompetitive, and there are clear winners and losers similar to basketball. I went into retail bankingdirectly after college cause thats where themoney is. I had no intention of going to businessschool; that was my mothers idea. A few guys fromHampden-Sydney College Warren Thompson(MBA 83) and Robert Citrone (MBA 90) had

graduated from Darden, and Hugo Rodriguez(MBA 92) was already there when I was applying.They spoke highly of the School, and that wasthe best endorsement for me. The fact that it wasthe toughest business school in the country wasanother attraction. I had my heart set on attendingDarden.

Did your Darden experience help you create theNew York Shock Exchange?Denitely. Without my Darden experience, I wouldnot have had the condence or technical expertiseto create the New York Shock Exchange. To teachkids about investing means you have to learn ittwice. It also requires you to take complex ideasand explain them in laymans terms.

How has the Darden network inuenced youand your career?I have relied on the Darden network to help metransition between jobs and also for deal ow.My classmates have been involved in some of mypersonal projects. Jandie Smith-Turner (MBA 93)of Acuity Sports designed some of the apparelfor the New York Shock Exchange. Joe Heastie(MBA 93) proofread my manuscript for the bookand gave me feedback as to how to make it moremarketable.

What were some of the top observations thekids had about the Great Recession?When going over investment fundamentals, welooked at the price-to-earnings ratios and earningsgrowth rates of the kids stock picks. Then we dida top down analysis by looking at trends of thosebig ticket items housing starts and auto sales that drive the economy and could potentiallyaffect the overall market. During each investmentmeeting, we began to notice that those economictrends were getting worse. They eventually began

to fall off a cliff, and the alarming part was that noone was talking about it [at the time].

Do you still play basketball with the kids on theNew York Shock Exchange?I still play with them. However, while I was writingmy book, I sort of fell off the wagon and got out ofshape. I am now trying to get back in shape.

RALPH W. BAKER JR. (MBA 9

Investing iscompetitive, andthere are clear winners and loser similar

to basketball.RALPH BAKER

PHOTOS: SAMUEL STUART


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FALL/WINTER 2013 31

INNOVATION &

GROWTH

MYTH 3: Dont ask a question to which you dontknow the answer. This one is borrowed from trial lawyers, and it entered the mainstreambecause looking smart always seems career enhancing. Unfortunately,growth opportunities do not yield easily to leading questions andpreconceived solutions.BETTER MAXIM 3:Be willing to start in the unknown and learn .

MYTH 4: Measure twice, cut once.This one works ne in an operations setting, but when the goal iscreating an as-yet-unseen future, there isnt much to measure. Andspending time trying to measure the unmeasureable offers temporarycomfort but does little to reduce risk.BETTER MAXIM 4:Place small bets fast.

MYTH 5: Sell your solution. If you dont believein it, no one will.When you are trying to create the future, knowing when you have it rightis difcult. We think being skeptical of your solution is ne what youshould be certain of is that youve focused on a wor thy problem. Youlliterate your way to a workable solution in due time.BETTER MAXIM 5: Choose a wor thwhile customer problem, andconsider it a hypothesis to be tested.

MYTH 6: If the idea is good, the money will follow.Managers often look at unfunded ideas with disdain, condent that ifthe idea were good, it would have attracted money on its own merits.The truth about ideas is that we dont know if they are good; onlycustomers know that. Gmail sounds absurd: free e-mail in exchangefor letting a software bot read your personal messages and serve adstailored to your apparent interests. Who would have put money behindthat? The answer, of course, is Google.BETTER MAXIM 6:Provide seed funding to the right people andproblems, and the growth will follow.*

The challenge for managers is to nd a balance between the mythsand the realities of business. In this age of uncertainty, an unavoidablebut healthy tension exists between creating the new and preservingthe best of the present, between innovating new businesses andmaintaining healthy existing ones. As a manager, you need to learnhow to manage that tension, not adopt a wholly new set of techniquesand abandon all the old. The future will require multiple tools in themanagerial tool kit a design suite especially tailored to starting andgrowing businesses to add to our current set of analytically orientedapproaches to managing todays businesses well.

*This material is excerpted from Designing forGrowth: A Design Thinking Tool Kit for Managers ,by Jeanne Liedtka, United TechnologiesCorporation Professor of Business Administration,and Tim Ogilvie.

Six ManagementMyths to Avoid(and Six Alternate Maxims to Consider)By Jeanne Liedtka and Tim Ogilvie

Sayings like Keep your boss in the loop and Its sometimes betterto beg forgiveness than ask permission are classic managementadages. Many such sayings are great advice, but some of the oldtenets just dont work anymore.As a manager, you might believe in common management mythsbecause you think they will simplify your life. Perhaps now is the timeto re-examine those myths and replace them with maxims groundedin reality.

MYTH 1: Think big.Pressure will always exist to be sure an opportunity is big enough,but most really big solutions began small and built momentum. Whenthe Internet was still new, how seriously would you have taken eBay(online auctions?) or PayPal (online escrow?)? In an earlier era, FedExseemed tailored for a niche market. To seize growth opportunities,starting small and nding a deep, underlying human need with whichto connect is best.BETTER MAXIM 1:Be willing to start small but with a focus onmeeting genuine human needs.

MYTH 2: Be bold and decisive.In the past, business cultures were dominated by competitionmetaphors (those related to sports and war being the mostpopular). During the 1980s and 1990s, mergers and acquisitionslent themselves to conquest language. Organic growth, by contrast,requires a lot of nur turing, intuition and a tolerance for uncertainty.BETTER MAXIM 2:Dont put all your eggs in one basket alwaysexplore multiple options.


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STRATEGY


ADVA NCING KNOWLEDGE

will and will not do to achieve your mission. To better dene yourorganizations values, you might consider and answer these questions: Dene your mission. What is the organizations purpose, its reason

for existing? Establish your scope. In which markets do you operate in terms

of product and geography? Identify your aspirations. What does success look like now and in

the future? Know others expectations. Who are the organizations

stakeholders, and what do they expect of the organization? Declare your values. What do you expect of the organization? What

values and beliefs do you want the organization to hold?Considering these questions will help you begin to identify

competitive positions that create value for stakeholders. After all,strategy formulation is not done on a blank slate. Your mission andvalues dene your opportunity set and help you understand how toleverage and build your capabilities.

Bill Gates of Microsoft set out to create the worlds greatestsoftware company. That simple statement dened Microsofts

aspirations and the scope in which it operates. Google says it willdo no evil, declaring a value set that constrains and enablesspecic strategic actions. Conducting a Stakeholder Analysis can bevery useful in understanding what others expect of you and may beinuential in helping to dene your own values for the organization.Ultimately, your values serve as boundary conditions for your strategy.

STEP 2. Explore Competitive OpportunitiesOPPORTUNITIES refers to the possible competitive positions in themarket to create value for stakeholders. To dene them, you couldtake the following steps: Dene your industry. What is the arena in which you are competing

with others? Who are your competitors? What customer needs do

they satisfy? Analyze the market structure. What competitive approaches prove

superior? How does the structure of the market in which you areoperating affect that competitive dynamic?

Identify market trends. How is the industry evolving? What arecustomers demanding now and in the future?You need to think clearly about the economic, technological and

societal environment in which the organization operates and to acutelyconsider the activities and capabilities of ones competitors. Eachof these three tasks requires attention and analysis. Dening yourindustry and competitors is deceptively simple, but it can be greatlyinformed by a full Competitor Analysis, Environmental Analysis, FiveForces Analysis and Competitive Life Cycle Analysis.

STEP 3. Identify Your CapabilitiesCAPABILITIES refers to the organizations existing and potentialstrengths. These ideally fuel the organizations strategic effor ts. Toevaluate an organizations strategy, you need both a clear pictureof what makes the organization distinctive and a sense of theorganizations ability to marshal resources and leverage capabilitiestoward desired organizational objectives. This requires, of course,clarity about those capabilities: Dene your value chain. How do you deliver value? What

capabilities do you (or your organization) currently possess? Whatmakes them distinctive?

Three Critical Factorsof Business StrategyBy Jared Harris and Michael Lenox

The strategists challenge is to simultaneously manage three criticalfactors: values, opportunities and capabilities. In order to devise andexecute a successful strategy, you need to analyze each of thesefactors to understand how your organization can create and sustainvalue. The various tools summarized in The Strategists Toolkit canhelp to paint a complete picture of your organizations competitivelandscape.

VALUESWhat is our mission?What is our scope?What do we value?

OPPORTUNITIESWhat does the marketdemand? Who else, if

anyone, offers this valueproposition?

CAPABILITIESWhat are our strengths?Where might we have acompetitive advantage?

VALUABLECOMPETITIVE

POSITION

How do wecreate and

sustain

value?

STEP 1. Dene Your ValuesVALUES refers to the mission of the organization. Understanding andestablishing your organizational values is a critical rst step in devisinga successful business strategy and understanding how you can createvalue for others. Your values dene your ambitions and the competitivespace in which you operate. Your values help delineate what you


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Assess alignment. Do your capabilities complement one another?Are your capabilities aligned with your external value proposition?

Identify competitive advantage. Are these capabilities unique, anddo they provide the basis for a competitive advantage? Are theyeasily imitated by others?

Analyze sustainability. Are your capabilities durable over time? Whatcapabilities does the organization need to possess in the future?How can it develop them?

Tackling these questions can be informed by an extensive CapabilityAnalysis. A Capability Analysis can help you identify sources ofcompetitive advantage and highlight critical gaps in your currentcapabilities. Other tools such as Strategy Maps can be useful inhighlighting your position versus rivals and to answer whether yourcapabilities are unique.

Integrate Your InsightsThese three factors converge into the organizations competitiveposition, where value for an organizations stakeholders is createdand sustained. Ultimately, developing effective business strategyis an integrative exercise. It involves looking through a wide lens atthe organization. Whereas the functional areas of an organization nance, marketing, accounting, operations, human resources oftenbring specic paradigmatic views to bear on organizational problemsand considerations, business strategy is about how all the underlyinginsights of these disciplines are brought together. Managers donot typically encounter challenges as isolated, atomistic problemswith narrow disciplinary implications; rather, they must navigateissues that encompass a whole range of complex, cross-disciplinaryconsiderations.

Business strategy is also integrative because its success involvesvalue creation for its investors, employees, customers, suppliersand support communities. Commonly invoked business axioms likemaximize shareholder returns can be useful to the extent that

such shorthand phrases imply value creation for investors by way ofcreating value for all key stakeholders creating goods customerswant, work environments that energize employee contributions andso forth. Maximizing shareholder value is not a strategic direction,nor is it exogenous to creating value for customers, employees orcommunities. Strategy involves putting these considerations togetherto align stakeholder interests and create value in an integrative andsustainable way.

Use an integrative, enterprise perspective to think clearly andto exercise sound judgment that creates long-lasting value. Whensuccessfully implemented, an effective business strategy can help anorganization fully realize its potential.

11 Key Characteristics of aGlobal Business LeaderBy James G. Clawson

If you want to succeed in todays volatile global economy, you willmost likely end up doing business all around the world. Internationalbusinesses have operations, partners, alliances and senior managersrepresenting virtually every global region. Many have more thanone headquarters, signaling the diversity of their thinking andperspective.So, how do you learn to conduct international business effectively?You acquire a set of skills that help you work across regional, nationaland subnational boundaries to propel your business forward. Thoseskills include the following: Overseas experience

Deep self-awareness

Sensitivity to cultural diversity

Humility

Lifelong curiosity

Cautious honesty

Global strategic thinking

Patiently impatient

Well-spoken

Good negotiator

Presence

The following checklist will help you determine if you have the keycharacteristics of a global business leader:

Overseas experienceMany global executives understand what doing business in a at worldis like because theyve lived overseas, sometimes for decades at atime. If you want to become a successful international business leader,transcending your own cultural perspective and learning how businessis done in different contexts is essential.

LEADERSHIP

Jared Harris (left), associate professor of business administrationand Michael Lenox (right), Samuel L. Slover Research Professor ofBusiness Administration, academic director of the Batten Institute andassociate dean of innovation programs, are authors of the new bookThe Strategists Toolkit (Darden Business Publishing, 2013).


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Deep self-awarenessUnderstanding your beliefs and knowing where they mightdiffer from others is critical to global executive success.Without this key characteristic, you will not be able toadapt to and tolerate the deep-seated beliefs of others and business opportunities will evaporate. Beware of theIm right; youre wrong assumption.

Sensitivity to cultural diversityAre you willing to eat raw sh? Snake? Raw monkeybrains? Can you adjust your eating and sleeping habitsto match the local executives routines and patterns? Inother countries, seemingly minor things can be off-putting,such as sticking your chopsticks in your rice or touchingsomeone with your left hand.Much of this insight comes from experience. You musthave an intense interest in the lives and cultures ofothers, recognizing that your culture and backgroundare not inherently superior, to master the global businessarena.

HumilityBeing interested in other cultures and how peoplein those cultures do things, especially with regard tobusiness, implies a certain humility. Humility here meansa belief that other lands and cultures have gured outvery interesting answers to lifes problems. As a goodinternational business person, you must be open toand fascinated by those answers. This trait requires awillingness and ability to listen well and with real intention.

Lifelong curiosityThe world is constantly evolving. Without an intensecuriosity and a desire to learn, you will be left behind andincreasingly unable to converse, much less keep up, withyour peers. Staying abreast of new learning opportunitiesrequires a humble awareness that what you know is notenough and that you always have more to learn.

Cautious honestySurprisingly, the denitions of honesty and truthvary widely in the business arena. People sometimesomit information or only tell the truth they think otherpeople need to know. However you design your ethics andmorality in your personal life, in global business settings,

executives need to know they can count on you. If youdont deliver on your business promises, your reputationwill suffer. Effective global leaders can balance the needto be cautious in different contexts while demonstratingthey can follow through.

Global strategic thinkingWhen you have a global perspective, you think strategicallyabout managing business using the best people fromaround the planet. Much of your ability to do this comesfrom a lifetime of networking at the highest levels in globalboardrooms and your aptitude for seeing how various

pieces of global industries play out internationally. Tomake strategic decisions for your company, you needto understand how the business world works on aglobal scale.

Patiently impatientHow do you become patiently impatient? You must be ina hurry and yet be patient enough to allow the local andregional processes to unfold as they are meant to. Timeand pace are not the same in every country. Balancingthe demands of hot competitive and technological trendswith the pace of local cultures can be frustrating to theuninitiated.

Well-spokenGiven the challenges of working via interpreters orfumbling through conversations in more than onelanguage, the ability to say clearly what you mean is akey global business skill. If you converse with othersin their native language, you usually earn browniepoints however, if what you have to say is obscure orunintelligible, youll quickly be in a decit balance. Clearcommunication is a powerful leadership trait to have onthe global stage.

Good negotiatorDoing business across ethnic, national and regionalboundaries requires strong negotiating skills. If youcan add these skills to an innate enjoyment of thegamesmanship involved in negotiating, you will become ahighly effective negotiator.

PresenceA certain charisma surrounds you if you are an inuentialglobal leader. Part of it but only part is position ortitle. The bigger portion is dress, self-condence, energylevel, interest in other people and comfort with thechallenges at hand. You may not want to believe thesethings matter, but they do.As a global business leader, you must respect theidentities and afliations of others. Some people can dothat; many or most cannot. Do you have what it takes tobecome a global business leader?

*This piece is adapted fromLevel Three Leadership: GettingBelow the Surface , by ProfessorJames G. Clawson, Johnson &Higgins Professor of Business

Administration.

ADVA NCING KNOWLEDGE


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FALL/WINTER 2013 35

THE GLOBAL MARKETING OF AN AGE-OLD FRENCH GEM

casein point:

A WASHINGTON POST /DARDEN SERIES

THE BIG IDEA: As marketers love to teach students, differentiationmust be the focal point of marketing strategy.But what happens when a rms competitiveset is shared by similar customers, perceiveddifferentiation is weak among rivals and loyaltyis a thing of the past? This was the dilemma theFrench high-end jeweler Mauboussin faced: how toleverage its iconic brand to access new customers,domestically and abroad, while preserving the imageof luxury goods founded on the myth of exclusivity?

THE SCENARIO: At its agship store in Place Vendme,adjacent to the worlds most prestigious luxury brands, thehouse of Mauboussin prospered under the guidance of sixgenerations of watchmakers and jewelers. The business,launched in the early 1800s, was long controlled by theMauboussin family.

In 2001, Dominique Frmont acquired an 87.5 percentequity stake in the House. By then, its privileged status withrich clients had diminished, and sales at the luxury jewelerdropped.

While Frmont may have been a stranger to the world ofluxury jewelry, he knew how to run a business. He allocatedmillions of his own money to the rm and appointed anotherindustry outsider, Alain Nmarq, to run it.

Nmarq put in place a cost-reduction plan that includedclosing all points of sale in France and the rest the world(except for the boutique at Place Vendme), selling allremaining inventory at a cost, terminating its perfumelicensing agreement and reducing staff. Nmarq and Frmont

Every other Sunday in The Washington Post s Business section,members of Dardens academic community share lessonsfrom recent cases. Gerry Yemen (left) is a senior researcherat the Darden School of Business; Delecolle and Kamin areprofessors at the ISC Paris School of Management; Parguel isresearcher at the Universit Paris-Dauphine.

then revolutionized the House and revampedits marketing strategy away from a selectnumber of exceptional clients and targeteda new segment of consumers working women who bought jewelry for pleasure. Theadopted positioning became jeweler artist.

Next, Nmarq focused on the dismalnancial results in Asia/Asia Pacic. The

distributor with exclusive rights to the Mauboussin brand in Japan wanted to close its business in three months. What now?

THE RESOLUTION:The House had maintained a long-standing presence in Asia/Asia Pacic, and growth opportunitiesexisted there. Nmarq bought back the distribution agreementand deployed a strategy similar to the one applied in France:close the points of sale showing a decit. Mauboussin chosea wait-and-see strategy, limiting itself to two corners inTakashimaya stores. Finally, an Adidas shop decamped in theheart of the Ginza luxury area and Mauboussin opened itsagship store in Japan. To publicize its new shop, the brandlaunched an original campaign 5,000 diamonds offered tothe rst 5,000 visitors. It bought advertising in the leadingnewspapers, and with the buzz created, the brand ended up inthe headlines, too. A few months later, the store

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