C O R N E L L

J O H N S O N AT C O R N E L L U N I V E R S I T Y

F A L L 2 0 1 0

Taming the Bear Will Dodd-Frank put paid to more

market meltdowns?

Game ChangersAlumni facilitating economic

development in emerging economies

Getting More GlobalJohnson’s new Emerging Markets Institute

Profile in Leadership: A Brand for All Seasons

Godiva CEO Jim Goldman, MBA ’85

Visit www.eship.cornell.edu/ActiVities/celebrAtion/2011 to leArn more!

the

Join more than 900 alumni, students, faculty, and staff for two days of on-campus events including:• Symposiaonawide

range of topics• Businessidea

competitionfinals• Networkingopportunities ...and much more!

“The annual Entrepreneurship@Cornell Conference exemplifiesourunique,integratedapproachtoentrepreneurship.”DavidJ.Skorton•CornellUniversityPresident

ShaiEynavPho

tograp

hy

celebrAtionentrepreneurship@cornell

A two-dAY conFerence

2011co

rnel

l un

iV

ersitY, ithAcA, nY, April 14-15

April 14–15, 2011

sAVe dAte

Scenes from Celebration 2010

“Finding and fostering the entrepreneurial spirit in every Cornell participant in every college, every field, and every stage of life.”

www.eship.cornell.edu

CorNEllENtrEPrENEUrShiPCoNfErENCE

w w w.johnson.cor nell .edu

Wearecommittedtocontinuallyimprovingthecurriculumin

allofourprograms,asourstrategicplanstipulates.ProfessorBeta

Mannixisleadinganefforttoimprove,update,andbuildonour

curriculumforourPalisades-basedExecutiveMBAprogram,and

weplantoreevaluatetheCornell-Queen’sEMBAcurriculumover

thecomingyear.

Thissemesterwehavewelcomedanimpressivearrayof

guestspeakerstotheschool,includingJohnC.Bogle,

founderoftheVanguardGroup,Inc.;formerU.S.

TreasurySecretaryHenryM.Paulsen;AndrewRoss

Sorkin,authorofthebestseller,Too Big to Fail;

ScotSafon,executivevicepresidentofCNN

WorldwideandgeneralmanageroftheHLN

network;andWilliamC.Dudley,presidentof

theNewYorkFederalReserveBank.

Earlyindicationsarethatthejobout-

lookfor2011willbebetterthan2010,which

wasbetterthan2009.Whilewe’reclimbing

backup,weknowitwillstillbeadifficult

yearforplacement,andwestillneedyourhelp.

OurClassof’11studentsareoutstanding,and

thehighcaliberofsummerinternshipstheycom-

pletedmakesthemwell-preparedtobeeffectivein

theworkplace.

Asalways,Iappreciateyourhelpinmany

ways.Pleasestayintouchwithnewsaboutyourself

andyourideasforus,andbestwishesforhealth

andsuccess.

L. Joseph Thomas

Anne and Elmer Lindseth Dean

Shaping our future and reaffirming our strengthsBuildingonthesuccessandoutstandingreputationofourexisting

centersofresearchandeducation—theParkerCenterforInvest-

mentResearchandtheCenterforSustainableGlobalEnterprise—

Iampleasedtoannouncethatthisfallweestablishedtwonew

entities:theEmergingMarketsInstituteandtheEntrepreneurship

andInnovationInstitute.Wehavebeenworkinginbothofthese

areasforsometime.Creatingtheseinstitutesnowreaffirmsour

achievementsandsignalsourcommitmenttobringtogetherpre-

eminentpractitionersandacademicsandexpandoureducational

andresearchprograms.

ThenewEmergingMarketsInstituteunderscoresourresolve

tobecomemoreglobalinfocusandoutlook,toeducatestudents

abouttheglobalnatureofbusiness,andtoenlargeourfootprint

aroundtheworld.Readmoreabouthowitcameabout,as

wellasitsgoals,mission,andstrategyinthisissue(seep.

29).Wearegratefulfortheverygeneroussupportfromour

alumni,includingclassmatesBobStaley’58,MBA’59,and

AlbertE.Suter’57,MBA’59,bothretiredexecutives

atEmerson,whowereamongthefirsttofundour

globalbusinessefforts.Morerecently,wereceived

significantsupportfromKyung-BaeSuh,

MBA’87,presidentandCEOofSeoul-based

AmorePacificCorp.,whofundedafacultychair

inglobalbusiness.

Asyoumayalreadybeaware—fromoneof

ourenewsletters,ourWebsite,orouradsinthe

press—wehaveanewlogoandanewlook.

Buildingonresearchforthestrategicplan,plus

anadditional,year-longresearcheffort(involv-

inginputfromthousandsofpotentialstudents,

students,alumni,recruiters,faculty,andstaffas

wellasextensivemarketresearch),weupdatedour

brand,maintainingourthreepillars—performance

learning,collaborativeenvironment,Cornellconnec-

tions—becauseourresearchvalidatedthese.While

givingthe“Johnson”namemoreprominence,we

continuetostronglyconnectJohnsonwithCornell.

Ournewpositionstatementisbasedonwhatwehear

backfromemployers:Johnsongraduatesknowhow

toharnessthecollectivestrengthofotherstocreate

extraordinaryresults.Learnmoreaboutournewbrand

onpage6andonourWebsite.

Creating the Emerging Markets Institute and the Entrepreneurship and Innovation Institute reaffirms our achievements and signals our commitment to bring together preeminent practitioners and academics and expand our educational and research programs.

Ph

oto

: R

ob

ert

Ba

rke

r, U

niv

ers

ity

Ph

oto

F R O M

Taming the BearWillDodd-Frankputpaidtomore

marketmeltdowns?

Game Changers Alumnifacilitatingeconomicdevelopmentin

emergingeconomies.

C O R N E L L

FALL 2010 VOL. 25, NO. 1

Getting More Global, with a Fresh New FocusJohnson’snewEmergingMarketsInstitute

strengthensitspositionasapowerplayer

amongtopschoolsofmanagement.

29

18

23

Cornell Enterprise onlinewww.johnson.cornell.edu/alumni/enterprise

Profile in Leadership: A Brand for All Seasons JimGoldman,MBA’85,Presidentand

CEOofGodivaChocolatier,iscreating

newmarkets,newproducts,andnew

distributionchannelsforthecompany’s

luxurychocolates.

Departments

COVER ILLUSTRATION: James Steinberg

From the Dean 1Shapingourfutureandreaffirmingourstrengths

Enterprise Online 4WebExclusivestories,videos,andpodcasts

Intellectual Capital 5GuptanamedassociatedeanTwonewinstitutesannouncedNewfaculty

Johnson: Our Brand 6AnupdatetoJohnson’sbrandstrategy,promise,andlook

Business Roundtable 8SteveKaplanUnplugged:unveilingstrategiesforsuccess

Newsmakers 9ThevalueofanMBATrickleup,tax,andgetoveritTheMBAadmissionsgame

Job Talk 10Networkinginadigitalage

Vantage Point 12RobertH.Frank:Incomeinequality

Startups 14TheCornellVentureChallenge

Startup Snapshots VahaSolarandGreenConsulting BoldAspirations

Thought Leadership@Johnson 17VrindaKadiyali:Thehiddencostof9/11

Class Notes 37 Alumni Profiles Dan Tobin, MPA ’74, MS ’76, PhD ’77 Groomingthenextgenerationofleaders

Candace Davies ’00, MBA ’06 Longdistancegiving

Hilary Cox Maxson, MBA ’05 Growingthegrid

Keigo Kuroda, MBA ’00 Adaptingtosucceed

34

4 cor nell enter pr ise • fa ll 2010

FALL 2010: Vol. 25, No. 1Cornell EnterpriseispublishedtwiceayearbytheSamuelCurtisJohnsonGraduateSchoolofManagementatCornellUniversity.

Anne and Elmer Lindseth Dean L.JosephThomas

EditorJaniceEndresen,MA’85

Staff WritersShannonDortchNicolaPytell

Class Notes and Copy EditorTanisFurst,PhD’94

DesignWarkulwizDesignAssociates

We welcome feedback from readers.

Address letters to:

Cornell EnterpriseJohnsonatCornellUniversity130E.SenecaStreet,Suite400Ithaca,N.Y.14850-4353

Phone:800.847.2082;607.255.3096

Fax:607.255.1858

E-mail:Enterprise@johnson.cornell.edu

Lettersmaybeeditedforclarityandlength.

Cornell Enterprise online www.johnson.cornell.edu/alumni/enterprise

©2010JohnsonatCornellUniversityISSN07416989

Printedgreenonrecycledstockwith30%post-consumerfiber.

enterpriseonlineC O R N E L L

Web ExclusivesLook for these stories, videos, and

podcasts online at www.johnson.cornell.

edu/alumni/enterprise

The birth of “customer 2.0” and the death of marketing as we know it

Inthisarticle,Pelin

Thorogood’90,MEng

’91,MBA’94,andco-

authorRandSchulman

showhowdramatically

onlinemarketingand

socialmediahave

changedthemarket-

inglandscape.From

boardroomsandgaragestartupstobusiness

schoollecturehalls,anew,billion-dollar

questionnowreverberates:“Ismarketingas

weknowitreallydead?”Theanswer:The

morethingschange,themorethingsstay

thesame.Marketingisstillaboutknowing

youraudience.However,thetoolsand

tacticsweemploytogettoknowandengage

ourtargetcustomerhaveindeedchanged—

ashashowwedefineandmeasuresuccess.

Shell HR Chief on the importance of human capital

WhenHughMitchell,

chiefhumanresources

andcorporateofficer

forRoyalDutchShell,

visitedJohnsonSept.

16,2010,speakingatBarnesHallon“The

GlobalEnergyChallenge:TheImportance

ofHumanCapital,”healsosatdownfora

videotapedinterview.Inashortvideothat

highlightsaselectionofexcerptstakenfrom

theinterview,Mitchellshareshisviewson

offeringaneffectivevaluepropositionto

retainhigh-performingemployees,howto

attractgenerationsXandY,andwhatit

takestobeasuccessfulHRleader.Youcan

alsoviewfull-lengthvideosofhispresenta-

tion,andotherclipsoftheinterview.

Check out Johnson’s new Web site

Johnson’snewlyredesignedWebsitehasbeen

craftedtocreateaninviting,user-friendly,

interactiveplacewherevisitorscanfindand

learneverythingtheywishtoknowaboutthe

uniqueaspectsofourschoolanditsculture.

Browsethroughthesite,clickaround,and

takeinallthenewfeaturedaspects.

Trading in a high frequency world: the flash crash and beyond

MaureenO’Hara,RobertW.PurcellProfessor

ofManagementandprofessoroffinance,

sharedherperspectiveontheramificationsof

theMay6,2010“flashcrash”inapresentation

toFingerLakesareaalumniinNovember.

Marketing in the digital age

Inadynamickeynotespeechthatkicked

offJohnson’sfirst“BattleoftheBrands”

competition,ScotSafon,MBA’84,executive

vicepresidentofCNNWorldwideandgen-

eralmanageroftheHLNnetwork,pointed

outthatinthedigitalage,anyonecanbea

marketerandthatoneofCNN.com’smost

successfulmarketingcampaignlastyear

resultedinatweetfromLadyGaga.

An interview with Robert Frank on income inequality

Inthisvideotaped

interview,Robert

H.Frank,Henrietta

JohnsonLouisProfes-

sorofManagement

andprofessorofeconomicsatJohnson,

expandsontheideashepresentedon

incomeinequalityinhisNew York Times

“EconomicScene”columninOctober

(reprintedonpage16ofthisissue).

5w w w.johnson.cor nell .edu

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

Sachin Gupta named Associate DeanSachinGupta,theHenrietta

JohnsonLouisProfessorof

Managementandprofessor

ofmarketing,wasappointed

associatedeanforacademic

affairseffectiveJuly1,2010.

Thepostwasheldforthree

yearsbyMarkNelson,the

EleanoraandGeorgeLandew

ProfessorofManagementand

professorofaccounting.“MarkNelsonservedtheschooladmirably

asassociatedean,butwantedtoreturntothefacultyfull-time—I

reluctantlyagreed,”saidDeanJoeThomas.“Iamverypleased

thatSachinGuptahasagreedtoserveinthiscapacity,andIenjoy

workingwithhimaswecontinuetoadvanceteaching,research,and

thoughtleadershipatJohnson.”GuptajoinedthefacultyatJohnson

inJuly2000,andwasnamedtotheHenriettaJohnsonLouischair

in2007.HeservesaschairoftheFacultyPolicyCommittee,and

isarecipientofJohnson’sFacultyResearchAward(2006-07),the

AppleAwardforTeachingExcellence(2007),andtheStephen

RussellDistinguishedTeachingAward(2009).

Johnson announces two new institutes Thisfall,JohnsonadvanceditsStrategicPlanbyapprovingtwonew

institutesfortheschool.TheEmergingMarketsInstitute(seestory,

p.29)willfocusonexpandingourglobaleducation,outreach,and

research,andtheEntrepreneurshipandInnovationInstitutewill

furthertheschool’sstrategyinthegrowingspaceofentrepreneurial

educationandtheuniquechallengesofcommercializinginnova-

tions.TheseinstituteswillsupportgoalsJohnsonhasprioritized

toexpandoncurrentprojects,whileenablinggenerationofwhat

isexpectedtobegame-changingandparadigm-shiftingresearch,

businessmodels,andthoughtleadershipinthesevitalareasof

today’seconomy.Lookformorenewsaboutthesenewinstitutesin

comingmonths.

Welcome new Johnson facultyEugenia C. Wu, Assistant Professor of Marketing

EugeniaWu’sresearchfocuses

onhowouremotionsandmoti-

vationsaffectthewayconsum-

ersbehave.Inarecentproject,

sheexploredhowsocietal

beliefsaboutemotioncan

motivateconsumerstoselect

productstheywouldnototh-

erwisechoosetoconsume.In

anotherproject,sheexamined

howtheneedforself-discoveryleadsindividualstoseekout,but

notnecessarilyaccept,thefeedbacktheyreceiveandtheimportant

consequencesthishasforsubsequentproductchoice.Wureceived

herPhDfromDukeUniversity.SheholdsaBSineconomicsfrom

theWhartonSchoolattheUniversityofPennsylvaniaandaBAin

psychologyfromtheCollegeofArtsandSciencesattheUniversity

ofPennsylvania.

Pengqin Gao, Assistant Professor of FinancePengqinGao’sresearch

interestsareintheareasof

assetpricing,investments,and

financialeconometrics.His

currentresearchfocusesonthe

impactofcross-sectionalinfor-

mationtransferonsecurity

pricesandtheapplicationsof

characteristic-basedcovari-

ancemeasuresonportfolio

optimizationandfirms’expectedreturn.Histeachinginterestsare

infinancialderivatives,portfoliostrategyandinvestments,and

financialeconometrics.GaoearnedhisPhDandMBAfromthe

UniversityofChicago’sBoothSchoolofBusiness,andheworked

asaresearchconsultantforUBSO’ConnorQuantitativeStrate-

giesinChicago.

Co

rne

ll Un

ivers

ity Ph

oto

Co

rne

ll Un

ivers

ity Ph

oto

Co

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ll Un

ivers

ity Ph

oto

6 cor nell enter pr ise • fa ll 2010

Johnson and Cornell are strong brands and great, powerful names that have existed

for years. to support our school’s strategic Plan, this branding initiative has focused on updating the brand

strategy for Johnson in light of the competitive environment and changing dynamics in the Mba and executive

education marketplace.

our brand is an articulation of who we are and what we do best. It is a signal and a promise to a wide array

of audiences. by virtue of our proud connection to Cornell University, we have a strong endorser brand which

is embraced wholeheartedly in our new brand strategy. In the Johnson master brand, however, which has not

been well-defined, we saw an opportunity to differentiate ourselves, while staying authentic to the experience

we provide.

the brand positioning statement, support statements, and logo were an outgrowth of extensive research

throughout a two-year timeframe, beginning with the strategic Plan. the research included the input of

thousands of students, potential students, alumni, recruiters, faculty, and staff as well as extensive market

research of the top fifteen business schools in the country.

research strategies included four quantitative studies, the most recent being a 2010 student survey with a

sample of 438 students and accepted but not-matriculated students; hundreds of interviews; and more than twelve

focus groups to develop and test positioning strategies, names logos and advertising messages. the results of this

research have culminated in the updated brand positioning, name, and logo that make up our brand.

Johnson: Our Brand

Updated Johnson brand promise Promise:Johnsongraduatesknowhowtoharnessthecollective

strengthofotherstocreateextraordinaryresults.

Support statement: Morethanever,leadersmustbecapableof

sustaining,mining,andgettingthemostoutofanorganization.

Throughcollaborativelearningandimmersioninreal-world

challenges,Johnsonstudentsgainessentialbusinessskillsplusdirect

experienceinleveragingthetalentandknowledgeofothers,yielding

moreideas,morepossibilities,morethoughtful,well-roundedsolu-

tionsand,ultimately,extraordinaryresults.

WhenemployershireaJohnsongraduate,theygetmorethan

oneperson.Theygetthestrengthofmany.

Updated Johnson logo Weareanamedinstitution—theSamuelCurtisJohnsonGraduate

SchoolofManagementatCornellUniversity.Thishasnotandwill

notchange.AndwhilewestillusetheCornellUniversityinsignia

andtheCornellUniversitynameinthenewlogo,justasbefore,

wehavegiventhe“Johnson”namemoreprominenceasafirststep

towardenhancingnameawarenessandrecognition.Thecampaign

pieceontheoppositepageshowsoffournewlogoandhowit

integrateswithourcurrentadvertising.

How you can help make Johnson truly our brandYoucanhelpbymakinganefforttounderstandthebrandposition-

inganditssupportstatements,andadoptingitaspartofyourcom-

municationswithotherswhentalkingaboutyourexperienceshere

atJohnson.Wehavecreatedacampaignmicro-siteatwww.johnson.

cornell.edu/brandthatcontainsinformationonthedevelopment

andimplementationofthenewbrandstrategy.Visitthebrandsite

oremailtheJohnsonmarketingteamatbrand@johnson.cornell.edu

withanyquestionsyoumayhave.

I have a voice.

We speak as one.

Students, alumni, faculty, staff, administration — together, we embody the Johnson brand. Our actions and attitudes make the brand ring true for everyone who interacts with the school.

With the recent repositioning of our brand and the unveiling of the new Johnson logo, it’s important that we all speak about Johnson with a united voice, so the brand can become even stronger. To watch informational videos about the repositioning, learn about the reasons behind it, and see examples of how the brand lives in the marketplace, visit johnson.cornell.edu/brand.

8 cor nell enter pr ise • fa ll 2010

Sorkin discusses Too Big to Fail New York Timesfinancereporterandcolumnist,

AndrewRossSorkin’99,aleadinginterpreterof

WallStreetandcorporateAmericaandauthorof

theaward-winningbest-sellerToo Big to Fail: The

Inside Story of How Wall Street and Washington

Fought to Save the Financial System — and Them-

selves(2009),returnedtocampusOct.20fora

booksigning,todeliverapubliclecture,andto

participateinapaneldiscussionmoderatedbyDean

JoeThomas.OtherpanelistsincludedProfessorand

JohnsonDeanEmeritusRobertSwieringa,Eswar

Prasad,theTolaniSeniorProfessorofTradePolicy;

andSharonTennyson,associateprofessorofpolicy

analysisandmanagement.Whenaskedaboutthemainlessons

learnedfromtheeconomicdebaclehecoversinhisbook,Sorkin

responded:“Weneedtohaveanadultconversationaboutour

costsandrevenues.It’saconversationnoonewantstohave.“

Swieringaagreed,saying:“Itdoesn’tlooklikewehavethepoliti-

calresolvetodealwiththeseissues.”Sorkin’sbookisthefirst

true,behind-the-scenes,moment-by-momentaccountofhowthe

financialcrisisdevelopedintoaglobaltsunami.

Business RoundtableSteve Kaplan Unplugged: unveiling strategies for successBy Maria Minsker ’13

“Bigelephants”makeorbreakcompanies.

Baggingbigelephants—orhugeclientsthat

canlaunchacompany“intothestratosphere”

—isSteveKaplan’sspecialty,andhe’seager

tosharehissuccessstrategieswiththerestof

theworld.VisitingonhisBag the Elephant

UnpluggedUniversityTour,Kaplanex-

plainedwhyhebeganhisowncompany,and

sharedtechniquesforseekingoutopportuni-

tiesand“bagging”largeclients.

Atage22,hedecidedthat“beingalittle

fishinabigcompany”wasnotforhim,and

sohedecidedtostarthis

own.Asmallmarketing

companyatthetime,

BountySCAWorldwide

soldtacticalmarketing

strategieslikeproduct

samplingandcoupons.

Nowmakingover$250

millioninsaleswith

officesin14countries,

thecompanyisoneof

manythathehelped

makesuccessful.

Oneofthekeysto

hissuccess,Kaplansays,

isseekingoutopportunity.Whiletrying

tolandarelativelysmalldealwithProctor

&Gamble,Kaplancameacrosssomething

unexpected.“Iwas

meetingwithaguyto

talkaboutpotentially

workingonthePantene

brand,butwhenwemet

Icouldsensehewas

havingahorribleday.

Hewasworkingona

nationwidecampaign

andneededtoimport80

millionsilkbagsfrom

China,andcouldn’t

evenget30,000ofthem

pastcustomsinLos

Angeles,”heexplained.

Ineffortstoearnthepotentialclient’strust,

Kaplandecidedto“seewhathecoulddo.”

Kaplan’scompanyatthetimewasnota

bigimporter,shippingmostlybetweenNew

YorkCityandSyracuse.Nevertheless,after

“afewphonecalls,”hewasabletoarrange

forsomeonetogoandpickupthe30,000

bagsinLosAngeles.WhenKaplancalled

hiscontactatP&Gwithgoodnewsabout

hisbags,hegotthefastestcallbackhehad

received:“Thisguycalledmebackwithin

10seconds,”hesaid,“andtoldmetosend

himaninvoiceforasmuchasIwanted.But

allIwantedwasashotatthe80-million-bag

campaign.Andhegaveittome.”

Kaplanreflectsthathecouldhavejust

attendedthemeeting,pitchedhisoriginal

ideasforthesmallcampaignhewasinter-

estedin,andwalkedaway.Noticinganop-

portunityforgreatersuccess,takingarisk,

and“comingthrough”madethedifference.

WithP&Gbehindhim,Kaplansayshefelt

likehe“wascapableofdoinganything.”

Despitethecurrenteconomicclimate,

Kaplanstillfirmlybelievesopportunityis

everywhere—youjusthavetolookforit.

Steve Kaplan

Andrew Ross Sorkin ’99

9w w w.johnson.cor nell .edu

Professor Stuart Hart

Trickle up, tax, and get over itTheeconomicdownturnand

proposedsolutionshaveplaced

severalofJohnson’sowninthe

mediaspotlight.In“Trickle

Up!”(The New York Times,

“Green”blog,Aug.3),Profes-

sor Stuart Hartsuggeststhat

economicsolutionsmustbegin

atthebaseofthepyramid.

Hartarguesthatworkingin

low-incomemarketssuchasIndiaandChinacanforceinnovators

andentrepreneurstodrivecomplexityandcostfromtheirproducts

andthebusinessmodelstheycreatetosellthem.Hesaysthatonce

thesenewsolutionsaretestedandproveninthepoorestcommuni-

ties,thetheorygoes,manycan“trickleup”tothedevelopedworld,

wherefeaturescanbeaddedformoreaffluentmarkets.

“USeconomistsaysrisingexecutivepaygaphasspawned

expenditurecascadesthroughouttheeconomy,”anarticlepostedby

Ireland’sleadingeconomicpublication(FinFactsIreland,Aug.24,

2010),citesProfessor Robert Frank’sargumentthatinorderto

assistthemiddleclassandhelpthemmakeendsmeet,theexpen-

diturecascadescausedbytherisingexecutivepaygap—starting

withincreasedspendingonhousing—mustbeclosed,andthat

consumptiontaxesratherthanarbitrarylimitswouldbeamore

effectivemechanismtoclosethepaygap.“You’reRich.GetOver

it”(Newsweek,Sept.16)citesFrank’sresearchonhowpeopleassess

theirwell-being—“notsomuchonhowmuchtheymakeand

consume,butonhowmuchtheymakeandconsumecomparedwith

theirneighbors.”

The value of an MBAIn“TheNextGeneration,”thecoverfeatureinHispanic Executive

(September/October2010),MichaelJurado,MBA’11,wasoneof

fourMBAstudentsenrolledindifferentprogramswhospoketo

therelevanceofhisMBAexperienceinarichQ&A.Thestory

connectedhisbackgroundandpersonalhistoryasaHispanic

Americanandwhyhebelievesitissoimportanttogiveback.About

hischoicetoattendJohnson’sgeneralmanagementprogram,Jurado

said,“IknewIwantedtohaveadifferentexperience;Iwantedtogo

toasmallerschoolwhereIcouldreallygettoknowmyclassmates

onapersonallevel,andtheschoolwasaperfectfitforme.…[The]

generalmanagement

degree…enablesoneto

lookattheworldthrough

adifferentlensandwill

helppositionmeasaleader

regardlessofwhethermy

workisinthefor-profitor

thenot-for-profitsector.”

Whenaskedhow

hisJohnsonexperience

informedhisop/ed,“U.S.

can’taffordtowaitto

switchtocleanenergyany

longer”(Detroit Free Press,

Aug.11),SteveMaddox,MBA’10,said:“MytimeatJohnsongave

methetoolsetstoanalyzeopportunities.Iunderstandthatthecrux

ofthecarbontradeargumentisreallyabasic‘makevs.buy’decision

thatIlearnedinCoreEconomics(andlaterdrivenhomebymy

classesanddiscussionswithProfessorBenHo).IcametoJohnson

lookingforthetoolstoprove(ordisprove)whatmyguttoldmewas

therightdecision,andIgotthem.”

The MBA admissions gameWhentheadmissionsseasonrampsup,thepressreachesoutto

gleaneveryb-school’sstrategyforattractingstudents.It’sahighly

competitivegame,andonethatcanforceanobsessionwith

numbersanddataversusthedeeperreasonsthatdrivestudentsto

selecttheschoolstheydo.Thisyear,whenBusinessWeekspokewith

Johnson’sRandall Sawyer,assistantdeanofAdmissions,Financial

Aid,andInclusion(AdmissionsQ&A,BloombergBusinessWeek,

Aug.5),heoutlinedhowheandhisteamzeroinonstudentswho

arebothintellectuallycuriousandpassionateaboutJohnson,quali-

tiesheviewsasiscriticaltoastudent’slong-termsuccess.

Johnson’seffortsinattractingwomenwerecitedin“33%Female

StudentsinB-SchoolsAbroad,”(Economic Times of London,Sept.

19),notingthatJohnson“includespartnershipstoreachoutto

womenandencouragesthemtoapply.TheschoolhasaWomen’s

PowerLunchforcurrentstudentstonetworkwitheachother,

femalefaculty,andprominentalumnae,andpartnerswiththe

JohnsonSchoolWomen’sManagementCouncilandothergraduate

professionalprogrammes.”

Newsmakers

10 cor nell enter pr ise • fa ll 2010

Networking in a digital ageHowever high-tech your tools, remember: your network is peopleBy Irene Kim

RememberBobfromAccountsPayableatyourfirstjoboutof

school?Niceguy,butyoudidn’thavemuchincommon,andgot

tiredofupdatinghisphonenumberinyourlittleblackbook.Soyou

losttouch.Well,recentlyyourememberedBob,andlookedhimup

onFacebookorLinkedIn.Turnsouthe’dworkedhiswayupinthe

IRSandhadbecomedeanofaprominentbusinessschool.Soyou

droppedhimaline,andreconnected.

That’sthepowerofdigitalnetworking.Whereasinthepast

youmighthavelosttouchwithBobforever—yourlittleblack

bookcantakeonlysomuchLiquidPaper,anditwouldweighfifty

poundsifyoukepteveryone’scontactinformation—younowcan

stayconnectedwitheveryoneyoulike,nomatterhowmuchyou

changejobs.

Asafirststeptoonlinenetworking,StephenCalk,seniorassociate

directorofJohnson’sCareerManagementCenter,suggestsaLinkedIn

account.Youcanbuildyournetworkfairlyeasily(mostofyour

contactsareprobablyalreadyinthedatabase),andseeyourconnec-

tions’contactandcompanyinformationandrésumé.Keepingthe

informationcurrentispainless,becauseBobupdateshisowndata.

LinkedInalsoallowsyoutoseeallyourcontacts’networks.So,

ifyouhave100connections,andeachofthemhas100connec-

tions,younowcanseethenameandcompanyinformationof

10,000people.Ofcourse,thatdoesn’tmeanyouhave10,000

friendswillingtofindyouajob.Butitdoesopenupawholenew

worldofpossibilities.

Whilethetoolsweusefornetworkingmaychange,saysCalk,

theprinciplesremainthesame.“Allnetworking,allrelationship

building,isandwillalwaysbeanalog,”saysCalk.“Technology

simplygivesusamoreefficientmechanismforkeepingtheanalog

worldwarm.”

Remember:Eachofthosenamesrepresentsanindividualwho

wantstoberespected,takenseriously,andbefriended(notjustin

theFacebookway).Anetworkisacollectionofpeople,andisonly

asgoodastheeffortyouputintocultivatingthosepeople.It’sno

coincidencethattoday’snetworkingbooksrepeatthesametenets

expoundedbyDaleCarnegie80yearsago:Listentoothers,make

themfeelimportant,thinkfromtheirperspective,andgivemore

thanyoutake.

Keepinginmindtheage-oldmaximsofnetworkingandcultivat-

ingrelationshipswithpeople,Calkoffersafewpointers:

•Keep your nose clean.Youprobablyhaven’tpostedphotosof

yourselfdoingbodyshotsduringhappyhour.Butbeawarethat

aprospectiveemployerorclientmightfindanythingaboutyou

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—politicalcommentaries,off-colorposts.Ensurethatsomeone

doingasearchonyournamewillfindasolidrésuméandinforma-

tionthatreflectswellonyou.

•Connect.CalktellsincomingMBAstudentstoselecttencon-

tactsfromhisnetwork,tosomeofwhomhewillintroducethem.

ManyJohnsonalumniareoneortwodegreesofseparationfrom

high-profileleaderssuchasWarrenBuffett,atmost;bytaking

advantageofacontact’snetwork,youcansignificantlyreducethe

distancebetweenyourselfandsomeoneyou’dliketodealwith.

•Don’t ask for a job.Don’tassumeanycontactsyoucultivatewill

createaspotforyouattheircompany“becauseyou’rebrilliant

andwenttoCornell,”saysCalk.“Theonlywayyou’regoingto

findaspotattheircompanyisifthey’reimpressedwithyouand

haveaspotalready—soyouwanttogetontheradar.”

•Ask not what your network can do for you. “Givingbegets

moregiving,”wroteKeithFerrazziinNever Eat Alone.“WhenI

calltotalktoalumniandothercontacts,Imakesuretheyknow

it’snotbecauseIwanttohoundthemforthenexttenyears,”says

Calk.“It’sbecause,ifIcanhelpthemwithanything—research

fromtheschool,brilliantinterns—Iwillmakeithappen.”

•Make your network reflect you.Sure,everyone’sheardofwiz-

ardswhocanrememberthespouses’namesof50,000contacts,

butCalkdoesn’tcounselsuchshowmanship.Noonelikesto

feellikeanotchinsomeone’sbelt.Calkhas900namesinhis

network,butpointsoutthatthelargenumberreflectshisrole

asinformationbrokeramongstudentsandalumni.Heknows

thenamesofhisfriends’dogs,butdoesn’tclaimthisintimacy

withall900contacts.Ifyou’renotinsales,yournetworkwill

probablybesmaller.

•Don’t abuse privilege.“Ifastudentasksmetointroduceherto

anequityanalyst,soIcallhimtotellhimaboutthisgreatMBA,

andhesays,‘Idon’thavethetime,’Ihavetorespectthat,”says

Calk.“Liketightropewalking,thisisasystembasedonbalance

andtrust,”wrotenetworkingmogulHarveyMackayin Dig Your

Well Before You’re Thirsty.

•Be professional. “Whenyouinvitepeopletoyournetwork,do

itpersonally,”saysCalk.“Don’tsendamassemailto500people

saying,‘Iwanttoconnecttoyou.’”

•Stay in touch.Mackayadvisesreconnectingwithoneortwocon-

tactsdaily.“Thatfeelscontrivedtome,”saysCalk.“I’dratherget

acalloutofthebluesaying,“Justsawyourcompanyonthenews

andthoughtofyou.’”Forinstance,LinkedInpublishesupdates

everytimesomeoneinyournetworkmakesachange.“That’san

idealtimetowriteashortnotetocongratulatesomeoneontheir

promotionorjobchange.”

•Use tools to gain credibility.LinkedInhasa“questions”section,

inwhichmemberscananswerquestionsthatmembersoftheir

networkareasking.“Somepeoplebecomewell-regardedintheir

fieldthisway,”saysCalk,althoughhecautionsthatthisapproach

isn’tforeveryone.“Thepeoplewhodothattendtobeserial

entrepreneurs,orexpertsinafield.”

•Be easy to find. “Somepeopledon’tgiveouttheirnewemail

addressbecausetheydon’twanttobefound,”saysCalk.“That’s

thebiggestprofessionalmistakeyoucanmake.Weallhave

peoplewe’drathernothearfrom.Butthatdoesn’thappen

much;youcanalwaysrefusepolitely,andthebenefitoffsetting

thedangerishuge.”

•Don’t overlook anyone.“Everysocialinteractionisanoppor-

tunitytonetwork,”says

Calk.“Iftheprotonis

active,itbumpsintomore

things.Somecouldbe

painful,butsomecould

turnouttobegreat.”

Mackaytellsthestory

ofsittinginanairplane,

politelyrebuffinghis

neighbor’srepeated

attemptsatconversation,

becausehewasbusy.

Afterhedisembarked,he

realizedhe’djustblown

offDianeSawyer.

Favorite Networking BooksStephenCalk,SeniorAssociateDirectorofJohnson’s

CareerManagementCenter,recommendsthefollowing

booksforhoningyournetworkingsenseandskills.

Dig Your Well Before You’re Thirsty

byHarveyMackay

Never Eat Alone byKeithFerrazzi

How to Win Friends and Influence People

byDaleCarnegie

12 cor nell enter pr ise • fa ll 2010

V A N T A G E

Income inequality: too big to ignoreBy Robert H. Frank

Peopleoftenrememberthepastwithexaggeratedfondness.

Sometimes,however,importantaspectsoflifereallywerebetterin

theolddays.

DuringthethreedecadesafterWorldWarII,forexample,

incomesintheUnitedStatesroserapidlyandataboutthesame

rate—almost3percentayear—forpeopleatallincomelevels.

Americahadaneconomicallyvibrantmiddleclass.Roadsand

bridgeswerewellmaintained,andimpressivenewinfrastructure

wasbeingbuilt.Peoplewereoptimistic.

Bycontrast,duringthelastthreedecadestheeconomyhasgrown

muchmoreslowly,andourinfrastructurehasfalleninto

gravedisrepair.Mosttroubling,allsignificantincome

growthhasbeenconcentratedatthetopofthescale.The

shareoftotalincomegoingtothetop1percentofearners,

whichstoodat8.9percentin1976,roseto23.5percent

by2007,butduringthesameperiod,theaverageinflation-adjusted

hourlywagedeclinedbymorethan7percent.

Yetmanyeconomistsarereluctanttoconfrontrisingincome

inequalitydirectly,sayingthatwhetherthistrendisgoodorbad

requiresavaluejudgmentthatisbestlefttophilosophers.Butthat

disclaimerringshollow.Economics,afterall,wasfoundedbymoral

philosophers,andlinksbetweenthedisciplinesremainstrong.So

economistsarewellpositionedtoaddressthisquestion,andthe

answerisveryclear.

AdamSmith,thefatherofmoderneconomics,wasaprofessor

ofmoralphilosophyattheUniversityofGlasgow.Hisfirstbook,

“ATheoryofMoralSentiments,”waspublishedmorethan25years

beforehiscelebrated“WealthofNations,”whichwasitselfpeppered

withtrenchantmoralanalysis.

Somemoralphilosophersaddressinequalitybyinvoking

principlesofjusticeandfairness.Butbecausetheyhavebeenunable

toforgebroadagreementaboutwhattheseabstractprinciplesmean

inpractice,they’vemadelittleprogress.Themorepragmaticcost-

benefitapproachfavoredbySmithhasprovedmorefruitful,forit

turnsoutthatrisinginequalityhascreatedenormouslossesandfew

gains,evenforitsostensiblebeneficiaries.

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Robert H. Frank, Henrietta Johnson Louis Professor of Management and professor of economics at Johnson, is a monthly contributor to the “Eco-nomic Scene” column in The New York Times. He has served as a Peace Corps volunteer in rural Nepal, chief economist for the Civil Aeronautics Board, fellow at the Center for Ad-vanced Study in the Behavioral Sci-ences, and was Professor of Ameri-can Civilization at l’Ecole des Hautes

Etudes en Sciences Sociales in Paris. Frank’s books include Choosing the Right Pond, Passions within Reason, Microeconomics and Behavior, Luxury Fever, What Price the Moral High Ground?, The Economic Naturalist, and The Economic Naturalist’s Field Guide. A book he co-authored with Philip Cook, The Winner-Take-All Society, was named a Notable Book of the Year by The New York Times, and was included in Business Week’s list of the ten best books for 1995.

Recentresearchonpsychologicalwell-beinghastaughtusthat

beyondacertainpoint,across-the-boardspendingincreasesoftendo

littlemorethanraisethebarforwhatisconsideredenough.ACEO

maythinkheneedsa30,000-square-footmansion,forexample,just

becauseeachofhispeershasone.Althoughtheymightallbejustas

happyinmoremodestdwellings,fewwouldbewillingtodownsize

ontheirown.

Peopledonotexistinasocialvacuum.Communitynormsdefine

clearexpectationsaboutwhatpeopleshouldspendoninterview

suitsandbirthdayparties.Risinginequalityhasthusspawneda

multitudeof“expenditurecascades,”whosefirststepisincreased

spendingbytopearners.

Therichhavebeenspendingmoresimplybecausetheyhaveso

muchextramoney.Theirspendingshiftstheframeofreferencethat

shapesthedemandsofthosejustbelowthem,whotravelinoverlap-

pingsocialcircles.Sothissecondgroup,too,spendsmore,which

shiftstheframeofreferenceforthegroupjustbelowit,andsoon,

allthewaydowntheincomeladder.Thesecascadeshavemadeit

substantiallymoreexpensiveformiddle-classfamiliestoachieve

basicfinancialgoals.

Inarecentworkingpaperbasedoncensusdataforthe100

mostpopulouscountiesintheUnitedStates,AdamSethLevine(a

postdoctoralresearcherinpoliticalscienceatVanderbiltUniversity),

OegeDijk(aneconomicsPhDstudentattheEuropeanUniversity

Institute)andIfoundthatthecountieswhereincomeinequality

grewfastestalsoshowedthebiggestincreasesinsymptomsof

financialdistress.

Forexample,evenaftercontrollingforotherfactors,thesecoun-

tieshadthelargestincreasesinbankruptcyfilings.

Divorceratesareanotherreliableindicatoroffinancialdistress,

asmarriagecounselorsreportthatahighproportionofcouplesthey

seeareexperiencingsignificantfinancialproblems.Thecounties

withthebiggestincreasesininequalityalsoreportedthelargest

increasesindivorcerates.

Anotherfootprintoffinancialdistressislongcommutetimes,

becausefamilieswhoareshortoncashoftentrytomakeendsmeet

bymovingtowherehousingischeaper—inmanycases,farther

fromwork.Thecountieswherelongcommutetimeshadgrownthe

mostwereagainthosewiththelargestincreasesininequality.

Themiddle-classsqueezehasalsoreducedvoters’willingness

tosupportevenbasicpublicservices.Richandpooralikeendure

crumblingroads,weakbridges,anunreliablerailsystem,and

cargocontainersthatenterourportswithoutscrutiny.Andmany

Americansliveintheshadowofpoorlymaintaineddamsthatcould

collapseatanymoment.

Economistswhosayweshouldrelegatequestionsaboutinequal-

itytophilosophersoftenadvocatepolicies,liketaxcutsforthe

wealthy,thatincreaseinequalitysubstantially.Thatgreaterinequal-

itycausesrealharmisbeyonddoubt.

Butarethereoffsettingbenefits?

Thereisnopersuasiveevidencethatgreaterinequalitybolsters

economicgrowthorenhancesanyone’swell-being.Yes,therichcan

nowbuybiggermansionsandhostmoreexpensiveparties.Butthis

appearstohavemadethemnohappier.Andinourwinner-take-all

economy,oneeffectofthegrowinginequalityhasbeentolure

ourmosttalentedgraduatestothelargelyunproductivechasefor

financialbonanzasonWallStreet.

Inshort,theeconomist’scost-benefitapproach—itselflongan

importantarrowinthemoralphilosopher’squiver—hasmuchto

sayabouttheeffectsofrisinginequality.Weneednotreachagree-

mentonallphilosophicalprinciplesoffairnesstorecognizethat

ithasimposedconsiderableharmacrosstheincomescalewithout

generatingsignificantoffsettingbenefits.

Noonedarestoarguethatrisinginequalityisrequiredinthe

nameoffairness.Somaybeweshouldjustagreethatit’sabadthing

—andtrytodosomethingaboutit.

FromThe New York Times,EconomicScene,October16,2010.

©TheNewYorkTimes.Allrightsreserved.Usedbypermissionandprotectedby

theCopyrightLawsoftheUnitedStates.Theprinting,copying,redistribution,or

retransmissionoftheMaterialwithoutexpresswrittenpermissionisprohibited.

“ Rising inequality has created enormous losses and few gains, even for its ostensible beneficiaries.”

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S T A R T

The Cornell Venture ChallengeFinding and supporting tomorrow’s most promising new enterprisesBy Irene Kim

Itallstartedwithdrinks.

Backinthefallof2008,BenjaminRollins,MBA’09,was

helpingsetuphappy-hournetworkingeventsbetweenJohnsonand

SchoolofEngineeringstudents.Hemetbiomedicalengineering

studentBrianLawrence,PhD’11,whohadhelpedsetuptheevents

onhisend.Rollinswaslookingforatechnologytolaunchabusi-

ness;Lawrencehadapromisingtechnology.

“IhadgonetoCornelltofindatechnologythatwasboth

interestingfromanintellectual-propertystandpointandthathad

bigmarketpotential,”saysRollins.HewasintriguedbyLawrence’s

proposition,alow-costtypeofwoundcareforpatientsrecovering

fromophthalmicsurgeryortraumaticeyeinjury.“Let’sstartabusi-

ness,”RollinssaidtoLawrence;BombyxTechnologieswasborn.

Sincethen,BombyxTechnologieshasreceivedgrantsfromthe

DepartmentofDefenseandtheNationalScienceFoundationtotal-

ingmorethan$1million,aswellasseriousinterestfromindustry

andtheinvestmentcommunity.Gettingtothispointhasn’tbeen

easy:Rollinspackeduphisfamilyandmovedbackinwithhis

parentstobootstrapthecompany.

WhatmadeRollinsdecidetheventurewasworththesacrifice?

Inthespringof2009,heandLawrencesubmittedtheirfledgling

businessplantotheCornellVentureChallenge(CVC),anannual

business-plancompetitionrunbyJohnson’sventure-capitalfund,

BRVentureFund(BRV).Aftermakingtothefinalcut,Bombyx

Technologiestookfirstprize.

Prize money: $20,000. Winning the CVC: priceless.RollinsandLawrencewereawarded$20,000forwinning($10,000

fromBRV,matchedwith$10,000fromtheCornellCenterfor

TechnologyEnterpriseandCommercialization,sinceBombyxis

basedonaCornelltechnology).Buttherealprize,saysRollins,was

therecognitionbyBRV—ahighlyrespectedventure-capitalfund,

andtheonlyonecompletelyrunbystudents.“WhatBRVdidforus

wastogiveusthevalidation,theconfirmationthatwecouldreally

runthisbusiness,”hesays.

EvanLuxonofJohnsHopkins,whosefirm,CorticalConcepts,

wontheCVCinApril2010,hassimilarhighpraiseforBRV.“By

winningthechallenge,wewereaffordedwithimmediatevalidationin

discussionswithpotentialinvestorsandlicensees,”saysLuxon.“Given

thereputationoftheJohnsonSchoolanditsalumni,thewinhas

allowedustomeetpeoplewemaynothavehadaccesstopreviously,

andtohavehigher-leveldiscussionsthanwewouldhaveotherwise.”

More than good ideasEachwinter,theCVCinvites

aspiringentrepreneurs,including

Cornell-affiliatedindividualsand

currentstudentsandfacultyatother

universities,tosubmittheirbusiness

ideas,andreceivesdozensofshort

executivesummariesofpromising

newventures—fromonlineshopping

servicestorainwater-collectiondevices

forruralareas.TheBRVmanagers,

second-yearMBAstudentsselected

bythepreviousyear’smanagers,carefullyreviewallsubmissionsand

chooseuptofivetoproceedtothefinalround.Thesefinalistssubmit

full-fledgedbusinessplansandpresenttheirideastotheBRVmanag-

ersandapanelofveteranventurecapitalistsforfeedbackandjudging

duringtheuniversity-wideEntrepreneurship@CornellweekinApril.

Thecompetition,formerlyknownastheBusinessIdeaCom-

petition,changeditsnamein2008-09toreflectitsemphasison

solid,viableventures.“Thereasoningwastoshiftthefocusfrom

The 2010-2011 BR Venture Fund managers (all Class of 2011) and faculty advi-sors (standing, left to right): Marlon Nichols, Brent Goldberg, Anand Sundaram, Sung-Hoon Ahn (seated) Professor David BenDaniel, Kelley Dwyer, Henry Parry-Okeden, Weston Cashman, and Professor Steven Gal.

“ What BRV did for us was to give us the validation, the confirmation that we could really run this business.”

— Benjamin Rollins, MBA ’09, co-founder and CEO, Bombyx Technologies

Danny Hest, MBA ’10, COO of BRV in 2009-10

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justpresentingagoodbusinessideatofindingreal,high-growth,

venture-fundablestartupcompanies,”saysDannyHest,MBA’10,

whoservedasCOOofBRVin2009-10.

Making VC connectionsArguablytheCVC’smostvaluablebenefit,competitorsandBRV

managersagree,isthefinalround,inwhichapanelofprofessional

venturecapitalistscritiquesfinalists’businessplans.“Oneofthe

primarybenefitsofcompetingwashearingfeedbackfromestablished

venturecapitalists,”saysLuxon.“Notonlywerewechallengedto

defendourtechnologyandbusinessmodelduringthepresentation,

buttheone-on-onesessionsafterwardallowedthejudgestogiveus

incrediblyrelevantadvice.”AsHestpointsout,inadditiontolearning

fromthecritique,thefinalistshavetheopportunitytostartadialogue

withtheVCsforpotentialfunding.

TheVCs,liketheBRVmanag-

ers,arelookingforsolidbusiness

propositions.CorticalConcepts,

developerofadeviceforuseinspinal

surgerythatincreasesthestrength

offixationinosteoporoticbone,

presentedacompellingcase,says

MarlonNichols,BRV’spresidentand

COOfor2010-2011.“Ingeneral,

theywereahigh-performingteam

thatsuccessfullyaddressedthetypicalventure-investorconcerns

ofviability,strengthofmanagementteam,intellectualproperty,

realisticfinancialprojections,graspofthemarketpotential,and

feedbackfrompotentialcustomers.”

Thewholeprocessofscreeningthepromisingcontestentries,and

thenwatchingselectedentrepreneurspitchtheirideastothepanel,

wasaremarkablelearningexperience,saysHest.“Everybusiness

presentsadifferentsetofchallenges,andit’sagreatexercisetothink

throughwhatcanhelpastartupbesuccessfulinaparticularmarket.”

Replicating the VC experienceBRVentureFund,annualsponsoroftheCVC,isuniqueinthelevel

ofresponsibilityitconfersonitsstudentmanagers.“Moststudent-

runfundsaresetupsuchthatthestudentsmakerecommendations

toanoutsideboardofalumni,faculty,orothers,whomakethe

investmentdecisions,”saysStevenGal,associateprofessorofclinical

entrepreneurshipandoneofthefacultyadvisorsfortheBRVenture

Fund.“AtBRV,thestudentsmakeallthestaffingandinvestment

decisions,actingaspartnersofthefund.”

Nicholsaddsthatsomebusinessschoolshaveventurecapital

fundsinwhichstudentsperformonlyduediligenceforpossible

investments,orareallowedtoparticipateinonlylimitedways.

GalexplainsthattheBRVexperiencetrulymirrorstheactual

environmentinwhichventurecapitalistswork.“TheBRVfund

managersgeneratedealflow,conductduediligence,makeinvest-

ments,andmanageaportfolio,”hesays.“Theonlydifferenceis

thatthestudentsdon’tprofitmonetarilyfromthedeals’success.

AddsNichols:“Wehavetheopportunitytolearnallaspectsofthe

venturebusinessbydoingiteveryday.”

Basicallyoperatingasrealventurecapitalists—albeitwithout

pay—BRVmanagersareabletobuildimportantrelationshipsin

theventure-capitalandentrepreneurialcommunities,saysNichols.

“SuchrelationshipsarecovetedintheVCspace.”Andplentyof

otherpeopletakenoticeoftheBRV,aswell.Duringhistenure,says

Hest,BRVmanagersreceivednumerousrequestsforinformation

fromotherschoolsabouthowthefundisrun.

Asahighlightattheendoftheacademicyear,theCVCaffords

theBRVfundmanagersaninvaluableopportunitytoseetheir

investmentdecisionsevaluatedbytopventurecapitalists.“The

singlemostvaluablelessoncamewhenweparticipatedinthejudges’

deliberationsession,”saysNichols.“Thiswasacrashcoursein

howtoevaluateentrepreneursandtheirideas.Today,aswereview

potentialinvestments,wepracticemanyoftheprinciplesthatwe

learnedinthedeliberationroomonthatday.”

(clockwise from left) Bombyx Technologies co-founders Ben Rollins, MBA ’09, CEO, and Brian Lawrence, PhD ’11, CTO, in their clean suits; Benjamin Rollins; Bombyx Technologies’ product: a transparent bandage that rapidly heals eye wounds. The bandage, made of material that is completely unique, patented, and inexpensive to produce, resembles a contact lens. When placed on a dam-aged eye, it relieves pain and protects from further damage. Bombyx took first prize at the 2009 Cornell Venture Challenge.

Marlon Nichols, BRV’s presi-dent and COO for 2010-2011

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Making green while the sun shinesGaye Tomlinson, MBA ’05:CMO, Vaha Solar and Green Consulting

Asoilreservesshrink,environmentalconcernsgrow,protestsflyover

hydraulicfracturing,andelectricitycostsskyrocket,GayeTomlinson

isbettingthatthetimeisfinallyrightforrenewable-energysolutions.

Sheandherhusband,Geoffrey—aformerWallStreetanalyst

turnedgreen-technologiesconsultant—launchedVahaSolarand

GreenConsultinginMarch2008tohelpconsumersimprovetheir

energyefficiency.BasedinsunnyAnaheim(averageannualrainfall

below14inches),thecompanyfocusesonsolar-energysolutions.

Ithelpsthatconsumersrecognizetheneedforenergyefficiency,

butTomlinsonfoundthatmanysolutionsweretoocostlyformany.

Evenaftergenerouseconomicincentivesfromstategovernment,

solarsystemsremainedoutofthereachofmostwallets.“Theinitial

capitaloutlaystillturnedclientsoff—manywouldratherspend

theirmoneyongranitecountertops,”saysTomlinson.

Creativebusinessthinkingwasinorder.“Irealizedthatthe

peoplewhomostneedsolarpowerarelow-incomehouseholdswho

payhighbillsforelectricity,”saysTomlinson.Sheengineeredapart-

Change agentDaniela Peiser, MBA ’00:Founder and managing director, Bold Aspirations

In2007,whenDanielaPeisermentionedtohercolleaguesatDeloitte

Consultingthatshewasthinkingabouttakingasix-monthvacation

inhernativeSouthAfrica,herleadershipofferedtoarrangeforherto

workoutofthecompany’sCapeTownoffice.“Theyfeltthatleavesof

absenceoftenresultedinpeoplenotreturning,”saysPeiser.

Sixmonthswentby,thentwelve.Notreadytogobacktothe

UnitedStates,PeisertransferredtoDeloitteConsulting’sSouth

Africanarm,headinguptheHumanCapitalPracticeinCapeTown.

Peiserspentthenextyeargaining

localexperienceinherchosenfield

ofchangemanagementandbusiness

transformation,becomingaccli-

matedtotheSouthAfricanbusiness

environment,andstrengtheningher

SouthAfricannetwork.In2009,she

wasreadytostrikeoutonherown,

launchingherconsultingfirmin

SouthAfricaandtheUnitedStates.

nershipwithHabitatforHuman-

ityandAnaheimPublicUtilities

wherebyVahadesignedthesystems,

Habitatvolunteersinstalledthem,

andtheutilitypaidthebill.The

partnershipslashedthemarketprice

forthesolarsystemsfrom$14,000

to$500perhome;hundredsof

homeownersboughtin.

Vahaalsotargetsbusinessesand

otherorganizations.Solarsystemscansignificantlyaffectcommer-

cialbuildings’overallenvironmentalimpact,andgenerateareturn

oninvestmentof15to25percentafteraccountingforlocalrebates,

taxcredits,andanaccelerateddepreciationscheduleonsolar

systems.VahahasinstalledsystemsatVonssupermarketchain’s

creditunionandAnaheim’sUnitarianUniversalistChurch.

TomlinsoncreditsJohnsonwithteachingherthreecrucialstartup

skills:theabilitytorecognizetheopportunity,theknow-howto

differentiatehercompanyinatougheconomyandcompetitive

environment,andvitalnegotiationskills.“Idon’tthinkIwouldhave

startedthisventureifithadn’tbeenformyMBAdegree,”shesays.

“OnceIcameupwiththenameBoldAspirations[www.boldaspira-

tions.com],Iknewitwasperfect,”saysPeiser.“Itimpliespositivity,

strength,andgrowthorientation—exactlywhatIwantedtoofferclients.”

Peiserassistsfirmswiththe“people”aspectsofbusinesstransformation

anddrivingsustainablechange.Inadditiontoconsulting,shealsoprovides

coachingservices.“Iwantedtoleveragemyexperiencetoworkwithpeople

one-on-oneonbothprofessionalandpersonalgrowth,”shesays.

TheworkenvironmentinSouthAfricadifferssignificantlyfrom

thatoftheUnitedStates.Foronething,thebusinesscultureismuch

moredrivenbyrelationships,saysPeiser.“Thishasmadeitabitmore

difficultforme,asIhavenotbeenhereforlong,”sheadds.“However,

onceyouhavesomesuccess,itleadstoalotmoreopportunity.”

Andthecountryoffersgreatpotentialtoentrepreneurs.“SouthAf-

ricaisarisingeconomywithunlimitedpossibilitiesforgrowth,”Peiser

says.“Ifindittobeveryentrepreneur-friendly.”Largecompanies,she

adds,arefrequentlyopentoengagingwithsmallerbusinesses.

Itdoesn’thurt,either,thatshehasnineyears’experiencework-

ingforDeloitteintheUnitedStates,India,andSouthAfrica.“My

internationalexperienceandeducationareesteemedhere,asIbringa

uniqueandoftenmuchmoreglobalperspective,”Peisersays.

– Irene Kim

Startup Snapshots

Gaye and Geoffrey Tomlinson

Daniela Peiser

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The hidden cost of 9/11More lives were lost, as Americans chose driving over flying By Robert Preer

InthemonthsaftertheterroristattacksofSeptember11,2001,

Americansshunnedairportsandinstead,tooktothenation’s

highway—presumablyonthebeliefthatvehiculartravelwasasafer

option.Yetwhatseemedabetterbetendedupcostingmorelives,

becausetravelersshiftedtoamoredangerousmodeoftransporta-

tion,accordingtoresearchbyJohnsonprofessorofmarketingand

economicsVrindaKadiyali.

“Aftercontrollingforobservableandunobservablefactorsthat

influencefatalities,weestimatethatasmanyas2,300liveswere

lost,becauseoftravelers’responseto9/11,”writeKadiyaliandher

co-authors,GarrickBlalockandDanielH.SimonofCornell’s

DysonSchoolofAppliedEconomicsandManagement,in“Driving

FatalitiesAfter9/11:AHiddenCostofTerrorism,”publishedin

Applied Economics,Vol.41,Issue14,2009.“Thesedeathsarea

hiddencostofthe9/11attacks.”

Travelersappeartohaveavoidedflyingnotonlybecausethey

thoughtitwassaferbutalsobecausetheywantedtoavoiddelays

andhasslesassociatedwithincreasedairportsecurity,accordingto

theresearchers.

“Theseextrasecuritymeasuresareimposedtotellpeoplethatit

issafertofly,”Kadiyalisays.“But,becauseofthosemeasures,fewer

peoplechoosetofly,andwhentheydriveinsteadofflying,more

peopledieontheroad.”

Theresearchersanalyzeddataonallmotorvehiclefatalitiesin

theU.S.between1994and2003.Highwaydeathsincreasedsig-

nificantlyafter9/11,theresearchersfound.Toisolatetheso-called

“9/11effect”theresearchersusedstatisticalanalysistocontrolfor

variationsinairfaresandgeneraleconomicconditions.

Theyalsocompareddataonfatalitiesinvolvingcommercial

vehicles—primarilytruckstransportingcargo—andnon-com-

mercialvehicles,suchaspassengercars.Ifa9/11effectdidexist,

therewouldbehigherdeathratesfornon-commercialvehicles,since

commercialvehicleswouldbeontheroad,regardlessofterrorism

fears,theresearchershypothesized.Infact,theresearchersfound

thatfatalitiesinvolvingcommercialvehiclesdidnotincreaseafter

9/11,whiledeathsinvolvingnon-commercialvehiclesspiked.

Theyalsoidentifiedseveraladditionalsignsofa9/11effect.Out-

of-statefatalitiesincreasedmorethanin-statefatalities—evidence

thattravelerssubstitutedhighwayforairtravel.Andfatalitieswent

upmostintheNortheast,wheretypicaltraveldistancesareshorter

anddrivingisanattractivealternativetoflying.

Also,theincreaseinautodeathsweakened

overtime,withfatalitiesreturningtopre-9/11levels

byOctober2003.Accordingtotheresearchers,this

probablyhappenedbecausefearofflyinglessened,and

travelersadjustedtoairportsecuritymeasures.

Butinthetwoyearsthe9/11effectheldsway,

morethan2,000peoplediedonthenation’shighways,

accordingtoKadiyali.

“Whenwedidthecalculationandfound

thenumber,myheartsank,”shesays.“Lookathow

imperfectlywemakedecisionsandwhatthecostcan

be,whenweimproperlyassessrisk.”

“ Because of extra security measures, fewer people choose to fly, and when they drive instead of flying, more people die on the road.”

– Professor Vrinda Kadiyali

Co

rne

ll Un

ivers

ity Ph

oto

gra

ph

y

ThoughtLeadership

18 cor nell enter pr ise • fa ll 2010

g

T a m in

ILLUSTRATION: James Steinberg

19w w w.johnson.cor nell .edu

henPresidentBarackObamasignedtheDodd-

FrankbillonJuly21,hedeclaredthatthefinancial

regulatoryreformlawwouldempowerconsumers

andinvestors,shinealightonshadowydeals,and

endtaxpayerbailouts.

“Itprovidescertaintytoeverybody,frombankerstofarmersto

businessownerstoconsumers,”headded.

Whetherthelawwillcuretheillsthatcausedtheglobalfinancial

crisisisamatterofmuchdebate.ButexpertsatJohnsonagreeon

onepoint:Financialreformhasnotbroughtmuchcertainty.

“Everyfinancialcompany,everyprofessionaltradeassociation,

everylawfirm,everyaccountingfirm,everyconsultingfirmis

spendingtheirtimestudyingthisbill,”AccountingProfessorRobert

J.Swieringasays.“We’regoingtohaveinterpretationsandenabling

legislationandregulationsforthenextthree-and-a-halfyears.It

hasn’treduceduncertainty;ithasincreaseduncertainty.”

Thenewlawdealswithalmosteveryaspectofthefinancial

system,fromderivativestoexecutivepaytocredit-ratingagenciesto

consumerprotectiontohedgefunds.Butinmanyareas,thelegisla-

tionomitsspecificrules,whicharelefttoregulatorstocraft.

“Thebillisopen-ended.Itlegislatestheneedtodocertainthings

andleavesthedetailstovariousgovernmententitiestodealwitha

laterdate,”ProfessorofFinanceandEconomicsRobertA.Jarrow

says.“I’mnotapoliticalscientist,butthatseemsratherunusualto

me—Congressadoptsaframeworkbutleavesmanyofthedetails

toofficialswhoareappointedandnotelected.”

GeorgeAndrewKarolyi,professoroffinanceandglobalbusiness,

saysenactmentofthebill,whileanimportantmilestone,mainly

setsthestagefordecisionsaboutspecificregulations,aswellthe

designofnewagenciesthelawcreates.Henotesthatthecontroversy

surroundingestablishmentoftheBureauofConsumerFinancial

Protectionisapreviewofthingstocomeunderthelaw.

“WhenItalkaboutthisbillIhaveasimpletheme,”Karolyi

says:“’Ladiesandgentlemen,pleasedon’tthinkthisistheendof

anything.It’sthebeginningofeverything.’”

A crisis reactionheDodd-FrankWallStreetReformandConsumerProtec-

tionActistheU.S.government’sresponsetothefinancial

crisis,whichin2008broughttheworldfinancialsystem

tothebrinkofcollapse.Stockmarketsplunged,businessesfailed,

wealthevaporated,andmillionslosttheirjobsandhomes.President

Obamacalledforanoverhaulofthefinancialsystem,andafter

monthsofdebate,maneuvering,andcompromise,bothhousesof

Congressandthepresidentsettledonthisbill.

“Thelegislationreallyisacollectionofmanyremediestoallof

thedifferentaspectsofthefinancialcrisis,”AssociateProfessorof

FinanceYanivGrinsteinsays.

ThecrisisbeganwiththeburstingoftheU.S.housingbubble,

whicharosebecausebrokerssoldmortgagestobuyerswhocouldn’t

repaythem.Nextcameacollapseinthevalueofmortgagesecuri-

the Bear

T

W

Will Dodd-Frank put paid to more market meltdowns?

By RoBe Rt P R e e R

20 cor nell enter pr ise • fa ll 2010

ties,heldbyfinancialinstitutionsofallkinds,fromcommercial

bankstoinvestmentbankstohedgefunds.Derivativesbrought

moreplayers,includingbiginsurancecompanies,intothecascadeof

failures.Stockmarketscrashedandcreditmarketsfroze.

Foreachstepinthecrisis,theDodd-Frankbillhasananswer.To

curbdeceptivelending,aconsumerprotectionagencyisestablished.

Topreventfinancialinstitutionsfromdabblinginriskyinvestments,

limitsanddisclosurerequirementsareimposedontrading.Deriva-

tiveswillbemorecloselywatchedandregulated.Anewagencywill

monitortheentiresystem.Andwhenabigfinancialinstitution

teeters,newproceduresareinplacetowinddowntheentitybefore

ittakesothersdownwithit.

Thebillestablishesproceduresaimedatcurbingexecutivepay,

whichsomebelievewasanunderlyingcauseofthecrisisbecauseit

encouragedexcessiverisk-taking.

“Youcanlookattheabusesofthelastfiveyears,andthey’reall

inthislaw,”Swieringasays.

Looking for cracks in the foundationobertC.Hockett,aprofessoratCornellLawSchool,be-

lievesthatestablishmentofaFinancialStabilityOversight

Councilisamajorcontributionofthenewlaw.Thecouncil

includestheFederalReservechair,treasurysecretary,andheadsof

themajorfinancialregulatoryagencies.Itsjobistoidentifythreats

totheoverallsystem.

“ForthefirsttimeinAmericanregulatoryhistoryweexplicitly

embracetheideaofsystemicrisk,”Hockettsays.

TheU.S.regulatorysystemisapatchworkcreation,theresultof

agenciesbeingestablishedinresponsetocrisesovermanydecades.

Oneagencyoverseescommercialbanks,anothercommodities,

anothersecurities.Insuranceislefttothestates.

“It’salmostasiftheywereconfinedtoparticularlittlewalled-off

worlds,”Hockettsays.“Andtheywerenotpayingattentiontotwo

importantthings:first,thewaymanyfinancialinstitutionshavecome

tolookalike,andtwo,theinterconnectionsbetweentheinstitutions.”

Exactlyhowthecouncilwillfunctionremainstobeseen.Firstit

needsabudget,astaff,andworkingprocedures.

Jarrowisskeptical.“Myviewisthatit’sanotherlayerofbureau-

cracy.Wedefinitelyneedsomeonelookingforsystemicrisk,butI’m

notsurethiscouncilwilldoanything.Itwouldbeeasiertohavethe

FedandTreasuryconsultwitheachother.”

Karolyialsohasdoubts.“Whetherthecouncilwillseriouslymonitor,

andwhetheritwillhavetheresourcestodoso,areverybigquestions.”

When big institutions failn2008,whenthenation’sbiggestfinancialinstitutionswere

onthebrinkofinsolvency,thesceneinWashingtonappeared

chaotic—topofficialsscurryingatoddhourstohastilycalled

meetings.Someofthedecisionsseemedarbitrary:rescuesforAIG

andBearStearns,butnolifelineforLehmanBrothers.

Dodd-Frankestablishesprocedurestobefollowedwhenbig

financialinstitutionsgetintotrouble.TheFDIC,inconsultation

withtheFed,isauthorizedtotakecontroloffailinginstitutions

andwindthemdowninmuchthesamewayitdoeswithfaltering

commercialbanks.

“We’vehadthissystemsincethe1930swithcommercialbanks,

preciselybecauseweknowhowchaoticbankrunsandbankfailures

canbe,”Hockettsays.“Thelawextendsthesystemtootherkindsof

financialinstitutions.”

Jarrowseesthisasastepforward.“It’s

inadditiontothebankruptcyprocess,

whichcantakemuchlonger.Havingthe

FDICgoinandcontroltheliquidation

processtomaintainthehealthofthe

financialsystemisagoodthing.”

Thereformbillalsoextendsfederal

oversighttoinsurancecompanies,which

arenowregulatedbythestates.Anew

agencywithintheTreasuryDepartment,

theFederalInsuranceOffice,willmonitor

biginsurersandworkwithotherregulators

tosuperviseinsurancecompaniesthat

falterandthreatenthesystem.

RI

“We’re going to have

interpretations and

enabling legislation and

regulations for the next

three-and-a-half years.

Dodd-Frank hasn’t reduced uncertainty; it

has increased uncertainty.”

– P Rof e s soR RoBe Rt J . sw i e R i nga

T A M I N G

the bear

21w w w.johnson.cor nell .edu

Curbing risky behavior ntheyearsleadinguptothecrashof2008,asignaturefeature

ofthefinancialworldwastheproliferationofnew,exoticinstru-

ments,manyofthemlightlyregulated.TheDodd-Frankbill

seekstoclampcontrolsonthesefinancialinnovations.

ThelawgivestheCommodityFuturesTradingCommission

moreoversightoverderivatives,whichwillbebroughtontoregu-

latedexchanges.Hedgefundadviserswillhavetoregisterandreport

tofederalagencies.

“Morethingsarebeingbroughtundertheregulatoryumbrella,”

Hockettsays.

Alsoinlineforclosercontrolarecommercialbanks,which,with

repealoftheGlass-SteagallActin1999,wereallowedtotradeinsecuri-

ties.Dodd-Frankdoesn’tprohibitsuchtradesbutitdoessetlimits.

Banksthatwanttodabbleinsecuritiesmust

holdextracapital,complywithconflict-of-interest

rules,andlimittheamountsoftransactions.These

restrictions,proposedbyformerFedChairmanPaul

Volcker,havebecomeknownasthe“Volckerrule.”

“Onewaytothinkofitisasapartialreturn,

withoutgoingthewholeway,inthedirectionof

Glass-Steagall,”Hockettsays.

Regulation in a roundabout way

hefinancialreformbilltakesaback-doorap-

proachtosomethings.Insteadofimposing

strictrulesmandatingbehaviors,itcreates

conditionsthatmakecertainoutcomesmorelikely.

Executivecompensationisoneexample.

Thelawestablishestheprincipleof“sayonpay.”

Shareholdersofpubliclytradedfirmsmustbegiventheopportunity

tovoteoncompensationpackagesoftopexecutives.Shareholder

votesarenon-bindingondirectorsofcompanies.

“Thedirectorsdon’thavetofollowthevote,buttheyknowif

theygoagainstit,it’sgoingtohaveanimpact,”saysSwieringa,

whoservesontheboardofdirectorsofGE.“It’sawayofmaking

directorsmoreresponsibleandaccountable.”

Hockettconsiders“sayonpay”tobewindowdressing.Grinstein

doubtswhetherthenewrulewilldomuchaboutthefundamentalprob-

lemofrealigningincentivestocurbexcessiverisk-takingbyexecutives.

ButSwieringabelieves“sayonpay”willforcedirectorstojustify

theiractionsonexecutivepay.Iftheyignoreshareholders’non-

bindingvotes,theywillriskbeingousted.

“It’sclearthiseffortisgoingtohavesomeimpact”Swieringasays.

I

T

“We definitely need

someone looking for

systemic risk, but I’m

not sure this [Financial

Stability Oversight]

Council will do anything. It would be

easier to have the Fed and Treasury

consult with each other.”

– P Rof e s soR BoB Ja R Row

22 cor nell enter pr ise • fa ll 2010

AAA ratings for mortgage- backed securities

odd-Frankhasamenuoffixesfortheproblemposedby

credit-ratingagencies,whichaffixedtriple-Aratingsto

themortgage-backedsecuritiesthatwereattheheartof

thecrisis.

TheactcreatesanewofficeofcreditratingswithintheSECand

setsuprulesintendedtomakecreditagenciesmoreaccountableand

transparentandlesssusceptibletoconflictsofinterest.Aconcern

aboutratingagencieshasbeenthattheirjudgmentmaybeclouded

whentheyarebeingpaidbythecompanieswhoseproductstheyrate.

Jarrowisdoubtfultheseregulationswillwork.“Itlookslikethey

aregoingtocreateanotherlayerofregulation.Ithinkthisisahalf

fixandthewrongfix.”

Hefavorsdoingawaywithrequirementsthatinvestment-grade

securitiesberatedbytheagencies.“Financialinstitutionswoulddo

theirownduediligenceorpaysomebodytodoit,andtheywouldn’t

relyonquasi-governmentsanctionedorganizations,”Jarrowsays.

Hockettnotesthatthelawremovesalegalshieldcredit-rating

agencieshavehadandallowspartieswhogotbadadvicetosuethe

agencies.“Byopeningthepossibilityofcertainlawsuits,itmay

renderthecredit-ratingagenciesmoreaccountable,”hesays.

The crisis next timestheDodd-Frankbillmovesintotheimplementationphase,

thequestionlooms:Willitpreventthenextfinancial

crisis?

FinanceProfessorWarrenB.Baileyhasdoubts.“Smarttradersand

theirlawyerswill,toadegree,alwaysfindawayaroundsomeofthese

newregulations.Thatissimplythenatureofglobalfinance,”hesays.

Whilethelawdoescreatenewrulesandagencies,theU.S.regu-

latorysystemremainsapatchwork,withnocentralauthoritythat

canintervenewheneverandwhereverthenextcrisiserupts.Thelaw

alsodoesnotaddresstheproblemsofFannieMaeandFreddieMac,

thetwostill-ailingmortgagegiantsthatthefederalgovernmenttook

overduringthecrisis.

Baileysaysa

threatalsocouldcome

frombeyondourbor-

ders.“Wecanimagine

thatahedgefund,an

offshoreentity,orsome

otherplayerthatdoes

notfallunderthenew

lawsorregs,canblow

up,crashU.S.stockorbondmarkets,andcausebigproblems—

evenifalltheregulated,onshoreplayersarebehaving.”

KarolyisaystheUnitedStatesshouldhaveworkedwithother

nationstocraftacoordinatedapproach.“ItfeelsliketheU.S.has

goneitalone,”hesays.“Thereisnodoubtinmymindthatthecrisis

stemmedfromthefactthattherewasseriouslackofcoordination

amongglobalregulatoryagencies.”

Still,Karolyibelievesthelawisprogress.“I’moptimistic.Itmay

nothaveeverythingIoranybodyelsehopedfor,butatleastwehave

ablueprint.”

Hockettsaysthatinalmosteveryareacoveredbythebill,the

draftersofthelawwentabouttwo-thirdsofthewaytocomplete

reformofthesystem.

“Maybethat’sthebestwaytodoit,”Hockettsays.“Youdon’t

wanttogojusthalfway.Thingswerecrazyenoughtwoyearsago

thatyoudon’twanthalfmeasures.Two-thirdsisanicewayofsplit-

tingthedifference.”

Not strictly academicorbusinessschoolfaculty,thefinancialreformlawmeans

changestolecturesandadditionstosyllabuses.AtJohnson,

thelawhasbeenahottopicsincethespring.

“WediscusseditintheexecutiveMBAclassIwasteaching,”

Karolyisays.“Iteachcorefinance,andthat’sprobablynottheplace

totalkaboutit,butIsuredid.”

WhenCongresswasstilldebatingthelaw,theschoolbrought

inindustryexpertstoparticipatewithfacultyinaseriesofevening

paneldiscussionslastspring.

“There’snoformalmoduleinanycurriculum,butIthinkit’s

therightandresponsiblethingtobetalkingaboutthesechanges,”

Karolyisays.Understandingthelawisimportanttoanyonegoing

intobusinessorfinance,headds.

“It’sgoingtoaffectallthelivesoftheseyoungpeopleformany,

manyyears.”

“One way to think of it is as a partial

return without going the whole way

in the direction of Glass-Steagall.”

– P Rof e s soR RoBe Rt C. HoCk e t t

D

A

F

T A M I N G

the bear

23w w w.johnson.cor nell .edu

Judging by the headlines, many of the world’s emerging

nations seem to face a grim future. They are periodically swept

by famine, disease, and civil wars, and are often mired in

poverty. Yet Western business refuses to write them off. Where

others see despair, forward-looking businesses see billions

of consumers with money to spend, a desire for a better life,

and a willingness to apply capitalist solutions to longstanding

problems. The stories below give a glimpse of the quiet

revolution that is transforming the planet.

Alumni facilitating economic development in emerging economies

By Doug McInnIs

gaMe

ch

ang

ers

cor nell enter pr ise • fa ll 201024

JustIn DeKoszMovszKy ’99, MBa ’06:Combating Disease in the Poorest Big Cities

InNairobi,Kenya,roughly150residentsshareeachofthecommunal

bathroomsthatservethecity’spoorestneighborhoods.Butwhenit

comestocleaningthem,noneofthose150peopleisincharge.The

bacterialnightmarethatresultshelpsspreaddysenteryandotherdiar-

rhealdiseasesthataredeadlytonewbornsandyoungchildren.

ThesituationisreminiscentofthefilththatafflictedEuropean

citiesbeforetheageofmodernsanitation.NowSCJohnsonhas

movedintothevoidbyco-creatingprivatelyrunsanitation“micro-

franchises”tocleanupNairobi’scommunalrestrooms.Ifthesystem

worksinNairobi,itcouldcreateatemplatefordiseasemanagement

intheburgeoningslumsoftheemergingworld’sbigcities,and

createjobsintheprocess.

“Forthefirsttimeinthehistoryoftheplanet,themajor-

ityofpeoplearelivingincities.Andthemajorityofthenew

urbanmigrantsaregoingintoslums.Ifyoudon’thavesanitation

systemsinplace,garbageandexcrementjustpileup,saysJustin

DeKoszmovszky,SCJohnson’smanagerforstrategicsustainability

indevelopingmarkets.“OurChairmanandCEOFiskJohnson

believesthatpartofbeingaresponsiblecompanyisworkinghardto

playaroleinsolvingtheworld’sproblems.Heisverysupportiveof

theseeffortsinKenya.”

SCJohnson’ssolutioniselegantlysimple.Thecompanycreated

anorganizationcalledCommunityCleaningServices,orCCS,

whichprovidesstartupadviceandsuppliestohelpentrepreneurs

openneighborhoodsanitationservices.It’sawin—families

servedbytheseentrepreneurspayupto75centsaweektoassure

cleanfacilitiesandSCJohnsongainsanewmarketforitscleaning

products.Everyonebenefits.

Tolaunchtheventures,CCSdonatesglovesandrubberboots

tothenewsanitationcompanies.Cleaningsuppliesareprovided

inbulk,wellbelowretailcostsandinaclosed-loopsystemthat

eliminatespackagingwaste.Thearrangementminimizesup-front

costsforcash-strappedentrepreneurs.“Theylivehand-to-mouth,”

DeKoszmovszkysays.“ThemoneytheymakeMondaywillbuy

Mondaynight’sdinner.Soitwasimportanttomakesurethese

businesseswereprofitableforthecleanersondayone.

“We’vegotacommitmenttodothispioneeringwork.Andwe’ve

gottheglobalreach.Ifwecancomeupwithabusinessmodelthat

works,wecanquicklyscaleitup,”hesays.”

Justin DeKoszmovszky ’99, MBA ’06, with the Community Cleaning Services management team with whom he worked to develop the business. (left to right): Dennis Mambo, Eliza Achieng, and Joseph Njenga. This was taken outside one of the public toilets CCS manages in Pangani, Nairobi.

DeKoszmovszky with CCS team members after a CCS biannual general meeting. “The gentlemen and lady I am standing with are all part of one of the CCS clean-ing teams from Kibichoi, Mathare, one of Nairobi’s larger slums. They are, in es-sence, SCJ’s business partners for the micro-franchise business we are pioneer-ing in Nairobi.”

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w w w.johnson.cor nell .edu 25

KrIstIn o’PlanIcK, MBa ’10: Making the Most of Tourism

Foreigninvestmentissupposedtospurlocaleconomiesandcreate

jobs.Sometimesitdoesneither.InEgypt,forexample,European

companiesbuiltnumeroustouristhotels,andthenstaffedthem

withnon-Egyptianworkers.Asaresult,90percentofalltourist

dollarsspentatsomeresortsendedupinEurope,saysKristin

O’Planick,whoworksfortheUnitedStatesAgencyforInterna-

tionalDevelopmentasanenterprisedevelopmentspecialist.

O’PlanickwitnessedtheprobleminherpreviousjobasaUSAID

contractorinEgypt.Atfirstglance,foreign-ownedtouristventures

reapedabonanza.“Theycouldsay,‘Lookhowmanytouristswe’re

bringingtothecountry,’”saysO’Planick.“Butifyoulookedat

capitalflows,muchofthemoneyflowedtoothercountries.”In

somecases,Egyptreapedlittlemorethanenvironmentaldegrada-

tion.“Egyptstillhaspocketsthatareundeveloped,”sheadds.“And

theyaredefinitelylookingtodofuturedevelopmentdifferently.”

DuringherstintinEgypt,O’Planicksupportedthedevelopment

oflocallyownedventuresthatwouldattracttouristspending.They

includedrestaurantsthatfeaturedindigenousfood,daytripson

camelback,andhandcraftingbusinessessuchasjewelry,wallhang-

ings,rugs,andleathergoods.Womanranmanyoftheseventures

tosupplementmeagerfamilyincomes.Whilethesebusinesseswere

tiny,theimpactwasoftenlarge.“Someofthewomentripledtheir

family’sincome,”shesays.

O’PlanickgravitatedtoeconomicdevelopmentafterherPeace

CorpsserviceintheWestAfricannationofGuinea.“Igotad-

dictedtotheideaofdoingworkthatismeaningful,”shesays.She

admitsthattheroadtoprogressissteep.“Insomeplaces,itseems

overwhelming,”shesays.Shefocusesonthosethingsthatcanbe

changed.“InEgypt,wewantedtoleverageforeigninvestmentto

benefitthelocaleconomyasmuchaspossible,”shesays.“Ourgoal

wastochangethesystem.”

egypt still has pockets that are undeveloped. and they are definitely looking to do future development differently.”

Kristen O’Planick, MBA ’10, in a work “victory” photo with a water truck that she and her team procured for a village along the southern Red Sea that didn’t have access to potable water. “The procurement was a long and painful process,” she says, “so when the truck finally cleared customs I had to have a celebratory photo with it!”

A picture from the camel market outside of Cairo — a very traditional place in what can be a very modern city.

26 cor nell enter pr ise • fa ll 2010

JustIn BaKule, MBa ’99: Saving The Cocoa Crop

Fortheworld’schocoholics,theoutlookisgrim.Chocolaterequires

cocoa,andintheworld’sbiggestcocoaproducer—theWest

AfricannationofCôted’Ivoire—cocoatreesaregrowingoldand

increasinglyunproductive.

“Atharvest,manyofthetreesliterallyhavenothingonthem,”

saysJustinBakule,aconsultantatFSGSocialImpactAdvisors,a

non-profitBostonfirmthathelpscorporationscraftstrategiesto

benefitboththebusinessesandthesocietieswheretheyoperate.His

latestclientisamajorchocolatecompanythatwantstoaddressCôte

d’Ivoire’sproblem.

Thecountrysupplies40percentoftheworld’scocoa.Ashrink-

ingcropthreatensthelivelihoodsofuptoonemillionsmallCôte

d’Ivoirefarmers,whotypicallyhaven’thadtheresourcestoreinvest

intheircocoatrees.Thegovernmenthashadlimitedresourcesto

helpthem.“It’sacountryalreadyincrisis,”saysBakule.“It’sbeen

splitbycivilwarsincetheearly2000s.”

Bakulehelpedhiscorporateclientdevelopacocoa-revivalplan

thatrecognizestheuniquerolesofhisclient,thegovernment,the

The world’s emerging economies want to grow. But it isn’t likely that they will follow the U.S. path of ever-expanding production and consumption. “It’s hard to think that you could take the same path the U.S. took and replicate it in China, India, Brazil, and some 125 other countries,” says Professor Mark Milstein, director of Johnson’s Center for Sustain-able Global Enterprise (CSGE). “You would need the resources of three Earths to do that.” The center brings that point home in its Sustain-able Global Enterprise Immersion program for first-year MBA students. The SGE Immersion requires students to apply critical thinking to some very tough issues, such as how the private sector can grow in an era of limits. “We want them to look at problems objectively with a business lens — problems such as poverty and ecosystem degradation,” said Milstein.

Last year, for instance, immersion students traveled to the Philippines, where the country is shutting old dumps and replacing them with new dumps run with modern technology. But progress can also cost jobs. The old dumps provided a livelihood for families that picked through the rubbish for recyclable trash, says Monica Touesnard, CSGE’s associate director. “Their way of making a living was vanishing.” The students worked on a World Bank project to find new employ-ment options for displaced waste pickers. The SGE Immersion aims to foster the analytical skills needed to tackle modernization issues, such as those that face the Philippines. “We tell our students to look at the issues that will really impact lives over the next century,” says Milstein. “Then they must ask them-selves if there is a product or service that the private sector could create to deal with those issues. If they can do that, they can have success in the marketplace.”

sustaInaBle gloBal enterPrIse IMMersIon

Justin Bakule, MBA ’99, in a cocoa orchard in Côte d’Ivoire, holding a cocoa pod.

G A M E

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w w w.johnson.cor nell .edu 27

farmers,andotherstakeholders.Itfocusesonboostingproductivity

byrehabilitatingexistingcocoa-growingareas.Farmerswillhave

improvedaccesstohigher-yieldingcocoatrees,agriculturalinputs,

andagronomicbestpractices.Investmentsininfrastructure,policy,

andthecommunitywillalsobeneeded.

“Thescaleofthisproblemiswhat’sdaunting.Thereareliterally

billionsoftrees,alltypicallyfarmedon1-3hectares,”saysBakule.

“Replacingthemtakestime,andnewtechnologiesmustbetaughtto

thefarmers.Youtakecuttingsfromyoung,healthytreesandgraftthem

tooldertrees,whichreinvigoratesthemwiththenewplantstock.”

Undertheplan,thegovernmentwillgrowtreestoprovidecuttings.

“Cocoaisthesingleingredientthatcannotbereplacedina

chocolatebar,”saysBakule.“Ifyouwanttohavechocolatebars,

you’vegottohavecocoa.”

ryan Kelley, MBa ’09: Our Man in Madagascar

Severalyearsago,theeasternU.S.plungedintodarknesswhenthe

powergridabruptlyfailed.Byandlarge,Madagascardoesn’thaveto

worryaboutsuchproblems;80percentofthecountrylackselectric

power.Mostresidentscookwithwoodstovesandlighttheirhuts

withcandlesorkerosenelamps.Unfortunately,asthesedevices

burn,theyfillhutswithnoxiousgasesthatcauseupperrespiratory

diseasesthataccountfor21percentofhospitalvisits.“IfyouorI

weresittinginthatroom,oureyeswouldbetearingandourthroats

wouldbeburning,”saysRyanKelley,whohandlessolarsalesin

MadagascarforToughStuff,aEuropeancompanythathopesto

transformtheislandnationthroughsolarpower.

Kelley’scompanywantstoleapfrogfossilandnuclearpower

solutions,andtakemanyofMadagascar’sresidentsdirectlyintothe

alternative-energyage.ToughStuff ’sprincipleproductisasolar-

poweredLEDlight,whichsellsfor$22.50andistoughenoughto

functionafterfallingfromasix-storybuilding.

Thelighthelpscutindoorairpollution,providesbetterillumina-

tionforstudents,andallowswomentocreatehome-basedbusinesses

intheeveninghours.However,evenatitsmodestprice,theproduct

isbeyondthefinancialreachofmanyhouseholds,sothereare

unusualpaymentplansavailable.Somepeoplepayoffthedeviceat

$3amonth.Others,wholiveahand-to-mouthexistence,canmake

dailypaymentsoftencents.“Theygototheirfield,harvestpartof

theircrop,sellitatthemarket,andearnenoughtocovertheirdaily

costs,”saysKelley.Thepotentialmarketforsolarlightsisenormous.

“Thereare1.4billionpeopleintheworldwithprimitivelighting.”

ToughStuffalsosellslow-pricedrechargeablebatteriesandcell

phonechargers.Alow-pollutionstoveisindevelopment.

ThebusinesswasperfectforKelley,whowantedajobthat

combinedsocialresponsibilityandbusiness.“ToughStuffaligns

mypersonalandprofessionalgoals.IfoundsomethingwhereIcan

makearespectablelivingandmakealargeimpactontheworld.”

LEFT: Ryan Kelley, MBA ’09, in Madagas-car with a man holding a solar-powered LED ToughStuff light.

BELOW: A woman using a ToughStuff batttery pack to charge her cell phone

cor nell enter pr ise • fa ll 201028

Jean-clauDe Balcet, MBa ’70: Boosting Crop Production In Benin

TheGreenRevolutionhaslargelymissedSub-SaharanAfrica’s

fast-growingnations,amongthemBenin,along,narrowcountry

sandwichedbetweenNigeriaandGhana.“InBenin,agricultural

productivityhasnotmarkedlyincreasedinpastdecades,”says

Jean-ClaudeBalcet,whoretiredasanagriculturaleconomistforthe

WorldBank,andnowhandlesspot-consultingjobsfortheBank.

“It’sthesameprettymuchalloverAfrica—asopposedtoAsia

wheretheGreenRevolutionhashadatremendousimpact.”

BalcetisnowonaWorldBankassignmenttohelpBenin

improveirrigationandintroducenewhigh-yieldseedsandbetter

fertilizers,whilegraduallyincreasingagriculturalmechanization.

“Thecountryhasonlyafewhundredtractors,”Balcetsays.“They

wanttocultivate20percentofthecountry’sfarmlandwithtractors

by2015.Now,it’slessthanonepercent.”

Atthesametime,Beninwantstodecreaserelianceonits

mainstaycottoncropandgrowmorefood.Thecountryhaslong

dependedoncottontosustainfarmersandbringinneededforeign

exchange.ButthatstrategyputsBenin’seconomyatriskshould

cottonpricesplungeorimportedfoodpricescontinuetorise.“Now

itmakessenseforpoorcountriestofocusmoreonfoodproduction,”

saysBalcet.“Foodhasbecomeveryexpensiveoninternational

markets.Adecadeago,itwascheap.”Beninhopestohaveenough

foodleftoverforexport.Targetcropsincluderice,millet,sorghum,

pineapples,cashewnuts,onions,andcarrots.

Afteryearsintheagriculturaldevelopmentfield,Balcetstillfeels

joywhenheseesprogress.“Whenfarmersincreasetheiryields,they

canfeedthemselves.Andtheycanhavesomeproductionlefttosell

onthemarkettogetcash,purchasebasicnecessities,andimprove

theirlivelihoods.”Inthedecadeshehasworkedinagriculture,he

hasseenalotofprogress.“ButnotasmuchinSub-SaharanAfrica

aselsewhere,”headds.“Themajorfactor,inmostcountries,has

beenalackofexpertise,oftencoupledwithpoorgovernanceand

politicalinstability.Theroadaheadisstilllong.”

G A M E

changers

now it makes sense for poor countries to focus more on food production. Food has become very expensive on international markets. a decade ago, it was cheap.”

Balcet visiting a World Bank agro-processing project in Mali, West Africa, where the women pictured had set up a workshop for drying fruit, vegetables, and herbs. As Balcet notes, dried products are easier to preserve, bypass the challenges of transporting fresh fruit, and have “an interesting ‘niche’ market in Europe and America where nuts, dried fruits, and herb teas are popular. In this area, mangoes were plentiful. With a gas oven and minimal additional equipment, women were able to dry the mangoes and pack them. That was a good business for them.”

Jean-Claude Balcet, MBA ’78, PhD ’98, in Mali, West Africa, in 2010. “This picture was taken during a field visit for the supervision of a World Bank project to help develop commercial agri-business,” says Balcet. “At some point we visited a train-ing center for women in business (the women are generally the ones involved in agro-processing in Africa).” Pictured are those responsible for the training center and those being trained, as well as colleagues and officials.

29w w w.johnson.cor nell .edu

Johnson’s new Emerging Markets Institute strengthens its position as a power player among top schools of management. By L indA BR A nd T M y ER s

TwoyearsagoJohnsonmaderaisingitsglobal

profileapriority.

Provokingthatdecisionwasthe

swiftlychangingglobalbusinesslandscape,

particularlytheemergenceofemerging

markets—placeslikeChina,India,South

America,andEasternEuropethatinvestors

hadoverlookedinthepastbutwerenow

pursuinglikeWileE.Coyotechasingthe

RoadRunner.

Andforgoodreasons.Theyoffer

extraordinaryinvestmentopportunities.

OnAugust16,2010,BloombergNews

reportedthatChinahadovertakenJapanto

becomethesecondbiggesteconomyinthe

world,withagrossdomesticproduct(GDP)

forthesecondquarteroftheyearat$1.337

trillion.Thenewsstorycitedaprediction

fromGoldmanSachs’chiefeconomistthat

thecountrywouldactuallysurpassthe

UnitedStatesby2027.

AndonSeptember8,2010,Business

WeekcitedpredictionsbyGoldmanSachs

strategiststhat“fastereconomicexpan-

sionandgrowingcapitalmarketsmaylift

emergingnations’shareofworldequity

capitalizationfrom31percenttodayto55

percentby2030.”

“Askedwhichwillbethemostattractive

regionoverthenextthreeyears,Ernst&

Young’spanelof809internationalbusiness

leadersputsChinaandCentralandEastern

Europeinfirstplace,”notesElenaIankova,

lecturerininternationalbusinessatJohnson.

“Indiaranksthird,followedbyRussia,

WesternEurope,andBrazil,”shesays.

AndKunChen,MBA’11,presidentof

theGreaterChinaBusinessClubatJohnson

andasummer2010internatJohnson&

JohnsonPharmaceuticalsinChina,recalls:

“Thegeneralmanagertheretoldme:‘No

onecansaynotoamarketlikeChina,with

aGDPthatgrowsat8+percentayear.’”

Butthat’sonlypartofthestory.

“Ourstudentsweretellingusthey

wantedmoreglobalexposure,andthe

companieswhohirethemweresaying

theywantedpeoplewithmorein-depth

globalexperience,”saysRandyAllen’68,

whoseresponsibilitiesasassociatedeanfor

internationalandcorporaterelationsinclude

globalstrategyandinitiatives.“Wealready

hadfacultywithglobalresearchinterests,

butwewantedtostrengthenthat.”

30 cor nell enter pr ise • fa ll 2010

A suRPRisE AdVAnTAgE“Wedidourduediligence,”saysKarolyi.

Theireffortsinvolved“someseriousbrain-

storming”withstudents,faculty,alumni,

andstaff,collectingstacksofrelevantdata,

andlookingcriticallyatwhat20topbusi-

nessschools,includingJohnson,weredoing

thatwas,andwasn’t,working.

Theirmostsurprisingdiscovery?

“Althoughthere’sanincreasingdemand

forknowledgeaboutemergingmarkets,

wefoundthatnotopbusinessschoolshad

centersdevotedtothestudyofemerging

marketsinamajorway,”saysChen.

“Alotofourpeersweredoingalotofin-

ternationalthings,butnotinareallycohesive,

coordinatedway,”Karolyicomments.One

reason:ManypeerMBAschoolshadlaunched

CIBERs[federalgovernment-sponsored

CentersforInternationalBusinessEducation

andResearch]asfarbackas20yearsago.

Becausetheythenneededtomeetgovernment

objectives“theirroleasCIBERswasforcing

themtobediffused,tobeallanddoall,but

notfocusinanyspecialway,”heexplains.

ThatawarenessledKarolyi,Chen,andAllen

toembraceamorefocusedapproach,with

emergingmarketsasthefocalpoint.“We

askedourselves,‘Howcanwetakeadvantage

ofouropportunityhere?’”saysKarolyi.

Theterm“emergingmarket”wascoined

in1981byAntoinevanAgtmael,aformer

WorldBankexecutive,whowaslooking

forawaytoencourageinvestmentsinthose

developingcountriesthathadlowGDPbut

highgrowth—thatwere,inessence,onthe

pathtobecoming“economicpowerhouses,”

saysKarolyi.Overlookedbackthenas

investmentopportunities,theyarenow

centerstage,hesays.

OnE Of A Kind“Wehomedinonemergingmarketsasour

internationalstrategyforthesereasons,”

saysKarolyi.“Theyarethehottestgrowth

“Wewantedtoleverageourresourcesto

createamuchmorepowerfullearning

experience,”saysProfessorDougStayman,

associatedeanforMBAprograms.

Thefirstorderofbusinesswastorecruit

twoseniorfacultyofprominencewhose

researchandteachinginterestswereinterna-

tionalandwhowantedtohelpshapeanew

internationalinstituteofsomekind.

Followinganintensivesearch,Andrew

Karolyi,afinancialeconomistfromOhio

StateUniversity,andYa-RuChen,anorga-

nizationalbehaviorspecialistfromRutgers,

acceptedtenuredfacultypositions,arriving

infall2009.

“AndrewandYa-Ruarebothterrific,”as-

sertsProfessorMarkNelson,associatedeanfor

academicaffairswhenKarolyiandChenwere

hired.“Theyaregreatresearchersandteachers,

andtheirinternationalexpertiseisexceptional.

Theyareabsolutelytherightpeopletobuild

ournewglobalinstitute,andwewereexcited

whentheychosetocomehere.”

Onthesurfacethetwoseemworldsapart

—Karolyistudiesinternationalmarketsand

Chenlooksathowpowerandstatusvary

acrosscultures.Buttheybothradiateenergy

andenthusiasmforthetaskathand,which

isonereasontheymakeapowerfulteam.

Chenseestheirdifferencesasastrength.

“We’reauniquecombination,whichspeaks

tothekindofinterdisciplinaryfocusand

culturalvaluethatJohnsonhas.Alotof

businessschoolsliketotalkaboutthat

approachbuttheydon’treallydoit.Herewe

doit,andIthinkit’sfantastic.”

Onecommonality:theyarebothbelievers

inempiricaldatatobackupresearchclaims.

Thatwastheapproachtheyusedwiththeir

ambitiousandprobingyearlongstudy,

undertakenwithAllen,onhowinternational

businessistaughtatJohnsonanditspeer

institutions,andwhatisneededhereinlight

ofthechangingglobalbusinessenvironment.

“Although there’s an increasing demand for knowledge about emerging markets, we found that no top business schools had centers devoted to the study of emerging markets in a major way.” yA-Ru ChEn, PROfEs sOR Of M A n AgEMEn T A nd gLOBA L BusinEs s

gREATER gLOBAL PREsEnCEEnhancedglobalprogramming,curricu-

lum,andpresencewerefeaturedpriorities

inoneofsixmajorinitiativesintheschool’s

2008StrategicPlan,Allenpointsout.The

schoolalreadyhaddonealot,including

moreoverseasinternships,studytours,

EMBAglobalprojects,andMBAexchange

programs—manyinemerging-market

countries.Theonlypiecesofthepuzzlethat

seemedtobemissingwereastrategyanda

programthattiedallthoseeffortstogether.

G E T T I N G M O R E

global

31w w w.johnson.cor nell .edu

enterpriseonthisplanetrightnow.Theyare

topical,timely,anddistinctive–noother

peerinstitutionisstudyingtheminamajor

way.There’sagreatdemandforknowledge

aboutthem.Andwediscoveredthat

creatinganinstituteonemergingmarkets

fitsbeautifullywithintheCornelltradition

ofoutreach.”Theuniversityhashad“a

positivepresencefordecades”withinmany

ofthecountriesthatnowhaveemerging

economies,henotes.Earlierprogramshave

soughttoimprovemedicalcare,agricultural

output,nutrition,andwaterqualityin

primarilypoorcountries,addsAllen.

“Emergingmarketsmadesenseforus,”Al-

lensays.“Alotofourstudentsandalumniare

interestedinthem,soarealotofbusinesses,

andalotofourfacultyarealreadydoing

researchonthem.Thirtypercentofour

studentsareinternational,andsomeofour

alumnibasefromIndia,China,andLatin

Americaarestartingtogobacktotheirhome

countriesandparticipateintheireconomies.”

Theconceptforanemergingmarket

institutewonoutovertheideaforacenter

onaparticularcountry,whichwasalsocon-

sidered,because:“Somespecificgeographic

areasmayfadeininterestovertime,butthere

willalwaysbeemergingmarkets.”Allensays.

OnSeptember3,2010,Johnson

facultyunanimouslyapprovedtheproposal

presentedbyKarolyiandChentolaunchthe

EmergingMarketsInstitute,thefirstofits

kindatanyleadingbusinessschool.

RAVE REsPOnsEs“TheEmergingMarketsInstituteand

relatedcourseswillhelpstudentsbemuch

morefocusedandbetterpreparedtowork

successfullyinthechangingglobalenviron-

ment,”saysKunChen.

AdvisorycouncilmemberNellCady-

Kruse,BS’84,MBA’85,calledthe

institute“therightideaattherighttime.”

BasedinHongKong,Cady-Krusehas

overseenCreditSuisse’sriskmanagement

functionintheAsiaPacificregionsince

2005.Shesays:“Onecannotoverstate

howdramaticthepaceofchangeishere

andhowimportantitistounderstand

theimplications.Theinstitutewillnot

onlyenhanceteachingandresearchabout

emergingmarkets,butwillgivefirmslike

mineunparalleledopportunitiestorecruit

studentswithexcellentcredentials.”

NeelLakhani,MBA’07,MILR’08,an

associatewithBooz&CompanyinDubai

whodoesstrategicconsultingintheMiddle

EastandAfrica,commented:“Knowledge

ofemergingmarketsiscriticaltodoingbusi-

nessthesedays,anditsimportanceisonly

likelytoincrease.Thenewinstitute’splanto

produceempiricalresearchonthesubject,

somethingwhichhasbeenrelativelylimited

elsewheresofar,willmakeadifferencenot

onlyfortheschoolbutforthewaycompa-

niesdobusiness.”

PROMOTing diALOguE On EMERging MARKETsJohnson’s new Emerging Markets Institute is co-sponsoring these upcoming conferences together with other leading business schools. Check Johnson’s Web site for details.

• singapore, March 1-2, 2011: Joint Applied Research Forum on Asian Asset Management, with the National University of Singapore’s Center for Asset Management Research and Investment

• Philadelphia, april 2011: 2011 Impact Conference on Sovereign Debt Risk, with Wharton’s George Weiss Center for International Financial Research

• Beijing, June 2012: Inaugural global leadership conference, with the University of Peking’s Guanghua School of Management

• nanjing, china, June 5-6, 2011: “Enterprise Management in a Transitional Economy and Post-Financial Crisis — International Conference on Multinational Business Management,” with Nanjing University Business School

POwER shifTIn purchasing power parity (PPP) terms, currently, the G7 claims more than half of G20 GDP compared to approximately one third in the Big Five+M economies (Brazil, Russia, India, China, Indonesia, the traditional “Big Five” economies, and Mexico); in 2050, the Big Five+M economies will significantly overtake the G7.

90,000

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

02009 2030 2050

GDP Real US$, billions BIG FIvE+M G7

Source: Author’s projections in “The World Order in 2050,” Policy Outlook series, Carnegie Endowment for In-ternational Peace (April 2010).

32 cor nell enter pr ise • fa ll 2010

gLOBAL REsEARCh & OuTREACh Thenewinstituteincludesanactive,internal

grantprogramtoencourageandenablefac-

ultytodomoreresearchrelatedtoemerging

markets.“We’llputonacademicconferences

toshowofftheresearch,hereandelsewhere,

andinvolveotherexpertsfromtopschools

aroundtheworld,”Karolyisays.

Chenadds:“We’llhaveafellows

program,withonetotwovisitingscholars

cominghereforshortperiods,startingin

2011.They’llcollaboratewithourfaculty

onresearchprojectsinvolvingemerging

marketsandhelpingtodevelopnewcase

studiesontheirregions.”

Overtime,theinstitutewilldevelopa

repertoireofcasestudiesrelatedtoemerg-

ingmarkets,saysKarolyi,“whichcould

potentiallybeusefultoallourcolleagues

intheircoursework—bringingemerging

marketsmorefullyintothecurriculum.”

Karolyihadgreatsuccessrecentlysharing

anemergingmarketcasestudywrittenby

hisstudentswithanaudienceofalumni,in

“We homed in on emerging markets as our international strategy because they are the hottest growth enterprise on this planet right now; they are topical, timely, and distinctive.” A ndRE w K A ROLy i, PROfEs sOR Of f in A nCE A nd gLOBA L BusinEs s

Central Europe and Eastern Europe

China

India

Russia

Western Europe

Brazil

Northern America

Middle East

Northern Africa

Japan

Oceania

0% 10% 20%

23%

25%

31%

31%

37%

38%

39%

40%

41%

48%

51%

52%

30% 40% 50% 60%

South-Eastern Europe

MOsT ATTRACTiVE REgiOns OVER ThE nExT 3 yEARsCompanies from developed economies will continue to expand in emerging markets to grow their business, improve their cost structure and/or tap skilled labor pools.

AndBobStaley’58,MBA’59,retired

chairmanofEmersonElectricAsia-Pacific,

andvicechairman,EmersonElectricCom-

pany,observed:“AtEmerson,Ilearnedthat

understandingdifferentbusinessculturesis

akeytosuccess.Thisnewinstitutewillgive

tomorrow’sbusinessleadersagoodexposure

to,andunderstandingof,theglobalmarkets

thattheirfirmsserve,particularlythefastest-

growingones—theemergingmarkets.”

TRAining ThE “nAVy sEALs” Of gLOBAL BusinEss Karolyi’sgoalistomakethenewcenterthe

placewherepeoplecomeforexpertiseon

allaspectsofdoingbusinessinemerging

markets.“We’llhaveresearch,teaching,

andoutreachcomponentsandafocused

concentrationofresourcesthatwe’llmanage

anddeploytothoseactivities,”hesays.

Theschool’sglobalbusinessconcentra-

tionwillberevampedtofitemergingmar-

ketsandofferedasanintensivesecond-year

concentrationforstudentswhoarecom-

mittedtotakingonadditionalchallenges.

Itwillberigorous,saysKarolyi.“Ireferto

ithalf-jokinglywithcolleaguesasthe‘Navy

Seals’ofGlobalBusiness.Wethinkthat

notonlywillstudentswanttotakepartbut

prospectiveemployerswhoaredoingmore

businessinthesepartsoftheworldwillwant

toseekthesestudentsoutbecausetheyhave

theseskills.”SOuRCE: Ernst & Young’s 2009 European attractiveness survey. RESPONDENTS: 809 international business leaders. Total > 100% many possible answers

G E T T I N G M O R E

global

33w w w.johnson.cor nell .edu

collaborationwithJohnsonAssistantProfes-

sorGlenDowell,astrategyexpert.Thecase

involvedatelecommunicationsgiantinIndia,

BhartiAirtel,acquiringaKuwaiticompany

thatofferedaccesstocustomersin13African

countries.“ThequestionwaswhetherBharti

paidtoomuch,”saysKarolyi.“Sixtypeople

wantedtodiscussthisverytopical,interest-

ingcase.Wehadanactivediscussion,rave

reviews,andagreattimeteachingit.”

Inadditiontoherresearch,oneofChen’s

jobsatJohnsonisfacultydirectorofExecu-

tiveEducationPrograms.PekingUniversity’s

GuanghuaSchoolofManagementand

NanjingUniversity’sGraduateSchoolof

BusinessbothhavecertificateexecutiveMBA

(EMBA)jointprogramswithJohnson,and

Chenanticipatescreatingmorecertificate

programswithpremierChinesebusiness

schoolsinthecomingyears.Thelogistics

canbechallenging,androadblocksoften

requireastutenegotiations.Sherecounts

spendingoneafternoonlastAugustpersuad-

ingtheU.S.ConsulateinChinatoreverseits

decisiontoturndownvisaapplicationsfor50

EMBAstudentsfromNanjingUniversity.“I

realizedthat,asweincreaseourpresencein

China,we’vegottomakesurethateveryone

involvedisonourside,”shesays.

why (And hOw) insTiTuTEs wORK“Institutesandcentersaretheenginethat

drivesthetrain,”saysStayman.Byproviding

morestaffandresources,theyleadtomore

interactionsbetweencompaniesandfaculty,

heexplains,whichleadstomoreresearch

thatsolvesreal-worldproblems.Facultythen

takethisresearch,withtheirconcomitant

problemsandsolutions,intotheclassroom,

providingstudentswithextraordinary

learningopportunitiesthatmakethem

better-preparedforthecorporateworld.

“TheParkerCenterforInvestment

ResearchandtheCenterforSustainable

GlobalEnterprisearetwogreatexamplesof

centersatJohnsonthatdothat,”Stayman

says.Whiletherewillbesynergiesamongall

theschool’scenters,theEmergingMarkets

Institutewillputitsownspinontheshapeit

takes.“Rightnow,weareseekingcorporate

partnerswhowillengagewithfacultyon

questionsrelevanttoemergingmarketsand

providedataandavehicletoanswerthose

questions,”saysStayman.

“Wehopetogatheragroupof10to

30companieswhowillbeourcorporate

sponsors,”addsChen.“Theywillpaya

membershipfeefortheactivitiesthatwe

willhave.Andofcoursewehavetodeliver

valuetothem.”

ChenmadetwooutreachtripstoChina

thissummer,andStaymanandAllenspent

twoweeksinIndiaandChinainAugust

makingconnectionstheyhopewillhelpthe

schoolexpanditsinternationalreach.“One

thingwesawisemergingmarketsarenow

sellingtootheremergingmarkets,”says

Allen.Theinstitutehopestobethecatalyst

forstudyingtheircommonissues,shesays.

“Thetripalsogaveusachancetotest

theconceptoftheinstitutewithdiffer-

entstakeholdersintwomajoremerging

markets—alumniwhoworkthere,

leadersofcorporations,anduniversities

thatoperatethere,”Allenadds.“Itwasan

opportunitytoaskiftherearerefinements

weshouldmake,andwhetherpeopleare

willingtosupportus.Theidearesonated

witheveryone,andDougandIwentaway

withthesensethattherearetremendous

opportunitiesinbothplaces.”

MEAsuRing suCCEssJohnson’sEmergingMarketsInstitutewill

bere-evaluatedinthreeyears,butthemagic

numberforgaugingitssuccessisfiveyears

fromnow.

“Wewillhavesucceeded,”saysChen,

“if,infiveyears,we’reviewedasthego-to

“One cannot overstate how dramatic the pace of change is [in China] and how important it is to understand the implications. ” nELL CA dy-K RusE ’8 4, MBA ’85, CREdiT suis sE, hOng KOng

placeforkeyinformationaboutemerging

marketsbyourpeerinstitutionsaswellas

ouralumni,faculty,students,andcorpo-

ratesponsors.”

“Ifwe’resuccessful,infiveyearsour

admissionsstaffwillbeshowcasingthe

instituteasauniqueopportunityforour

students,”addsKarolyi.“Employerswill

beseekingthemoutaspotentialleaders

becauseoftheiruniqueskillsets,and

ouralumni,aswellasfacultyfromother

schools,willactivelyengageourfacultyas

thebestresourceforthelatestwisdomon

what’shappeninginemergingmarkets.”

Thelastwordonthesubjectcomesfrom

Allen.“Ifotherschoolsimitateus,”shesays,

“weknowwewillhavebeensuccessful.”

34 cor nell enter pr ise • fa ll 2010

ikemanysuccessfulleaders,JimGoldmanthinks

outsidethebox.Fortheaptly-namedGoldman,the

boxinquestionisa14-caraticon—GodivaChoco-

latier’sgold-tonedballotin.

Asoneoftheworld’sbest-knownpackages,thatboxconfers

astrongadvantage,saysGoldman,presidentandchiefexecutive

officerofNewYork-basedGodiva.Butit’salsoagildedcage.

“WearesaddledabitwiththeconsumerperceptionthatGodivais

onlyforspecialoccasions—greatforValentine’sDayandmaybefor

Christmas,buttooexpensive,tooluxuriousformoreregularconsump-

tion,”Goldmansays.Thatperception,headds,needstochange.

Thesedays,Godivaisbreakingoutofthegoldenboxinabig

way,seekingtoconnectwithconsumersinmanymoreplacesand

onmanymoreoccasions.“Godivaneedstoberelevant12monthsa

year,”Goldmansays.

ThepushtomakeGodivaabrandforallseasonsgoesbackat

leastto2004,whentheCampbellSoupCompanynamedGoldman

presidentofitsGodivabusinessunit.“Jimimprovedourcompeti-

tiveness.Hecreatedawholebevyofinnovationsthatfoundtheir

wayintotheGodivastores,”saysCampbell’sCEODougConant.

Theatricaltouches—employeesdippingstrawberriesinchocolate

orwhippingupfrozen“Chocolixer”drinks—drewcustomersinto

Godivaboutiquesandkeptthemcomingbacktoseewhatthestore

wouldserveupnext.

Butopportunitiestotransformthebrandreallytookoffin2008,

whenCampbellsoldGodivatoYildizHolding,parentoftheÜlker

Group,aprivately-heldTurkishfoodmanufacturer.

Thenewparent’schairman,MuratÜlker,isasavvybusinessman

andavisionaryleader,Goldmansays.“Hehasamuchlongerper-

spectiveonthings,notquarter-to-quarter.”CampbellgaveGodiva

strongsupport,hesays,butapubliclytradedfirmmustconsiderits

shareholdersfirst.“AsaFortune500company,Campbellcouldnot

affordtotaketherisksandmaketheinvestmentsthatwe’remaking

nowtorealizeourfullpotential.”

WithÜlker’sbacking,Goldmanandhisteamaregoingallout

toputbothtraditionalGodivatreatsandagrowingassortment

ofnewproducts—fromicecreamparlortrufflestodippedOreo

cookiestoindividuallywrappedGodiva“Gems”—intomoreand

morecustomers’mouths.“Overthepasttwoyears,wehave

rampedupourinnovationgametoalmostadizzyinglevel

ofactivity,”hesays.

Taking on the White SpaceGodivahasroomtogrowbecausethebrandhasplentyofwhat

Goldmancalls“whitespace”—marketopportunitiesithasn’tseized

inthepast.Especiallyduringarecession,hesays,amakerofpremium

chocolateneedstoservechocolateaficionadoswherevertheymaybe.

Tofillinthatwhitespace,Goldmanandhisexecutiveteam

arepursuingthreemainstrategies:expandingintonewcountries,

introducingnewproducts,andsellingthroughnewchannels.

Alreadywell-establishedinNorthAmericaandJapan,Godiva

recentlyarrivedinChina,withplansfortenboutiquesinfourcities

by2011.InOctober,itopenedtheworld’slargestGodivastore—a

boutique-plus-café—inShanghai.Godivadebutedthissummer

inIstanbul,ÜlkerGroup’sheadquarterscity,andit’sexpandingin

Australia.ThecompanyiseyeingSouthKoreaandaimstodevelop

astrongerpresenceintheMiddleEast,Goldmansays

Withitssecondstrategy,Godivaisencouragingconsumersto

reachforitsproductsonamuchbroadervarietyofoccasions.That

meansexpandingthepopularnotionofGodivachocolateasagift.

“Godivaisgreatforthatemotional,specialgiftforValentine’s

Day,butmaybealittlebitoverthetopforgivingtothepersonwho

tookcareofyourdogovertheweekend,”Goldmansays.That’s

thetraditionalview.ButGodiva’snewgiftbaskets,bakedgoodsor

holidaytreatsmightbejusttheticketforadog-sittingneighbor.

Godivaalsohasdevisedproductsforpeoplewhowanttobuytreats

forthemselvesortosharewithco-workersorfriends.“Godivaisn’twell

developedinthoseusageoccasions,andyetthey’rehugeyear-round,”

Goldmanobserves.Thatcategoryincludesalineofchocolatetablet

barsandtheGodivaGems,whichsellinfour-ouncebagsfor$4.99.

Tomarketproductsforanytimeconsumption,Goldmanandhis

teamhavedecidedtheycan’trelysolelyonGodiva’straditionalretail

venues—departmentstoresandGodivaboutiques.Sostrategynumber

threecallsforbroadeningdistribution.In2009,Godivastartedselling

chocolatebarsandGemsinpharmaciesandgrocerystoresintheU.S.

Itwasacontroversialdecision.“It’stheonethatIthinkwe,asan

organization,grappledwiththehardest,”Goldmansays.Butgiven

thepresencethatpremiumchocolateshavegainedongroceryand

drugstoreshelves,Godivacouldn’taffordtoholditselfaloof.

ResearchshowedthatcustomersintheU.S.appreciatedthe

chancetobuymoreimpulse-orientedproductsfromGodivaina

broaderrangeofoutlets,Goldmansays.Whilerespondingto

thosecustomers,thecompanyalsocontinuestocookup

LProfile in leadershiP: Jim Goldman, MBa ’85, President and Ceo, Godiva Chocolatier

By Merrill douglas

A Brand for All Seasons

Co

urte

sy o

f Go

diva

Ch

oc

ola

tier

36 cor nell enter pr ise • fa ll 2010

fresh,innovative,andcustomizedproductsforsaleinitsownretail

stores,headds.

Godiva’straditionalimagewasn’ttheonlyfactorthatmade

movingintothemassmarketaboldstep,saysKrisBreuer,Godiva’s

seniorvicepresidentofhumanresources.Besideschallenging

Godivatomaintainitsauraofprestigewhileappealingtoabroader

market,thestrategydemandedthatthecompanydevelopnew

marketinganddistributionskills.

“You’relookingatdealingwithbrokernetworks,whichwe’d

neverdonebefore.Andyou’reentrustingyourbrandtoplaceswhere

youdon’thavecontroloverwhatitlookslikeontheshelf,”says

Breuer,whofirstworkedforGoldmanwhenheheadedCampbell’s

FoodandBeveragedivision.“Youhavetolookathowtoadvertise,

howtokeeptheimagealivewhilegettingthechocolateintothe

mouthsofeverydayconsumers.”

Godiva’sluxurygiftbusinessoperatessomethinglikethefashion

business,drivenbytheseasonsandtheneedtobuildexcitement,

saysDaveMarberger,thecompany’schieffinancialofficer,whoalso

workedforGoldmanatCampbellFoodandBeverage.“That’sa

muchdifferentapproachthanwhenyouputanewproductintoa

grocerystore.”

Sofar,Godiva’sbroaderdistributioneffortsfocusmainlyonNorth

America.“Ourgo-to-marketstrategyisdifferentbycountry,butour

desiretoberelevant12monthsayearsandaleaderacrossthebestof

everythingchocolatecutsacrossallmarkets,”Goldmansays.

Thenewstrategiesarepayingoff.“Despitethefactthatecono-

miesarestillsluggishinmostplacesaroundtheworld,ourbusiness

nowisgrowingdouble-digits,”Goldmansays.“We’reputtingup

betternumbersthanwe’vehadinalongtime.Andwefeellikewe’re

justgettingstarted.”

Lifesavers Get a LiftThisisnotthefirsttimeGoldmanhasmadeboldmovestore-energize

abrand.HisleadershiphelpedtotransformNabisco’sLifesavers

division,saysConant,whoheadedNabiscobeforehemoved

toCampbell.AspresidentofLifesavers,Goldmandecided

thatthismature,modestly-growingbrandcouldrisetothetopofthe

confectionsindustry.Heprovedright.

“Thesecretwasfindingnewwaystomarkettraditionalproducts

whilerampingupbusinessdevelopmentandcreatingalargeportfolioof

newproductsthatleveragedwhatwewereabletodowell,”Conantsays.

AsheadofNabisco’srefrigeratedfoodsbusinessinthe1990s,

whenNabiscoacquiredParkayMargarine,Goldmanbuckedtradi-

tionbyintroducingthreetiersofmargarineproducts—premium,

popular,andvalue-priced.

“Assimpleasthatsounds,thatwasaradicalstepforthemargarine

category,”saysColinWatts,thenNabisco’sheadofmarketingfor

RefrigeratedFoodsandnowchiefinnovationofficeratWalgreens.

“Wealwaysusedtojokeaboutgettingvoicemailsfromhimwith

hislatestideainthemiddleofthenightandatanytimeofday,”says

SeanConnolly,presidentofCampbellUSA,whoworkedforGold-

manasvicepresidentofFoodBrandsatCampbell.“Hewasalways

thinkingabouthowtotakethebusinesstoawholenewlevel.”

AtGodiva,someoftherecentattemptstotakethebusinesstoa

wholenewlevelhavesparkedskepticismalongwithexcitement.In

particular,Breuercitesthemoveintopharmaciesandsupermarkets.

ButwhenGoldmanwantstosellaconcept,histenacity,diplomacy,

andenthusiasmusuallywintheday,shesays.“Hetendstobealeader

whocaninspireothers,whomotherswilltakealeapoffaithfor.”

Goldmanbringstremendousenergytohisroleasacorporate

leader,Marbergersays.“Whenhefeelsstronglyaboutsomething

that’sgoingtodrivethebusiness,anddrivevalue,heisjustpassion-

ateaboutit.Andhe’srelentless.”

Adeepinterestinhumandynamics—aninterestthatgoes

backtohisdaysasanundergraduatepsychologymajor,summer

campcounselor,andhighschoolteacher—isoneofthekeysto

hissuccessasanexecutive,saysGoldman.“Idon’tthinkyoucan

besuccessfulifyoucan’tworkwithpeoplesuccessfully,ifyoucan’t

motivatethemandidentifytalent.”Hetakesgreatprideinseeing

howmanyofthepeoplehehashiredovertheyearshavegoneonto

achievegreatthings,hesays.

AnotherkeytoGoldman’sleadershipishisabilitytotakestock

ofasituationandthenmakeafirmdecision.“Over-analyzing

canoftenleadyoudownthewrongpath.”Goldmansays.“Asa

company,we’renotgoingtobesittinghereattheplatewiththebat

onourshouldersandbeafraidtoswing.”

TherewillbemanyoccasionstotakedecisiveswingsasGodiva

continuestopursueitsnewstrategies.Thetrickwillbetochoose

thoseswingswisely.

“Wehavetomakesurewefocusintherightareas,”Goldman

says,“thatwedoitinaqualitywayandthatwedon’toutstrip

ourabilitytoexecutewithexcellence.”

espite the fact that economies

are st i l l s luggish in most places

around the world, our bus iness now

is growing double-dig its. And we feel l ike

we’re just gett ing star ted.”

– Jim Goldman, MBA ’85

37w w w.johnson.cor nell .edu

MinisterofFrance!”Alongwith

classmate,John Belknap ’68,

MBA’70,Robertalsoservedonthe

boardofeMergeInteractiveInc.

C L A S S O F 1 9 7 3

John A. Norris, JD ’71isCOO

ofHealthDiscoveryCorporation

(HDC)andaformerprincipal

deputyFDAcommissioner.

HDCisaleadingdeveloperof

analyticsenginesforpersonal-

izedmedicineuses.

C L A S S O F 1 9 7 5

William F. Gibson, MPA ’75,be-

cameCOOwithAlRajhiCapitalin

April,to“leadtheinfrastructureof

agrowingfirminadynamicpartof

theworld.”ARC,basedinRiyadh,

istheassetmanagement,brokerage,

andinvestmentbankingarmofthe

largestbankintheMiddleEast.

Richard Greene Jr.isdirector,

healthandresidentsupportser-

vices,fortheNewYorkCityHous-

ingAuthority.Acareerhospital

What’s News With You?Pleasesendupdatesaboutyourcareer,family,honors,orothernews.Yourclassmateswanttohearfromyou!

SubmitClassNotesonlineatwww.johnson.cornell.edu/alumni

Callusat607.255.9437,orfaxusat607.255.2075

Emailusatalumni@johnson.cornell.edu

MailusatAlumniAffairs,TheJohnsonSchoolatCornellUniversity,235SageHall,Ithaca,NY14850

Cornell EnterpriseishappytopublishphotosalongwithyournewsintheClassNotessection.We’rehappytoscanandreturncolorslidesandprints,andwecanusedigitalphotosiftheresolu-tionishighenough(werecommendatleast300dpiat4"x6").

(E)denotesagraduateoftheExecutiveMBAprogram

(CQ)denotesagraduateoftheCornell-QueensExecutiveMBAprogram

C L A S SC L A S S

C L A S S O F 1 9 7 0

Dave Hoppock ’68,most

recentlyatechnicalconsultantand

co-ownerofastartupcomputer

company,hasservedintheAir

ForceandheldpositionsatProctor

&Gamble,ArthurAnderson,and

WellsFargoBank.Nowsemi-

retired,heishelpinghisdaughter

withherstartup.Marriedwithtwo

children(30and33),helivesin

Orinda,Calif.

Robert S. Spencer ’69isglobal

chieffinancialofficeratBaker&

McKenzieinChicago,aglobal

lawfirmwith68officesin40

countries.Robertbeganhiscareer

withArthurYoung&Co.and

movedontoworkforPepsiCo

in1981.“Forthenext11years,

Iheldanumberoffinanceand

operationalrolesmainlyinthe

InternationalSnackFoodbusiness

(basedinDallasandItaly),

primarilyfocusedonenteringand

developingnewmarketsthrough

acquisitionsorjointventures,”

hewrites.HejoinedBaker&

McKenzieinChicagoin1993as

thechieffinancialofficer,leftafter

fouryearstojoinaworldwideHR

consultingbusiness,but“returned

toBaker&McKenziein1999

attherequestofthethennew

chairman,whoisnowtheFinance

C L A S S O F 1 9 6 1

Robert Claypool ’58retired

CEOofGATX,aChicago-based

equipmentfinancecompany,

andhiswife,Nan(Tetzlaf)’61,

“haveenjoyedretirementwith

extensivetraveling,havingvisited

allsevencontinents.”Fouroftheir

sixchildrenhaveCornelldegrees,

“includingoneMBA’er,Robert

Claypool Jr., MBA ’03.”

C L A S S O F 1 9 6 3

Tom Angearreceivedthehonorary

degreeofDoctorofLawsfromthe

UniversityofNottingham(U.K.)

inJune.Hewasalsoelectedtolife

membershipstatusontheCornell

UniversityCouncil.Tomisthe

benefactoroftheAngearEuropean

Scholarship,whichawardsEU

nationals$10,000tostudyatthe

JohnsonSchool.

C L A S S O F 1 9 6 6

Henry Shieldisabuilderandland

developer,nationallyrecognized

forhisworkinthepreservation

andrestorationofhistoricsites,

includingsixthathavecolonial,

Revolutionary,orCivilWar

significance.Henryisalsoa

photographer(www.andyshield-

photography.com).

administrator,hetransitionedtoa

newbutrelatedfield,publichealth,

eightyearsago.“Theeconomic

stingwassignificant,butthejob

hadjustbeenestablished,hadgreat

appeal,andinvolveddevelopinga

programthatwouldimprovethe

healthstatusandqualityoflifefor

theresidentsofpublichousingin

NYC,”hewrites“Hardwork,less

stressandmuchsatisfactionchar-

acterizetheposition.Iamenjoying

thehelloutofitandmakingsome

progressinsomeareas...inspite

ofadvancingage(Dyckmanand

Thomas’emphasisonphysical

fitnesscontinuestoinspireme

afteralltheseyears.)DianeandI

haveason(30)anddaughter(27)

whoaredoingwell.Leisuretimeis

spenttraveling,mountainbiking

(butnotonmountains),golfing,

andcollectingvintagebooksby

African-Americanauthors.Peace.”

William M. Powers, MPA ’75,is

CEOofBonnieBrae,aresidential

treatmentandspecialeducation

centerservingNewJerseyboys

ageseightthrough18.BonnieBrae

gainednationalattentionwhenits

KnightsDrumCorpswasinvited

toperformatPresidentBarack

Obama’sinauguralparade.

C L A S S O F 1 9 7 6

Robert G. Falter receivedthe

2010EducatoroftheYearaward

T H E

1960s T H E

1970s

38 cor nell enter pr ise • fa ll 2010

ing,aswellasongoingconsultation

—workingwithclientstoimprove

andenhancetheirprogramswhile

meetingregulatoryrequirements.

Stephen Semlitz ’75ismanaging

directorofHessEnergyTrading

Company,LLC,inNewYorkCity.

C L A S S O F 1 9 8 0

Carrie Byrns Villsays,“Lifeis

goodinMinnesota.Mybanking

skillsarecominginhandyasIam

doingmorenonprofitwork.Ihave

beenmarriedover20yearstoNeil

Vill,whoseworkbroughtusto

Minn.12yearsago.Wehavetwo

girls,ages20and13.”

C L A S S O F 1 9 8 1

Jeffrey Berg ’79, MEng ’80,is

director,emeritus,ofPRTMMan-

agementConsultants.Heandhis

wife,DebraPaget,haveahomein

Scottsdale,Ariz.,andspendwinter

andspringthere,andsummerand

fallinWestchesterCounty,N.Y.

Jeffcontinuesasco-chairofthe

AA&DCommitteeoftheJohnson

School’sAdvisoryCounciland

isinvolvedinnumerousother

Cornellvolunteeractivities.

Barbara BjornsonisCFOatthe

Mass.SocietyforthePreventionof

CrueltytoChildren.Shesays,“I

amthrilledtobepartofamission-

fromtheWorcester,Mass.,

regionalassociationofrealtors.

HeretiredfromtheU.S.Public

HealthServicein2001,afterserv-

ingasacorrectionalhealthcare

administratorandlicensednursing

homeadministrator,andbecamea

licensedrealestatebrokerin2004.

Heandhiswife,Kathy,livein

Shrewsbury,Mass.

Hiroyuki Hosokawaretiredfrom

hisjobasaninternationalspecialist

foranintegratedtradingcompany

inJapan,andis“now…helpingour

familybusiness,”andvisitingthe

U.S.twiceayear,“whereIenjoy

mindingmygrandchildrenand

playinggolf.”

Richard Marin ’75 reports,“My

dayjobafter35yearsonWall

Streetisturningarounda$2Bdis-

tressedrealestatecompany,which

wehavelargelydone;nowplanto

turnitintoadistressedrealestate

fund.”Heandhiswife,Kim,live

inNewYorkCity,butmaintaina

homeinIthaca,whereheteaches

threecoursesatJohnson.They

havethreechildren,twoofwhom

attendedCornelland“onewho

hopesto.”

Phyllis Patrick, MHA ’76,is

co-founderandmanagingdirector

oftheAPHealthCareCompliance

Group,whichprovidescompliance

advisoryservicestohealthcare

organizationsandcontractors.

Theseservicesincludecompliance,

privacyandsecurityprogramas-

sessments,development,andtrain-

T H E

1980s

driventeamofgreatpeople.Check

outourwebsiteatmspcc.org.”

Catharine Deelyhasastrategic

marketingandcommunications

consultingpracticefornonprofits

inStockbridge,Mass.Shesays,

“TheBerkshires…iswhereI’m

rootednow.Astrongcreative

andtourismeconomykeepsthis

rurallivinglively.…Cornell

continuestocomeupregularlyin

conversationremindingmethat

I’mgratefulforthelife-changing

experience—andyes,Ihavemade

provisionfortheschoolinmywill

—haveyou?!”

Barry Massarskyispresident

ofMassarskyConsultingInc.in

NewYorkCity.Heandhiswife,

Cynthia Wilson Massarsky,live

inTenafly,N.J.Theyrecently

joinedtwo’81classmatesand

theirspouses—Joseph Quilland

hiswife,Mary;Marty Lasherand

hiswife,Wendy—onaJersey

Shoreouting.

Christopher Multhaufis

executivedeanoftheCollege

ofManagementandBusiness

atNational-LouisUniversityin

Chicago.Hesays,“FellowJohnson

SchoolalumDave Mulliganis

anactivememberofouradvisory

boardandnevertiresofreminding

methatIwasplacedonscholastic

probationaftermyfirstsemester

attheJohnsonSchool...Daveand

I…foundedFirstCommonwealth,

amanagedhealthcarecompany

fiveyearsaftergraduating…tookit

publicin1995,andultimatelysold

ittotheGuardianLifeInsurance

Companyin1999.Sincethen

we’vepursuedarangeofinterests

generallyinthenon-profitarea.”

C L A S S O F 1 9 8 6

Doug Batesisco-founderandchief

businessofficerofApredica,special-

istinpreclinicalADME(absorp-

tion,distribution,metabolism,and

eliminationofxenobiotics)and

toxicologyassessment.Hereports

thatthecompanywasacquiredby

CyprotexinAugust2010.

Katia Facchetti ’85moved

toParma,Italy,tolearnmore

aboutslowfoodandsustainable

agriculture,andtookasomme-

lierclassinItalian.Shesays,“My

ItalianhasgreatlyimprovedandI

re-groundedmyselfinmyfoodie

rootsandspenttimegettingto

knowmyNorthernItalianrelatives

nearLagodiGarda.”

Jim JubelirerisVPandsenior

consultantwithHarrisInteractive.

Hewrites,“Iamweatheringthe

economicdownturnasImakea

careertransitionfrombusiness

developmentandconsultinginthe

fieldofcustomerloyaltytodoing

workinsustainablebusiness...

promotingsustainablesolutionsfor

apost-oileconomythroughpublic

speaking,training,consulting

andresearch.”Jimandhiswife,

Lauren,andson,Daniel,livein

ChapelHill,N.C.

Steve Kropperispresidentand

founderofWindPoleVentures

LLCinArlington,Mass.He

writes:“FoundedWindPole

Ventures,the‘BloombergofWind’

lastyear.Gotfundeddespitethe

depression.NowhaveDuke,

MidwestISO,Invenergyandoth-

ersasclients.We’velicensedover

7,000TVandradiotowers,which

weinstrumenttoprovidereal-time

C L A S S

39w w w.johnson.cor nell .edu

windresourceinformationforthe

windpowersector.”

Jeff Rosenkranz isamanaging

partnerwithMetronomePartners

LLC,inChicago,“anewM&A

advisoryboutique”thatheandtwo

partnersformedinspring2010.

Hesays,“IhadretiredfromPiper

Jaffrayin2008,whereIwashead

ofM&A,butdecidedtogetback

intothebusiness.Weareprimarily

focusedonsell-sideM&Ainthe

middlemarketandalreadyhave

threeengagements.”

Howard Spira ’85ischief

technologyofficer,Officeof

FinancialStability,withtheU.S.

Treasury.Hesays,“Comingup

onthefirst-yearanniversaryofmy

appointment…familyisnowfirmly

settledinBethesdaafterlivingin

Japanforthepriortwo-and-a-half

years.It’sbeenafast,fun,and

fascinatingcareertransitionfrom

themultinationalbankingworld

toahigh-profileofficeintheU.S.

Government…anexcitingtimeto

beinWashington.”

Grace Han Wolf ’86waselected

toserveontheTownofHerndon

TownCouncil(2010-2012term)

andisproudtobethefirstKorean

Americanwomanelectedtooffice

inthestateofVirginia.Sheinvites

alltocatchupwithheratwww.

herndon-va.gov.

Alex Zikakisispresidentand

CEOofCapstoneAdvisorsin

Carlsbad,Calif.

C L A S S O F 1 9 9 4

Kelly Smith Brown ’88says,“I

amthoroughlyenjoyingmytime

asastay-at-homemomtoSarah

Grace,6,andtwins,Caroline

andHenry,three-and-a-half.Itis

wonderfultofocusmyenergieson

mykidsandonorganizationsthat

Itrulycareabout.Inadditionto

volunteeringforCornellandmy

kids’schools,Iserveontheexecu-

tivecommitteefortheCincinnati

BalletandtheDevelopmentCom-

mitteefortheCincinnatiZoo.”

C L A S S O F 1 9 9 4

Brent Meyersispresidentand

CEOofManex,inMoraga,

Calif.“Istillgetarushidentifying

opportunitiesandthencraftinga

creativeapproachtoseizingupon

them,whether…foraclientor

forourcompany,”hesays.“It’s

theorder-out-of-chaosthing…

filteringthewhitenoise,seeingthe

opportunity,andthendeveloping

thestrategy.”

Daniel J. Haleisanauthorliving

inDallas,Texas.Hesays,“Still

wrestlingwithwords.Upondeck

next:Mystory,‘ThePrecipice,’

willappearinNelsonDeMille’s

The Rich And The Dead,tobe

publishedbyGrandCentralin

April2011.”

Brian Hansberry ’88andhiswife,

Jessica,welcomednewdaughter,

AlexisGrace,March2010.Brianis

chiefmarketingofficerandgroup

VPofconsumerproductsforHJ

HeinzinPittsburgh,Penn.

Laurent Moquetisrisk,audit,

andcompliancedirectoratMarine

WorldBrandsinParis,France.He

joinedthecompanyayearagoafter

10yearsatThomson,theformer

Frenchelectronicsmanufacturer,

andhas“lovedeveryminuteofit.”

hewrites:“Mywife,Christine,and

I,havebeenbusilyraisingoursix

kids.Iwholeheartedlyinviteall

Cornell/JGSMalumniwhowould

travelthroughParistoletme

knowandcomeoverforadrinkor

dinner.”

Stephen R. Silverispastorof

theFirstCongregationalChurch

ofLebanon,N.H.(www.fccleb.

org)Heearnedamasterofliberal

artsandamasterofdivinity,both

fromHarvard,andisanordained

ministerintheUnitedChurchof

Christ.Steve,hiswifeRachel,their

son,Chip,andtheiryellowlab,

Henley,liveinNewHampshire’s

UpperValley.

Marc Weinstein ’84, MEng ’85,

isCOOofCaliforniaNatural

ProductsinLathrop,Calif.CNP

isafoodandbeverageproductand

ingredientsdeveloper,andcontract

manufacturingcompany,with

twoplantoperations.Marcsays,

“Ouringredientsbusinessprovides

organicandnaturalingredients…

fornutritionbarsand…cereals

andgranola.Ourasepticpackag-

ingoperationprovides…products

suchassoymilk,ricemilk,teas,

soups,nutritionalbeverages,and

wine,for…organicandnatural

foods,coffeehousesandwineries.

Werecentlylaunchedourown

brandedproducts,anatural

sustain-energyproteinbeverage

(Svelte)andawinefromorganic

grapes(CalNaturale).”Marcand

hiswife,Andie,andtwogirlsenjoy

theWestCoast.

C L A S S O F 1 9 8 7

Seth Bagshawwaspromotedto

VPandCFOofMKSInstruments

Inc.MKSisaglobalhigh-tech

companybasedinAndover,Mass.,

thatsuppliestechnologyusedin

thedevelopmentandproduction

ofequipmentforthesemicon-

ductorandsolarmarkets.Seth

livesinBoxford,Mass.,withhis

wife,Katherine,anddaughter,

Elizabeth,8.

C L A S S O F 1 9 9 1

Rob DonohoisVP,supplierdevel-

opment,forE&JGalloWinery,in

Modesto,Calif.,withresponsibil-

ityforallofGallo’spurchasingac-

tivity.Robisactiveinhischurch,

coachesyouthfootball,andchairs

thelocalUnitedWayEducation

Council.Heandhiswife,Becky,

andchildren,Katie,15,andJosh,

13,liveinRipon,Calif.

T H E

1990s

40 cor nell enter pr ise • fa ll 2010

C L A S S O F 1 9 9 6

James Chanisglobalforeign

exchangeandcapitalmarkets

manageratEstéeLauder,in

Melville,N.Y.Jameslivesin

GardenCity,N.Y

Lisa Capirose DeSteinjoined

fee-onlywealthmanagementfirm,

JoycePaynePartners,asafinancial

strategistintheirBethlehem,

Penn.office.

C L A S S O F 1 9 9 7

John Brimbleis“enjoying

puttinghisCornelleducationto

gooduse.”HeispresidentofIdeal

HealthITInc.,developing“anew

U.S.consultingfirmthatsupports

healthcareproviderswiththe

planning,implementation,and

operationofhealthITsystems”

JohnlivesandworksinSan

Diego,Calif.

Lee ClancyisseniorVPof

productmanagementanddirector

ofrevenueatIMVUInc.,aPalo

Alto-basedsocialentertainment

networkwheremembersuse3-D

avatarstomeetnewpeople,chat,

create,andplaywiththeirfriends.

LeeandhisfamilyliveinSan

Francisco.

C L A S S O F 1 9 9 8

Kelly Wardwaspromotedtocolo-

nel,andworksfortheSecretary

oftheArmyinitsrecentlyformed

officeofBusinessTransformation.

Heandhisfamilymovedfrom

theirlastassignmentatWestPoint

totheWashington,D.C.,area.

Histwinboys,KendallandKyle,

areWestPointcadets,andhis

daughter,Katherine,isinherfinal

yearattheAirForceAcademy.

According to Dan Tobin, many

American companies are experiencing

the beginning of a minor succession

crisis. “All of these baby boomers are

retiring,” Tobin explains, “and in many

companies, there aren’t people ready

to fill in the gaps.” Too often when top

management leaves, he says, CEOs

promote young stars to managerial

positions, only to discover they aren’t

yet up to the task. “They come in with

all the answers before they ask any

questions, and then the business goes

off a cliff.”

Huge corporations like GE have the

luxury of spending hundreds of millions

of dollars a year on employee develop-

ment. But what are smaller companies

to do? A corporate learning strategist

with more than thirty years’ experience, Tobin recently laid out his answers to that question in

a book published this September — Feeding Your Leadership Pipeline: How to Develop the Next

Generation of Leaders in Small to Mid-Size Companies.

While his program can be easily adjusted for any situation, the ideal program, Tobin says,

would run for one or two years, involve selected employees (what Tobin calls “hi-pos,” short for

“high potentials”) as well as senior managers, and have four components: formal education ses-

sions every quarter; action projects that allow participants to implement new skills immediately;

frequent assessments; and one-on-one mentoring that would allow for instruction tailored to

the individual. Participation would mean roughly a ten percent bump in workload, but Tobin says

most ambitious “hi-pos” consider that a small price to pay for a chance at jumpstarting their

career, and developing a network of other like-minded employees in their company.

By being savvy about spending, Tobin says he’s able to keep the cost of his program to

$5,000 per participant, a price that’s comparable to many week-long programs that focus on

only one topic. Don’t have money for an elite speaker? Tobin suggests approaching a junior fac-

ulty member at a nearby college with an interest in executive education. Big-name hotel chains

charging too much for meeting space? Look into conference centers or university facilities during

the summer.

Tobin spent many years training workers directly before shifting his focus to teaching others

how to design and implement their own programs. It’s a change he’s glad he made. Though he’s

a baby boomer himself, he isn’t leaving the work world anytime soon.

“I’m having too much fun,” he says. “I love what I do.”

– Mark Rader, MFA ’02

G R O O M I N G T H E N E X T G E N E R A T I O N

Dan Tobin, MPA ’74, MS ’76, PhD ’77:

of leaders

C L A S S

41w w w.johnson.cor nell .edu

C L A S S O F 1 9 9 9

Geoff Archersays,“LastmonthI

raisedaglasswithJason Seigalin

London(onmywaytoleadanun-

dergradstudenttriptoEastAfrica

visitingTroy Holmberg’sCoast

CoconutFarms,YehuMicrofi-

nanceTrust,etc.)…Jasonlooks

greatandmakesmewanttomake

aportmanteauoutofsarcasticand

fantastic,butintheendIamtoo

lazytoworkthatoneout.”

Justin Bakuleisinfinanceand

privateclientservicesatFSGSocial

ImpactAdvisorsinBoston.He

reportsthateveryoneishealthy

andhappy,andhisdaughter,

Grace,isnowalmosttwo.

Chris Bassler ’88isasenior

consultantwithCogentConsult-

inginDanbury,Conn.Heand

hiswifearerenovating“whatwas

originallyasummerlakehouse…

asakitchenandbathdesignershe’s

havingfunwiththeproject,and

Imayhavefoundasecondcareer

asaplumber!Ofcourseworkhas

beenbusierthaneverwithseveral

tripstoIstanbulandMexicoCity

slowingprogressontherenovation,

butit’sallgood.”

Paul Belle Isle ’90issenior

director,loyaltyandretention,at

CharterCommunicationsinSaint

Louis.Hesays,“I’vebeendoinga

fairamountoftravelingandsome

speakingatmarketingconfer-

ences.IranintoGlenn Squire,in

virtualfashion,whenIfoundout

heisnowworkingforEpsilon,the

companythatprovidesmarketing

servicesforoneoftheprogramsI

run!”Onthepersonalfront,heis

“strugglingwithsomeinjuries,but

tryingtotrainforakarateeventin

Augustandmy5thdegreeblack

belttest.”Hiswife,Amy,runs

OperationShowerwithtwoother

women,providingbabyshowersin

aboxforwomenwhosehusbands

aredeployedservicemen.

Sarah BrubachermarriedGeoff

McDonaldJune26,atMission

RanchinCarmel,Calif.She

reports,“Thegroom(andmost

ofhisfamily)wereinkilts,we

hadabagpiper,andwewere

marriedinfrontofapasture

filledwithsheep.”Classmatesand

spousesinattendancewereJoe

andDeb King Garber,Justin

Bakule,EvanandMarianne

Danko Diamond ’93,Yvonne

Hsu ’93andDarrenPalmet’93,

Tami andDan Gordon,Laura

Sullivan,Alex Ghebru,Katie

Meredith,BillandMolly Rihn

Meyer,PeteandMarie Cotier,

Shannon MonigalWadsworth

andJohnWadsworth.“Iffolks

areinterested(andasthebrideI

reallyamnotobjectiveonthis),

I’mhappytosharetheslideshow”

(www.scottcampbellphoto.com/

slideshow/brubachermcdonald).

Sarahisseniorpolicymanager,

trustandsafety,witheBayinSan

Jose,Calif.

Marshall Chapinisseniordirector

ofmarketingwithEnerNOCin

Boston.HereportedthatinJuly

heandAndy Orth,Dave Benini,

andJustin Bakuledidaweekend

mountainbikingandcamping

trip“totheNortheastKingdom

ofVermont…agoodtimewashad

byall.”

Scott Chartierstartedanewjob

asmarketingdirectorforthenewly

formedconsumerproductsdivision

ofMerck,createdfromtheacquisi-

tionofSchering-Plough.Hesays,

“IamstilllocatedinMontrealand

amacozythree-minutecommute

toourWestIslandofficelocation.

BrandsinmyportfolioincludeDr.

Scholl’s,Tinactin,Drixoral,Mi-

ralax,andMuskol.”Onthefamily

front,Scott’sdaughters,Colette,

11,andRemi,9,“aredoinggreat,”

andhiswife,Ariane,“isgaining

tractioninherconsultingbusiness,

focusingonregionalB-to-Bsix

sigmaandsoftwareimplementa-

tionprojects.”

Marie Wheeler Cotierwas

cheeredonbyseveralJohnson

alumniduringherBostonMara-

thonrace,inwhichshe“finished

rightnear3:32.”

Bill Creech,aseniormanagerwith

SunMicrosystems,says,“I’mnow

withOracleaftertheSunacquisi-

tion,sogreatnewsthere.”Hehas

relocatedtoSouthernCalif.

JD Creedonreportsheisstillwith

GlassHouseTechnologies,global

providerofdatacenterconsulting

andmanagedservices.Hewrites:

“WehavefiledourS1inthehopes

ofgoingpublicatsomepoint,

whichwouldbeexciting.Mynew

jobisrunningourWorldWide

channelbusiness,whichisgreat

fun,andwearenowapproach-

ing700folksaroundtheworld,

whichisamazing.”JD,hiswife,

Suzannah(Johnson)’92,andtheir

childrenmovedbacktotheU.S.

fromtheU.K.lastsummer.The

childrenlovetheirnewschoolsand

JDisplanningtorideinthePan

MassChallenge(raisingmoney

forcancerresearch)inhonorofhis

father,whopassedawayinJune.

Jonathan DarcyandDonna

Petersarebothpartnersfocused

onhealthcareatAccenture

ManagementConsultingand

activeinrecruitingattheJohnson

School.Theysay,“Wearebased

inAtlantaandlivefromvacation

tovacation—42countriesand

counting.”Theysharetheirhome

with“KennyandDublin…Russian

Bluefelineadoptees.”

Luis del Vallesays,“Ireturned

fromHornofAfricainMarch

andout-processedfromthe

MarineCorpsbackintothe

reserves.Istartedworkingagain

atInternationalPowerandthe

bignewsisthatIPisgoingtobe

acquiredbyGDFSuez,another

independentpowerproducerwith

U.S.headquartersinHouston…

lookslikemystayinNewYork

Citywillbecomingtoanendat

thetimeoftheacquisition.”

Piet Demeesterandhiswife,Ilse,

announcethebirthofadaughter,

Alice,May19:“Aliceisdoing

verywell,andwithherhealthy

appetite,contributingherfair

sharetoeconomicrecovery.”Piet

isanindependentITconsultant,

specializingincustomerrelation-

shipmanagement.Heandhis

familyliveinTienen,Belgium.He

says,“Afterseveralyearsworking

inGermany,Iamnowworking

withtheBelgianPostinBrussels,

andthusclosetohome.”

Michael de la Cruz,hiswife,

Paula Uribe-Echevarria, MBA

’98,andchildren,Isabela,Emma,

Maya,andQueen,movedbackto

theSanFranciscoBayareaafterhe

completedafive-yearexpatassign-

mentforIntelinShanghai,China.

Michaelmanagesateamfocused

ondrivingtheadoptionoflow-cost

PCsandclassroomsolutionsin

theeducationmarketworldwide,

aspartofIntel’sWorldAhead

businessdevelopmentorganization.

Helooksforwardtore-discovering

lifeintheU.S.,saying,“itwilltake

usmonthstomakeitdownallthe

aislesatCostco.”

Deborah King GarberandJoe

GarberreportthatJoeisstillAVP

forRenewData,whileDeborah

worksinHewlett-Packard’slaser

division.Theyanddaughter,

Sydney,liveinBoise,Idaho.

42 cor nell enter pr ise • fa ll 2010

C L A S S O F 2 0 0 0

Charlotte Yeisthefounderand

CEOofwebcars.com.cn.Shelives

inBeijing,China.

C L A S S O F 2 0 0 1

David Bloom isCEOofNaama

NetworksInc.Heandhiswife,

Naama Ashkenazi, MBA ’03,

welcomedanewdaughterin

June.Davidlaunchedhisstartup

thisyearandwasselectedto

demoattheWeb2.0Expo.He

says,“Notmuchdowntimebut

nocomplaints.”

Susie Welgos Christensen,

MILR ’01andherhusband,

Ken Christensen ’95, MBA ’02,

welcomedtheirthirdchild,Todd

Kenneth,inMarch;Toddjoins

bigbrother,Danny,andbigsister,

Ali.Susieworksafewhoursaweek

fromhomeasabuyerforanonline

retailcompany,MadAthlete.com;

teacheskickboxingonceaweek;

anddoesHRconsultingonanad

hocbasis.

Scott Hansingwaspromoted

tocategorymanager,marketing

director,fortheRaidInsecticide

brandatS.C.Johnson&Son,

Inc.,andrecentlycompletedasales

assignmentwiththecompany’s

salesteamatTargetCorp.in

Minneapolis.Heandhiswife,

Krista,andtheirfourchildrenlive

inRacine,Wisc.

ThefamilytookatriptoHawaii

inMay,whereSydneylearned

thehula,andnowwantstobe

ahuladancerwhenshegrows

up.Deborahsaysthat’s“agood

aspirationforathreeyearold–I’m

sureyoucangetaBAfromCornell

andstillhula.”

Susan Menkhaus Jaffeworks

forLink-GS,aheadhuntingand

recruitingfirmfocusingonthe

financialsector.Shesays,“Iam

hopingtojumpstartanewphase

inmyprofessionallife.”Susanand

husband,Scott Jaffe, MBA ’98,

haveadaughter,Ellie,6,andason,

Hank,4.

Mike Keoghandhisfamilymoved

toBeijinglastyearafterfouryears

inthePhilippines.Hesays,“Some

partnersandIarestartingupan

Asia-focusedrealestateventure.If

anyoneisinterested,letmeknow.”

Molly Rihn Meyerspendsher

days“chasingthree-year-old

Evanand20-month-oldEllie.”

Sheenjoyedseeingclassmatesat

theBrubacherwedding,andshe

andhusband,Bill,ranintoDave

Aronicaandhiswifeataparty.

Shesays,“wishIcouldseemoreof

youmoreoften!”

Tom Mikulka ’90isdirectorof

marketingforIDEXXLabora-

toriesinWestbrook,Maine,and

spendsalotofhistimetraveling

toEurope.Hesays,“Ididget

stuckfromthevolcanoandhadto

drivefromMontpelliertoBarce-

lonatocatchaflighthome.Driv-

ingthroughBarcelonawithouta

GPSisnotrecommended!”When

heishomeinCapeElizabeth,he

managesagirls’softballteamand

aT-ballteam.

Steve Miskaisacaptaininthe

U.S.Army,andworksforthe

NationalSecurityCouncilin

Washington,D.C.,asadirectorfor

Iraq,focusingonmilitarypolicy.

Steve,hiswife,Amy,andchildren,

HeatherandRob,movedfrom

Frankfurt,Germany,toFairfax,

Va.,whereAmyplanstopursue

hermastersinreadingandliteracy

afterhavingtaughtthirdgrade

fortheDepartmentofDefense

SchoolsinGermany.

Scott Neuman ’93isdirectorof

globalmarketingandcompetitive

strategyforIBM’sLotusSoftware

business.Hiswife,Amy(Karlen)

’93,hasstartedanot-for-profit

organizationcalled“Inspiring

Kids”thathelpselementaryschools

educateandempowerkidstomake

adifferenceinlocal,national,

andglobalcommunitiesthrough

environmentalstewardshipand

studentphilanthropy.Scottand

AmyliveinNorwich,Vt.

Alex Sapundshiev ’96andhis

familyrelocatedfromDubai

toWatford,U.K.,whereAlex

worksintherealestateprincipal

transactionsgroupatHilton

Worldwide.Heandhisfamily

tookarecentholidayinTurkey,

“wherethekidsshoweddaddy

howtoplaygolf.”Son,Alex,

attendsaFrenchprimaryschool

andis“theonlyonewhospeaks

Frenchinthefamily;daughter,

Emma,enjoysthecompanyof

grandmas,cousins,andaunts

whileIamawayonbusiness.”

Josh Sitzer andhiswife,Amy,

welcomedadaughter,ZoeDolo-

res,July23.Zoejoinsbigbrother

Eli,4.ThefamilylivesinKansas

City,Mo.,whereJosh’sstart-up,

JavaGogo,aspecialtycoffee

drive-thruretailer,hasgrown

tothreelocations.Joshisalsoa

marketingdirectoratHandmark,

adeveloperanddistributorof

Smartphoneapplications.

Marshall L. Stocker ’97isa

foundingandmanagingmember

ofEmergentPropertyAdvisors,a

privateequityfirmthatmanages

foreigndirectinvestmentsinthe

redevelopmentofurban,emerging

marketrealestatewithincountries

undergoingeconomicliberaliza-

tion:“Forthisreason,Iamnow

livinginCairo,Egypt,75percent

ofthetime.”Marshallandhiswife

haveahouseonthesouthshoreof

Massachusettswherehespendsthe

remainderofhistimenotfilledby

researchtraveltoothercountries.

Evren Pacalioglu Toreandher

husbandwelcomedadaughter,

Leyla,inDecember2009,and

have“beenaskingourselveswhy

wewaitedallthistime.”Thefam-

ilylivesinLondon,whereEvren

worksforGoldmanSachs.

Shannon Monigal Wadsworth

ownsCoronadelMarFlorist,in

CoronadelMar,Calif.Sheand

herhusband,andsons,5and7

yearsold,liveinNewportBeach.

Theyare“finalizingdetailson

ournewhouse…directlynext

doortoourcurrenthouse,which

makesoverseeingtheconstruc-

tionbotheasyanddifficult…we

plantolistthehousewe’rein…

hopefullythehousingmarket

makesadramaticrebound!”

T H E

2000s

C L A S S

43w w w.johnson.cor nell .edu

Susan Krische, MS ’01, PhD

’02,isanassociateprofessorat

theKogodSchoolofBusinessat

AmericanUniversityinWashing-

ton,D.C.

Nobuharu Kumagai isasenior

venturepartner,advancedtechnol-

ogygroup,withJAICVenturesin

Tokyo,Japan

Brian J. Thomaswaspromoted

tomarketmanagerfortheJ.P.

Morganprivatebankingbusiness

inSt.Louis,Mo.

C L A S S O F 2 0 0 2

Tom Schryver ’93isCFO,e2e

Materials.BasedinIthacaN.Y.,

e2eMaterialsmanufactures

petroleum-free,biodegradable

composites—sustainablebuilding

materialsthatarestronger,lighter,

andcheaperthancompositesfilling

landfillstoday.Tomsays,“Ithink

anydecentbusinesspersonhas

tobeconcernedaboutlong-term

trends.Andthat’swhat‘sustain-

ability’istome.”

C L A S S O F 2 0 0 3

Heather Abbott ’98joined

BedandBreakfast.com,thelargest

onlineB&Bdirectory,asdirector,

giftcardprogram.Heatherlives

andworksinAustin,Texas.

C L A S S O F 2 0 0 4

Joseph J. Bridy isapartnerat

HamlinCapitalManagementLLC,

inNewYorkCity.Hewaselectedin

Maytoasix-yeartermontheBerea

Collegeboardoftrustees.

Sujit Jha,wasnamedadirectorof

Bostonconsultingfirm,Altman

Vilandrie&Co.,agrowing

companythatfocusesonthecom-

munications,media,cleantech,

andrelatedtechnologysectors.

Keigo Kuroda can tell you firsthand that prudence

pays off. A director with the Blackstone Real Estate

Group’s Tokyo office since 2007, Kuroda and his col-

leagues not only survived the downturn in the global real estate market over the past few years,

but have come out ahead of the game, by holding onto only the best vintage assets, and being

cautious about purchasing new assets.

After an especially rocky

2009, many new deals have

emerged in the U.S. in the

past year, says Kuroda. Less

so in Japan. “Even if there

is a deal, most of them are

sold through an auction

process, and the pricing can

be challenging as there are so

many low-cost players here.”

This past July, Kuroda and two

other members of the Tokyo

team did make an exclusive

deal he is proud of — one

of the largest structured

real-estate debt transactions

in the Japanese market, purchased from an investment bank “at a very attractive basis.” But

more and more, Kuroda says, his office has been working closely with the Hong Kong office,

which mainly covers Greater China on cross-border deals in China, Japan, and other parts of Asia.

“Japan is suffering from a decreasing population, aging society, and 20-year deflation,” says

Kuroda. “There are a lot of good reasons why smart investors are putting money in the Chinese

market instead.”

Though business in his Tokyo office is conducted in either Japanese or English, Kuroda has

recently started to learn Chinese as a way of showing his positive attitude towards the country

and its culture. Lessons are every Saturday morning at a school near his downtown office.

Recently, he tested his vocabulary while out for dinner and drinks with some Chinese clients. “I

tried phrases like ‘Nice to meet you,’ and ‘This dish is very delicious’ — very simple things,” says

Kuroda. “They seemed glad that I’m trying.”

While Kuroda hopes to improve his grasp of the language enough that he can eventually speak

Chinese in a business setting, he’s finding himself strapped for time. His three-person office may

soon be integrating another large real estate platform in Asia, and creating a larger office. Also,

a year ago, Kuroda’s first child was born — a daughter named Nanako. She isn’t speaking quite

yet, but when’s she’s ready, Kuroda says he’s going to help her learn all three of the languages he

speaks. “For the next generation,” he says. “English alone won’t be enough.”

– Mark Rader, MFA ’02

A D A P T I N G T O

Keigo Kuroda, MBA ’00:

succeed

Keigo Kuroda, MBA ’00, with his wife, Natsuko, and daughter, Nanako, at Mount Fuji.

44 cor nell enter pr ise • fa ll 2010

C L A S S O F 2 0 0 5

Rick Adams (E)isthecorporate

controlleratByramHealthcare

anddoesbusinessconsultingon

theside.He’salso,“helpingsome

friendsgettheirITstaffaugmenta-

tionbusinessstarted.”Rickworks

inWhitePlains,andlivesin

Suffern,N.Y.

Carmen Akella (E)isaproduct

managerwithThomsonReuters,

basedinNewYorkCity.She

writesthathertwins,Caraand

Marc,turned3andhavestarted

preschool.Carmenis“working

towardstartingachildren’scenter,

focusingonenrichmentand

development,in2011…moreto

comeonthatlaterthisyear.”

Keith Carter (E)managessupply

chainintelligencewithinEstée

Lauder.Hewrites,“Emmanuel

(BabyQ)isnow6andgoingto

firstgrade,Lukeis4andentering

kindergarten…Emmanuelhas

beencreatingavideogamein3D

whichworksinaWebbrowserand

ontheAppleiPad…Weallhave

seenBabyQhelpingKeithwith

stats,butitlookslikehe’llsoonbe

earningKeithalotofmoneytoo.”

Kam Chang (E)isportfolio

manager,clientCIO,atPromark

Global,managingoverseas

investmentadvisorybusiness.Kam

isbasedinLondon,Englandbut

is“lookingforwardtomoving

backhometoNewYorkCity

inDecember…wehavebecome

seasonsticketholdersandsupport-

ersofChelsea’sFootball(soccer)

ClubbutstillwatcheveryYankee

gamewithSlingbox,thegreatest

inventionever!”

Scott Foster (E)ismanaging

principal,performancesolutions

practice,withGEHealthCare,

basedinSouthbury,Conn.His

oldestdaughterisstartingher

If you think dropped calls and dial-up modems

are a hassle, Hilary Cox Maxson would invite you

to spend some time in Cameroon. A resident of

Douala, Cameroon’s largest commercial city, since January of 2010, Maxson has experienced the

frustrations of an emerging market power grid firsthand. As CFO of AES Africa, the sole provider

of electricity in Cameroon, she’s working hard to make that power grid more reliable — and more

accessible to the country’s 18 million citizens.

Nine years ago, AES (formerly Allied Energy

Systems) paid Cameroon’s government $72

million for a majority stake in AES Sonel, the

country’s sole energy provider, understand-

ing that additional investments would be

necessary to upgrade the nation’s energy

infrastructure. The challenges to moderniza-

tion are many, Maxson says. As is common in

many emerging market countries, transmission

towers are sometimes stripped for parts,

and illegal power networks provide energy to

entire communities in the larger cities. The

small power stations which provide energy for

the televisions, light fixtures, and occasional

refrigerator in remote villages run on heavy fuel

oil, and unpaved roads mean fuel delivery can

take days. Then there is the messy matter of

collecting payment. “Since it’s a cash society here, it’s a big challenge,” Maxson says. “You have

people walking for miles to make a payment, and then waiting in line for hours in 100-degree heat.”

Slowly, Maxson says, conditions and services are improving. With the help of a 260-million-euro

loan provided by a consortium of multilaterals, AES has begun renovating the country’s largest

hydro plants, rebuilding power lines, adding more collections agents, and connecting many remote

outposts to the main grid. Last year 60,000 new power connections were made, and the com-

pany’s growth rate is a robust 9 percent. “A process-oriented way of doing business is still new

here,” Maxson says. “But we feel the changes we’re making in budgeting and planning can make a

real difference.”

Maxson says she and her husband miss going to the movies (there are no cinemas in Cam-

eroon), but she raves about the abundance of fresh local food at the markets and the white and

black sand beaches. And after years of living in one-bedroom apartments in New York City and

Washington, D.C., Maxson is enjoying the pleasures of living in a house equipped with first-world

amenities. “That’s our joke,” Maxson says. “We had to move to Central Africa to get our first wash-

ing machine.”

– Mark Rader, MFA ’02

Hilary Cox Maxson, MBA ’05:

G R O W I N G

the grid

C L A S S

45w w w.johnson.cor nell .edu

NewYorkCity,“thoughnotat

thesametime.”Rockyisbuilding

theglobalstrategyconsultingand

coachingbusinessthathesetup

inLondontwoyearsago,andis

“busyincubatingsomeexciting

companiesinmobileappdevelop-

mentandgarmentsourcing,and

slowlybuildingadditionallinesof

businessesandpresenceindifferent

partsoftheworld.”Onthefamily

side,“Ethanisthree-and-a-half

yearsold,andhe’sparticularly

proudofthe‘half ’part.He’sgota

veryinquisitivemind…I’vebarely

beenkeepingup.”

C L A S S O F 2 0 0 6

Rachel Peris Ash ’99andEthan

Ash’01liveinIthacawiththeir

son,Eli,one.Rachelisthe

managerofcorporateandfounda-

tionaffairsforCornell’sSchoolof

HotelAdministration.

Venu Ayalaandhiswife,Vasan-

tha,welcomeddaughter,Varsha,in

December.Shejoinsbigbrother,

Vinay,whois“ecstatic.”Venuis

aprincipalwithSRATouchstone

ConsultinginWashington,D.C.

senioryearofhighschool,andis

lookingatcolleges.

Phil Garton (E) isCFOfor

SpringsWindowFashions,and

livesandworksinMiddleton,

Wisc.AstowhyWisconsin,he

sayshewasadvisedtolookup

“bestplacestoliveintheU.S.A…

andthereitwas,asuburbof

Madison.”PhilandhiswifeKim,

havefourchildren:Keiffer,21,

isstartinghissenioryearatthe

UniversityofPennsylvania,andis

QBandcaptainoftheirfootball

team;Amanda,18,isatcollegein

Iowastudyingnursing;Natalie,

10,speaks3languages;Preston,6,

startsfootballthisfall.

Troy Glover (E)isVPandCOO

ofNewYorkLife’slong-term-care

operation,andlivesandworks

inAustin,Texas:“Greatcity!”

Hisdaughter,Lauren,isstarting

secondgrade.

Akbar Khan (E)isanaccount

executiveatLibertyMutual,

responsiblefornewbusinesssales

toNortheast-basedFortune500

corporations,andbasedinNew

YorkCity.Hisson,Amaan,“isa

worldoffunat18months,though

we’restilladjusting.”

Xin Li (E) andherfamily“relo-

catedduetomyhusband’sexpat

assignment.WillbeinTaiwan

foracoupleofyears.”Xinworks

half-timeforCornellUniversity

Library,focusingonexpanding

partnershipsinAsia.Shehopes“to

experiencesomeChinesecultureI

didn’tknow.Heardthereareexcel-

lenthotspringsnearourresidence

butIneedtofindoutwhere.”

Rocky Russell (E)ismanaging

directorofStructuredInsights

Ltd.HerelocatedfromLondon,

U.K.,toNorthAmerica,and

willbebasedoutofTorontoand

thistransition.TheAccelerated

MBAprogramwasverytimelyand

providedthemuchneededcareer

changeIwaslookingfor.”

Hetal Patelisdirectorofcorporate

strategyanddevelopmentwith

SNCLavalininMontreal,Canada.

David Tsui andJudySinwere

marriedMay29inSausalito,Calif.

TheyliveinNewYorkCitywith

dogsBusterandFelicia.Davidis

adirectorofCapstoneAdvisory

GroupLLC.

C L A S S O F 2 0 0 9

Muqtadar Ahmedgotmarried

twomonthsaftergraduation.Ten

daysafterthat,hestartedwork

withAccentureasaconsultantin

theirHoustonoffice

Ruchit Agarwal worksforAetna

inthecorporatefinancegroupin

Hartford,Conn.

Saif AjanilaunchedAssetize

(http://assetize.com)inMay,part

ofaVICincubatorprogramin

Toronto.Hesays,“Thefactthat

we’reaTwitter-focusedadnetwork

(withallthebuzz)hasgottenus

somegreatmediacoverage.”

Nad AjlaniandJoanna Chen

areinSingapore,“stillhappy,still

workingwiththefamily…wejust

boughtanapartment…ranthe

StandardChartered10kmracelast

December…nextchallenge—our

VerticalMarathon…whereweget

toraceupa63-storybuildingwith

acouplehundredotherpeopleina

stuffystairwell.”

Karen Albrightisamarket-

ingdirectoratTravelersCo.in

Hartford,Conn.She“starteda

newassignment…innationalauto

insurancestrategy,whereIwill

bedesigningnewcarinsurance

productsandenhancements.”

RickGrodinisVP,business

development,attheBroadlane

Group,aleadingend-to-endcost-

managementpartnerforhealthcare

providers.Heworkscloselywith

theexecutivemanagementteam

andTowerBrookCapitaltoexecute

strategicpartnershipandM&A

opportunities.Rick,hiswife,

Hallie,andsonJackliveinNew

YorkCity.

Mark HerrmannisVP,structured

dealsandfundamentals,with

NRGEnergyInc.inPrinceton,

N.J.HelivesinYardley,Penn.

Hasan Husain isseniordirector,

alliancemanagement,withSepra-

corInc.inMarlborough,Mass.

HasanlivesinMedway,Mass

Raymond Karrenbaueris

EVPandCIOofAxisGroup

inHartford,Conn.Helivesin

Glastonbury,Conn.

Savita Kini,amarketingmanager

withCiscoinBangalore,India,

writes:“Sincemovingback,Ihave

beenabletoleveragemyexperience

andexposureatCornell,especially

onentrepreneurshipandtechnol-

ogymanagement,invariousways.

IhavetaughtatIndianInstitute

ofManagement,Bangalore,and

InternationalInstituteofInforma-

tionTechnology,Bangalore,on

subjects[ranging]frominnovation,

technology,marketingandstrate-

giesfornewentrepreneurs.Ihave

beenabletonetworkwithinthe

localentrepreneurialcommunity.

InmycurrentroleatCisco,Iput

manyofthebestpracticestouse,

asCiscohasaveryentrepreneurial

culture.Ihavebeenabletomentor

youngengineersatCiscoontheir

MBAplansortransitionfrom

engineeringtobusiness.Ithasbeen

averyfulfillingexperience.Ioweit

tomyprofessorsandmyclassmates

atCornellforhelpingmewith

46 cor nell enter pr ise • fa ll 2010

Roy Ashokisabusinessdevelop-

mentmanagerwithQualcomm

Inc.inSanDiego,Calif.He

sayshewas“rattledbytherecent

earthquakehere.”

Hedieh Bolourworksinwealth

managementforWellsFargo

InvestmentsinLosAngeles,Calif.

Hediehis“enjoyingtheniceCali

weatherwithmyweeklyrunson

thebeach.”

Navara Boon-Longworks

forStandardCharteredBank,

Bangkok,intheirwholesale

bankingdivision.

Kate Caposselaisanassociate

productdirectoratJohnson&

Johnson.ShelivesinPhiladelphia.

Annie Cheng worksforJPMor-

ganPrivateBankinHongKong.

Sheisontheproductsolutions

desk,helpingtoformulatevarious

investmentsolutionsforclients.

Michelle Colban livesinPhila-

delphia,wheresheisanassociate

brandmanagerattheCampbell

SoupCompany,workingonthe

V8juicebrand.

Sam Dadgari isaportfolioman-

ager,diversifiedfinancialservices,

withAmericanExpress.

John Doughertygotmarried

August8inRyeBeach,N.H.He

isaseniorassociateatPricewa-

terhouseCoopers,mergersand

acquisitionspractice,inNew

YorkCity.

Ben FieldingworksforNewYork

Life.Hesays,“Workhasgone

verywell,butmoreimportantly,

Ellahasturnedone-year-oldand

isthriving.”Ben,hiswife,Lauren,

andEllaliveinBrooklyn.

Andrea Findley, MPA’09,isa

strategyconsultantwithAccenture

inNewYorkCity.

Eric Fish sendsanupdate,saying,

“Gretchen,Ezra,andIaredoing

justfineinNewYorkCity.Ezrais

now15months,andshe’swalking

allovertheplace,climbingon

anythingshecanreach,andgener-

allybeingamenace.”

Scott Foresterisassistantchief

ofstafftotheCEOofCorning,

Corning,N.Y.

Roop GhangaslivesinChicago,

wheresheworksforUnitedAirlines.

Taryn Goodman ’00isimpact

investingmanagerofRSFSocial

Finance,aSanFranciscofirm

thatoffersinvestingandlending

servicestoindividualsandenter-

prisescommittedtoimproving

thesocietyandtheenvironment.

Shemanagesthreeportfolios,

andisinvolvedinlaunching

RSF’sProgram-RelatedInvesting

(PRI)fund.

Tim Hlavacek isAVP,business

development,inBankofAmerica’s

equitiesstrategygroupinNew

YorkCity.BeforemovingtoBank

ofAmerica,hewasananalystat

Grant’sInterestRateObserver.

Seong “Jimmy” Hongwrites

fromSeoul,“SinceJuly,2009,I

havebeenworkingwithKorea

Investment&SecuritiesCo.Ltd.,

KoreanlocalIB.Althoughitwasn’t

thebesttiming,Ijoinedthereal

estateprojectfinancingteamand

amdoingwellsofar.”

Jimmy Huisafinancecontrol-

lerwithJohnson&Johnsonin

Beijing.Hesays,“Chinaoffersa

veryexcitingandinterestinglife

styleandIwasreallyimpressedby

thedynamiceconomyheretoo.”

Goodspeed Hua-Jungisastrate-

gicprojectmanagerwithAnalog

DevicesintheBostonarea.

Dan Humphreyisaclientservices

manageratMedalliaInc.inMenlo

Park,Calif.

Brandon Jacobsonworksfor

Deloitte,andtravelstoChicago

whereheisworkingonaproject.

Heandhiswife,Amy,MA’07,live

inNewYorkCity.

Jeff JohnsonandBethany Caster

liveintheBeaconHillneighbor-

hoodofBoston.Jeffisaconsultant

inAccenture’sITconsulting

practice,andhisworktakeshimto

Hartford,Chicago,andNewYork

City.Bethanydoessell-sideequity

researchatRaymondJames&

Associates,Boston.

Kevin Johnsonandhiswife

welcomedadaughter,AvaSophia,

inDecember2009.Kevinandhis

familyliveinChicago,whereheis

aclean-technologyleadershipas-

sociatewithAcciona,anon-profit

environmentalcompany.

Ryan Kelleywritesfrom

Madagascar,“Iofficiallytook

overmanagementofToughStuff

Madagascar(www.toughstuffon-

line.com)inJan.2010.Business

hasbeengrowing,albeitataslower

rateduetopoliticalcoupattempts.

Ifonlytheelective,‘Startupsin

FailedStates’hadbeenoffered.

ButIwasratherwellpreparedfor

developingmodelstodeliversolar

energyproductstoruralvillagers.”

Ines Lamwrites,“Ihavefinally

movedtoShanghaiandstartedmy

newlifehereworkingasanacquisi-

tionanddevelopmentassociatefor

TishmanSpeyer.”

Simon Lee writes,“Iamin

Manila,Philippines…stillworking

forAsianDevelopmentBankand

amplanningtocontinuetowork

here.”

Steve Lee writesfromHongKong,

“Ping Shen (Accenture,SanFran-

cisco)andI(BankofAmerica/

MerrillLynch)justreturnedfrom

aquickfishingtripinOahu,

Hawaii…highlightsincluded

catchingbonefish,barracuda,and

aspottedeagleray…Skillsgleaned

fromJGSM,combinedwithour

briefworkexperience(strategy

consultantandbondsalesman),

helpedusovercomesometough

anglingconditions.”

LindsayandWesley Lehman

“spentthesummerinthesunny

Southandwelcomedason,Henry

Graham,totheworldonJune

12….lovingeveryminuteof

parenthood…spentthelastcouple

monthsgettingsettledintoour

newhomeinChicago.”

Sandeep Mankikar worksforJNJ

MedicalinMumbai,India,onan

internationalassignmentinthe

globalmarketingfranchiseatEthi-

conEndo-SurgeryInc.,with“some

ofthesmartestmarketingminds

inthebusiness.”Hewrotefrom

Cincinnati,wherehewas“undergo-

inganawesometraining—have

performedlivesurgeriesmyselfand

learnedahugeamountofanatomy

andsurgicalprocedures.”

C L A S S

47w w w.johnson.cor nell .edu

Peter Marmer isamanagerfor

Wal-MartStoresInc.inBenton-

ville,Ark.Hesays,“Icontinue

toenjoymyjob…andhavebeen

exposedtosomeprettycool

projects.Outsideofwork,Ihave

keptbusyattendingrodeos,horse

races,monstertruckbashes,goat

costumecontests,and,more

recently,NASCAR.”

Karen Martin worksforProctor

andGamble,ontheSwifferbrand.

ShewritesfromCincinnati:“Ilove

myjobatP&G!It’saglobalrole

withthejusttherightamountof

travel;Irecentlycamebackfrom

atriptoGenevaforoneofmy

projects.I’mtrainingformyfirst

triathlon.”

Jennelle MoorelivesinMil-

waukee,Wisc.,andworksasan

assistantbrandmanagerforS.C.

Johnson&Son,Inc.

Saurabh Mundhrais“happily

engagedinmarketingactivities

forhisnewventure,developing

asalespipelineandconnecting

withcustomersinIndia’sbooming

infrastructuresector—highways,

ports,andpowerplants….recently

returnedfromKrabiinThailand…

highlightwasclimbing1,237steps

uptotheTigerCaveTemplefor

spectacularviewsandamagnifi-

centBuddhastatueoverlooking

thevalley.”

Shunji NakaireturnedtoJapanto

workforhissponsoringcompany,

NipponLifeInsurance,Tokyo.

Susan Ngoisaseniorconsultant

withDeloitteConsultingin

Seattle.SheandKris Woolery

“havehadlotsoffunexploringthe

cityandmeetingnewpeople,”and

shemakesatriptoDallaseach

weektoworkwithaclient.

A private wealth advisor and vice president at

Goldman Sachs since 2006, Candace Davies

and her team work with a wide range of clients,

including individuals, family estates, non-profits, and corporate endowments. It’s a position, she

says, that requires “strict adherence to a long-term plan, even when that’s hard to do.” Outside

of the office, Davies has begun taking on a different sort of endurance challenge: training for and

participating in marathon runs and bike events, all for the sake of charity.

Davies says she “caught the charity-

endurance-event bug” in the summer of

2009, when she joined Goldman Sachs’

Bike MS (Multiple Sclerosis) Team. Her

initial motivation for joining was finding a

sense of community. However, when her

father suffered a stroke on the day she

had organized a major fundraiser for the

National MS Society, Davies’ sense of

purpose intensified; although she didn’t

know anyone battling MS personally, she

now understood more acutely the pain of

seeing a loved one struggle with serious

health issues. Thanks to her and her

teammates, Goldman Sachs raised nearly

$250,000 — more than any of the other

companies participating nationwide. As

a reward, the team got the opportunity

to ring the opening bell at the New York

Stock Exchange, “an awesome experience,” Davies says.

Simultaneously, Davies began training for her first marathon with the Lymphoma and Leu-

kemia Foundation’s Team in Training, inspired by her father’s courageous fight to recover from

his stroke. Every Saturday morning throughout the winter, even the frigid morning following a

record-setting February blizzard, she and her team put in time on the sidewalks of Manhattan. On

a morning that was too icy to run outside, Davies, undeterred, ran 14 miles on the treadmill. All

her hard work paid off: On April 11, Davies crossed the marathon’s finish line in Paris, and shortly

after, the Lymphoma and Leukemia Society received a check for more than $450,000 from the

New York City team, to be put towards blood cancer research and patient services.

This winter will find Davies training for another marathon-for-charity — this one in Miami.

She’s doing it for donations, of course, but also because she has come to treasure the camara-

derie she has with her fellow runners.

“The reputation runners have is that they’re upbeat,” Davies says. “This group is that and

more. They’re the most inspiring, beautiful people.”

– Mark Rader, MFA ’02

L O N G D I S T A N C E

Candace Davies ’00, MBA ’06:

48 cor nell enter pr ise • fa ll 2010

Frank A. Wisehartwasappointed

directorofthebusinessadvi-

soryservicespracticeatSchneider

Downs&Co.inColumbus,Ohio.

SchneiderDownsisoneofthetop

50largestpublicaccountingfirms

intheU.S.

Rob Woodsworksincredit

tradingforCreditAgricoleinNew

YorkCity,afterhavingspenta

yearinBlackrockInc.’sportfolio

managementgroup.

Kris Wooleryisastrategistat

Wunderman,TeamMicrosoft,in

Seattleandis“curiouswheremy

newcareerpathwillleadme,both

professionallyandgeographically.”

Outsideofwork,Krisisinvolved

withRisen’Shine,whichprovides

servicesandprogramsforchildren

affectedbyHIV/AIDS.

Richard Yu coversrealestateand

diversifiedsectorsforGenuityCap-

italMarkets,aTorontoboutique

investmentbankrecentlyacquired

byCanaccordFinancialGroup.

C L A S S O F 2 0 1 0

Anthony Van Nice (CQ)and

wife,Lindsay,announcethebirth

ofadaughter,GenevieveSwift,

March12.

John L. Kelley, MBA ’58

Arthur Snyder ’50, MBA ’52

Jeff Osbornsaysheis“slowly

takingovertheworld,beginning

withthecreditITemerging

marketsanalyticsgroupat

Barclay’sCapital.”

Stacie Palmerisinhersecondrota-

tionasaseniorbusinessconsultant

withLibertyMutualinBoston,

“focusedontheprocessforhandling

windandhurricaneclaims.”

Sangwon Park livesinSeoul,

Korea,whereheisasenior

analystwithEugeneInvestment

andSecurities.

Steve andChristine DeRoma

Peck liveinMinneapolis,where

ChristineisabuyeratTarget,

andSteveisdirectorofstrategic

accountsatWebMD,helpingto

developanewmarketfortheir

productsandservicesinthe

medicaldevice,diagnostics,and

imagingmarket.

Jimmy Pu coversU.S.-listedChi-

nesecompaniesasaninvestment

bankingassociate,BarclaysCapital

HongKong.

Mike Rethman isdirectorof

marketingatAcurenInspection

Inc.inLaPorte,Texas.

Ben Rollins welcomedadaughter,

GretaCatherine,inDecember

2009.Shejoinsbrothers,Luke,6,

andCaleb,3,who“lovetohug/

maulherandcarryheraround

whenwe’renotlooking.”Ben

writesfromSaltLakeCity,“I’ve

beenworkingonmymeddevice

startup…inthefinalstagesof

sellingourtechnologytoasmall

pharmacompanyinanequity

deal…beenexploringtechnologies

attheUniversityofUtahtostart

anothertechcompany.”

Keith Romerowrites,“I’vebeen

workingonanHIVprojectforthe

ClintonFoundationinPanama.

Learninghowtoplaypoliticsasa

gringowithincorruptPanamanian

policeandgovernmentsystemshas

beenbothtryingandexciting.The

workistremendouslyrewarding

andI’vebeentakingquestionable

propplanestofar-flungindigenous

communitiesaroundthecountry

rollingoutSMSprinterinitiatives.

Theprintertechnologyallows

HIVtestresultstobe‘texted’from

PanamaCityandprintedinstantlyat

remotesiteswherenoInternetaccess

orfixedphonelinesexist.Thiscuts

aboutfourweeksoffofthetimethat

patientstypicallyhavetowaitfor

HIV-relatedbloodresults.”

Liz Schuster startedastrategy

company,andSPRIG(www.and-

sprig.com),forsocialandcultural

nonprofitorganizations.Shelives

inParkSlope,Brooklyn.

Sarah Scudder Heddlestonisa

seniorconsultantwithDeloittein

Washington,D.C.Shewrites,“I

gotmarriedinJulyandthenspent

amonthtravelingaroundinAus-

traliaforahoneymoon.Camped

insomespectacularnationalparks,

hikedbeautifulrainforestsand

divedtheGreatBarrierReef.”

AparnaSharma“joinedastartup

inthesocialmediamarketing

spacebasedoutoftheBayArea.”

Ping ShenisanMBAconsultant

withAccentureinSanFrancisco,

living“astone’sthrowfromthe

Giant’sstadium.”Hesaid,“…at

mycurrentclient,Isitnexttoan

oldergentlemanwhoIjustfound

outisaCornellalumaswell—

classof1960.”

Stella SunlivesinBostonand

worksforaMIT-basedsolar

startup,SolarEngineeringSolu-

tions,mainlyonthefund-raising

andbusinessdevelopmentside.

Thecompanydeliverssolarther-

maltechnologyandsolutionsto

servetheheatingandcoolingneed

forbuildings.Stellasays,“The

startupisstillveryearlystage,so

let’sseehowthingsunfold.”

Andrea Tebay worksinmarketing

forPepperidgeFarmandlivesin

NewYorkCity.

Vivek Thaker isaseniorassociate

atDuff&PhelpsinMorristown,

N.J.,doingcorporatefinance.

Adam Treadwell isaninformat-

icsconsultantandhealthcare

leadershipprogramassociatewith

CIGNA,inBloomfield,Conn.He

andhisfamily,“stillhappyand

healthy,”liveinGranby,Conn.

Britta Von Oesenwrites,“Iam

stillworkinginCatania,Sicily,

forWKN,arenewableenergy

developer…Hadfunvisitsfrom

Sarah Scudder,Andrea Findley,

andJeff Fuchs, MBA ’08.”

Tayfun Uslumovedbackto

Turkey,andis“tryingtoadjust

afterspending11yearsabroad.”

Vikram Venkatasubramanian

isCEOofSIPtopicsInc.,avoice

communicationscompany.Hesays

thecompanyis“comingevercloser

tolaunchingourTopicPhoneser-

vice…thataimstoconnectpeople

toendpointsofcommunication

thataremostrelevanttotheirtopic

ofconversation.”Vikramandhis

familyliveintheirnewhousein

Westford,Mass.,“gettingused

toyardworkandothercalorie-

drainingnecessitiesthatcomewith

homeownership.”

Steve WangworksforGallup,

focusingonbusinessdevelopment

inemergingmarkets,andhasbeen

transferredfromLosAngelesto

Gallup’sSingaporeoffice.

T H E

2010s

C L A S S

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