The Darden Report Spring Summer 2012

T H E

University of Virginia Darden School of Business

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

T H E

D A R D E N

SPRING / SUMMER 2012

R E P O R T

SPR I N G / SU MME R 2012

SPECIAL ISSUE

DARDEN 2012:

MEET THE GRADUATES Inside this issue: A Snapshot of Social Media, Leading in a Flat and Lumpy World, How to Save Time in Your Day

WE’RE ON A MISSION: TO IMPROVE SOCIETY

BY DEVELOPING PRINCIPLED LEADERS THROUGH OUR EXPANDED PORTFOLIO OF PROGRAMS.

THE DARDEN MBA, THREE WAYS MBA

MBA FOR EXECUTIVES

GLOBAL MBA FOR EXECUTIVES

Full-time MBA program based in Charlottesville, Virginia, with several elective and exchange program opportunities abroad

Combination of monthly three-day residencies in Charlottesville; four, one-week leadership residencies, one of which is international; and distance learning

Combination of six two-week residencies in Brazil, China, India, Europe and the United States and distance learning

ENROLLMENT

ENROLLMENT

ENROLLMENT

CURRICULUM Case-based general management curriculum with over one year of elective course options

CURRICULUM Case-based general management curriculum with an emphasis on leadership development

CURRICULUM Case-based general management curriculum with an emphasis on global business

PROGRAM STARTS August of each year

PROGRAM STARTS August of each year

PROGRAM STARTS August of each year

PROGRAM LENGTH 21 months

PROGRAM LENGTH 21 months

PROGRAM LENGTH 21 months

AVERAGE AGE

AVERAGE AGE

AVERAGE AGE

AVERAGE WORK EXPERIENCE 4 years

AVERAGE WORK EXPERIENCE 12 years

AVERAGE WORK EXPERIENCE 12 years

STUDENTS WORK FULL TIME? Summer internship only

STUDENTS WORK FULL TIME? Yes

STUDENTS WORK FULL TIME? Yes

darden.virginia.edu/mba

darden.virginia.edu/emba

darden.virginia.edu/gemba

325 60 27

35

30 35

All three formats confer the Master of Business Administration degree from the University of Virginia.

EXECUTIVE DEVELOPMENT AND A DOCTORAL PROGRAM EXECUTIVE EDUCATION

THE EXECUTIVE PROGRAM (TEP)

MANAGEMENT DEVELOPMENT PROGRAM

PHD

Open-enrollment programs, custom programs, certificate programs and corporate university design and delivery

A four-week residency program for top executives who have attained, or are about to attain, significant general management roles

A two-week residency program for high-potential middle management executives

Two years of full-time coursework followed by two years of research and writing

ENROLLMENT*

23

ENROLLMENT*

CURRICULUM An integrated study of strategy, innovation, leadership, change, growth, decision making, the global economy, processes, networks and executive wellness.

By application only; those accepted are positioned for enterprise leadership.

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ENROLLMENT

CURRICULUM The diverse open-enrollment program offerings address topics such as leadership, marketing and sales, financial excellence and stategic growth, among others. Custom programs and corporate university programs are tailored to the needs of each organization.

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ENROLLMENT*

CURRICULUM An immersive study of all aspects of management — accounting, finance, technology, operations, competition, strategy, marketing, international business and organizational change. The wellness program is also an option.

CURRICULUM Demanding doctoral program in management for a small, select group of high-potential applicants who have a strong interest in academic research.

Specializations include ethics, leadership and organizational behavior, entrepreneurship and strategy.

PROGRAM STARTS Ongoing throughout the year

PROGRAM STARTS June of each year

PROGRAM STARTS Offered twice annually, in the spring and fall

PROGRAM STARTS Next cohort: Fall 2013

PROGRAM LENGTH Varies according to program

PROGRAM LENGTH Four weeks

PROGRAM LENGTH Two weeks

PROGRAM LENGTH Four years

CERTIFICATE PROGRAMS INCLUDE Certificate in Management, Certificate in Leadership and Distinguished Certificate in General Management

AVERAGE WORK EXPERIENCE 20–25 years and 12 or more as senior manager or company officer

AVERAGE WORK EXPERIENCE 5–7 years as a middle or functional manager

AVERAGE WORK EXPERIENCE 10 years

PARTICIPANTS WORK FULL TIME? Yes

PARTICIPANTS WORK FULL TIME? Yes

PARTICIPANTS WORK FULL TIME? Yes

CANDIDATES WORK FULL TIME? No

darden.virginia.edu/exed

darden.virginia.edu/exed/TEP

darden.virginia.edu/exed/MDP

darden.virginia.edu/web/PhD

*Five-year average per program

13

READY.

University of Virginia Darden School of Business

T he D arden R eport

spring /summer 2012

Contents 20

24

28

175m Tweets a day

Ready for the Future: Darden’s Class of 2012

The New World of Communication

In Their Own Words

by Juliet Daum and Valerie Harness Social media matters, and executives are using hard-hitting channels like Facebook, Twitter, YouTube and LinkedIn to reach and build relationships with customers, to enhance their professional image and to broaden their network.

Meet 12 recent graduates of Darden’s MBA and MBA for Executives programs. The talented up-andcomers hail from far-flung locales, represent an array of industries, student clubs and academic areas, and describe their hopes and dreams for the future.

3

From the Editor

4

News Briefs

Leading in a Flat and Lumpy World

by Professor S. Venkataraman and Gerry Yemen Globalization has, in some ways, leveled the world into a single marketplace, yet what works in one market may not always work in another. This article describes a flat, lumpy world and the skills needed to navigate through it.

12

Faculty Spotlight: Luann Lynch “More Than Number Crunching”

14

Did You Know?

16

Sound Bites

17

What to Read Now

18 Case in Point: A Washington Post/Darden series “How Process Improvement Principles Can Save Time in Your Day”

by Elliott N. Weiss and Rebecca Goldberg E. Follin Smith (MBA ’85) Receives the 2012 Charles C. Abbott Award

35

34

Reunion 2012

36

Alumni Profiles Donald Wilkinson (MBA ’66) Elie Maalouf (MBA ’89) Thomas J. Baltimore Jr. (MBA ’91)

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Alumni Leadership

40

20 Questions: Martina Hund-Mejean (MBA ’88)

You take charge of P&Ls, sales teams and new products.

your career?

Do you take charge of

DARDEN’S A RMSTRONG C ENTER FOR

ALUMNI CAREER SERVICES We can help you learn how to: ■ ■ ■

Grow and Nurture Your Network Leverage Social Media to Boost Your Career Engage Executive Recruiters

■ ■ ■

Launch a Job Search Negotiate Your Salary Land Your Next Promotion

Skype us. Call us. Take advantage of our resume and LinkedIn profile reviews, vast online resources and job posting board. We offer Darden graduates career advice, at no charge. It’s one of the Darden alumni services that we provide you for life.

To make an appointment: AlumniCareerServices@darden.virginia.edu or call +1-434-924-4876

www.darden.virginia.edu/acs

Darden seeks an additional $4.5 million to fully endow the Armstrong Center for Alumni Career Services. In honor of Beverley W. Booty Armstrong (U.Va. ’64, MBA ’66), an anonymous donor has offered a one-to-one match for all gifts to the center for up to $2 million.

Contact the Office of Advancement, advancement@darden.virginia.edu or +1-800-327-3363.

Letter From the Editor

Leaders for Our Flat, Lumpy and Digital World Dean, Charles C. Abbott Professor of Business Administration and Distinguished Professor of Business Administration Robert F. Bruner President, Darden School Foundation and Senior Associate Dean for External Relations Trip Davis (MBA ’94) Chairman, Darden School Foundation Board of Trustees Peter D. Kiernan (MBA ’79) Vice President, Alumni Relations Michael J. Woodfolk (TEP ’05) The Darden Report Editor and Senior Director of Communication Juliet Daum Graphic Design Susan Wormington Ross Bradley Copy Editors Seamane Flanagan Catherine Burton Cover Photo Jack Looney Photography Michael Bailey, Tom Cogill, Stacey Evans, Cole Geddy, Jane Haley, Peggy Harrison, Jack Looney, Tim Pelling, Kirsten Rose, Andrew Shurtleff and Susan Wormington Printing Progress Printing, Lynchburg, VA Volume 39, No. 1: Spring/Summer 2012 Send correspondence to: The Darden Report Office of Communication & Marketing P. O. Box 7225 Charlottesville, VA 22906-7225 U.S.A. communication@darden.virginia.edu

Before they even step out of bed, 28 percent of 18 to 34-year-olds check Facebook.

Every day, Twitter broadcasts 175 million global Tweets.

The social media statistics presented on pages 24–26 confirm that we live in an audacious, highly connected new world.

Globalization — which has been around since ancient civilizations first set off to explore the earth — continues to merge our cultural, ecological, governmental, high-tech and social spheres.

Yet, the new terrain is both “flat and lumpy,” explain Darden Professor Sankaran Venkataraman, better known as “Venkat,” and senior researcher Gerry Yemen in the feature on pages 28–32. While some areas of business lend themselves to operating in a “flat” world, in which goods and services can be produced anywhere, others require consideration of local tastes and differences.

Leading in this environment takes special skills and fresh ideas. Executives must keep an eye on industry creep and emerging economies. They must, as Professor Elliott Weiss and Rebecca Goldberg explain in their recent “Case in Point” for The Washington Post, be able to manage their energy, balance their personal and work life, and preserve “white space,” or free time (see page 18). The article explains how to apply process improvement principles for a happier, holistic existence.

Setting sail into this complex, new world are leaders from Darden’s Class of 2012. Meet them on pages 20–23. They are an amazing bunch. Let us know what leadership challenges you are encountering in your part of the world.

Juliet Daum Editor and Senior Director of Communication DaumJ@darden.virginia.edu

Stay Connected

The Darden Report is published with private donations to the University of Virginia Darden School Foundation.

youtube.com/user/DardenMBA

© 2012 Darden School Foundation

facebook.com/DardenMBA

Advertising inquiries: Carter Hoerr, Executive Director of Advancement HoerrC@darden.virginia.edu Phone: +1-434-243-5871

twitter.com/DardenMBA linkedin.com/groups?gid=35744 &trk=myg_ugrp_ovr

Darden alumni portal Log on to http://alumportal.darden.virginia.edu to update your contact information, reconnect with Darden graduates and learn about new job and educational opportunities.

Podcasts

The Darden BusinessCast The 10-minute podcast, hosted by Abena ForemanTrice and broadcast each Friday afternoon, features news from Darden and in-depth interviews with the School’s faculty, staff, students, alumni and distinguished visitors. Download the podcast from Darden’s website (http://media.darden.virginia. edu/podcasts), Podcast Alley or iTunes.

darden.virginia.edu • SPRING/SUMMER 2012 3

News Briefs

darden.virginia.edu

Spring Accolades Faculty Friend of the Student Award Professor Mary Margaret Frank Outstanding Faculty Award Professor Yiorgos Allayannis Graduation Faculty Marshalls Professors Yiorgos Allayannis and Mary Margaret Frank Graduation Honorary Faculty Marshalls Professors Ed Davis and Marian Moore Wachovia Awards for Excellence in Case Development Excellence in Teaching Materials — Innovative Case Professor Susan Chaplinsky High-Impact Case Professor Elliott Weiss Distinguished Case Writer Professor Jim Clawson Students Theo Herbert International Award Lilia Fusa (Class of 2012) Frank Genovese Fellowship Peter Sauerwein and Scott Caras (both Class of 2013) 2012 Graduation Speakers MBA: Patrick Clifton EMBA: Peter Vanderloo

Bruner Named Dean of the Year

R

obert F. Bruner is Poets & Quants’ first Dean of the Year, an accolade echoed by CNNMoney and Fortune. His qualifications for the honor are legion.

Bruner has transformed the school, shaking the institution out of a malaise that had threatened its stature as one of the world’s finest business schools. Bruner rebuilt the school’s applicant pool so that there are now eight applicants for each available seat.

During his seven years as dean, Bruner brought in top faculty members to sustain Darden’s ethos — teaching excellence — and to accelerate through research the quest for new knowledge. And in the worst economy in memory, he has raised $100

4 The Darden Report • SPRING/SUMMER 2012

million toward a $150 million after wrestling with some fundraising goal. kind of problem,” he says.

He has pushed Darden into “I don’t think you can be a a leadership role in responding great teacher if that doesn’t to globalization — probably excite you. You may be an the most pressing issue facing adequate teacher. But you business schools today. have to be drawn by that zest His oval tortoise shell for discovery because all great glasses, dark conservative work of any kind starts from suits and formal manner belie the heart.” his nonconforming character and leadership style. He is a futurist. Among business school deans, he is one of the leading social media mavens, a prolific and astute blogger and tweeter.

He is known as one of the best finance case study teachers in the world, animated by his students’ love of learning.

“Nothing energizes me —Bob Bruner, more than to see the light Dean of the Darden bulb go off in a student’s eyes School of Business

“Nothing energizes me more than to see the light bulb go off in a student’s eyes after wrestling with some kind of problem.”

Professors Davis and Moore to Retire

Prof. Ed Davis

Prof. Marian Moore

Darden Professors Edward Davis and Marian Chapman Moore announce that they will retire in June 2012, ending distinguished careers at Darden.

Edward “Ed” Davis, the Oliver Wight Professor of Business Administration, previously taught at Harvard Business School, MIT Sloan School and the University of North Carolina. He joined the Darden faculty in 1978 to head the Quantitative Methods area, where he taught in the First Year MBA program for four years before moving into the Operations Management area.

He taught First Year “Operations” for 25 years. He also created and taught three Second Year MBA elective courses, including “Global Manufactur-

ing Competition,” “Operations Strategy” and “Supply Chain Management.” An expert and researcher in the areas of supply chain management, manufacturing strategy and global sourcing, Davis has authored three books and more than 100 case studies, technical notes and articles. He was elected to U.Va.’s Raven Society in 1996.

Marian Chapman Moore, professor of business administration, joined the Darden faculty in 2001. She was the founding associate dean of Darden’s MBA for Executives program, which graduated its first class in 2008. Moore has taught the electives “Managing Consumer Brands,” “Hot Topics in Marketing” and “Marketing Intelligence” in

Upcoming Events AT DARDEN

Hooper, Tahija, Roughead and O’Neill Join the Darden School Foundation Board The Darden School Foundation Board of Trustees elected four new members: • Ned Hooper (MBA ’94) of the San Francisco Bay area, senior vice president and chief strategy officer of Cisco

Hooper

O’Neill

21–23 September 2012 “Finding Fit” Career Transitions Workshop sponsored by The Armstrong Center for Alumni Career Services 12–13 October 2012 Alumni Leadership Roundtable Weekend

• Michael E. O’Neill (MBA ’74) of New York, Hawaii and the United Kingdom, chairman of Citigroup • Gary Roughead, of Palo Alto, California, retired United States Navy four-star admiral and the Annenberg Distinguished Fellow at the Hoover Institution at Stanford University • George S. Tahija (MBA ’86) of Jakarta, Indonesia, president director of Indonesia-based PT Austindo Nusantara Jaya and chief executive of the Austindo Group

Darden’s MBA program and “Marketing Management” in Darden’s MBA and MBA for Executives programs. Her research focuses on consumers’ emotional responses to advertising and how marketing managers’ assessment of their competitors affects their own strategic decision-making processes. She has published more than 30 articles in prestigious, peer-reviewed journals. She is an emeritus faculty member of Duke University’s Fuqua School of Business. Moore will continue to teach “Brands and Hot Topics” at Darden during the 2012–2013 academic year and will hold the Eleanor F. and Phillip G. Rust Professorship of Business Administration for the year.

Roughead

Tahija

“The new members will bring valuable perspectives to the board, which aims to serve and support the Darden School as a leading business school and the most high-engagement learning experience in the world,” said Peter Kiernan, chairman of the board. “Darden is surging on many fronts, and through their new roles, the new trustees will help shape the vision for Darden’s future.”

7 September 2012 Jefferson Innovation Summit for the Commonwealth jeffersoninnovationsummit.org 15–16 November 2012 University of Virginia Investing Conference darden.virginia.edu/UVIC2012 26–28 April 2013 Darden Reunion 2013 (3s, 8s and Class of 2012) 25–27 April 2014 Darden Reunion 2014 (4s, 9s and Class of 2013)

darden.virginia.edu • SPRING/SUMMER 2012 5

News Briefs

darden.virginia.edu

No School Is Better at Teaching MBAs Than Darden A new study from the MBA website Poets & Quants analyzes the student satisfaction ratings of 83,000 MBA graduates from the nation’s top business schools gathered every other year since 1988 by BusinessWeek (now Bloomberg Businessweek).

“Only one school of all those surveyed over that 24-year span has scored in the top 20th percentile of teaching grades School Index 1. Virginia (Darden) 100.00 2. Dartmouth (Tuck) 83.3 2. Cornell (Johnson) 83.3 4. UNC (Kenan-Flagler) 66.7 5. Chicago (Booth) 50.0 5. Indiana (Kelley) 50.0 7. Harvard Business School 41.7 7. Washington (Olin) 41.7 9. Stanford GSB 25.0 9. Northwestern (Kellogg) 25.0 9. UC-Berkeley (Haas) 25.0 9. MIT (Sloan) 25.0 9. Carnegie Mellon (Tepper) 25.0 9. Rochester (Simon) 25.0

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from graduating MBAs: the Darden School,” writes Poets & Quants editor-inchief John Byrne in the article “Business Schools With the Best MBA Teaching Faculty.”

“It is an extraordinary feat achieved through the ups and downs of economic cycles, ever rising expectations, and changing student attitudes,” he writes.

Says Peter Rodriguez, Darden’s senior ’08

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associate dean for degree programs, “Superior teaching — the ability to clearly and compellingly teach a subject — and accessibility are core Darden values. We want our students to have the best business school experience in the world, and our professors are masters at their craft. We are pleased to see that the numbers tell the Darden story.”

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Source: Poets & Quants’ article “Business Schools With the Best MBA Teaching Faculty.” Chart summarizes BusinessWeek surveys of MBA graduates of top business schools from 1988 to 2010. A ● indicates that the school scored within the top 20th percentile.

First Ranking of MBA for Executives Program U.S. News & World Report’s 2013 ranking of the “Best Graduate Schools” rates Darden’s MBA for Executives program No. 11. This is the first media ranking of the program, which will be eligible for other rankings in 2013, coinciding with the graduation of the fifth class. The assistant dean of the MBA for Executives program, Barbara Millar, was recently named vice chair and future chair of the Executive MBA Council Board.

Also in the U.S. News ranking, Darden’s MBA program remained at No. 13, and the School climbed in management to No. 6 and in entrepreneurship to No. 12.

Darden Tops at Ethics The academic journal Business & Society has recognized the Darden School of Business as the world’s leading MBA program in the field of business ethics.

Research published in the December 2011 issue of the journal gave top marks to the School, based on a survey completed by 320 business ethics scholars from around the world.

Darden received 57 votes, and the Wharton School of the University of Pennsylvania received 56 — a statistical tie. Blazing the trail for Darden is the School’s Olsson Center for Applied Ethics, which was founded in 1966 to improve standards of behavior in both public and private business.

6 The Darden Report • SPRING/SUMMER 2012

The article recognizes both Darden and Wharton as “clear leaders in the field of business ethics,” noting that the schools “share the pinnacle of the field with no close contenders.” The next highest vote total was 24, received by Harvard Business School.

Proud to support the Darden School of Business.

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News Briefs

darden.virginia.edu

University of Virginia Investing Conference at the Darden School of Business

15–16 November 2012 FOR MORE INFORMATION OR REGISTER VISIT

www.darden.virginia.edu/UVIC2012

A Declaration of Innovation Sixty leaders in innovation and entrepreneurship from business, government, academia, media, public service and the arts convened for the Jefferson Innovation Summit in October 2011 to grapple with how best to create and sustain a society of entrepreneurs and innovators. The two days of purposeful conversation yielded bold and original ideas that were integrated into a Declaration of Principles, a guiding framework to improve the nation’s innovative capacity and entrepreneurial ecosystem. To build on these principles and promote further action-oriented dialogue, the Batten Institute, the summit delegates and other partner organizations have committed to undertaking a robust set of initiatives over the years to come. The principles published in January 2012 are as follows: 1. A comprehensive educational system that develops and inspires all people to be curious and creative leaders by providing experiential learning opportunities and exposure to imaginative and entrepreneurial role models 2. An entrepreneurial culture that inspires and empowers communities and individuals to embrace, nurture and celebrate innovators and entrepreneurs 3. Collaborative public and private financial institutions that promote appropriate investment in innovative research, entrepreneurial startups and social enterprises 4. Progressive immigration policies that attract and retain the most talented people in the world and encourage them to work for local businesses and launch their own ventures

SPEAKERS: Kyle Bass Managing Partner of Hayman Capital Management LP Richard Evans Founder and General Manager of Sector & Sovereign Research Jeremy Grantham Co-founder and Chief Investment Strategist of Grantham Mayo Van Otterloo Dennis Lockhart President and Chief Executive Officer of the Federal Reserve Bank of Atlanta

FOR MORE INFORMATION OR TO REGISTER, VISIT

www.darden.virginia.edu/UVIC2012 8 The Darden Report • SPRING/SUMMER 2012

5. A coherent tax structure that encourages investors, managers, entrepreneurs and inventors to allocate greater risk capital to research, development and new venture creation 6. A nimble and professionalized regulatory system that simplifies and harmonizes regulation across nations, states, regions and municipalities, enabling productive and progressive risk taking 7. Modernized intellectual property laws that reflect the realities of the post-industrial age in order to improve collaborative efficiency and better incentivize the co-creation of new ideas, technologies and ventures

jeffersoninnovationsummit.org

Sweet Success

New on Grounds

Speaking Up at the Library

Upgrades to the North Grounds Recreation Center

A transformed Camp Library challenges the way visitors imagine the library experience.

“Times have changed, and we responded by tailoring our space for research and technology needs,” says Karen King, director of library services at the Darden School.

The new layout provides “mind space,” where visitors may work quietly, and “open space,” where researchers can share their ideas, talk openly and collaborate.

“The idea behind our new design is to be able to accommodate every step in the research process,” says King.

The Camp Library also houses two of Darden’s research Centers of Excellence: the Batten Institute for Entrepreneurship and Innovation and the Center for Global Initiatives.

The University of Virginia will expand the North Grounds Recreation Center (drawing shown above) to include an additional 33,000 square feet, housing a 10-lane indoor pool, whirlpool, sauna, fitness room, squash courts and locker rooms.

Scheduled for completion in fall 2013, the project will also refurbish existing racquetball courts and increase fitness space.

The North Grounds Recreation Center is located directly across from the Inn at Darden, and guests of the inn may purchase an athletic pass to use the center.

Darden alumnus Charles Nelson (MBA ’96) and his wife Candace sparked a cupcake craze in 2005 when they opened Sprinkles, the world’s first cupcake bakery, in Beverly Hills. With 10 stores across the United States and global expansion under way, Sprinkles recently launched the world’s first cupcake ATM for 24/7 access to the pastries.

Charles Nelson returned to Darden in April to judge the School’s first “Cupcake War,” inspired by Candace’s television show on the Food Network.

Darden students, faculty and staff presented their best cupcakes, and Camille Weaver of the Office of Advancement took first prize for her “Mudslide Mocha.”

Charles Nelson (MBA ’96) judged Darden’s first “Cupcake War.” The winning cupcake was the “Mudslide Mocha.”

One Day Without Shoes Millions of children live without shoes, exposing them to injury and disease, and sometimes even preventing them from going to school. To raise awareness of the impact a pair of shoes can have on a child’s life, TOMS Shoes, Deloitte Consulting, Net Impact at Darden and Darden Outreach sponsored “One Day Without Shoes” at Darden in April.

darden.virginia.edu • SPRING/SUMMER 2012 9

News Briefs

darden.virginia.edu

Global Leadership Forum co-chairs (above, from left) Scott Price (MBA ’90), Jerry Peng (MBA ’03) and Henry Skelsey (MBA ’84) on the streets of Shanghai.

Professor Paul Simko (top right) taught a new case “China Electric.” Executives in Darden’s Global MBA for Executives program (center right) completed a two-week residency in Beijing and Shanghai, and Darden alumni and friends (bottom right) gathered at the forum.

Darden Hosts Inaugural Global Leadership Forum in Shanghai The dynamic city of Shanghai, China, set the stage for Darden’s inaugural Global Leadership Forum 11–13 May 2012. Darden’s Dean Bob Bruner, executives in Darden’s Global MBA for Executives (GEMBA) program, Darden School leadership and faculty, members of Darden’s Global Advisory Council and alumni convened for classes and discussions about the current business climate in China and the rest of Asia and about the leadership challenges facing executives who manage across continents and cultures.

Henry Skelsey (MBA ’84), managing partner of the private equity firm PRC Venture Partners; Jerry Peng (MBA ’03), managing director of Goldman Sachs (Asia); and Scott Price (MBA ’90), president and CEO of Walmart Asia, co-chaired the forum.

Highlights of the event included an admissions reception, a U.S. Fed Chairman Ben Bernanke (second from left) invited Darden Professor Greg Fairchild (far right) to meet with the Federal Reserve Board of Governors.

10 The Darden Report • SPRING/SUMMER 2012

keynote address by Price and a discussion of the new case study “China Electric,” led by Darden Professor Paul Simko.

Darden provides the opportunity for students of its three MBA programs to study in China. Executives in Darden’s GEMBA program began a two-week residency in Beijing and Shanghai on 6 May 2012. Students from Darden’s full-time MBA program spent 10 days in China in March for a “Global Business Experience” course, and the School’s MBA for Executives participants will spend a week in China in September 2012.

Darden Executive Education, a Top Five global provider, regularly delivers custom programs for clients in Asia.

In May, University of Virginia President Teresa A. Sullivan and a cadre of University deans visited East and Southeast Asia, including the cities of Hong Kong, Beijing, Shanghai and Singapore.

Fairchild Meets With Bernanke

Darden Professor Greg Fairchild (MBA ’92) formed part of a select group of experts invited to a briefing with Chairman of the U.S. Federal Reserve System Ben Bernanke and the Federal Reserve Board of Governors in Washington, D.C. The purpose of the meeting, held on 13 February 2012, was to provide the chairman and governors with perspectives on the importance of small business and entrepreneurs in job creation and the need for creating a forward-looking policy framework to support and reward entrepreneurship.

“It was an honor,” Fairchild said. “I was humbled by the opportunity to be in such an important discussion, at a time when the issues for small business growth are so crucial.”

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Faculty Spotlight

Luann Lynch

More Than Number Crunching

Who Knew Accounting Could Be So Fun? Darden Professor Luann Lynch

holds an MBA from Duke University’s Fuqua School of Business and began her career as a financial analyst for Procter & Gamble.

She worked at Northern Telecom and later at Roche Biomedical Laboratories Inc., first as manager of corporate pricing and then as assistant vice president and director.

As her career progressed, Lynch became increasingly intrigued by the role that accounting plays in companies. “I became fascinated by the extent to which behavior in the organization was affected by the design of accounting systems,” she says. She entered academia to bring her quest to investigate financial systems to an academic setting.

After receiving a Ph.D. in accounting from the University of North Carolina, where she later taught at the Kenan-Flagler Business School, she joined the Darden faculty in 1998.

Between 2004 and 2005, she taught as a visiting associate professor of accounting at the Wharton School of the University of Pennsylvania.

From 2006 to 2009, she held the Robert F. Vandell research chair at Darden, and from 2005 to 2008 she was Darden’s associate dean for intellectual capital. She now serves as a member of the Darden School Foundation Board of Trustees.

Lynch and her husband have twin 16-year-old boys, James and William, who play squash, tennis and soccer. Lynch keeps up with them by running and playing tennis in several different leagues. The family enjoys spending time at their home in the Outer Banks of North Carolina, where Lynch has a study overlooking the water.

“Part of balancing work and family is a result of blending the two,” she notes. “It means I am going 24/7, 365 days a year.”

In class, Lynch often refers to her sons as “Debit” and “Credit.”

“When my students meet my sons,” she says, “they jokingly ask, ‘Which one of you is Debit and which one is Credit?’”

12 The Darden Report • SPRING/SUMMER 2012

T

he Darden MBA students who enter the First Year core accounting class taught by Luann J. Lynch, professor of business administration, often have strong feelings about the subject at hand. Many of them arrive with low expectations, says Lynch, thinking that they will be dealing with a lot of math and that accounting is maybe — well — boring.

Lynch quickly changes their minds.

“How many of you have been to a casino and done a bit of gambling?” she quips, leading the students into a case study on MGM Grand that looks at accounts receivable and bad debt expense. Students sit up in their chairs, their interest piqued.

“We have great students,” she says. “They are sharp. They are well prepared. They come to class ready to engage.” Lynch’s goal is to convert accounting into one of their favorite courses by the end of the first semester.

With the skill of a conductor directing an orchestra, she blends the diverse backgrounds and insights of her students — some of whom have accounting backgrounds, though many others do not — into a magical learning experience.

“In the First Year accounting course, we can have everyone from a poet to a certified public accountant,” says Lynch. “The poets force us to think intuitively and conceptually about accounting rather than thinking of it as rudimentary debit and credit. The CPAs see the classroom as an opportunity to practice communicating their knowledge in a clear way, as they must do when they enter the workplace.”

Lynch also teaches the Second Year elective “Management Planning and Control Systems.” She is clear, though, that she is not out to develop accountants; her goal is to train general managers to make intelligent use of financial information, to make good decisions using that information and to understand the impact of those decisions on the corporate financial statements.

For her teaching excellence, Lynch has received numerous accolades, including several nominations for the School’s Outstanding Faculty Award. In 2000, she received the University of Virginia Alumni Board of Trustees Teaching Award and was elected Faculty Marshall. The State Council of Higher Education for Virginia nominated her for an Outstanding Faculty Award in 2001 and the BusinessWeek (now Bloomberg Businessweek) Guide to the Best Business Schools also gave her a nod.

How Much Is Your Work Worth?

Through her work experience, Lynch perceived that accounting systems change the way people behave within an organization.

She has devoted her academic life to exploring this phenomenon.

“Accounting is not just bookkeeping,” she explains. “We can actually design systems to change what people do and how they act.”

Lynch’s research focuses on the design and impact of incentive and compensation systems. “I look at how executives are paid, what form of compensation they receive and what the effects of that are,” says Lynch. “What gets measured gets done, and what gets measured and gets done, gets done even more quickly when we are paying people based on the outcome.”

“What gets measured gets done, and what gets measured and gets done, gets done even more quickly when we are paying people based on the outcome.”

She looks for stories in financial statements. For example, after the subprime mortgage crisis in 2008, the U.S. Government established the Troubled Asset Relief Program (TARP) to purchase assets and equity from financial institutions with the goal of strengthening the financial sector. Lynch and her research colleagues, Brian Cadman of the University of Utah and Mary Ellen Carter of Boston College, wanted to know which companies were likely to accept TARP funds and why, given that they would have to subsequently limit incentive and bonus pay.

Lynch and her fellow researchers discovered that the companies that were more likely to be affected by pay restrictions were less likely to accept TARP funds. A “brain drain” also occurred: Many top executives left banks that took the funds, and turnover was greater in TARP firms. Lynch and her colleagues summarize their findings in the working paper “Executive Pay Restrictions: Do They Restrict Firms’ Willingness to Participate in TARP?,” which is under review at a leading finance and accounting journal.

In 2009, Lynch co-authored another study, published in the Review of Accounting Studies, that examined the effects of the Sarbanes-Oxley Act, enacted in 2002. Named after U.S. Senator Paul Sarbanes and Representative Michael Oxley, who were its main architects, the act introduced major changes to the regulation of financial practice and corporate governance.

The researchers examined how the act affected the relationship between earnings and bonuses.

“Complain all you want about Sarbanes-Oxley, but the 2002 act and related reforms have created a tighter link between executive pay and company performance,” wrote Lynch and her colleagues Mary Ellen Carter of Boston College and Sarah L.C. Zechman of the University of Chicago Booth School of Business in a Harvard Law School blog post about their paper “Changes in Bonus Contracts in the Post-Sarbanes-Oxley Era.” “We find that firms place greater weight on earnings in determining executive bonuses after 2002,” they stated in this paper.

“Boards seized the opportunity that Sarbanes-Oxley offered. The law enabled them to hold CEOs and CFOs more accountable for financial results.”

Lynch’s research provides valuable insights into “pay for performance,” the concept that executives’ compensation should be commensurate with the value they deliver to stakeholders.

“Accounting is about reaching a state in an organization where everything must balance,” says Lynch. “My students often ask me, ‘Is accounting more art or science?’ It’s definitely more of an art.”

— Melissa V.P. Rossow darden.virginia.edu • SPRING/SUMMER 2012 13

DID YOU KNOW

DARDEN MBA TEAM WINS DELOITTE CASE COMPETITION

$20,000 D

arden First Year MBA students Samuel He Huang, Tarun Keswani, Daniel Lee and Sarah Washabaugh won the second annual National Case Competition sponsored by Deloitte and the Deloitte Foundation, which awards a prize of $20,000 and summer associate offers at Deloitte.

The Darden team’s analysis of a case about Atlanta-based SweetWater Brewing Company beat out 16 teams from top MBA programs.

WHY VENTING AT WORK DOESN’T HELP

A

ccording to new research from Darden Professor Kristin Behfar, highlighted in Fortune, the average employee either vents or hears someone else vent about four times a day. Blowing off steam at work to a co-worker doesn’t get rid of negative feelings, it amplifies them — and fuming employees can corrode a workplace. So what should you say to a venting co-worker? Offer a new take on a frustrating situation, says Behfar, or provide context that will convince the co-worker that the problem isn’t that big of a deal.

WHY SOME MBAs ARE WILDLY SUCCESSFUL

W

hat factors predict financial success? To find out, Darden professors led by Professor Ron Wilcox studied alumni of the Darden School who graduated 25 years ago and are now at the height of their careers and earning potential. The professors examined factors such as family socioeconomic background, intelligence as measured by the Graduate Management Admissions Test, emotional

intelligence, participation in athletics, early work experiences and military service and built statistical models linking potential causes and effects.

They found that participation and leadership in athletics matters considerably: Captains of the football team, it seems, really do end up making more money. Also, people who are highly intelligent but do not perform well in the classroom are less likely to be successful.

PROFESSOR ED FREEMAN SHAVES 28-YEAR-OLD BEARD FOR A GOOD CAUSE

D

arden Professor Ed Freeman, an expert in the fields of stakeholder management, business strategy and business ethics, had worn the same beard since 1985.

This winter, Freeman agreed to shave his legendary locks if the Darden Chapter of the National Association of Women MBAs could raise $10,000 to benefit Charlottesville’s Shelter for Help in

Emergency (SHE), which helps victims of domestic violence.

The student club sprung into action and raised the funds. At the 22nd Annual SHE Gala held on 3 February 2012 at U.Va.’s Alumni Hall, Freeman shaved his beard for a roaring crowd. The gala auction raised over $20,000 for SHE, and Freeman sported a new look … though only for a few days.

BEFORE AND AFTER

THE DARDEN/WASHINGTON POST “CASE IN POINT” SERIES, GOING STRONG

I

n the ongoing “Case in Point” series, which began in January 2011, Darden professors share lessons from recent Darden Business Publishing cases. “Case in Point” appears every other Sunday in the newspaper’s Business section and on its Business website. Darden professors are scheduled to write cases for the series through December 2012. Members of the Darden Society receive periodic updates on the series, which highlights the faculty’s various areas of expertise.

cases in point

Watch the video of Professor Ed Freeman as he says goodbye to his infamous beard.

GREEN INVESTING CAN PAY OFF

G

reen companies tend to outperform their less green counterparts in the stock market, say students in the Darden Capital Management (DCM) club who manage a $750,000 portfolio of stocks from companies that maintain sustainable business practices. The news is good for both shareholders and the planet, according to Cary Krosinsky, vice president of Trucost and coeditor of Sustainable Investing: The Art of Long-Term Performance.

Krosinsky spoke with Darden students by video at the invitation of DCM. Darden Professor Rich Evans, who supports the notion, says that below-average fees and aboveaverage risk-adjusted performance make “green” investing an attractive option. The views suggest that when company leaders manage their environmental risks, they may beat the stock yields of their competitors and please their investors. darden.virginia.edu • SPRING/SUMMER 2012 15

Sound Bites

youtube.com/user/DardenMBA For a long time, when people talked about Africa, they talked about an evil civil war, hunger, all of that. Now, one has to recall that there are more than 50 countries in Africa.

Today, you can count on one hand the pockets of turbulence in Africa.”

— Vincent Rague (MBA ’84), co-founder and chairman of the supervisory board of Catalyst Principal Partners, who delivered the keynote address at the second Africa Business Conference, “Africa: Open for Business,” sponsored by the student club the Darden African Business Organization in January.

“We make things too hard … we’re one of the few industries in which you need a tool to open the product.”

— Andrew Mansinne, president of Aveniu Brands, a fine wine and spirits importer owned by Spain’s Codorniu Group, who spoke at the Food and Beverage Conference held at Darden in January and sponsored

by Darden’s Wine and Cuisine Club.

“Being able to pivot, to be flexible, is very, very important.”

— The Honorable James Cheng (MBA ’87), secretary of commerce and trade of the Commonwealth of Virginia and member of the Darden School Foundation Board of Trustees, who spoke at the Black Business Student Forum conference “Manage the Future” in February.

“We wanted to make a big difference — not a small difference, not an incremental difference, but a treatment of curing difference, if we could.”

— HENRI TERMEER (MBA ’73), former president and CEO of Genzyme Corporation, who described the company’s pursuit of a cure for Gaucher disease as a Leadership Speaker at Darden in March.

“Change has now started and change will continue. I believe in my country. I believe tomorrow will be better than today.”

— Moustapha Sarhank, an Egyptian scholar in the fields of leadership, psychology and religion and honorary chairman of the Sarhank Group for Investments. Sarhank introduced Microsoft to the Middle East and spoke at Darden in February as a fellow in Darden’s Olsson Center for Applied Ethics.

“In order to survive the Darwinian competition for capital, firms will need to experiment with new funding structures to attract more permanent capital, while focusing, more than ever, on how they deliver returns for their investors.”

— Elizabeth Weymouth (MBA ’94), partner, Riverstone Holdings LLC, and member of the Darden School Foundation Board of Trustees, who delivered the keynote address at the Darden Private Equity Club’s inaugural Private Equity Conference in April.

16 The Darden Report • SPRING/SUMMER 2012

What to Read Now

Books, Cases and Darden in the Media

Books

Darden in the Media

Growing an Entrepreneurial Business: Concepts and Cases by Darden

Cracking the Sales Management Code by Jason Jordan (MBA ’97) and

This textbook, designed for courses on managing smallto medium-sized operations focuses on the management difficulties that successful start-up companies encounter when leadership makes the decision to grow.

The book provides a best-practice approach to identifying and implementing the critical activities that drive business results and recommends five fundamental sales processes that can be managed to create desired business outcomes.

Professor Ed Hess, Stanford Business Books

Forbes — 6 May 2012

Michelle Vazzana, McGraw-Hill

Social Business By Design: Transformative Social Media Strategies for the Connected Company by Dion Hinchcliffe and Peter

Becoming China’s Bitch: And Nine More Catastrophes We Must Avoid Right Now by Peter D. Kiernan (MBA ’97),

The book explains the mechanisms, SOCIAL applications and BUSINESS

BY DESIGN advantages of an array of social media topics, including social media DION HINCHCLIFFE marketing, social PETER KIM product development, crowdsourcing, social supply chains and social customer relationship management.

In this unflinching manifesto, Kiernan explores five factors that have sustained U.S. paralysis and uncovers 10 challenges that pose the greatest threat to the future of America.

Kim (MBA ’00), Jossey-Bass Foreword by Jeff Dachis Founder & CEO, Dachis Group

transformative social media strategies for the connected company

chairman of the Darden School Foundation Board of Trustees, Turner

Darden Professors Paul Farris and Rajkumar Venkatesan declare in a new study that coupons work. “In fact, the coupons that wind up in the trash ultimately deliver greater returns to a company than the coupons that are redeemed,” they write.

The Economic Times “Corporate Dossier” (India) — 27 April 2012

Dean Bob Bruner explains that “being stuck in an unattractive business without a viable exit is one of the worst situations for a firm” in his monthly column for the paper.

Coinciding with the launch of London’s Olympic slogan, “Inspire a Generation,” Professor Marian Moore comments that slogans only work if people can relate to them with their head and their heart.

CNBC Magazine (U.K.) — April 2012

In the article “Teachers on Your Tablet,” Professor Lynn Isabella explains that Darden’s GEMBA program is truly international and provides a real understanding of local conditions.

1. “Nike, Inc.: Cost of Capital” by Robert F. Bruner, Sean Carr and Jessica Chan

CNBC — 23 March 2012

2. “Positioning: The Essence of Marketing Strategy” by Richard Helstein and

Marian C. Moore

3. “Methods of Valuation for Mergers and Acquisitions” by Susan Chaplinsky,

Paul Doherty and Michael J. Schill

4. “Diamond Chemicals PLC (A): The Merseyside Project” by Robert F. Bruner 5. “Red Bull” by Paul W. Farris, Richard R. Johnson, Jordan Mitchell and Ervin R. Shames 6. “Active Listening” by James G. Clawson 7. “Warren E. Buffett, 2005” by Robert F. Bruner and Sean Carr

Dean Krehmeyer, executive director of Darden’s Initiative for Business in Society and executive director of the Business Roundtable Institute for Corporate Ethics, appears on Squawk on the Street to answer “What’s Next for McDonald’s?” on the retirement of the company’s CEO Jim Skinner.

South China Morning Post (China) — 14 March 2012

8. “A Practical Guide to Conjoint Analysis” by Ronald T. Wilcox 9. “Calaveras Vineyards” by Robert F. Bruner 10. “Genzyme/Geltex Pharmaceuticals Joint Venture” by Samuel E. Bodily, Robert F. Bruner

and Pierre Jacquet

Harvard Business Review — May 2012

The Economist — 27 April 2012

Best-Selling Cases

Darden alumni enjoy free access to the Darden Case Collection. For more details, email dardenalum@darden.virginia.edu.

Professor Raul Chao writes about “The Ins and Outs of Open Innovation” for the Batten Institute’s new weekly blog on Forbes.com.

In the article “Legalise Underground Banks, Delegates Urge,” Professor MingJer Chen explains the historical origins of lending in China.

darden.virginia.edu • SPRING/SUMMER 2012 17

case in point:

A Washington Post/Darden series*

How Process Improvement Principles Can Save Time in Your Day

by Elliott N. Weiss and Rebecca Goldberg The big idea: How can executives (or anyone) use what we know about process improvement to make their lives better — as well as improve the lives of everyone with whom they interact? Todd Pearson’s productivity transformation in his home, personal and work life is one in a series of Living Lean vignettes describing the holistic, real-world application of continuous process improvement principles.

The scenario: Pearson sleeps four hours a night and spends nearly that long in his daily commute; average time spent interacting with his two children younger than 5 amounts to only 90 minutes a day — and he feels tired and lethargic when his children ask for playtime on the floor so they can be with Daddy. His wife, Sarah, is feeling left out of his life.

Something must be done.

The resolution: Todd and Sarah map out his day and then discuss Todd’s goals and priorities. Not only is Todd a professional and a family man, but he’s also finishing up an executive MBA, which requires study and class time. He wants to reduce his commute, increase his time spent sleeping and become more engaged when he spends time with his family. The couple also identify areas of muda, which is the Japanese word for “waste.” Waste is defined as anything that doesn’t add value to the outcome. The ways in which value is defined and measured are critical, because one person’s ceiling is another’s floor. There are eight kinds of waste: excess transportation, excess inventory, unnecessary waiting, excess motion, overproduction, over-processing, too

many defects and untapped human potential or creativity. The couple think critically about schedule changes that will reduce waste.

They decide on a plan. Todd shifts his commute to earlier in the day, because he realizes the Capital Beltway rush hour is a big source of excess waiting and transportation muda. He also switches gyms and joins one within walking distance of work, which serves the double duty of forcing him to leave the office during his lunch hour to refresh himself instead of working through it. He moves activities such as readying the next day’s lunch and clothing from the beginning of the day to the end because they don’t take as much brainpower as studying, which he schedules after the kids go to sleep.

Through a series of small, incremental changes, Todd soon begins to feel the benefit to his home life; the big surprise comes when he realizes that the improvements are spilling over into work, too. He and his staff begin to use the same techniques of muda elimination in the office, including setting up a SharePoint database (which reduces over-processing), moving furniture and equipment (reducing excess motion) and creating a batch system for office tasks — all of which, taken together, allow his staff members to leave the office early enough to skip rush hour as well.

Todd continues to engage in what we like to call the relentless pursuit of the elimination of waste. He’s better able to manage his energy,

The Hours of Todd’s Day Current 4 2.5 2 5.5

Activity Sleep Gym & Prep Commute

Lean 7 0.5 1

Work (a.m.)

4.25

1

Lunch & Gym

1.25

4

Work (p.m.)

4

2

Commute

1

1.5

Family/Dinner

3

1.5

Study/Prep

2

be present with his family and produce results at work. And he sleeps seven hours every night.

The lesson: Process improvement principles are meaningless until they’re linked to “top-line metrics” — measurements that we decide best reflect progress toward our strategic goals — and top-line metrics are not the same for every area of life. Being present with ourselves and our families, managing our energy (not just our time) and working to preserve some “white space,” or free time, is just as crucial as the business metrics we all know and love: net profit and sales growth.

* Every other Sunday in The Washington Post’s Business section, Darden professors share lessons from recent cases.

Weiss (left) is the Ethyl Corporation Professor of Business Administration at Darden, and Goldberg is a consultant and management educator.

18 The Darden Report • SPRING/SUMMER 2012

Inspiring us all to reach higher.

Johnson & Johnson is proud to support

the Darden School in all their continued efforts

ŠJohnson & Johnson Services Inc., 2011

to build smarter, more dedicated,

and principled leaders for tomorrow.

Ready for the Future Meet Darden Graduates of 2012 Rose Blackburne, M.D. (MBA for Executives)

HOMETOWN: Washington, D.C. (originally New York, New York) OTHER DEGREES: B.A. in Sociology, University of Virginia; M.D., Morehouse College; Board Certification in Obstetrics and Gynecology EMPLOYMENT: Senior medical director, global therapeutic lead general medicine, U.S./Latin America, Quintiles Transnational area of focus: Leading organizations, global business, strategy

“My passion is applying my expertise to improving healthcare delivery at a local, national and international level. I have a particular interest in women’s health.”

Nickolay Bochilo (MBA for Executives)

HOMETOWN: Alexandria, Virginia (originally Pinsk, Belarus) OTHER DEGREES: B.S. in Finance and Economics, Greensboro College EMPLOYMENT: Vice president of investments, Bell Partners FELLOWSHIP: Freedom Support Act Scholarship

“Darden has transformed my life in ways I did not expect prior to the start of the program. It has made me a better student of life and business, and has significantly expanded my abilities and view of the world.”

Kimberly Dunn

(MBA)

HOMETOWN: Chagrin Falls, Ohio OTHER DEGREES: B.A. in Psychology, University of Notre Dame STUDENT ACTIVITIES: Executive vice president of the Darden Student Association; member, Raven Society and the Consulting and General Management clubs FELLOWSHIPS: Darden Class of ’79 Trustees Scholarship; Shermet Scholar; Genovese Fellow; Hyde Fellow

“I am excited to be starting a career in consulting and look forward to being exposed to a variety of companies in different industries and the problems they face.”

20 The Darden Report • SPRING/SUMMER 2012

Sunday, 20 May, was a watershed moment for the Darden Class of 2012. As the graduates filed down Flagler Court dressed in the caps and gowns of graduation, anticipation, as expressed by the words of Thomas Jefferson, hung in the air: “I like the dreams of the future better than the history of the past.”

At “The Space” in Downtown Charlottesville, a cross section of graduates from Darden’s MBA and MBA for Executives Class of 2012 gathered. Meet the leaders of the future.

Bianca Vanin

(MBA)

HOMETOWN: Montreal, Canada (originally from Dubai, United Arab Emirates) OTHER DEGREES: B.A. in Economics,University of Western Ontario student activities: Vice president of outreach, Community Consultants of Darden area of focus: Impact investing

“I truly believe that for-profit investments can be both a morally legitimate and economically effective way to address social challenges. I hope to build a career in the impact investing industry deploying capital to social enterprises that are trying to address these challenges in Latin America.”

Curtis Flood (MBA) HOMETOWN: Madison County, Kentucky OTHER DEGREES: B.A in Government, Georgetown University; M.A. in Strategic Studies, Naval War College student activities: Vice president of events for the Darden Military Association; organizer of the Tough Mudder competition; member, Darden Rugby and Darden Finance clubs Distinction: The Casey Lichtendahl Award for Inane Commentary area of focus: Finance and investment banking

Patrick Clifton (MBA)

“It is staggering to look back at my early days in Darden and recognize how little I knew and how far I have come.”

HOMETOWN: London, United Kingdom OTHER DEGREES: B.A. and M.A. in Archaeology and Anthropology, University of Cambridge STUDENT ACTIVITIES: President, Media, Entertainment & Sports Club; captain, Darden Rugby Club; student blogger; MBA Class of 2012 graduation speaker AWARD: Strauss Marketing Award

“I’m hopeful that the technological revolution of the last 20 years will eventually lead to the renaissance of the creative industries. I’m passionate about seeing that happen.” darden.virginia.edu • SPRING/SUMMER 2012 21

Rhonda Henderson (MBA) HOMETOWN: Washington, D.C. OTHER DEGREES: B.A. in Urban Studies, Columbia University; M.Ed., Harvard Graduate School of Education STUDENT ACTIVITIES: Vice president of marketing and communication for the Black Business Student Forum; member, Community Consultants of Darden distinction: Recipient of the Darden Non-Profit Internship Fund area of focus: Strategy and education

“This is a favorite quote from the Bible, and I hope to help others fulfill the directive to ‘Live a life worthy of the calling you have received.’”

Brad Hernandez (MBA for Executives)

HOMETOWN: Herndon, Virginia OTHER DEGREES: B.A. in Marketing, James Madison University employment: Federal software sales manager for IBM (works with the Department of Defense)

“The Darden experience has already opened up doors for me I never would have imagined possible, and I can unequivocally state that I am forever changed because of the Darden MBA program.”

22 The Darden Report • SPRING/SUMMER 2012

Anoop Singh (MBA) HOMETOWN: Summerfield, North Carolina OTHER DEGREES: B.S. in Economics, Duke University STUDENT ACTIVITIES: Member of the Consulting Club, Community Consultants of Darden and the Darden Student Affairs Advisory Group FELLOWSHIPS: Recipient of an International Business Society Scholarship area of focus: Leadership and strategy

“As the growing world population stretches the global food supply, I look to be at the forefront of dealing with the challenge of putting food on everyone’s plates.”

Evan Smith

(MBA)

HOMETOWN: Washington, D.C. OTHER DEGREES: B.A. in History, University of Pennsylvania; M.Phil. in Social and Economic History, University of Cambridge STUDENT ACTIVITIES: President, Darden Student Association; co-chair, Darden Prize for Excellence Committee; member, Diversity Student Advisory Group and Student Affairs Advisory Group area of focus: Strategy consulting

“I come from the world of education reform and ultimately plan to go back to that world, to work for education equity.”

Kelly Ireland

(MBA)

HOMETOWN: Baltimore, Maryland OTHER DEGREES: B.A. in Business and Economics, Ursinus College STUDENT ACTIVITIES: President, Black Business Student Forum; member, Darden Africa Business Organization, Entrepreneurship and Venture Capital Club, Healthcare Leadership Club and Diversity Student Advisory Group FELLOWSHIPS: Darden Foundation Scholarship and Consortium Graduate Study in Management Fellowship area of focus: Entrepreneurship and consulting

“I have a passion for problem solving and innovation, and I plan to pursue these passions through consulting in the short term and through entrepreneurship in the long term.”

Yumiko Almendras (MBA)

HOMETOWN: Cebu City, Philippines OTHER DEGREES: B.S. in Accounting, Certified Public Accountant STUDENT ACTIVITIES: President of Asia Business Club at Darden; student blogger area of focus: General management, retail and technology

“You don’t realize how much bigger the world is until you see and experience it for yourself in Darden’s highly global and diverse setting. You find people who are a lot like you but also different enough to learn from each other and celebrate each other’s differences. And you discover a lot about yourself, mostly how much potential you have and how to help better a person, a company, or some part of the world.”

darden.virginia.edu • SPRING/SUMMER 2012 23

The New World of Communication Join and benefit from the social network revolution. Use social media to reach and build relationships with your customers, enhance your professional image and broaden your network.

by Juliet Daum and Valerie Harness

One in every five page views on the Internet is Facebook.

48% of 18 to 34-year-olds check Facebook right when they wake up.

901m

monthly active users About 28% check Facebook on their smartphones before getting out of bed.

Facebook T H E HEAVY H I T T ER

4

800m

YouTube

unique users visit each month

VIDEOS ARE VIEWED A

60 hours of video are uploaded every minute, or one hour of video is uploaded every second.

O N E WOR LD UN D ER VIDEO

1m Over

465m Twitter

BILLION DAY

accounts

accounts currently added every day

175m $259m Tweets a day

Twitter’s projected advertising revenue in 2012

C R E ATE A FOLLOWING I N 1 40 C HAR AC TERS

150m LinkedIn

registered users

P R O FES S ION AL N E T WOR K IN G P O WER HOUS E 24 The Darden Report • SPRING/SUMMER 2012

As of 9 February 2012, LinkedIn operates the world’s largest professional network on the Internet with more than 150 million members in over 200 countries and territories.

Professionals are signing up to join LinkedIn at a rate that is faster than two new members per second.

It’s clear to me that social media have moved far beyond a means of staying in touch with old friends and colleagues. They have become how business gets done. They have also created a highly competitive weapon in the arsenal of those who want to achieve dramatically better marketing, sales, customer services, product development and worker productivity.” ­­ – PETER KIM (MBA ’00), CHIEF STRATEGY OFFICER, DACHIS GROUP, AND CO-AUTHOR OF SOCIAL BUSINESS BY DESIGN

WHAT’S NEW?

The 35+ demographic now represents more than 30% of the entire user base.

INSIGHTS FROM INDUSTRY EXPERTS

»»IPO »»Timeline for brands »»Targeted and mobile advertising

28%

Facebook offers unparalleled reach and targeting. In particular, its advertising platform, which allows for segmentation based upon demographics and user interests, gives businesses the opportunity to laser target potential customers. Further, Facebook serves as a giant endorsement engine, empowering members to recommend products, services and industry news to their friends.”

— COREY POST (MBA ’04), MEDIA MARKETING CONSULTANT, RECYCLER.COM

More video is uploaded to YouTube in one month than the three major U.S. networks created in 60 years.

140

»»Acquired by Google in 2006 for $1.65 billion »»Traffic from mobile devices tripled in 2011 »»Recent channel and user experience redesign

In an age of sound bites, YouTube can be a platform to tell your complete story, whatever that might be. To tell it the way you always wanted it told. With focus. With emotion. With emphasis. And without interruption. YouTube — your forum to persuade. So be yourself. Go ahead, persuade!”

— MICHAEL GANEY (MBA ’78), MARKETING DIRECTOR, AMERICAN KENNEL CLUB

In 2011, YouTube had more than 1 trillion views or almost 140 views for every person on Earth.

Out of 100 million active users, more than 50% log in daily.

62% of Fortune 500 companies have an active corporate Twitter account.

As of 9 February 2012, LinkedIn counts executives from all 2011 Fortune 500 companies as members; its corporate hiring solutions are used by 82 of the Fortune 100 companies.

One in six workers successfully used social networks to get hired.

»»“Promoted trends” allow companies to advertise within the Twitter stream »»Select launch of brand pages with partner companies, which previews how company accounts might stand out from the crowd of personal profiles

Twitter empowers managers to engage with the world, 140 characters at a time. Global brands have used the platform to build awareness, drive sales and deliver support. Success starts with using the service as a real-time window into consumer thoughts and actions, in turn driving better-informed decisions.”

»»Expanded profiles »»Use of a News Feed similar to that of Facebook and YouTube »»Creation of LinkedIn Today e-news digest

An optimal platform to project your professional brand and stay connected to colleagues, LinkedIn is also a powerful research tool for job seekers. Find a list of companies based on industry, location and size and then find people you know who are connected to those companies or industries. To stay in front of recruiters and potential employers, be sure to complete your profile in a targeted, thoughtful way.”

— PETER KIM (MBA ’00), CHIEF STRATEGY OFFICER, DACHIS GROUP, AND CO-AUTHOR OF SOCIAL BUSINESS BY DESIGN

— CONNIE Dato ENGLISH (MBA ’91), DIRECTOR, DARDEN’S ARMSTRONG CENTER FOR ALUMNI CAREER SERVICES

SOURCES: Infographic Labs, OnlineSchools.org, AllTwitter, Mashable, YouTube, LinkedIn

darden.virginia.edu • SPRING/SUMMER 2012 25

What Darden Is Doing in the Social Media Space and How to Become a “Super Advocate” Facebook

YouTube

Twitter

LinkedIn

facebook.com/DardenMBA

youtube.com/user/DardenMBA

twitter.com/DardenMBA

linkedin.com/groups?gid=35744 &trk=myg_ugrp_ovr

»»Videos of events (conferences, featured speakers and student club activities) »»Access to the Darden classroom experience and the case method of learning »»Stories of students, alumni, faculty and staff »»Research and innovation from alumni

»» News from Darden’s faculty, students, research centers and Dean Bob Bruner »» Event details and photos »» Conversations with people who reach out to the School via Twitter »» Tweets from members of the Darden community

»» A network of over 4,000 Darden students, faculty, staff and alumni »» Career development workshops and tips from Darden’s Armstrong Center for Alumni Career Services, plus new job opportunities »» News and events from the School »» Questions and opinion polls from fellow members of the group

»»Subscribe to the channel. »»Create a playlist of videos relevant to your specific areas of interest and share with other users. »»Comment on videos to initiate or join an ongoing discussion. »»Post videos across other social networking platforms (Facebook, Twitter, LinkedIn, Google+, Pinterest) to share them with interested colleagues and friends.

»»Follow the main Darden account on Twitter, as well as the “Darden on Twitter” list (includes Dean Bob Bruner, Professors Martin Davidson and Peter Rodriguez, student club accounts and more). »»Use Darden’s hashtag when discussing the School (#Darden) or tag the account directly (@DardenMBA). »»Retweet updates from Darden that you think would be relevant to your followers.

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WHAT YOU’LL FIND »»The latest Darden news and events »»Research and thought leadership from Darden’s top-ranked faculty »»Photos and videos of the Darden Grounds and student life »»Lively discussion of all things Darden, including personal stories and achievements

HOW TO BECOME A SUPER ADVOCATE »»Like the page to see Darden’s content in your News Feed. »»Engage with posts: Like them, comment on them and reply to a comment made by another fan. »»Post directly to our wall. You can share photos, videos, ask a question, etc. »»Share relevant posts with your Facebook friends.

Point of Pride

Growing the Darden Community on Facebook

Over the past 18 months, we have tracked Darden’s growing number of fans on Facebook and have measured our progress by calculating the ratio of fans to MBA alumni at leading business schools. Yet fan numbers aren’t everything; content is king, so jump into the conversation!

RANKING*

Nov. 2010

Apr. 2011

Sept. 2011

# MBA ALUMNI

Apr. 2012

RATIO OF FANS TO MBA ALUMNI

Chicago Booth (1)

44,772

15

Harvard (2)

43,585

68

Wharton (3)

39,779

48

Darden (11)

9,664

213

Tuck (14)

8,976

26

5,000

10,000

*According to Bloomberg Businessweek 2010

26 The Darden Report • SPRING/SUMMER 2012

15,000

20,000

25,000

30,000

Expect the Best Target.com/careers

expect to lead

x

You can expect a lot from a career at Target. A great culture. Incredible opportunity. A community-focused company. And one of the most powerful brands in the world. Your best is just ahead.

To learn more, visit Target.com/careers.

Kyle L. Corporate

Š2011 Target Stores. The Bullseye Design and Target are registered trademarks of Target Brands, Inc. All rights reserved. 101315

Leading in a Flat and LUmpy

World

28 The Darden Report • SPRING/SUMMER 2012

The world has global economies, global slumps, global recessions and global recoveries.

What the world needs are global leaders who can manage in a brave, new world.

D

espite the seemingly fresh arrival of “globalization,” the term is really nothing new. The drive to explore the unknown can be traced to ancient civilizations and the brave souls who set out to explore the earth, mostly by sea. Trade followed, as did tariff duties. What has changed over the centuries is the amount of contact between inhabitants of distant nations and the form of engagement.

Today, globalization goes well beyond the concept of inter- national trade and includes increasing worldwide connectivity, integration and interdependence of cultural, ecological, governmental, high-tech and social spheres.

The globalization trend has made far-flung locales and the people residing in them seem surprisingly close — so close that New York Times columnist and Pulitzer Prize–winner Thomas Friedman announced in 2005 that globalization had “flattened” the world, removing geographical barriers and leveling it into a single marketplace. In our new flat world, goods and services

by Sankaran Venkataraman and Gerry Yemen S. Venkatarman (left) is MasterCard Professor of Business Administration. As of 30 June 2012, he will serve as Darden’s senior associate dean for faculty and research.

Gerry Yemen is senior researcher.

darden.virginia.edu • SPRING/SUMMER 2012 29

A Globalization Timeline

can be produced anywhere. “You can innovate without having to emigrate,” wrote Friedman in his book The World Is Flat: A Brief History of the Twenty-First Century.

But what about local flavor in this increasingly integrated world? Does one size really fit all? Pankaj Ghemawat of IESE Business School contends in his

OUR W RLD

192 COUNTRIES

7

BILLION PEOPLE 3,000

ETHNIC GROUPS

6,000

19 11

LIVING LANGUAGES

MAJOR RELIGIONS

DIFFERENT FORMS OF GOVERNMENT

The First Wave.

Late 1800s to mid-1900s

The Second Wave.

1945–1980

Trading goods expanded to investing capital and labor in foreign countries.

Immediately following World War II, trade barriers between countries declined.

book Redefining Global Strategy: Crossing Borders in a World Where Differences Still Matter that — yes — globalization has leveled the playing field somewhat, but the world is asymmetric and business landscapes are quite local.

Each geographic area is likely to have different income pyramids, behaviors and customer priorities. Ghemawat calls this phenomenon “semiglobalization.” Others dub it “glocalization.” And still others call it simply “lumpy.”

Looking at the situation from another angle, might our flat world have some lumps? Certainly, business involves functional areas that lend themselves to the notion of operating in a flat world.

Others require mindfulness of the locality.

Competing the same way in all markets doesn’t make sense. Global corporate expansion requires consideration of local tastes and differences. Whether you spell “globalization” with a “z” or an “s,” both views have implications that business managers need to be aware of to conduct business with global efficiency.

What the Flat World Means to Managers In the flat world, in which all competitors have an equal opportunity to compete, how should managers focus their attention?

Gain Global Work Experience The more than 3 billion people who walked into the flat economy created a new business model. As more people joined the global workforce, the open marketplace for ideas and talent grew larger, and this change comes with opportunity and risk. Skill at working

30 The Darden Report • SPRING/SUMMER 2012

across borders is becoming a necessity.

Some companies require employees to work and reside in other countries simply to be considered for promotion to a leadership position. Certainly, to get to the C-suite, executives will need impressive work performance and a vast array of international experience.

Bring Something New to the Table Companies, like the employees who work for them, face fierce, highly innovative competitors. Several Chinese, Brazilian and Indian companies that were once considered copycats are gaining influence and challenging industry leaders. They are masters at redesigning products and processes to cut costs and produce frugal, yet profitable, innovations.

As an example, consider the Indian company Tata Motors and its Nano car.

As thrifty investors and customers gain access to a wide array of options, they will expect more from businesses. And that includes longer operating hours.

Companies will have to conduct business in real time to address increasing needs and preferences. The 24/7 culture will permeate our world, and companies will have to be open for business at all hours and always be ready with fresh ideas to bring to the marketplace.

Keep an Eye on Industry Creep and Emerging Economies As business hours grow longer and innovation ramps up, the tense competition in one industry will spill over into another. Previously unrelated ideas, products, processes and services are combining and often creating new products. For example, aerospace companies in the defense

The Third Wave.

1980–present Economic policy reform, particularly among developing countries, as well as declining transportation costs and technology advancements, have allowed more countries to enter global markets. Service industries have started to appreciate the gains from going global. The race is on to join the club of world-class companies.

Developing Global Leaders

industry are moving into the electronics industry. BAE Systems now makes both guided missiles and office machinery.

Household appliance firms are competing in the aerospace defense industry. iRobot Corporation, which began by manufacturing vacuum cleaners, now produces unmanned ground vehicles for the military.

And just to sharpen the flat edges, the rich world is losing its leadership position.

The ongoing shift of economic power from developed to developing countries will become more dramatic in the flat world.

In 2010, for the first time, a non-American company took the number one spot on the Financial Times Global 500 list.

What the Lumpy World Means to Managers If business activities remain quite local and huge differences arise when crossing country lines, where should managers doing business in a global context focus their attention?

Manage With a Flexible Approach To succeed in this complex world, managers must develop a range of experiences and multidimensional perspectives and be prepared to manage with a flexible approach. In general, even being aware of the incompleteness of one’s understanding of foreign cultures and business practices is valuable. Reaching out to others — cultural mentors and informants — as well as taking on expat assignments will help managers think and behave differently.

Executives must also learn to deal with foreign governments. New rules, different trade laws, patent issues and

Darden’s Global MBA for Executives (GEMBA) program prepares executives to lead across multiple continents and cultures through the core courses of the Darden MBA — taught through internationally focused case studies — and six, two-week international residencies in Brazil, China, India, the United States and Western Europe.

In Brazil in January 2012, GEMBA participants visited the São Paulo stock exchange, BM&F Bovespa (top), and completed core curriculum courses taught by Darden faculty at INSPER, a Darden partner school (bottom).

changes in government policy — all these dimensions will significantly affect a business and how it is managed.

Rather than grumbling about the burden of regulation and government participation in commerce, companies will look for people with the skills to engage in political processes with highlevel political officials anywhere in the world. Being globally minded includes developing international relationships with governments, too. (continued on page 32) darden.virginia.edu • SPRING/SUMMER 2012 31

Meet T.S. Balaji of the GEMBA Class of 2013

I

grew up in Chennai, a southern metropolitan city in India. As an undergraduate, I studied production engineering. I was ranked first in my class and fifth at Marathwada University.

I returned to Chennai to work in a small software development company and then left for the United States to study for a master’s degree in industrial engineering at Louisiana Tech University. I graduated with a master’s degree in 1998 and, before graduation, had joined the Ph.D. program for biomedical engineering.

I left the Ph.D. program in 2000 to join a startup company in the Bay area. After two startups in less than a year, I yearned for stability and moved to Kansas for a job at Sprint. I joined a group called User Experience Design (UXD) at Sprint. UXD was responsible for designing cell phones, websites and other customer-facing touch points. After 10 years with increasing responsibilities, I left Sprint to join Cox Communications in Atlanta, Georgia, as director of converged services and user experience design. I am responsible for creating a unified

T.S. Balaji serves as director of converged services and user experience design at Cox Communications in Atlanta, Georgia.

experience across the different digital touch points, such as TV, web and mobile devices.

I realized that getting an MBA would round out my education and understanding of business and leadership and that a global MBA would afford me greater degrees of freedom and the opportunity to focus on global business issues. I chose Darden’s GEMBA program with the hope of becoming a strong global leader.”

The global manager must have an understanding that every decision has a flat and lumpy component, and the economic growth of a country — whether fast or slow — will also affect the strategy.

Master the Complexities of Language Exerting influence on world affairs requires great communication, which in turn necessitates the ability to understand and speak different languages.

Comprehending the subtleties of a language requires time and patience.

An executive from Croatia working for an American company in China described a management meeting he conducted at the end of a long, exhausting day.

During the meeting, he said, “Let’s go around the table on this one — you start.”

The manager he asked to start got up and walked around the table, taking his instructions literally — a not-so-gentle reminder of the need to be mindful of where in the world you are working.

Employees who are fluent in multiple languages will be highly sought after.

Whether English will remain the language of business is unclear. The United Nations, an undisputed global organization, conducts business in six official languages: Arabic, Chinese,

English, French, Russian and Spanish.

The multilingual, transnationally elite manager will triumph.

Rethink Every Step of the Value Chain Working in a lumpy world means companies must rethink their capabilities and where and how they can execute them. Several questions should be asked, including: • How (acquisition, partner, greenfield) • Where (developed or developing) • What (all product lines, segments, new products or services) • Speed (How quickly should a company decide to enter a market — right now, or can it wait?)

Becoming a big, agile, globally integrated company in a lumpy world is no cakewalk.

The Bottom Line Making companies work on a global scale requires trade-offs and balance. What works for a company in one region may or may not generate value in another.

32 The Darden Report • SPRING/SUMMER 2012

Some markets may be flat and any player could dominate; the main issue might be delivering the product. Others will require sensitivity to local infrastructures, preferences and purses.

The global manager must understand that every decision has both a flat and a lumpy component, and the economic growth of a country — whether fast or slow — will also affect the strategy.

As the third wave of globalization continues to pick up steam, participating companies and executives will face an astonishing combination of business challenges and opportunities. The race to join the new club of world-class firms includes more non-Western-based companies than ever before. Inching toward the top of the list will require asking the right questions and developing managers with the judgment to recognize the kind of world in which they are working.

# 476C DressPANTONE better than expected

petermillar.com

DARDEN REUNION WEEKEND

Reunion 2012

http://www.flickr.com/photos/darden-uva

34 The Darden Report • SPRING/SUMMER 2012

DARDEN REUNION WEEKEND

Alumni News Engagement of Epic Proportions: Reunion Attendance Breaks Records Michael J. Woodfolk Executive Director, Alumni Services

E. Follin Smith (MBA ’85), center, received the Abbott Award, the highest honor Darden bestows on members of its alumni, on 28 April 2012. Smith is pictured with (from left): Trip Davis, Darden’s senior associate dean for external relations and president of the Darden School Foundation; Dean Bob Bruner; Jen Finn, chair of the Darden School Alumni Board; and Michael Woodfolk, executive director of Alumni Services.

Darden Alumna E. Follin Smith (MBA ’85) Receives Charles C. Abbott Award E. Follin Smith’s path to the C-suite wound from her hometown in rural Alabama, through Davidson College and the University of Virginia Darden School of Business, to CFO positions at Armstrong Holdings and Constellation Energy Group.

“Darden changed my life,” said Smith, who received the Charles C. Abbott Award at the State of the School event on Saturday, 28 April, during Reunion 2012. The Abbott Award is the highest honor the Darden Alumni Association bestows on members of its alumni.

After graduating with an MBA from Darden in 1985, Smith joined a team of 13 men — graduates of the nation’s top business schools — at General Motors’ treasurer’s office in New York City, in an atmosphere The Wall Street Journal described as a “shark tank.”

“One day, as we were working on option valuation, a colleague who graduated from Wharton said, ‘We can’t value that!’ and I said, ‘Oh yes, we can!’” Smith explained that Darden had equipped her with a superior toolkit.

“Darden taught me how to take a gnarly business problem and crack it open … and then articulate my vision in a compelling way, said Smith. One finance professor in particular had shifted her interest as a student from marketing and fashion to finance.

That professor was Darden’s Dean Bob Bruner.

Subsequently, Smith rose to become executive vice president, chief financial officer and chief administration officer of Constellation Energy Group, a role she held until 2007.

These days, Smith serves on multiple boards: those of Ryder Systems, Discover Financial Services, Davidson College and CenterStage. For the past nine years, she has been a member of the Darden School Foundation Board of Trustees, for which she led the Audit and Finance Committee as chair and served as a member of the Investment and Compensation committees.

She has also been a longstanding and generous contributor to the Darden Annual Fund and is a member of the Darden Hickory Club and the Darden Society.

She explained that each year she and her husband sit down and discuss how they are going to tithe back to the institutions that have changed their lives.

“Darden inspires you to be more than you realized you could be,” said Smith. “It teaches you to be competitive and gives you a compass that points to the true north in business ethics. I want to support that paradigm and give back in a meaningful way.”

What a start to the year! During the early months of 2012, more than 50 alumni returned to participate in the classroom.

Subsequently, April meant a flurry of activity at Darden — board meetings, admitted student events, end of year student celebrations, and Reunion for classes ending in 2s and 7s and the 2011 MBA and MBA for Executives graduates. These events are always invigorating and proved even more so this year, as we welcomed back a record number of alumni for Alumni Reunion Weekend. With 679 alumni returning to Grounds, attendance increased nearly 13 percent compared to Reunion 2011. This also meant Reunion participation was at a record high, with more than 30.5 percent of alumni participating in the weekend’s events.

Reunion’s record-breaking numbers and the support you’ve shown the Darden Annual Fund reflect something of profound importance to all of us: Darden is moving forward. Dean Bob Bruner’s vision for the Darden School of Business is to achieve world-class impact and stature, and your active engagement is essential to realizing this vision. Do not stop! We urge you to participate in the life of the School: Attend chapter events, teach in the classroom, recruit from Darden, refer students, submit a Class Notes update, reconnect with professors, update your alumni profile online or plan to attend one of the upcoming reunions (26-28 April 2013 and 25-27 April 2014).

Let’s continue to shatter Darden records!

darden.virginia.edu • SPRING/SUMMER 2012 35

Alumni Profiles “The cases have changed and the professors have changed, but principles haven’t changed. And it’s a great credit to Darden that it’s stuck to its core values, especially as a great teaching institution.” —Donald Wilkinson Samuel Stuart

Donald Wilkinson (MBA ’66) Don Wilkinson earned his Darden MBA in 1966, and two of his sons — Donald III and Charlie — have subsequently obtained the same prestigious degree.

Wilkinson also received Darden’s coveted Charles C. Abbott Award and is a member of the School’s Principal Donors Society, a group of individuals who have given $1 million or more to the School in their lifetimes.

Over the years, he has held many leadership roles at the School, including trustee and chairman of the board of the Darden School Foundation.

With that kind of pedigree, the Virginia native turned New Yorker undoubtedly treasures the School.

“Darden by far has the best educational model in graduate, global business education,” says Wilkinson, who co-founded the investment firm of Wilkinson O’Grady & Co., Inc. in New York City in 1972.

“I left Darden to go into international finance, and I’ve pursued it all my life,” the 74-year-old says of his long career in the financial world.

And Darden, he asserts, coached him well. “The case method pedagogy prepares people better than being lectured,” claims Wilkinson. “And the Darden program — as well as the University of Virginia — has a strong ethical base.”

A strong ethical foundation underlies most great businesses, he says. It “brings to mind J.P. Morgan’s quote about the importance of running a firstclass business in a first-class way. There’s no question people can cut corners and do well for the short term. But it never works.”

Wilkinson, who still speaks with a distinctive Southern accent, says Darden has stayed true to its core since he was a student more than 40 years ago. “I would say it’s stayed extraordinarily constant. The cases have changed and the professors have changed, but [the] principles haven’t changed. And it’s a great credit to Darden that it’s stuck to its core values, especially as a great teaching institution.”

He says the same of U.Va., which all four of his children attended, including son Duncan, who earned a master’s degree in electrical engineering, and daughter Margot, who earned a bachelor’s degree in environmental science.

One of Wilkinson’s grandchildren, Donald Wilkinson IV, is a Second Year U.Va. student.

Wilkinson says Darden excels at teaching how to lead. “There’s nothing more challenging than teaching leadership. The case method teaches clear, rational thinking, and that’s a major part of leadership. My experience has been that CEOs who can clearly articulate their vision of the future are the great business leaders.”

Considering the economic growth flowing from technological changes expected over the next decade from the digitally connected world — and the rise of Asia in the global economy — he sees great prospects for newly minted Darden graduates.

— Carlos Santos

36 The Darden Report • SPRING/SUMMER 2012

Elie Maalouf (MBA ’89)

Thomas J. Baltimore Jr. (mba ’91)

Despite his 23 years of experience as a business leader, Elie Maalouf keeps a low profile. In the few interviews he has given over the years, he has credited his success to teamwork rather than to himself.

But Maalouf has realized plenty of accomplishments since he graduated Darden with an MBA in 1989. He just stepped down as president and chief executive officer of HMSHost Corporation — a near $3 billion global food, beverage and retail company with 34,000 employees operating across 14 countries. He ran the company from 2005 until 2011.

He credits Darden with having sharpened his business acumen, which led him to significantly expand the company and garner record profits. “It was foundational,” he says of his time at the School. “It helped in forming a core understanding of business principles. Darden taught how to publicly articulate your views. You had to be participatory and persuasive.”

Maalouf is also proud that Darden took the lead in teaching ethics — differentiating itself as the first business school in the country to do so.

“It’s a distinguishing factor there, and I think it’s more relevant now than ever before,” he notes. “Integrity is the first principle of leadership.”

He urges Darden graduates to keep today’s weak economy in perspective. “I’m a relative optimist,” he explains. “History shows prosperous times last longer than the harder times.”

Earlier in his career, from 1989 to 1997, Maalouf was with Weyerhaeuser Real Estate Company, a $2 billion real estate subsidiary of Weyerhaeuser Company. That was a challenging period for the real estate business, but in the end, it taught him how to lead in tough times.

Currently contemplating his next business move, Maalouf truly has a world of possibilities. Maalouf, 47, was born in the United States and is of Lebanese ancestry, but grew up in Europe. In addition to English, he speaks Arabic, French and Italian. He lives in McLean, Virginia, with his wife Kathy and their sons, Gabriel, Julian and Christian.

— Carlos Santos

Thomas J. Baltimore Jr., the president and chief executive officer of RLJ Lodging Trust, fervently believes in the value of learning.

“My wife and I are passionate supporters of education,” he says. “We believe in its transformational power.”

The couple are strong backers of scholarship programs, especially for African-American students, at Darden and through the University of Virginia Jefferson Scholars Foundation, for which Baltimore serves as a board member.

Baltimore’s education — a Bachelor of Science from the McIntire School of Commerce at the University of Virginia and an MBA from Darden in 1991 — has helped take him far. RL J Lodging Trust is one of the largest publicly traded U.S. real estate investment trusts, with 141 hotels and an equity market value of approximately $2 billion. In 2000, he also co-founded the Bethesda, Maryland–based RL J Development, the largest African-American hotel ownership company in the country.

“If I had any success, Darden played a role in it,” says Baltimore.

“Darden was a unique mix, combining a rich academic environment and intense study groups with rigorous debating in the classroom. I left feeling so well-prepared.”

He learned how to listen as well as to be inclusive — key traits of a good leader, he says. “As leader, you set the course. Where is magnetic north? The key direction for me is shareholder value.”

Baltimore has become well-known in the business world. A May 2006 Washington Post article described him as “brimming with integrity, with a sly sense of humor (once you get to know him) and a religious ferocity for working hard.”

He advises Darden students to ready themselves mentally to win.

“Be prepared to persevere,” he says. “You’re going to encounter setbacks.

Proceed with grace and humility. Weather the storm and don’t quit.”

Baltimore, 48, grew up in Silver Spring, Maryland, and now lives in Potomac, Maryland, with his wife Hillary and two children, Thomas III, 13, and Hannah, 9.

— Carlos Santos

darden.virginia.edu • SPRING/SUMMER 2012 37

Leadership Boards

The five Leadership Boards of the Darden School of Business are comprised of more than 140 distinguished leaders, who collectively serve as an innovative force in the advancement of the Darden School throughout the world.

Darden School Foundation Board of Trustees

Alumni Association Board of Directors

Chairman Peter D. Kiernan (MBA ’79) Kiernan Ventures Vice Chairman Philip W. Knisely (MBA ’78) Clayton, Dubilier & Rice Thomas J. Baltimore Jr. (MBA ’91) RLJ Lodging Trust W.L. Lyons Brown III (MBA ’87) Altamar Brands, LLC Robert F. Bruner Dean, University of Virginia Darden School of Business G. David Cheek (MBA ’79) The Meridian Group James Su-Ting Cheng (MBA ’87) Commonwealth of Virginia James A. Cooper (MBA ’84) Thompson Street Capital Partners VN Dalmia (MBA ’84) Dalmia Continental Pvt. Ltd. Trip Davis (MBA ’94) President, Darden School Foundation, Senior Associate Dean for External Relations Michael A. DeCola (MBA ’77) Mississippi Lime Company Kenneth M. Eades (Faculty) Professor of Business Administration Karen K. Edwards (MBA ’84)) Kosiba Edwards Associates Louis G. Elson (MBA ’90) Palamon Capital Partners, LLP John M. Farrell Jr. (MBA ’80) The Coca-Cola Company Jennifer McEnery Finn (MBA ’00) Capital One Financial Donald W. Goodman (MBA ’84) The Walt Disney Company Edwin B. Hooper (MBA ’94) Cisco Systems Robert J. Hugin (MBA ’85) Celgene Corporation

Chair Jennifer McEnery Finn (MBA ’00) Capital One Financial Services President Karen K. Edwards (MBA ’84) Kosiba Edwards Associates George (Yiorgos) Allayannis Faculty Adviser Keith Bachman (MBA ’89) Bank of Montreal Mark Danzenbaker (EMBA ’08) GridPoint Christian Duffus (MBA ’00) LEAF College Savings LLC Warren F. Estey (MBA ’98) Deutsche Bank Securities Michael Ganey (MBA ’78) American Kennel Club Kirsti W. Goodwin (MBA ’02)

Martina Hund-Mejean (MBA ’88) MasterCard Worldwide William I. Huyett (MBA ’82) McKinsey & Company Luann Lynch (Faculty) Professor of Business Administration John G. Macfarlane III (MBA ’79) Zafferano Capital Holdings Carolyn S. Miles (MBA ’88) Save the Children Marshall N. Morton (MBA ’72) Media General Inc. Honorable Lewis F. Payne McGuireWoods Consulting, LLC Scott A. Price (MBA/MA ’90) Walmart Asia Harry T. Rein (MBA ’73) Foundation Medical Partners Frank M. Sands Sr. (MBA ’63) Sands Capital Management Walter E. Shill III (MBA ’86) Accenture Bryan H. Simms (MBA ’94) Lazard Wealth Management, LLC Henry F. Skelsey (MBA ’84) PRC Venture Partners, LLC E. Follin Smith (MBA ’85) Ryder Systems, Inc. (Board) Discover Financial Services (Board) John R. Strangfeld Jr. (MBA ’77) Prudential Financial, Inc. Michael Strine University of Virginia Teresa A. Sullivan President, University of Virginia George S. Tahija PT Austindo Nusantara Jaya (ANJ) Roger L. Werner Jr. (MBA ’77) Outdoor Channel Holdings, Inc. Elizabeth K. Weymouth (MBA ’94) Riverstone Holdings, LLC Vanessa A. Wittman (MBA ’93) Google

38 The Darden Report • SPRING/SUMMER 2012

Gordon Grand III (MBA ’75) Owen D. Griffin Jr. (MBA ’99) Dominion Enterprises Lisa O. Jones (MBA ’85) Pavilion Properties Harry N. Lewis (MBA ’57) Nicole McKinney Lindsay (MBA/JD ’00) Strong Seed Professional Development LLC Michael K. Ling (MBA ’06) i-Admin Richard K. Loh (MBA ’96) Ploh Group Pte. Ltd. Elizabeth H. Lynch (MBA ’84) EHLynch Consulting Dar Maanavi (MBA/JD ’94) Merrill Lynch & Co. Inc. Jay McDonald (MBA ’71) Middleton McDonald Group, Inc. Vistage International Jeanne L. Mockard (MBA ’90) JLM Capital and Consulting Melissa Monk (EMBA ’08) Acxiom Corporation

Douglas T. Moore (MBA ’80) hhgregg L. Paul Nelson II (MBA ’77) OFIC North America, Inc. Chrissa Pagitsas (MBA ’09) Fannie Mae Zhiyuan (Jerry) Peng (MBA ’03) Goldman Sachs (Asia), LLC Kari E. Pitkin (MBA ’97) Bank of America Merrill Lynch Shelley Reese (MBA ’08) Booz Allen Hamilton Mark A. Riser (MBA ’94) Morningside Private Investors Elvis Rodriguez (MBA ’10) Goldman Sachs Asset Management Abby A. Ruiz de Gamboa (MBA ’04) Deloitte Consulting LLP Evan Smith (Class of 2012) Student Representative

Dean’s Diversity Advisory Council

Global Advisory Council

Corporate Advisory Board

Nicola Allen (MBA ’10) Pelton & Crane Joanna Bressel-Wilder (MBA ’94) Sony Pictures Entertainment James Cheng (MBA ’87) Commonwealth of Virginia Syd Dorsey (MBA ’87)

VN Dalmia (MBA ’84) Dalmia Continental Pvt. Ltd. Louis Elson (MBA ’90) Palamon Capital Partners, LLP Silvia Ethel (MBA ’99)

Michael Balay (MBA ’89) Cargill, Inc. Helen Boudreau (MBA ’93) Novartis Pharmaceuticals Mark Bower (MBA ’02) Bain & Company William Breed IV (MBA ’87) Pros, Inc. William Carter (MBA ’99) Advance Auto Parts David Couture (MBA ’95) Deloitte Consulting LLP R. Scott Creighton (MBA ’82) Johnson & Johnson Consumer Products Richard Edmunds (MBA ’92) Booz & Co. John Fowler Jr. (MBA/JD ’84) Wells Fargo Securities, LLC Clay Flinn Gill (MBA ’91) Beaufort, LLC Douglas Haynes (MBA ’92) McKinsey & Company John Hulbert Target Pierre Jacquet (MBA ’98) L.E.K. Consulting Thomas Johnstone (MBA ’88) GE Capital Corporation John Bernard Jung (MBA ’84) BB&T Capital Markets Matthew Kaness (MBA ’02) Urban Outfitters, Inc. Mary Lou Kelley (MBA ’91) Chico’s FAS, Inc. Michele Kessler (MBA ’89) Univision Communications Inc. Kevin Klau (MBA ’02) Danaher Corporation David Kostel (MBA/JD ’97) Credit Suisse Mark C. Lamarre (MBA ’90) Raymond James & Associates Harry Lawton (MBA ’00) The Home Depot

Gabriela Gold (MBA ’95) World Bank Allison Linney (MBA ’01) Allison Partners, LLC Octavia Matthews (MBA ’89) Noelle Mykolenko (MBA ’99) Computer Sciences Corporation Michael Peters (MBA ’09) COMCAST Corporation Warren Thompson (MBA ’83) Thompson Hospitality Corporation Jeffrey Toromoreno (MBA ’06) Citigroup, Inc. Carroll Warfield (MBA ’81) Thayer Lodging Group

John Farrell (MBA ’80) The Coca-Cola Company Gabriela Gold (MBA ’95) World Bank Leslie Grayson Isidore Horween Emeritus Research Professor of International Management Clelland Hutton (MBA/JD ’75) Ajia Partners Gene Kim (MBA ’96) Nexolon Takahisa Koitabashi (MBA ’93) iSigma Capital Corporation Richard Loh (MBA ’96) Ploh Group Pte. Ltd. Zhiyuan (Jerry) Peng (MBA ’03) Goldman Sachs (Asia), LLC Antonio Periquet (MBA ’90) Pacific Main Holdings, Camden Hill Group Kari Pitkin (MBA ’97) Bank of America Merrill Lynch Scott Price (MBA/MA ’90) Walmart Asia Vincent Rague (MBA ’84) Catalyst Principal Partners Fiona Roche (MBA ’84) Estates Development Co. Pty. Ltd. Walter Shill (MBA ’86) Accenture Henry Skelsey (MBA ’84) PRC Venture Partners LLC Erik Slingerland (MBA ’84) Egon Zehnder International Gmbb.

George Tahija (MBA ’86) P.T. Austindo Nusantara Jaya Sergio Waisser (MBA ’98) McKinsey & Company

Charles Leddy (MBA ’03) Starbucks Corporation Octavia Matthews (MBA ’89) John D. Mayer Booz Allen Hamilton J. Daniel McCarthy Silver Eagle Consulting, Inc. Daniel McKeon (MBA ’08) Marriott International, Inc. Richard Paschal (MBA ’89) Coach, Inc. Bill Pearce (MBA ’85) Overseas Private Investment Corporation Thomas Poole (MBA ’99) Capital One Eric Riddleberger IBM Global Business Services James Schinella (MBA ’93) Manilla Robert Smith (MBA ’87) T. Rowe Price Susan Sobbott (MBA ’90) American Express OPEN Bruce Thompson (MBA ’90) Bank of America Corporation Mark Watkins (TEP ’94) MeadWestvaco M. Reaves Wimbish (MBA ’97) Accenture

darden.virginia.edu • SPRING/SUMMER 2012 39

Chief financial officer for MasterCard Worldwide, Martina Hund-Mejean oversees accounting, controls, tax, internal audit, investor relations, strategy, M&A, financial planning and analysis, treasury, risk management, global supply chain, business unit finance and regional finance.

Before joining MasterCard in 2007, Hund-Mejean served as senior vice president and treasurer of Tyco International Ltd. She joined Tyco in 2002 as part of its “new” management, with responsibility for all areas of treasury, mergers, acquisitions and divestitures. During her tenure with Tyco, she executed $6 billion in financings to address Tyco’s 2002–2003 liquidity crisis. She also revamped the company’s capital structure, including debt reduction and share repurchase programs; introduced a new banking infrastructure; implemented revised risk management processes and was instrumental in streamlining Tyco’s business portfolio, including the most recent separation of Tyco’s health care and electronics businesses.

She was senior vice president and treasurer of Lucent Technologies Inc. (now Alcatel-Lucent) before joining Tyco. In this position, her responsibilities included capital markets, corporate finance, banking, credit and risk management and investor relations. From 1988 to 2000, HundMejean held a series of finance positions with increased responsibility at General Motors Corporation, in both the United States and the United Kingdom, including the assistant treasurer post. She began her corporate career as a credit analyst at Dow Chemical in Frankfurt, Germany.

Hund-Mejean received a master’s degree in economics from the University of Freiburg, Germany, and an MBA from the University of Virginia Darden School of Business. She has been named one of the “100 Most Influential People in Finance”

by Treasury & Risk Management magazine on three occasions. Hund-Mejean is a member of the board of directors of Prudential Financial Inc., as well as a member of the Darden School Foundation Board of Trustees.

STephanie Gross

20 Questions with Martina Hund-Mejean (MBA ’88)

What was your first job?

Dishwasher at a fish restaurant at age 13.

What’s the best advice you have ever received?

Always try different things and don’t give up easily (especially when you are stuck in the restaurant kitchen washing dirty dishes!).

payment system like MasterCard provides.

York City — best city in the world!!

What technology can you not live without?

Blackberry and iPad.

What do you lose sleep over?

The world.

What companies do you admire?

Apple, with its consumerfocused innovation machine.

Who’s your favorite action hero?

James Bond.

What motivates you?

Difficult situations and ski slopes.

How do you stay ahead of the competition?

Obsess about what you don’t know.

What is your most marked characteristic?

Being straightforward and direct. “You get what you see.”

Which natural talent would you most like to have?

I would like to be able to dance.

What’s your current state of mind?

Time is too precious to waste.

What are you reading these days?

Wikinomics from Don Tapscott, which explains that masses of people are participating in the economy like never before due to the digital age. I believe a lot of this could not happen without a sound electronic

40 The Darden Report • SPRING/SUMMER 2012

What have you recently uploaded onto your iPod? My 12- year-old son is my iPod caretaker. Recently, he uploaded the latest songs from Coldplay, Adele, The Black Eyed Peas and Sean Kingston.

How do you unwind?

Cooking, reading, playing with kids/hubby, sports.

If you could live anywhere, where would it be?

Right where we live, New

What’s your favorite food and beverage?

Wine and cheeses/pâtés.

How did Darden get you ready for your career?

It taught me critical thinking and effective debate skills.

Which class at Darden impacted you the most?

“Organizational Behavior” with Jim Clawson.

Looking back, is there a class you should have attended and didn’t?

“Corporate Finance” (sorry Dean Bruner!).

If you could go back and take a class now, what would it be?

“Corporate Finance” (seriously!).

Join the Forward Thinkers and Ensure Darden Will Impact the World Through the Principled Leadership of Its Graduates.

Gifts to the Darden Annual Fund spark learning, teaching, research and academic innovation. The 2012 Darden Annual Fund strives to move forward

25

to 50 percent Annual Fund alumni participation, (up from a record-breaking 42 percent in 2011) and $4 million (up from an all-time high $3.5 million) by 30 June 2012.

We are halfway to our goal with 25 percent alumni participation. Join the Forward Thinkers who have made a gift this year and demonstrate to the world that Darden is a high-engagement, transformational learning experience that keeps giving to its students, long after they have graduated. Each gift to the fund — no matter its size — builds on the next.

Taken as a whole, the gifts have a tremendous collective impact on the School — and the world.

Your support will ensure Darden’s legacy of excellence, elevate the School’s position among the world’s premier business schools and share Darden’s values with the next generation of leaders.

...and Moving Forward to 50

Please consider a gift to the Darden Annual Fund by 30 June 2012.

www.darden.virginia.edu/givenow