fall 2006

Get

-powered

In today’s hotly competitive global business environment, high-quality management
education can be a critical advantage on the successful executive’s career path.
At the Stephen M. Ross School of Business at the University of Michigan, we believethat business education is an ongoing, lifelong experience that not only gives executives
a strong foundation to begin their careers, but also refreshes their business knowledge
and re-energizes their performance at critical points in their business lives.

Executive MBA■

Results-oriented Curriculum
Michigan EMBAs apply what is taught to solve real-life business problems.

■

■

i

Executive Education■

Professional Development
EMBAs gain the next-level skills required to advance careers.

Real-world Approach
Michigan's Exec Ed solutions are comprehensive, innovative and mirror
the multidisciplinary nature of today's business challenges.

■

On-campus and Online Monthly Format
Michigan provides a world-class MBA with once-per-monthFriday/Saturday residencies.

Rich Portfolio of Services
Includes open-enrollment and custom programs, consulting, Speakers
Bureau, M-Coach and more.

■Classes begin January or August each year.

Global Commitment
Michigan reaches across the globe with more venues, an extensive
catalog of management competencies and several Centers of Excellence
dedicated to global issues, Michigan is uniquely equipped to meetorganizational and executive development needs around the world.

www.emba.bus.umich.edu

www.execed.bus.umich.edu

Info Sessions » Ann Arbor, Michigan
September 16, 2006 | October 21, 2006 | November 15, 2006

CONTENTS
FEATURES

26

What We Talk
About When
We Talk About
Globalization

36

From Spin Cycle
to Baby FormulaInternational action-based
projects are one way Ross
School MBA students
sharpen their business skills.
Learn what happens when
MAP teams go to Romania
and Rwanda.

Free trade has created interlocking,interdependent economies in whichcountries increasingly specialize
in what they do best. Learn more
about the risks and rewards ofglobalization for countries, firms
and individuals.

Early Women MBA
Students Ushered
in a New Era

41
18

Joel Tauber:
A Balanced Life

Having just won the right tovote, the Ross School’s first
women students were eager
to test the limits of women’s
newfound freedoms in the
1920s. Learn about the careers
and lives of these pioneers.

As a young man, Joel Tauberdeveloped a personal plan forsuccess. Discover how that strategy
still guides this Ross School alum.

21

TMI: Building
Leaders in Global
Operations
Established in 1993 to boost
American manufacturing, Tauber
Manufacturing Institute preparesbusiness and engineering students
to excel in all aspects of operations
management and manufacturing
strategy.

32

INTELLECTUAL
CAPITAL
8

Inside the Beltway:
Carson Scholars
Explore Government,
Business Links
The Washington Campus’ new
BBA program fosters understandingof the federal government’s decisionmaking process and how thosedecisions influence business.

dividend 1 fall 2006

Achieving theExtraordinary: Cleaning
Up a Nuclear Nightmare
In his new book, Kim
Cameron tells the storyof Rocky Flats, Nevada,a top-secret site that once
housed more radioactive
waste than any othernuclear weapons facility in
the United States.

CONTENTS
DEPARTMENTS
3

Across the Board

16

Ross School students
fire up for Mad Money… Accounting Clubturns teens on to business … National Geographic Society CEO
John Fahey’s window
on the world … business leaders share insights at Dean’s
Seminars … kudos to Professors
Alfred Edwards and Dave Brophyand 10 honored faculty members.

7

Managing HR ina Multicultural
World
Cynthia TraggeLakra, MBA ’93,
MA ’93, senior vicepresident of GE Consumer Finance,
leads the company’s strategy onlabor and communication issues
and executive talent development.

Distilling
the Spirit of
Sustainability

Quote Unquote
Ross School ofBusiness faculty
members talk on therecord about
breaking news andbusiness trends.

11

Richard Bagozzi
examines how
anxiety, shame, embarrassment,
pride, envy and other emotions
affect behavior across cultures.
PLUS: Read the latest on the link
between stock returns and tax rates
and how a more progressive income
tax might curb workaholism.

14

Rob Frederick,MBA ’00, MS ’00,
assistant vicepresident anddirector of corporate responsibility
at Brown-Forman Corp., develops
programs to address social
concerns and environmental issues.

Faculty Research
Stakes HighWhen Emotions
Undermine Sales
PerformanceCampaign

Alumni at Large

45

Alumni Activities
Club news fromBaltimore, Brussels,
Chicago, Germany,
New York and San
Francisco.

48

Class Notes
The latest from friends,
classmates and colleagues.

54

Obituaries

56

Alumni Network Update

What It Takes:
The Michigan
Difference

Dean: Robert J. Dolan
Director of Marketing Communications:Paul Gediman
Executive Editor: Mary Jo FrankClass Notes and Copy Editor: Fred P. Wessells
Designer: Michigan Marketing & Design
Photographers: Mary Butkus, Eileen Colton,
Philip Dattilo, Scott Galvin, Steve Kuzma, Andy
Sacks, Ashesh Shah, Heather Thorne, Martin Vloet
Printer: University Lithoprinters
Vol. 37, No. 2: ©2006
Stephen M. Ross School of Businessat the University of Michigan.
This publication is produced twice a year by
the Office of Marketing Communications
and made possible through the generosity ofprivate donations.
For more information, contact Dividend,
Stephen M. Ross School of Business
University of Michigan
701 Tappan, Ann Arbor, MI 48109-1234.
The University of Michigan Regents:
David Brandon, Laurence B. Deitch, Olivia P.
Maynard, Rebecca McGowan, Andrea Fischer
Newman, Andrew C. Richner, S. Martin Taylor,
Katherine White; Ex-Officio Member, Mary
Sue Coleman, President, University of Michigan.
The University of Michigan, as an equal
opportunity/affirmative action employer,
complies with all applicable federal and statelaws regarding nondiscrimination and affirmative action, including Title IX of the Education Amendments of 1972 and Section 504 of
the Rehabilitation Act of 1973. The Universityof Michigan is committed to a policy of nondiscrimination and equal opportunity for all
persons regardless of race, sex*, color, religion,
creed, national origin or ancestry, age, marital status, sexual orientation, disability, orVietnam-era veteran status in employment,
educational programs and activities, andadmissions. Inquiries or complaints may
be addressed to the Senior Director for Institutional Equity and Title IX/Section 504
Coordinator, Office for Institutional Equity,
2072 Administrative Services Building, Ann
Arbor, Michigan 48109-1432, 734-763-0235,
TTY 734-647-1388. For other University ofMichigan information call 734-764-1817.
*Includes discrimination based on gender
identity and gender expression.

The Ross School is
one of the successstories of the University’s $2.5 billion Michigan Difference
fundraising campaign, thanks tothe support of alumni and friends.

Stephen M. Ross School of BusinessWeb site: www.bus.umich.edu

dividend 2 fall 2006

BOO-YAH!

Electronic Business and Finance Center.
“Swallow your ego. Be completely andutterly subservient. Be prepared to know
everything about the market even when
no one asks you so you can distinguishyourself. The stock market is the fastest
way to become rich. Then you can gofund what you really care about.”

Ross Students FireUp for Mad MoneyF

ans of CNBC’s Mad Money with Jim
Cramer were treated to more than theusual stock tips when the program wasbroadcast from the University’s Michigan
League on April 25.
Cheering fans created a sea of maize andblue and spontaneously burst into strainsof “The Victors” as they welcomed the51-year-old Cramer, a former hedge fundoperator turned stock market rock star
who inspired otherwise mild-manneredbusiness majors to paint their faces andscream “Boo-yah!” at the top of their lungs.
A technical crew numbering almost 50
arrived April 23 to set up lights, audience
seating, cameras and the director’s boothat the League. Dozens of members of theRoss School’s Accounting and Financeclubs joined Cramer’s extended crew. The
students helped market the program andworked behind the scenes during the taping. They, along with audience members,
met Cramer and received autographedcopies of Jim Cramer’s Real Money: Sane
Investing in an Insane World and backpacks filled with gifts from event sponsors.
Having already made his fortune,
Cramer uses his television show, books
and Web site to offer money management
advice and insight. He eschews orthodoxy
and recommends that people devote 20
percent of their portfolios to pure speculation because, in the long run, the “lottery
ticket” stock will greatly outweigh the losses.
“Accept sacrifice,” Cramer urged Ross
School students who attended a meetand-greet session the night before thetaping at the John R. and Georgene M. Tozzi

BEYOND WORD PROBLEMS

Introducing Teens
to Businessigh school students who excel inmath and science often are encourH
aged to go into engineering or medicine.

MARTIN VLOET

Pom-poms, painted faces and Cramer’s
hypercharged personality create a pep rally
atmosphere for the Mad Money taping session
at the Michigan League Ballroom.

Ross School lecturer Karen Bird would
like to see these top students exposed toanother career option: business.
To that end, the Accounting Club,
which Bird sponsors, and the school’s
BBA Program this spring hosted 50 highschool students at a half-day program
focusing on accounting.
Ninth graders from Wayne Memorial
High School in Wayne, Michigan, andCass Technical High School in Detroit
toured the U-M campus, watched a video
and comedy skit and participated inhands-on exercises teaching the basics
of finance, operations and strategy.
Two student teams simulated realworld accounting by creating a company
name and purchasing and selling candy
as stocks and cookies as their product.
Accounting Club members also taught
a lesson in strategy using financial statements to compare the two companies.
Andrew Davignon, BBA ’06, the Accounting Club’s former vice presidentof service, viewed the event as a way forthe club to be more involved in the community. “Our hope was that they would
become interested in business, learn whatclasses to take in high school and apply
to the Ross School.”
Vanessa Stafford, transition services
coordinator at Wayne Memorial, said theprogram puts real-life jobs into perspective and teaches students the importanceof investing. “A lot of these students
spend money on gym shoes and clothing.
Here they learn how they can own a pieceof those companies by investing in them

dividend 3 fall 2006

HEATHER THORNE

Across the Board

Left to right, Krystal Karam, BBA ’07, Dana
Simons, BBA ’06, MAcc ’07, and Jen Reed,
BBA ’07, explain basic accounting principles
to high school students.

instead,” she explained.
Ross School Director of BBA Student
Affairs Rob Koonce organized the visit
with the cooperation of the Detroit Public
School District’s Compact program,which works to prepare middle and highschool students for employment or college. His goal is to expand the program.
“We are planning to bring 450 ninth
grade students to participate this year,” headded.
The outreach program was funded by
Amex, Caterpillar Co. and Shell. A survey
given to students at the end of the program confirmed that they understood thesimulations and found them beneficial.
They will be invited to participate in a
program for 10th graders next year.

COOL JOBJohn Fahey’s
Mission: Inspire
Others to Care
ational Geographic Society CEO
John M. Fahey, MBA ’75, admits heN
has a cool job. He travels to cool places
and has cool photographs hanging in his
office. Drawing on his travels and experience, Fahey issued what he described as
the ultimate challenge to 1,100 Ross
School graduates in his April 28 commencement address at Crisler Arena.
“How do we — and I really mean you —manage this conflict between the aspirations
shared by all humans and our planet’s
ability to serve and sustain those dreams?
It’s a complex question, the ultimate business quest,” stated Fahey, who combined
humor and wisdom to encourage graduates
to see the world from a larger view thantheir windows provide.
“You don’t always get a diploma. You

STEVE KUZMAACROSS THE BOARD

National Geographic Society CEO John Fahey
says the most rewarding part of his job are thepeople who expand his horizons.

don’t always wear a robe. The degrees
come from your life experiences. Since
taking the job as head of the National
Geographic, I’ve been fortunate enoughto be surrounded by many people withadvanced degrees — degrees about theworld and all that’s in it,” he added.
The CEO is first and foremost a businessperson. Armed with an MBA, he hasturned National Geographic into a minimedia conglomerate that includes books,
magazines, cable TV, a Web presence andfilmmaking. However, he said the people
who inspire him and expand his horizons
are the most rewarding part of his job.
Fahey told the story of Mike Fay, an
explorer and conservationist who trekked
1,200 miles across equatorial Africa with atribe of pygmies. Because of the attention
he brought to this part of the world, 11
percent of Gabon now has been preserved
as national park land.
He urged graduates not only to use
their talents and “gift of an exquisite education,” but also hold on to their idealism,
make responsible decisions and thinkbeyond the short term. Above all, Fahey
stressed that “our mission is to inspire
people to care about the planet. Our future is not on an unalterable course.”

2006 CLASS GIFTS

95 Percent of MBA
Grads DonateL

ed by a class gift core committee,
including Billy Robins and Kristine
Royer (MBA), Katherine Fedele (BBA),
Todd Sarbaugh and Nancy Stano (Masterof Accounting) and David Mengebier,Terri Schultz and Linda Danek (ExecutiveMBA), 2006 graduates pledged more than

$500,000 to the Ross School.
“This is a really exciting time to be partof the Ross School, with The Wall Street
Journal No. 1 ranking in 2004, the very
generous donation from Stephen Ross
and the new building,” said Robins, as
he presented a $264,111 check to Dean
Robert J. Dolan on behalf of BBA, MBA,
Evening MBA and MAcc students at adean’s reception on April 28. Ninety-five
percent of graduating MBA students donated to the class gift program this year.
Thanking the students, Dolan responded,“It’s a fabulous monetary gift and gives us
great energy moving forward.” The BBA
and MBA class gifts will be used to equip
exercise rooms in the state-of-the-art
fitness center planned for the new Ross
School building. The MAcc class gift will
go to MAcc Scholarship Assistance to help
fund future MAcc students. The Evening
MBA class gift will be used to renovateand beautify the Commerce Park loungewith new carpet, lounge chairs, sofas,
appliances, tables and art.
Executive MBA students pledged$303,916 to support the Endowed Speaker
Series, Endowed ExecMAP Fund andAlumni Fund. The Endowed Speaker
Series brings business leaders and academicians to talk to Executive MBA students
and alumni. The ExecMAP program supports domestic and international Multidisciplinary Action Projects. The Alumni
Fund supports alumni activities andenriches the overall Executive MBA
program.

ed to be an effective CEO.
Arrow Electronics is a global providerof products, services and solutions to
the electronic component and computer
product industries. In addition to supply
chain solutions, services and financing
capabilities, Arrow Electronics provides
design and technical support to small andmedium-sized businesses.
Mitchell began the seminar by drawing a journey line reflecting his personal
life and professional experience. He
plotted highlights and graphed the ups
and downs on the timeline. He encouraged students beginning their businesscareers to do the same exercise. “Youlearn a lot more from failures than successes,” he noted.
Arrow’s strategy is based on fourpillars: growth, operational excellence,
financial stability and shared leadership,with shared leadership being the key tosuccess, Mitchell emphasized. “Alignment
is not agreement,” he said, but throughshared leadership, “people participate, areheard and make a difference.”
Arrow Electronics CEO Bill Mitchell

SHARED LEADERSHIP

Arrow Electronics
CEO Advocates
Shared LeadershipW

hen Bill Mitchell became CEO at
Arrow Electronics in 2003, he was
the firm’s fourth CEO in eight months.
Facing a daunting task, Mitchell built
a strategic framework based on performance leadership and transformed thecompany into an employee-focusedbusiness. “By and large people want to
do a good job,” he said. “As CEO, yourjob is to unleash that.”
At a Dean’s Seminar this spring, Mitchelldrew from his 30 years of experience,
including three CEO positions, to counsel
20 Ross School students on qualities need-

dividend 4 fall 2006

CORPORATE GOVERNANCE

Engaged Boards
Spur Growthboard of directors that is actively
involved in setting goals and shapingA
strategy can lead a company into successful growth opportunities, says Michael
Ruettgers, special adviser and retired
chairman of EMC Corp.
Ruettgers, who served as CEO at EMC
from 1992 to 2001, talked about “TheRole of the Board in Growth” at a Dean’s
Seminar this spring. EMC is a world
leader in products, services and solutions

for information management
and storage.
The information technology industry is characterized
byby constant disruptive technologies, volatile product life
cycles and a highly competitive marketplace. To survive
and prosper, he said, companies must aggressively purMichael
sue growth opportunities
Ruettgers
through innovative productdevelopment.
Growth opportunities should be the
top priority for the board of directors,
said Ruettgers. Members need to understand the industry life cycle, oversee longterm strategy, and set and communicate
aggressive growth targets. They also
should review the organizational structure and influence the selection of top
management.
Prior to passage of the Sarbanes-Oxley
Act in 2002, being a board member wasconsidered a cushy job that involved shortquarterly meetings, Ruettgers said. Today’s
expectations and requirements for board
members are higher so companies canmeet new standards of corporate responsibility and greater financial disclosure.
Traits that characterize a strong board
include the ability to shape strategy, aclimate of trust and openness with room
for constructive dissent, individual accountability and periodic performance
evaluations. “Growth is everyone’s business,” Ruettgers concluded.

DEAN’S SEMINAR

Corporations,
NGOs Benefit
from Partnerships
usinesses, nongovernmental organizations and the public all benefit fromB
corporate social responsibility (CSR), says
Tom Miller, CEO of Plan, an internationalorganization that helps children in emerging countries and promotes
their rights and interests.
Plan CEOSpeaking at a Dean’s SemTom Miller
inar in April, Miller described
CSR as a partnership between
the nonprofit and corporate
sectors, adding, “We as aplanet aren’t doing as muchas we should. The wholeworld has changed, and the biggest
challenge is communicating complex
development issues.”
NGOs benefit from partnering with anestablished firm through improved brandawareness, acquiring more income andbecoming a vehicle for influencing policy,
Miller noted. “We all need to be pushed
sometimes, and corporations help keep
us accountable.”He also cited five benefits for businesses
that partner with NGOs: customer loyalty,
staff retention, better environmental
performance, enhanced brand profile andan improved bottom line. For CSR to beeffective, Miller commented, firms andNGOs must find the right match and develop standards to measure performance.
Before retiring in 2004, Miller spent 29
years in the U.S. Foreign Service working
on policy issues in the Balkans, the Middle
East and Southeast Asia. He served at the
U.S. Embassy in Athens, including as U.S.
Ambassador to Greece in 2001–2004. Miller
earned four degrees, including a PhD inpolitical science, all from the Universityof Michigan.

A TRIBUTE

Honoring “Dr. E”
he Black Business Students Association(BBSA) honored Alfred L. Edwards,
T
professor emeritus of business administration, for 32 years of contributions to
the Ross School at the BBSA’s 30th annual
Conference and Annual Scholarship Recognition Dinner in February.
More than 200 students, alumni, faculty
and staff members and friends attended
the conference’s closing banquet, which
included a cinematic tribute and the renaming of the event to the Alfred L. Edwards
Annual BBSA Conference.
In the tribute, Gautam Kaul, the John C.
and Sally S. Morley Professor of Finance,
asserted that Edwards is proof things canchange in this world by setting an example
and taking risks. “He’s a players’ coach,always making students feel important,”
Kaul added.
Edwards, who joined the faculty in 1974,
has been a driving force in recruiting topnotch minority students. He was instrumental in leading the Ross School’s effort
to join the Consortium for Graduate Studyin Management, a 13-school alliance thatworks to bring African American, Hispanic

dividend 5 fall 2006

DTE Energy Builds on Strengths
As president and COO of DTE Energy, a utility
with 2.1 million electrical customers and1.2 million natural gas customers, Gerard
Anderson, MBA ’88, MPP ’88, works onsome of the most serious public policy issuesof the day, issues that affect the nation’s
economy and the environment. Here, at a
Dean’s Seminar this spring, he discusses with
Ross School students the utility’s businessmodel and promising ways to produce energy
and improve the environment.

American and Native American managerial talent into MBA programs.
Edwards, also known as “Dr. E,” said
that although he is credited with solving
students’ problems, “The truth is theysolve their own problems by talking it
through. I just listen.”Students would congregate in his office todiscuss family, work and school, he recalled.
“It was a social place. One of my colleagues
asked to move because it was so noisy.”David Wooten, MBA ’87, PhD ’92,
assistant professor of marketing,described Edwards’ office as a “Black
student lounge. There was a lot of student
traffic between classes and at the endof the day. Dr. E knew more about thestudents’ social lives than did many of
their classmates.”Frederick McDonald, MBA ’95, said
the conference should have been re-branded a long time ago. “I would respond a lot
quicker to an e-mail invitation that has
Dr. Edwards’ name on it because I would
do anything for him,” he added.
Erica Roberson, MBA ’06, congratulatesProfessor Emeritus Al Edwards at the 30th
annual Black Business Students Association
Conference, which now bears his name.
STEVE KUZMAfor

STEVE KUZMAACROSS THE BOARD

“Dr. Edwards has done a lot of goodthings for a lot of people,” said Lucy Reuben,
MBA ’74, PhD ’91, a member of the Ross
School Visiting Committee. She spoke of
Edwards’ generosity in sending textbooks
to the Morris College Library, South Carolina State University’s School of Businessand Benedict College’s Department of
Business and Economics.
Dean Robert J. Dolan said of the annual
conference, “It’s a very special conference. It
brings together three generations — alumni
and current and prospective students —and captures the spirit of Dr. Edwards.”

SILVER ANNIVERSARYMGCS Honors
FounderDavid BrophyThe Michigan Growth Capital Symposium (MGCS), the first universitybased venture fair in the United States,
celebrated its 25th anniversary in May. The
annual symposium is a forum for financiers
to meet up-and-coming Midwestern firms
and learn about emerging technologies.
This year’s symposium, held in Ypsilanti,
attracted more than 425 participants:
angel and institutional investors, venture
capitalists and entrepreneurs from acrossthe nation, as well as Ross School students,
faculty and staff members. Forty-fivecompanies specializing in information
technology, life sciences and alternative
energy were showcased. In all, the MGCS
has presented more than 700 companies
to the investment community since 1979,
including Esperion Therapeutics andBlue Gill Technologies, both presented
in 1998, Arbor Networks in 2001 andAsterand in 2002.
David S. Evans, BGS ’85, chairman andmanaging director of Glencoe Capital,presented the symposium’s first Lifetime
Achievement Award to David J. Brophy,
associate professor of finance and symposium creator.
“For over 35 years at the University ofMichigan, Dave Brophy has driven excellence in education, entrepreneurship andthe annual symposium,” Evans said. “He
has played the paramount role in exposing emerging growth companies to professional institutional investors andtaught us the singular most important
thing about success: A good idea andyears of sweat are the tools for somethingthat is successful and long-lasting.”
The Center for Venture Capital andPrivate Equity Finance of the Samuel Zell
and Robert H. Lurie Institute for Entrepreneurial Studies hosts the MGCS,
which will be held on May 15-16, 2007, atthe Marriott at Eagle Crest, Ypsilanti. For
more information, visit
www.michigangcs.com.

FACULTY

10 Recognized for
Research, Teaching
and Service
he Ross School honored 10 faculty
members this spring for research,T
service and teaching excellence at theschool’s annual Faculty Awards Dinnerand other celebrations.
Kathleen M. Sutcliffe, professor of management and organizations, was named
Researcher of the Year. The award recognizes the substantial research contribution
and scholarly significance of related publications during a three-year period. Sutcliffe
became associate dean for faculty development and research on July 1.
Sutcliffe has published a number of
papers in academic journals and numerous chapters and monographs during
the past three years, noted Dean Robert
J. Dolan at the Faculty Awards Dinner.
Cindy A. Schipani, professor of business law and chair of Law, History andCommunication, received the Contribution to the Research Environment Award,
which Dolan described as “a classicallyMichigan award for a person who has
served as an incredible role model forcolleagues and students.”
Susan J. Ashford, the Michael and Susan
Jandernoa Professor of Business Administration and professor of management
and organizations, received the Andy
Andrews Distinguished Faculty Service
Award. The award was created in memoryof Richard W. (Andy) Andrews, associate
professor of statistics, who died in 2002.
Ashford has served as associate dean andsenior associate dean for academic affairs.
She is academic director of the Executive
MBA Program and an Academy of Management fellow.
David Hess, assistant professor of business law, was named the Bank One Corpo-

dividend 6 fall 2006

ration Assistant Professor of Business
Administration. The one-year appointment
recognizes promising non-tenured faculty
whose excellence in scholarly research promises to make a significant contribution to
the understanding of the field of business.
Hyun-Soo Ahn, PhD ’01, assistant professor of operations and management science, was named the Sanford R. Robertson
Assistant Professor of Business Administration. The one-year professorship recognizes
early career development and excellencein scholarly research. Ahn also was selectedby students to receive the 2006 BBA
Teaching Excellence Award.
William S. Lovejoy, the Raymond T.
Perring Family Professor of Business andchair and professor of operations andmanagement science, received the Victor
L. Bernard Teaching Leadership Award.
“This award recognizes contributions
across the board,” explained Dolan, who
noted that Lovejoy’s Integrated ProductDevelopment class, where students take anidea from drawing board to marketplacein 12 weeks, is one of the Ross School’s
most innovative and popular courses.
Four other faculty members were
honored for teaching excellence:
Jane E. Dutton, the William Russell
Kelly Professor of Business Administration, chair and professor of management and organizations and professorof psychology (PhD Teaching Excellence Award).
Gautam Kaul, the John C. and Sally
S. Morley Professor of Finance (MBATeaching Excellence Award).
M. P. Narayanan, chair and professorof finance (Executive MBA Teaching
Excellence Award).
James M. DeSimpelare, lecturerof accounting (Master of Accounting
Teaching Excellence Award).
Dean Robert J. Dolan presents the Contribution
to the Research Environment Award to Cindy A.
Schipani, professor of business law and chair ofLaw, History and Communication.
MARTIN VLOETACROSS THE BOARDQUOTE UNQUOTE
I don’t think that tensions and frictions are inevitable.
I think part of the reason you have them is because China is
still a developing economy and a developing polity. It does
not have the established domestic institutions or internationalroles that the United States has. So, obviously there would besome differences. China is at a different stage of development
than the United States. As China becomes more developedin all of these respects, then clearly we would expect actuallya decline of friction, at least on the Chinese side. On theperceptual side, however, I don’t know how Americans willview an up-and-coming power that might still remain
somewhat different from themselves.
Linda Lim, professor of strategy, discussing the relationship between China and the United States.
— NewsHour with Jim Lehrer, April 20, 2006

he economy has been fairly strong
over the last few years, and that“T
makes it harder to make the case that, inthe short run, tax cuts inevitably lead to
tax increases or spending cuts. But I don’t
think anybody disagrees there are verylarge fiscal imbalances in the government.
It’s very clear we’ve made no progress. In
fact, we’ve made the problem worse.”
Joel Slemrod, the Paul W. McCracken Collegiate
Professor of Business Economics and Public Policy,
commenting on legislative efforts to extend cuts
to tax rates on dividends and capital gains for
two years.
— Washington Post, May 12, 2006

these costs can be reduced 20 to 30 percent
through electronic HR or outsourcing. But
the real investor impact is on the intangible value where HR can help investors
have confidence in future earnings.”
Dave Ulrich, professor of business administration and co-director of the Human Resource
Executive Program, discussing ways to measure
the results of the human resources function.
—The Business Times Singapore, April 24, 2006

he impact could be huge. It could
shut down the agricultural sector,“T
the service sector, the fast food industries,

t’s almost like a perfect storm. We
have bankruptcies, labor and strike“I
issues, increasing costs and fewer people toserve the passengers. It’s a very big problem.
Few people really enjoy the experience ofsitting on an airplane for a long period oftime. You can do things like provide better
food and service, but what really makes
people irritated is the information flow
when something happens.”
Claes Fornell, the Donald C. Cook Professor of
Business Administration, professor of marketingand director of the National Quality ResearchCenter, talking about the toll flight cancellations
and delays are taking on overall customer satisfaction with the airline industry.
—The Wall Street Journal, May 16, 2006

ow could the Chinese cooperatewith us in the oil and energy“H
sector if they don’t trust us enough to be
confident that our Navy will not cut off
their oil supplies if tensions rise? If we
can trust each other to cooperate in theenergy sector, then this in turn can contribute to broader strategic trust in theoverall relationship.”Kenneth Lieberthal, the William Davidson Professor of International Business and professor ofpolitical science, urging Beijing and Washington totalk openly to boost confidence and avoid conflict.
— South China Morning Post, May 30, 2006

coffee shops and restaurants.”“W

hen people know they can bring
their pain to the office, they nolonger have to expend energy trying toignore or suppress it, and they can moreeasily and effectively get back to work.”

Jane Dutton, the William Russell Kelly Professorof Business Administration and chair of management and organizations, concludes that whentragedy happens, a quick and compassionate
response in the workplace can boost productivity
and build staff loyalty.
— Anchorage Daily News, April 17, 2006

“I

n valuing today’s companies, about
50 percent of market value comesfrom earnings and the other 50 percent
from intangibles, which gives investors
more or less confidence in the future. HR
helps with earnings by being more efficientin employee transactions. Estimates arethat firms spend (US) $1,500 per year per
employee on administrative costs, andKatherine Terrell, professor of business economics
and public policy, speculating on the impact ofwork slowdowns, economic boycotts and demonstrations by immigrants and their supporters
to protest immigration legislation passed by the
U.S. House of Representatives.
—The Detroit News, May 1, 2006

here a car is built is a very fuzzy
thing. At one point, Joe Sixpack“W
had to drive an American car. That’s simply diminished today. People with a scintilla of sophistication will just buy whatfits their lifestyle.”
Gerald Meyers, adjunct professor of management
and organizations and former chairman ofAmerican Motors Corp., talking about an advertising campaign to convince consumers to “buyAmerican.”—The Detroit News, May 12, 2006

dividend 7 fall 2006

Cs and private equity firms arelooking hard under rocks and“Varound corners to find deals. This is agreat time for entrepreneurs to come up
with the next big thing.”
David Brophy, associate professor of financeand director of the Center for Venture Capitaland Private Equity Finance.
— InformationWeek, March 20, 2006

oving offshore involves a trade“Moff. Typically you save a lot onlabor and you incur additional costs related toadministration and other issues. For big
corporations, the economics still work. But
for midsized ones, it’s easy to overestimate
how much you’re going to save.”
Robert Kennedy, executive director of the William
Davidson Institute and professor of businessadministration, cautioning firms not to overestimate
potential savings from moving work offshore.
— Austin American-Statesman, June 22, 2006

INTELLECTUAL CAPITAL

Achieving the Extraordinary:
Cleaning Up a Nuclear Nightmare
BY KIM CAMERONKim Cameron is a professor of management and organizations and co-founder of
the Center for Positive Organizational Scholarship at the Ross School of Business.
He also is a professor of higher education at the University of Michigan Schoolof Education and previously served on the faculties of Case Western Reserve
University, Brigham Young University, the University of Wisconsin and Ricks
College. In his research Cameron explores organizational effectiveness, the development of management skills and the effect of virtuousness on organizational
success. He has published more than 80 articles and 10 books, including Coffin
Nails and Corporate Strategies, Diagnosing and Changing Organizational Culture andLeading with Values. In 2006, Berrett-Koehler published his latest book, Making
the Impossible Possible: Leading Extraordinary Performance — the Rocky Flats
Story. It was co-written with his former student Marc Lavine, MBA ’03, MA ’04,
a doctoral student at the Carroll School of Management, Boston College.

T

ANDY SACKShe Rocky Flats nuclear weapons
production facility — a heavily
guarded, top-secret site housedin 800 buildings on 6,000 acres less than
20 miles from downtown Denver — wasshut down in 1989 due to the suspicionof extensive radioactive contamination.
The site had more radioactive waste thanany other nuclear weapons facility in the
country. It housed 21 tons of weaponsgrade nuclear material, 100 tons of high-

Kim Cameroncontent plutonium residues, nearly 15,000
cubic meters of transuranic waste, morethan a half-million cubic meters of lowlevel radioactive waste, and 30,000 litersof plutonium and uranium solutions —some stored in leaking tanks and unmarked
locations. Two buildings at Rocky Flatswere deemed the most dangerous in
America due to high levels of radioactive
pollution. More than a dozen rooms at
the facility registered “beyond infinity”
on radiation meters. Walls, floors, ceilings, duct work and soil were heavily
contaminated.
In 1995, Kaiser-Hill, a joint venture
between ICF Kaiser Engineers and theenvironmental engineering firm CH2M
Hill, was awarded a contract to clean up
and shut down Rocky Flats. It was a staggering task. No one knew how to clean up
and close a nuclear weapons production
facility because it had never been done
before. In addition, the workforce at Rocky
Flats had a history of antagonistic relationships with facility management, environmentalists, community activists, state andfederal regulatory agencies, and Congress.
Workers felt under siege and demoralized.
Their public persona had been transformed
from heroes who helped win the Cold
War to criminals who poisoned the Earth.
Suddenly they were being asked to put

dividend 8 fall 2006

themselves out of work by shutting down
the facility that had provided their families with a livelihood for generations.
The U.S. Department of Energy (DOE)
estimated that it would take at least 70
years and $36 billion to complete theproject, but it was questionable whether
the job could ever be accomplished. No
one in Washington, D.C., or the state ofColorado saw this as an opportunity forsuccess.
The Rocky Flats cleanup, however,
was an astonishing success — completed
60 years ahead of schedule and nearly$30 billion under budget. All 800 buildings were demolished, all surface level
waste was removed, the on-site safety
record improved five-fold and the remediated pollution levels surpassed initialfederal standards by a multiple of 13.
Today, the site is being transformed into
a wildlife refuge.
A new book — Making the Impossible
Possible—examines this spectacular performance by analyzing data gathered

INTELLECTUAL CAPITAL
pared to the pursuit of virtuousness andpositively deviant performance.
Achieving extraordinary performancenever occurs by accident, and leadershipis always a critical factor in accomplishingthese kinds of results. Here are a few of theoften counterintuitive leadership values
that were critical in closing abundance

THE MISSION MUST SURPASSSELF-INTEREST: Increasing share-

holder value and expanding market share
are common organizational objectives, but
extraordinary performance requires a more
fundamental, long-lasting and humane

THE PIXEL KITCHEN

during the cleanup as well as interviews
with the individuals involved, including
personnel from the DOE and the Environmental Protection Agency (EPA),
Colorado state and local officials, members of Congress and their staffers, representatives of community organizations andenvironmental watchdog groups, manag-financial benefits large enough to significantly impact their lifestyle, that is, toprovide opportunities never before afforded them.

LEFT Rocky Flats site in 1995
RIGHT This visual image of what Rocky Flatswould look like after cleanup helped build
consensus and contributed to success.

ers and supervisors working on-site at
Rocky Flats, labor union leaders and workers.
A key factor in the Rocky Flats success
was their focus on positive organizational
dynamics. More specifically, success depended on closing “abundance gaps”—
the gulf between normal performance andthe highest levels of performance imaginable. Usually organizations focus on correcting problems and closing “deficit
gaps”— elevating sub-par performanceand overcoming obstacles. Treating a sickpatient so the person returns to average
health closes a deficit gap; transforming ahealthy person into Olympic fitness levels
closes an abundance gap. In business, thesegaps are represented by the pursuit ofcompetitiveness and profitability com-gaps and achieving phenomenal results at
Rocky Flats.
THE LONE HEROIC LEADER IS A
MYTH: Individual leaders with positiveenergy, vision and the ability to get things
done are indisputably important, but multiple sources of leadership are necessary
for sustained organizational success. This
was the case at Rocky Flats, where numerous leaders in a variety of roles — within
the DOE, the EPA, the state of Colorado,
activist organizations and Kaiser-Hill —collaborated, shared common values andaligned around a common vision.
SIGNIFICANT INCENTIVES ARE
NEEDED TO CHANGE THINKING:

Research has shown that modest pay
increases do not increase on-the-job satisfaction or performance — and yet financial incentives are the most common
motivational tool used by organizations.
At Rocky Flats, this approach succeededin fundamentally transforming employees’ perspectives and performance because they had the potential to receive

dividend 9 fall 2006

purpose. At Rocky Flats, workers were
driven to go the extra mile, learned new
skills and invested more creative energy
because they were pursuing the profoundpurpose of mitigating the nation’s mostdangerous toxic site and creating a wildlife refuge for future generations.
SYMBOLIC MESSAGES MUST
REFLECT THE ORGANIZATION’SASPIRATIONS: Most companies create

symbols, messages and images — logos,
corporate colors, branding, slogans, insignia
and font styles — intended to convey what
the organization stands for, what it does
and what its attributes
are. More important, however, aresymbols, stories
and activities thatreflect what theorganization aspires
to become. At Rocky
Flats, project leaders
tore down guard
towers to convey aINTELLECTUAL CAPITAL
new openness, demolished a headquarters
building to get managers on-site withworkers and took steps to nurture “peace
gardens” planted by protesters to demonstrate the importance placed on relationships with the community.
BUREAUCRACY IS NECESSARY:

Popular business management literatureroutinely promotes the need to destroy
bureaucracy, break the rules, shred red tapeand obliterate organizational processes.
The Rocky Flats initiative succeeded,
however, because of tight controls, clear
standards, performance accountability,
precise adherence to established processes
that resulted in proficiency, a decline
in mistakes and safety violations, andvirtually flawless performance. Carefulassessment, metrics, milestones andstandardized procedures enabled KaiserHill to achieve dramatic success in acompressed time frame.
TRUST REQUIRES COLLABORATION AND MUTUAL SUPPORT:

Consistency, equity, honesty and discretion
are key prerequisites to trustworthiness inorganizations. If people are treated fairly,
are not deceived and have freedom to act
and observe consistent behavior, then trustis likely to be high. These behaviors are notenough, however, to produce the extraordinary level of performance seen at Rocky
Flats. Such success requires flawless followthrough on promises and commitments.
At Rocky Flats, a single instance of infidelity could have permanently undermined the trust of external stakeholders.
People are fallible, of course, so mistakes
occur. To prevent problems from escalating to the point where trust is breachedrequires collaborative relationships within
the workplace. Strong support provides
advice, assistance and resources that
ensure positive outcomes are reached
before external constituencies encounterthe results.
CULTURAL CHANGE BEGINSWITH INDIVIDUALS : The spectacular

results at Rocky Flats required a change inthe organizational culture, and that requireda fundamental change in people’s behaviors and beliefs. Workers abandoned thevision of a weapons production facility
that would provide them with life-longemployment and embraced the idea of
shutting down the facility and working
themselves out of a job as fast as possible.
They abandoned secrecy and a closed
culture and adopted openness. They

abandoned a hostile attitude toward stateand federal regulators in favor of a collaborative, collegial relationship. Management shifted its focus from profits to a
generous, share-the-benefits approach.
For the Rocky Flats culture to change,
individuals had to alter their beliefs andbehaviors.
LEARNING FROM MISTAKESIS OKAY, BUT LEARNING FROM
SUCCESS IS BETTER: Nobel laureate

Thomas Watson’s formula for success wasto “double your rate of failure.” That may
be true, but at Rocky Flats mistakes could
be costly, destructive or even deadly.
Errors also made it unlikely that KaiserHill would finish the job in a fraction of
the projected time at a fraction of the
projected cost. In this case, the organization focused on spectacular successes andextraordinary performance, identified thefactors that made them possible, anddetermined other “enablers” that could bemorphed into a strategy and replicated.
The Rocky Flats team produced morethan 200 technological innovations byanalyzing what worked and then improving on it. Errors and problems cannot beignored, of course, but they often consume an organization’s time and energy.
At Rocky Flats, building on success was a
priority that produced faster progress thananalyzing mistakes.
BUILD STRATEGY ON VISION :Most models of corporate strategy arebased on the organization’s core competencies, the dynamics of the competitivemarketplace and differentiators that can
produce a sustainable advantage. Spectacular results, however, require a strategy
that is built on a vision of what is possible
and on what never has been achieved
before — closing the abundance gap. The
vision at Rocky Flats was built on achieving unprecedented levels of performance.
Once aspirations were articulated, a strategy to achieve them was constructed.
VIRTUOUSNESS PAYS : There isinherent value in adopting an “abundance
approach”— that is, enabling the best of
the human condition, exhibiting virtuous
behavior, helping people thrive, being generous with resources, displaying unfailing
integrity, demonstrating humility and exercising faith. Within companies, however,this approach also must serve the bottom
line or it will be dismissed as irrelevant. At
Rocky Flats, virtuousness — pursuing thebest of the human condition — producedd i v i d e n d 10 f a l l 2 0 0 6

unimaginable dividends. Reaching for thehighest aspirations possible had a powerful
impact, which enabled the team to achieve
an objective that at one time seemed impossible — and to do so 60 years early and$30 billion under budget.
Scenes from Rocky Flats
1. Uncovering radioactive waste
2. Stripping concrete floors
3. Using a glove box to handle materials
4. Removing a glove box from the site

1.

2.

3.

4.

FACULTY RESEARCH

Stakes High When
Emotions Undermine
Sales Performance
STEVE KUZMAThe emotional undercurrent facing salespeople can be treacherous, according
to research by Richard P. Bagozzi, professor of marketing at the Stephen M.
Ross School of Business. In a series of studies published since 2000, Bagozzi
explores how anxiety, shame, embarrassment, pride, envy and other emotions
affect salespeople’s behavior.

Bagozzi, who is also professor of social andadministrative services at the College of
Pharmacy, taught at the University of Michigan
from 1986 to 2001 and then at Rice University
before returning to the U-M in 2005. He has
published 206 journal articles and authoredor edited 14 books. His research spans
multiple areas, including structural equations
modeling, attitudes and emotion, the behavior
and performance of salespeople, and development and refinement of the Theory of Action,
which addresses why people do not carry out
health-related behaviors despite positive
attitudes and strong intentions.
Bagozzi received the Paul D. Converse Award
for Outstanding Contribution to the Science ofMarketing from the American Marketing
Association in 2004 and an honorary
doctorate from the University of Lausanne,
Switzerland, in 2001.

T

he way salespeople cope withemotions and their effects has adirect relationship to job performance, says Richard P. Bagozzi. Selfconscious emotions generally are
triggered automatically; and salespeople
who cannot control them may become
aroused, angry, anxious or despondent
during a sales call, which may cause
customers to question their credibility.
Sales-call anxiety, for example, is commonly accompanied by a protective urge
to withdraw from the sales encounter —to avoid contact with customers or, whencontact is made, to be submissive andavoid taking steps to close the sale.
The adverse effect this behavior can haveon sales revenue growth is obvious — andsignificant. Salespeople face the possibility, even the likelihood, of experiencing
repeated rejection and failure day afterday, a difficult psychological environment
for sales personnel who are susceptible toself-conscious emotions. As a result,sales-call anxiety is quite prevalent, reaching intense levels for up to 40 percent ofsalespeople at some point in their careers.

“Coping with emotions,” Bagozzi explains,“differs fundamentally when you look at
it from one culture to another.”

Dean Robert J. Dolan said, “Richard Bagozzi
is arguably the most influential researcher inmarketing and is recognized as one of thegreat scholars of his generation.”d i v i d e n d 11 f a l l 2 0 0 6

A Downward Spiral
From Bagozzi’s studies, conducted with
Willem Verbeke of Erasmus University
in the Netherlands, a picture emerges ofsalespeople who are, at certain times andunder certain circumstances, vulnerable
to self-conscious emotions such as fear,
shame and embarrassment.
Let’s say a salesman is calling on a prospect for the first time. Meeting someone
new, feeling pressure to make a good
impression, and being wary of transgressions and fearful of rejection can all cause
self-consciousness.
The salesperson and customer comefrom different organizations and havedifferent backgrounds, expectations andobjectives. There may be differences inage, gender, race, religion, sexual orientation, social class and standing in thecorporate hierarchy — differences thatcan be magnified during a stressful sales
encounter. The salesman questions
himself —Am I dressed appropriately?
Have I said the wrong thing? Have I been
insensitive? Doubts emerge about dealing
with the customer — How does she preferto be addressed? Should I be deferential?
What does she think of me?
What if the salesman does say
something that might be perceived as
inappropriate? He appraises the situation,
consciously or unconsciously, and physiological changes occur — he sweats, hisheart races, his voice quivers, his stomach
becomes queasy. His attention and judgment are heightened and he focuses intensely on communication signals andsocial stimuli from the customer. Hisability to interact effectively may be curtailed. This is followed by new emotions
triggered by the negative emotions —being angry about being ashamed, forexample, and hard-to-control ruminations: Am I capable of doing this job?
In the future, the salesperson may
adopt “protective strategies” that help
him avoid this type of anxiety. This may
translate into an inability to accomplish
key tasks —reaching out to new customers, posing pointed questions andnurturing relationships, an inability
that effectively takes him out of the sales
game. The greater the shame andembarrassment the salespeople feel,Bagozzi has found, the greater theirprotective action and subsequent decline
in performance.

FACULTY RESEARCH
Sales-call anxiety is quite prevalent,
reaching intense levels for up to 40
percent of salespeople at some point intheir careers.

Cultural Variations
At least that’s the picture in Westerncultures. In a fascinating study publishedin the Journal of Applied Psychology in
2003, Bagozzi, Verbeke and Jacinto C.
Gavino Jr. of the Asian Institute of Management found very different results in Asia.
The researchers compared the effectsof shame on salespeople from the Netherlands, who see themselves as autonomous
individuals focused on personal achievement, and the Philippines, who see themselves as part of an interdependent social
network focused on collective goals.
These groups experience the same effects
from shame — heightened attention tothemselves, a sense of vulnerability, physiological symptoms and an urge to takeaction to protect their core self-image.
“This is part of our biology that we sharewith everybody,” Bagozzi says. “It’s human nature.”
When shamed, Dutch and Filipino
salespeople both take steps to protect
their core identity; but their core identities differ dramatically and so do theprotective steps they take. To Dutch salespeople, shame signifies personal failure
and threatens their self-worth. To protect
their individualistic self-image, they will
avoid situations that can lead to shame.

This strategy is likely to cause their performance to suffer. To Filipino salespeople, on the other hand, shame during asales encounter is a threat to their social
identity. For that reason, shamed Filipino
salespeople don’t withdraw from the sales
process. Instead, their protective instinct
is to take steps to repair the relationshipwith the customer, co-worker or supervisor at the center of the shameful experience.
In this way, Filipino salespeople stayengaged in the sales process to address
the issues that caused the shame, andtheir job performance improves relativeto Dutch salespeople. “Coping with emotions,” Bagozzi explains, “differs fundamentally when you look at it from one
culture to another.”

Corrective Action
How can a salesperson short-circuit
the negative effects of self-conscious emotions? Involuntary responses cannot be
prevented, but Bagozzi’s research suggests
effective countermeasures. “Throughtraining, role-playing and practice, salespeople can learn to respond in ways thatbring the sales interaction back to a functional and objective exchange of information and away from the disruption of
inappropriate and self-defeating behaviors,”

d i v i d e n d 12 f a l l 2 0 0 6

Bagozzi and Verbeke wrote in Psychology& Marketing in 2002.
Countermeasures include:
Awareness: It’s necessary to understand destructive behavior in order tochange it. Sales managers should beequipped to recognize the signs of selfconscious emotions. When they suspectthat fear, shame or other emotions areadversely affecting performance, theyshould alert the salesperson and work
together to address the problem. It’s important to adopt a coaching style and help
the salesperson understand that her or his
responses and behaviors are not unusual
and can be managed.
Be aware of triggers: Self-conscious
emotions often arise when salespeople
are pushed out of their comfort zones —for example, when sales strategies or customer accounts change.
Face the fear: Anxious people continuously perceive themselves as vulnerable and subject to danger. When they
avoid threatening situations, they neveraccurately gauge the threat or their ability
to overcome it, so their anxiety remains.
A repertoire of responses: It is often
customary not to acknowledge an eventthat triggered self-conscious emotions
during an encounter. On the other hand,salespeople can develop emotional intelligence that enables them to detect andrespond appropriately to non-verbal signals that convey disapproval. They also
can develop scripts and practice responses to potentially difficult exchanges inorder to sidestep the urge to avoid theinteraction.
Reduce approval seeking: Salespeople
with a high need for approval are lesslikely to ask for it and more likely to evaluate themselves negatively. Sales managers can help them understand what theirself-worth is based on and teach them tofocus on knowledge of the customer andthe product and not to overemphasize theneed for approval for its own sake.
Dave Wilkins

FACULTY RESEARCH

Is Workaholism
an Addiction?
or some people
workaholism mayFbe an addiction, justlike smoking and alcohol are for others, says
Joel Slemrod, the PaulW. McCracken Collegiate Professor of BusiJoel Slemrod
ness Economics andPublic Policy.
“High-income, highly educated people
are particularly likely to suffer from workaholism with regard to deciding when to
retire — going cold turkey on their addictive behavior,” says Slemrod, who also
directs the Office of Tax Policy Researchat the Ross School of Business.
Workaholism, he says, has been linked
to a variety of health problems, including
exhaustion, stress and high blood pressure,and can take an emotional and mental toll
on a worker’s family.
Recently, prominent economists havesupported very high taxes on cigarettes andother addictive activities, arguing that thesetaxes may actually benefit smokers who
suffer from self-control problems. Unlike
cigarette excise taxes, which are highly
regressive (those with lower incomes pay
a greater proportion of income in taxes),
the appropriate corrective policy forworkaholics — who tend to make moremoney — might involve levying a moreprogressive income tax burden (those withhigher incomes pay a higher proportion ofincome in taxes), Slemrod says, although
not necessarily higher taxes overall.
Using data from the University ofMichigan’s Retirement History Survey andPanel Study of Income Dynamics, Slemrod
and colleague Daniel Hamermesh of the
University of Texas found that workers withmore education are less likely to follow
through with their intended plans to retire.
In fact, each additional year of schoolingincreases the expected age of full or partial retirement by about four months.
“The results suggest that certain moreeducated and higher-income respondents
simply cannot help themselves,” Slemrod
says. “They express an expectation ofretirement, but when the time comes,
they are less likely to be retired.”
According to the study, workaholics
misjudge the benefits and costs of work-

ing more hours per week throughout
their careers and working beyond theirintended retirement date. Moreover,workaholics acquire their addiction earlyin their careers.

Highly Taxed
Stocks Yield Higher
Returns
nvestors who own
Iheavilystocks that are more
taxed also
receive higher returns.
Using new data covering tax burdens on aacross-section of equity
securities between 1927
Clemens Sialm
and 2004, Clemens
Sialm, assistant professor of finance, found a strong link between risk-adjusted stock returns andeffective personal tax rates (total tax paid
divided by net taxable income before
taxes).
Specifically, a one percentage point
increase in the effective tax of an equity
portfolio increases the average return ofthe portfolio by 1.54 percentage points.
“Consistent with tax capitalization, stocks
facing higher effective tax rates tend tocompensate taxable investors by generating higher before-tax returns,” Sialm
found. “The average returns of highly
taxed securities tend to be high because
their valuation levels are relatively low.
Thus, taxes tend to depress asset valuations, resulting in higher average beforetax returns.”
Sialm’s study shows that effective tax
burdens have varied significantly overtime. For example, the effective tax rates
on the market portfolio of common
stocks exceeded 25 percent in 1950, but
dropped to less than 5 percent in 2004.
“The aggregate tax burden on equity
securities has declined over the last couple of decades as tax reforms reduced
the statutory tax rates on dividends andcapital gains,” Sialm says. “Furthermore,
corporations replaced a significant fractionof relatively highly taxed dividends withshare repurchases.”
According to Sialm, stocks that distribute a greater proportion of their total
returns as dividends tend to be taxed
more heavily than stocks that distribute ad i v i d e n d 13 f a l l 2 0 0 6

smaller fraction of dividends. Dividendpaying stocks face, on average, an effective
tax rate nearly three times higher than theeffective tax rate of stocks that do not pay
dividends.
However, these highly taxed, dividendpaying securities tend to earn significantly
higher returns. The average return spread
between high-dividend and no-dividend
stocks is 4.55 percent, whereas the spread
is 3.63 percent between all stocks that pay
dividends and those that do not.
Sialm says that although dividends arehighly correlated with the effective tax rate,
it is the latter and not the former that is thedriving force behind the higher expected
returns. “Stocks paying high-dividend
yields tend to have relatively high riskadjusted returns, particularly in periods
when taxes are high,” Sialm says. “Thisresult indicates that the reported effects
are likely due to taxes and not due to thefact that dividend yields might proxy for
additional risk or style effects.”

Kresge Library
Provides Alumni
Access to Newsand Research
oss alumni can find links to databases that contain thousands ofRarticles and career resources online at
http://www.bus.umich.edu/KresgeLibrary/
Services/AlumniServices. Kresge
Library currently provides alumni freeaccess to 12 databases, including:Business Source Premier — Contains
2,480 scholarly journals and businessperiodicals.
CareerSearch — Provides recruiting
contacts by industry, geography andsize for nearly one million potential
employers.
Factiva — Offers company and industry financial data and news stories
from 6,000 publications, newspapers
and magazines.
WetFeet.com — Provides access to
WetFeet.com’s company and industry
Insider Guides.
Additionally, alumni can view Ross
School faculty working papers at the Social
Sciences Research Network. For moredetails, visit http://www.bus.umich.edu/
KresgeLibrary/Collections/Working
Papers.

CAMPAIGNThe Michigan Difference
W H AT I T TAK E SThe Ross School is both proud ofand grateful for the support it hasreceived from friends and alumni
committed to making us, undeniably, thebest at what we do.
In 2004 the University of Michigan
announced the most ambitious fundraising
campaign in its history. The Michigan
Difference is a $2.5 billion capital campaign supporting scholarships, endowed
professorships, academic programs andfacilities. The Ross School has been one of
the success stories of this campaign, raisingover $300 million to date. With two years
left in the campaign, we expect that the
momentum created by the extraordinary
support of our alumni and friends will
enable Ross to meet its $350 million goal.
“By developing innovative new programs and building a new physical plantto support these programs, we will be able
to offer the best business education in theworld,” says Dean Robert J. Dolan. “Ourtalented students will gain the necessary
business knowledge and analytical skills,
and they will develop unique leadershipskills through our action-based learning
programs. This combination of theory
and practice will prepare Ross students tocompete with the brightest and the best
Stephen M. Ross

d i v i d e n d 14 f a l l 2 0 0 6

when recruiters are placing new graduates around the world.”
In addition to the unprecedented giftof $100 million from Stephen M. Ross,
BBA, ’62, other gifts from generous alumni
have enabled the school to move forwardwith an extensive facilities project thatwill transform the learning environment
for students and faculty.
The necessary funds have been raised
to begin construction, but fundraisingcontinues so that we can meet the balancethat will be required by the end of construction. We also seek support for the
programs and people that distinguish
Ross as a superior business school.
Ross alumni and friends are motivatedby students and their stories about the
rigor and utility of a Ross education.
Support from people like Samuel Zell,
BA ’63, JD ’66, and Tom Jones, BBA ’68,

CAMPAIGN
MBA ’71, offers students the opportunity to gain practical, real-world experience while they still have the support of Ross’ world-class faculty.
Will Caldwell, AB ’48, MBA ’49,
attributes his success at Ford Motor
Co. to speech courses he took as anundergraduate in LSA. He and his wife
Jeanne have endowed a fund named
the Richard Dennis Teall Hollister
Business Communication Fund inhonor of the professor whom he credits with giving him the skills to succeed. The $1 million endowment will
enhance the BBA Communications
program by offering new classes that
explore intercultural communications
with overseas partners, and programs
such as a speaker series that would
invite experts in the fields of presentation, persuasion and communication
strategies.
David Carson, BBA ’55, has donatedfunds to create the Carson Scholars
program. Last spring, through Carson’s
support, four dozen BBA students spenta week in Washington, D.C., exploring
the relationship between governmentand business. To read more aboutDavid Carson and the Carson Scholars
program see the article on page 32.
Stanley Frankel, AB ’63, MBA ’64,
and his wife Judy have made it possible
to leverage the talent and resources of
the Ross School to increase the number of successful commercial venturesthat originate at the school. The Frankel
Commercialization Fund supports thedevelopment of entrepreneurial skills
by giving students the opportunity towork with inventors and venture capital companies to accelerate the commercialization of products and processes.
So please take a moment to celebrate what the Ross community has
achieved to date in making the Michigan
Difference a reality. We hope you lookforward, as we do, to the Ross School’s
continuing evolution into one of mostinfluential learning communities ofthe future.
Wendy Palms

A Blueprint for the Future
onstruction is underway for the new
Ross School of Business. Thanks toC
the $100 million gift from Stephen M.
Ross and many other generous alumni, weare managing this project on a timelinethat minimizes disruption to our community, allowing us to continue to operate
on part of our original footprint whileconstruction takes place.
The goal for the 270,000-square-foot,$145 million facility is a complete transformation of the learning environment for
students and faculty, designed as a perfect
fit for the Ross School’s action-based
curriculum.

Difference Makers
Recently many alumni and friends havemade generous gifts to the campaign, aportion of which will ensure the building
project’s success. While the school continues
to raise funds, lead gifts have come from:$1 MILLION AND ABOVE

Jeff Blau (BBA ’90) of New York, N.Y.
Jane Caplan (BBA ’86, MACC ’86)
and Dan Och of Scarsdale, N.Y.
Campaign Co-Chair Michael(BBA ’75) and Susan Jandernoa
of Grand Rapids, Mich.

$250,000 AND ABOVE

Michael J. (BBA ’80, JD ’83) and
Dede (BGS ’80) Levitt of Alpine, N.J.
John (MBA ’05) and Nancy Kennedyof Grand Rapids, Mich.; gift will recognize the Executive MBA Class of 2005.
Michael (BBA ’66, MBA ’67) andMary Kay Hallman of Redmond, Wash.
Robert Tom Zankel (AB ’85, MBA ’91)
of New York, N.Y.
$100,000 AND ABOVEDavid (BGS ’83) and Gayle Sidler(AB ’83) Bernhaut of Watchung, N.J.
Lisa Black (MBA ’87) of Rye, N.Y.
David S. (BBA ’62, MBA ’63) and
Shelley Hickman of Tecumseh, Mich.
Michael (BBA ’87) and Dana Hokinof Scarsdale, N.Y.
Hal (MBA ’68) and Mary
(AB ’69, CERTT EDUC ’71) Kellman
of Fremont, Calif.
Clyde (BBA ’70, MBA ’74) and Harriet(AB ’69, CERTT EDUC ’69) McKenzieof Empire, Mich.
Vincent McLean (BBA ’54, MBA ’55)
of Westfield, N.J.

Frederick (MBA ’67) and Darla Brodsky
of Dallas, Texas

Ravi (MBA ’96) and Christine (MBA ’97)
Mohan of San Francisco, Calif.

Stephen (MBA ’70) and Karen Sangerof Minneapolis, Minn.

Timothy W. (MBA ’80) and
Beth O’Day of Hinsdale, Ill.

Judy and J. D. (BBA ’67, MBA ’68)
Williamson II of Salinas, Calif.

Richard E. (MBA ’72) and Ann Caroline
Posey of Chagrin Falls, Ohio

$500,000 AND ABOVE

Andrew Barowsky (MBA ’74)
of Auburn, Maine
Michael R. (MBA ’83) and Debra
Gelband of New York, N.Y.
The Globe Foundation through theauspices of Bert A. Getz (BBA ’59) of
Scottsdale, Ariz., and Bert A. Getz Jr.
(MBA ’95) of Northfield, Ill., and family
Jeffrey (BBA ’82) and Jan Richof Dallas, Texas

Will Caldwelld i v i d e n d 15 f a l l 2 0 0 6

G. Leonard (BBA ’64, MBA ’65) andDorothy Teitelbaum of Holmdel, N.J.
A. Kirk (MBA ’80) and Connie Twissof Chicago, Ill.
Gary T. Walther (BSME ’60, MBA ’63)
of Chicago, Ill.

ALUMNI AT LARGEManaging HR in a
Multicultural WorldCYNTHIA TRAGGE-LAKRA, MBA ’93, MA ’93“The way I interact with someone in
Brazil is quite distinct from how I interact
with people in the U.S. or Canada.
Understanding what motivates employees
in different cultures and environments is
key to running a successful multinational
company.”As senior vice president of humanresources for GE Consumer
Finance, Cynthia Tragge-Lakrabrings a lifelong appreciation for culturaldifferences.
“The way I interact with someone in
Brazil is quite distinct from how I interact
with people in the U.S. or Canada,” sheobserves. “Understanding what motivates
employees in different cultures and environments is key to running a successful
multinational company.”
Her global awareness emerged early.
For three years in high school, TraggeLakra was part of a special program inwhich students met and discussed world
events from alternate viewpoints. “Forexample, a textbook might teach about
World War II from a U.S. perspective, but
we would look at it from the vantage of
people living in Germany or Japan,” sheexplains. “The point was to recognize
there is no single right way of thinking.”

Tragge-Lakra came to the University ofMichigan to pursue an interest in French
literature, but became captivated by China — its social movements, history andculture. “Asia was the wave of the future,and I wanted to be on board.” She moved
to mainland China after graduation andquickly found work in Beijing and laterin Fukuoka, Japan. Then, ready to expand
her skills, she looked for a degree program that combined international business and Asian studies. Nothing topped
the opportunities at Michigan.
“Because of the way the Michigan MBA
is structured, I gained a much deeper
understanding of how multinational
companies operate,” she relates. “Beyond
general management, we were exposed
to aspects of accounting, statistics, operations, finance — the full range of expertisethat is needed to move the whole enterprise forward.”
She was in on the early stages of theschool’s Center for International Business
Education and helped launch the William
Davidson Institute. A Global Fellow,
Tragge-Lakra also made valuable contacts
with participants in Executive Education,and gained insights on “how executives
think.” Professor Noel Tichy, directorof the Global Leadership Program, raised
her interest in human resource management and opportunities at Generald i v i d e n d 16 f a l l 2 0 0 6

Electric. With an MBA in international
business and an MA in Asian Studies,
she easily could have resumed her career
abroad. But she wanted to prove herself
in a large American corporation.
“I had only worked for small businesses;
my early experience was in managing
call centers for my mother’s telephoneanswering service. So I was always intrigued by large companies. They seemed
to offer a wealth of resources — much likethe University of Michigan.
“GE views HR as pivotal to the company’s future,” she adds. Working within
five different GE businesses over the past
13 years, she is responsible for leading thecompany’s strategy on labor and communication issues and executive talent development. Tragge-Lakra and her teamsupport some 33,000 workers across 15
countries.
Her attraction to other cultures also
is reflected in her personal life. She ismarried to Rajeev Lakra, MBA ’91, whoworks at GE in risk management and has
family ties to India, Thailand and Singapore. Besides international travel, thecouple’s spare time is focused on theirthree-year-old daughter Lauren. The
family lives in Weston, Connecticut.
Each day, Tragge-Lakra engages the
curiosity about people and cultures she
discovered in high school. She credits
Michigan with deepening her understanding of each business function in
the global environment. “From an HR
perspective, it helps me assess individual
capabilities and develop leaders and programs that will meet our future needs.
“What’s exciting is that I’m reallyresponsible for understanding the differences among employees from country
to country,” she relates.
“I also try to focus on what’s the same:a corporate culture that emphasizes integrity, personal development and performance. These are core values that we have
proven work throughout the world.”
Pat Materka

ALUMNI AT LARGEDistilling the Spiritof Sustainability
ROB FREDERICK, MBA ’00, MS ’00

F

rom SUVs to Kentucky bourbon,
Rob Frederick’s career path madea jackknife turn. And it illustrates
a promising trend: More companies are
addressing environmental and social
issues as part of their business plan.
“Sustainability — a commitment tosocial responsibility and environmental
stewardship — is reaching beyond niche
leaders like Ben & Jerry’s and Patagonia,”
he contends. One mainstream example
is Ford Motor Co., where Frederick waspart of a small team of specialists focusedon sustainable business practices. For five
years, he led Ford’s response to issues
such as greenhouse gas emissions andclimate change. He helped market thefuel-efficient Escape Hybrid and developed a corporate citizenship report thatwas ranked second best in the nation.

He sees two opportunities for students
who share his interests: “One, becomea specialist in corporate responsibility;or two, expose yourself to environmental
and social issues and bring this awareness to whatever field you choose.”

In 2005, Frederick was named assistantvice president and director of corporate
responsibility at Brown-Forman Corp.,
whose products include name-brandwines and spirits such as Fetzer and Jack
Daniel’s. In his new position, he is developing programs addressing social concerns.
“The issue is how we encourage responsible consumption of our product. We must
tackle problems such as underage drinking and drunk driving. Alcohol abuse isbad for our communities, our consumers
and our company.
“There is also an environmental component,” he continues. “Stewardship is

important across all ourbusiness activities, from
how the grains andgrapes are grown, to
how the product is madeand transported, to what
happens to the empty
bottles. How do weconserve our natural
resources?”
Brown-Forman
points to a history of
citizenship; however, its
newly created corporate
officer position raises thatcommitment to a newlevel. Frederick heads asmall office that reports
directly to the COO.
And what is thesource of his passion? “Iwish I had an epiphany
story,” he confesses.
Maybe it was the family
vacations in Maine andstudies abroad in Australia that made him
appreciate “the pristine outdoors.” Hefound an instant match in Duke University’s new degree program that combined
environmental science, public policy andeconomics. “As an undergraduate might,
I thought companies were at the root of
the problem,” he relates. Three years into
working near D.C. as an environmental
analyst, he decided that companies could
be part of the solution.
“And at Michigan’s business school,
I realized companies have considerable
power and influence to bring about changes.” Once again Frederick chose a newentrepreneurial program leading to an
MBA and an MS degree from the Schoolof Natural Resources and Environment
through the forerunner of what today is
known as the Frederick A. and Barbara
M. Erb Institute for Global Sustainable
Enterprise. While at U-M, he helped
create and teach the first-ever undergrad-d i v i d e n d 17 f a l l 2 0 0 6

uate course in business and environment.
“I enjoy things that are new and entrepreneurial — different interests coming
together and finding a common ground,”says Frederick, who sees internal education, along with advocacy, as a key part ofhis role at Brown-Forman. He is bolsteredby a strong network of peers entering thisgrowing field of practice, bringing in brands
like Nike, Starbucks and Timberland, andmore recently GE and Wal-Mart.
Another plus: “My wife Amy, who is

a PhD candidate in art history, is fromLouisville, so this is a rare chance to beclose to family while doing work I love.”
The Fredericks have two daughters, Lucy,
1, and Caroline, 4. He is active in several
local and international organizations,serving on the boards of Bernheim Forest
and Global Reporting Initiative. He also
enjoys Kentucky horseracing, runningand golf.
Frederick sees two opportunities forstudents who share his interests: “One,become a specialist in corporate responsibility; or two, expose yourself to environmental and social issues and bring thisawareness to whatever field you choose.”
Either path is positive. “Ultimately,
we need to be able to make the case that
responsible business is better business,”he concludes. “The Ross School’s MBA
program gives you the skills and language
to take action and make a difference.”
Pat Materka

A Balanced LifeJOEL TAUBER HOLDSFAST TO PRIORITIES

J

simple plan, and it worked.
“I said, okay first I have to think of myfamily, my kids. Second came making aliving: I have to feed everybody. Third camephysical fitness. My dad died very young.
Heart — 52 years old. So that became amatter of urgency.”
He gestures to his flat belly. “As you
can see, 71 years old, not too bad.
“Fourth was philanthropy. Fifth wassocial.
“Every few years, I’d reevaluate where
I was in my life. And I’ve kept those samepriorities to this very day. The amount oftime I’ve put into each varied drastically.
But the priorities stayed the same.
“Where I had a conflict, I always chose
things in that order. My son said to me maybe a year ago, ‘Dad, how did you always
go to all my events and manage my teams?
I’m going crazy here trying to do all thesethings!’ I did it because that was what was
important to me.”PHILIP DATTILOIDENTIFIED YEARS AGO

oel Tauber is on his feet fast with his
hand extended and a quick grin
lighting his face. His words roll out
fast too. You’ve barely entered the officesof Tauber Enterprises, high over suburban
Detroit, before he’s running you throughthe framed family photos along the window
sills —“…wonderful wife, wonderful kids…”—then a quick autobiography—“I’ll justgive you a brief summary…”—a round-upof his current projects —“There’s a lot goingon…”— a list of changes he’s pushing for
the Ross School’s Tauber Manufacturing
Institute —“It’ll make a huge difference…”— a glance at the auto-supply industry—“I’m convinced now is the right time to buy…”— a quick analysis of the Arab-Israeli
crisis —“…the U.S. must mediate, it can’t
happen without the United States.”
And before you know it an hour is gone
and you’re out the door thinking that only
a guy who covers ground that fast could
do everything Tauber has done, which
includes raising a family, building a small
scrap-metal business into a manufactur-

ing empire, running the massive United
Jewish Appeal and playing a central rolein the historic emigration of hundreds ofthousands of Jews from the Soviet Union
and Ethiopia to Israel.
Yet for all his sense of hurry, he leaves
the impression of a life in balance. He lacks
the uneasy restlessness that one detects inmany highly successful people. At 71, he’s
been working for nearly 50 years. But helooks and acts young. He may move fast,
but you sense the serenity at his core. You
think: “This is a happy man.”
Tauber started fast. He graduated from
Detroit’s Mumford High School, the samealma mater as another business school
benefactor, Stephen M. Ross. By age 24,
he had completed a BBA (1956) and a law
degree (1959) at Michigan, married andstarted a family. A Michigan MBA (1963)
came soon thereafter.
Caught up in the cross-pressures offamily and work, he sat down with pencil
and paper before he was 25 and wrote down
a set of priorities. It was an astoundingly

d i v i d e n d 18 f a l l 2 0 0 6

aking a living — and it became avery good one — occupied most ofM
his time for the first 30 years of his career.
His first wife’s father Barney Keywell —“a major, major part of my life”— hired
Tauber to help run his newly acquired
manufacturing operation, which had
supplied the auto industry for many years.
Despite a divorce, Tauber remained thehead of the operation. He diversified thefirm into plastics, engineered a series ofleveraged buyouts and by the early 1990spresided over close to a billion-dollar
cluster of companies with some 30 factories. Married to his second wife Shelley,
he began to devote much more of his timeand energy to philanthropic activities.
Among his interests was the Universityof Michigan Ross School. His key contribution — the Tauber Manufacturing Institute(TMI) — began with the memory of his
own transition from business school to thejob of running a factory that made thosemost basic of industrial products — nuts
and bolts.
“I found out that even with all my degrees,
I was totally inadequately prepared forwhat I faced,” he says. “My first problem
was just how to count the stuff. For a lotof reasons, people wouldn’t give me an
accurate count. You know, I was all set
to use my accounting knowledge and it
totally distorted my books, because mybase numbers were wrong. I was getting
bad production numbers. So I set up a
training program for myself.”
The idea of a joint manufacturing program in business and engineering to provide training in real-world manufacturing
settings took shape at the U-M in theearly 1990s. At the instigation of thenDean B. Joseph White, Ross School Professor Brian Talbot and a College of Engineering counterpart formed the Michigan
Joint Manufacturing Initiative (MJMI),
which admitted its first students in thefall of 1993. Tauber was so enthused
about the program that he committed$5 million to support it — transforming
MJMI into the Tauber Manufacturing
Institute.
“In a quiet, non-arrogant way, Joel had
an aspiration to greatness that he followed through on,” says Dean Robert J.
Dolan. “He saw something that could
happen that would be very special, and hedidn’t cut any corners. He saw that TMI
was going to have to include both thebusiness school and engineering. It wasgoing to need practitioners on advisoryboards. And it was going to take a significant amount of money. And he wasn’t

Joel Tauber helped relocate Jews of Ethiopia to Israel in 1991, when the African nation wasembroiled in civil war.

saying, ‘I’ll do this little piece and you
guys have to do the rest.’”Tauber immediately became engaged
in TMI, including spearheading the restof its endowment fundraising. He sawthat if manufacturers were consulted onwhat should be taught at TMI, they’dspend less on educating new graduates
about real-world manufacturing, thus
making those firms good prospects tobecome donors to the institute. That
approach has helped TMI establish an
endowment worth close to $20 million.
Now, a decade later, Tauber is watching
the globalization of manufacturing andarguing for TMI to push its boundaries
outward. “The world’s changed,” he says.
“The Dell model of doing no manufacturing,
just managing the supply chain, has become
the prevalent methodology. Cars today are
made everywhere — Japan, America — andthe parts come from all over. So the whole
nature of manufacturing has changed.”
As a key adviser to TMI and a member
of its industry advisory board, Tauberwants to see the institute set up close ties
with business schools in the Far East,
Middle East and Eastern Europe. In those
far-flung places, Michigan students would
embark on the same sort of hands-on
learning that TMI students have undertaken in the United States.
“Students see the global change.
They’re plenty smart at Michigan; they’ve
figured that out. They want an opportunity to go work in China. A guy who
speaks Chinese, has an MBA and an engineering degree — he’s going to be pretty
popular out there.
TMI John Deere team members, left to right,
Jens Nielsen, ME ’07, Karen Putterman, MBA/MS, ’07, and Caroline Conway, MBA/MS ’08,
worked this summer on a supply chain initiative
to deliver seeding machinery components to
Russia. The team, shown here in front of St. Basil’s
Cathedral in Moscow, presents its summer projectat Spotlight! on September 15 in Ann Arbor.

d i v i d e n d 19 f a l l 2 0 0 6

In his 45 years in American industry,
Tauber has seen hard evidence of the
proposition that success requires keen
attention to constant improvement.
“The Japanese who came up with the
Toyota method — I was thinking aboutthat the other day,” he says. “How did
we let them come up with that? We
dropped the ball there. The steel industry in the ’60s, the auto industry in
the ’80s, IBM in the ’90s — you think
you have the right formula, but you
never do. ”

“It’s a major change that will make ahuge difference. It’ll change the whole
nature of the institute. We’re thinking ofchanging it to the Tauber Global Manufacturing Institute.”
In his 45 years in American industry,
Tauber has seen hard evidence of the
proposition that success requires keen
attention to constant improvement. “TheJapanese who came up with the Toyota
method —I was thinking about that theother day,” he says. “How did we let themcome up with that? We dropped the ballthere. The steel industry in the ’60s, theauto industry in the ’80s, IBM in the ’90s
— you think you have the right formula,but you never do.
“You have to be on the cutting edge all
the time. What’s new? What can I change?
How can I make the future different andbetter? Living on the outer edge is not
comfortable because you make mistakes.
You have to be willing to accept that. But
if you keep yourself on the cutting edge,
then you’re always ahead of the game.”“A lot of my friends spend a lot oftime on the golf course. I think they’re
missing something. Play golf? I lovegolf. I played it for years. I gave it
up five years ago because it was
just taking too much time, and there
wasn’t enough gratification. Does itmatter if I shoot 82 or 86? I mean, yeah,okay, that’s nice. But as compared
to … ? They’re giving up something, in
my view. You get tremendous internalsatisfaction out of helping others.”

n his mid-30s, Tauber visited the site of
the infamous Nazi concentration camp
Iat Mauthausen,
Austria, the mountaintown where tens of thousands of Jews andpolitical prisoners were worked to deathin rock quarries and tunnels.
“I made up my mind then that I was
always going to speak out,” he says. “Iremembered from my youth, it was always,‘Shh! Don’t talk about it! Don’t let anyone
know you’re Jewish!’ In my view, that’s
one of the causes of the Holocaust. If
people had spoken out more, had taken
stronger positions and united and marchedand done some dramatic things like we’re
doing in Darfur now, it could have beendifferent. Maybe nobody will listen. Maybe
they will. But myself and my generation— we’re always going to speak out as Jews
to make sure it never happens again.”He had always been active in the affairsof his temple and the local Jewish community. But in the 1980s and 1990s, Tauber
stepped into much larger roles. He became
one of the key Americans who raised$1 billion to move 1.3 million Soviet Jews
to Israel and the United States. When the
Jews of Ethiopia were put at risk amid
political violence in 1991, he played aneven more active part.
“I went there and met them. We broughtout 14,000 in one weekend. The Israeli
Air Force flew planes back and forth from
Ethiopia in the middle of a civil war. Fabulous story. And a very important part of
my life.”Back home, as president of the United
Jewish Appeal, he worked to consolidate
all the major Jewish organizations intoa single organization, an effort he now
regards as “huge, unpleasant and, I mustsay, basically never reached its potential.”
Yet he remained heavily committed toJewish causes, consulting with U.S. andIsraeli leaders and raising more money
to assist the Ethiopian Jews.
“Because I had such an investment in
the Ethiopians and I didn’t like the way
they were being integrated into the mainstream of Israeli society, I got involved.
But the heart of the money I wanted to see
spent was in Israel, upgrading the statusof the Ethiopians, because it wasn’t doneright. We know now how to do it right.”
hrough all of this, Tauber remained
an active businessman. But here tooT
his incentive had shifted from profits topeople.
“Eight or ten years ago,” he says, “I
decided, ‘Ah, I’ve made enough money
to do the things important to me.’ But I
always maintained a finger in my businesses — buying and selling, as a nonexecutive chairman — and that put me
in a position where they would come tome and we’d discuss strategies.”
He consults often with his son Brian,
MBA ’92, JD ’92, who runs two of the
Tauber Enterprises companies, and Joel
remains an active adviser to executives
throughout the concern. “It keeps me
young,” he says. “I’m thinking about
issues where I can make a contribution.
That’s extremely gratifying.

d i v i d e n d 20 f a l l 2 0 0 6“The kid that runs my largest business,
I hired him out of Michigan — captain of
the basketball team, Mark Lozier. Verystrong personality. Great leader. Early on,
we had some conflict in our relationship.
And it’s evolved over time. It’s been, like,25 years, and we have a very close relationship now. We had an annual meetingthe other day where I made that point. I
said one of the reasons I was staying in
the business was that I care about Mark.
That’s very satisfying.
“The selfish part of my still staying
active is keeping my mind sharp. I’ve
found that the mind needs exercise thesame way the muscles do, and I was afraidthat if I went into the golf/gin-rummy
mode, it would atrophy. Other people, it’s
great, that’s good for them. But not for mymakeup.”Why does Tauber do so much to help
others when he could kick back and pursue personal pleasures?
“I’ve asked that question of myself.
It’s very hard to say. A lot of my friends
spend a lot of time on the golf course.
I think they’re missing something. Play
golf? I love golf. I played it for years. I
gave it up five years ago because it was
just taking too much time, and there wasn’t
enough gratification. Does it matter if I
shoot 82 or 86? I mean, yeah, okay, that’s
nice. But as compared to ...? They’re giving up something, in my view. You gettremendous internal satisfaction out of
helping others.”
Gratification comes in small ways andin unexpected moments. Not long ago,
Tauber was at a football game at Michigan
Stadium when a man in his 50s approached
him and said, “I want to thank you.” He
told Tauber that a scholarship from afund set up by Tauber’s father-in-law had
helped him through Michigan.
“But that wasn’t why I stopped you,”the man said. “My son just graduatedfrom TMI and he was president of thestudent organization.”“That just made me feel very good,”
Tauber says. “That’s gratifying — to makea little, teeny-weeny difference. Not a big
difference. I know that. But in one person’slife, maybe. And that’s pretty good.”James Tobin

Left to right, TMI Co-directors Robert Culver,
Roman Kapuscinski and Yavuz Bozer anticipate
increased demand for leaders trained inbusiness and engineering.

The institute has broadened its scopein recent years to include all aspects ofoperations management and manufacturing strategy. “We’re extending the boundaries,” explains Robert Culver, MBA ’75,
TMI’s industry co-director and adjunctprofessor of business and engineering.
“Our mission remains the same: todevelop a new breed of executives withadvanced capabilities in engineering andbusiness management. But our definitionof manufacturing has grown beyond thefour walls of the plant and includes everything from product design, logistics andsupply chain to production and evenfinance. We’re looking at the whole enterprise,” says Culver, who joined the U-M
in 2004 after retiring as a senior manager
at Ford Motor Co., where he had worked
for more than 35 years.

“Our definition of manufacturing
has grown beyond the four walls of theplant and includes everything fromproduct design, logistics and supply
chain to production and even finance.

PHILIP DATTILO

We’re looking at the whole enterprise.”G

lobalization has given rise to
many challenges, but reports ofthe death of American manufacturing are premature, according to theco-directors and members of the Industry
Advisory Board of the Tauber Manufacturing Institute (TMI).
In fact, predict the industry representatives, though some manufacturing activities
inevitably will move to lower-cost offshore
regions, demand for manufacturing leaders
trained in business and engineering will
increase as a result of such globalization.
TMI, which currently places 100 percentof the 45 to 50 students it graduates eachyear, plans to expand enrollment to 70 to

80 new students per year. Nationallyknown for its action-based learning andleadership components, TMI also brings
together business and engineering students and faculty to develop solutions to
manufacturing challenges. TMI-affiliatedfaculty members share this new knowledge in the classroom and in the wider
business community.
When TMI was established in 1993
as a partnership of the Ross School,
College of Engineering and private industry with the support of advocates like Joel
D. Tauber, BBA ’56, JD ’59, MBA ’63, itsgoal was to give American manufacturing
a boost.

d i v i d e n d 21 f a l l 2 0 0 6“Because of globalization and the needto coordinate manufacturing processes
resulting from increased fragmentationof production, firms will place high value
on supply chain managers for the next 10
to 15 years,” predicts Roman Kapuscinski,
the Goff Smith Co-Director of TMI andassociate professor of operations andmanagement science at Ross.
Operations people, by necessity, arebecoming supply chain experts, says
Kapuscinski. He cites the example of asmall firm that supplies Gap clothing
stores. The garments are assembled in as
many as five countries. Because shipping
and lack of coordination add to costs,
Kapuscinski predicts cheap, small items
like clothing and toys will continue to be
produced far from where they are sold,while more complicated and bulky products such as automobiles are likely tobe produced closer to the consumer.
“Few countries are providing the kindof training people need to become supply

Left to right, TMI team members Jeffrey Zens,
MSE ’06, Shilpa Maniar, MSE ’07, and Aram
Mazmanian, MBA/MSE ’06, worked at Lockheed
Martin Space Systems Co. in 2005 on a projectto optimize and relocate warehouse functions.

chain experts. We want to be the best in
this fast-growing area,” says Kapuscinski.
TMI grew out of the Michigan Joint
Manufacturing Initiative (MJMI), which
accepted its first students in 1993. Tauber,
whose major gift was responsible for thetransformation of MJMI into TMI, recalls,“When I was invited to take over a manufacturing business more than 30 years
ago, I had to develop my own training
program because what I learned at business school didn’t prepare me to understand the whole organization. I worked
with people on the business side andmanufacturing side and came to realizethat a comprehensive approach was amuch more effective way to prepare forthis kind of business.”
Since TMI’s founding, more than 500
University of Michigan graduates’ transcripts note their fulfillment of TMI’s
extra requirements in addition to theirmaster’s degrees in business or engineering. Some students have earned degrees
in both business and engineering.
Only two universities offer similar
programs of this caliber: Massachusetts
Institute of Technology’s Leaders for
Manufacturing and Northwestern University’s Master of Management andManufacturing. However, TMI stands
out from the competition, notes Yavuz A.
Bozer, the Ford Motor Company TMI

Co-Director and professor of industrial
and operations engineering. Contributing
to TMI’s distinctiveness are its uniquesummer team project internships and its
formal leadership development program.

Team Projects
TMI’s 14-week team projects are alearning experience not just for the students, but also for the faculty advisers andindustry sponsors. A team of at least one
MBA student and one engineering student work with a company on a specificproblem. “We call it operations-related
consulting,” explains TMI Managing
Director Diana Crossley. Each teamworks at the corporate sponsor’s site dur-ing the summer and presents its analysisof the problem and specific recommendations to the sponsor. In many cases, theteams actually pilot the recommendations
or begin the implementation process. In
mid-September back in Ann Arbor, thestudents present their project findings
at the Spotlight! competition to an audience of students, alumni, faculty andrecruiters. At Spotlight! industry judges
evaluate each project’s scope, implementation and impact as well as the team’s
presentation skills. The top three teams
earn scholarship prizes totaling morethan $30,000.
“Companies expect more from TMIinterns and, in turn, the TMI teams get
considerable exposure. It is common forteams to present their efforts to a vicepresident or even to the CEO,” Culver
says. “Also, because each project has afaculty adviser from both business andengineering, students have the advantage
of looking at projects from two dimensions.”
Students gravitate toward projects
that deal with strategic issues and havehigh value to the sponsor, says Crossley.
“Students like the teaming aspect, especially the opportunity to work with classmates from different backgrounds. Team
projects also are an opportunity to learn
about a corporation’s culture and thesector in which it operates.
Left to right, TMI Boeing 777 team members
Wilfredo Durand, MBA ’07, Taoufik El Khazzani,
MSE ’06, and Vince Giovannetti, MBA ’07,
stand in front of an engine, with cowls extended
for testing.

TMI Alumni
Advise Students:
Think Globally

SCOTT GALVIN“We see a huge change in students
between the beginning and the end of thesummer. MBA students, who usually are
five years older than their undergraduate
engineering teammates, realize howmuch engineers contribute. Engineering
students, most of whom are in the Engineering Global Leadership Program andcome in with extremely high grade-point
averages, also gain an appreciation for theMBAs,” Crossley adds.
It is not unusual for a TMI team project to save the sponsor $5 million or
more, she reports. First-place award
winners in 2005 were Isaac Jacob, MBA’06, and Stephanie Fidler and Kristen
Neubauer, both MSE ’06. The teamrecommended a facility consolidation
plan and product realignment strategy
for Boeing–Commercial Aviation Services
designed to produce annual savings exceeding $24 million in addition to a cashflow improvement of over $90 million
from a one-time inventory reduction.
Working with Pfizer Inc., another TMIteam demonstrated how to incorporate
traditional manufacturing disciplines in a
nontraditional production environment,
increasing the effective capacity of thepharmaceutical giant’s so-called “kilo” labfacilities by more than 20 percent without
significant capital expenditures.
Last summer two teams — one assigned
to Intel and another to Dell — worked
together on a supply chain project for thetwo firms. Another TMI team worked
with first-time sponsor John Deere on a
supply chain initiative to deliver seedingmachinery components to Russia, adaunting task because the assembled
equipment is too large to ship.
Faculty members like Kapuscinski findthat team projects provide effective illustrations to use in their own classes — real-lifesituations to which students can relate.
“TMI projects are sophisticated. The answers are not always obvious, so they also
become a good source of research questions,” adds Kapuscinski. A 1999 projectfor Dell inspired a study that focused onsavings through online pricing.
Bozer says serving as TMI project advisers helps faculty members build relationships with industry more quickly thanthey might on their own. These contacts
can lead to case studies and sometimes
consulting relationships. “The companies
want these projects to be successful. We
have deliverables and are able to apply
knowledge in creative ways,” says Bozer.

hink globally,” was the overriding
message for students attending“T
the Tauber Manufacturing Institute’s(TMI) first alumni panel discussion held
this spring on North Campus.
Robert Bruning, MBA ’97, set thetone by expanding the day’s theme, “The
Future of U.S. Manufacturing,” to address
the broader issue of global supply chain
trends. As principal with PTRM Management Consultants, Bruning has consulted
with 15 companies to assess and improve
supply chain performance.
“In the 1970s and 1980s, manufacturing was seen as an isolated function. Since
the 1990s, companies have moved toward
integrating the four elements of plan,source, make and deliver under a single
umbrella,” he explained.
Global trends have forced companies
to change from a transactional focus —efficiency — to a strategic focus. These
trends include increasing supply chain
complexity, the need for collaboration
with suppliers and customers, customer
fragmentation, and pressure to manufacture and price things more cheaply,
Bruning said.
“Increasingly, organizations view the
supply chain strategy as an executive-levelissue,” he added. “Supply chain strategy
impacts many levels of performance,
whether you are competing on innovation, cost, quality or speed-to-market.”
Dean Degazio, MBA/MEM, ’99, leadengineer with General Motors Corp.,
also noted ways in which the manufacturing industry is changing and evolving.
“Wage gaps (between American andoverseas workers) persist, but skill gaps
in production labor are closing rapidly.
Places like India are more than capable ofdoing design work. The General Motors
car being built in Canada has parts thatare made all over the world. No matter
where you work,” he told the approximately 60 students, “you will be dealing
with global issues.”
And Katherine Pearce, MSE ’03, abusiness operations analyst with Beaumont
Hospitals, illustrated that opportunities
for TMI graduates extend beyond traditional manufacturing companies.

ABOVE Left to right, Dean Degazio, Katherine
Pearce and Robert Bruning discuss global
supply chain trends at a TMI Student Advisory
Board-organized program attended by John
Adams, MSE ’06, center, and classmates in
the photograph below.

“As far as we know, Beaumont is thefirst hospital in southeast Michigan tohire industrial engineers in its information technology department,” she said.
The IEs were brought in to review thetransition to new software throughout
the hospital, with the goal of matching
departmental processes to the software,rather than necessitating costly software changes.
“Our goal is zero customization,”
Pearce said, calling the engineers “abridge between the technical resources
and the end users.”
All three speakers emphasized anabundance of opportunity for TMI
graduates. “Many companies we workwith are reactive. They contact us
when they encounter problems, such as
shrinking markets, loss of customers or
huge warehouses of unsold inventory,”
Bruning said. “Or perhaps they havejust merged with another company andneed to integrate their operations. We
are encouraging companies to become
more proactive as they look at supply
chain strategies.
“The supply chain is the way you getyour products from your suppliers toyour customers. It has a huge impact
on how customers perceive the overall
performance of your company,” Bruning
concluded.
Pat Materka

d i v i d e n d 23 f a l l 2 0 0 6

Alcoa’s Allison Allgaier Pursues
Passion: Operations and Strategy
ome mid-September, you’re likely tofind Allison Allgaier, MBA ’01, in
C
Ann Arbor. The draw for Allgaier is theannual Spotlight! competition in which
teams of University of Michigan businessand engineering students present theirsummer intern projects to panels of industry experts who serve as judges. Top
teams win thousands of dollars in prizes.
“Spotlight! is my favorite excuse tocome back. It is fascinating to see thehigh quality of the projects. I’m always
impressed,” says Allgaier, whose teamwon first place in 2000 for a project sponsored by the Copeland Corp. She and her
Tauber Manufacturing Institute (TMI)
teammates developed and implemented aleaner global supply chain for Copeland,
which manufactures air-conditioner
compressors.
Today, as the services manager foraerospace marketing for Alcoa Inc. in

LeadershipAdvantage
TMI’s structured emphasis on leadership through its LeadershipAdvantage
program is one of its strongest selling
points, according to students. The program, a series of modules required of all
first-year TMI students, consists of 16
workshops taught by faculty from bothschools and outside consultants.
During the first semester, TMI students
complete a personal assessment that addresses team leadership interaction andBettendorf, Iowa, Allgaier does “lots ofnumber crunching.” In her third positionat Alcoa, she analyzes aerospace customer
data to predict where the market is goingand develops integrated supply chains.
Shortly after graduation, Allgaier joined
Alcoa as a manufacturing specialist, working with departments to develop andimplement lean manufacturing initiatives.
In 2002, she was promoted to generalsupervisor. Her responsibilities included
overseeing daily operations and strategic
direction for five production centers. In
addition to developing new safety programs,
Allgaier led process-improvement efforts
that resulted in a 25 percent productivity
increase in two of the production centers.
“I really get satisfaction from making
things and solving problems,” comments
Allgaier, who worked in healthcare before
enrolling at Ross. It was while negotiating
managed-care contracts for Tenet Health-individual leadership characteristics.
Many of the modules stress communication and teamwork. In one module, “ThePit Crew Challenge,” randomly assigned
teams learn to change tires on a NASCAR
race car. Teams practice once and thencompete with other teams in timed trials.
Students learn to understand the elements of effective teamwork: goals, roles,
responsibilities, interpersonal relationships and team processes.
Vincent Giovannetti, MBA ’07, whoparticipated in the Pit Crew Challenge inJanuary, recalls, “Most teams saw marked
improvement from each run to the next,
mostly as a result of improved techniquesand strategies. The most poignant moment
came when the professional pit crewmen
reminded us that they could have served
as valuable resources for advice about the
optimal processes.” Jolted by the professional crew’s candor, Giovannetti noted,“It is unlikely that TMI students will failto identify and network with anyone
Left to right, TMI students Ryan Rindler, MSE’07, and Karan Seth, MSE ’08, learn the fastest
way to change race car tires from Track Time
Driving Schools’ Garett Kern in preparation for
the Pit Crew Challenge.

d i v i d e n d 24 f a l l 2 0 0 6

care Corp. in Dallas that Allgaier realized“operations are my passion.”
She recognized that she needed to build
her credibility to change careers successfully. “TMI was one of the reasons I chose
Ross. I was looking for a school strong inoperations and international business,”
recalls Allgaier, who speaks Cantoneseand Mandarin and served two years as a
Church of Jesus Christ of Latter-day Saints
missionary in Hong Kong.
TMI and other action-based learning
opportunities — including a Multidisciplinary Action Project in which her teamrecommended what maintenance work
DTE Energy should outsource — equipped
Allgaier to be a leader in operations andstrategy at Alcoa.

who can contribute toward a successful
summer project.”
In another session titled “Leading Up,
Down and Sideways,” students learn what
it takes to manage relationships withsubordinates, peers and bosses. Other
sessions focus on a range of topics, including how to conduct business and dineat the same time, value stream mappingand Six Sigma.

Academics
All TMI students enroll in an interdisciplinary course called “Topics in
Manufacturing.” Kapuscinski coordinates
the survey course, which covers everything from general business strategy,
operations strategy and lean manufacturing
to issues related to product design, environmental concerns and ethics. The threehour sessions are taught by faculty andindustry experts. For example, William
Lovejoy, the Raymond T. Perring Family
Professor of Business Administration andchair of operations and management
science, teaches “Integrated Operations.”
Students learn about environmental issues
from Steven J. Skerlos, assistant professor ofmechanical engineering, who designed acell phone that disintegrates a few years afterit is discarded, thus saving landfill space.
TMI also has helped develop electives
that integrate engineering and businessconcepts: “Integrated Product Development,” which was featured in the spring
Dividend, “Reconfigurable Agile Manufacturing,” “Manufacturing and Supply
Operations” and “Sustainable Manufacturing.” Making the TMI experience truly
cross-disciplinary, all business students
are required to take some courses throughthe College of Engineering and engineering students must take a certain numberof business courses.

Life after TMI
Many MBA students come to the Ross
School interested in finance, marketingor consulting, notes Kapuscinski. Those
who plan to go into consulting realizethat in many cases consulting is operations, information technology and process
improvement. TMI provides the broad
experience they need, he says.
It is natural, then, that TMI graduates
tend to gravitate toward larger firms
like Dell Inc., Alcoa Inc., Intel Corp.,
Ford Motor Co. and the Boeing Co.,
where they are tapped for “fast-track”
general-manager development programs,
management positions in operations or
manufacturing, and as strategy and planning analysts. TMI graduates also arehighly sought after by leading consulting
firms, including McKinsey & Co. and
A. T. Kearney. Of TMI’s spring 2006
graduates, almost 70 percent took jobs
with manufacturing firms, 23 percent
joined consulting firms and the remaining graduates opted for positions in theservice industries.
“These firms highly value the multidisciplinary education and team projectexperience obtained by TMI students.
Left to right, TMI students Elizabeth Holdsworth, MSE ’07, Rahul Deshmukh, MBA ’07,
and William Chen, MSE ’06, worked on amaterials management project at the Boeing
737 manufacturing facility.

Employers like the fact that TMI graduates can hit the ground running and make
immediate contributions to the business,”
Crossley says.
Thomas Beddow, 3M’s staff vice president of public affairs and government
markets and president of the TMI board,says, “3M really values TMI graduates.
You can hire an engineer, but an engineer
with business skills is even better.”For recruiters like James R. Kellso,
manager of supply network research forIntel Corp. and a member of the TMI
Industry Advisory Board, attracting TMI
grads to Intel is a strategic goal. He keeps
in touch with TMI students throughout
their time at Michigan — both those whointern at Intel and others he meets at TMI
events. As a result, reports an exuberant
Kellso, “We had a very good recruiting
year — we hired five TMI grads!”
To learn more about TMI, visit
www.tmi.umich.edu.
Mary Jo FrankTMI Alum Guides Life Fitness
Manufacturing Strategy
s senior manager of manufacturing
strategy for the exercise equipment
Afirm Life Fitness (a Brunswick company),
Mario Noble, MBA ’04, strives for lean.
“My role is to infuse best practices
from industry, such as lean manufacturing and regional manufacturing, to helptransform Life Fitness into a world-classmanufacturing company,” says Noble,
who lives and works in Chicago. “Mostof my projects focus on the future, whether
it is building a lean culture or using
discounted cash flow to determine theoptimal manufacturing footprint forthe company.”
It’s an ideal job for Noble, a fitness buff
and fan of Life Fitness’ durable, ergonomically friendly machines. As a student,
he worked out regularly at the U-M’s
Central Campus Recreation Building.
Life Fitness also owns Hammer Strength,
the maker of heavy-duty training equipment used by Wolverine varsity athletes
and pro teams.
Noble, who earned a bachelor’s degree
in materials science and mechanicalengineering from the University ofCalifornia-Berkeley, was attracted to
the Ross School by the Tauber Manufacturing Institute (TMI) and the school’s
team-oriented approach to learning.
“Ross has a reputation of fostering anenvironment that encourages people towork together and learn from one another.
People who attend Michigan tend to beteam oriented and willing to share information. A good team can accomplish
more in the long run than a high-powered individual can,” says Noble. His
Ross team experiences included a
14-week TMI lean manufacturing andd i v i d e n d 25 f a l l 2 0 0 6

Mario Noble pumps iron on a Hammer
Strength Iso-lateral bench press.

change management project at General
Cable in Marion, Indiana, and a sevenweek Multidisciplinary Action Projectworking on a market entry strategy forArdesta LLC of Ann Arbor.
“The TMI intern experience, including faculty support from business andengineering , helped me leverage theexperience of experts to learn and accomplish a lot in a short amount of time.”
TMI’s LeadershipAdvantage Program
also gives students a leg up once on thejob, says Noble. For him, the mostvaluable session was a day-long classtaught by Michael Rother, author of
Learning to See, about lean manufacturing. “Rother taught me that implementing lean manufacturing involves
a culture change as well as a processchange. The lessons I learned about theimportance of culture made the difference between success and failure in the
projects I have worked on since.”What We Talk About
When We Talk AboutI

n 1972, President Richard Nixon
became the first U.S. president tovisit the People’s Republic of China.
When his historic visit had ended,
Nixon had cracked the bamboo
curtain, which had closed communist China to the West for decades.
The immediate impact was an easingof U.S.-China tensions. The long-term
impacts are being felt now — an open
door for American firms hoping to dobusiness in the world’s most populous
market, and a massive and growing U.S.
trade deficit with China. There is also considerable political fallout for U.S. elected
officials who must contend with angry
workers who feel they can’t compete withcheap Chinese labor.
Welcome to the era of globalization.
Some people condemn globalization
as one of the great evils of our age. Some
praise globalization as a ticket to economic
prosperity. Who’s right?
One reality is that American workers arelosing their jobs to China, Mexico and a
lot of other places. Another reality is that
U.S. unemployment is below 5 percent,more than two percentage points below
the average since 1960. Yet another reality
is that more and more of the world’s six

billion people live in countries now open
to American products and services.
“There are a lot more consumers, whether
you are Microsoft selling software or the
University of Michigan offering MBA
degrees,” says Robert Kennedy, executive
director of the William Davidson Institute and professor of business administration at the Ross School. “There are also a
lot more competitors.”
If you roll back the clock to the 1960s,
globalization as we now know it did notexist. “Back then,” Kennedy explains, “whatwe think of as the global economy was
really the U.S., Western Europe, Japanand a few tiny outposts such as Singapore.
Most other countries were engaging inminimal global commerce. They were
trying to do it on their own. They werethe equivalent of 19th-century America.
They grew their own food. They madetheir own candles.
“Since then,” Kennedy relates, “thepercentage of people living in countries
open to the global economy has gonefrom around 22 percent in 1980 to morethan 75 percent today.”To the critics, this has been a disaster.
They point to the loss of millions ofAmerican industrial jobs and shutteredd i v i d e n d 26 f a l l 2 0 0 6“ONCE A CONSUMER HAS
GOTTEN USED TO A
BREAKFAST OF MUESLI FROMSWITZERLAND,APPLESFROMNEW ZEALAND AND FRENCHCHEESE, IT WOULD BE VERYDIFFICULT TO GO BACK TOTHE OLD DAYS. AND THATWAS JUST BREAKFAST.”
factories. The reality, again, is more complex. “From the macroeconomic view,globalization is almost entirely positive,”
Kennedy says. “We get cheaper goods, we
get goods faster and it keeps inflation down.
“The negative from globalization is thatit imposes fairly high costs on some individuals, the people who are displaced. In
the aggregate, the gains are much better
than the losses. In globalization everyone
gains a little bit, but a few people lose a lot.”“INGLOBALIZATIONEVERYONEGAINSALITTLE
BIT, BUT A FEW PEOPLE LOSE A LOT.”Free Trade Fosters
Interdependence

Trade Deficits:
Behind the Numbers

More to the point, globalization can’t
be undone. Free trade has created interlocking, interdependent economies inwhich countries increasingly specialize
in what they do best, and leave the rest
to someone else. In this economic regime,
the U.S. produces some of the world’s best
airliners, but makes less and less of theclothes it wears. Were trade to end, theU.S. would be ill-equipped to try to clothe
its people. Developing countries would
be unable to build their own aircraft.
Moreover, many products are multinational composites, made up of components from two or more countries. Amongthem is Boeing’s new 787 airliner. Its components come from the U.S., the United
Kingdom, Italy, Australia and Japan. Close
down trade, and the 787 assembly line
would grind to a halt.
Since nations are now dependent on
one another, there are powerful incentives
not to capsize the boat. “India cannot bea closed economy as it was for 45 years
following its independence from the British,” says Bharat Patel, MBA ’69, retired
chairman and managing director ofProcter & Gamble India, and currently its
non-executive chairman and consultant.
“Only after its slow but gradual movetoward a market economy and globalization has the Indian economy started
growing at over 7 percent a year. Before
that, it had been growing at just 3 to 4
percent a year.”
Then there is the matter of consumer
preference. “Once a consumer has gotten
used to a breakfast of muesli from Switzerland, apples from New Zealand andFrench cheese, it would be very difficult
to go back to the old days,” says Krishna
Ramanathan, MBA ’93, head and director of Sara Lee Apparel in India. “Andthat was just breakfast.”

Still, there are statistics that make many
voters wonder if free trade is a good idea.
One of them is the U.S. trade deficit with
China, which hit nearly $202 billion in2005 and is likely to grow. Once again,
the absolute numbers are misleading.
China, it turns out, serves as a center for
final assembly for products of component
parts made elsewhere in Asia.
“The reality is that China imports
high-value-added parts and components
from Japan, South Korea, Taiwan, Hong
Kong and Singapore, then adds value infinal assembly and shipping,” says Kenneth
G. Lieberthal, a specialist on China andthe William Davidson Professor of International Business.
So it’s more useful to look at all of Asia
to see whether the U.S. trade shortfallwith the region is growing faster than theoverall trade deficit. “The Asian portionof America’s global deficit is actuallysmaller now than it was 20 years ago,”says Lieberthal. “But within Asia’s portion

Robert Kennedyof America’s global trade deficit, the Chinapart has soared.”
Critics also claim that America’s manufacturing might is withering under Chinesecompetition. The reality is that America islosing jobs to China. But it’s also true that
America’s manufacturing output has grown,
not shrunk, and that the United States continues to far outpace
China in total output.
“What you find isthat the U.S. has increased its share of
total global manufacturing in the last 15
years,” Lieberthal relates. “China also has
increased its share.
They’ve gone from
2 to 6 percent of global
manufacturing output.
But we’ve gone from 22
Kenneth G. Lieberthal
to 24 percent. We produce the high-technology, high-value-added products. They
produce the low-technology products. And

U.S.- China Trade at a Glance
Chart shows the rapid growth of Chinese exports to the U.S. versus the slow growthof U.S. exports to China.
250
U.S. Imports from China.

U.S. Exports to China
Billions of dollars

200

150

100

50

0
’96

’97

’98

Source: U.S. Census

d i v i d e n d 27 f a l l 2 0 0 6

’99

’00

’01

’02

’03

’04

’05

Benchmarksin theHistory of
Globalization

10TH CENTURY
Chinese develop gunpowder for use in
fireworks.

Creating New
Jobs and Wealth
The hope, of course, is that globalization also will create jobs and wealth, andlift the fortunes of nations rich and poor.
In the U.S., one obvious place to look forjob creation is the West Coast, where
ports are handling the rising tide of imports from the East. Indeed, they havebeen on a hiring binge, adding thousandsof dock workers tounload cargo. There isalso a huge national
infrastructure of office
workers, warehouse
workers, truckers andso on who owe theirjobs to trade. And it’soften forgotten that
trade also consists ofservices as well as factory goods. Foreigners
buy Disney movies. They
come to America for
medical treatment. They
Chris Cooper
send their children to

Alexander Graham Bell patents thetelephone.

1891

Ellis Island opens to process immigrants
arriving in the U.S.

1896

First modern Olympic games held in Athens.

1901

Radio pioneer Guglielmo Marconi sends
first trans-Atlantic wireless signal.

1903

The Wright Brothers complete the firstpowered flight.

1913

Henry Ford introduces the moving
assembly line for automobile production.

1914

Panama Canal completed, greatly
shortening east-west shipping routes.

13TH CENTURY
Marco Polo travels to China.

15TH CENTURY
Johannes Gutenberg’s invention of movabletype makes printing easier and cheaper,
spurring an early information age.

1492

our manufacturing output is four times
China’s manufacturing output. So has the
U.S. lost its manufacturing competitiveness? Absolutely not.”How has the U.S. become an evenbigger manufacturing dynamo while
shedding millions of jobs? “Our productivity has gone up dramatically in the past
15 years,” Lieberthal says. “Generally,
productivity improvements are good foran economy. But productivity improvements also mean you need to pay attention to a reasonable exit for those wholose their jobs because of it. So we need tocontinue to focus on our manufacturing
excellence and at the same time take careof workers who lose their jobs.”

1876

Christopher Columbus lands in the New
World.

1775

The American Revolution begins.

1844

First intercity telegraph line opens.

schools such as the University of Michigan.
Globalization also creates jobs for
Americans outside the U.S. as American
multinational corporations set up outposts. This represents a quantum shift for
many companies, which had minimal, if
any, foreign presence just a few decadesago. “When I joined PricewaterhouseCoopers in the early 1980s, Americancompanies that behaved as global companies were few and far between,” says Chris
Cooper, BBA ’88, MAcc ’88, Beijingbased partner in charge of mergers andacquisition for the company’s China desk.
“Our firm started going more global in
the 1990s as our clients started to become
more global.”
For firms like PricewaterhouseCoopers,
a global presence is not optional. “The
only way to enter new markets or to protect existing markets is to be present inforeign locales. You have to be present
to understand how business is done, howinvestments are done, how marketing andbranding is done and how distribution
to markets is done.
“As the U.S. becomes more of a servicebased economy, globalization should bea good thing for our economy. And thefinancial sector has a huge role to playin the globalization process. So these are
exciting times,” says Cooper.

Globalization Produces
Winners, Losers
The huge shifts that globalization has
wrought haven’t taken place without controversy. There have been anti-globalization
protests in the U.S., South America andEurope. A skeptical Congress only narrowly passed the latest U.S. free-tradelegislation, the Central America Free
Trade Agreement. And the latest roundof global trade talks in Doha, Qatar, basi-

d i v i d e n d 28 f a l l 2 0 0 6

cally collapsed. The problem: Globalization
inevitably produces losers as well as winners, and the losers are beginning to exert
political muscle in their home countries.
Aside from trade friction, economies are
at risk from any number of disruptions,
including natural disasters and wars. A global pandemic would devastate global trade
because many nations would simply shutborders in an attempt to keep disease out.
If globalization were to somehow shift
into reverse, it could have stiff consequences, turning the earlier winners into
losers and possibly igniting inflation.
“Economists would tell you that prices
would go up,” says Cooper. “Consumers
would immediately feel the pinch if places
like Wal-Mart and Target were not able
to source products from foreign markets.
This would create a negative wealth effectimmediately. It also would be a very inefficient use of American capital to divest
overseas and reinvest in the U.S.”

Risks and Rewards for
Firms with a Global View
As a practical matter, anything that
disrupts trade cuts both ways. U.S. exports exceeded $818 billion in 2004, andthe U.S. is in fact a larger exporter to theworld than China or Japan. The U.S.
is second only to Germany, which had
exports of more than $912 billion in 2004.
Huge numbers of American companies
would suffer if the trade spigot were toclose. One of them is AFB International,
which supplies pet food flavorings madefrom chicken livers to pet food and treat
makers around the world.
One market is China, says Jacquelyn
Levin, MBA ’87, the company’s president
and CEO. Chinese companies import AFB’s
American-made flavorings to make its pet
treats attractive to animals. Though the

1927
1939
1945

Aviator Charles Lindbergh lands in Paris tocomplete first non-stop trans-Atlantic flight.
Germany invades Poland to start WorldWar II.

homes. Rock and roll music changes
American youth culture and begins to
spread around the world. Also, cheap,
efficient container shipping method
introduced, spurring trade.
The U.S. creates the Defense Advanced
Research Projects Agency, or DARPA,
which paves the groundwork for theInternet.

MARY BUTKUS

Chinese raise huge numbers of chickens,
they eat the chickens — lock, stock andliver. And so they generally don’t makethe flavorings themselves. That leaves thedoor open to AFB.
At the moment, China is a small market for AFB because it makes very little
pet food for domestic use. Many Chinese
don’t have pets. Those who do tend to feedthem table scraps. But China is changing.
“Over the long haul, it will be a very large
market for us,” says Levin. “The real benefit will be when China views animals as

Jacquelyn Levinmembers of the home. Then they’ll go to
low-end pet food and eventually to highend pet foods. That’s 15 to 20 years down
the road.”
And China is just one piece of AFB’s
profitable foreign market. “Our company
likes global business because it tends tobe more profitable,” Levin says. A second
advantage: “As we’re exposed to othereconomies, we learn about new ingredients that might go into our flavorings,

2000

The first crew — one American, two
Russians — arrives on the International
Space Station.

Computer’s innovative low-cost PCs,
begin to take off.

1972

President Nixon travels to China,
opening a crack in the bamboo curtain.

2001

Terrorists attack the World Trade Center and
the Pentagon, spurring the War on Terror.

1973

Oil embargo and fast-rising petroleum
prices trigger economic shockwaves andillustrate the world’s dependence on oil.

2006

Bird flu spreads rapidly through Asia,
Africa, the Middle East and Europe.

2006

1989

Berlin Wall demolished as the Cold War
comes to an end.

Immigrants stay off the job on May Day
to demonstrate their importance to the
U.S. economy.

United Nations founded.

1950s Television becomes a fixture in millions of

1958

1970s Personal computer sales, led by Apple

1990s The Internet comes of age.
1994

The North American Free Trade Agreement between the U.S., Canada, andMexico takes effect.

which gives us a competitive advantage.”
Like many companies, AFB is at themercy of an import no one wants, thebird flu. “We only get chicken livers if
poultry is slaughtered,” says Levin. “Ifpeople get nervous about getting avian
influenza and won’t eat chickens, thenthere won’t be enough livers for us. If thatwere to happen, we would have to use
other proteins for flavoring, such as fish.
The problem is that dogs and cats likechicken, and other protein sources often
aren’t as cheap.”
To operate in this world
requires fine-tuned business skills. It also requires
the ability to get along inother cultures and, sometimes, the ability to negotiate in environmentsthat may be hostile, if not
outright hazardous.
“It takes a certain personality to do this job,”says Laurence Saul, MBA’03, vice president of
Domino’s Pizza International with a territorythat includes Europe, theMiddle East and Africa.
“There have been guys
from the U.S. who can’tfunction abroad where it’smore fluid, faster and more flexible. The
business model overseas won’t be 100
percent different from the U.S.; it will be
15 percent different. But the differences
will be dramatic.”
One immediate difference is the multitude of cultures, sometimes within the same
country. “Switzerland is still both French
and German,” he notes. “You’re in thesame country, but you have two distinctly
different consumers with two languages.”d i v i d e n d 29 f a l l 2 0 0 6

Another difference — some markets
are periodically wracked by violence.
“Bombings happen in Israel,” says Saul.
“That’s a market I go to. Domino’s has
more than 20 outlets there.”
Religion is sometimes a factor in theworkplace. “We just opened a store in the
Republic of Ireland and hada party to mark the opening,”
Saul relates. “The Catholics
sat at one table, the Protestants at another, and the manager, a native of India, sat in
the middle between them.”
This is the stuff of everyday life, along with a lot of
jet travel and a haphazard
sleep schedule. “When you’re Laurence Saulon a plane for 22 hours, it’s
hard to perform,” says Saul, who is basedin Amsterdam. “And my day does not end
at six o’clock. My day ends when America
turns off the lights. I’m still getting calls
into the middle of the night. That’s okay.
That’s my job.”
Such is life for the foreign executive; andas time passes, more and more Americans
can expect to find themselves in this role.
That’s where their companies’ futures lie.
“Around the world, Domino’s has 8,000
stores,” Saul notes. “About 3,500 of them
are in international markets. It’s wheremost of the growth is coming from.
“The world is global now. It’s just thatsome organizations don’t know that yet.
There are still some trade barriers. But
those are going to be pulled down. Everything has changed. It’s really changed.”Doug Mcinnis

ASHESH SHAH

The View from MumbaiW

hen we read about globalization,it’s usually presented from an
American perspective.
But there are many others, dependingon where you live. Here are two views ofglobalization from Ross School alumni
Bharat Patel and Krishna Ramanathan,both of whom have worked for large
American multinational corporations.
They are based in Mumbai, India’s financial
and film-making center and home to
14 million people.
Bharat Patel, MBA ’69, retired chairman and managing director of Procter& Gamble India, now its non-executive
chairman and consultant, talks of the needfor globalization and the consequences ofreversing course.
“If you were to slow down globalization,
it would slow economic development,
particularly in emerging economies like
India. India’s most profitable growth sectors include IT services, pharmaceuticals
and engineering goods. Most of the growthmarkets in those sectors are outside India.
“I believe that U.S. consumers are dependent on low-cost goods from China andlow-cost technical services from India. And

the U.S. dollar is supported by funds fromJapan, China, Russia, India and others,
which are invested in U.S. Treasury Bonds.
“Globalization has to continue and movefaster because it is the only way economic
and social progress will happen in theworld. But there must be much more givefrom the ‘have’ nations so that the ‘havenot’ nations benefit quickly. For example,
protection of the agriculture sector by thedeveloped world is hurting farmers of thedeveloping world. In India, nearly twothirds of the population depends on agriculture, and the worst off among them are
non-land-owning agricultural laborers
whose daily income is less than $2.”
Krishna Ramanathan, MBA ’93, headand director of Sara Lee Apparel in India,
describes India’s phenomenal growth.
“Many developing countries are growing
rapidly and present attractive markets.
For example, India currently has a GDP
growth rate of 8 percent and China has
been growing at 9 percent a year for the
past 15 years. This translates into increasingly affluent consumers who are also
brand-aware and brand-friendly thanks
to global media.

d i v i d e n d 30 f a l l 2 0 0 6

Bharat Patel, left, andKrishna Ramanathan“India is at a juxtaposition where it ishauling itself up by the bootstraps into
the 21st century. As a result, it’s possible
to see fascinating contrasts. For example,
India has one of the best cell phone networks in the world, and it is not uncommon
to see a farmer riding a bullock-cart while
using the latest cell phone.
“Mumbai, where we live, appears tohave become one big construction sitewith numerous high-rises coming up andmost roads being dug up for re-laying.
This of course results in terrible traffic
jams. One of the truisms about Mumbai
is that you measure distance not in kilometers or miles but in the time it takes toget from point A to point B.
“Malls, restaurants and multiplexes aremushrooming all over the country. In my
opinion, this is one of the most exciting
and dynamic places to live at this time.
After all, how often does one get to see anentire nation wake up and try to makeitself over almost overnight?”
Doug Mcinnis

A Tale of
Two Economies
A STATISTICAL SNAPSHOThe United States has the world’s
biggest economy and is a technologiT
cal powerhouse. India is still heavily
grounded in agriculture, which employs
roughly 60 of every 100 workers. But

India

India is fast becoming a technology
power and has an economic growth rate
more than twice that of the United States.
Below are a few points of comparison.

The U.S.

Area: 3,287,590 square kilometers(slightly more than one-third thesize of the U.S.)

Area: 9,631,420 square kilometers

Population: nearly 1.1 billion(more than three times the populationof the U.S.)

Economic growth rate:
3.5 percent (2005)

Economic growth rate:
7.7 percent (2005)
Industrial production growth rate:
8.2 percent
Labor force: 496 million (60 percent
are employed in agriculture)
Population below poverty line:
25 percent (2002)
Imports: India’s imports include crudeoil, machinery, gems, fertilizer andchemicals.
Exports: India’s exports include
textiles, gems and jewelry, engineering
goods and chemicals.

Population: 298 million

Industrial production growth rate:
3.2 percent
Labor force: 149 million (less than
1 percent are employed in agriculture,
23 percent are employed in manufacturing, extraction industries, transportation and crafts)
Population below poverty line:
12 percent (2004)
Imports: U.S. imports include agricultural products, crude oil, industrial
supplies, computers, telecommunications equipment, automobiles, clothing,
medicine, furniture and toys.
Exports: U.S. exports include soybeans,
fruit, corn, chemicals, transistors,
aircraft, computers, telecommunications equipment, automobiles andmedicines.

SOURCE: CENTRAL INTELLIGENCE AGENCY WORLD FACT BOOK

d i v i d e n d 31 f a l l 2 0 0 6

A Truly
International
Student Body
This chart profiles the Ross School
student body by country of origin
in Fall 2005.
Argentina
Australia
Bangladesh
Belgium
Bosnia and Herzegovina
BrazilBulgaria
CanadaChile
China, People’s Republic ofColombia
Denmark
Egypt
EnglandFranceGermany
GreeceHong Kong
Hungary
India
Indonesia
IsraelItaly
JamaicaJapan
JordanKorea (South), Republic of
Lebanon
Malaysia
MexicoMongolia
Netherlands
Nigeria
Pakistan
Peru
Philippines
PolandRepublic of Armenia
Republic of Belarus
Republic of Croatia
Republic of Georgia
Republic of Latvia
Romania
Russian Federation
Singapore
South Africa
Spain
Sudan
Switzerland
Taiwan, Republic of China
ThailandTurkeyUkraineUnited Kingdom
United States
Yugoslavia(blank)Grand Total

4
1
3
1
3
21
3
47
1
183
1
2
1
4
9
4
2
21
1
319
7
6
7
3
47
1
87
1
4
10
1
1
2
9
15
1
5
1
1
2
1
1
4
13
26
1
4
1
3
21
7
13
2
8
1841
1
1
2790

C LEE/PHOTOLINK

16 schools had sent a large group ofundergraduates to complete the course.
Professor George J. Siedel, who serveson The Washington Campus board of
directors and teaches the class there on
federal courts, felt that the course could
benefit undergraduates as much as MBA
students. “It’s just as important for undergrads to understand the public policy pro-incredible would be a complete understatement,” he said. “We all came awaywith a much better understanding of
Washington as a whole, but with a thousand new questions we never would havethought of if we hadn’t taken the course.”
Operated by a consortium of 16 business schools, including the Ross Schoolof Business, The Washington Campus runs
intensive courses that feature speakerlineups of past and present government
officials and other professionals who havespent their careers in D.C. The goal is tofoster understanding of the federal government’s decision-making process andits impact on business, and to encouragebusiness leaders to participate in thatprocess. The courses have been offered
to MBA students, with whom they’ve
proven hugely popular, since 1978. But
this spring was the first time any of the

LEFT Jodie Fennelly, left, and Angela Bell take abreak on the steps of the Supreme Court Building.
MIDDLE Professor George Siedel introduces David
Carson at The Washington Campus’ opening
session.
RIGHT Ross School BBA students sing “Happy
Birthday” to L. William Seidman, MBA ’49,
founder of The Washington Campus. Washington Campus staff member Courtney Madden
joins in the celebration.
EILEEN COLTONW

hen Adam Percy, BBA ’07,
heard about an opportunity tospend a week in Washington
exploring the relationship between government and business, he knew he had tojump. After all, it’s not often that undergraduates get to see how abstract concepts
they’ve studied in class — fiscal policy,
regulation, banking — play out in the daily
life of the nation’s capital. And for Percy,
whose interest in public policy almost
edged out business as a major, the subject
matter was compelling. So in May, freshfrom finals, Percy joined four dozen other
BBA students who boarded a bus early
one Saturday morning for the nine-hour
drive from Ann Arbor to The Washington
Campus in D.C.
After a jam-packed week of classes,
lectures and meetings, Percy returned withhis head bursting. “To say it was absolutely

d i v i d e n d 32 f a l l 2 0 0 6

EILEEN COLTON

cess, especially undergrads of the caliber wehave at the University of Michigan, who
are very bright and sophisticated,” said
Siedel, the Williamson Family Professorof Business Administration and professorof business law. “We expect these students
to assume leadership roles in business.”
The idea caught the interest of alumnus
David Carson, BBA ’55, who created the
Carson Scholars program, guaranteeing
five years of funding for undergraduates
to attend The Washington Campus.

EILEEN COLTONLEFT Jeff Roth and Brandis Johnson applaud
James A. Thurber, director of the Center for
Congressional and Presidential Studies at The
American University, following his lecture about
decision making in Washington.
RIGHT Krister Holladay, chief of staff for Senator
Saxby Chambliss of Georgia, talks to Ross
students about the role of congressional staff.

EILEEN COLTONIn Carson’s view, the earlier businessstudents are exposed to the workings ofWashington, the better. “The ability to be
involved in public policy defines our democratic society,” said Carson, former president
and CEO of People’s Bank in Bridgeport,
Connecticut. “Businesspeople should beaware that they ought to take a leadershiprole in shaping the country’s policies.”
From his long career in financial services, insurance, banking and mutual funds,
Carson knows firsthand how important it
is for business leaders to participate inpublic decision making — not only onlaws and regulations that affect their business interests, but also on issues such as
education and the environment.
Every decade since the sixties, Carson
has testified in Washington, speaking tocongressional committees, regulatory
agencies and elected officials on topics as

d i v i d e n d 33 f a l l 2 0 0 6

ABOVE Tim Hodes thanks David Carson for his
support of the Carson Scholars program. Carson
talked with students about the public policy
process.

diverse as automobile insurance rates andviolence in cities. Because of his practicalexperience, his opinions carry weight.
“As opposed to being the lawyer hired
to talk about it, I actually was doing it,”
Carson said. “You don’t have to be a paid
government person. As a matter of fact,
you’re more effective if you’re not!” In
recent years his main civic cause has
been funding preschool education inConnecticut. He’s also chair of the Hartford Parking Authority, and his wife Sara
is a justice of the peace.
Carson Scholars are selected throughan application process. To receive thethree credits granted for the course, inEILEEN COLTON

desire to better understand the legislative
process and not just the end products thatshow up in the news. He was particularlyinterested in trade between the United States
and China, his native country. A class onthat topic was taught by Pat Mulloy, a member of the U.S.-China Economic and Security
Review Commission and former assistantsecretary for market access and compliance with the Department of Commerce.
Wang appreciated the wide-ranging discussion, where opinions ranged from calls
for protectionist policies, to worries about
China’s increasing power in its trade relationship with the U.S., to shrugging acceptance of globalization as a fact of life. “It’schanging nature of Washington, he said,
every class of Carson Scholars is sure tohave a different experience.
However, that experience will certainly
involve assumptions being challenged.
Discussions on lobbying reform naturally
touched on the Jack Abramoff scandal,
but they also presented a nuanced view oflobbying, Percy said. “I never would havethought of lobbying being a good thing,”
he said. But he thought again when one
speaker dropped a registry of lobbyists
bigger than a phone book in front of thestudents and said that everyone is represented by a lobbyist, whether they know
it or not. Some speakers endorsed lobbying reform while others expressed doubtthat it would work: If a law passed that
put a $20 limit on meals lobbyists buy formembers of Congress, savvy restaurant
owners around Capitol Hill would just fill
their menus with $19.99 entrees.
“The profession of lobbying is stereotyped by people who don’t understand it,
and I was definitely one of those people,”
Percy said.
Percy’s classmate Zack Wang, BBA ’07,
arrived at The Washington Campus with ad i v i d e n d 34 f a l l 2 0 0 6

LEFT Michigan Senator Carl Levin talks withstudents about the economy, automobile
industry and alternative fuels.
MIDDLE Connecticut Congressman Christopher
Shays discusses the environment, Iraq, thefederal budget deficit, stem cell research andseparation of church and state.
RIGHT Students, left to right, Aerial Olaiz, Brian
Chrzanowski, Kyle Zink, Dan Brachfeld andJoanna Shelden attended sessions 8 a.m. to 6
p.m. each day.
EILEEN COLTON

EILEEN COLTON

addition to the course exam they must
write a 25-page paper during the summer
following their week in Washington. The
paper, Siedel said, allows more in-depth
study of one of the topics covered during
the week, and there’s no shortage of those.
Each day students are in class from 8 a.m.
to 6 p.m., with lectures every hour onsuch expansive subjects as the economic
impact of the war on terrorism, the futureof the U.S. economy, Social Security andthe Federal Reserve System.
The speakers represented all politicaland professional stripes. For example,
a class on presidential decision making
was taught by Jack Howard, former deputy assistant for legislative affairs in the
George W. Bush White House, while laterthat day Marc C. Ginsberg, former ambassador to Morocco and senior foreign
policy coordinator for Al Gore’s 2000
presidential campaign, traced the historyof radical Islamic thought and weighed
the diplomatic and trade policy impactof the war on terrorism.
Percy was impressed with the extent
to which speakers drew on current events
to illustrate their topics. Given the ever-Jones Center
Enhances
BBA Core
Experience
hen Thomas C. Jones, BBA ’68,
MBA ’71, gave $10 million inW2005 to the Ross School — the largest

very important to let people understandthe whole story, to present all the facts,”
said Wang. The week in Washington also
left him with a new perspective on lobbying and introduced him to redistricting,which he’d never learned about before but
immediately understood as fundamentally important to the legislative process.
Halley Hilboldt, BBA ’07, applied for
The Washington Campus course believingthat a stint in the nation’s capital would
line up well with her interests in international business and ethics, as well as her
career plans to go to law school and work as
an attorney in the entertainment business.
“It was amazing,” Hilboldt said of thecourse. “The amount I learned there wasunmatchable. I feel so much more informed
about our government, and informed in a

non-biased way. The whole week in general
was unbelievable.” A major lesson she took
away, she said, is that there is a lot of inefficiency in government — for example, committees are formed to investigate certain
topics but then never meet. “Information
like that has made me more critical andaware of things the public needs to know.”
She also gained insight on what a careerin public service might entail, and althoughthat hasn’t changed her plans to pursue
legal work in the private sector, she said afriend who attended the course is now moreinterested in public policy as a career path.
“The course allows each student to realize
what in fact they really are interested in,”
Hilboldt said.
With a new session coming at them every
hour, as well as visits to different federal
government buildings and the chance to
ask questions of people who know Washington from the inside, the students realized
they were getting an education no classroom could ever offer. “You just knew,”
Percy concluded, “that these are the kindsof experiences that will stick with you andshape you.”
Mary Jean Babicd i v i d e n d 35 f a l l 2 0 0 6

STEVE KUZMALEFT Adam Percy, Grace Pan, Christina
Ratusznik and Jeff Roth on the front steps of
the Supreme Court.
MIDDLE George Siedel briefs students before
a presentation on the Hill.
RIGHT Grace Pan, left, and Christina Ratusznik
relax at a restaurant near the House side of the
Hill during a break between sessions.

donation ever to an undergraduate
business program — his goal was totransform undergraduate businesseducation.
The Ross School used the gift toestablish the Thomas C. Jones Center for
BBA Education “to enhance the coreexperience via a set of activities thatallow for the development of students
in extraordinary ways”— activities above

Tom Jones served as the Ross School’s first
BBA Program director and first executive-inresidence in 2003–2004.

and beyond the school’s existing responsibility to deliver to BBA students aquality core educational experience.
Scott A. Moore, director of the
BBA Program, Arthur F. Thurnau
Professor and associate professor of
business information technology,
says, “Tom certainly believes in theimportance of an education that prepares students for their work life. The
focus on student interaction withleaders in the nation’s capital and its
topical emphasis on how government
affects the business world make the
Carson Scholars program a great
match for the kind of initiative theJones Center supports.”
The Jones Center covered thetransportation and housing costs for
the Carson Scholars program.

From Spin Cycle
to Baby Formula
MAP TAKES ROSS MBA STUDENTS
TO ROMANIA AND RWANDA

W

hirlpool, the largest appliancemanufacturer in the world,holds a special place in Ross
School history. In 1995, Whirlpool sponsored the school’s first international Multidisciplinary Action Project (MAP) team.
Eleven years and 18 projects later,
Whirlpool remains a stalwart supporterof MAP, a required seven-week courseand cornerstone of the school’s actionbased curriculum. Drawing on theirbusiness and leadership skills, teams offirst-year MBA students work full timewith a corporate or nonprofit sponsor oncomplex business problems. The assignment culminates in recommendations
presented in written and oral reports tothe team’s sponsor.
International MAP has grown steadily
since Whirlpool sponsored its first overseas MAP team. Of the 87 MAP teams
the Ross School fielded this spring, 44
worked on international projects. Thirtyeight percent of those projects were sponsored by U.S.-based firms, including
American Express, Borders Group, Cemtura Corp., Intel, SC Johnson, Wal-Mart
and Whirlpool.
“Our students want to gain international experience, and recruiters increasingly seek graduates comfortable working
in the global market,” says Dean Robert J.
Dolan. “International MAP is a great way
for our students to apply what they learn
at the Ross School to actual business problems. Plus, they benefit from living andworking in a different culture.” Almost 60
percent of students from the United States
opt for international MAP assignments.
Not surprisingly, many Ross School stu-

dents from outside the United States, eager
to learn firsthand about corporate America,
choose U.S.-based MAP projects.
“Other schools offer internships and work
experiences,” notes Andrew Garland, MBA’07, who, along with teammates, researched
the Romanian appliance market and developed a growth strategy for Whirlpool
in Romania. “But to be integrated into a
company like Whirlpool for seven weeks
is a great concept. Unlike a consulting
assignment, it is a learning process with atrue deliverable,” Garland adds.
A MAP project sponsored by the Clinton Foundation’s HIV/AIDS Initiative
provided valuable international and nonprofit experience for Leena Ray, BBA ’02,
MBA ’07, who worked at American Express prior to returning to Michigan toearn a dual degree in business and education. Ray is interested in public education
reform and plans to work in a larger urban school district after graduation. She
and her MAP teammates traveled to
Rwanda to assess that country’s capabilities to produce infant formula for children whose mothers are HIV-positive.
Other MAP teams worked on businesssolutions for nonprofits such as Make-AWish Foundation, Habitat for Humanity,
Rainforest Expeditions and Women for
Women International.
Among MAP’s collateral benefits are
the stories students bring back and sharewith prospective employers at interviews.
Read on to learn about recent MAP teamwork in Romania and Rwanda.

d i v i d e n d 36 f a l l 2 0 0 6

ROMANIA:

Making Whirlpool #1
hirlpool, already the top-sellingbrand among washing machines inW
Romania, has a bigger goal: Double its
sales volume in household appliances andmove the manufacturer to the top spot inmarket share in Romania by 2008.
“Basically we asked the students forrecommendations for our growth strategy,” explains Mioara Bolozan, Whirlpool
marketing manager for household appliances in Romania. “Our first demand wasthat the students fully understand ourmarket. It was important for us and forthem to see with fresh eyes. We know themarket but sometimes you need a changeof perspective on consumers’ reasons forbuying and on the competition.”
Whirlpool also is strong in built-ins
and dishwashers, two growing categories
in a market where consumers care more
about value and product features thanbrand. To learn about brand images, sales
incentives and perceptions of after-saleservice for Whirlpool and its major competitors, team members Andrew Garland, Todd LeBlanc, Siddarth Mehta
and Rodd Santo, all MBA ’07, talked to
132 consumers, 60 sales personnel, six
repair service providers and five managers of national retail chains. Their goal
was to determine which product segment
could yield the most in sales growth andadd value across the Whirlpool brand.
“In all, we conducted more than 4,100
minutes of interviews in nine cities acrossRomania, surviving mainly thanks to agreat team of translators,” explains Santo.
The team also analyzed Romania’s businessenvironment. With per capita GDP exThe Gorenje brand, featured here in Galati,competes with Whirlpool in Romania.

Left to right, Siddarth Mehta, Andrew Garland, translator Doris Marin, Todd LeBlanc and Rodd Santo
are in front of a mural in the front lobby of Whirlpool’s Bucharest office. The mural depicts the
Whirlpool Goddess, a central marketing theme aimed at the target market: Strong women in chargeof their environment.

pected to grow from 3,200 Euros in 2005
to 6,000 Euros by 2010, unemployment andinflation in decline and consumers expected to increase their household expenditures, the appliance market in Romania
is poised for growth, the students soon
discovered.
“They did a very good job on themacroeconomic analysis,” says Bolozan.
“We have to be honest. Macroeconomics
is not something a lot of people love. They
brought skills in terms of consumer research and building the questions. They
also had to use all their skills in financial
management.”
In 1995, Whirlpool’s first MAP teamcompared and contrasted the household
appliance markets in Poland, Czech
Republic, Slovakia and Hungary andrecommended growth strategies. As partof that project, the team created a researchtool — a stages-of-development framework used to analyze the politics, economics, infrastructure, trade channels,
competitors and consumers in the four
countries — that has been used by subsequent MAP teams, including this year’s
team in Romania.
“We took an in-depth look at theinternational competition and did a competitive analysis to see how each brand
had positioned itself,” explains Garland.
Their findings: Whirlpool is an ideal
brand for many customers in the areaof refrigerators and freezers, washingmachines, microwaves and built-ins.
To double Whirlpool sales volume inappliances and move them to the top spotin market share in Romania by 2008, thestudents recommended that Whirlpool:
Invest more in advertising. The students found that Whirlpool’s share ofvoice in total advertising has been
declining in Romania as competitors
have begun to promote their products
more aggressively.
Add ranges — also called freestanding
cookers — to its product line. Freestanding cookers represent 20 percentof Romania’s appliance market. Whirlpool already is strong in cooker hoods
and built-ins. Adding ranges to theirproduct line would give loyal customers an opportunity to buy another
Whirlpool appliance, notes LeBlanc.
Introduce a value brand in Romania
that could compete at the low endof the market without diluting
Whirlpool’s high-quality reputation.
Bolozan was impressed with thestudents’ efficiency and thoroughness.
“I enjoyed their pragmatic approachto their work,” says the marketing manager. “They brought a holistic view andhelped us focus. As a marketing manager,
I have raised some of the issues before.
It is probably better if some of theseideas come from someone outside who

d i v i d e n d 37 f a l l 2 0 0 6

is not asking for resources and who is
not emotionally involved.”
The team brought varied viewpoints tothe marketing assignment: Garland had
managed an emergency food relief program in Africa and taught in a charterschool, Mehta had led business development for a publishing services firm for 29
states, Santo had worked as an architect
and LeBlanc had served as a project manager at the HR consulting firm Towers
Perrin. Faculty advisers Andrew Lawlor
and Paula Caproni also were available bye-mail all hours of the day, LeBlanc adds.
For Santo, Garland and LeBlanc, whocame to the Ross School largely becauseof MAP, the Whirlpool experience provided an unusual opportunity to structure
a complex project from the beginning,define it along the way and carry it tocompletion. “I had never done anything
like this before,” says Santo.
Living and working in Romania also
clarified any misconceptions the students
may have had about the country. “The tour
books underestimate Romania as a tourist
destination,” says Garland. “It really is
beautiful, with cobblestone streets and an
Old World feel.”
Mehta looks forward to returning to
Romania in five to 10 years. “I want to see
how things have changed.”

Todd LeBlanc withdraws cash from a
Bucharest bank.

RWANDA:Can Infant Formula
Be Produced
Closer to Home?
wanda, home to the mountaingorillas that roam the misty bambooR
forests of the Virguna Mountains, is a landof contrast — breathtaking beauty andhumanitarian struggles.
This spring a team of first-year Ross
School MBA students saw the endangered
gorillas known for their massive size andgentle dispositions in the apes’ natural
habitat. At the same time, the students
were learning firsthand about Rwanda’s
culture, history and economy; the devastating impact of the human immunodeficiency virus (HIV), with whichapproximately 3 percent of Rwanda’s 8.6
million people are infected; and the international infant formula business.
The Ross students worked as businessconsultants to Rwandan government andhealthcare organizations on a project that
aimed to reduce mother-to-child HIV
transmission and stimulate entrepreneurship and manufacturing in Rwanda. The
assignment: Assess the country’s capabilities to produce infant formula, which forchildren whose mothers are HIV-positiveis safer than breast milk. The project wassponsored by the Clinton Foundation’s
HIV/AIDS Initiative. Robert Kennedy
and Ted London served as faculty advisers. Kennedy is executive director of theWilliam Davidson Institute (WDI) and

Left to right, Leena Ray and Amisha Parekh
speak with Corrie White of the Clinton Foundation and Sara Stulac of Partners in Health (PIH)
at Rwinkwavu Hospital. PIH distributes infant
formula and trains mothers how to use it properly.

Cow’s milk is an ingredient in infant formula, so the Clinton Foundation MAP team researched how
much was available in Rwanda. In this photograph, a young man shows how milk is delivered fromfarms to dairy collection centers.

London is a senior research fellow anddirector of WDI’s Base of the Pyramid
Initiative.
MAP team members Mark Bailey,
Amisha Parekh, Leena Ray and Mathieu
Van Assche, all MBA ’07, worked closelywith Rwandan government officials; international nongovernmental organizations(NGOs), including Partners in Health, theFood and Technical Assistance Projectand UNICEF; and local healthcare providers. The students also met with businessexecutives, including representatives fromSorwatom, Inyange and Sulfo Rwanda
Industries.
For a variety of health-related reasons,doctors generally recommend that mothersin the developing world breast-feed theirchildren. The primary exception to thisrule occurs with mothers who are HIVpositive because HIV can be transmitted
from mother to child through breastfeeding. Some NGOs provide HIV-positive
mothers with infant formula as a substitute for breast milk to feed their children.
“Rwanda has no domestic producers ofinfant formula, so the NGOs must import
the formula from multinational corporations like Nestlé,” explains Ray.
Working with a team of teaching assistants from Rwanda’s Kigali Institute of
Science and Technology, the Ross teamresearched consumer needs, includinginterviewing 30 mothers; assessed local
sourcing, production, packaging and distribution capabilities; and analyzed the finan-d i v i d e n d 38 f a l l 2 0 0 6

cial feasibility of producing infant formulain Rwanda. The students found that the
production of infant formula for the healthmarket in Rwanda would be feasible if
certain business conditions were met.
The MAP students concluded thatbuilding a formula plant would improve
Rwanda’s infant mortality rate and could
boost the country’s campaign to secure
foreign investment and promote new
business development.
“Our partners in Rwanda were extremely
generous with their time and expertise,”notes MAP team member Bailey, who has
worked with nonprofits before and plans
to go into foundation work. “We met withhigh-ranking people in the Department ofAgriculture and the National Aids Commission, as well as NGO and businessexecutives. Part of the value of our project
was bringing all these parties together sothey could gain a fuller understanding of
Left to right, Amisha Parekh, Mark Bailey,
Leena Ray and Mathieu Van Assche flew into
Kigali International Airport. Their MAP
assignment: Assess Rwanda’s capabilities to
produce infant formula.

Ross School
Accepting MAP
Proposals for 2007
orporate and nonprofit organizations benefit in at least two waysC
when they sponsor Multidisciplinary

The trip to Rwanda provided Leena Ray and other members of the Clinton Foundation MAP team theopportunity to hobnob with mountain gorillas.

challenges and opportunities. They discovered they could learn from each other.”
Because Rwanda’s resources are limited
and it must import a fair amount of raw
materials, technology and talent, “we hadto think creatively and not get too discouraged,” explains Parekh, who also
is earning a master of science degree
through the Frederick A. and Barbara
M. Erb Institute for Global Sustainable
Enterprise, a joint program of the Ross
School and the U-M School of Natural

Clinton Foundation Manager Beth Collins,
Robert Kennedy and Polly Ruettgers, MBA ’06,
a former Clinton Foundation staff member, met
to discuss the infant formula MAP assignment
before the students arrived in Rwanda.

Resources and Environment.
In addition to their project-related work,
students explored their host country.
Weekend trips to several national parks
allowed the students to take in Rwanda’s
natural beauty. On a more somber note,they also learned about Rwanda’s recent
history through visits to several sites commemorating the 1994 genocide in which an
estimated one million people were killed.
The Rwanda MAP project was proposed by Polly Ruettgers, MBA ’06, who
as a former staff member for the Clinton
Foundation negotiated with pharmaceuticalcompanies for lower-priced drugs in Africa.
“When Polly arrived at the Ross Schoolas an MBA student, she had so manyideas I couldn’t keep up with them all,”recalls Andrew Lawlor, a faculty member
long involved with international actionbased learning programs. “One of them
was for an infant formula plant in Rwanda.
‘Could such plants operate successfullynear customers and could they be scalable
in other African countries, Brazil, India
and Romania?’” he recalls. Ruettgers’
contributions were recognized in April
when she received the Ross School’s Entrepreneurial Leadership Award.
“The fact that Polly proposed our project
and worked with us takes action-basedlearning to another level,” says Ray.
“Our project was really entrepreneurial
in scope. I’ll never forget the experience.
It was so motivating.”
Mary Jo Frankd i v i d e n d 39 f a l l 2 0 0 6

Action Projects, says MAP Managing
Director Gale L. Amyx. Sponsors
receive actionable recommendations on
current business issues they are facingand experience firsthand what Ross
School MBA students can accomplish
in a short period of time, and all at
minimal cost to the organization.
Sponsorship costs vary, depending
on team size, location of the project,amount of travel required for gathering data and time spent on-site. Teams
are comprised of four to six students.
Because MAP is an academic program,students do not receive monetarycompensation. Sponsors cover expenses
such as housing, meals and transportation when teams are on-site. Sponsor
costs average $12,000 for domestic projects and $20,000 for international ones.
About half the domestic MAP
projects are proposed by Ross School
alumni, many of whom serve as thesponsor’s liaison, working directly with
the MAP team to support its needs
for a successful project outcome.
The competitive process of selecting MAP team assignments for 2007
begins this fall. Prospective sponsors
propose projects, which are evaluatedby the MAP Advisory Team for rigor
and fit. Although the application
deadline is November 30, preferenceis given to applications received earlier, Amyx explains.
Students bid on projects in early
January and receive their MAP assignments later in the month. To
learn more about sponsoring a MAP
team, visit www.bus.umich.edu/MAPor call Amyx at 734.763.2463.
First-year MBA students learn about
projects at MAP kick-off.

4 5 3 0 / (  ' 0 6 / %"5 * 0 / 4#6*-%'6563&
#64*/&44-&"%&34

5IFGPVOEBUJPOIBTCFFOMBJEGPSPVSOFXQIZTJDBMTQBDF/PXZPVDBOIFMQVTCVJMEBTPMJEGPVOEBUJPOGPSPVSTJHOBUVSFQSPHSBNT5IF"OOVBM'VOE
JTUIFMBSHFTU NPTUJNQPSUBOUTPVSDF
PGVOSFTUSJDUFETVQQPSUGPSUIFTDIPPM
BOEJTWJUBMUPFOIBODJOHPVSTUVEFOUTVOJRVFFYQFSJFODF
(JGUTUPUIF"OOVBM'VOE
t TVQQPSUUXPJOUFSOBUJPOBM."1QSPKFDUT
BOEUXP%PNFTUJD$PSQTQSPKFDUTt QSPWJEFTDIPMBSTIJQTUP##"BOE
 .#"TUVEFOUTt QSPWJEFTVQQPSUGPSGBDVMUZSFTFBSDI
t IFMQFOTVSFUIBU3PTTNBJOUBJOTJUT UPQSBOLJOHT
4VDDFTTEFQFOETPOZPV(JWFPOMJOFBUXXXCVTVNJDIFEVBOOVBMGVOE DBMM

PSSFUVSOZPVSUBYEFEVDUJCMFHJGUJOUIF
BUUBDIFEFOWFMPQF
JO%JWJEFOE:PVSHJGUUPEBZFOBCMFT%FBO%PMBOUP
CFSFTQPOTJWFUPDSJUJDBMJTTVFTBOEMBZTUIFGPVOEBUJPOGPSUIFOFYUHFOFSBUJPOPG
3PTTTUVEFOUTUPCFMFBEFSTJOUIPVHIU
BOEBDUJPO

-

&

"

%

*

/

(



*

/



5

)

0

6

(

)

5



"

/

%



"

$

5

*

0

/

Early Women MBA Students
Ushered in a New Era
There were 19 of them. Rich andpoor, most came from Michigan
and most were in sororities. Many
loved math. A high comfort level withnumbers might be the most telling trait
shared by the women who defied the
prejudices of their time to graduate withMBA degrees in the 10 years following
the creation of what is now the Stephen
M. Ross School of Business.
They lived in a world where most
women didn’t work outside the home. In
the 1920s, only 21.5 percent of women

PHOTO COURTESY OF BENTLEY HISTORICAL LIBRARYTOP Dorothy Hagen Simpson, center, amember of the Business Administration Club.
BELOW Tappan Hall became the home of the
new Business School in 1924 (photo 1930).

over 16 were in the labor force compared
to 60 percent in 2000. The difference liesin the virtual absence of married women
workers in the early years of the last century. In 1900, 44 percent of single women
worked, but only 6 percent of married
women did.
But change was in the air. In 1920,
women won the right to vote and a social
revolution in women’s dress and manners
had taken hold. Many sheared their long
hair, cropped their long skirts, dispensed
with whalebone, smoked in public andbegan breaking the law — specifically theprohibition against liquor, which wasenacted in 1919.
All 19 students began college when theeconomy was booming. A fascination withbusiness, the stock market and innovative
new industries like automobile manufacturing swept through the country’s Main
Streets and caused Babbitts everywhere to
dream of fantastic wealth. But by the timethey graduated or began seeking jobs, theworld had become bleak. The 1929 crashand ensuing Great Depression closed
plants and drove men from the workplace
to the breadlines.
The obstacles that confronted women
workers were mirrored in the businessschool. Women made up only 5.6 percentof those earning MBAs between 1926 and1935: 19 women, in contrast to 317 men.
In 1930-31, in the middle of that decade,only 28 percent of all U-M students were
women.
Two women business students held classoffices; none was an officer in the Businessd i v i d e n d 41 f a l l 2 0 0 6

Administration Club. They lived where
they could, in a dorm, a sorority, with thefamily of a professor or in one of many
private residences called League houses,
where women lived under University
supervision. The men, on the other hand,formed two business fraternities, and thedean dreamed of a dorm “to cultivate[men’s] esprit de corps by living together.”Segregation between the sexes extended
to alumni clubs, smokers and other social
events — even the want ads.
Responding to a survey about women’s
careers published by Dividend in 1970,
Helen Cornelia Sandford, MBA ’28, wrote,“Discrimination in my case began with
the University of Michigan itself. When I
was about to graduate with the MBA degree,
I was advised to return to teaching, eventhough my adviser said that as far as IQ
was concerned, I was second in the class.”
Sandford, the daughter of Benjamin andSarah of Northville, New York, went on
to become an investment accountant at
Stanford University andthen secretary-treasurerof an investment bondcompany. She died in
San Mateo in 1995.
Ailene Mae Yeo
Bardsley, MBA ’33,
however, remembered that women
were “very welcome.
Everyone was scared of[William] Paton,” whotaught accounting, she
Ailene Maesaid, “but he was a won- Yeo Bardsleyderful professor and very tolerant of us
gals, there were so few of us.”Bardsley, who at 98 still lives in Anderson, Indiana, her home since the early
1940s, doesn’t remember Margaret Elliott
Tracy, the one woman faculty member at
the school from its founding. Tracy researched why women were clustered insocial service and education jobs rather
than higher-paying business professions.
Students dressed up for class and, likemany, Bardsley wore a fur coat but resisted
the lure of bobbed hair. She instead spent“hours” under the dryer at the hairdressers.
Prohibition didn’t touch her life since she
didn’t drink or socialize with those whobootlegged liquor. Few students had cars.
She, like the others, walked or rode thestreetcars. The one exception was travelingto the formal dances at the Michigan Union
because floor-length gowns required taxis.
Every such formal event began witha procession led by the man who had
chaired the event and his date. Bardsley
twice led such processions. Women received special dispensations from rules
for big events like the J-Hop. Otherwise,
they had to be in their rooms by 11 p.m.
during the week and 1 a.m. on the weekend. “Our housemother would sit up until
everyone was in,” Bardsley recalls.
The only child of Alice and William,a Canadian who practiced law, Bardsley
grew up in West Branch,Michigan. She earned a BA
degree and teaching certificate in 1930 andtaught a year in RoyalOak before deciding,partly because she loved
math, to return for an
MBA, majoring in banking and merchandising.
Her first job was with
Himmelhoch’s in Detroit
Mary Parnall
as a buyer in the better
dress department —“anydress over $29,” she explains. She organized a fashion show fundraiser for theMichigan League using professionalmodels and U-M students.
After working for the retailer for five
years, she and her friend Mary Parnall,
MBA ’31, who worked for Sanders ice
cream company in Detroit, obtained leavesof absence to travel around the world.
Sailing from Oregon, they spent six months
visiting Hawaii, China, Australia, India
and Europe.
Parnall was born into a family of adventurers. Both her father, Samuel, andher grandfather were mining engineersin Michigan’s Houghton County. Samuel,along with his wife Lauriette and theirfour children, moved West, living at various times in Colorado, California and the
Arizona Territory, where Parnall was born.
Parnall came from California to Michigan for her BA, perhaps because of thepresence of family. Her uncle, Christopher
Parnall, had been medical superintendentand director of the University Hospitaland his sons attended the U-M. She wasactive in the Michigan League. Bardsley
remembers Parnall as “a super gal, witha brilliant mind.” Parnall graduated withhigh distinction. Soon after Parnall joined
the Sanders company, Bardsley recalls, she“practically ran it, moving up very fast to
become general manager.”
After their trip abroad, Parnall resumed
her job at Sanders, but Himmelhoch’s had
hired a replacement for Bardsley. Unfazed,
she moved to New York, where she became
a buyer for Lord & Taylor. There, a friendship with a man who had lived in the sameapartment building in Detroit blossomed
into a romance, and in 1940 she married
P. Edward Bardsley. The war took themto Anderson, Indiana, where the General
Motors Delco-Remy plant produced
war materiel. She didn’t work outside
the home —“I didn’t have to,” she recalls.
Bardsley was active in the community
while raising her two children. When they
were grown, she traveled for her sorority,
helping establish new chapters. Everysummer Parnall spent a week with Bardsley
and her family in Northern Michigan.
Parnall died in Whittier, California, in 1995.
The program that Sandford, Bardsley,
Parnall and the 16 other women embarked on consisted of three years ofwork in the liberal arts and two years inthe business school. A BA degree wasawarded after the first three years, andan MBA after the last two years. In thefirst year they could study production,
personnel, marketing, business statistics,
accounting and finance. In the second,
they studied accounting, marketing, investments, banking, sales administration,
advertising and real estate management.
Courses in business policy and a thesis
were required. In 1929, the number ofyears in liberal arts was reduced to two
and the years in the business school increased to three.
With a curriculum in place, a faculty
drawn mostly from Harvard and Michigan,and Edmund E. Day as dean, the firststudents were welcomed to Tappan Halld i v i d e n d 42 f a l l 2 0 0 6

in September 1924. The quarters were“admittedly makeshift,” old and inconvenient, according to acting dean C. E. Griffin.
Bardsley remembers walking up the stairsof “that old red building” and turning left
into a classroom. A reading room and library took up a large part of the second floor.
Here, Dividend looks at the lives ofother early women business graduates.

The Ross School’sFirst Woman
The freedoms women had won in the
United States appealed to Sih Eu-yang
Chen, MBA ’26, when she came from
China. She, in turn, expanded those freedoms as Michigan’s first woman MBA.
Chen kept a scrapbook of her time in thestate of Michigan and wrote of a monthspent at a camp in Port Huron: “This is thelife I can never get in China.” Her father
had been open-minded and encouraged
her education, according to her daughter
Lillian Yeu. At age 25, after teaching algebra and English in girls’ middle schools,
Chen graduated from the Commercial
College of Southeastern University inShanghai in 1924.
Chen came to Ann Arbor as the 52nd
recipient of a Barbour scholarship for
Asian women, one of 10 that year. She
received a stipend of $800. It was not easy
for Asians on campus at thattime. Sixteen of the 24
League houses in a 1925
survey refused to accept
Asian residents. The
University often sought
American women who
were members of international clubs such as the
Cosmopolitan or World
Fellowship/YWCA to sharehouses with Asian students.
Chen lived in Helen New- Sih Eu-yang Chenberry residence hall, joined
the Chinese Students’ Club and was thesole woman in the Business Administration Club. She received a “favorable” academic evaluation from Dean Day and,
when she graduated on June 14, 1926, shewrote: “I consider it a very important day,for I am the only girl getting [an] MBAfrom the Business School of the University of Michigan.”
Chen explored the country and returned
to Ann Arbor for a semester’s study, sailing home in February 1927. There she
met Chungshen S. Chen, who had earned
a PhD from Columbia and worked at abank. They married in 1928. She worked

before and after marriage, as an accountant and eventually, after four babiescame, as a professor in the Commercial
Department at Shanghai College.
The family fled Shanghai after Japan
invaded, and her fifth daughter was bornin Chunking. By 1946, they had returnedto Shanghai and she became chief accountant at the New Asia Development Corp.
In 1949, the family made its way to Hong
Kong, where Chen taught English and herhusband worked as a financial adviser.
They sought scholarships for their daughters in American schools, and all of them
became professionals in public health, mathor education. In 1959, the Chens weresponsored by a church in San Francisco.
Arriving as refugees, they settled inBerkeley, where Chen attended adulteducation classes. Both her daughter andson-in-law Joseph Pummill describe
Chen as curious, outgoing and creative,
with many friends — traits that helped heradapt in her tumultuous life. She died in
1981; her husband died a year later.

Pursuing Careers
in Business and Education
Professional degrees opened doors tocareers in business and education for
Evelyn Kingsbury Burke, MBA ’28, Elizabeth Charlotte Black Ross, MBA ’29,
Alice M. Plough Lemen, MBA ’30, Johanna Mathilda Wiese, MBA ’33, Dorothy Margaret Hagen Simpson, MBA ’28,
F. (Freida) Elizabeth Forman Laurenson, MBA ’34, and Eleanor Louise Delo
Paddock, MBA ’31.
Today, the name of Evelyn Kingsbury
Burke lives on in a Ross School scholarship that bears her name. When she diedin 1992, Burke bequeathed $158,000 to
the business school. But her situation was
grim in 1937, when she returned to Ann
Arbor from Chicago after a brief marriage
to A. G. Rueckert and took a job as afactory worker. In 1941, at age
36, she began working at
Edwards Brothers printing
company and rose fromoffice work to become
the elected secretarytreasurer of the firm in
1949, a post she held
until her 1970 retirement.
Her parents, Orrin andMay, worked as bookkeepers in a bank in Sparta,
EvelynMichigan. After her husKingsbury
band’s death, May brought
Burke
Burke to Ann Arbor toattend the University and worked as ahousemother, bookkeeper and dispensing
assistant in the chemistry store while herdaughter attended school.
Ann Edwards, the wife of Joseph, theformer president of Edwards Brothers,
said that Burke gave the credit to theschool for her training and to J. William
Edwards, Joe’s father, for hiring her. Burke
also had a role model in her mother who
worked after marriage and motherhood.
“May was outgoing and sharp, very social,”
said Ann Edwards, “and Evelyn was chattyand personable, but circumspect — shenever gossiped or criticized.” The two
women opened their Olivia Street house at
U-M reunion time, and in 1948 a fellow
business graduate reported that alumni
gathered and “sang at the Burke residence.”
Elizabeth Ross also had a working motheras a role model. Ross’ father,
Maurice, settled in Detroit and established the
L. Black Co., a jewelrybusiness. He died in
1921, when Ross, theoldest of three, was
14. His widow, also
named Elizabeth,
managed the company,
expanding it to include
optical goods.
Ross was a horseElizabeth
woman and joinedCharlotte
Pegasus, a riding club.
Black Ross
As an undergraduate, she
was elected a lower-class officer. Afterearning her MBA at the age of 22, shereturned to Detroit, married John Ross
and had two daughters. When she diedin Grosse Pointe in 1992, she still owned
the business her parents had left her.
Another businesswoman, Alice M.
Plough Lemen, daughter of Washington
State fruit growers Walter and Bessie Plough,came to Michigan in the late 1920s after
graduating Phi Beta Kappa
from Washington State
College. The businessschool hired her as
an associate in the
Bureau of BusinessResearch at a halftime salary of $500.
Only two years
after graduating with
distinction, Lemen
became secretarytreasurer at Edwards
Alice M.
Brothers. She married
Plough Lemen
Alfred Lemen of Dexter,d i v i d e n d 43 f a l l 2 0 0 6

Michigan, in 1937, and unlike many of her
women classmates, she continued to work.
She stayed at Edwards Brothers until
1940, when she moved to University Lithoprinting Co. in Ypsilanti. On a Saturdaynight in January 1946, at age 38, she fell
down the basement stairs at home anddied the next day of a brain hemorrhage.
Johanna Wiese didn’t stop with an MBA,but became a certified librarian in 1935
at age 24. The sixth of sevenchildren born to Mathilda
and Charles, a machine
operator from West
Prussia, Wiese was awoman of wide-ranging
interests at Ann Arbor
High School. She participated in student government and literary, athleticand dramatic clubs, and waselected class tomboy.
Wiese worked at the Wil- Johanna
low Run bomber plant during Mathilda Wiese
World War II, as director ofschool libraries in Chelsea, Michigan,
assistant to the U-M Dean of Nursing andat Social Security. Her leisure activities
included church, women’s clubs, and historical and philanthropic groups. A loyal
alumnus and lifelong Ann Arbor resident,
she attended many business school reunions. She died in 1996 at age 84.
Dorothy Simpson taught in Detroit
during the school year, but
she spent her summers
traveling the world. In
the summer of 1929,
she lived at thenorthern tip of theLabrador Peninsula,only a few hundred
miles below the Arctic Circle, working
with the International
Grenfell Association to
Dorothy Margaret complete aerial mapHagen Simpson
ping of the coast. The
previous summer, thefirst after obtaining her MBA in 1928 at
21, she had toured Europe, and she spent
the following summer seeing SouthAmerica. Simpson’s father, Marcus, bornin Norway, was a physician in Detroit.
Her mother, Thiel, moved to Ann Arborwith her two children while they were inschool. Simpson married George Lester
Simpson, and died in Oceanside, California,
in 1986.
Teacher Eleanor Louise Delo Paddock
described directing 350 volunteers work-ing with underachieving
elementary school children “as the most interesting and rewarding
work since I left the
University of Michigan”
when she responded toa 1969 Dividend alumni
questionnaire.
Eleanor Louise
Like several of theDelo Paddock
early women graduates,
Paddock was an only child and grew
up in comfort with her parents Roy, abanker in Elmira, New York, and Lily,
who was born in England. Immediately
after earning her degree, she taught commercial subjects at Dickinson Seminary
in Williamsport, Pennsylvania. She thentaught in her native Elmira, New York, until
she married Byron Paddock and had ason in 1945. Paddock died in Horseheads,
near Elmira, in 1996.
Elizabeth Laurenson taught math toinner-city children almost
all of her adult life andwasn’t about to let
mandatory retirement at age 65 stop
her. “She was spirited and ran forschool board in
Oakland, California,” according todaughter Betsy White.
She served two terms,
one as president, before Elizabeth Forman
being felled by a stroke. Laurenson“She worked tirelessly to
improve education,” White recalls.
When she was growing up, Laurenson’sfamily didn’t have much money; her son
Mark says, “They didn’t starve, but she
had to work for everything she had.” Herparents Robert Clyde and Myra owned aneatery in Newaygo, Michigan. Laurenson
was the oldest of the five children andworked her way through Western Michigan
University at her boarding house and as aWestern Union operator.
She earned her MBA at age 25 andmarried William Laurenson, who graduated with a BS degree in naval architecture and marine engineering. His work
took them to Virginia and California,
where he worked on Liberty ships, andshe briefly taught. After William died in
1950, Laurenson moved with her fourchildren to California and resumed
teaching. She died in 1991.

Building Families
and Communities
Some of the early women graduatesworked outside the home until they married and had families. Among them weresisters Bessie Valborg Egeland Johnson,
MBA ’31, and Edith Valborg (Val) Egeland
Emde, MBA ’32, who grew up in Bisbee,
North Dakota.
The girls’ father, Axel, came from Norway,
and settled in Bisbee, where he established himself as a banker and met his
future wife, Ida, when she was visitingfrom Chatham, Ontario. He died when
Johnson was 15 and her sister was 14. Ida,
a teacher, moved them back to Chatham.
In September 1926, she rented a house forthe three of them for her daughters’ freshman year at U-M.
Johnson served on the board of theMichigan League in 1929, the year it wascompleted after a sustained, impassioned
fundraising effort by Michigan women.
The sisters lived in a League house after
their mother returned to Chatham.
Johnson spent the summer of 1928 as theMichigan Daily’s circulation manager;
Emde also joined the Daily staff, but on
the editorial side.
As juniors, the sisters moved into
Martha Cook residence hall. It was sucha happy time, recalls Johnson’s daughter
Deborah Reddick, that when her motherspoke of being at the U-M, she would talkof “when we lived in Martha Cook.”
As an upperclassman, Johnson was
inducted into Wyvern (a junior honorsociety), a national honorary journalism
sorority and the Senior Society for independent (non-sorority) women. Classmates elected her vice president of her
LSA class.
Throughout her years in Ann Arbor,
Johnson was in love with Godfred Johnson,
whom she had known in Bisbee. In 1933,at 25, two years after earning her MBA,they married at the Michigan League.
Johnson worked briefly
at Hudson’s department store in Detroit
before she andGodfred, a banker,
settled in Petoskey,
Michigan. The
mother of three
was active in her
church and community. Johnson told herdaughter that she felt
Bessie Valborg
her own degree was
Egeland Johnson
useless and was

d i v i d e n d 44 f a l l 2 0 0 6

pleased when Reddick became a nurse.
Johnson was very shy, her daughter said,
seldom traveled and didn’t entertain a lot, but
she was a formidable Scrabble player —in Latin. She died in 1979.
Val Emde shared all of her sister Bessie’s
honors, was elected to Phi Beta Kappa
and graduated at the head of her businessschool class. She was the firstwoman at U-M to be inducted into Beta Gamma
Sigma, the national honorary business society.
Emde joined the
Cosmopolitan Club,
made up of Americanand foreign students,
and the World Fellowship
Committee of the YWCA,
which she chaired as asenior. Her work on theEdith Valborg (Val)
Daily earned her a publiEgeland Emdecations scholarship for
poetry in 1930. The business school hired her for $1,600 to workin the Bureau of Research for a year between earning her BA at 20 and her MBA.
She stayed on at the Bureau of Research
after receiving her MBA, living with hersister. The two had little money. Reddicktells of a time the sisters dined on a single
egg. She married Ludwig Emde, who
graduated from U-M in 1930 with anengineering degree and became presidentof a company that made water coolers
and refrigerator parts. The couple stayedin Ann Arbor, where she continued towork until 1937. Her son, Robert C.
Emde, BBA ’60, MBA ’61, was born in 1938,
and the family moved to Birmingham,
Michigan. She died there
in 1987.
Throughout the 1990s, Robert Emde waslead accountant for Ernst & Young on the
U-M account, reporting annually to the
Regents. When Christopher R. Emde,now vice president of sales with Entertainment Sports Partners in Bloomfield
Hills, earned an MBA in 1997, he became
the family’s third-generation Ross MBA.
To read about more early women graduates, visit www.bus.umich.edu/NewsRoom/
WomenPioneers.
Linda Robinson Walker

Editor’s Note: We thank the Ross alumni, relatives of alumni, staff of the Bentley
Historical Library and the MichiganensianYearbook who contributed to this article
and provided photographs.

ALUMNI ACTIVITIES

Baltimore
The Ross School Alumni Clubs ofBaltimore and D.C. hosted their annual
holiday party at the home of Adam Borden, MBA ’05, and his wife Meredith inBaltimore on December 11. Approximately 25 alumni and their families, including four members of the Class of
2005, attended the festivities. Contact
Borden at aborden@umich.edu for more
information about the Baltimore club.

BALTIMORE — Among those who attended
the annual holiday party were, left to right,
front row: Susan Benkowski, MBA ’01,
Linda Murphy, BS ’81, MBA ’85, Julie Granof,
MBA ’05, MPP ’05, Diviya Sharma, MBA ’05,
and Rachel Zimmerman, MBA ’00; back row,
Noah Cowan, MSE ’97, PhD (Engineering) ’01,
Ed Watts, MBA ’03, Adam Borden, MBA ’05,
Steve Silberg, MBA ’72, and Jonathan Nellis,
MBA ’05.

Chicago

CHICAGO — Among those who attended
Chicago’s Annual Spring Business Conference
were, left to right, Evan Gallinson, BBA ’97,
Yehuda Cohen, MBA ’83, Harriett Robinson,
MBA ’80, and Jeffrey Spahn, BBA ’75.

The theme of the Chicago Alumni
Club’s Annual Spring Business Conference on April 6 was “Private Equity Perspectives — Michigan Alumni in Private
Equity and Entrepreneurship.” David
Brophy, associate professor of finance andconference keynote speaker, talked about
emerging trends in private equity. A panel of Ross alumni also provided theirperspectives on trends and how private
equity firms work and interact with entrepreneurs. Panelists included William
Hall, MBA ’67 and PhD ’69, chairman
and CEO of Procyon Technologies Inc.
and adjunct professor of strategy; Dan
Hennessy, MBA ’81, founder and partnerof Code Hennessy & Simmons LLC;
Keith Yamada, BBA ’90, partner of CIVC
Partners; and Jon Leiman, BBA ’94, anassociate at American Capital. Contact
Yehuda Cohen, MBA ’83, at yccohen@umich.edu for more information about
the Chicago club.
CHICAGO — David Brophy, associate professorof finance, center, talks with Ross School
alumni at the Chicago club’s Annual Spring
Business Conference held at the Sears Tower
Conference Center.

d i v i d e n d 45 f a l l 2 0 0 6

BRUSSELS —When Bobby Wehmeyer, left, andAmish Thakker, right, both MBA ’07, were working in Belgium this spring on their Multidisciplinary
Action Project sponsored by OrthoMediTec, theyused the opportunity to touch base with Ross
alumni there, including Christophe Soulier, MBA’02, finance director at Johnson & Johnson,
who took the MAP team members to lunch.

Germany
The Ross School Alumni Club of Germany met on May 21 in Frankfurt. Andreas
Kirschkamp, EX ’00, welcomed the group.
The program included discussions about
the importance of TV soccer rights in aconverging media world and the distressed
debt market as a driver of economic
growth in Germany. Professor Emeritus
Gunter Dufey also shared news about theRoss School. The day concluded with avisit to the exhibition Max Beckmann,
The Watercolors and the Pastels. For more
information on club activities, contact
Kirschkamp at andreask@umich.edu.

GERMANY— Professor Emeritus Gunter Dufey,
left, front row, met with Ross Club of Germany
members and friends Michael Wolff, MBA ’92;
back row, Tabi Bude, EX ’00, Martin Arnold,
Frederic Fayolle, MBA ’98, Alexander
Winkelmann, EX ’00, Florian Muller, EX ’00,
Radboud Vaessen, MBA ’01, Andreas Kirschkamp, EX ’00, and Roman Martens.

ALUMNI ACTIVITIESNew York
Dean Robert J. Dolan and Stephen M.
Ross, BBA ’62, met with more than 350
Ross School alumni who gathered at the
Waldorf Astoria Hotel in New York City
on October 25 to socialize and view plans
for the new building. In April, members of
the New York Alumni Club attended anevening program with Iraqi Ambassador
to the United Nations Feisal Amin
al-Istrabadi, who talked about the role of
the U.S. business community in reconstructing Iraq. Contact Cecil Shepherd,
MBA ’00, at cashephe@umich.edu for more
information about the New York club.

NEW YORK —The Ross School of Business Alumni Club of New York board meets quarterly to planclub activities. The board includes, left to right, front row, Bob Crespi, MBA ’99, and Emily Kramer,
BBA ’04; back row, Winston Ma, MBA ’03, Cecil Shepherd, MBA ’00, David O’Dell, MBA ’04,
Candace TenBrink, MBA ’97, and Timothy Garrabrant, MBA ’85.
NEW YORK — Left to right, Stephen M. Ross,
BBA ’62, Dean Robert J. Dolan and Cecil
Shepherd, MBA ’00, at the Waldorf Astoria Hotel.

NEW YORK — Members of the New York Alumni
Club hosted a BBA happy hour on January 12.
Among those who attended were left to right,
front row, Cecil Shepherd, MBA ’00, and Emily
Kramer, BBA ’04; middle row, Scott Buchbinder,
Pamela Baskies, Leaat Dulberg, Grace Songand Allison Stebbbins, all BBA ’04; back row,
Justin Surma, BBA ’04, and Vincenzo Villamena,
BBA ’04 and MAcc ’05.

SAN FRANCISCO — The Ross School is well represented on the University of Michigan’s Bay
Area Softball Team. Team members include, left to right, front row, Scott Sappenfield, MBA ’03,
and Kevin Hamilton; middle row, Jon Munzel, MBA ’00, Katie Martin, Cara Schwartz, MBA ’02,
Jamie Harding, Jeremy Cotton and Jennifer Lazar, BBA ’05; back row, Mike Wolfe, MBA ’05,
and Juan Pablo Bedoya, MBA ’05. Contact Adam Carson, MBA ’03, at wcarson@umich.edu formore information about the Ross School of Business Alumni Club of San Francisco.

d i v i d e n d 46 f a l l 2 0 0 6

ATLANTA AUSTIN AUSTRIA BEIJING BOSTON BUENOS AIRES CENTRAL AMERICA CHICAGO CINCINNATI CLEVELAND COSTA RICADALLAS DENVER DETROIT DUBAI EASTERN EUROPE FORT WAYNE FRANKFURT GRAND RAPIDS GREECE HARTFORD HONG KONG
HOUSTON INDIANAPOLIS IOWA ISRAEL IVORY COAST JAPAN KANSAS CITY LONDON LOS ANGELES LOUISVILLE MADRID MEXICO CITYMIAMI / FORT LAUDERDALE MILWAUKEE MINNESOTA MUMBAI NEW DELHI NEW YORK NORFOLK NORTH CAROLINA NORWAY OREGON~PARIS PERU PHILADELPHIA PUERTO RICO ROME SAN DIEGO SAN FRANCISCO SANTIAGO SAO PAULO SEATTLE SHANGHAI SINGAPORE
SOUTH KOREA ST. LOUIS SYDNEY TAIWAN TAMPA THAILAND TOLEDO VENEZUELA VIETNAM TORONTO WASHINGTON, DC ZURICHC R E AT I N GR O S SA

L I F E T I M E

A L U M N I

C O M M U N I T Y

A R O U N D

T H E

F O R

W O R L Dw w w. b u s . u m i c h . e d u / a l u m n i c o m m u n i t y / a l u m n i c l u b s

734.763.5775

izing Doctoral Education in Business.

Class Notes
Mary Davidson, BBA ’50
joined Himmelhoch Department Store in
Detroit after graduation, and during her
25 years there she became a buyer andmerchandise manager. When it shut
down, she joined The Vogue in nearby
Flint for 12 years until it closed. She thenworked for Hadley Arden and retired
after it shut down in 1993. “For a businesswoman in those days, retailing wasyour primary area,” says Mary. After retirement she did some traveling until her
sister was diagnosed with cancer. Mary
took care of her until her sister passed
away in March. Now she is content to stayhome and relax with a good book or
crossword puzzle. You can reach Mary atmarydav25@aol.com.
Vern Terpstra, BBA ’50, MBA ’51, PhD ’65
received a certificate of appreciation from
Wichita State University for his workshop
on Internationalizing the Curriculum,
held in mid-May. The conference included
about 20 members of CIBER (Center forInternational Business Education andResearch) and some 90 professors fromaround the country. Vern also attended a
CIBER conference at the University ofConnecticut in late July on International-

Mom, Daughter
Balance Family, CareersW

hen Rose Potcova Szoke, BBA’50, graduated, she started out
in retailing in Grand Rapids,
Michigan, and ended up at J. L. Hudsonin Detroit. “I worked in retailing for eight
years and then stayed home for 20 years,”
she says.
Szoke resumed her career in 1978, firstteaching in Buffalo and then helping
women reenter the workforce. She retiredin 1992 and moved to New Mexico in
1996. “When you are getting out of business school, you think as an individual.
But later the degree helps shape your values
and commitments to your family, community and place of worship,” says Szoke.
Women today tend to do more careergoal setting and planning than a generationago, she notes, “and their timetables do
not include 20 years out of the workforce.”
For example, her own daughter, Tina
Szoke Cullom, MBA ’85, started in consulting with Touche Ross (later Deloitte
and Touche, then Deloitte Consulting) in
Chicago from 1985 to 1990, left consulting
in 1991 to join a client’s IT department,
and in 1994 returned to Deloitte.
Tina married Mike Cullom in 1994
and a year later moved to the Denverarea, where she joined a local healthcare

provider and became director of Physician
Systems and then director of IT Consultancy. “In 1997 we had our first child,
Rosemary, and I worked part-time,” sheexplains. “This put me on a different
track when it came to advancement.” In1999 she left the paid workforce. “Myhusband was doing well with his consulting practice, Evergreen Management
Advisors. I poured myself into full-time
motherhood. We had our second child,
John, in 2000.”

Jack Rounick, BBA ’56
recently joined the law firm of Flamm,
Boroff & Bacine PC in Blue Bell, Pennsylvania. He recently was named one of the
top 100 attorneys in the U.S. by Worthmagazine and one of the top 100 Super
Lawyers in Pennsylvania by a vote ofsome 36,000 Pennsylvania attorneys. Jackalso serves as a director of Deb Shops
Inc., a NASDAQ-listed company. You canreach Jack at jrounick@flammlaw.com.
Bruce D. Evans, MBA ’58
is a professor of management at the
University of Dallas. Since creating thefinal required MBA course there in 1993,
Bruce has guided 133 strategy-based teamprojects in which his students develop
solutions for actual business problems

Now an independent consultant, sheprovides clients with project management
and IT services. “Although it may notbring the title, salary and prestige of alarge corporate or consulting setting, I am
able to balance client and family needs,”
Cullom explains. “I advise new mothers
to find a way to stay connected to theirprofession, even if it is a step back, because coming back is much more difficult.
I returned to work for several reasons: I
missed the challenge, I wanted to help
provide for my family and I wanted to set
an example for my children that you canbe anything you put your mind to, andthat it takes work to build and support afamily.” Contact Cullom at tcullom@
emadvisors.com.
Fred Wessells

CLASS NOTES
submitted by CEOs. “Our typical class is
14 students, and they decide how to organize their group into workable teams thatjointly develop and deliver meaningful
solutions to real problems. It has been avery rewarding experience over the past
34 years.” To contact Bruce, e-mailbdevans@qsm.udallas.edu.
Lynn R. Evans, BBA ’59, MBA ’59
has been appointed alumni representative
to the U-M Committee on the Economic
Status of the Faculty. This committee,
formed in 1944, monitors faculty salaries,
fringe benefits and other aspects of faculty employment competitiveness at otheruniversities. Lynn continues to serve on
the board of directors for McLaren Hospital in Flint, Brighton Hospital (Michigan’s largest substance-abuse facility),“M” Club (University letter winners
group) and the U-M Alumni Association.
He resides in Bloomfield Hills but spends
as much time as possible in Charlevoix,
Michigan.
Roger Frock,MBA ’59
a member of thefounding group of
FedEx, has written
Changing the Way
the World Does Business, the inside story
of FedEx’s incredible
journey to success. It
will be published byBerrett-Koehler in October. “The bookrecounts the potential roadblocks wefaced, the difficulties
of getting through the start-up, and theprograms we instituted for our employees
and customers,” says Roger. He adds,“Customer satisfaction was always a key
element in our plans for the company andcertainly one of the major reasons for its
success.” You can contact Roger at
rfrock@att.net.
B. Joseph White, PhD ’75
shares the secret of becoming a great
leader in his new book, The Nature of
Leadership: Reptiles, Mammals and theChallenge of Becoming A Great Leader,being released by AMACOM Books in
October. The book includes a foreword
by C. K. Prahalad, the Paul and Ruth
McCracken Distinguished University
Professor of Corporate Strategy. In thisbook, Whitelays out his
philosophy
about leadership gained
over 30 years
as a leader,both in academia andindustry.
What do reptiles and mammals haveto do with leadership? White uses thedichotomy of reptile and mammal toillustrate the dual nature of leadership, withreptiles representing the detached, analytic and sometimes adversarial side ofleadership and mammals representing thenurturing, engaged and cooperative side.
In The Nature of Leadership, White goesbeyond this dichotomy to outline a broader
framework. The reptilian and mammaliannature of leadership form the sides ofWhite’s leadership pyramid. Other qualities he calls foundation requirements —including ability, strength, character and thedesire to be in charge — form the pyramidbase. At the top of the pyramid are theleadership requirements to make change
successfully, including innovative thinking,risk-taking and recruiting great people.
White, dean emeritus and professor
emeritus of business administration at theRoss School, served as interim presidentof the University of Michigan in 2002. Healso served in two vice presidential posts
at Cummins Engine
Co. from 1981 to
1987. In January
2005, he took officeas the 16th president of the University of Illinois, withresponsibility for its
Urbana-Champaign,
Chicago and Springfield campuses. A
native of Detroit andraised in Kalamazoo, White earned an
MBA at Harvard Business School and a
BS degree in international economics at
Georgetown University School of Foreign
Service.
Janice M. Whitehouse, MBA ’79
has been named president of CyberMichigan, an institute within the nonprofit
Altarum. “With support from CyberMichigan, the state of Michigan has madetremendous progress in providing residents access to information technology,”
says Janice. CyberMichigan has been at

the forefrontof helping
Michiganpolicymakers, communities andresidents
better understand andharness thepower of information and communication technology to improve the lives of all
Michigan residents. You can learn moreat www.cybermichigan.org.
Howard Prager, MBA ’80
As director of Lake Forest Corporate
Education, www.lfce.org, Howard works
frequently with corporations to createbusiness and leadership certificate programs. The firm recently won three awards
for its work with Simonton Windows ofWest Virginia. Last year it was recognized
as one of the top five leadership development programs in North America (alongwith Caterpillar, GE, 3M and Procter &Gamble). You can learn more about Howard and LFCE by contacting him at
hprager@lfgsm.edu.
Ted Haddad, ’BBA 82,
and Dan McEnroe, BBA ’85
co-founded Azimuth Capital Management
LLC in September 2004. Their independent
investment management and financial
advisory firm is in Bloomfield Hills, Michigan. It draws on the diverse expertise of
its principals to manage customized investment portfolios and deliver exceptional client service. The firm’s primary
focus is serving highnet-worthfamilies,
endowments
and institutions. Ted has
more than
20 years’
experiencein the investTed Haddad
ment management field,
previously as
managing
director at R.
H. Bluestein& Co. andthen as vicepresident ofGoldman,
Dan McEnroed i v i d e n d 49 f a l l 2 0 0 6

ACROSS THE BOARD

Quenching Thirstin the Hot
Hispanic Market‘‘T

he best part of life is recognizing an opportunity and capitalizing on it,” says Richard Ross,
MBA ’91, vice president of marketing at
Tampico Beverages. Tampico is the topselling refrigerated juice drink in the
United States (ACNielsen 2005) and the
top nonalcoholic, noncarbonated beveragein the Hispanic marketplace (Spectra 2005).
Ross’ path to becoming an expert in
Hispanic marketing began in childhood.
Due to his father’s job in the industrial
diamond business, his family traveled
frequently. This inspired a passion for
travel and learning about other cultures.
He was especially drawn to Latin culture,with its emphasis on family and food,
which mirrored his own values.
Today, Ross’ expertise in niche marketing is recognized throughout the field.
He contributed to the book Hispanic
Marketing —A Cultural Perspective and isan affiliate faculty member at the Centerfor the Study of Hispanic Marketing
Communication at Florida State University, the first program of its kind in the
United States.
Ross chose the Ross School because of
its team-based approach to learning andthe real-world exposure provided byalumni visits. One of his most memorable
experiences was a course analyzing how

business was conducted in the former
Soviet Union, which culminated in a twoweek class trip to Russia.
Tampico Beverages was among the firstbusinesses to capitalize on the growing
U.S. Hispanic market. Instead of promotions in large retail chains, Tampico choseto leverage the power of smaller, independent retailers and market at cultural festivals, where Tampico was often the only
beverage present.
Ross cites the 2000 census as a turning
point in multicultural marketing in the
United States. The census showed that theLatino population is the fastest-growing
segment of the U.S. population. The census results confirmed what Tampico knew
all along — that the Hispanic marketplace
affords a huge opportunity. Tampico now
faces more competition from large companies with big budgets.
However, Tampico will continue “toconcentrate on what we do best,” says
Ross. The firm has worked hard to build
customer loyalty and remains focused on
its core business. Initiatives include repackaging key products, expanding to
new channels and adding new productlines such as a vitamin-fortified Tampico
Plus drink and a line of zero-calorie flavored water. Tampico also is refining its
marketing strategy to target Hispanic

Sachs & Co. He also has served as a member of the Alumni Board of Governors andthe Corporate Advisory Board of the Ross
School and is a member of the CFA(Chartered Financial Analysts) Institute.
Dan’s experience includes executive positions at Penske Corp., including treasurerof Detroit Diesel Corp. and portfolio manager at JMB Institutional Realty Corp. He
previously served as a member of theboard of directors of Noble International
Ltd. and is also a CFA. Ted and Dan canbe reached by phone at 248.433.4000 orby e-mail: thaddad@azimuthcap.com anddmcenroe@azimuthcap.com.

Mark Bodnar, MBA ’83
a financial professional with AXA Advisors LLC in Cincinnati, has earned a certificate in retirement planning from theWharton School. Mark was one of only
50 AXA Advisors financial professionals
selected from more than 3,000 nationwide. He also holds the Certified Financial Planner, Chartered Financial Consultant and Certified Life Underwriterprofessional designations. He is active incommunity and professional organizations, including Summit Country Day
School, Cincinnati Association of Life
Underwriters, University of Michigan

d i v i d e n d 50 f a l l 2 0 0 6

consumers from a large number ofcountries and with various degrees ofacculturation.
The demand for Hispanic marketing
specialists continues to outweigh the
supply. The “future is bright for all,” says
Ross. For students and alumni interested
in multicultural or niche marketing, Ross
offers this advice: Focus on building soft
skills such as communication and teamwork, get out from behind the computerand learn from others in the field.
Adrienne Losh

Alumni Club, Financial Planning Association and the National Association of
Insurance and Finance Advisors. He resides in Cincinnati with his family andhas been with AXA Advisors since 1987.
You can reach Mark at Mark.Bodnar@
AXA-Advisors.com.
Andrew Dietz, BBA ’84
has just written The Last Folk Hero: A
True Story of Race and Art, Power andProfit (Ellis Lane Press, 2006). The book
discusses the ugliness behind the highstakes, big-egos world of folk and modern
art collecting. Andy reveals the powerCLASS NOTES
plays, subtle
racism andferocious
agenda setting revolving around
noted artists.
Currently
Andy isfounder andpresident of Creative Growth Group, amarketing consultancy. He has worked
for Ziff Davis Publishing, BellSouth andEgon Zehnder Global Executive SearchFirm. Andy has been married for 18 years
and has two daughters, ages 11 and4. He serves on theboard of directors of the AntiDefamation
League, Atlanta
College of Art andMuseum of Contemporary Art ofGeorgia. You canreach Andy at
adietz@bellsouth.net.
Vincent L. Barker, BBA ’85
has received a Center for Teaching Excellence Award at the University of Kansas.
He was one of 20 faculty members campuswide to receive the honor in 2006 based ona poll of KU students about faculty members’ positive influence as teachers. He is
an associate professor of strategic management and Scupin Research Fellow at
the University of Kansas School of Business. He lives in Lawrence, Kansas, withhis wife Kathy and sons Vinnie and Jake.
You can reach him at vbarker@ku.edu.
David Han, MBA ’85
is president and COO of Pangborn
Technovations of Ann Arbor, which hasdeveloped a processing device that thecompany claims is four times faster than
the fastest personal computer chip on themarket today. “Potentially, this could turna PC into a supercomputer at a low cost,”
says David. John Won Park, a professor
and scientist at Chungnam National University in South Korea, invented the chip.
David explains that the innovation involves the way in which the company uses
parallel processing.

Lesa Chittenden Lim, MBA ’86
has been named president of Lenox
Brands (Lenox, Dansk and Gorham).
Lenox Group Inc., established in 2005, isa U.S. market leader in quality tabletop
items, giftware and collectibles. Lesa formerly was president and general manager
of Honeywell’s special chemicals business.
After Honeywell, Lesa established her
own consulting business focused on postmerger integration while continuing topursue her fine arts degree. Preceding her
experience at Honeywell, she was with
McKinsey and Co., DuPont and Ford
Motor Co. At Lenox, Lesa is responsible
for the wholesale channel, product development, marketing and supply chain
management.
Timothy A. Wild, MBA ’89
has been selected by Gordon Page & Associates, America’s premier automobile
dealership business brokerage and consulting team,to establish a
new Ohio
office for thefirm. Tim
has worked
with auto
dealers acrossthe U.S. fornearly two
decades as a commercial banker, financial
consultant and intermediary. He has accomplished numerous dealership acquisitions and divestitures during his tenurewith Chrysler Financial, Comerica,
AmSouth, Bank One/Chase and Battelle
Financial Advisors. You can reach Tim
at twild@gordonpage.net.
Catherine Piner Farley, BBA ’92
joined Telemus Capital Partners LLC as
controller in April, where she is responsible for financial operations and reporting. Catherine previously was the CFO/
VP of Finance at H&R Block Financial
Advisors/OLDE. She is a CPA and resides
in Canton, Michigan. Telemus CapitalPartners is a private investment management firm, based in Southfield, offering
independent
financialadvisory
servicesfor highnet-worth
individuals,
families,
businessesd i v i d e n d 51 f a l l 2 0 0 6

and institutions. Catherine serves on theboard of directors of the Ross School ofBusiness Alumni Club of SoutheasternMichigan. You can reach her at cfarley0524@
yahoo.com.
Lee Meddin, MBA ’93
was included in a feature in the June issueof Treasury and Risk Management magazine titled “100 Most Influential People in
Finance.” Lee was listed with five othersin “Artists of the Deal,” including theCEOs of Merrill Lynch and Goldman
Sachs, as well as the founding partnerof KKR. A text version of the article canbe found at www.treasuryandrisk.com/
issues/2006_06/careers/536-1.html. You
can find some other recent articles featuring work Lee has been involved with atwww.ifc.org/structuredfinance. Lee lives
in Potomac, Maryland, with his wife Erika and 18-month-old son Samuel. You
can contact him at lmeddin@umich.edu.
Joseph Medlin, MBA ’93
is VP, Finance, IT & Administration for
Altea Therapeutics in Tucker, Georgia.
Joe reports that Altea Therapeutics has
been named a winner of a Georgia Biomedical Partnership Deal of the Yearaward for a venture-capital financingthat raised almost $33 million, the largest
VC deal in Georgia in 2005. In addition,
ground was broken early this year forTechnology Enterprise Park, a new
11-acre bioscience R&D park affiliatedwith Georgia Tech University. Altea
Therapeutics has signed on as the anchor
tenant. You can reach Joe at jmedlin@
alteatherapeutics.com.
Ben Zainea,
BBA ’96
was voted
into membershipin the law
firm Mika,
Meyers,Beckett &Jones PLC
in Grand Rapids, Michigan, where hespecializes in mergers and acquisitions,general business, franchise, banking andreal estate law. Ben, who received his
law degree from the University in 1999,
serves as president of the U-M Clubof Grand Rapids. You can reach Ben atbazinea@mmbjlaw.com.

CLASS NOTES
Amin Khakiani, MBA ’97

successfully launched his own independent portfolio management firm in 2004.
Using a pension fund/university endowment approach to investing, his portfolios
have broad diversification and risk management, and have returned in excess of
30 percent over the past two years. You
can reach him at amin@fpmcapital.com.

Craig S. Gilden, MBA ’00
recently finished co-authoring a bookon working in large organizations. “Ourbook, Create SPACE, helps people seeorganizations in a new way. Using terms
such as ‘friction,’ ‘heat’ and ‘useful work,’
we use physics to explain organizational
behavior,” says Craig. “Then we offer concrete methods and approaches for successwithin organizations.” You can reach
Craig at csgilden@umich.edu.

Playing to Win in
the Boardroom
and on the FieldR

igorous, fast-paced and cutthroat — a typical game for rugby
player Pam Kosanke, BBA ’00,
whose time off the field bares a striking
resemblance to her time on it.
Kosanke, a former captain and Academic All-American softball player for
the University of Michigan, is an accountsupervisor for Leo Burnett Advertisingin Chicago and is in her fifth year playing
in the backline for two U.S.A. women’s
rugby teams.
Balancing two full-time jobs comes
easily for Kosanke, who also found time
to coach rugby at a charter high schoolfor three years, teach spinning and playfor four other local and regional club
rugby teams.
“I’m in such an incredible situation,” says
Kosanke, who never thought she’d end
up in advertising, let alone playing rugby
after a long and rewarding softball career(friends introduced her to the sport.)“My laptop is with me all the time.
It’s not a nine-to-five job — I’m neverreally ‘off,’ ” says Kosanke, who adds thatit’s a lifestyle she has accepted.
The key to her juggling act was toestablish good relationships with hercolleagues and clients. “They’ve been very
understanding,” she says. “Teammates havecaught me working and checking e-mailat 3 a.m. when I’m on the road. I work on

d i v i d e n d 52 f a l l 2 0 0 6

Derek Flowers, MBA ’01
has been promoted to senior vice president and managing director of Wells
Fargo’s proprietary investment group.
He serves as manager of the 20-member
research team generating investments
involving high-yield and high-grade
corporate bonds and bank debt, credit
derivatives and equities. He and his wife
Katrina live in the San Francisco Bay
area with their two children, Kaitlyn andAustin. You can reach Derek at flowersd@
sbcglobal.net.

the plane, in the airport, wherever.”
She attributes a lot of her success —Kosanke’s on the fast track to becoming
a director — to the business school. “Thecollaborative environment and focus oncommunication skills helped prepare me
for where I am today,” she says.
Kosanke tries to make it back to Michigan for reunions and softball games asmuch as possible and says her athletic
experience here was the single most influential and challenging time of her life.
“You can’t escape the softball traditionat Michigan. It’s a family and you neverforget,” she says.
Although her schedule can be grueling, Kosanke has enjoyed the benefits ofcompeting internationally. “I have friends
all over the world, and anywhere I play, I
always have someone to stay with or comewatch my game.”
Despite her passion for rugby, Kosankehas her sights set on other ventures. “After
the World Cup this fall, it may be the culmination of my rugby career and I’ll haveto ask myself, ‘Is it time to move on?’”Pursuing a master’s degree, starting her
own business and coaching have all crossed
her mind. “I’d love to figure out a way tofeasibly mass produce healthful food as
an alternative to the 99-cent cheeseburger.
I’ve also thought about a nonprofit career
like fundraising for women’s athletics,”
she adds.
The future holds many possibilities for
Kosanke. For someone who can be seen
tackling an opponent in Hong Kong on
a Monday and presenting a competitive
analysis to a high-profile client in Chicago
on Tuesday, it’s fair to say this Ross
School grad is ready to take on — andconquer — whatever comes next.
Heather ThorneConsulting for
the Greater GoodW

hen Samantha Lasky, MBA’03, left Rochester, New York,after high school, she landedin the Steel City at the University of Pittsburgh and has been a Steelers fan eversince. Between her junior and senior
years, Lasky interned for Congressman
John LaFalce and fell in love with politics
and the “rush.” She joined a campaign
training program chaired by Senator Bill
Bradley, Governor Ann Richards andGovernor Richard Celeste.
Says Lasky, “My candidate didn’t win,
but I moved to D.C. anyway and founda temporary contractual job working fora trade association. When that ended, I
went to work for Baxter Healthcare andran its political action committee andgrassroots programs for two years. Then
Bill Bradley decided to run for president.”
When the Bradley campaign ended, Lasky
joined Ketchum Public Relations. But shesoon decided she needed more training
and applied for the MBA program.
She spent her MBA summer internshipat Medtronic doing marketing. “It was agreat job and great company, but it wasn’t
for me,” says Lasky, “So I started my job

search in public-private partnerships andworking with nonprofits. This was nota good time for those endeavors, but I
decided to move back to D.C. Rick (nowmy husband) and Tara Smith, MBA ’03,
who also moved to D.C., encouraged
me to make consulting my business. So
I named myself, started telling people I
was a consultant and have been busy eversince,” laughs Lasky, whose company canbe found at www.sjlgroup.com.
Lasky says the MBA program’s credo todevelop leaders with a global conscienceextends far beyond the walls of the school
and corporations. “With the economy
continuing to change, providing more
nonprofit opportunities to students is
another way the Ross School can adapt
to changing times and be a leader,” asserts
Lasky, who has worked with large andsmall nonprofits and foundations on issues such as mental health, education,
caregiving and the environment. Her
work with such organizations as College
Summit, the Ewing Marion Kauffman
Foundation, FamiliesUSA, the Rosalynn
Carter Institute for Caregiving and theWorld Resources Institute has led her toMatthew
V. Horning,
MBA ’01
was appointed treasurerof the city of
Ann Arboron February
1. Prior tothat, heserved as financial manager for the city’scommunity services area. He has been acity employee since his undergraduatedays in 1989, when he started as a cashierat the municipal golf courses. As treasurer, Matthew is responsible for collecting and disbursing tax and other revenue,
managing the city’s investment portfolio,banking and risk management activities.
He lives in the Ann Arbor area with hisdaughters Katherine and Anna.

Danielle E.
Shainbrown,
BBA ’01
has been
hired as an
associate with
Rupp Baase
Pfalzgraf
Cunningham& Coppola.
She is a litigation attorney who focuseson commercial litigation and insurance
defense. During law school at SUNY at
Buffalo, Danielle was a student law clerk
for the Hon. William M. Kretny in the
U.S. District Court for the Western District of New York and business editor for
the Buffalo Law Review.
Sima Patel, MBA ’03
originally from Scarsdale, New York, wasmarried to Timothy Mackey, BBA ’93,

d i v i d e n d 53 f a l l 2 0 0 6

Samantha Lasky, right, with former first lady
Rosalynn Carter.

ask tough questions and find innovative
solutions.
“As an alum, I help with recruiting andadmissions work in D.C. I also recently wasinvited to join the Ross Women’s Council
Networking Committee. When I chose
Michigan for grad school, I liked the students I met at recruiting events. They
made it clear that people with all types ofwork experience would be welcome andthat different backgrounds are valued. I
found this respect for diversity and theastounding camaraderie to hold true
throughout my entire stay at Michigan.”Fred Wessells

originally from St. Clair Shores, Michigan, in November 2005. Sima is a Manhattan-based strategy consultant with
Booz Allen Hamilton, working primarily
with the Department of Intelligence.
Timothy is a principal with the commercial real estate finance group of Banc ofAmerica Securities LLC in Manhattan.
They reside in Darien, Connecticut. You
can reach them at simap@umich.edu.
Renata Kosova, PhD ’04
was awarded the Gunnar Hedlund Awardfor the best PhD thesis in the field ofinternational business: Do Foreign Firms
Crowd Out Domestic Firms? Evidence
from the Czech Republic. Stockholm
School of Economics Professor Orjan
Solvell, chairman of the jury, stated, “Renata Kosova has written a novel piece inthe heart of the field of international business. The issues of competitive dynamics,

firm survival and foreign entry into adomestic market are central to international business research, particularly thefield of host country impact. Renata’s
work sheds new light onto these issues.”
A major strength of her dissertation is theoriginality of the topic and the extensive
empirical work involving more than 6,000
domestic firms over an eight-year period.
The award was presented at the European
International Business Academy annual

OBITUARIESHugh Mallick
MBA ’38
died in Silver Spring, Maryland, on March
27, 2005, at age 92. He was born to a railroad
family in Jamestown, North Dakota, andgraduated from Jamestown College in 1934.
His final MBA project was “A Method of
Isolating Sinusoidal Components in Economic Time Series,” which he translated
to “Margin of Error” using his wry senseof humor. Hugh worked for several companies in accounting and auditing positions
prior to World War II, including General
Mills and Montgomery Ward in Minnesota.
He worked during the war with the Army
Air Corps in its finance department, andthen attended the Armed Forces Industrial College before being stationed in Salt
Lake City, where he married Lucille Juckem,
whom he had met in Minnesota.
After the war, Hugh was employed with
the Federal Housing Administration (later
the Department of Housing and Urban
Development). He spent most of his career traveling the country reviewing HUD
projects, and he was extremely proud thathe spent time in every U.S. city with a population of more than 50,000. He retired in
1973. After retirement, Hugh and Lucillewere active gardeners and antique lovers,
and traveled extensively to visit family
and friends and see national historic andgeographic sites. He started doing extensive genealogical research in 1975 after
the death of his daughter in a parachuting
accident, and continued that for most of
the rest of his life.
Hugh had a lifelong fascination withtrains and traveled by rail whenever possible. One of his favorite trips was to theperiodic reunions of his Army group,

meeting in Oslo, Norway. You can reach
Renata at kosova@umich.edu.
John O. Renken, MBA ’04
is a partner with Hawkins Delafield &Hood LLP in Washington, D.C. You canreach John at jrenken@hawkins.com.
Colleen Newvine Tebeau, MBA ’05
relocated to New York to become deputy
director of U.S. newspaper markets
for the Associated Press. Her husband
John, who graduated from LSA in
1986, is an artist and graphic designer

which he continued to attend well into his
late eighties. Both he and his wife loved
staying in contact with people and filled
their lives with family and friends ofmany generations. Hugh was a founding
member of his parish church in Silver
Spring in 1961 and maintained his membership in the Knights of Columbus. He
and Lucille were sponsors of several
priests and Catholic educational programs. He was predeceased by Lucille in1994 and his son Gerald in 1995.

Louis Marr
MBA ’49
died of natural causes on March 6 in Ann
Arbor. Lou attended Milwaukee publicschools and graduated from the Milwaukee State Teacher’s College in 1938. He
became an elementary school teacher in
Grosse Pointe, Michigan, where he met
fellow teacher Harriett Beyer in 1939.
They were married in 1942 while he wasstationed in Blythe, California, for training in the U.S. Army Air Corps prior tohis deployment to England and France as
a communications officer in the 409th
Bomber Group. When he returned fromthe war in 1946, Lou and Harriet settled
in Ann Arbor, where he completed his
MBA and they raised five children.
Lou’s career took him daily by train to
Detroit, where he served on the staff ofthe Detroit Board of Commerce, then as
editor of the Detroiter magazine and as asenior legislative analyst until his retirement in 1978. He also continued a careerin the armed services by serving in the U.
S. Air Force National Guard, retiring as a
Lt. Colonel. He spent the rest of his life
devoutly involved with his family, golfing,reading and Michigan football and basketball. He is survived by his wife of 63 years,

d i v i d e n d 54 f a l l 2 0 0 6(see www.
tebeau.com).
Colleen is
enjoying
getting involved in the
Universityof Michigan
Entertainment Coalition’s New York chapter and in the Ross
Alumni Club of New York. You can reachColleen at cnewvine@gmail.com.
ASSOCIATED PRESS

CLASS NOTES

his daughter Laura Marr Baur, and sonsLouis, John and Joseph, as well as a large
extended family throughout several states.

Gary Lichtenstein
BBA ’00
died in October 2003, at age 24, after
courageously fighting glioblastoma, themost common and aggressive type ofbrain tumor. His family waited to makethe announcement until they created afoundation for glioblastoma research in
Gary’s memory called Voices Against
Brain Cancer (www.voicesagainstbraincancer.org). Gary, an entrepreneur andleader, was a well-respected, dedicatedand skilled trader at Wolverine Tradingin Chicago. “Gary redefined the words‘courage’ and ‘faith’ for all of us,” said his
brother Adam. “He embraced life with avigor that made all who knew him lookat their own lives from a different vantage
point. Instead of succumbing to hopelessness, he made each day feel like a gift.”
Glioblastoma attacks approximately
40,000 people each year. “Because of theurgent need for a cure,” explained Adam,“my family has created this foundation toadvance the progress toward a cure andsupport the medical research and clinical
trials critical to the eradication of thisdisease. The foundation also will help
fund the various wellness programs thatassist patients struggling with brain tumors and their families. It is our hope thatthe work of this foundation can continue
the legacy of courage, persistence anddetermination that Gary showed.”

XXXCVTVNJDIFEV"MVNOJ$PNNVOJUZ(&5$0//&$5&%
4 5":  $ 0 / / & $ 5 & % 
J.QBDU%VSJOHZPVSUJNFBTBTUVEFOUBUUIF
4UFQIFO.3PTT4DIPPMPG#VTJOFTT ZPVXFSFBOJOUFHSBMQBSUPGUIFCVTJOFTTTDIPPMDPNNVOJUZ
:PVTUJMMBSF

5PEBZ BTPOFPG  BMVNOJ ZPVSFNPSFJNQPSUBOUUIBOFWFSUPUIFGVUVSFPG
PVSHSFBUTDIPPM"OEUIFTDIPPMJUTFMGTUJMM
IBTBMPUUPPGGFSZPVQFSTPOBMMZBOE
QSPGFTTJPOBMMZ
0VSTFSWJDFT QSPHSBNT UPPMTBOEQSPEVDUTBSFEFTJHOFEUPIFMQZPVGPSHFBTUSPOH
DPOOFDUJPOXJUIUIF3PTT4DIPPMBOEJUT
JOnVFOUJBM JOUFSOBUJPOBMBMVNOJOFUXPSL
8FIPQFZPVMMNBLFUIBUDPOOFDUJPOTPPO7JTJUPVS8FCTJUFGPSEFUBJMT-JGFUJNF&NBJM"MVNOJ$BSFFS4FSWJDFT.JDIJHBO.BJM%JWJEFOE.BHB[JOF"MVNOJ$MVCT,SFTHF-JCSBSZ

3FVOJPOT&YFDVUJWF&EVDBUJPO%BZJOUIF-JGF
8JMMJOHUP$PVOTFM
3PTT.BSLFUQMBDF"-6./* 4 &3 7 * $ & 4-&"%*/(*/5)06()5"/%"$5*0/%FWFMPQNFOU"MVNOJ3FMBUJPOT4UFQIFO.3PTT4DIPPMPG#VTJOFTT6OJWFSTJUZPG.JDIJHBO
5BQQBO4USFFU 8ZMZ)BMM"OO"SCPS .*

1IPOF
'BY&NBJMBMVNOJ!VNJDIFEVAlumni Network Update
Keep your contact information up-to-date with the business school alumni community. Fill out the form
below and mail it in the attached envelope or update your information online at www.bus.umich.edu/Profile.
NAME & DEGREE(S)BUSINESS INFORMATION

Name

Title

Name while at School

Company

Degree 1 & Year(s)Address Line 1

Degree 2 & Year(s)Address Line 2
City, State, Zip

LE A DINGINHOME INFORMATION

Phone

Address Line 1

Fax

Address Line 2

I consent to posting the information I have provided abovein the Alumni Directory, on my password-protected class
Web site (if one exists) and in Dividend alumni magazine.

City, State, Zip
Phone
Preferred E-mailE-mail contact information
Business contact information
Home contact information

GET CONNECTED
Whether you’re interested inseeking a leadership position
with the Ross School ofBusiness or available for justa few hours a month, wehave an opportunity for you
to get connected!

I am willing to advise the following groups
regarding the business school experience
and/or career opportunities. Check all that
apply. Please note your e-mail, home andbusiness contact information may bereleased for this purpose.

Prospective Students
Current Students (All Degrees)
Alumni
Please note your industry/function

DIVIDEND CLASS NOTES
Send us your class notes, personal updates, promotions and photographs to Dividend@bus.umich.edu, or include below
and fax to 734.647.2401. We look forward to hearing from you!

T H OU GHTAND

AC TIONHey!
You don’t have to yell.

To stay in touch with yourRoss School classmates,
just respond in one of the fastand easy ways listed below.

1. Mail

2. Fax

3. E-mailComplete the form on
the previous page andmail in the envelope
included in this magazine.

You can also fax theform to 734.647.2401.

Our address is
Dividend@bus.umich.edu.

701 Tappan Street
Ann Arbor, Michigan 48109-1234

Widen Your World
September 27

NONPROFITORGANIZATION
U.S. POSTAGE
PAID
ANN ARBOR, MI
PERMIT NO. 144

Join us Wednesday, September 27, as we
unite alumni across the globe in celebrating
the first annual Worldwide Club Day. The
event, designed to welcome new alumni totheir communities, will include networking,student recruiting, community service
projects, career development workshops,
alumni seminars and faculty lectures. Findout more about activities in your area byvisiting www.bus.umich.edu/ClubDay.