ROBERT H. SMITH SCHOOL OF BUSINESS - University …smithbusiness.rhsmith.umd.edu/spring2007/pdf/SmithBusiness-Spring... · ROBERT H. SMITH SCHOOL OF BUSINESS • UNIVERSITY OF MARYLAND

B U S I N E S SROBERT H. SMITH SCHOOL OF BUSINESS • UNIVERSITY OF MARYLAND • SPRING 2006 VOL. 7 NO. 2

LEADERS FOR THE DIGITAL ECONOMY

BagOut

of theBagOut

of the

Plus

New High Tech Tools:Researchers DecodeConsumer Behavior

Culture and Bargaining:What Matters Most at theGlobal Negotiating Table

A Snack Giant’sStrategy for

Dominating in theDigital Economy

A Snack Giant’sStrategy for

Dominating in theDigital Economy

SPECIAL ISSUE: FOCUS ON INNOVATION, TECHNOLOGY AND GLOBALIZATION

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SMITH BUSINESS ONLINE

LEADERS DIGEST• Smith’s first Freshman Fellows off to a great start.• Undergrads gain real-world experience as $50K

fund managers.• Greg Hanifee, leader for the digital economy.• Primetime is crime time for businessmen.• Job training in Gaza brings hope, and work, to

Middle Eastern youth.

BOOKMARKET

SPEAKING OF BUSINESS

KNOWLEDGE TRANSFER• When negotiating for your slice of the pie, con-

sider the cultural context of your bargainingcounterpart.

• Team incentives and high goals affect knowledgesharing and performance.

• Four ways the Internet can help you quit smok-ing.

• An airline’s financial situation affects its prices incomplex ways.

• Top Teacher: Erich Studer-Ellis.

CONNECTIONS

LAST WORD

F E AT U R E S

D E PA R T M E N T S

LEADERS FOR THE DIGITAL ECONOMY

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Contents

CHIPPING AWAY AT THECOMPETITION

Al Carey BSOS’74 leads snack foods giantFrito-Lay to new heights.

TECHNOLOGY-DRIVEN BEHAVIORALRESEARCH AT SMITHResearchers in the Smith School’s Behavioral Labuse high-tech tools to explore why we act theway we do.

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SMITH BUSINESS O SPRING 2007

Smith Business is published twice a year—spring and fall—by the Robert H. SmithSchool of Business at the University ofMaryland, College Park.

Smith Business welcomes input fromalumni, partners and friends on articles andbusiness issues. Please send all correspon-dence to the editor.

EDITORIAL ADVISORY BOARDHoward Frank, DeanV. Scott Koerwer, Associate Dean,

Professional Programs and ServicesRosetta Clay, Acting Senior Alumni

Relations DirectorJoanne Ferchland-Parella, MBA ’06, Assistant

Dean for External RelationsLawrence A. Gordon, Ernst & Young

Alumni Professor of Managerial Accounting,director, PhD Program

Jeff Heebner, MBA ’06, Managing Director,Office of Marketing Communications

N.R. Prabhala, Associate Professor of FinanceRhonda Reger, Associate Professor of

Management and OrganizationRoland Rust, David Bruce Smith Chair in

Marketing, chair, department of marketing,director, Center for Excellence in Service

Marguerita Cheng, ’93 Financial Advisor, American Express Financial Advisors

Loretta Downey, Empower IT, Inc.Maya Rao, MBA ’05, Associate, InvestmentBanking, Sandler O’Neill & Partners, L.P.Sachin Argarwal, MBA ’07

EDITORRebecca Winner

CONTRIBUTORSSachin Agarwal, MBA ’07Alissa Arford-Leyl, JOUR ’94Sara EvansLoretta Goodridge, MBA ’08Jeff Heebner, MBA ’06Carrie Taschner, JOUR ’02Angela TodaRebecca Winner

DESIGNJeanette J. Nelson, University Publications

PHOTOGRAPHYAlissa Arford-Leyl, JOUR ’94; Vipul Bajpai; StanBarouh; Kevin Brown; John Consoli, ARHU‘86; Lisa Helfert, JOUR ’92; Scott Suchman

ILLUSTRATIONBrian Payne; Jeanette J. Nelson

Robert H. Smith School of BusinessOffice of Marketing Communications3570 Van Munching HallUniversity of MarylandCollege Park, MD 20742-1815Tel: 301.405.7282Fax: 301.314.6685 http://[email protected]

Copyright ©2007 Robert H. Smith School ofBusiness. This publication is produced by theOffice of Marketing Communications.

SMITHBUSINESS nline

EDITOR’S NOTE:

About This Issue

» Leaders for the digital economy: they are the men and women who rec-ognize the remarkable opportunity to engage with the forces of entrepre-neurship and innovation, technology and globalization, and the power ofthese forces to transform the world in which we live and do business. In thisissue of Smith Business we showcase the many ways in which members ofthe Smith School community—our students, alumni, professors andfriends—are harnessing the forces of the information age and, in theprocess, truly leading in the digital economy. From the president of Frito-Lay, leading innovation at the snack giant, to Smith professors using high-tech tools to develop best practices in management and marketing, toalumni mastering change in their careers and industries, this issue of SmithBusiness reveals what’s behind people and organizations who are seizing theopportunities of today’s digital world.

We invite your to share own thoughts and stories for inclusion in futureissues of Smith Business on the eAlumni Network forum “Leaders for theDigital Economy.”

LearnSmith Business Close-Upwww.rhsmith.umd.edu/news/sbcu/sbcu_archives_2006.html

NetworkOnline registration for alumni eventswww.rhsmith.umd.edu/alumni/

RecruitHire Smith studentswww.rhsmith.umd.edu/career/

Click to

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THERE’S ALWAYS MORE GOING ON AT THE SMITH SCHOOL THAN WE CAN POSSIBLY FIT INTO SMITH BUSINESSMAGAZINE. GET MORE NEWS, ARTICLES AND INFORMATION ONLINE AT OUR WEB SITE,WWW.RHSMITH.UMD.EDU/SMITHBUSINESS.

WWW.RHSMITH.UMD.EDU/SMITHBUSINESS

WEB POLL: Do TV and the movies disproportionatelyrepresent business people as unethical and corrupt?

YES NO

Log on to the Web site and let us know at www.rhsmith.umd.edu/smithbusiness.

Last issue’s Web poll results:Does your organization have crisis contingencyplans in the event of an avian flu epidemic?

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SPRING 2007 O SMITH BUSINESS

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Smith School students got a chance to connect with more than100 recruiters at the October 27, 2006, Industry Day, spon-sored by the Smith School’s student-run Logistics,Transportation and Supply Chain Management (LTSCM)Society and the Supply Chain Club (SCC). The Smith School’ssupply chain program is recognized as one of the best in the

country, and was ranked No. 6 by U.S. News and World Reportin a fall 2006 feature on undergraduate education.

Undergraduate students and MBA candidates had thechance to interact with recruiters at a lunch and career fair,which followed an awards ceremony presenting Jeffrey N.Shane, under secretary for policy at the U.S. Department ofTransportation, and Ron Widdows, chief executive of globaltransportation company APL Ltd., with a joint 2006 “Person ofthe Year Award.” Shane and Widdows were honored for boost-ing the visibility of freight transportation in the public-sectortransportation community, which has historically focused oncommuter and traveler issues. “Both leaders are committed tocreating awareness and understanding of the significance offreight transportation in United States’ logistics and supplychains—a significant departure from the past and a critical ini-tial step to building the capabilities needed in the future tomaintain our country’s global competitiveness,” said WilliamDeWitt, Professor of the Practice, Logistics, Transportation, andSupply Chain Management.

Visit Smith Business Online to read more about Industry Dayor the supply chain management program. –CT

Evil corporate types are pop culture staples.Think of The Matrix’s menacing Mr. Smith,or Wall Street’s conniving Gordon Gecko.The current TV season has given us a CEOwho attempted to murder a subordinate(Ugly Betty) as well as a company presidentwho embezzled from the pension plan(Brothers and Sisters), and on the Law andOrder programs more than half of all felonies— mainly murders — are committed bybusiness people. Lawyers, cops and doctorsget to be heroes as well as villains, but cor-porate types seem to show up on TV and inthe movies only when they’ve got a flunkyto humiliate, an illicit scheme to perpetrate,or a waterway to pollute.

At least that’s the way it looks to DanGainor, MBA ’01, director of the MediaResearch Center’s Business and MediaInstitute. Gainor is lead author of a three-part study that examines the way businesspeople are portrayed in movies and televi-sion.The first part of the study examined thetop 12 TV dramas shown during the sweepsperiods of May 2005 and November 2005.

Out of 39 episodes fea-turing business-relatedplots, 77 percent reflect-ed a negative view ofbusiness practitioners.The second part of thestudy, which examinedOscar-nominatedmovies, found that halfof those movies por-trayed people involvedin commercial enter-prises committingcrimes ranging fromsimple fraud to international conspiracy tomass murder. Out of the 70 major characterspresented, only one was depicted as ethicaland successful while actively engaged inbusiness.

“According to TV and the movies, youare 21 times more likely to be kidnapped bya businessman than by the mob,” says Gainor.“Maybe that’s what it takes to get ahead inHollywood, but that’s not how the vastmajority of business people really act.”

Gainor feels this overwhelming negativityabout the business world does a disservice toyoung people thinking about careers in busi-ness and to America’s image around theworld.“It makes everyone cynical, thinkingbusiness is inherently corrupt,” says Gainor.“This isn’t even vaguely reasonable. Most ofthe business people I’ve met are generousand ethical, and business people give billionsto charity each year.” For more information,visit www.businessandmedia.org. –RW

Students, Recruiters Network at Industry Day

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LEADERSDigest

For Businessmen, Prime Time is Crime Time

PHOTO BY LISA HELFERT

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Youth unemployment is a global problem,and it is at its worst in the Middle East andthe Muslim-majority countries of Africa andAsia, where almost half of those under theage of 24 are unemployed.This situation cre-ates fertile ground for violence and radical-ism, says Marc Boxser, director of communi-cations for Education For Employment(EFE), a nonprofit group that works withlocal partners to provide vocational trainingand jobs for young men and women inNorth Africa and the Middle East. EFEworks with local corporations, who sponsorthe projects and then hire those who com-plete the program.

Last spring the Smith School developed aunique custom executive education programfor EFE. Smith worked with faculty fromthe leading academic institution in Gaza,Islamic University, to design a six-monthmini-MBA that would teach business skillsusing marketplace simulations. It was anintense experience for the Smith team, whoin just under a week had to explain how toapply systems thinking to learning and man-agement, how to develop a systemic learningexperience, and how to use (and teach from)the business simulation used by Smith MBAstudents.The Smith team included GeraldSuarez, executive education senior fellow andexecutive director of the Smith FellowsQUEST program; Martin Klima, a contrac-tor from the company which designed thesimulation; and Andre Williamson, MBA’04, a Smith alumnus who provides execu-

tive coaching for Smith MBA students.The program was held in Cairo, Egypt,

because Gaza itself was considered too muchof a security risk for the American team.There was also a risk for the Palestinian facultymembers, who could have been persecutedfor their association with Americans.

Despite the security concerns, Suarez isglad he went, though he laughingly concedesthat it was a stressful experience.“Consideringthe violence and animosity that troubles thisregion, I felt that what we did represented apocket of hope.The faculty from IslamicUniversity were so appreciative, receptive andengaged.Though they came from a differentculture and a different mindset, we foundcommon ground, and it was education thatbuilt the bridge,” says Suarez.

“We are very proud of this program,” saysBoxser.“It is a great example that our part-nership model works.”All graduates fromthis pilot program have gone on to employ-ment with Consolidated ContractorsCompany—some in Gaza, some in NewGuinea and some in Abu Dhabi.

EFE is now working on a nursing pro-gram in Cairo with Simmons School forHealth Studies, a sales force training programin Morocco with Harvard University, and abusiness soft skills program in Jordan. TheSmith School is doing a consulting projectfor EFE to help the foundation strengthen itscapabilities and processes.

To learn more about EFE, visit www.efe-foundation.org. –RW

LEADERSDigest

Job Training Brings Hope, and Work, to Middle Eastern Youth

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Student Consulting Teams Wow Judges at QUEST/GEInnovation and Consulting Conference

5Executives, academicians and students gathered for anexceptional day of learning and sharing at the SmithSchool’s 7th Annual CIO Forum, held on November 3,2006. Keynote speaker Ted Leonsis, vice chairman of AOL,talked about strategically managing information technolo-gy for the past three decades and how the recent shift inconsumer needs is changing business.

Leonsis told his audience that the nation’s media model isinsufficient for a world where young people spend thehours from 3 p.m. to 8 p.m. with six things going at thesame time: cell phones, Internet (instant messaging),music, video games, TV, and homework. People arebecoming massive multitaskers, and they expect — anddemand — both choice and control. The world to come isone where niche marketing is king, says Leonsis, and con-sumers want to be able to plug and play, to interoperate.

Leonsis described AOL’s recent strategy in terms of capi-talizing on, not capitulating to, this new reality. “We wantedto take AOL back from Time Warner and Wall Street and sta-bilize, revitalize and reconceptualize our company,” saidLeonsis. Last summer, AOL went from a 20-year subscriptionbusiness with an ad business attached to it, to an ad busi-

ness with a subscription attached to it, and grew revenues.“We gave away what we used to charge for,” he said. “Ibelieve it happened because AOLbottled up this new consumerand algorithmic business.”

Visit the Smith Business Website for video highlights fromLeonsis’ speech. –AAL

AOL’s Ted Leonsis Speaks at CIO Forum

PHOTO BY VIPUL BAJPAI,SUNFIRE PRODUCTIONS

The first QUEST & GE Innovation andConsulting Conference, held on December13, 2006, was the highlight of the year forseniors in the Smith School’s QualityEnhancement and Teams (QUEST)Program. More than 200 people gathered toview the storyboards and hear student teamsdescribe their consulting projects on a nightthat capped off months of hard work andpreparation.

The projects form the senior practicumportion of the QUEST Program. QUEST,one of the Smith School’s specializedUndergraduate Fellows tracks, is operatedjointly with the A. James Clark School ofEngineering and admits students from theSmith School, the Clark School and theCollege of Mathematical, Computer andPhysical Sciences.

Seniors in the QUEST program spendthe better part of the fall semester workingwith a faculty advisor on consulting projectsfor corporations, all of which have real-lifeimportance and implications.This year stu-

dent teams worked on15 consulting projectsfor 14 companies inindustries that rangedthe gamut from aero-space to auto manufac-turing, and hospitality services to health care.QUEST consulting projects gave companiesa chance to see some of the school’s beststudents in action and gain valuable businesssolutions, while giving students the opportu-nity to work with real-life executives onreal-life business problems—a win-win situa-tion for both students and businesses.

To read more about the QUEST pro-gram and about last fall’s consulting projects,visit http://www.rhsmith.umd.edu/news/sto-ries/2006/quest-ge-event.html. –RW

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LEADERSDigest

When Greg Hanifee, MBA ’86,went to visit the AmericanChamber of Commerce inShanghai shortly after movingto China in 2003, his almamater was the last thing on hismind. But outside an office inthe same building 7,500 milesfrom “home” was a small signthat read Robert H. SmithSchool of Business. So hepoked his head inside andlearned that Smith had set upshop there to launch anExecutive MBA programShanghai. Since then, Hanifeehas become one the school’smost active ambassadors inChina, helping to recruit stu-dents and participating in otherSmith activities in Shanghai.

Hanifee is president and gen-eral manager in Asia for VerizonInformation Services, which sellsadvertising and publishes printand online directories, like theYellow Pages. Hanifee managesmore than 300 employees inShanghai, all of them Chinese. Hesays he speaks enough Chinese“to get by,” but the number onechallenge he and other managersin China face is recruiting andretaining qualified employees. Hesays he spends a disproportionateamount of time focusing on histop employees and comparing hisown HR and retention policieswith those of other organizations.

“The economy is so hot herethat it’s not uncommon for quali-fied people to switch jobs one ortwo years into employmentbecause they can get a 20, 30 or40 percent pay raise. If you talk tobusiness leaders here, they’ll saythe number one challenge is inhuman resources and how weretain and recruit top candidates.”

Hanifee is succeeding in thisdynamic foreign environment

because he, like many Smithgraduates, understands and appre-ciates the influence of globaliza-tion, entrepreneurship and tech-nology in the rapidly-changingeconomy. He believes otherSmith School graduates will havethe same edge in the global mar-ketplace.“The real advantage ofthe Smith graduate now is notjust the nuts and bolts of financeand marketing or humanresources. It’s how to think aboutall of those things with informa-

tion technology,” says Hanifee.“The pace of change—

because of technology—isincredible,” says Hanifee.“TheSmith School’s entrepreneurshipand information technology focuswill help our graduates be posi-tioned well to compete in today’sand tomorrow’s economy. I don’tthink anyone could have predict-ed when I was in business schoolexactly what would be happeningnow and how small the world hasgotten because of technology.”

Hanifee’s advice to otherSmith alumni with aspirations inChina? In some ways, it’s not asbig of a leap as you think. In oth-ers, it’s a pretty big leap.

“You have to come in being alittle bit humble because it’s avery different business environ-ment from what a lot of peopleare used to. But if you are willingto absorb and learn, you canmake great strides here.You cancertainly make great friends,” hesays. –JH

GREG HANIFEE, MBA ’86, PRESIDENT OF VERIZON INFORMATION SERVICES IN ASIA, LOVES THE FAST PACE AND COMPETITIVE

ATMOSPHERE IN SHANGHAI’S BOOMING ECONOMY.

LEADER FOR THE DIGITAL ECONOMY: GREG HANIFEE

Far From Home But Still Close to Smith: A Terp in Shanghai

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For the past two years the Smith Schoolhas shared its expertise in entrepreneurshipwith emerging business leaders in theworld’s fastest growing economy via the itsannual China Business Plan Competition.Recognizing the dynamic economic andcultural changes occurring in China, theSmith School has created a forum that pro-vides entrepreneurs with a source of earlystage capital and valuable exposure topotential investors.

“In many ways a Chinese culture ofentrepreneurship is simultaneously in thenascent and advanced stages,” says AsherEpstein, managing director of the SmithSchool’s Dingman Center forEntrepreneurship, which organizes the com-petition.“There’s a great innate entrepre-neurial instinct in China—but broad culturalacceptance and the economic reforms tofully support it are still maturing.”

Last year, five finalist teams made the cutto participate in the grand finale event heldin Beijing on September 13. Looking their

best in freshly-pressed business attire theycompeted for $50,000 in prizes in front of apanel of venture capitalist judges and morethan 150 guests from around the globe.

The teams and competition highlight theemergence of a generation of young businessleaders within China who are eager to tryout their ideas and make a mark on theglobal stage.

For example, the team members fromCoolbar, a company that delivers a newmobile advertising platform and the compe-tition’s $25,000 grand prize winners, are allfrom Tsinghua, one of China’s most presti-gious universities.While each has held aposition at a blue-chip multinational company—traditionally the brass ring ofachievement—Coolbar’s founders are farmore interested in the comparatively riskierprospect of striking out on their own.

“It is a great time to be an entrepreneurin China,” said Tony Gao, Coolbar chiefexecutive officer.“The risks are far out-weighed by the rewards and the SmithSchool’s annual China Business PlanCompetition was definitely a valuable learn-ing experience and resource.”

As the Smith School’s annual ChinaBusiness Plan Competition enters its thirdyear the Smith School has aggressivelyexpanded the competition’s reach and scopeby partnering with China Central Television(CCTV), the major broadcast television net-

work in mainland China.TheWin in China – Smith Business Plan

Competition launched on Sept. 29, and is beingco-organized by the Dingman Center andCCTV’s Win in China televison program—high-stakes reality series loosely based on“The Apprentice” with a huge following inChina.The competition is intended to com-pliment the Win in China television series.

“The support of CCTV and Win inChina enables us to exponentially increaseour impact and momentum,” said HowardFrank, Smith School dean.“We have createdan unbeatable partnership by leveraging Winin China and Smith’s areas of excellence andexpertise—to offer truly world-class educa-tional and entrepreneurial opportunities toeven greater numbers of people.”

Eight grand prizes valued at $100,000will include all-expense-paid trips to theUnited States for business training at theDingman Center for Entrepreneurship. Cashprizes totaling $50,000 will be awarded tothe top three winners.As CCTV’s exclusiveacademic partner for Win in China, theSmith School will award scholarships valuedup to $100,000 to Smith’s world-class exec-utive education programs to the winners ofthe Win in China television program.

Look for more information about theWin in China – Smith Business PlanCompetition at the Smith School China Website: www.rhsmith-umd.cn. –AT

Fueling Entrepreneurship in ChinaWith Education, Mentoring and Cash Prizes, the Smith Schoolis Supporting Business Development in China

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The fall 2006 incoming class of SmithSchool freshmen was the first to participatein the Freshman Fellows Program, students’initial opportunity to get involved in theschool’s Undergraduate Fellows Program.Faculty and administrators created the inno-vative undergraduate program to helpdownsize the large university experience andcreate small communities of scholars withinthe Robert H. Smith School of Business.

“The Freshman Fellows Program offersstudents a great hands-on experiential learn-ing-based approach to business educationand college life,” said Pat Cleveland, associatedean for undergraduate programs.“Everyonehere is excited about the program.Administrators and faculty like the enrich-ment opportunities available to first-year stu-dents.And the students are immersing them-selves in the Smith School, interacting close-ly with classmates, faculty, staff and alums —they are really enjoying the program andbuilding a community.”

Freshman Fellows are grouped in cohortsof approximately 40 classmates according toenrollment in BGMT 110, an introductorybusiness course.Though the program is not agraduation requirement, Cleveland saidabout 75 percent of incoming freshmanchoose to participate the first year.

Fellows cohorts move through the firsttwo years at Smith together, after which theycan choose to participate in up to twoupperclassmen fellows tracks in specialtyareas such as investments; research; account-ing; entrepreneurship; and logistics, trans-portation and supply chain management,among others. Besides coursework,Freshman Fellows take part in co-curricularactivities, including field trips, lectures,

retreats, workshops, volunteer projects, anddinner clubs.

The program kicked off with FreshmanFellows Orientation, held in late Augustbefore the start of classes. Students met theircohorts and had a chance to get to knoweach other through team-building activities.They played games, bonded over meals, andhelped each other complete a ropes courseand climbing wall at the university’sOutdoor Recreation Center.

“I met a lot of new people that I would-n’t have had a chance to otherwise,” saidFreshman Fellow Sarah Trippe.“We’re start-ing out bonding with Smith classmates.”

The Freshman Fellows have been busysince their orientation.They participated inthe annual Smith Business Week, whichincluded career workshops, a career fair andnetworking event, opportunities to getinvolved in student activities, and a tailgateparty before a Terps football game. In theFreshman Fellow lecture series, they’veheard entrepreneurs, business leaders and

business writers, such prominent figures asbest-selling authors Thomas Friedman (TheWorld is Flat, this year’s university-widefreshman book) and Jeremy Rifkin of theFoundation on Economic Trends. Fellows

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LEADERSDigest

Smith’s First FreshmanFellows Off to a Great Start

FRESHMAN FELLOWS SPEND TIME TOGETHER IN SMALL

GROUPS BOTH IN AND OUT OF CLASS, CREATING

BONDS THAT WILL LAST WELL BEYOND THEIR SCHOOL

YEARS.

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were also given the opportunity to attendfield trips to area cultural attractions, includ-ing the Phillips Collection art museum inWashington, D.C., and the Clarice SmithPerforming Arts Center on campus, to learnmore about the business behind maintainingsuch centers.The freshmen have shared din-ner with upperclassman students and Smithalumni as part of a dinner club hosted bythe school, made possible by a generousbequest from Stanley Bennett ’51 left to theSmith School in 2003.Three generations ofBennett’s family graduated from Smith; thesurviving Bennetts — nephew Millard andhis son Stephen — took part in the firstdinner club meeting. –CT


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UNET KEEPS STUDENTS, STAFF CONNECTED

Freshman Fellows find out about program information and upcoming events bylogging onto the undergraduate Web portal, UNet. The network, designed in-house by staff members and students for use by all undergraduate Smith students,shows calendars, provides information updates and links to apply for fellows pro-grams, and allows students to update their personal profiles and RSVP to events.Students are using the system and checking it often for, among other things, regular updates on Freshman Fellows activities planned for the coming semesters.

Last fall Smith School senior Ron Dalal got a taste of real-worldfinancial management.As equity analyst for the school’s new $50KSenbet Fund, Dalal monitored his sector, kept an eye on investmentopportunities, and recommended stocks to add to the fund’s portfo-lio. It was a job that involved extensive research, including a dis-counted cash flow analysis, comparables analysis and other tools usedto evaluate potential investments.

Dalal, a Finance Fellow, is one of 10 senior finance majors work-ing with the Senbet Fund, named for Lemma Senbet,William E.Mayer Professor of Finance, as part of the Finance Fellows program.The Finance Fellows program allows these exceptional financemajors to apply the theory they’ve learned in class while gettingpractical experience in portfolio management.The program is similarto the school’s Mayer Fund, a $1.2 million fund managed by second-year MBA students.

Managing real money in real time is a challenge for even sea-soned financial analysts, and one that the Finance Fellows haveembraced with enthusiasm, and a little healthy fear.“Our analysis ofthe economy and the financial markets isn't just part of our grade;it’s part of our fund’s financial success.We’re dealing with $50,000 ofreal money, which requires more dedication than any three creditcourse I’ve taken,” says Finance Fellow Randy Doak.

“The challenge these students face is to find the correct balance

between liking a stock on a qualitative basis and then being able tosupport it on a quantitative basis,” says Sarah Kroncke, visiting lectur-er and faculty advisor to the Senbet Fund.

The Senbet Fund’s goal is to beat the S&P 500 on a risk-adjustedbasis.The Smith School’s goal is to provide the best and brightest ofits finance majors with a real-world experience that will teach themthings you can’t learn in a classroom, and make them attractive can-didates to potential employers when they graduate.The FinanceFellows program will accomplish both. –SA

Undergrads Gain Real World ExperienceIn Finance Fellows Program

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Bookmarket

Giant global corporations use them to figure out their supplychain problems, governments use them to work on emergency pre-paredness plans, farmers use them to figure out what crops to plantand when, and the military uses them to figure out sophisticateddeployment and logistics plans. But they’re also used to figure outthe best way to tour through DisneyWorld, or how to load a truckwith goods so that they can be off-loaded in proper order.They’redecision models, and they’re used to help people and companiesoptimize their choices.

Decision models are a common tool in the field of operationsresearch, which uses data and mathematical techniques to solve spe-cific business problems. Saul I. Gass, professor emeritus of manage-ment science, is a pioneer in the field of operations research. Gasshelped develop the technique of linear programming, a simple butpowerful tool that allows researchers to create decision models.Thepower of linear programming is both its remarkable flexibility and itspower to model a large range of tremendously complex problems.

Today it seems natural to have computer programmers, mathemati-cians and engineers working on business problems. But it was a revo-lutionary idea in the 1960s, when Gass and his colleagues first trans-planted techniques and models developed for the military sector to theprivate sector business, starting with the oil refinery industry. His workwent on to have an enormous impact across a variety of fields.

Gass is also known for mentoring following generations of opera-tions researchers and for acting as an ambassador for the field.“Saulhad an uncanny ability to explain the methodology,” says Frank Alt,associate professor of management science and statistics. His layman-friendly book Linear Programming is one of the only computer pro-gramming textbooks to use cartoons to explain its concepts. Gasslater explained the origin, applicability and drawbacks of models in aseries of papers titled “Model World.”

Gass’ Smith School colleagues are continuing to provide thoughtleadership—as well as real solutions to real problems—in operationsresearch. Bruce Golden, France-Merrick Professor of Management

Science, recently worked with the University of Maryland Hospital’scardiac surgery department to optimize the number of beds in theintensive care unit (ICU), where there is one nurse per bed, and theremote telemetry unit, where less staff is required.“You can’t per-form surgery if all of the ICU beds are taken, and if all the remotetelemetry beds are occupied, then you can’t move patients from theICU into the less expensive ward,” says Golden.“So it’s important toget the mix of beds right. Our model was able to save the hospitalabout $3 million on paper.” Michael Fu, professor of managementscience, is working with the FDIC to evaluate each of its 6,000member banks in order to determine the level of premium to chargefor FDIC insurance.

What kinds of problems will operations research solve in thefuture? “The emergence of new fields creates opportunities for theuse of mathematical models,” says Alt.“We can’t always predict whatthose new fields will be, but we can predict that there will always bethe increased need for models and their analysis.”

Interested in learning more? A new book, Perspectives in OperationsResearch: Papers in Honor of Saul Gass’ 80th Birthday, co-edited by Alt,Fu, and Golden, was published by Springer as part of its“Research/Computer Science Interfaces” series.The first part of thebook provides a sweeping overview of the history of the operationsresearch field and Gass’ contributions, while the second part is a sam-pling of current research topics in the field. Papers were contributedby a bevy of distinguished scholars in operations research.

Creating a Model World:New Book on Operations Research Honors SmithProfessor Saul Gass


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Speakingof Business

“It turns out there were lots of nooks and crannies for

entrepreneurial action. But those nooks and crannies

might have been $5 million or $10 million businesses —

well worth doing, though not necessarily for VCs.”

David Kirsch, assistant professor of management and organization, talks about his

research findings that the dot-com boom era could have supported more new

Web-based ventures. Wall Street Journal, Nov. 8, 2006

“People have certain expectations about service now.

Basically, people believe service should be available all of

the time.”

Kathryn Bartol, professor of management and organization, talks about why

night-shift white-collar jobs are increasing for Americans. The (Baltimore) Sun,

Aug. 31, 2006

“Any time that China wants to, it can turn the

screw on all the money we owe China, drive up

interest rates and drive the American prosperity

and the prosperity of the middle class right into

a ditch.”

Peter Morici, business professor, on trade policies and massive trade

deficits that have led to a growing dependence on borrowing from

China to keep U.S. interest rates low. CNN: Lou Dobbs Tonight, Oct.

23, 2006

“They’re so stretched on multiple levels, they

often come to us with extremely broad requests.

My job is to home in and narrow the scope.”

Robert Krapfel, associate professor of marketing, talks about how

companies — especially small businesses — can get the most out of

the Smith School’s MBA consulting program. New York Times, Oct.

12, 2006

“There are a very large number of

private equity firms, and they’re all

out there looking for deals, and

the search for deals is one that

involves cut-throat competition.”

Albert “Pete” Kyle, Smith Chair Professor of

Finance, comments on a Justice Department

inquiry into possible anticompetitive behavior

among private equity firms. Marketplace, Oct.

10, 2006

“The key struggle of the multina-

tional enterprises in this new era is

to balance their need for efficiency and control with their

need for flexibility and speed of response.”

Sandor Boyson, co-director of the Supply Chain Management Center, writes an

opinion article about supply chain’s adapting to manage the globalization process.

Shanghai Daily, Aug. 28, 2006

“If you are going to do your own work during lunch, leave the office and use your

cellphone. It is important to make sure the two ventures are clearly delineated.”

Asher Epstein, managing director of the Dingman Center for Entrepreneurship, said it was acceptable to work on

side projects during lunch hour, if you’re not using company resources to do so. New York Times, Oct. 29, 2006

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KnowledgeTRANSFER

Business people around the worldincreasingly find themselves negotiating withpeople from other countries and cultures.Scholars have been divided on the effects ofa person’s culture on the negotiation process.One school of thought suggests that cultureis always important and always influencesbargaining outcomes.The second schooltakes the other extreme—that culture nevermatters and is irrelevant. Recent research byJoydeep Srivastava, associate professor ofmarketing, shows that neither view is quitecorrect.“Culture matters, but it interactswith bargaining outcomes in a dynamic way.Some bargaining situations will evoke uni-versal human reactions, whereas some mayevoke culture-based responses,” saysSrivastava.

Joydeep Srivastava, associate professor ofmarketing, used undergraduate university stu-dents in the U.S. and Korea to test whetherculture affects the outcome in bargaining sit-uations.The study was conducted simultane-ously in both countries. Study participantswere told that they were randomly selectedto receive offers from another student, whoproposed dividing a given amount of moneybetween them.

Srivastava found that as long as the con-text or situation is not made clear, peoplefrom both the U.S. and Korea tend to attrib-ute the cause of a particular behavior to anindividual or personality. However, once thecontext is made clear, the Koreans tended todiscount the individual or personality-basedexplanations in favor of contextual or situa-tion-based explanations.

Srivastava’s study demonstrates how a per-son’s cultural background may play a role intheir perceptions during a bargaining situa-tion. Western cultures, such as those of NorthAmerican and Europe, are more focused onthe individual. Because of this pervasive focuson the individual, in bargaining situations

Westerners are more likely to attribute thecause of a particular behavior to an individualor personality. For example, a Westerner maythink,“She is offering me such a small slice ofthe pie because she wants to have a biggerpiece of the pie than me.”

On the other hand, Eastern cultures suchas those of Asia and the Near East tend to bemore collectivist; the society focuses less onthe role of individuals and more on the roleof the group. This makes people from Asiancultures more likely to attribute the cause ofa particular behavior to the situation or thecontext rather than the individual:“She isoffering me such a small slice of the piebecause the pie is small, or maybe she has toshare her slice with several other people.”

Another noteworthy result to emergefrom the study was the effect of the “group”on bargaining outcomes.While the

Americans tended to remain relatively unaf-fected by whether the person making theoffer was making it solely on behalf of herselfor whether she was representing a group, theKoreans were sensitive to this change andtended to discount a personality-based expla-nation in favor of a group-based one. If toldthat that the person making the low offerwas representing the interests of his or hergroup, then the Koreans tended to be moreaccepting of the offer.

“When negotiating with your globalcounterparts,” says Srivastava,“try and putyourself in the other person’s shoes. Do notfocus on any one piece of information, butinstead consider the entire gamut of possibili-ties. Similarly, be sensitive to whether yourbargaining counterpart is a part of a group oris only representing herself.” –SA

>>GLOBAL ECONOMY

A Westerner may think, “She is offering me such asmall slice of the pie because she wants to have a big-ger piece of the pie than me.” Someone from an Asianculture may think, “She is offering me such a smallslice of the pie because the pie is small, or maybe shehas to share her slice with several other people.”


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Culture and Bargaining When negotiating for your slice of the pie, considerthe cultural context of your bargaining counterpart.

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Business success in the digital era is driv-en by information; knowledge sharing with-in organizations is crucial but not easy toachieve. If knowledge is power, then whatmotivates a worker to give up a source ofadvantage? If a worker shares knowledge,can she trust that it will be used correctly, orthat she will be acknowledged for her con-tribution? Why should she take time fromher own tasks to share information withothers? In some organizations, even admit-ting that you need information may be per-ceived as risky. Understanding the differentfactors that motivate workers to shareknowledge, and the ways that those factorsinteract, can help managers create an envi-ronment that results in the greatest amountof knowledge sharing, utilization and per-formance.

Researchers in the Smith School’sdepartment of management and organiza-tion have integrated several different motiva-tional mechanisms to explain and predictwhat motivates someone to share knowl-edge and what motivates the recipient touse that knowledge effectively.“Combiningboth perspectives resulted in a theoreticalmodel that was more than the sum of itsparts,” says Paul Tesluk, associate professor ofmanagement and organization.

Tesluk and his colleagues found thatwhen people are given an incentive forsharing knowledge with colleagues, groupincentives work better than individualincentives. Incentives had more effect whenmutual norms for knowledge sharing devel-oped between the knowledge sender andrecipient.This suggests that companies canmotivate knowledge sharing by creatingincentives that emphasize group perform-ance and are strongly reinforced throughclear norms for knowledge sharing.

“Rewarding individuals for knowledgesharing may send a mixed message,” says KayBartol, Robert H. Smith Professor ofManagement and Organization.“Groupincentives that reward cooperative behavior

reinforce a culture of open exchange.”Companies might also consider recognizingknowledge sharing in performanceappraisals, recognizing and praising thosewho go out of their way to actively sharetheir knowledge with others, and consistent-ly highlighting common goals and objectivesthat can link potential knowledge providersand recipients.

Bartol and Tesluk found that knowledgerecipients who were confident in their ownability to perform well on a task were morelikely to set high goals for their own per-formance when they trusted their partners.

Workers must also be motivated to applythe new knowledge they have acquired inways that promote performance.While bothknowledge sharing and goal setting haddirect effects on performance, performancewas highest only when participants both hadaccess to knowledge and set stretch goals forthemselves.“The higher the goals were set,the higher the performance improvement,but only if people had access to new knowl-edge as well,” says Tesluk.

The study was conducted in the SmithSchool’s Netcentric Behavioral Lab, a settingthat allowed the authors to control theknowledge sharing process in a way that isnot possible in the field.“We were able totrack what pieces of information were beingshared and precisely when they were beingshared,” says Tesluk. Future research mightinvestigate how these findings generalize toknowledge workers in actual organizationalsettings. –RW

Creating the Best Environment forKnowledge Sharing

FOUR WAYS THE INTERNET CANHELP YOU QUIT SMOKING

Every year, millions of Americans try tostop smoking. But as any smoker knows,it is a fiendishly difficult habit to break.Smokers need all the help they can get tosuccessfully quit. Most people know thatsocial support is an important key to anylifestyle change, and usually that supportcomes from friends and family. But arecent Smith School study shows thatonline communities can also provide aneffective support group.

Smith PhD student Jessie Ma studied theonline behavior of 411 members ofQuitnet.com as part of a study that exam-ined the effectiveness of online support net-works in helping smokers quit. Quitnet.commembers were able to get support 24/7from their quitting buddies by visiting thesite and posting on the forums. The mem-bers were strangers to one another, but hadshared goals and were going through simi-larly painful experiences. Ma found that theonline community was an effective tool tohelp those who were trying to quit smokingmeet their goals.

If you want to use an online supportgroup to help you quit smoking, here aresome tips based on this study to help makeyour experience more successful:

POST OFTEN. Ma found that the moretime a member spent on the Web with thecommunity, the less likely he or she wouldcontinue smoking.MAKE LOTS OF CONTACTS. The morepeople community members interactedwith, the more likely they were to stay onthe straight-and-narrow.KEEP AT IT. Those who interacted withthe online community for 18 months had abetter quitting success rate than those whohad only been participating for fivemonths. The longer someone stayed acommunity member, the less chance he orshe would backslide. BE OPEN AND TRANSPARENT.Members who shared the most aboutthemselves and their struggles to quit hadthe most success in their quest.

>>MANAGEMENT >>SOCIAL NETWORKS

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It’s not easy to make statistical methodsfascinating, particularly when you’re doing itin a 250-person lecture hall at eight in themorning.Yet Erich Studer-Ellis’ gatewaybusiness statistics course is one of the bestand most popular large classes on campus.He is famous for knowing many of his stu-dents by name, even though he teachesmore than 600 of them each semester.

Studer-Ellis, a Tyser Teaching Fellow inthe decision and information technologiesdepartment, was recognized by BusinessWeekas one of the nation’s favorite undergraduatebusiness school professors. Studer-Ellis wasone of 23 U.S. faculty members mentionedmost frequently by undergraduate studentswhen surveyed by BusinessWeek for itsOctober 2006 feature on the best under-graduate business programs. Since comingto the Smith School in 2000, he hasreceived the Smith School’s Krowe TeachingExcellence award and the University ofMaryland’s Top Terp award.

Studer-Ellis has an infectious enthusiasm

for the statistical methods he teaches.“I lovethis subject.These are great topics; they areextremely useful and very important, notjust in business but across your entire life,”he says.“You’re in the car listening to theradio, and the announcer mentions themedian price of new homes or that avoter preference poll has a marginof error of plus or minus 3 per-cent—do you understandthose ideas? Data are every-where, information iseverywhere. If you don’tunderstand it, game over;you might as well notbother to play.Understanding these sta-tistical methods allows youto make decisions and takeactions, and keeps you frombeing manipulated by informationyou don’t understand.”

Still, not everyone shares his passion forsimple regression analysis, at least not at

first. So how does he keep students’ atten-tion? “I’m very loud,” Studer-Ellis admits.“Iask questions; even though these classes arelarge, I expect people to participate some-how. I want students to be active learners,not just passive listeners.” –RW

KnowledgeTRANSFER

>>TRANSPORTATION


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Top Teacher: Erich Studer-Ellis

The U.S. airline industry hasbeen experiencing an enormousamount of collective and individualfinancial distress. But what impact does anairline’s financial woes have on its pricingstrategies? Does a firm in distress slash pricesin hopes of gaining market share and boost-ing sales? Or does it circle the wagons and adopt a moreconservative approach?

According to recent award-winning research by PhDcandidate Christian Hofer, the answer may be ‘a little ofboth.’ Hofer collected quarterly data on the top 1,000 domesticroutes from 1992 to 2002. He found that an airline’s financial condi-tion does have an effect on its prices, but the magnitude of theeffect depended on other factors, such as the firm’s operating costs,its market power, the market concentration, and the firm’s financialposition compared to its competitors.

The study showed that the poorer financial condition an airlinewas in, the lower its airfares were.The more concentrated the mar-

ket, the more likely a financiallydistressed airline was to lower airfaires.

But an airline was less likely to lower its fares if ithad high operating costs, if it had strong market power, orif its competitor airlines were also in financial trouble.

“Managers and policy makers often complain aboutthe anti-competitive effect of Chapter 11 bankruptcy

protection,” says Hofer.“They feel that Chapter 11 keepsdistressed firms alive and even conveys these firms competitive costadvantages.This contention, however, is based on the assumptionthat bankrupt firms do in fact price more aggressively than healthyfirms.This is one of the first studies to provide sound empirical evi-dence for that contention.”

This makes Hofer wonder if price cutting is actually an econom-ically viable turnaround strategy for distressed firms. Do distressedfirms that cut prices have a greater chance of survival than firms thatdon’t cut prices? Hofer plans to tackle some of these questions infuture research.

For more information, contact [email protected] –RW

Fly the Friendly Skies—But for the Best Prices,Wait Until They’re in Bankruptcy

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Anand Anandalingam, Ralph J.Tyser Professor of ManagementScience, and Michael Ball, OrkandCorporation Professor ofManagement Science, have beenselected as the co-program chairsfor the Annual INFORMS confer-ence to be held in Washington,D.C., in November 2008.

Kay Bartol, Robert H. SmithProfessor of Management andOrganization, was awarded theAcademy of ManagementDistinguished Service Award, a pres-tigious academy-wide award recog-nizing excellence in developing andenhancing a field of study; foundingor creatively editing a journal;and/or building institutions, such asthrough creative or unusually effec-tive service to a major professionalorganization. Bartol is past presi-dent of the Academy ofManagement, as well as past deanof the fellows of the academy.

Chris Bingham, assistant professorof management and organization,received the 2006 Carolyn DexterAward for best paper on interna-tional business (sponsored by theAcademy of Management).

Gilad Chen associate professor ofmanagement and organization,received the 2006 OutstandingReviewer award, Academy ofManagement Journal; the 2006George Mason University I/OPsychology Student Association(IOPSA) Distinguished Alumniaward; the 2005 Organizational

Research Methods Best Article ofthe Year award; and the AmericanSociety for Training andDevelopment’s 2005 ResearchArticle award.

Rebecca Hamilton, assistant pro-fessor of marketing, was named anMSI Young Scholar. About 20researchers in marketing arenamed every other year.

Wolfgang Jank, assistant professorof management science and statis-tics, was elected program chair forthe Computing Section of theAmerican Statistical Association(ASA).

Edward Locke, emeritus professorof management and organization,was honored with theDistinguished ScholarlyContributions Award by theAcademy of Management.

Wendy Moe, assistant professor ofmarketing, has been elected aschair of the American StatisticalAssociation, section on Marketingand Statistics.

Rebecca Ratner, associate profes-sor of marketing, received theaward for “Most Influential Paperin Conflict Management from1998–2001” from the Academy ofManagement for her paper “TheDisparity Between the Actual andAssumed Power of Self-Interest.”

Raghu Raghavan, associate pro-fessor of management science, wasrecently awarded the 2005 Glover-Klingman prize for the best paperpublished in the international jour-nal Networks. The paper, titled“Strong Formulations for NetworkDesign problems with ConnectivityRequirements,” was co-authoredwith Tom Magnanti, dean of engi-neering at MIT.

EDITORIAL APPOINTMENTS

Wendy Moe, assistant professor ofmarketing, has been appointed tothe editorial board of the Journal ofMarketing.

Lemma Senbet, William E. MayerProfessor of Finance, has beenappointed finance area editor forthe Journal of International BusinessStudies.

GRANTS

Michael Ball, Orkand CorporationProfessor of Management Science,has been awarded a 3-year,$2,150,000 grant from NASA, enti-tled “Stochastic and DynamicModels for Managing Air TrafficFlows.” The University of Marylandis leading this effort, which alsoinvolves MIT, UC Berkeley, VirginiaTech, and Metron Aviation.

Thomas Corsi, Michelle E. SmithProfessor of Logistics, and CurtGrimm, Dean’s Professor of SupplyChain and Strategy, have receiveda $280,000 grant from the U.S.Department of Transportation tostudy “Motor Carrier Operationsand Safety Data Collection andAnalysis.”

Vojislav Maksimovic, Bank ofAmerica Professor of Finance, hasreceived a $100,000 grant fromNSF to study “Legal Institutionsand Doing Business: A CrossCountry Analysis.”

Debra Shapiro, Clarice SmithProfessor of Management andOrganization, M. Susan Taylor,Dean’s Professor of HumanResources, and Miriam Erez, a visit-ing scholar at the Smith School,have been awarded a KaufmannFoundation grant of $55,000 for astudy regarding antecedents toorganizational innovation.

Galit Shmueli, assistant professorof management science and statis-tics, has received a $261,000 grantfrom the Johns Hopkins AppliedPhysics Laboratory to work on“Developing/EvaluatingProspective Biosurveillance Tools.”

Faculty Awards and Honors

Over the past 10 years, the Smith School has devel-oped a reputation for possessing a formidableresearch faculty. Each of our academic departmentsis home to world-class scholars as well as 110 PhDcandidates, who after graduation go on to place-ments in prestigious schools in the United Statesand around the globe. Because of their efforts theSmith School’s research engine is constantly turn-ing, producing studies that bring together theory

and application for the benefit of students, aca-demics and business practitioners around theglobe. Our research prowess received prominentattention from BusinessWeek last fall. In its 2006 sur-vey of “The Best B-Schools,” the magazine rankedthe Smith School No. 12 among all U.S. schools inthe “intellectual capital” category, described as thenumber of faculty articles published in top academ-ic journals the previous year.

THE BEST B-SCHOOLS

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When you think of products that demon-strate the way technology has changed thebusiness world, computer chips immediatelyleap to mind. Corn chips? Not so much. ButFrito-Lay North America, a division ofPepsiCo, is a great example of an older andestablished company that has leapfrogged itscompetitors by savvy exploitation of the dig-ital economy’s key drivers.With high-techunderpinnings, a global footprint and anentrepreneurial drive that any dot-com start-up would envy, the company is adapting,thriving and taking a mega bite out of itssnack-food competitors.

At the helm of this $11 billion globalenterprise is Smith School Board of Visitorsmember Al Carey (BSOS ’74), who took thereins as president and chief executive officerof Frito-Lay last summer. Since then he’sbeen shuttling back and forth betweenPepsiCo’s headquarters in Purchase, NY, andFrito-Lay’s home office in Dallas,TX.“I’mrunning fast right now,” Carey admits. Morethan 47,000 people work for Frito-Lay.Thecompany owns 15 brands worth more than$100 million, including Tostitos, Doritos andCheetos, and generates 38 percent ofPepsiCo’s profits.

But the company isn’t resting on its lau-rels. Frito-Lay has an aggressive set ofgrowth expectations—expectations that pres-ent quite a challenge in an environmentwhere health issues and expanding waistlines

are a growing concern for consumers.“As acountry, we’re dealing with an obesity epi-demic,” says Carey.“So as a company, we’reworking to develop products that are healthyfor consumers, and trying to change ourimage.”

How is Carey leading his company toeven greater heights despite the challenges itfaces? By taking advantage of three keydrivers of the digital economy: technology,globalization and entrepreneurship.

EntrepreneurshipThe digital economy rewards entrepreneurs:the creative, the flexible, the driven, the risk-takers. It’s not easy for a large, establishedorganization to operate on a global scale yetremain nimble enough to respond quickly tothe rapid pace of change. Carey says thatPepsiCo has given him and other top execu-tives an unprecedented amount of freedomto pursue the next big thing.

“I doubt you’d find another $34 billioncompany that’s as entrepreneurial as ours,”says Carey.“Compared to other large com-panies, there is a lot of freedom and respon-sibility given to managers.You feel like it’syour own business.”

Carey appreciates this freedom, and he usesit to pursue his passion for innovation—a pas-sion shared by everyone in his organization.“Our performance expectations are so highthat you can’t achieve your performance goals

Forget about Coke. When it comes to leading inthe digital economy, PepsiCo is the real thing.

at the Competition

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unless you have innovation. So we spend agreat deal of time developing new products tomeet consumer needs,” says Carey.

As consumers express a growing desirefor healthier products, PepsiCo is “veryaggressive about developing new productlines,” says Carey.Though it has not aban-doned carbonated drinks, the company hasexpanded its product line to include flavoredwaters, green teas, isotonic drinks likeGatorade, enhanced waters, and juices forti-fied with vitamins. Frito-Lay is working toproduce snacks that will have more fiber, lesssalt and more protein.The company recentlyrolled out a line of fruit and vegetable crispsunder the Flat Earth brand name that con-tains half of a serving of fruits and vegetablesper ounce.

TechnologyNew technology is making it

possible for Frito-Lay to cre-ate these nutritious offerings.Manufacturing technologiessuch as vacuum frying make

it possible to turn nutritiousbut water-laden fruits and veg-

etables into crisp and appealingsnacks. Baked potato chipsrequire a different manufac-turing technology than tra-ditional chips.And Frito-Lay

is exploring technologies thatwill allow its manufacturing

plants to produce some of thecompany’s new, healthierproducts on existing manu-facturing lines.

Carey isn’t only excitedabout new technologies.

Established technologies arebeing applied in innovative ways to

generate cost savings for Frito-Lay.“We’refiguring out how to use solar energy panelsto heat water to produce enough steam andenergy to run an entire manufacturing line.We’re also looking at ways to take the wastesteam from production and pumping it back into the plant to provide energy for the plant.”

The company’s vast and complicated sup-ply chain is also reaping the benefits of cut-ting-edge technology. On the go-to-marketside, Frito-Lay has 18,000 route salespeople

who drive Frito-Lay trucks and deliverproduct to stores. In the past, route salespeo-ple had to order product, drive to the distri-bution center, pick up their product, load itonto a cart, check out of the distributioncenter, and then load their trucks. It was acompletely manual, extremely labor- andtime-intensive process.

These days Frito-Lay uses a sophisticated“pre-picking” system and some powerfulartificial intelligence (AI) software.The AIprogram recommends the amount of productto salespeople based on their purchasing his-tory. Each salesperson then uses a handheldcomputer to T-Com the order to the distri-bution center, where the orders are pre-picked and pre-loaded on their trucks beforethe salesperson even arrives in the morning.

Moving the complexity of this process upthe supply chain from the route salesmenhas saved route salesmen time and resultedin better sales for Frito-Lay.“The salesper-son’s route can be larger, because he isn’tspending as much time at the distributioncenter in the morning; his income is bigger;and he can spend more time with storemanagers developing those relationships,”says Carey.“It’s been a great success for us.”

Carey says the company is employingtechnological innovation at every level of itsbusiness. It is an interesting time for some-one who is, by his own admission,“not atechnology person.” But despite his non-technical background he understands theimportant role he plays in shaping a cultureat Frito-Lay that not only accepts but wel-comes technology-driven changes.“Theleader has to endorse the mindset of beingenthusiastic about using technologicalchanges to drive the business.That enthusi-asm sets an atmosphere that attracts the bestresearchers, the best technologists and thebest engineers, who then want to come andwork for you,” says Carey.

GlobalizationFrito-Lay had its humble beginnings withtwo southern U.S. entrepreneurs in 1932.Today the company has a presence in nearly170 countries, and 35 percent of its profitscome from international markets.This num-ber has increased significantly in the pastseven years.The company’s commitment toexpanding its global footprint has led to big


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Al Carey, Unwrapped1974 Graduated with B.S. in government

1969—1974 Senior distance runner onthe ACC-championship Terps Track andField team

Married with four children, ages 24, 19,15 and 13

2001 Smith School DistinguishedAlumnus Award

2006 Smith Leadership and Excellence‘Business Excellence’ Award for PepsiCo

Member of Smith School Board ofVisitors since 2002

Member of University of MarylandBoard of Trustees

Has given scholarships to the track teamand the university’s athletic program

Instrumental in shepherding severalcorporate gifts to the Smith School,including the PepsiCo Chair of ConsumerResearch and $150,000 toward the SmithTalent Acquisition and Referral System(STARS) program scholarships

Encourages PepsiCo to recruit vigor-ously at the Smith School

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successes in emerging markets. In India andChina, where PepsiCo made significantinvestments in brand development, Pepsinow has as much market share as arch-rivalCoca-Cola.

Frito-Lay actively markets its line ofAmerican snacks overseas, but it has alsofocused on tailoring products to the flavorneeds and wants of its global markets.Sabritones brand chili and lime flavoredpuffed wheat snacks are a hit for the companyin Latin America, for example, while dill-pickle-flavored Lays crisps are popular in theUnited Kingdom. It’s a winning strategy thatcombines globalization with localization.Carey has high expectations for continuedgrowth in international markets and expectsthat Frito-Lay will continue creating innova-tive products for consumers around the world.

Adapting to ChangeCarey has been part of the PepsiCo family for25 years, most of them with Frito-Lay. In thatquarter-century the world has been irrevoca-bly changed by the effects of technology. ButCarey isn’t fighting change.As a leader for thedigital economy, he welcomes it.

“It’s like changing the tires onyour car.You don’t wait tillthe wheels come off thevehicle,” says Carey.“You change constant-ly to try to stay aheadof the market. I con-stantly look at our busi-ness and benchmark itagainst our competition—even against companies that are not ourcompetitors.”

Carey admits that at one point Frito-Layhad a reputation for ‘changing the tires’while still going 60 miles an hour. Careyfeels there is now more stability in the com-pany, but he knows that change is unavoid-able.“If you have high expectations forgrowth, then you have to be prepared forchange,” says Carey.“I’ve been through verylarge changes in this company, where wehad to reorganize Frito-Lay almost from theground up.We had to reduce expenses by$200 million and lay off 2,200 peoplebecause we didn’t make the changes weneeded to along the way. I don’t ever wantto do that again.”

Frito-Lay has practiced what Careypreaches. In addition to its constant productinnovation, its commitment to making thebest use of available technologies, and itscommitment to global expansion, Frito-Layhas also been remarkably sensitive to prevail-ing winds of change in the marketplace, par-ticularly as it relates to consumer healthconcerns.The company was one of the firstfood-processing companies to respond tohealth concerns about trans-fats by eliminat-ing all hydrogenated oils from its products. It

was a remarkably quick response thatinvolved change on a huge scale, but it was astep the company needed to take, and fromwhich it has benefited.

With Carey at the helm, Frito-Lay willcontinue to adapt and change, making imag-inative and innovative use of technology togrow its business in the competitive globalmarket.And Carey will continue to live thelife of a leader for the digital economy, in aworld where corn chips and computer chipsare more connected than ever.

Some people are born leaders, says Frito-LayPresident and CEO Al Carey, but others are

mentored into leadership, and he was oneof the latter. Carey, who has served on theSmith School’s Board of Visitors since2002, believes that leadership can be

taught, developed and grown. As presidentof his fraternity and captain of the University

of Maryland track and field team, Carey’s earlyleadership experiences helped others identifyhis leadership potential—potential he didn’tnecessarily recognize in himself.

Carey remembers mentors from his earlyyears, like Roger Enrico, former CEO ofPepsiCo, who built his confidence as well ashis skills. “There are many potential leadersout there who may not know it,” says Carey.“When you find someone who has what ittakes, you’re responsible for building theirconfidence. It is magical to see them rise to awhole new level of performance as their confi-dence rises.”

“Most people can perform much better thanthey think they can, if they have a mentor orleader who helps them develop.”

When Carey hires a Smith graduate helooks for both leadership potential and a col-laborative style of management, an asset espe-cially important in a company like PepsiCo,where people often manage across functionsand divisions within PepsiCo.

And if you work for Carey, and he thinksyou have leadership potential, you may findyourself tossed into a situation that’s just a lit-tle beyond what you think you’re capable ofdoing. That’s because Carey has found someof his most significant growth experiencesoccurred when he was thrown into jobs thatreally challenged him.

Carey’s advice for those coming upthrough the ranks? “Serve your organization;focus on its development rather than your ownpersonal development, and you’ll find yourselfrewarded in unexpected ways. The servant-leadership model is a potent one: your role isto serve your organization, not build your ownreputation. I have found that every time I’vefocused on building my organization, thengood things have happened to me. It’s a morepersonally rewarding experience, too.”

Some people are born leaders. Others are Al Carey

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The Behavioral Lab was opened in 2003 tohelp the Smith School’s marketing, manage-ment and organization, and decision andinformation technologies departments con-duct research on human behavior.The labhas 18 networked workstations with moni-tors set in individual carrels.This keeps par-ticipants from seeing—and being influencedby—the behavior of those around them.Video cameras and a one-way mirror permitrecording and monitoring of participants’interactions. Eye-trackers that look like stan-dard computer monitors allow researchers tosee exactly what people are looking at on ascreen.The school’s Media Lab software per-mits researchers to administer questionnairesvia computer and capture clickstream data asparticipants use the Internet.

These tools make it possible to conductstudies that would be impossible without thelab’s specialized equipment. One such studywas conducted by Roland Rust, DavidBruce Smith Chair in Marketing, RebeccaHamilton, assistant professor of marketing,and former Smith PhD Debora Thompson.In this experiment, participants sat at the lab’scomputers to either use or evaluate one oftwo virtual digital video players: one loadedwith features, and the other relatively simple.The results were surprising. Most peoplewho evaluated the digital video players with-out using them said they would rather have adigital video player with more features thanwith less. But when study participants actual-ly used the virtual video players, the majorityfound the feature-loaded version frustratingand hard to use.What people said they want-ed turned out to be quite different than what(Continues on page 22.)


Technology-Driven BehavioralResearch at SmithIn the olden days—say, 10 years ago—researchers studied human behavior using one-way mirrors and paper-and-pencil questionnaires. In the Smith School’s state-of-the-art Netcentric Behavioral Laboratory, researchers use sophisticated computer softwareto record the responses of study participants through computer keyboards, joysticks,and even special monitors designed to track human eye movements.

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SPRING 2007 O SMITH BUSINESSSPRING 2007 O SMITH BUSINESS

Cool Tools: The Eye-TrackerEye movements are the most frequently made in the human body,

and the fastest; on average, the human eye moves 150,000 times a

day. Smith’s new Tobii eye-tracker gives researchers proof positive of

what people are actually looking at when they view a print advertise-

ment, a TV commercial, a product package or a Web site—valuable

information for marketers. The eye-tracker consists of three cameras

hidden in the lower edge of a large desktop monitor which track the

head and eye movements of the person sitting at the computer.

Michel Wedel, PepsiCo Professor of Consumer Science, recently con-

ducted a study using eye-trackers to determine the effectiveness of maga-

zine advertisements, including a Mercedes ad. This advertisement consist-

ed of a full-page reproduction of Marilyn Monroe’s face, with the famous

beauty mark on her left check replaced with the Mercedes logo. Study

participants sat at eye-trackers and viewed the ad. Remarkably, every par-

ticipant’s eyes moved across the ad in basically the same pattern, showing

that each person was perceiving the ad in basically the same way. Wedel

was able to draw general conclusions to describe the ad’s effectiveness

from the results of this study.

“That’s one of the reasons why this is better than traditional research,”

says Wedel. “In the past we’ve just had to ask people, ‘What did you look

at? Did you look at the brand?’ People don’t remember and try to recon

struct their memories, a process which isn’t always very accurate.”

Using eye-trackers provides researchers like Wedel and others in the

marketing department with reliable, quantitative evidence of what really

captures consumers’ attention when they look at advertisements. The eye-

tracker makes objective something that before had been subjective. In

doing so, it gives marketers invaluable information about what works and

what doesn’t in print and Web advertising. Wedel has studied thousands

of print ads using eye-trackers to determine the optimal size of different

elements in ads. How large should the pictorial element be? How large

should the text elements be, and where should they be located? One

surprising finding: the brand element should be big—really big—much

larger than the brand representation currently common in print ads.

Eye-trackers are expensive, so the Smith School only has one, not

enough to do a full-fledged study with many participants yet. Instead,

researchers like Wedel use the school’s eye-tracker to design studies in

partnership with firms such as Verify International in the Netherlands and

Tobii Research in Norway, which then pony up the cash to conduct the

test in a specially-equipped research facility. The data is then gathered

and analyzed by Wedel and other professors.

For more information about this research, contact

[email protected].

21

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(Continued from page 20.)they actually liked when they had a chanceto use the product.

Being able to actually use the productswas a key part of the study’s design becauseparticipants could not imagine how theirproduct preferences would change beforethey had a chance to use it.They had toactually use the virtual video player for the“feature fatigue” effect to occur.

“Because we don’t have all the distrac-tions of the real world, the Behavioral Labgives us both a more accurate way to evalu-ate behavior, and a way to capture behaviorswe couldn’t observe in any other setting,”says Hamilton, who is chair of the commit-tee that manages the Behavioral Lab.“Forexample, when participants use virtual prod-ucts in the lab, we can record their entireinteraction with the product and then askthem how they feel about the product afterthey’ve used it.”

In another recent study Rosellina Ferraro,assistant professor of marketing, looked atpriming and suggestibility among consumers.Ferraro wondered if seeing a product repeat-edly in real-life situations would affect con-sumer’s choices. In her study, participantswere shown a series of 20 photos, some of

which displayed a bottle of Dasani waterbeing used by people in ordinary situations.Each photo was on the screen for exactlytwo seconds.After viewing the photos, theywere offered a bottle of water as a thank-youfor their time. Several brands of water werepresent, including the Dasani brand. Ferrarofound that participants who were exposedmore often to the Dasani photos, and did notknow or remember that they had seen thephotos, were more likely to choose theDasani brand.

Practice to TheoryFor researchers in the school’s managementand organization department, the lab is anexcellent environment to test behavioraleffects that they observe in the actions ofmanagers and leaders in real-world situations.

“In a field study we may see an effect, butwe can’t necessarily explain why that effectexists, or what conditions led to that effect,”says Paul Tesluk, associate professor of man-agement and organization.“In real life, youcan’t say to one CEO ‘Okay, go out and becharismatic for us’ and to another CEO‘Don’t be charismatic.’And you can’t then goout and stop employees after the CEO’sspeech and ask ‘How do you feel? What is

your level of commitment after thisspeech?’”

That kind of human interaction may notbe possible in a field study, but it can happenin the Behavioral Lab.The lab’s capabilitiesallowed Long Jiang, former PhD student inmanagement and organization, now an assis-tant professor at San Francisco StateUniversity, along with Tesluk, Ken G. Smith,Dean’s Chaired Professor of BusinessStrategy, and Ritta Katila, StanfordUniversity, to examine the roles CEO behav-ior plays in shaping an environment con-ducive to constructive conflict, the kind thatfosters debate and discussion and results inthe effective synthesis of diverse information.The study was funded in part by a $325,000grant from the National Science Foundation.

In the study, student participants workedas teams using a business simulation.The stu-dents were given a complicated decision-making task which required them to com-bine their information and skills. In additionto ‘winning’ the game by completing thetask, the students assigned as CEOs wereinstructed to behave in a way that encour-aged fairness, so that each member of theirteams had equal input. Researchers thenmeasured participants’ interactions through-out the process of the simulation, stoppingstudents periodically to ask them about theCEO’s behavior.

The study also had a field component.This combination of field study and the con-trolled experiments in the Behavioral Labproduce much stronger and more reliableresults than a field study alone, says Tesluk.

For more information about the researchtaking place in the Smith School’sNetcentric Behavioral Lab, please visitrhsmith.umd.edu/behaviorlab, or e-mailRebecca Hamilton [email protected].

Cool Tools: The Joystick

Humans have a tendency to recoil from

things they find negative or distasteful and

approach things they find positive and

pleasant. And it isn’t just an emotional draw-

ing-away; there is a measurable physical

response as well. Using computer game con-

trollers, or joysticks, a researcher can actually

measure the degree of a person’s distaste or

attraction for an object by measuring the

physical pushing-away or pulling-toward

motion he or she makes while holding the

joystick.

The center developed a prototype.

Rosellina Ferraro, assistant professor of mar-

keting, will use the Behavioral Lab’s brand-

new computer joysticks in a study designed

to measure student’s reactions to academic

goals vs. other tempting activities, like

watching television or chatting with friends,

in situations where they are reminded of

their own mortality. In other words, if you

are reminded of how short your life really is,

are you more or less motivated to do your

homework?

Students will sit before computer moni-

tors holding the joysticks while words flash

across the screen. Ferraro will use the joy-

stick to measure the speed with which stu-

dents pull toward or push away the joystick,

which will tell her whether the students

regard the words in a positive or negative

fashion.

For more information about this

research, contact [email protected].


22

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23

Connections

JUANITA RUSSELL ’95 knows thattechnology has had a transformativeeffect on the business world. Her com-pany wouldn’t exist if it weren’t forelectronic data transfers, secure online transactions, and of course, theInternet.

MERSCORP, Inc. (MERS) is autility for the mortgage banking indus-try that streamlines the process of doingbusiness by eliminating many of theindustry’s manual practices. By creatingan electronic registry of mortgage orig-inators and servicers, the company hassaved its customers millions of dollars.

The Internet in particular has had astrong impact. Russell, who remembersthe days of dial-up, says that using abrowser-based system improved thecompany’s processes and made it easierfor customers to access the system.Those customers include almost all ofthe nation’s largest mortgage compa-nies.

“More than half of all new residen-tial loans originated in the UnitedStates are registered on our system,”says Russell.“We ultimately envision ourselves asthe first step in a completely paperless mortgage.”Russell has been with the company since 1997,and has been involved since its inception whenshe was a financial analyst with EDS, the compa-ny that designed MERS’ technology platform.

As controller and vice president of MERS,Russell is responsible for the company’s account-ing functions.When she joined the startup, it hadyet to acquire any customers. Russell establishedall of its accounting policies and procedures. Shealso developed the financial controls and report-ing protocols.

It’s a job she loves, and one she never couldhave gotten without her Smith School experi-ence. Russell returned to college in her mid-20sas a wife and mother of two small children.“Icame with a different frame of reference than the

other undergraduates,” she laughs.“But the SmithSchool was a very supportive environment.Everyone wanted you to succeed. Coming herewas one of the best decisions I ever made.”

After a number of years focusing on her familyand career, Russell has become more involvedwith the alumni community. Last fall she servedas a round one judge at the 2006 MBA CaseCompetition, letting her give feedback to teamspreparing to enter the competition’s semi-finalround.

“Serving as a judge allowed me to give backto my school and to impart some of my real-world experience to the next generation of pro-fessionals,” Russell says. “It was an honor and apleasure for me to participate.”

Russell lives in Leesburg,Va., with her hus-band and two children.

Juanita Russell ’9560 SECONDS WITH…

Julia Pulzone NamedNew Alumni ChapterBoard President

Julia Pulzone ’84, MBA ’93, newpresident of the Smith SchoolAlumni Chapter Board, says oneof the board’s main goals is toincrease its visibility and encour-age alumni involvement. Pulzone,who has been a member of theAlumni Chapter Board for sixyears, says their goals are to getout the word that the chapterexists and to create new programsthat will bring in more alumni andencourage them to reconnectwith the school. “It’s important toidentify what programs alumniwant,” says Pulzone. “Recently theboard assisted with the develop-ment of a major survey, theresults of which will help us iden-tify programs and events to devel-op for alumni.”

Pulzone spent 22 years work-ing in senior financial manage-ment and is now a managingdirector at a private equity firmbased in Washington, D.C. Shealso has experience in operatingyoung and growing ventures.Now Pulzone will have the oppor-tunity to apply her experienceidentifying viable ideas anddesigning sound business plans tothe Smith School’s alumni out-reach programs. She is pleasedwith the enthusiastic participationin the Smith School’s AlumniMentor Program, and hopes tosee more alumni participate incoming years. She also expects tosee some interesting new ideascome from the board’s variouscommittees.

“We’d like to give alumni a rea-son to continue building a rela-tionship with the Smith Schoolafter graduation,” says Pulzone.

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SMITH BUSINESS O SPRING 2007SMITH BUSINESS O SPRING 2007SMITH BUSINESS O SPRING 2007

24

Connections

Teresa Iannaconi, MBA ’7860 SECONDS WITH…

When TERESA IANNACONI, MBA’78, spoke at Smith’s Fall 2006Business Ethics Lecture Series, shebrought 40 years of experience inregulation and compliance to thepodium.

Iannaconi started her career withfour years in public accounting beforeaccepting a position with the Securitiesand Exchange Commission (SEC),where she worked for six years before

coming to the SmithSchool for her MBA. Sheeven started a PhD, butwhen her husband wasoffered a posting in Italyshe left cheerfully, andon her return to theUnited States was eager-ly welcomed back to theSEC. In 1995 she movedon to KPMG, one of theBig Four accountingfirms, where she wasthe partner in charge ofthe SEC and practice

advisory group, responsible for over-seeing inquiries from KPMG clientengagement teams about technicalaccounting matters and SEC compli-ance. Iannaconi was responsible fortechnical consultations in connectionwith the national-level reviews andaudits of public companies of all kinds,from General Electric to small biotechcompanies.

Technology is one of the strategi-cally important aspects of accounting,says Iannaconi. It allows for timely

aggregation and reporting of informa-tion—a boon to markets and toinvestors. It also makes it possible forinformation to be quickly sharedbetween divisions of multinational cor-porations. “When I was fresh out ofschool in the 1960s, there was no wayto have timely reporting from interna-tional companies,” says Iannaconi. “Itwould be months before you couldfind out what your Singapore sub-sidiary was doing. Because of theInternet, today you can find out whatis going on in Singapore more or lessinstantly.”

The speed at which business is con-ducted can be beneficial, because itenables companies to see trends andrespond on a timely basis, saysIannaconi. But it is not always a boonfor workers. “There’s no such thing asa 9-to-5 workday anymore, because itis always the workday somewhere inthe world. I field calls from all aroundthe world well into the night. There’san international timelessness to busi-

ness now. It’s exciting, butit can be hard to haveboundaries on your day,”says Iannaconi.

Iannaconi is transition-ing into a new positionwithin KPMG, organizingprograms to provide tech-nical updates and presenta-tions to faculty and stu-

dents at business schools aswell as client and non-client groups. Itis a knowledge-sharing program thataims to bring the most up-to-dateinformation to a broad audience thatincludes students and faculty. “I havefound that accounting programs arereally eager for contact with account-ing practitioners,” says Iannaconi.

She is also getting more involvedwith the Smith School, first helping toraise money for a KPMG endowed fac-ulty position, and now serving on theBoard of Visitors.

MBA ALUMNI MENTORPROGRAM AT SMITHBY LORETTA GOODRIDGE, MBA CANDIDATE 2008

Every fall the Smith School pairs upcurrent MBA students with SmithAlumni through the MBA AlumniMentor program. I had the opportu-nity to meet my mentor, Gene Noble,for the first time at the Alumni MentorProgram Kick-Off Brunch last fall.

Gene has an entrepreneurial back-ground, and immediately startedoffering me advice on idea genera-tion and funding. We had a wonder-ful conversation and discussed mygoals for the future. At the brunch Igot to know the other mentors andprotégés in my cluster, theEntrepreneurship/Venture Capitalistcluster, as well. Throughout the year,a second-year MBA student, designat-ed the cluster coordinator, will helporganize events that allow the wholegroup to gather for question answer-ing and advice sharing, not to men-tion a good time.

The program also offers eventsthroughout the year. These eventsallow all 14 clusters to intermingle,like a recent happy hour that tookplace in Bethesda. At this event I hadthe opportunity to catch up withmembers of my cluster, as well as talkand make contact with mentors in mysecondary area of interest, marketing.

I signed up to be a protégébecause the program offers theopportunity to receive guidance fromexperienced professionals that will aidme in navigating graduate school,internships, and ultimately my career.The program provides a pathway toqualified mentors who are excited tobe involved and help students in anyway they can. It fosters a relationshipthat would normally be difficult forstudents to achieve on their own. Myexperiences in the program havebeen encouraging thus far and I lookforward to taking full advantage ofthe advice, experience and wisdomthe alumni mentors bring to the program.

“When I was fresh out of school in the1960s, there was no way to have timelyreporting from international compa-nies. Because of the Internet, todayyou can find out what is going on inSingapore more or less instantly.”

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GAURAV PAL, MBA ’02 worked for alarge government contractor, but he had ahard time finding information about federalcontracts. And if he was having a problem,Pal figured that other people were runninginto a similar roadblock. It was a problemworth solving, and Pal thought he mightbe the one to do it. That epiphany led to anew product, the launch of a business, anda very busy and exciting year for Pal.

Pal’s product, fedXccel, is an online data-base that contains a universe of informationon the purchasing habits of the federal gov-ernment. In the Washington, D.C., area, it isalmost impossible to be out of the federalgovernment’s sphere of influence; it spendsnearly $300 billion a year, about $70 billionwith small and emerging companies. Manycompanies are eager to capture federal busi-

ness, but lack the information they need. Paldeveloped fedXccel to meet that need,based on his own hard-won experience pur-suing federal contracts.

Pal launched his company, netxccel, inJanuary 2006 and rolled out the first versionof fedXccel in February. Customers startedsigning up immediately. The companyreceived its first round of funding throughthe Dingman Center for Entrepreneurship’sCapital Access Network (CAN) of angelinvestors, and the Smith School has been animportant resource for Pal in many ways.

“The Smith network has been just phe-nomenal for my company,” says Pal. “Werecently signed up IBM as a customer andpartner due to connections I was able tomake through Smith alumni.” The Smithnetwork has helped Pal find customers, busi-

ness partners, investors, and employees, hesays. Charles Olson, visiting associate profes-sor of logistics, sits on the company’s Boardof Directors.

Pal has also internalized the SmithSchool’s viewpoint on the relationship ofbusiness and technology. “My company isn’treally about technology,” he explains. “If youlook at Google, technology underpins theirbusiness, but the technology isn’t what madeGoogle. They had a vision to organize theworld of information. Our vision is slightlysmaller—to help the government organizeprocurement information. Technology is ourlever to do that, but I also needed all theother stuff they taught me in business schoolto develop the insight to understand thebusiness problem and engineer the solution.”

Gaurav Pal, MBA ’0260 SECONDS WITH…8

Job OpportunitiesSOURCE (Smith Online Users Resource for Career Employment) isthe Smith School’s online job posting system, used by employers,students and alumni to facilitate the recruiting of talented candi-dates. In 2005, Smith implemented a system that enables employersto post positions for alumni, and alumni to find and apply for thosepositions. We also provide links to other job boards since job seekersshould be using multiple vehicles to search for employment oppor-tunities.

Career Development ResourcesThe Smith Office of Career Management (OCM) partners with LeeHecht Harrison to provide career development resources to Smithalumni. Lee Hecht Harrison’s CareerTools, a comprehensive onlineresource for job search and career management, offers a 10-stepmilestone process for career management, downloadable careerplanning tools, research guides, job postings, networking opportuni-ties, and more. For a discounted fee, alumni can purchase additionalservices through the CareerTools Web site, including cover letter andresume critiques and individual career coaching.

NetworkingNetworking opportunities are everywhere at Smith. The schoolholds presentations, receptions, workshops, forums and a host ofother events. Attend Smith events to build relationships, share infor-mation or develop contacts. If you want to network to hire Smithalumni or students, we can facilitate that too. In addition to themany events profiled on the Smith web site, SOURCE andCareerTools list non-Smith events.

Company and Industry ResearchIn addition to the information available through the CareerToolsWeb site, Smith provides access to two online research guides, Vaultand WetFeet. These sites provide career guides and articles on com-panies, industries, and career development topics. Sample compa-nies include Booz Allen Hamilton, General Mills, McKinsey &Company, and Proctor and Gamble. Industry guides range fromaccounting to venture capital, while career development topicguides offer information on cover letters, interviewing, negotiating,resumes, and more.

Access these resources at www.rhsmith.umd.edu/career/alumni.

Please feel free to contact Dana Monroig in the Smith Office ofCareer Management with questions about alumni career resourcesat 301-405-9978 or [email protected].

Ask the OCM: Q I AM AN ALUMNUS. WHAT CAN SMITH DO FOR MY CAREER?

A: In two words…a lot!Whether you are looking for a new job, considering a careerchange or want to network with Smith students and alumni, theSmith School of Business can help.

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Connections

’60sMelvin J. Maas ’65 is theWashington, D.C., representativefor the Independent Charities ofAmerica.

’70sJames Blaisdell, MBA ’77, is chieftechnical officer of Vendavo, aprovider of price management soft-ware. Blaisdell’s technology careerspans more than 25 years as a hightech company executive, entrepre-neur, professor, and author.

Lowell G. Herman ’74 was elect-ed president of Board of TrusteesBeth Tfiloh Dahan CommunitySchool in Baltimore, MD. Hermanis chair of the Trusts & EstatesGroup of Gordon, Feinblatt,Rothman, Hoffberger & Hollander,LLC.

Teresa Iannaconi ’78, partnerwith KPMG, was a featured speak-er in the Smith School’s Fall 2006Business Ethics Lecture Series.

William B. Jenkins ’70 is seniorvice president and national direc-tor, government and public sectorsolutions, for Trammell CrowCompany.

Preston Romm ’75 is vice presi-dent and chief financial officer ofIomega Corporation.

Anthony Zagami ’73 retired fromthe U.S. Government PrintingOffice after 40 years of dedicatedpublic service. He served as the

GPO’s general counsel since theearly 1990s. Prior to joining theGPO, Zagami spent 25 yearsworking for the U.S. Congress invarious positions ranging fromSenate page to general counsel tothe Joint Committee on Printing,the GPO’s oversight committee.

’80sCharles Baldiswieler ’80 is groupmanaging director for TCWAdvisor Group. Prior to TCW, hewas director of marketing forJenswold, King & Associates inHouston, Texas. Before that heheaded the InvestmentManagement MarketingDepartment at Bank One, Trust.He worked as a financial analystfor Shell Oil, and as a financialconsultant for Rauscher Refsnesand Thomson McKinnonSecurities.

Mark Hoyert ’81 received theHerman Frederic Lieber MemorialAward for exemplary teachingfrom Indiana University, where heis a professor of psychology.Hoyert has received three IndianaUniversity Teaching ExcellenceRecognition awards, three TrusteesTeaching Awards, the NorthwestFounders Day Teaching Award,and is a member of IndianaUniversity’s faculty colloquium onexcellence in teaching.

Lyn Locke, MBA ’82, is director ofsales and marketing for Rocky GapLodge & Golf Resort, a property ofCrestline Hotels & Resorts. Beforejoining Crestline he was the princi-pal of Chesapeake Consulting Ltd.,where he worked with numeroushotels, golf and ski resorts indeveloping and implementingsales and marketing programs.

L. Allison Snow ’85 is vice presi-dent for quality and performanceimprovement at Lumentra. She isresponsible for providing strategicquality improvement consulting toCalifornia’s nursing homes, physi-cian offices, hospitals, and homehealth agencies.

’90sKen Bianchi, MBA ’97, is vice pres-ident and chief financial officer ofACS Transportation Solutions, aprovider of business process andinformation technology outsourc-ing solutions.

Michael D. Brownstein ’97 is thecontroller for the WholesaleLending Division (WLD) ofMortgageIT, Inc. WLD is thelargest division of MortgageIT andis a top 10 wholesale mortgagelender.

Peter Culpepper, MBA ’92, hasbeen appointed as chief financialofficer of ProvectusPharmaceuticals, Inc.

Robert C. Green ’90 is senior vicepresident and chief financial offi-cer, GE Money, Americas. He hasbeen CFO for the Americas sinceMarch 2006. From April 2004 toMarch 2006, Green was the chieffinancial officer for the bio-sciencesunit within GE Healthcare.

Jeffrey Haslem, MBA ’93, is chiefinformation office of Macrovisionin Santa Clara, CA.

Michael Jarmolowich ’92 joinedDeutsche Bank as a client advisorand director in the New Yorkoffice. He was most recently a vicepresident at Credit Suisse PrivateClient Services.

Marielle Jan de Beur, MBA ’98, isa vice president of commercialmortgage bank securities researchat Bear Stearns & Company, Inc.

Raj S. Leyl, MBA ’96, PMP, is chiefoperating officer of RelianceNet,an IT solutions company based inAnnapolis, MD. Leyl, who wasmost recently a senior manage-ment consultant at BAE SystemsInc., will focus on high-level strate-gic issues and hands-on projectmanagement.

Erik Lytikainen ’93 is president ofBaltimore Biodiesel, LLC, which wasrecently given an air permit to con-struct the first biodiesel plant inMaryland, on the Eastern Shore.The plant will produce 4 milliongallons per year of reusable fuel. Itwill open summer 2007.

Gary Leibowitz ’93 was electedBaltimore Assistant Chair of theMaryland Bankruptcy BarAssociation.

Francisco Poblete ’98 is the presi-dent and CEO of Provantec, aprovider of software and program-ming services for the clinical trialsindustry.

Matt Raydo ’97 married SheaWade in November 2006. Raydoplayed basketball for Marylandunder Coach Gary Williams from1993-1997. He currently lives inCary, N.C., and is a principal for ITstaffing firm Valiant Staffing, LLC.

Vladislav Riabiouk, MBA’94, hasbeen appointed executive directorof investment for the Troika DialogGroup in Moscow, Russia.

Rowena Roberts, MBA ’91, wasappointed director of marketingand sales at BioInformatics, LLC,an Arlington, Va.-based marketresearch and consulting firm.

’00sAaron Adams, MBA ’05, is a pub-lic sector strategy consultant in thetechnology strategy group at IBM.His current engagement is at theArmy Human Resource Command(AHRC) in Alexandria, Va. Hisobjective is to design a compre-hensive and strategic frameworkfor Enterprise Service Business(ESB) governance at AHRC, build-ing on leading practices from ITgovernance and service-orientedarchitecture (SOA) governance.

Shane Anderson, MBA ’05, joined Hogan and Hartson LLP asan associate in the Washington,D.C., office.

Klia Bassing, MBA ’04, is founderand director of Visit Yourself atWork, which provides meditationclasses at workplaces.

Brad Bondroff, MBA ’00, is presi-dent of The Asset Brokerage Firm, acompany he co-founded in 2004with Dan Shuman, JD/MBA ’02.

Alumni Notes

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Dominic Crapuchettes, MBA ’04,and Satish Pillalamarri, MBA ’04,founders of North Star Games,have launched a new InteractiveGame Show for corporate events.

Katherine Hayek ’05 married JohnEdward Denning II in October2006. She is employed at ReznickGroup, PC, and owns and runs herown catering business, which isflourishing. “I thank the SmithSchool for the training I needed todo that,” says Hayek.

Chris Jones ’04 is starring in“Janice Dickenson ModelingAgency,” the most popular TVshow which has ever aired on theOxygen cable network. He is one ofonly six of 3,000 initial applicantsto progress to the second season ofthe show.

Sarah Kaplan ’03 was featured inthe magazine PINK with her moth-er, Candi Kaplan. The articlefocused on the mother/daughterteam of Kaplan Financial Group,located in Bethesda, Md.

Zane Kerby, MBA ’04, is the vicepresident of business developmentfor the National Business TravelAssociation (NBTA), the leadingprovider of education, advocacy,

research, and information tocorporate travel professionals.

Laura (Grandy) McGann ’03, apartner with The Clarion Group,was selected as one of HartfordBusiness Journal’s “Top 40 UnderForty.” McGann was chosen by anindependent panel of businessleaders and recognized for her tal-ents and skills making a differencein our business and social commu-nities. As a Clarion partner, sheworks with leaders in the areas ofbusiness strategy, structure andbehavior. She is also serving on theYMCA Camp Woodstock Board ofManagers.

Darren Ngiau, MBA ’02, is seniormanager of Payment Services atE*TRADE FINANCIAL in Arlington,Va.

Jigar Shah, MBA ’01, is founderand CEO of Sun Edison LLC, aBaltimore company that pays for,installs, owns and operates solarinstallations, including installationsin a string of Staples and WholeFoods Market stores.

Kevin Smith, MBA ’03, started aperformance and process improve-ment consulting firm, NextWavePerformance, in Denver, Colo.


27

Alumni Events Photo Gallery

Many more events are coming your way! Get the latest news on upcoming events at

www.rhsmith.umd.edu/alumni/, or call 301-405-5777.

Homecoming TailgateSmith alumni got together before the

Homecoming game for a fun tailgate

party. The weather was perfect, the food

was great and the Terps won the game!

Carly Fiorina BooksigningMore than 300 alumni and friends gath-

ered for a book-signing event at which

Carly Fiorina, MBA’80, spoke about lead-

ership and her career on November 13,

2006. It was the Smith School’s largest

alumni networking event to date.

MBA Case CompetitionTwenty-three Smith alumni are gath-

ered in Van Munching Hall. Is it a

reunion? No, it’s the 2006 MBA Case

Competition. Alumni judges are a key

part of the case competition, providing

current MBA students with feedback on

everything from the professionalism of

their presentation to the feasibility of

their proposed business plans.

Richard Schaeffer ’74 DeliversCommencement Keynote Address

An enthusiastic crowd gathered in Comcast Center onDecember 21, 2006, to cheer on a brand-new crop of proudSmith School alumni. Richard Schaeffer ’74, chairman ofNYMEX Holdings, Inc., and the New York MercantileExchange, joined in the congratulations and urged his fellowbusiness school alumni to persevere in the pursuits of their post-graduation goals.

“Like most accounting majors I knew, it was practically pre-ordained that I become an accountant,” Schaeffer told students,recalling when he graduated from the University of Maryland’sbusiness school. But it wasn’t a career that suited him, andSchaeffer spent the next 11 years moving on to a number of dif-ferent jobs, looking for the one that would click. He was 31before his first taste of the commodities market.At that moment,said Schaeffer, he knew he had found the arena in which hewanted to work for the rest of his life.

Schaeffer went on to phenomenal success in his late-chosenfield. He has served on the NYMEX Board for the past 16 years,and last fall he led its $383.5 million Initial Public Offering—themost successful IPO in the history of the New York StockExchange.Today NYMEX is the world’s largest physical com-modity futures exchange and the preeminent trading forum forenergy and precious metals.

“So if you don’t move right into your dream job, don’t despair.Learn from it, and keep moving forward,” counseled Schaeffer.

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NEW $30K SCHOLARSHIPPROGRAM FOR UNDERGRADUATESIN SUPPLY CHAIN MANAGEMENTPROGRAM

The Intermodal Association of NorthAmerica (IANA) has a created ascholarship program to encouragefreight transportation-related man-agement development and hasselected the University of Maryland’sRobert H. Smith School of Businessas a recipient of the first year’saward.

The 2007 scholarship programwill be made possible by a $30,000gift from IANA to the Smith School.The scholarships will benefit under-graduate students in the SmithSchool’s Logistics, Transportationand Supply Chain Management(LTSCM) Fellows Program, which isset to launch in fall 2007 andincludes exposure to the intermodalindustry through field trips, partici-pation in trade shows, presenta-tions, speakers and internships.

The announcement marks thestart of an effort by IANA to helpincrease understanding of inter-modal transportation and its keyrole in strengthening the globaleconomy via initiatives that supportmanagement development withinthe industry. The Smith School wasselected as a recipient because itstop-ranked logistics and supplychain management program has astrong focus on intermodalism.Michael Wilson, chairman of IANA,presented the gift to ElizabethMitchell, director of development atthe University of Maryland’s RobertH. Smith School, during the Inter-modal Expo in Fort Lauderdale, Fla.

“This program is an importantstep to assure that talented studentswho are enrolled in transportation-related programs receive substantialassistance in reaching their educa-tional goals,” Wilson said. “Theannouncement of this programbegins a long-term effort to supportexcellent, market-oriented academicprograms.”

Connections

LTSCM Alumni DaySaturday, April 7, 2007

Alumni Association Awards GalaSaturday, April 14, 2007

Riggs Alumni Center

The alumni association will celebrate its

shining stars at the Annual Awards Gala at

the Samuel Riggs IV Alumni Center. This

event recognizes alumni association award

recipients and college/school distinguished

alumni, including the Smith School’s Bill

Longbrake, PhD ’76.

Alumni Mentor Program & Awards PicnicSaturday, April 21, 2007

Van Munching Hall

Netcentricity ConferenceFriday, April 27, 2007

Van Munching Hall

Joseph M. Wikler Finance CaseCompetitionFriday, April 27, 2007

Van Munching Hall

Cheer on the undergraduate students as

they showcase their abilities while simulat-

ing roles in the financial management pro-

fession.

Maryland DaySaturday, April 28, 2007

Van Munching Hall & McKeldin Mall

Join your fellow Terps for a day of fun and

celebration. Be sure to stop by our booth

on McKeldin Mall for some great Smith

stuff!

Smith Undergraduate AwardsBanquetThursday, May 3, 2007

UMUC Marriott

Cupid’s Cup Business CompetitionSee description below.

Smith School CommencementMonday, May 21, 2007

1:00 p.m.

Comcast Center

Please check our Web site,

www.rhsmith.umd.edu/alumni, for more infor-

mation about the Baltimore Networking Event,

New York Networking Event and MBA Alumni

Executive Speaker Reception and Dinner.

Up

com

ing

Eve

nts

Cupid’s Cup Business CompetitionFriday, May 4, 2007

10:00 a.m. to 1:00 p.m.

Van Munching Hall

Cupid’s Cup is an annual business competition showcasing young entrepreneurs from

the University of Maryland. University alumni graduating between May 2004 and

December 2006 are also eligible for the competition. Winners of the competition

receive $10,000 to put toward their business. Do you have the next big idea? For

more information contact Andrea Galati at [email protected] or 301-405-9511,

or visit www.rhsmith.umd.edu/dingman.

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29

In late August it officially began: construc-

tion on Van Munching Hall’s eagerly antici-

pated $21 million, 38,000-square-foot North

Wing. Windows and doors on the north side

of the building were boarded up to keep out

the dust as giant earthmovers began scrap-

ing up pavement and excavating the massive

hole that will eventually become the North

Wing’s basement.

The three floors above the basement will

contain new offices for professors and PhD

candidates, state-of-the-art classrooms, and

student gathering places. Meeting rooms will

provide a more effective space for students to

work on Smith’s highly team-based curricu-

lum, where joint projects are the norm for

most classes.

The State of Maryland is providing partial

funding for the North Wing, and Smith

School alumni and friends play a key role in

providing the remainder of the funds needed.

Commitments to the North Wing have been

made, but everyone can make a difference.

Use the enclosed envelope to make your gift

today. Please make your gift payable to

University of Maryland Foundation, designat-

ed for Van Munching Hall North Wing con-

struction.

If you are interested in naming a room or

space in support of the North Wing building

project, please contact Kelly Brown, campaign

director, [email protected],

301.405.1786, or Elizabeth Mitchell, director

of development, [email protected],

301.405.8141.

CONSTRUCTION UNDERWAY ONVAN MUNCHING HALL’S NEWNORTH WING

Savvy business people know that investing inthe right place at the right time can reap bigrewards for those who know where tospend. Smith alumni and friends know that ascholarship given at a crucial time in a kid’slife can make it possible for a bright youngperson struggling with a financial need tofinish his or her education, meet his or herpotential and pursue his or her dreams.

A scholarship is not just a donation toyour alma mater, but an investment in thelives of the next generation of leaders. EverySmith student enters the school with topgrades, a killer SAT score and a wealth ofambition. It would be a shame for any ofthese exceptional young people to be keptfrom their education because of a financialneed.The Smith School’s Scholarship Fundsmake the critical difference in the lives ofmany a young person.

This is especially true of those studentswho come to Smith as juniors. Most tradi-tional, university-wide scholarships are givento freshmen.This means that many of ourstudents who transfer in as juniors and havea financial need really depend on the SmithSchool’s scholarship funds to make endsmeet. Scholarships make it possible for themto focus on making the most of their educa-tion, rather than figuring out where toscrape together the money for tuition.

The Smith School gave 180 scholarshipslast year.And for the first time ever, everyundergraduate student who applied with a

financial need received a scholarship. Everyone. One hundred percent! That’s a statisticof which we can all be proud. But while wewere able to give each undergraduate finan-cial help, we were not able to completelymeet every student’s financial need, as thelevel of financial need far outstrips our avail-able scholarship funding.

Our need for MBA scholarships is alsoacute. Because there are so few MBA schol-arships available, Dean Frank annually takes$200,000 from the school’s operating budgetto alleviate the financial need of Smith MBAstudents, but this drains needed funding fromother school programs.Additional MBAscholarships would benefit both the individ-ual students and the Smith School commu-nity.

If you are interested in establishing a cur-rent use or endowed scholarship, please con-tact Elizabeth Mitchell, director of develop-ment, [email protected], 301-405-8141, or Caroleigh Haw, assistant director ordevelopment, [email protected], 301-405-9457.

Your gift to the Smith School ScholarshipFund represents an investment in some ofthe brightest and most talented young peo-ple at the University of Maryland — youngpeople who will become the business leadersof the future. Please use the enclosed enve-lope to make a tax-deductible gift to theSmith School Scholarship Fund today.

Give a Scholarship. Give a Future.

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31

$5,000 - $9,999William N. ’69, MBA ’76 and Frances

ApollonyKimberly A. Boulmetis ’92, JD ’95Richard C. ’77 and Alison BrusteinDavid ’67 and Janet BuchananPhil Bundy, III ’89, MBA ’91Joanne Foltz Casey ’74, MBA ’79Louis T. and Ann K. DonatelliKevin Patrick Donoghue ’84 and Bryson

Patton DonoghueScott W. Frew ’77Stephen R. Halpin, Jr. ’77John T. ’67 and Merrily St. John HardistyThomas J. Healy MBA ’79 Zev Evan Kaplan ’74John Joseph ’75 and Frances M. KeenanChristopher E. Kubasik ’83 Charles D. Levine ’76Philip B. Livingston ’79 William P. ’76, MBA ’88 and Colleen A.

LoomisArthur S. ’63 and Judy MehlmanStephen H. Physioc ’35David J. ’78 and Carole Piper ’79Robert S. Roath ’66

$2,500 - $4,999Ronald Gene ’69, MBA ’74 and

Rosemary T. Blunck ’76Waldo H. ’49 and Jean C. Burnside ’50B. Gary ’64 and Marilyn S. DandoRobert L. DePiro ’57Richard B. Edelman ’68, MBA ’70,

DBA ’75Allan M. Edelson ’81 and Denise M.

MurrayAlan R. ’76 and Mary E. Einhorn ’76A. Thomas, Jr. ’76 and Robin B. FinnellThomas Paul ’76 and Ellen F. GaskeJohn L. Gates, Jr. ’73, MBA ’83Chris HackettJacqueline J. Heisse ’87Diane P. ’77 and Aubrey H. Herndon, Jr.Sydney J. Hutchinson ’81, MBA ’83Rudolph P. ’60, Ph.D ’66 and Linda H.

LamoneTom Liu ’83 and Noriko Ellen OkamotoRichard L. Novak ’62 Daniel F. ’91 and Dana J. Rice ’90Howard L. ’78, MBA ’96 and Elizabeth

RuddellJohn and Barbara ScagnelliMitchell G. Segal, C.P.A.George A., Jr. ’54 and Flora N. Suter

$1,000 - $2,499Arjang A. Assad Ph.D ’78 H. Kent Baker MBA ’69, DBA ’72,

MED ’74Fred W. ’77 and Sherry BargarRobert Albert ’70 and Marjorie K. Deck

BedingfieldCindy Beller ’79 and David Rudbart

Howard S. ’74 and Sandra S. Bernheim ’77

Alan W. Bieler ’84Timothy J. Blanchfield ’98Richard W. Bowe, P.C.Thomas A. ’80 and Michelle R.

Bradley ’79Melford George Brown, Jr., BS ’88 &

MBA ’93Espey T. Browning, Jr. ’74 Anthony T. Calderazzi ’92Eugene H. ’72, JD ’76, LLM ’80 and

Erica CantorCharles G. Carr ’85John E. Chickering MBA ’85Stewart K. ’90, MS ’91, MBA ’02 and

Carolyn ChoS. Mark Christmas ’74Jeffrey M. Cohen ’75Robert F. Costello, III ’67Robert E. Creager ’71William J. DeWitt, III William B. Dudley Jr. ’69Jayne W. Edge MBA ’76Jack A. ’78 and Jo Anne FaerJoanne Ferchland-Parella MBA ’06Charles M. ’78 and Karen FisherTerry ’75 and Carol FitzpatrickDaniel R. Flannery ’85John E. Foster ’66Stephen R. and Lisa FredLawrence A. FriendRobert L. Gable ’52Thomas C. GaspardRobert F. ’73, MBA ’75 and Anita L.

GlickertRita GolubLawrence A. Gordon Patricia A. and Arnold GrubelDennis M. ’68 & MBA ’72 and Carolyn

S. Gurtz ’70Jeffery W. Hale MBA ’78Richard L. Harris JD ’94, MBA ’98Charles O. and Susan E. HellerLeRoy J. Herbert, Jr. ’50Bruce S. Hoffberger ’71Edward B. ’93, MBA ’02 and Jessica

HopperThomas P. Horton MBA ’78Edward J. Jr. ’73 and Gayle L. KallasAnthony Lam ’95Mark K. ’87, JD ’90 and Donna K.

Lewis ’86Martin P. LoebDargeelyn F. ’80, MBA ’90William A. Longbrake ’65, MBA ’69,

DBA ’76 Donald R. ’68 and Margaret G. LyonsKenneth T. Marceron ’79Robert J. Murchake ’50Jay C. Nadel ’80Norman L. ’71 and Sharon G.

OremlandRobert J. Piwowarczyk MBA ’88

Jay E. Ricks ’56, JD ’73Dennis L. Roberts, IIEdward W. ’89, MBA ’93 and Pamela J.

RoseMarilyn H. Rose ’58Suzanne E. Rose ’88Robert G. and Melanie R. Sabelhaus ’70Charles ’48, JD ’52 and Mary Katherine

Scheeler JD ’53Robert M. Sheehan, Jr., Ph.D. and Julie

M. ScofieldPhilip N. Smith, Jr. ’64, JD ’67Steven O. Smith ’68J. Richard and Deborah N. StammChristine StewartRobert S. HS ’65, BS ’69 and Patricia K.

StricklandDavid M. ’79, MBA ’82 and David M.

SweetOliver S. Jr. ’49 and Mary Jean TraversRobert J. Walters ’74Samuel Wasserman ’58, JD ’67James E. White MBA ’05Thomas E. ’62 and Beverly Z.

Willich ’62

$500 - $999Sylvia W. Bellefleur’81Michelle M. Biess ’78 and William A.

TrapmannMichael D. MBA ’72 and Kathleen

BulgerCarolyn L. and Stewart K. ChoNancy H. Clarvit ’78Rose Horan Cohen MBA ’03Timothy D. Druzgala ’87John A. Elliott ’67, MBA ’72 & Ph.D ’82 David J. English ’66, MBA ’67 &

DBA ’75Barbara A. Esau ’78Matthew L. Fink ’97Stephen B. Groh ’71Cecil V. Hornbaker, II ’62Margaret L. and John B. Kincaid ’65William Henry Lehr MBA ’97Marcia J. Leitch ’84John J. Meiburger ’85 & MBA ’96John V. Miraglia ’96Kenneth R. ’80 & JD ’90 and Betsy F.

MorrowMorton H. ’49 and Shirley K. OffitR. Russ O’Haver ’80 Todd E. ’90 & MBA ’92 and Courtney

MooreLt. General Emmett Paige, Jr., USA, Ret.

’72 & MPA ’74Susan Ph.D. ’75, MA ’77 & Ph.D ’84

and Douglas S. PearsonMatthew H. Plishker MBA ’01Elliot Rabinovich MS ’97 & Ph.D ’01John N. Ryan Jr. ’87 & MBA ’98Ralph T. and Joan SavareseAlan N. ’77 and Cynthia SiegfriedStephanie B. ’83 and Scott M. Sosnik

Gilvan SouzaJames T. Spalding ’67Edward J. ’73 and Marlene W. StoltzGary H. ’77 and Susan E. Nadel TabachSusan C. Toder MBA ’83Neeraj Udeshi ’98 & MBA ’03Stephen E. Wells ’71Nicholas ’76 and Janet S. YakubikYifang ’00 and Xiaodong Yao

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32

Last Word

This issue of Smith Business reminds us onceagain of the extraordinary generosity of ouralumni and friends.The honor roll in the pre-ceding pages highlights many of the donorswhose gifts have enabled the Smith School tomake great strides in its march toward greatness.I see the products of these gifts in a variety ofways, from the construction of Van MunchingHall’s new North Wing to photographs of stu-dents traveling the world as part of the newSmith Undergraduate Fellows Program.

Your donations—far too many to list here—are indeed making a real impact on people’slives. Just ask Josefina Peña. Last spring, Josefinasuffered serious injuries, including two brokenlegs, when she was struck by a car in a hit-and-run accident. She was hospitalized for a monthand forced to withdraw from school while shestruggled physically, emotionally and financially.Faced with high medical bills and initial rejec-tion for financial assistance, Josefina worried shewould not complete her education. But last fall,we were able to award Josefina the JamesEdward Miller Chapman EducationalFoundation Scholarship and happily she is backwith us, working hard toward her degree.

In the last honor roll we highlighted a $2 million gift from Chevy Chase Bank.Thegift was earmarked for scholarships and intern-ships and today it is helping students such asJinsoo Lee pursue their dreams.Although hismother works six days a week to supportJinsoo and his brother, money is tight. Butthanks to a Chevy Chase Scholarship, Jinsoowas able to enter the Smith School last fall to

earn an accounting degree. He’s motivated notonly by his desire to become an auditor for oneof the big four accounting firms, but also bythe desire to make a better life for his mother.Then there is Ana Gonzalez, an immigrantfrom El Salvador, whose father never made itpast the second grade and whose mother neverattended school.With nine children, the familystruggled financially and higher education forAna seemed out of reach. But hard work, goodgrades and a Chevy Chase Scholarship led Anato Smith, where she’s majoring in accountingwith the hope of one day opening her ownbusiness. Not only has this scholarship helpedAna financially, she tells us it has also given herthe strength and confidence to be all that shecan be.

Your gifts help the best and brightest students—Josefina, Jinsoo,Ana, and many oth-ers—obtain the financial aid they need to reachfor the stars.And your gifts enable the SmithSchool to provide these students with the verybest business education by funding the recruit-ment and retention of world-class faculty, inno-vative academic programming, and an advancedlearning environment. I thank our students forsharing their stories and thank you for helpingus make a difference in their lives.

How Giving Changes Lives

HOWARD FRANK, DEAN

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DatatelDLA PiperFaer Family FoundationFederal Home Loan Mortgage Corp.Foster Soltoff & Love LimitedFosterThomas, Inc.GlaxoSmithKlineHSBCNorgate Technology Inc.Sabelhaus Family Foundation, Inc.Snyder, Cohn, Collyer, Hamilton &

Assoc.Spacevest Management Group, Inc.Sterling Partners, LLCStout, Causey & Horning, P.A.T. Rowe Price Charitable Giving ProgramThe Pfizer Foundation, Inc.TRF FoundationUnited Way of the National Capital AreaWashington Mutual FoundationWells Fargo Matching Gift Program

$500 - $999BB&T CorporationBlack & Decker CorporationFannie Mae FoundationFastech Inc.First Annapolis ConsultingLayline Risk Management PartnersLegal & General AmericaMARACMorrow Family FundRichard J. Princinsky and Assc.RSM McGladrey, Inc.Santos Postal & Company PCThe Inn and Conference CenterTyco TelecomunicationsVintage Settlement Services, LLC

INDIVIDUALS$1 Million and aboveRobert L. ’39 and Gertrude EdwardsRobert H. Smith ’50

$100,000 - $999,999James R. and Linda BeersEric F. ’77 and Marianne BillingsEdward M. Downey ’52Carleton S. MBA ’80 and Frank FiorinaHoward and Jane FrankWilliam E. Mayer ’66, MBA ’67 Paul H. Mullan ’68, MBA ’70Marilyn C. PownallGerald ’53 & Deanna StemplerLeo Van Munching, Jr. ’50

$25,000 - $99,999Steven M. Bergida ’86 Francis Anthony ’68 and Betty ContinoMichael D. Dingman ’55, HD ’89Ali Hirsa MS ’93, MA ’97, Ph.D ’98Allen J. ’54, HD ’94 and Frances A.KroweRobert Thomas Kern, Jr. ’75Raymond A. ’59 and Rand MasonRichard E. and Nancy P. MarriottKeith S. McKenzie ’72, MS ’73William A. Millichap ’65Richard M. Schaeffer ’74Teresa S. and Frank Savarese C.F.A., C.P.A.Harvey L. ’72 and Ellen SandersJoseph and Madeleine WiklerGary B. Williams ’68A. Gordon Wooton, Jr. ’54

$10,000 - $24,999Robert A. Bedingfield ’70John M. Boyle ’76Robert E. ’77, MBA ’82 and Joan M.

ButmanDavid A. ’73 and Mary CovingtonWilliam E. Cole, Jr. ’71Kevin C. Fallon ’93James A., Jr. ’62 and Wealtha FlickRobert S. Franco ’74Dave Goldfarb ’79Teresa E. ’65, MBA ’78 and Perry F.

IannaconiRobert David Kashan ’76Albert M. ’81 and Kristen D. KrallHugh A. Mallon, III ’70Milton T. ’68 and Rebecca M. MatthewsJoseph G., Jr. ’58, MBA ’66, DBA ’79 and

Olivia C. MattinglyJohn A., Jr. MBA ’79 and Anne D. MooreChalres Eric OlsonJames A. Poulos ’70Edward J. Quinn, Jr.Warren K. ’49 and Mary M. ReedJeff M. Seal, III ’76James S. ’73 and Janie Tighe

SMITH BUSINESS O SPRING 2007SMITH BUSINESS O SPRING 2007SMITH BUSINESS O SPRING 2007

30

Connections

2005-2006 Honor RollThe Robert H. Smith School of Business grate-

fully recognizes the important part our donors

play in supporting ground-breaking research,

innovative teaching and life-changing scholar-

ships.

This report especially recognizes members of

the Dean’s Clocktower Club and other leader-

ship donors, both individuals and organizations,

whose philanthropy plays a critical role in sus-

taining and driving the Smith School’s march to

greatness. We could not do this without your

support, for which we thank you.

These pages contain a partial list of organiza-

tions and individuals who have given to the

Smith School over the past year. Due to space

considerations, the magazine will list only

donors of $500 or more, but we are grateful to

all who support us. For a complete list of all

donors in 2005-2006, visit

www.rhsmith.umd.edu/alumni.

Although we take great care in compiling

the list of our donor names, there is always the

possibility of error. Names were included for

those who made gifts during our fiscal year

2005-2006, between July 1, 2005 and June 30,

2006. If we have inadvertently omitted your

name or if your name is incorrect in the records,

we apologize and encourage you to contact the

Office of External Relations, 301.405.9463, so

we can correct our records and acknowledge

you properly in the future. Some donors have

requested anonymity

ORGANIZATIONS$100,000 and aboveBeers & CutlerChevy Chase BankCarly and Frank Fiorina Family FundOracle CorporationReuters America, Inc.SAPSprint Nextel Corporation/Sprint

FoundationThe Stempler Family Foundation

$25,000 - $99,000Deloitte & Touche LLP/Deloitte

FoundationErnst & Young/Ernst & Young

FoundationFidelity Charitable Gift FundHewlett Packard CompanyKPMG FoundationLegg Mason Charitable FoundationRichard E. & Nancy P. Marriott Fund Inc.Sanders Family Charitable FoundationSun Microsystems, Inc.Joseph and Madeline Wikler Fund

$10,000 - $24,999Air Products & Chemicals, Inc.Bank of America FoundationCitigroup/Citigroup FoundationHoneywell International/Honeywell

Hometown SolutionsLockheed Martin CorporationM&T Bank/M&T Charitable FoundationNational Defense Transportation AssnNew York Mercantile ExchangePricewaterhouseCoopers LLPTW Perry

$5,000 - $9,999Accenture Foundation, Inc.ACG National CapitalCharles Levine, Ltd.Chevron Matching Gift ProgramDaimlerChrysler Corporation FundThe Hershey CompanyInternational Business Machines, Inc.Kaplan Family TrustMorgan Franklin CorporationMarriott International Inc.Matthews Family FoundationPPG Industries, Inc.Reznick Group

$2,500 - $4,999Brustein EntertainmentDIRECTVGEICO Corporation/Geico Philanthropic

FoundationGallup Organization Inc.James Edward Miller Chapman

Education FoundationJack B. Sacks Foundation Inc.May Department Stores Company

FoundationMcCormick & Company, Inc.Morgan StanleyNational Assn of Securities Dealers, IncSylvan/Laureate FoundationToyota Motor Sales U.S.A., Inc.

$1,000 - $2,499Aarsand ManagementAutomatic Data Processing IncBaltimore Community FoundationBDO SeidmanCarton Donofrio Partners, Inc.Charles Martin Fisher Fund

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78392_cvr_out 2/1/07 10:21 AM Page II

Live in your house to help the Robert H. SmithSchool of Business: the Retained Life Estate

The low Federal Discount Rate coupled with the continued strongvaluation of residential properties creates an unusually advanta-geous opportunity for those who might consider donating theirresidence or vacation home to the Robert H. Smith School whileretaining the right to use the property for life.

• Creates a permanent legacy for future Smith School studentsand faculty

• Generates an immediate and generous income tax deduction• Removes the property from an individual’s estate• Avoids any capital gains tax due on appreciation• Additional financial benefits if the property is vacated during life

For information or a customized example of how your property can help students whilehelping yourself, please contact John McKee at [email protected], 301-405-0320, orElizabeth Mitchell, director of development, [email protected], 301-405-8141.

Weeding the Gardento Help Students?

78392_cvr_out 2/1/07 10:21 AM Page III

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Nonprofit Org.U.S. Postage

PAIDPermit No. 311

Dulles,VA

3570 Van Munching HallUniversity of MarylandCollege Park, MD 20742-1815

ADDRESS SERVICE REQUESTED

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