Darden Report Winter 2024

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Why the middle class of business is a worthy dream for entrepreneurs

A new partnership model is moving the needle on once-intractable problems

ESG investing goes under the microscope as industry seeks more impact

WINTER 2024 UNIVERSITY OF VIRGINIA DARDEN SCHOOL OF BUSINESS

NEW IDEAS, BETTER BUSINESS Darden ideas advance investing, social good and the middle class of business

THE DARDEN EXPERIENCE

M A DE P O SSIB L E B Y YO U Join 4K alumni who contributed last year.

Unrestricted gifts support half of all scholarships.

AR E YOU IN ?

giving.darden.virginia.edu

FROM THE DEAN

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WINTER 2024

RESEARCH MAKES BUSINESS BETTER

A

s I return to Darden this January from my sabbatical pursuing graduate research and coursework at Oxford University’s Uehiro Centre for Practical Ethics, I am invigorated by the power of research to make businesses better.

Much of my work at Oxford focused on the intersection of ethics, well-being and artificial intelligence (AI), a topic with massive ramifications for business and society. It is also a topic Darden will prioritize and influence the conversation, thanks in large part to the generosity of David M. LaCross (MBA ’78) and his wife, Kathleen O. LaCross. The LaCross family’s updated gift to Darden, totaling well over $100 million, positions the School and UVA as trailblazers in research, teaching and deployment of AI in the business landscape. It will fund research and instruction in AI, its ethical implications for management, and the challenges and opportunities AI presents for business and society. Read more about this record gift on Page 5.

Darden’s strength in research is not limited to one topic. It makes an impact across many fields, powered by our philosophy that capitalism should create value that makes the world better.

Ideas matter and are central to keeping our transformational learning experience at the leading edge.

This issue of The Darden Report highlights some of the latest research from three of the School’s leading Research Centers of Excellence. The Batten Institute for Entrepreneurship, Innovation and Technology spotlights Professor Saras Sarasvathy’s research on how orienting entrepreneurs to build enterprises in “the middle class of business” offers worthy rewards to them and their communities (Page 16). The Institute for Business in Society looks back at a decade of data from its efforts with public-private partnerships to show how the collaborations improve success solving seemingly intractable societal problems (Page 22). Finally, the Richard A. Mayo Center for Asset Management spotlights research from Professor Pedro Matos and a group of Dardenfunded postgraduate researchers, who find that ESG investing has often fallen short of its goals but that there is a path forward to make more impact (Page 26).

“

At Darden, our ideas don’t just advance business practice, they are instrumental in creating a transformational learning experience.”

Darden is committed to excellence and having the best faculty anywhere. Our faculty members value research and its ability to improve the world.

Faculty research — from books to field-based cases to groundbreaking articles — connects to the world of real business practice. But to enable our faculty to achieve their full potential requires impactful support. That’s why we introduced Faculty Forward — the second milestone of the Powered by Purpose campaign — to elevate faculty excellence and, by extension, enrich our students’ educational journey (Page 4).

I hope you will join us as our faculty continue their work to shape the future of business practice — whether through a gift, participating in faculty case studies and research, or simply retaining the close-knit relationships you built with professors during your time on Grounds.

SCOTT C. BEARDSLEY Dean and Charles C. Abbott Professor of Business Administration WINTER 2024

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DARDEN REPORT

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WINTER 2024

16 A DREAM WORTH HAVING Silicon Valley exhorts entrepreneurs to supersize their dreams. But Professor Saras Sarasvathy believes entrepreneurs creating a “middle class of business” is a dream worth having.

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A NEW MODEL FOR BIG CHANGE Are public-private partnerships the answer to get projects with big societal benefits done where traditional efforts have fallen short?

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ESG INVESTING 2.0 Darden experts dissect environmental, social and governance (ESG) focused investing and recommend a new strategy for greater impact.

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DA R D E N R E P O R T

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HOT TECH HYPE CHECK AI, blockchain, VR — this issue’s Ideas to Action spotlight measures what’s real and what’s hype with hot tech.

DARDEN REPORT

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WINTER 2024

DEPARTMENTS ON GROUNDS

Darden Report is published twice a year with private donations to the University of Virginia Darden School Foundation.

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© 2024 Darden School Foundation Winter 2024, Volume 51, No. 1

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School News Gift Announcement Meet the Class Career Outcomes Faculty News Faculty Profile

University of Virginia Darden School of Business Office of Communication & Marketing P. O. Box 7225 Charlottesville, Virginia 22906-7225 USA communication@darden.virginia.edu

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Scott C. Beardsley Dean and Charles C. Abbott Professor of Business Administration Robert Weiler President, Darden School Foundation

ALUMNI VOICES

Juliet K. Daum (TEP ’22) Chief Marketing and Communications Officer

EDITOR Jay Hodgkins ART DIRECTION & DESIGN Hyphen WRITERS Michael Blanding John Borgquist Dave Hendrick Molly Mitchell Sally Parker Tom van der Voort CLASS NOTES EDITOR Egidijus Paurys PHOTOGRAPHY Ali Johnson Sam Levitan Jack Looney Stephanie Gross Andrew Shurtleff Susan Wormington ILLUSTRATION Janis Andzans Blake Cale Hyphen

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34 82 92

Susan Sobbott (MBA ’90) John Jordan (MBA ’03) Will Payne (EMBA ’10)

“INTEGRITY, CURIOSITY, GENEROSITY, COMMITMENT, RESILIENCE AND ENTHUSIASTIC COLLABORATION — BUILDING SOMETHING GREAT IS A Susan Sobbott (MBA ’90) TEAM EFFORT.” CLASS NOTES

37 37 94 96

Class Notes Abbott Award Nominations Darden Leadership Boards In Memoriam

Go to www.news.darden.virginia.edu for all the latest school news and updates.

WINTER 2024

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ON GROUNDS

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SCHOOL NEWS

$505 MILLION IN TOTAL IMPACT: ALUMNI LIFT CAPITAL CAMPAIGN TO NEW HEIGHTS Faculty Forward: A New Phase for the Powered by Purpose Campaign

WITH NE W COMMITMENTS for the 2023 fiscal

year totaling $33.1 million, Darden alumni and supporters helped advance the School’s Powered by Purpose campaign past its first milestone two years ahead of schedule.

“

Our alumni’s exceptional generosity demonstrates their deep belief in our mission. Their support significantly amplifies our ability to inspire responsible leaders and enrich the transformational learning experiences for which Darden is known.”

The campaign’s total impact, including matching funds from UVA and gifts held outside of Darden for the School’s exclusive benefit, reached $505 million as of 30 June 2023. An impressive 70 percent of Darden alumni have participated in the Powered by Purpose campaign.

$406M

Raised as of 30 June 2023

$61M

UVA Bicentennial Match Amount

$38M

Funds Held Outside Darden

— D EAN SCOTT BEARDSLEY

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DA R D E N R E P O R T

$505M TOTAL IMPACT

WITH THE COMPLETION of the first milestone of the Powered by Purpose campaign, the second milestone — Faculty Forward, launched in October — will continue through the conclusion of the campaign in June 2025 and beyond.

Faculty Forward will support four faculty-related priorities:

1

ire, retain and develop H the next generation of star professors.

2

Preserve and strengthen Darden’s transformational learning experience.

3

Grow Darden’s infrastructure for thought leadership.

4

I nvest in and promote ideas that change the world.

ON GROUNDS

Darden Leadership Updates

PROFESSOR JEANNE LIEDTKA on

31 December completed her tenure as interim dean of Darden, a role in which she served for six months while Dean Scott Beardsley completed a sabbatical leave to pursue graduate research and coursework at Oxford University’s Uehiro Centre for Practical Ethics with the faculty of philosophy at Pembroke College.

Professor Carolyn Miles (MBA ’88) completed her term as interim president of the Darden School Foundation in August, returning to her faculty position as John Alden Purinton Jr. Professor of Practice and senior adviser to the dean.

The Darden School Foundation Board of Trustees announced the appointment of Robert Weiler as the new president of the Foundation. A UVA graduate with an MBA from UCLA’s Anderson School of Management, Weiler brings extensive business school and industry experience to his new role. He comes to the Darden School Foundation after 16 years at the Anderson School, serving most recently as the associate dean of the Full-Time MBA program for a decade.

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SCHOOL NEWS

The new bequest from David M. LaCross (MBA ’78) and Kathleen O. LaCross is a transformative investment to position Darden — and UVA as a whole — as a trailblazer in research, teaching and deployment of artificial intelligence and other innovative tech applications in the business landscape.

DARDEN RECEIVES LARGEST GIFT IN SCHOOL HISTORY

D

uring an evening reception at which the botanical gardens adjacent to The Forum Hotel Kimpton on Darden Grounds in Charlottesville were officially named the LaCross Botanical Gardens, Dean Scott Beardsley made a momentous announcement. David M. LaCross (MBA ’78) and his wife, Kathleen O. LaCross, for whom the gardens were named, updated a prior gift of $44 million the LaCross family made to Darden in October 2022. With this update, the LaCross gift to the Darden School is well over $100 million — the largest in the School’s history. The gift is among the Top 10 to any business school and puts the LaCross family among the Top 5 donors to the University of Virginia Honor the Future campaign.

The new bequest is a transformative investment to position Darden — and UVA as a whole — as a trailblazer in research, teaching and deployment of artificial intelligence (AI) and other innovative tech applications in the business landscape. The gift will fund research and instruction in AI, its ethical implications for management, and the challenges and opportunities AI presents for business, society and human well-being. Darden’s Artificial Intelligence Initiative was launched by the LaCross family’s initial $6.5 million bequest in 2022 and has powered early faculty work in the field.

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ON GROUNDS

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SCHOOL NEWS

DARDEN WELCOMES STUDENTS ACROSS 5 PROGRAMS Darden welcomed roughly 550 First Year MBA and seven Ph.D. students to Grounds in Charlottesville with an “all-Darden” event, including members of the Full-Time MBA, Executive MBA and Part-Time MBA — held for the first time at The Forum Hotel. The Full-Time MBA and Executive MBA students will be part of the Class of 2025, while Part-Time MBA and Ph.D. students will earn their degrees at different paces.

MEET THE MBAS

BLOOMBERG BUSINESSWEEK ranked

Darden’s Full-Time MBA program No. 3 in the United States in its new Best B-Schools 2023–24 ranking. The ranking is the highest the publication has ever given the School and up six places from the prior year. Darden remains the No. 1 ranked business school among public universities.

The dramatic rise in rankings was driven by the School’s large gains in three of the subcategories that contribute to the overall score.

Darden rose to No. 4 in compensation (up six places from No. 10), No. 4 in learning (up six places from No. 10) and No. 11 in networking (up 11 places from No. 22).

According to the publication, the $175,000 median starting salary for the School’s Full-Time MBA Class of 2023 graduates “tied with Stanford, Wharton, Booth, Columbia, Dartmouth and Harvard for the highest.”

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DA R D E N R E P O R T

123

71

Full-Time MBA students

Executive MBA students

Part-Time MBA students

36%

35%

15%

International citizens from 38 countries

Women

U.S. minority students

19%

18%

710

First-generation college students

Served in the military

Average GMAT

MEET THE MSBAS

Darden also welcomed the Master of Science in business analytics (MSBA) Class of 2024 in August. The MSBA is presented jointly by Darden and the UVA McIntire School of Commerce.

64

Students

31%

Women

20%

U.S. minority students

20%

Hold advanced degrees

8

Years average work experience

IL LUS T R AT ION BY H Y PHEN

Darden Rises to HighestEver No. 3 in Latest Bloomberg Businessweek Ranking

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ON GROUNDS

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SCHOOL NEWS

DARDEN BREAKS THE SALARY RECORD AG A

I N!

The Full-Time MBA Class of 2023 secured the highest starting salary in school history for the fifth year in a row, according to Darden’s Career Center. That’s just one of many employment highlights across Darden’s degree programs.

Full-Time MBA Class of 2023

Executive MBA Class of 2023

Highest

mean ($167,899) and median ($175,000) base salaries in school history

40% earned a promotion

89%

employed at graduation

18.4% increase in average salary by graduation

96% reported job offers by three months after graduation

14% reported a new employer

Master of Science in Business Analytics Class of 2022 43% reported a new job title, employer or employment location 15% increase in average salary by graduation

95%

employed at three months after graduation

46% of Full-Time MBA graduates accepted a role in the consulting industry, followed by 26% entering finance and 10.5% entering the technology industry.

Top hiring companies included:

Amazon

JPMorgan Chase

Bank of America

Microsoft

Boston Consulting Group

Wells Fargo

McKinsey

Bain

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ON GROUNDS

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FA C U LT Y

NEWS

THOMASHUNT TAKES HELM OF FULL-TIME MBA PROGRAM

Two years after returning to Darden from her role as head of global diversity and belonging at Airbnb, Professor Melissa Thomas-Hunt has taken on the role of senior associate dean for Darden’s Full-Time MBA program.

The role allows Thomas-Hunt to build on her significant leadership experience at Darden and at other institutions, bringing deep knowledge of Darden and the Full-Time MBA from prior service at the School as senior associate dean and chief global diversity officer, teaching in the Full-Time and Executive MBA programs, and serving as area head for Leadership & Organizational Behavior. Since returning to Darden, Thomas-Hunt has led the School’s initiative on connection and belonging and led the residential housing task force of the Darden Grounds Master Plan. She succeeds Professor Thomas Steenburgh, who was named dean of Vanderbilt University’s Owen Graduate School of Management last summer.

Two other senior leaders agreed to serve additional terms in their roles.

Professor Yael Grushka-Cockayne will serve another term as senior associate dean for professional degree programs and will chair the Programs Strategy Committee. Grushka-Cockayne will also help lead the next milestone of the Powered

by Purpose campaign, Faculty Forward. Professor Sankaran “Venkat” Venkataraman will serve an additional term as senior associate dean for faculty and research.

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DA R D E N R E P O R T

“ Additionally, Senior Assistant Dean for Global Diversity, Equity and Inclusion Christie Julien will serve as interim leader of the Office of Global Diversity, Equity and Inclusion at Darden while Professor Martin Davidson serves as interim executive director of UVA’s Contemplative Sciences Center for the 2023–24 academic year. Senior Associate Dean for Student Engagement Marc Johnson has also taken on the role of chief strategy and innovation officer after Professor Mike Lenox concluded his second term as chief strategy officer.

In addition to her excellent teaching, research and thought leadership, Melissa is a practitioner who brings true leadership to Darden’s effort to create inclusive excellence and a sense of belonging to everyone at the School.”

— DEAN SCOTT BEARDSLEY

ON GROUNDS

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FA C U LT Y N E W S

FROM HEALTH CARE MARKETING TO SUPPLY CHAIN, DARDEN LAUNCHES 10 NEW COURSES Darden professors planned to debut 10 new courses in the 2023–24 academic year. New courses consider a variety of topics, including supply chain issues, the media industry and data-driven consumer insights, among other topics. The new courses include:

Faculty Awards and Accolades LUCA CIAN was named

associate editor for the Journal of Marketing Research.

MIKE LENOX was appointed

a senior faculty fellow at UVA’s Miller Center and will serve as academic director for the Democracy and Capitalism Initiative.

PEDRO MATOS and his co-au-

thors received a Geneva Institute for Wealth Management grant.

LAURA MORGAN ROBERTS

was ranked in the Thinkers50 Top 50 for management thinking.

“Business and Transformation in the Southern Region of the US” Taught by Professor Greg Fairchild Students will explore a unique economic and social context within the United States and understand the ways that business plays a role in driving forward progress.

“Consumer Insights in a Data-Driven World” Taught by Professor Zhihao Zhang Students will learn how to build an analytical mindset for understanding consumers through data, going from the initial formulation of business questions to the translation from data-driven insights to effective decision-making.

DWAIPAYAN ROY was appointed as the inaugural vice president of the INFORMS PRIDE Forum, a community for LGBTQ+-identifying INFORMS members and their allies.

SARAS SARASVATHY deliv-

ered the Schumpeter Innovation in Enterprise Lecture at the European Union’s SME Week.

IL LUS T R AT IONS BY H Y PHEN

KIMBERLY WHITLER and her

co-authors received the 2023 Sheth Foundation/Journal of Marketing Award for Long Term Impact for the article, “When and How Board Members With Marketing Experience Facilitate Firm Growth” published in the Journal of Marketing.

“Disruptive Strategy: Building and Sustaining a Successful Enterprise” Taught by Professor Rory McDonald The course introduces a series of theoretical frameworks for navigating critical moments in enterprise growth and will help students interested in managing, advising or investing in any of a variety of organizations.

“Entrepreneurship Through Acquisition” Taught by Professor Les Alexander The course introduces students to searching for a company, valuing a small business, structuring a deal, negotiating, completing due diligence, obtaining deal financing and closing the transaction.

“Health Care Marketing” Taught by Marc Ruggiano Students will examine similarities and differences between marketing in health care and in other sectors, plus learn to apply traditional marketing strategy and tactics in ways that embrace differences between health care and other sectors.

“Marketing and Society” Taught by Professor Serena Hagerty Students will explore the role that managers and consumers can play in leveraging marketing resources to advance a good cause, create a socially desirable behavioral change or to enhance their own well-being.

“Media & Entertainment Business” Taught by Professor Anthony Palomba Students will increase their media literacy, deepen their knowledge about the media and entertainment industries, gain critical analytical skills specific to analyzing media data, and design media and business strategies.

“Strategic Sourcing” Taught by Professor Dwaipayan Roy The course explores how sourcing can help organizations improve performance on multiple dimensions and differentiate themselves from their competitors.

“User Experience” Taught by Professor Tatiana Batova The course deepens students’ ability to research the needs, preferences and contexts of a variety of audiences.

“Writing for Impact & Influence” Taught by Steve Soltis Students will be immersed in intimate, hands-on writing instruction focused on contemporary communication channels and the tools most widely used in today’s workplace.

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ON GROUNDS

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FA C U LT Y N E W S

6 NEW PROFESSORS JOIN DARDEN FACULTY Darden welcomed six new professors ahead of the 2023–24 academic year, who will teach and do research in the areas of Quantitative Analysis; Technology and Operations Management; Strategy, Ethics & Entrepreneurship; Finance; and Accounting.

SAEED ALIZAMIR Saeed Alizamir joins the Quantitative Analysis area as an associate professor. His research interests are focused on the area of social responsibility and public sector operations. Most recently an associate professor at the Yale School of Management, he earned his Ph.D. from Duke University in business administration.

PNINA FELDMAN Pnina Feldman joins as a visiting associate professor in the Technology and Operations Management area. Her research focuses on how digital technologies affect operations strategy decisions and the policy implications of these decisions. Most recently at Boston University, she earned her Ph.D. in operations and information management from the Wharton School.

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DA R D E N R E P O R T

ON GROUNDS

CHRISTOPH HERPFER Christoph Herpfer joins the Finance area as an assistant professor after previously teaching at Emory University’s Goizueta Business School. Building on his research in health care finance, he collaborates with industry partners on applying big data and advanced statistical tools. He earned his Ph.D. in finance from École Polytechnique Fédérale Lausanne and Swiss Finance Institute.

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FA C U LT Y N E W S

It’s not just about great teaching.

It’s about teaching great things. Our faculty consistently deliver the best educational experience, intertwining leadingedge research and practical ideas.”

— P ROFESSOR SANKARAN “VENKAT” VENKATARAMAN, SENIOR ASSOCIATE DEAN FOR FACULTY AND RESEARCH

SIMMI MOOKERJEE Simmi Mookerjee joins the Accounting area as an assistant professor. Mookerjee’s research interests include corporate social responsibility, political economy, human capital disclosure, information intermediaries and voluntary disclosure. She recently earned her Ph.D. in accounting from the University of Washington.

Mookerjee worked as an accountant prior to earning her Ph.D.

RORY MCDONALD

CHRIS PARKER

Rory McDonald joins the Strategy, Ethics & Entrepreneurship area as a visiting associate professor. Most recently an associate professor at Harvard Business School, McDonald studies how firms successfully navigate new markets. He received his Ph.D. in management science and engineering, his master’s in sociology and his MBA from Stanford University.

Chris Parker joins the Technology and Operations Management area as a visiting associate professor. Most recently an associate professor at American University, Parker’s research focuses on how IT-enabled applications are changing consumer behavior and how firms interact with their customers. He received his Ph.D. from the London Business School.

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ON GROUNDS

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FA C U LT Y N E W S

FA C U LT Y P RO F I L E

PROFESSOR TATIANA BATOVA UNCOVERING CLUES TO CROSS-CULTURAL COMMUNICATION

BY TOM VAN DER VOORT

T

Tatiana Batova is an associate professor of business administration in the Communication area. She teaches the “Leadership Communication” core course and the “Storytelling With Data” elective in the Full-Time MBA program.

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DA R D E N R E P O R T

atiana Batova was a young graduate student when she submitted her first research paper to the journal Technical Communication in 2010. Its success was immediate. Instead of simply being accepted for publication, her examination of legal, linguistic and cultural issues in medical communications won the Frank R. Smith Outstanding Journal Article Award from the Society for Technical Communication, establishing her reputation as an outstanding researcher in her field.

As a professor at Arizona State University, Batova continued to thrive in her ongoing examination of language and technology in cross-cultural communications. Numerous awards followed, and she received tenure in 2019.

But something was missing.

“I started, way back in the day, wanting to be a teacher,” Batova says. “I really wanted to be in a place that values teaching more. I didn’t want to leave my research behind, but I wanted to have more interaction with students. Darden seemed to combine both. You can still do research, but teaching is elevated.”

The move to Charlottesville to join the faculty in the Communication area, however, wasn’t easy.

“I was one of the last two people to be offered jobs before the pandemic hit,” Batova remembers, and she had to remain in Arizona for an extra year with her “mind just kind of split between the two schools.” When she finally did start at Darden, she saw students — as well as faculty and staff colleagues — only on Zoom or in masks.

As the School emerged from the restrictions of the

ON GROUNDS

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FA C U LT Y N E W S

“The way we talk about AI in the U.S. is very different from the way people talk about AI in Germany. The frame of reference is different. The regulations are different. The mindset is different.

There are two completely different discourses.”

pandemic, her vision of research and teaching complementing each other came to fruition. Finally seeing student faces clearly, she relied on her background in pedagogy and educational psychology to master teaching with the case method.

She delivered core instruction in leadership communication and developed dynamic electives to help Darden students understand how to factor in linguistic and cultural factors into e-commerce, digital marketing, storytelling with data, and making digital products intuitive and desirable with user experience research. “At Darden, teaching feeds into research and research feeds back into teaching,” she says.

The strength of Batova’s work comes from her ability to discover how unexamined assumptions and practices can undermine persuasion, effective communication and technology design in a wide variety of situations. Context, especially linguistic and cultural context, is critically important. In an increasingly interconnected world, understanding these factors is a non-negotiable skill for business leaders.

“A lot of what you translate doesn’t resonate with people because the concepts are different, and the frames of reference are different,” Batova says. “The way we talk about AI in the U.S., for example, is very different from the way people talk about AI in Germany. The frame of reference is different.

The regulations are different. The mindset is different. There are two completely different discourses.”

That’s important, for one, because how we talk about technology can influence whether we want to use it or not, as well as our work motivation, according to Batova.

To better understand the “rhetoric of technology,” she combines quantitative user experience research with

BATOVA’S RESEARCH AGENDA AND HER LOVE OF TEACHING ARE INSEPARABLE, DRIVING AN EXPLORATION OF HOW HUMANS COMMUNICATE USING AN EVER-EVOLVING SET OF TOOLS IN A RAPIDLY CHANGING WORLD.

exploratory qualitative methods.

In her elective on storytelling with data, her research plays a vital role in the classroom, making students partners in examining the implications of her findings. “I’ve been working on a project on cross-cultural data visualization because nobody has empirically tested a lot of assumptions,” she says. In the United States, for instance, users tend to look at the title of a chart first, which frames their understanding of the data. But in India, “everybody went straight to the chart and kind of wanted to draw their own conclusion. The title was secondary. So what does that mean for a data visualization or a presentation being persuasive?”

As she fields new studies in the European Union and China, she finds that “students want to talk about this. They’re asking about it. It’s really exciting to bring new research back into the classroom so we can discuss it.”

For Batova, her research agenda and her love of teaching are inseparable, driving an exploration of how humans communicate using an ever-evolving set of tools in a rapidly changing world. Darden allows her to put both of those pieces of the puzzle together in a way that helps answer the key questions and make a practical impact.

“The great thing about Darden is you can chart your own course.”

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DA R D E N R E P O R T

New Ways of Seeing

Darden’s research centers and initiatives build a community of experts to advance knowledge, offer student experiences, and convene forums with academics and executives to advance business practice. In this issue of The Darden Report, we offer a “research center takeover” featuring three in-depth pieces spotlighting how Darden research is making an impact on critical issues to business practice and societal well-being.

ILLUSTRATIONS BY BLAKE CALE

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BATTEN INSTITUTE FOR ENTREPRENEURSHIP, INNOVATION AND TECHNOLOGY

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INSTITUTE FOR BUSINESS IN SOCIETY

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RICHARD A. MAYO CENTER FOR ASSET MANAGEMENT

BATTEN INSTITUTE FOR ENTREPRENEURSHIP, INNOVATION AND TECHNOLOGY

RESEARCH CENTERS OF EXCELLENCE

A Dream Worth Having Why the Middle Class of Business Deserves More Attention From Aspiring Entrepreneurs

BY GOSIA GLINSKA

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DA R D E N R E P O R T

ilicon Valley exhorts entrepreneurs to supersize their dreams: Have a crackerjack idea with disruptive potential, raise lots of funding from investors, scale up rapidly and hit a billion-dollar valuation.

Awash in stories of “unicorns” and “gazelles” — the rare high-tech, high-growth firms that capture the headlines — many founders chase the dream of launching the next Stripe or Instacart.

“But is that the only dream worth having?” asks Darden Professor Saras Sarasvathy, a leading expert on the cognitive basis for high-performance entrepreneurship and the 2022 winner of the Global Award for Entrepreneurship Research from the Swedish Entrepreneurship Forum.

“In a business school,” says Sarasvathy, “we shouldn’t just be teaching high-growth, high-technology entrepreneurship. We should be teaching students how to build a middle class of business — companies that foster robust communities, create value for stakeholders, create jobs and last long enough to give an entrepreneur a good life.”

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ALUMNI LIGHTING THE WAY Sarasvathy is quick to point out that many Darden alumni have built or are building such companies.

Take Manoj Sinha (MBA ’09), c0-founder and CEO of Husk Power Systems. Sinha launched Husk in 2008 to solve an intractable problem afflicting three billion people around the world: lack of access to reliable and affordable power. Today, Husk provides electricity to 50,000 households, small businesses and factories in India, Nigeria and Tanzania through renewable energy-powered, decentralized minigrids.

But Husk delivers more than electricity to remote areas. Sinha — recently named to Time magazine’s list of the 100 most influential climate leaders in business — estimates that his company is responsible for creating around 20,000 jobs.

“When we install minigrids in a community,” says Sinha, “we look at what might be brought in as a set of entrepreneurial activities that will help people use electricity more productively and generate new income sources. That’s how our business model became successful.”

Another notable middle-class venture started by Darden alumni is 501 Auctions.

The company, co-founded in 2011 by Jon Carrier (MBA ’12) and Teddy Jones (MBA ’12), developed a fundraising platform for nonprofit organizations, changing the way charity events are run.

“501 Auctions is a for-profit business that helped fund the growth of nonprofits,” says Sarasvathy. “It raised more than half a billion dollars in charity contributions. It’s a business that creates value in multiple ways.”

Haiama Beauty, a business founded by Allison Shimamoto (MBA ’19), is poised to become the next Darden-founded middle-class company, per Sarasvathy. As she puts it, “Allison is truly solving a problem — offering toxin-free products for Type 4 curly hair.”

Shimamoto uses ethically sourced, plant-based ingredients from South America, choosing to partner with female suppliers who employ workers from local villages.

None of these Darden founders started by chasing venture capital and unicorn status, notes Sarasvathy. Instead, they focused on tackling real problems and on building not just great companies but also a better world.

DEFINING THE MIDDLE CLASS OF BUSINESS

“In a business school, we shouldn’t just be teaching high-growth, high-technology entrepreneurship. We should be teaching students how to build a middle class of business — companies that foster robust communities, create value, create jobs and last long enough to give an entrepreneur a good life.”

— P ROFESSOR SARAS SARASVATHY, 2022 WINNER OF THE GLOBAL AWARD FOR ENTREPRENEURSHIP RESEARCH FROM THE SWEDISH ENTREPRENEURSHIP FORUM

DEFI NED: “MIDDLE CLASS OF BUSINESS”

VENTURES THAT HAVE BETWEEN FIVE AND 300 EMPLOYEES AND PROFITABLY SURVIVE FOR AT

Sarasvathy has coined the term “middle class 18

DA R D E N R E P O R T

of business” to describe companies that grow and endure over time, but don’t grow very large in size.

In her paper, “The Middle Class of Business: Endurance as a Dependent Variable in Entrepreneurship,” published in Entrepreneurship Theory and Practice, Sarasvathy defines the category as ventures that have between five and 300 employees and profitably survive for at least 16 years.

Even though firms that endure for 16 years or more have slower growth than younger firms, they actually employ the most people, studies show. “If we aim to spur job creation and economic development,” says Sarasvathy, “endurance over time is a better predictor than size. That’s one reason we should foster the development of a middle class of business.”

The question is how.

LEAST 16 YEARS.

TEACHING ENTREPRENEURSHIP LIKE WE TEACH SCIENCE Sarasvathy, along with Professor Sankaran “Venkat” Venkataraman, has long believed in teaching entrepreneurship the way we teach science — to everyone who has access to education. As she puts it, “Today, we teach the scientific method not only to potential scientists in professional schools but to everyone, starting at an early age, as an essential mindset and skill.”

But science wasn’t always considered teachable. Before Francis Bacon started to spell out the key elements of the scientific method, science was the rarefied domain of those who had wealth, time and a spark of divine revelation.

According to Sarasvathy, democratizing this knowledge so that it was widely accessible spurred technological progress, which increased productivity. “For the first time in history, a large swath of society was able to earn enough money to escape poverty,” says Sarasvathy. “This led to the emergence of the middle class, defined by income.”

In her “The Middle Class of Business” paper, Sarasvathy draws a historical parallel.

She argues that — just like the introduction of science education to all fostered the rise of the middle class — the introduction of entrepreneurship education to all would spur the rise of a middle class of businesses.

“When we start teaching entrepreneurship to everyone as a necessary skill,” argues Sarasvathy, “people will be more entrepreneurial, not only in starting companies but also in solving problems in their lives and in

“When we install minigrids in a com­munity, we look at what might be brought in as a set of entrepreneurial activities that will help people use electricity more productively and generate new income sources. That’s how our business model be­came successful.”

— M ANOJ SINHA (MBA ’09) CO-FOUNDER AND CEO, HUSK POWER SYSTEMS

DEFINED: “EFFECTUATION”

THE UNIQUE LOGIC EXPERT ENTREPRENEURS USE TO BUILD NEW VENTURES. IT IS USED BY THOUSANDS OF ENTREPRENEURS GLOBALLY, INCLUDING VIRGIN FOUNDER RICHARD BRANSON, LENDINGTREE FOUNDER DOUG LEBDA (EMBA ’14) AND FUBU FOUNDER DAYMOND JOHN.

darden.virginia.edu/ effectuation

the world. People won’t be necessarily starting more companies; they’ll be building better ones that endure for longer than average periods of time and create more value.”

DEVELOPING THE ENTREPRENEURIAL METHOD But can entrepreneurship be taught? If you ask Sarasvathy, who’s been teaching it at Darden since 2004, the answer is a resounding yes.

In fact, Sarasvathy pioneered the framing of entrepreneurship as a method à la the scientific method in her groundbreaking book, Effectuation: Elements of Entrepreneurial Expertise. She further developed the concept in “Entrepreneurship as Method: Open Questions for an Entrepreneurial Future,” a 2011 article co-authored with Venkataraman and published in Entrepreneurship Theory and Practice.

The cornerstone of the entrepreneurial method is effectuation — the unique logic expert entrepreneurs use to build new ventures. Sarasvathy discovered this logic, which she distilled into five teachable principles, in the late 1990s as a result of in-depth studies of how expert entrepreneurs think, act and make decisions in the initial stages of venture creation.

Effectuation is rooted in nonpredictive control. “Instead of trying to predict the future in order to control it, which is thinking causally,” says Sarasvathy, “expert entrepreneurs know from experience that if they control certain things in the present, they can create the future. That is thinking effectually.”

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“Most startups are not VC-backed, highgrowth ventures. What if you built a company that lasts 15, 30 years, and pays double what you’d earn as an MBA? Let’s say you earn $500,000 a year as a founder for the next 30 years, and at the end you sell your company for anywhere between $30 and $60 million.

Isn’t this a dream worth having?”

— PROFESSOR SARAS SARASVATHY

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Batten Institute Support for Entrepreneurship Research This article was produced by the Batten Institute for Entrepreneurship, Innovation and Technology, of which Professor Sarasvathy is an academic director.

Effectual entrepreneurs start with immediately available means — who they are, what they know and whom they know — to come up with doable venture ideas. They control the downside by investing only what they can afford to lose. They collaborate with self-selecting stakeholders who are willing to commit resources to their fledgling ventures.

“The goal is to co-create rather than predict the future,” says Sarasvathy, “often with surprising results.”

Shimamoto, for one, created an outcome she didn’t expect. The hair cream she developed was intended for curly hair. She was surprised to find that customers with all kinds of hair were buying her product.

As Sarasvathy puts it, “Allison developed this niche product, trying to solve a problem for individuals with Type 4 hair. It turns out that her solution is applicable to a much wider group of people.”

PURSUING A WORTHY DREAM The Silicon Valley model of entrepreneurship has captured the imagination of the public, and many founders want to emulate it, despite the fact that it reflects only a sliver of startups.

“Most startups are not VC-backed, high-growth ventures,” says Sarasvathy, who encourages her students to build enduring businesses instead. She asks, “What if you built a company that lasts 15, 30 years, and pays double what you’d earn as an MBA? Let’s say you earn $500,000 a year as a founder for the next 30 years, and at the end you sell your company for anywhere between 30 and 60 million dollars. Isn’t this a dream worth having?”

That dream worked out well for Carrier and Jones, who grew 501 Auctions to more than a hundred employees without seeking outside investments.

When they launched their venture as Darden students, Carrier and Jones didn’t expect that five years later they’d be bombarded with offers from interested buyers. They ended up selling because they could do so on their own terms.

While 501 Auctions continues to create value for nonprofits under a different name, its sale gave Carrier the freedom to choose what’s worth pursuing.

“After the sale,” he says, “I had a lot of personal flexibility for what came next in my career. I was a successful entrepreneur, and I had gained a lot of technology and startup skills with 501 Auctions.”

Unsurprisingly, Carrier decided to use those skills to build another venture, REI Hub. He enjoys the freedom of running his own business. “It’s challenging and rewarding,” he says. “I can’t imagine doing anything else.”

The Batten Institute supports Sarasvathy’s research and her and other faculty’s curricular offerings in entrepreneurship — including courses such as “Effectual Entrepreneurship,” “Starting New Ventures” and “Venture Velocity” — through its Batten Faculty Fellows program. The institute also helps disseminate Sarasvathy’s influential research on the cognitive basis for high-performance entrepreneurship through the Effectual Thinking & Action Initiative.

Founded in 1999, the Batten Institute seeks to challenge Darden students to fulfill their entrepreneurial potential through transformational learning experiences and groundbreaking research in its focus areas of startup creation, VC, entrepreneurship through acquisition, technology and corporate innovation.

To learn about the institute, please visit batten.institute.

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INSTITUTE FOR BUSINESS IN SOCIETY

RESEARCH CENTERS OF EXCELLENCE

A New Model for Big Change Public-Private Partnerships Are Changing How the World Tackles Societal Challenges

BY SALLY PARKER

MORE THAN 12 MILLION people around the world, including 300,000 in Ethiopia, live with corneal blindness, an entirely avoidable condition if access to quality care is available.

It’s a devastating disease that impacts both children and adults in low- to middle-income communities.

After coming together to address the problem, four partners — the Eye Bank of Ethiopia, Ethiopia Ministry of Health, global nonprofit eye bank SightLife and the Himalayan Cataract Project — completed thousands of corneal transplants. Today, the Eye Bank of Ethiopia Elimination of Corneal Blindness Partnership (EBE) is a model for public-private development in the fast-growing sub-Saharan region of Africa. The aim

is to ensure a steady supply of tissue and affordable eye care, and to integrate corneal health services into primary care.

Humanity’s most basic needs — for food, shelter, education, health — are not being met in many parts of the world. The reasons are many and complex. The wheels are falling off old development models, where the goals of different sectors are often at odds with one another.

EBE is a perfect example of a growing effort to collaborate across sectors to overcome financing and logistics barriers. How can more public-private partnerships, known as P3s, evolve so complicated projects for the public good can get off the ground?

“Multi-sector partnerships are increasingly

used by companies and governments to distribute and manage risk. There are financial, political and technical reasons they would choose to partner with each other and with civil society institutions to get social, environmental and other kinds of projects done,” said Joey Burton, executive director of Darden’s Institute for Business in Society (IBiS).

To shine a light on promising P3s, IBiS launched the P3 Impact Award program 10 years ago with social impact nonprofit Concordia and the U.S. Department of State’s Office of Global Partnerships. EBE won the award in 2020. The program’s aim: to better understand cross-sector partnership trends and develop best practices for solving environmental and social problems around the world.

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SPURRING PROGRESS ON SUSTAINABLE DEVELOPMENT GOALS

DEFI NED:

expert. “Otherwise, we’re just passing the problems around.”

“P3”

The P3 program has yielded critical data on the structure, design, function and successes of the P3 model in global development projects.

Organizers recently released a report on key learnings from The P3 Impact Award’s first decade — which spanned the launch of the United Nations’ sustainable development goals and a crippling global pandemic.

In 2015, the U.N. set 17 goals to achieve in 15 years as part of its 2030 Agenda for Sustainable Development. Now at the midpoint, progress on the development goals has stalled and even lost ground in some areas due to the pandemic and geopolitical instability.

Professor Vidya Mani, faculty lead on the P3 award, is exploring ways the program’s data could help fill in gaps where development goals aren’t progressing as they should. Part of the holdup is that projects often measure outcomes and success differently: Two projects may share a development goal of decent work, for example, but they may not measure that outcome in the same way. Mani aims to create a set of best practices for collecting and analyzing outcome data at the ground level — using the experiences of P3 participants as a starting point.

“This whole conversation gets lost very quickly, because you’ll find a lot of people saying a lot of things,” Mani said. “How do I know how you’re doing it and what is it accomplishing? Unless we have ways to measure, it’s like talking in inches and kilometers without knowing what the conversion is. We have this opportunity now to look back at 10 years of work and say, ‘What has worked, and what has not worked?’”

To that end, Mani also plans to standardize impact metrics for P3 projects that are seeking next-stage funding.

“We would find a way to measure and train people to start looking at outcomes that will enable them to go to that next stage,” she said.

A wealth of information lies in the successes current programs have had so far — lessons that can enrich future efforts, Mani said. “Were you able to scale? Did you have to leave the area? Did you do something else?

How did this program help? We will get a set of best practices and a rulebook for how to make the P3s work going forward.”

The ultimate goal is holistic stability. “Not just you, your organization or your people; it’s the whole chain that needs to be sustainable,” said Mani, a former Franklin Fellow at the U.S. State Department and a supply chain 24

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ON-GROUNDS EXPERTISE PUBLIC-PRIVATE PARTNERSHIP

DEFI NED: “P3 IMPACT AWARD” A PROGRAM LAUNCHED 10 YEARS AGO BY IBIS, CONCORDIA AND THE U.S. DEPARTMENT OF STATE’S OFFICE OF GLOBAL PARTNERSHIPS. THE PROGRAM’S AIM IS TO BETTER UNDERSTAND CROSS-SECTOR PARTNERSHIP TRENDS AND DEVELOP BEST PRACTICES FOR SOLVING ENVIRONMENTAL AND SOCIAL PROBLEMS AROUND THE WORLD.

“Unless we have ways to mea­sure, it’s like talking in inches and kilometers without knowing what the conversion is. We have this opportunity now to look back at 10 years of work and say, ‘What has worked, and what has not worked?’”

— PROFESSOR VIDYA MANI

Darden faculty members have diverse expertise reimagining the role of businesses in solving large societal problems.

The School’s faculty has formed a research group to focus on current public-private partnerships in the United States. They’re looking at how P3s might be adjusted so that local communities benefit from not only the projects themselves but the financial designs that underpin them. Students will use cases to define the characteristics that lead to the best outcomes.

“As a research center, IBiS is a conduit of information between the partnerships and the faculty. Data from the partnerships informs the faculty’s research, creating insights that are shared in the Darden classroom as well as the practicing world,” IBiS Director Maggie Morse said.

The P3 Impact Award has evolved into a prestigious event to share ideas back to practitioners. Each year, five finalists for the award are picked from among dozens of P3 partnership applicants in the annual competition and an overall winner is announced at the Concordia Annual Summit.

During the summit, finalists come together to explore ways their goals might interlock. Sharing their challenges and revealing proprietary data require a leap of faith, but summit participants know they are fighting intractable global challenges on many different fronts.

“The summit provides a stage for the partnerships to receive international recognition as well as an opportunity to learn and network with others who are all in this space,” said Morse.

The P3 program also provides resources for practitioners who are interested in leveraging the power of P3s, such as case studies on the finalists. The winning partnership receives a scholarship to attend a Darden Executive Education & Lifelong Learning program.

By sharing the learnings from the P3 program with students, alumni and practitioners, IBiS elevates the P3 model so more partnerships can reach impact and scale, Morse added.

“Business leaders agree they can’t operate in a silo. This is where the importance of idea sharing comes in. Through our relationships with alumni, and with the organizations they lead, we are able to support the School and faculty and, in turn, the practicing world.”

“Business leaders agree they can’t operate in a silo. This is where the importance of idea sharing comes in. Through our relationships with alumni, and with the organizations they lead, we are able to help the School and faculty and, in turn, the practicing world.”

— MAGGIE MORSE, DIRECTOR, IBIS

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RICHARD A. MAYO CENTER FOR ASSET MANAGEMENT

RESEARCH CENTERS OF EXCELLENCE

ESG INVESTING AT A CROSSROADS Darden Research Puts ESG Investing Under the Microscope and Finds a Path for More Impact

The past decade has seen a dramatic rise in ESG investing — industry shorthand for investments that take environmental, social and governance issues into account. In part, that’s a response to corporate scandals going back years, says Professor Pedro Matos, academic director of Darden’s Richard A. Mayo Center for Asset Management.

BY MICHAEL BLANDING

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“On the governance dimension, ESG investing goes all the way back to Enron and the fraud by executives and directors that existed there,” he says. “On the environment, it’s been industrial disasters like BP’s oil spill and Volkswagen’s Deiselgate emissions scandal. And on the social side, you have issues like Facebook’s data privacy breach, not to mention more recent controversies on how companies treated their workforces, customers and communities during the COVID-19 pandemic.”

Rising interest, says Matos, spurred investment managers — including the “big three” of BlackRock, State Street and Vanguard — to tout ESG-focused offerings, for both idealistic and practical reasons. On the one hand, “they have felt an increased responsibility for helping us live

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“Many companies are already voluntarily reporting on their websites or to investors, but we need to make sure everyone is following the same framework and that ESG data is reliable.

There are many shades of green, and we need to know everyone means the same green.”

— P ROFESSOR PEDRO MATOS

in a more sustainable society,” Matos says.

On the other, “these things can blow back” and harm investors when sustainability issues aren’t addressed.

How much are investor efforts making a difference in creating a more sustainable world, however?

Curious to see, Matos and his team at the Mayo Center conducted a series of studies looking at how ESG investing efforts translated into actual practices on ESG issues. They found that, overall, investors are much more likely to “talk the talk” on ESG issues rather than “walk the walk,” and even well-meaning efforts don’t necessarily bear fruit in real outcomes. If investors really want to make a difference, he concludes, they need to fundamentally rethink the way they implement ESG. LEGAL ISSUES, POLITICS, GREENWASHING HOLD ESG BACK Matos began by looking at the United Nations-sponsored Principles for Responsible Investment (PRI), a set of six guidelines launched in 2006 that have become the most influential roadmap for investment firms and 28

DA R D E N R E P O R T

asset owners seeking to drive ESG improvements. Institutional investors that sign onto the PRI make a pledge to report their annual progress. This meant Matos could examine investors including mutual funds, pension funds, sovereign wealth funds and insurance companies to examine the progress they reported and compare it to the actual makeup of their equity portfolios, as determined by scores from three leading ESG data providers.

He shared his findings in a paper published in the Review of Finance, co-written with Simon Glossner, a former Mayo Center post-doctoral researcher now at the Federal Reserve Board; Ranja Gibson-Brandon and Philipp Krueger of the University of Geneva; and Tom Steffen of Osmosis Investment Management.

The researchers found that, on average, PRI signatory investors reported integrating ESG into approximately two-thirds of the equity investment decisions they made, either by excluding companies with poor ESG practices, actively including best-in-class stocks, or creating theme-based funds around certain environmental or social issues. They found that European investors that signed onto PRI had better portfolio ESG scores versus

nonsignatories. Furthermore, the portfolios of PRI investors based in the United States scored no different than those of non-PRI institutions — and in some cases, scored worse.

How could that be? In part, says Matos, U.S.-based institutional investors are hamstrung by legal constraints that require that they follow fiduciary duty principles and prioritize risk-adjusted financial returns over environmental or social considerations. There has also been a backlash against ESG investing, including anti-ESG legislation proposed at state and federal levels. But he and his fellow researchers also found a fair amount of “greenwashing” by investment firms.

“A number of investment firms market themselves employing ESG principles, including their PRI membership, but then we find they do little to walk the walk,” Matos says.

“There’s a gap between what they say and what they do.”

CLEANING UP PORTFOLIOS, NOT THE PLANET Matos and his team identified a fundamental problem with ESG investing as it is practiced

DE F I N E D : “PRINCIPLES FOR RESPONSIBLE INVESTMENT (PRI)”

PRINCIPLE 1

We will incorporate ESG issues into investment analysis and decision-making processes.

PRINCIPLE 2

We will be active owners and incorporate ESG issues into our ownership policies and practices.

PRINCIPLE 3

We will seek appropriate disclosure on ESG issues by the entities in which we invest.

PRINCIPLE 4

We will promote acceptance and implementation of the Principles within the investment industry.

PRINCIPLE 5

We will work together to enhance our effectiveness in implementing the Principles.

PRINCIPLE 6

We will each report on our activities and progress towards implementing the Principles.

Learn more at www.unpri.org/ about-us/about-the-pri.

by many institutions: by choosing not to invest in stocks of corporations with poor ESG track records, they aren’t necessarily impacting company behaviors. In fact, the strategy might be counterproductive, Matos says, since it limits the influence an ESG-minded investor can have over a corporation.

“If the predominant investment strategy is to decarbonize your portfolio, then you’re just shifting the problem onto shareholders who may be less inclined or willing to engage,” Matos says. “You might be making your portfolio greener, but you aren’t helping to make the planet greener.”

In a new working paper, co-written with Glossner, Krueger and Mayo Center post-doc Vaska Atta-Darkua, the researchers found evidence that is, in fact, the case. The paper used data from the Carbon Disclosure Project (CDP), an international nonprofit launched in 2000, and the more recent Climate Action 100+, created in the wake of the 2015 Paris climate change agreement. Both initiatives represent ambitious efforts to help decarbonize the economy through corporate disclosure and investor engagement.

By matching corporate emissions with investor portfolios, the researchers found that institutional investors overall have been actively decarbonizing their portfolios over the last 15 years, and that investors that join the CDP decarbonize faster than those that don’t. However, they found no significant reduction in greenhouse gas emissions by the high-emitting companies, leading researchers to conclude that these investor portfolio reductions are due to divesting out of high-emitting companies and reweighting toward low-emitting companies, rather than engaging with companies to reduce their emissions.

The existing portfolio decarbonization strategy of divestment is not likely to be effective any time soon, Matos says. “If the CDP and Climate Action 100+ investors were the entirety of institutional money, they could potentially starve companies of capital, so brown companies could find it extremely costly to raise capital,” Matos says. “But we are not seeing that happening.”

A BETTER WAY FORWARD

“Portfolio divestment was a logical position for investors to take as they started to look at environmental considerations.

But what we’ve come to realize is that, if you choose to sell assets that are public securities, you are just selling them to someone else. So why should we think that would have much of an impact in the real world?”

— C ELIA DALLAS (MBA ’96) CAMBRIDGE ASSOCIATES

Creating a new ESG investing strategy that could meaningfully affect corporate sustainability will not be easy, Matos says. Such a strategy would have to start with creating better standards for disclosure and transparency, especially in the United States.

“Many companies are already voluntarily reporting on their websites or to investors, but we need to make sure everyone is following the same framework and that ESG data is reliable,” Matos says. “There are many shades of green, and we need to know everyone means the same green.”

The harder part of the equation is to figure out ways for institutional investors to actively engage with companies in their portfolio, pushing them toward better ESG practices, rather than just selling them to other investors who don’t care as much.

That idea resonates with Celia Dallas (MBA ’96), chief investment strategist and partner with the global investment consulting firm Cambridge Associates. “Portfolio divestment was a logical position for investors to take as they started to look at environmental considerations,” she says. “But what WINTER 2024

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we’ve come to realize is that, if you choose to sell assets that are public securities, you are just selling them to someone else. So why should we think that would have much of an impact in the real world?”

In September 2021, Cambridge Associates joined 11 other investment consulting firms in a new Net Zero Pledge, supporting its institutional clients in pushing them to improve their environmental impact, with the goal of reducing greenhouse gas emissions to net zero by 2050. Dallas concedes that such a goal is daunting — requiring collective action by investors to stand up for their convictions.

“Returns might improve if efforts are successful, and they might improve if you do nothing, but if the efforts are not successful, it creates a bad situation for everybody,” she says.

As a first step, Dallas says, Cambridge Associates has helped educate clients on the levers they can pull to pressure investment managers, who can in turn pressure company boards to reform their practices. Currently, she says, 8 percent of the assets under advisement have made the 2050 net-zero pledge, with another 8 percent making a different net-zero pledge.

While that’s only modest progress so far, she says, “if we had looked at this two years ago, that would have been zero.”

At Darden, students are working to create their own impact. Alex Hassan (Class of 2024) 30

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“We’re trying to identify risk and opportunities that aren’t immediately apparent when doing a purely fundamental analysis.

There are no explicit ESG-related restrictions, but we’re trying to really scrutinize companies on their ESG practices to figure out which ones to include.”

— A LEX HASSAN (CLASS OF 2024), SENIOR PORTFOLIO MANAGER OF THE $4 MILLION ROTUNDA FUND, ONE OF SIX FUNDS MANAGED BY SECOND YEAR STUDENTS THROUGH DARDEN CAPITAL MANAGEMENT

serves as senior portfolio manager for the Rotunda Fund, one of six investment portfolios managed by Second Years as part of Darden Capital Management. The Rotunda Fund specifically seeks higher returns through investing in companies with sound ESG practices.

The Rotunda Fund operates by seeking out stock of companies that are best in their industry in ESG measures, rather than excluding poor-performing companies. “We’re trying to identify risk and opportunities that aren’t immediately apparent when doing a purely fundamental analysis,” Hassan says. “There are no explicit ESG-related restrictions, but we’re trying to really scrutinize companies on their ESG practices to figure out which ones to include.”

With about $4 million under management, the fund isn’t likely to have a direct impact on company decisions, but he hopes it can have a multiplier effect by educating Darden students on the importance of ESG principles. The fund opens its meetings to outside students, and many First Years often attend to observe Hassan and the fund’s two other portfolio managers make decisions.

“A lot of students at Darden are going to leave to become leaders in the business world,” Hassan says. “By having this practical experience focused on ESG initiatives, they can go on to have real-world impact.”

“If the predominant investment strategy is to decarbon­ize your portfolio, then you’re just shifting the problem onto shareholders who may be less inclined or willing to engage. You might be making your portfolio greener, but you aren’t helping to make the planet greener.”

— PROFESSOR PEDRO MATOS

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MEASURING THE HYPE THE FUTURE OF AI, BLOCKCHAIN, VR AND THE METAVERSE

Insights from Dennie Kim and Tim Laseter Written by John Borgquist

Illustrations by Janis Andzans

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What place do AI, blockchain and the metaverse hold in the future of business? And where does one even start to answer such a massive, open question?

Darden Professors Dennie Kim and Tim Laseter have advice for forward-thinking business leaders navigating — and shaping — this future: Separate overinflated expectations from the business cases that will unlock real value.

The past is rife with examples of companies, products and ideas that became media darlings only to lose the public’s attention span or fail to gain widespread adoption. The well-known Gartner Hype Cycle details these phases of an innovation’s lifecycle: Publicity, excitement and failures that accompany the peak may all be followed by a trough of waning interest. But that doesn’t necessarily mean the overall technology is just a flash in the pan. Good execution of good ideas changes what the future looks like.

Looking back, even to the recent past, we can learn from examples of both overinflated expectations and cases of enlightened business practice that promise — or have already delivered — genuine value and mass adoption.

ARTIFICIAL INTELLIGENCE

An autonomous computer algorithm that can synthesize vast troves of data and complete complex tasks

A GitHub survey finds that over 90 percent of software developers use AI to speed coding tasks.

Overinflated?

In 1955, the term “artificial intelligence” is coined in a workshop proposal prepared

by Dartmouth, Harvard, IBM and Bell Labs. In November of 1998, the turn of phrase is featured on the cover of Forbes: “Artificial Intelligence Gets Real.”

Enlightened?

Presently, generative AI tools such as OpenAI’s ChatGPT and Google Bard are disrupting a host of industries. Meanwhile, a GitHub survey finds that over 90 percent of software developers use AI to speed coding tasks.

THE METAVERSE

A virtual-reality space in which users can interact with a computer-generated environment and other users AUGMENTED REALITY (AR) AND VIRTUAL REALITY (VR) HEADSETS

Technology that helps create a mixed reality, visually blending digital images into the user’s physical surroundings (AR) or presenting a simulation of an interactive environment (VR)

Overinflated?

In October 2021, Facebook founder Mark Zuckerberg announces plans to rename his company “Meta,” to highlight its plans to bring the metaverse to life.

Enlightened?

Overinflated?

In June 2012, Sergey Brin of Google introduces Google Glass “smart glasses,” displaying a live demo of the experience of device-wearing skydivers parachuting to the San Francisco Convention Center at its developer conference.

Roblox, a gaming platform created for players to both design and engage in virtual experiences, is founded in 2006. It now attracts over 200 million active monthly users, over half of whom are under 12 years old.

Enlightened?

BLOCKCHAIN

A decentralized ledger system that can log millions of transaction events in real time

In June 2023, Apple, renowned for creating consumer-focused hardware and software, announces a June 2024 release date of its “spatial computing” Vision Pro, a 3D headset controlled by users’ eyes and voice as well as hands.

Overinflated?

In January 2022, Paris Hilton hawks her non-fungible token (NFT) on The Tonight Show. In November of that year, cryptocurrency exchange FTX files for bankruptcy.

Enlightened?

As of July 2023, Ukraine had raised more than $200 million in aid through cryptocurrency contributions, and projects around the world are working to use blockchain and cryptocurrency to enable market participation and economic development in developing communities.

Professors Dennie Kim and Tim Laseter lead the Darden Executive Education & Lifelong Learning course Unlocking Value of AI, Blockchain and Digital Assets. For more information, visit www.darden.virginia.edu/ executive-education.

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ALUMNI

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PROFILE

20 QUESTIONS

SUSAN SOBBOTT (MBA ’90)

A Susan Sobbott (MBA ’90) currently serves as a mentor and adviser after 25 years in senior roles at American Express.

Business leaders can be gamechangers. Business is not only about the profits, but also about being a positive force.”

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purpose-driven leader, Susan Sobbott (MBA ’90) boasts over 25 years of experience at American Express, including president and general manager of global commercial services and president and general manager of American Express OPEN. Expanding her impact, she has become a sought-after adviser, board member and mentor across a diverse range of businesses. Sobbott’s influence extends to her roles as a board member for publicly traded WEX, venture-backed Bambee and the nonprofit ideas42, in addition to serving on the Darden School Foundation Board of Trustees. Customer insight and team culture take the spotlight in every endeavor she undertakes.

A trailblazer for women’s leadership, Sobbott navigated her own path to senior leadership roles while championing the cause for others. At American Express, she chaired the global Women’s Interests Network and spearheaded flexible work arrangements and parent programs. Sobbott also developed the Women’s Business Initiative, supporting female founders in growing their startups. A fierce champion for entrepreneurs, she created Small Business Saturday and the Shop Small movement, encouraging consumers to patronize small, independent businesses.

Learn what propels Sobbott in this edition of 20 Questions.

1. What was your first job?

At 15, I worked for a local orthodontist after school. When I asked to reduce my hours to focus on my AP classes, he insultingly predicted I “wouldn’t amount to anything.” First job, first lesson: Find my own power. I fortified my resolve to prove him wrong!

2. What advice do you most often share?

When faced with a tough decision, remember what you value. The answer will be clear. Integrity not only means being honest, but also means “being whole and undivided” — aligning your actions with what matters most.

3. Whom do you most admire?

My father is my role model — an eternal optimist who faced life’s challenges with unwavering resilience.

ALUMNI

4. What motivates you?

Helping others connect to their purpose and achieve their vision.

5. What is your superpower?

Cutting through complexity, getting to the heart of an issue and then asking the right questions. The right questions can illuminate a path forward.

6. When and where do you do your best thinking?

Downtime is rocket fuel for my creativity. It’s counterintuitive, but stepping back often brings a fresh perspective.

7. What’s been on your mind lately?

We live in an era characterized by distrust. People aren’t exactly placing bets on government, education, religion or even businesses to do what’s right. But here’s the thing: Business leaders can be game-changers. Business is not only about the profits, but also about being a positive force. I’m constantly pondering how I can nudge things further in that direction.

8. What are you reading these days?

Lessons in Chemistry by Bonnie Garmus and Powered by Me, From Burned Out to Fully Charged at Work and in Life by Neha Sangwan.

Despite vastly different genres, both dive into living with intention and staying true to yourself. Highly recommend!

9. How do you recharge?

I love great storytelling in film, art, theater and music. It carries me out of my world and into another and inspires me to discover my own ingenuity.

/

“

PROFILE

YOUR INVESTMENT IN DARDEN IS AN INVESTMENT IN YOU. THE TIME IS SHORT, THE IMPACT LONG. BE PRESENT AND SAVOR IT.”

16. Which class at Darden impacted you the most?

A&C (Analysis and Communications). As an introvert, I was not very confident in front of a crowd. The repeated (and intimidating) practice of thinking on my feet and responding to the demands of the moment cultivated one of my most powerful skills and sowed the seeds of my ability to listen, connect and influence.

17. What’s your favorite Darden memory?

My favorite (and worst!) memory is from First Year, first semester Finance class. I came to Darden with that insufferable investment banking swagger, and early one fall morning, I found myself on the receiving end of a softball cold call. I confidently delivered precisely the wrong answer. My Section C mates smoothed over my gaffe, without judgment or stoking my overwhelming embarrassment. Lesson learned and never forgotten: Darden is about camaraderie over competition.

18. What’s your No. 1 tip for current Darden students?

Embrace and enjoy each other, the Darden faculty and administration, and most importantly, your time immersed in the Darden experience. It’s so easy to get wrapped up in all the work, in the job seeking pressure and in your performance. Your investment in Darden is an investment in you.

The time is short, the impact long. Be present and savor it.

19. You’re a member of several boards. How do you choose which boards to serve on, and do you have advice for Darden alumni considering board work?

11. How do you deal with conflict?

With empathy. I prefer transparent, yet compassionate communication. It’s essential in resolving conflict.

My criteria is simple: 1. Healthy mission-driven companies 2. with integrous leaders 3. solving meaningful problems with innovative solutions 4. delivering value for all stakeholders 5. where I can make a difference.

12. What characteristics do you look for in people?

Integrity, curiosity, generosity, commitment, resilience and enthusiastic collaboration — building something great is a team effort.

My advice: Be sure you are willing to invest the time to have informed points of view, and speak up even if yours is the only voice on an issue.

13. What makes you feel hopeful?

My children and their generation. Their energy to make the world better is contagious.

20. You joined the Darden Foundation Board of Trustees in 2021. What are you most passionate about in your role as a trustee?

Darden is a place where it is not only encouraged but demanded that you claim what you care deeply about. Not only because of its role in advancing your career, but also because it matters. That self-awareness unlocks something inside each member of the Darden community that fuels boundless courage and creativity, and a contagious persuasiveness to influence the future contributions of business to a better world.

10. What’s your motto?

The future is ours to create.

14. What is your favorite cause?

The One Love Foundation, created in response to tragic events here at UVA. One Love educates students and raises awareness of the warning signs of relationship abuse.

15. If you could live anywhere, where would it be?

At the beach! Wouldn’t you?

WINTER 2024

35

INCREASE THE ROI OF YOUR L&D. Participant practices pitching solutions in a custom program for global manufacturer Milliken.

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SOLUTIONS FOR ORGANIZATIONS Darden’s award-winning programs combine world-class faculty and fully customizable learning solutions.

Our high-touch, collaborative approach to program design and delivery provides measurable results for your organization and leaders. Through our robust offerings and capabilities, we can provide a broad range of in-person, online and hybrid solutions to meet your organizational development goals.

Discover why we’re the trusted capability partner for Fortune 100 companies, U.S. military and federal agencies, and global associations.

Programs can be delivered at The Forum Hotel Kimpton Charlottesville UVA Darden or at UVA Darden DC Metro.

36

DA R D E N R E P O R T

Provided by the UVA Darden School Foundation

ALUMNI

/

CLASS NOTES

401 Park Street Charlottesville, VA 22902

434.977.4005 lwoodriff@loringwoodriff.com

EXCEPTIONAL HOME WITH PRIVACY IN FARMINGTON

LUXURY CUSTOM IN KESWICK ESTATE

1525 BROOK HILL LANE $4,300,000 This exceptional Farmington Country Club home has generously proportioned rooms, 12’ ceilings, large windows, hardwood floors, 4 fireplaces & superb flow for easy 1-level living. Richly appointed spaces including spacious living room with stone fireplace, 3 add’l fireplaces in the dining room, library & family room. 4 large bedrooms each w/ en-suite bath. Well-appointed kitchen adjoins breakfast nook, butler’s pantry & wet bar. 20x30 terrace-level multipurpose room has large windows & built-in bookcases.

Outdoor living w/ over 1600sf of deck & patio space. Mature landscaping and specimen trees. Punkie Feil (434) 962-5222 or Elizabeth Feil Matthews (434) 284-2105. MLS# 645940 PRISTINE KESWICK ESTATE 10 MINS TO TOWN

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2884 PALMER DRIVE • $2,595,000 Custom home w/ high quality craftsmanship, 1-level living & open concept offers traditional architecture & modern conveniences. Located on a secluded lot w/ mature trees next to trails & amenities of Keswick Club. Covered front & rear porches enities of Keswick Cluplus lush lawn space. Second floor offers sitting area, 2nd laundry rm & 3 spacious BRs all w/ ensuite baths.

Tommy Brannock (434) 981-1486. MLS# 644156

GORGEOUS HOME & EQUESTRIAN FACILITIES

464 CLARKS TRACT • $4,900,000

1055 EAST WATER STREET • $1,825,000

12046 SPICERS MILL ROAD • $1,875,000

Comprised of 216 acres in the heart of Keswick Estate Country, Arabelle Farm offers a turn-key equestrian property, recently refurbished farm improvements & renovation of the c.1910 5 bed/5 full/2 half bath residence. 23 stall, center aisle barn w/ 2 apts, 5-bay car garage as well as a 2-bay oversized garage w/ renovated 2 bed apt above, 10 paddocks w/ run-ins, & 2 beautiful ponds. Firefly Fiber internet. Rebecca White (434) 531-5097 or Loring Woodriff (434) 466-2992. MLS# 640549

Located within a few blocks of the Downtown Mall, Belmont & Midtown, this sophisticated 3 bed, 3 full plus 2 half bath home offers the best downtown lifestyle. All 3 bedrms are ensuite, incl’ luxurious full floor master suite.

Rooftop terrace w/ gas fire pit offers city & mtn views.

2 garage pkg spaces plus plenty of guest parking. Other features incl’ gas fireplace in the living/dining/kitchen, deck off the kitchen & many built-ins. MLS# 646519

Hamilton Farm offers custom home & equestrian amenities.

Floor plan w/ flow & privacy has wings for huge master suite & guest quarters bracketing living, dining, great rm that opens to kitchen & deck, home office, & laundry. 2 ensuite bedrms upstairs & oversized att’d garage. 32 acres of open land, centeraisle barn w/ 12x12 stalls w/ auto waterers, board fenced pastures w/ run-in sheds, ample arena w/ excellent footing, & jumping field. Julia Parker Lyman (540) 748-1497. MLS# 646253

HISTORIC GEM STEPS FROM DOWNTOWN

EXTRAORDINARY ESTATE PARCEL OPPORTUNITY IN SOMERSET

17439 ROCKLANDS DRIVE $1,800,000

113 ALTAMONT CIRCLE • $1,599,000 Extremely rare opportunity to live just a few blocks from parks, restaurants & shopping. 1920’s character in this charming light-filled home w/ original woodwork, moldings & hardwood floors, dramatic foyer w/ fireplace, tall ceilings, deep welcoming front porch, & truly remarkable backyard oasis w/ swimming pool. 5 bedrms & 3.5 baths, incl’ 1st flr primary suite & elevator to main level & partially fin. basement. Sally Neill (434) 531-9941. MLS# 646332

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DA R D E N R E P O R T

Located on one of Virginia’s most scenic & protected byways, this magnificent estate parcel offers multiple dramatic building sites, all set in absolute privacy & tranquility yet w/ stunning, panoramic views of the Virginia countryside. One building site in particular located about 2/3 of a mile off the state road offers staggering Blue Ridge views plus panoramic views of the surrounding, protected countryside in all directions. The rolling topography offers about 55 acres of lush meadows & 25 acres of mature hardwoods. Fiber internet! Zero road exposure & not in any flight paths, yet close to 2 charming small towns & within 25 min of Charlottesville via gorgeous State Route 231. Under conservation easement w/ no division rights. No square footage maximums! MLS# 647348

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To update your contact information, call +1-434-243-8977 or email alumni@darden.virginia.edu

SET YOUR SIGHTS on HOSTING YOUR NEXT CORPORATE EXPERIENCE at PIPPIN HILL

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“

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— Jenna

Josh & Dana Fernandez Photography

5022 Plank Road, North Garden, VA events@pippinhillfarm.com 434.202.8063 | pippinhillfarm.com

WINTER 2024

77

ALUMNI PROFILE

JOHN JORDAN (MBA ’03) A Lifelong Learning Believer

BY DAVE HENDRICK

A

s head of The Academy, Bank of America’s global learning and skills development organization until January, John Jordan (MBA ’03) was responsible for the onboarding and continuing education of more than 200,000 employees across the company.

It’s a company and culture Jordan became particularly well-versed in, having worked at Bank of America since graduating from Darden, until this January.

An industrial engineer as an undergraduate, Jordan left Auburn University imagining a career in technology and entrepreneurship.

When the tech bubble burst in the early 2000s and a professional path forward became less clear, Jordan pursued an MBA at Darden.

“When I first got to Darden, I was honestly overwhelmed with how intelligent, and just how amazing, the students around me were,” said Jordan, but the initial “shock to the system” gave way to a constant desire to learn and lifelong friends.

“Those class discussions with Darden professors are memories that I cherish, and the way we learned influences the way that I try to drive education today, which is more experiential and conversational,” said Jordan.

A believer and practitioner in lifelong learning, Jordan worked in various capacities at Bank of America throughout his career, rising from regional to national roles with responsibility touching on topics including wealth management, analytics and client experience before leading education and learning programs.

It’s clear that the skills that may lead to someone’s first job are not necessarily those that will sustain a career, he says.

“You need a lifelong learning approach to a career, because things are changing so quickly that if you aren’t learning, you’re falling behind,” said Jordan.

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DA R D E N R E P O R T

“

YOU NEED A LIFELONG LEARNING APPROACH TO A CAREER, BECAUSE THINGS ARE CHANGING SO QUICKLY THAT IF YOU AREN’T LEARNING, YOU’RE FALLING BEHIND.”

In corporate America, companies can encourage learning by both helping employees draw a connection between continuous learning and career advancement and offering formal designations, such as badges and certifications testifying to earned skills.

Jordan and his team at Bank of America played a key role in incorporating new technologies into reskilling and training. Virtual reality and artificial intelligence-driven simulators are helping frontline employees build resilience by working through difficult conversations or interactions, for instance, and career path tools offer greater visibility and transparency into potential roles and routes.

Bank of America also tries to share its educational capabilities within the community. Through its Pathways career program, the company partners with local nonprofits and community colleges to provide skills training to candidates from low and moderate income backgrounds, hiring thousands of these individuals and positioning them for success with the bank.

Jordan said the Pathways program began with informal discussions of how the company could aid the communities they served using existing resources.

“It’s been a fruitful program and a great example of taking purpose beyond the core business. This is impacting peoples’ lives,” said Jordan. “There’s definitely a connection to what we learned at Darden around ethics and impacting stakeholders beyond just the bottom line.”

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Magnificent 16.5 acre estate with c. 1860 main house. Renovated in 2017 with stunning kitchen remodel, expanded great room, updated bathrooms. Complemented by guest cottage and carriage house with garage. Gracious porches, terraces, and retaining walls. MLS#642190 Court Nexsen (Darden ‘13), 646.660.0700

HIDDEN FOX FARM ◆ $4,400,000

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10 miles from town, near Free Union, over 100 acres, division rights, NO CONSERVATION EASEMENT! Spectacular Blue Ridge views from many homesites, several barns, stable, 2 ponds, creeks, FANTASTIC offering, one of the BEST FARMS in NW Albemarle County!

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Oversized garage with guest suite. MLS#643578 Court Nexsen (Darden ‘13), 646.660.0700

DOWNTOWN PENTHOUSE ◆$1,690,000

In the heart of Belmont, 5 minute walk to the Downtown Mall, is this dramatic, 3-bedroom, 3.5-bath condo with 3158 finished square feet. Beautiful open floor plan, large rooftop terrace with urban and pastoral views! One of Charlottesville’s best condos! MLS#634149 Jim Faulconer, 434.981.0076

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Palatial country estate situated on magnificent 27-acre mountaintop setting at 4,100 foot elevation, surrounded by 9,000 acres of permanent wilderness.

Exceptional custom home over 11,400 square foot featuring large spacious rooms, finest quality materials and construction, 8 bedrooms, 6.5 baths, many outside terraces, decks, with 360 degree breathtaking views from everywhere! 10 miles to famed Omni Homestead Resort, 2 miles to the airport. $4,250,000 Jim Faulconer, 434.981.007 Visit: www.highergroundva.org

BLENHEIM ROAD ◆ $1,200,000

Stunning modern-day log cabin privately situated on 22.58 acres with luxurious, yet rustic 4-BR, 4.5-BA residence of approximately 4,148 fin.sq.ft. over 3-levels. Located in the tranquil countryside, less than 15 miles south of Charlottesville. MLS#646275 Jim Faulconer, 434.981.0076 or Will Faulconer, 434.987.9455

WWW.MCLEANFAULCONER.COM

ALUMNI PROFILE

WILL PAYNE (EMBA ’22) Bringing Relationships to the Table

BY TOM VAN DER VOORT

A

fter building an impressive career in Virginia politics, working with both Republicans and Democrats, Will Payne (EMBA ’22) came to Darden to begin what he calls “a process of reinvention.”

The urge to get an MBA came following a conversation with U.S. Senator Mark Warner, the first Democrat that Payne had ever worked with.

After working with Republicans for the first part of his career, Payne observed how then-Governor Warner collaborated with his political opponents during the budget battles of the early 2000s. “I learned bipartisanship during that session because bipartisanship ruled the day. That really set the stage for me to understand the value of relationships. It was purely relationships that got the budget deal through.”

Just over a year before entering Darden, Southwest Virginia’s senior legislators put out a call for consulting firms to help address a shrinking population and job losses stemming largely from declining coal production. Payne was not a consultant, but his political experience and innate skill at building relationships made him a better fit for the assignment than the traditional firms he beat out.

And he offered one other thing: “I said, ‘You want someone who’s all in. I’m always all in. I’m going to move here and run this.’”

From Bristol, Virginia, his new journey began. Launching Coalfield Strategies in July 2019, his mission focused primarily on redeveloping reclaimed coal mine properties for more contemporary uses. More than a dozen projects under consideration today represent in excess of $8 billion in potential private capital investment, 1,600 new jobs, and nearly 1 gigawatt of new power generation and demand.

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“

I FEEL LIKE I HAVE NO FEAR OF FAILURE AT THIS POINT AND I THINK DARDEN HAS A LOT TO DO WITH THAT MINDSET CHANGE.”

The Darden classroom and community fit Payne’s philosophy of collaboration and relationship-building perfectly. He built on the skills he had learned in the political realm and added business acumen to his arsenal, increasing his power to make a real impact in the Commonwealth.

“Darden has made me a more effective leader, more thoughtful person and more discerning,” Payne said.

Now, Payne is shifting his focus almost exclusively to serving as a matchmaker for utilities, developers and landowners in Southwest Virginia with the launch of Energy DELTA Lab. Two years of work building a relationship with Fortune 100 company Energy Transfer recently resulted in the largest private land deal in the region — 65,000 acres now on the table for clean energy development.

He’s pursued personal ventures in the area, too, preparing to launch Squabble State Hard Cider & Spirits in a venture developed through Darden’s i.Lab Incubator. The name references early border disputes between Virginia and North Carolina.

“I feel like I have no fear of failure at this point,” Payne said, “and I know Darden has a lot to do with that mindset change.”

LEADERSH I P BOARDS

DARDEN LEADERSHIP BOARDS The two leadership boards of the Darden School of Business are composed of nearly 100 distinguished leaders who serve as an innovative force in the advancement of the Darden School throughout the world.

(Listing as of 31 December 2023)

DARDEN SCHOOL FOUNDATION BOARD OF TRUSTEES Chair Frank M. Sands (MBA ’94)

University of Virginia Darden School of Business

Elizabeth Hagood (MBA ’89)

Vice Chair John D. Fowler Jr. (MBA/JD ’84)

Constance J. Hallquist (MBA ’91)

Wells Fargo Securities LLC

Immediate Past Chair Martina Hund-Mejean (MBA ’88) Retired, Mastercard International Inc.

Scott C. Beardsley

University of Virginia Darden School of Business

John P. Bolduc (MBA ’90)

Retired, Firstmark Corp.

James A. Cooper (MBA ’84)

Thompson Street Capital Partners

Charles R. Cory (MBA/JD ’82) Retired, Morgan Stanley & Co. Inc

Guillaume M. Cuvelier (MBA ’91) Davos Brands LLC

Robert G. Doumar Jr. (MBA/JD ’88) Park Square Capital LLP

Debra Draughan (MBA ’84)

The Process Management Group LLC

Frank S. Edmonds (MBA/JD ’95) Covey Hill Capital Management

Arnold B. Evans (MBA/JD ’97) JP Morgan Chase & Co.

Richard B. Evans

University of Virginia Darden School of Business

Catherine J. Friedman (MBA ’86) GV

Kirsti W. Goodwin (MBA ’02) Tower3 Investments

Peter M. Grant II (MBA ’86) Anchormarck Holdings LLC

DA R D E N R E P O R T

Yael Grushka-Cockayne

Retired, Lowcountry Open Land Trust

H. William Coogan Jr. (MBA ’82)

94

Currie Medical

Sands Capital

H.I.G. Capital

Thank you to our alumni and volunteer leaders for a record year of support for Darden.

Owen D. Griffin Jr. (MBA ’99)

Garnet Hill

Michelle B. Horn (MBA ’95) Delta Air Lines

Robert L. Huffines (MBA ’92) J.P. Morgan Chase & Co.

Robert J. Hugin (MBA ’85) Retired, Celgene Corp.

Mark J. Kington (MBA ’88) Kington Management LLC

David M. LaCross (MBA ’78) Morgan Territory Brewing

Beverly B. Ladley (MBA ’92) Consultant

Douglas R. Lebda (EMBA ’14) LendingTree Inc.

Lemuel E. Lewis (MBA ’72) Iv Media LLC

Amanda Lozano (MBA ’09) Spoke Sciences Inc.

Paul Mahoney

University of Virginia School of Law

Richard A. Mayo (MBA ’68) Game Creek Capital

Sachin J. Mehra (MBA ’96) Mastercard Worldwide

Donald E. Morel Jr. (TEP ’97) Progenitor Capital LLC

Kim B. Morrish (MBA ’93) Ground Control Ltd.

J. Byrne Murphy (MBA ’86) Kitebook Partners Limited

Adair B. Newhall (MBA ’09) StepStone Group

LEADERSH I P BOARDS

G. Ruffner Page Jr. (MBA ’86) O’Neal Industries LLC

William H. Payne II (GEMBA ’22)

DARDEN ALUMNI ASSOCIATION BOARD OF DIRECTORS

Miranda A. Grueiro (MBA ’21) Microsoft

Douglas T. Moore (MBA ’80) Fahrenheit Advisors

Taylor P. Heaps (MBA ’13) Robert W. Baird

Tami M. Moore (EMBA ’09) Tillman Fiber Co.

Chair Michelle B. Horn (MBA ’95) Delta Air Lines

Karen O. Henneberger (EMBA ’20) 7 Rules Consulting LLC

Tiffani C. Moore (EMBA ’16) Federal Housing Finance Agency

Sonia L. Hounsell (MBA ’99) FunkkOFF! Inc.

Betsy M. Moszeter (EMBA ’11) Green Alpha Investments

Coalfield Strategies

Carl Peoples (MBA ’94)

Goldmach Sachs Group Inc.

C. Evans Poston Jr. (EMBA ’17) Hunton Andrews Kurth LLP

Vice Chair

Matthew Joseph Reintjes (MBA ’04)

Cynthia K. Soledad (MBA ’02) Egon Zehnder

Evan Inra (EMBA ’08) Amazon

Nikhil Nath (MBA ’00) NSQ Advisors

James E. Ryan

Rachel Barnes (MBA ’21) Royer Cooper Cohen Braunfeld LLC

Gen A. Izutsu (MBA ’15) Veralto

Ann H. S. Nicholson (MBA ’01) Corning Inc.

William Q.O. Shelton Jr. (MBA ’93)

Stephen (Gregg) Brooks (MBA ’09) Self employed

Marcien B. Jenckes (MBA ’98) Comcast Corporation

Patrick A O’Shea (MBA ’86) Vesttoo Securities (USA)

Mary Buckle Searle (MBA ’86)

Melissa Jenkins (MBA ’16) Washington Nationals

Chetan Peddada (MBA ’15) DoorDash

Kendall Jennings (MBA ’12) Accenture

Alyssa N. Perez-Melendez (MBA ’20) Bain & Company

Claritza E. Jimenez (EMBA ’21) Paramount/CBS News

Alex R. Picou (MBA ’89) JP Morgan Private Bank

Wei Jin (MBA ’99) Northwestern Mutual Life Insurance Company

Jason Sinnarajah (MBA ’07) Kansas City Royals

YETI

University of Virginia Group 1001

Erik A. Slingerland (MBA ’84) EAS International S.A.

Robert W. Smith (MBA ’87)

Retired, T. Rowe Price Trust Co.

Shannon G. Smith (MBA ’90) Abundant Power Group

Susan Sobbott (MBA ’90) Independent Consultant

Cynthia K. Soledad (MBA ’02) Egon Zehnder

Anand Emmanuel Stanley (MBA ’03) Airbus

Mark J. Styslinger Altec Industries Inc.

Bruce R. Thompson (MBA ’90) Bank of America

Lilo Simmons Ukrop (MBA ’89) University of Virginia Darden School of Business

Jordan H. Casserley (MBA ’20) McKinsey & Company Sandhya K. Chhabra MD (EMBA ’17) Albemarle Endocrinology Sean M. Corrigan (MBA ’05) The Walt Disney Company Richard P. Dahling (MBA ’87) Fiducient Advisors E. Gulen Desteli (MBA ’06) GE HealthCare Zhana Edmonds (MBA ’19) CVS Health Richard C. Edmunds III (MBA ’92) PricewaterhouseCoopers Rachel M. Edwards (MBA ’22) JP Morgan Chase & Co. Sarita T. Finnie (MBA ’01) Bayer

Steven C. Voorhees (MBA ’80)

Theresa O. Frankiewicz (MBA ’87) Crown Community Development

Jimmy Jianzhong Wei (MBA ’02)

Michael J. Ganey (MBA ’78) GaneyNPD

Marietta Edmunds Zakas (MBA/JD ’84)

Ivy L. Ghatan (MBA ’03) LinkedIn

ImaGene Pharmaceuticals

Mueller Water Products Inc.

Leslie P. Gordon (MBA ’89) Korn Ferry Jacqueline Grace (MBA ’10)

Patrice Ju (MBA ’14) Google Matthew A. Kaness (MBA ’02) GoodwillFinds Ecommerce Inc. Markus A. Kritzler (MBA ’04) Ingenia Capital

David L. Tayman (MBA/JD ’99) Tayman Lane Chaverri LLP Deborah B. Thomas (MBA ’89) Somos Inc. Kelly M. Thomson (MBA ’99) Mubadala Capital

Xiang Liu (MBA ’05)

Zachary G. Upcheshaw (MBA ’15) Goldman Sachs

Kristina F. Mangelsdorf (MBA ’94) KFM Executive Coaching (self-employed)

Gerrud Wallaert (TEP ’18) Brightmark

Sherry McCray (MBA ’05) Constellation

Meghan Welch (EMBA ’10) Plaid

Lois M. McEntyre (MBA ’95) Intuit Inc.

Daniele M. Wilson (MBA ’11) Google

Harold W. McGraw IV (MBA ’07) S&P Global

Rebecca M. Wilson (MBA ’96) 20/20 Foresight Executive Search

Rajan J. Mehra (MBA ’93) March Capital

Jose Maria Zertuche (MBA ’00) BlackRock

Michael W. Meredith (GEMBA ’17) Akamai

Shaojian Zhang (MBA ’99) Yushi Consulting

WINTER 2024

95

IN MEMORIAM

The Darden School offers its condolences to the families of the following individuals whose deaths have been reported to us in the past six months.

Vidhi Agarwal (Class of 2025)

Henry H. Harrell (TEP ’70)

Randolph W. Cabell (MBA ’59)

Howard N. Heller (MBA ’69)

Cummins Catherwood Jr. (MBA ’67)

Burdett L. Ives (MBA ’67)

Alfred R. Anderson (TEP ’81)

Albert J. Cadaret II (MBA ’66)

Thomas L. Cordle Jr. (MBA ’65)

Charles A. Harris (TEP ’70)

Marc Rockwell-Pate (Class of 2025)

Janice Horan (MBA ’90)

J. Larry Rutherford (MBA ’74)

Frank W. Ix IV (MBA ’75)

Michael A. Stroka (MBAJD ’95)

David P. Lauffer (MBA ’05)

Ronald W. Wenger (MBA ’78)

Kenneth B. Culbert (MBA ’61)

Lorrence T. Kellar (MBA ’62)

Thaddeus W. Evans Jr. (MBA ’62)

John R. Light (MBA ’74)

Damon S. DeVito (MBA ’94) Robert C. Giltner (MBA ’78) Ray V. Hansen (TEP ’70)

UVA DARDEN PROFESSOR EMERITUS C. RAY SMITH

David I. Ramsey (MBA ’70)

Peter D. Lips (MBA ’73)

Gary M. Rosenthal (MBA ’84) C. Ray Smith (MBA ’58)

James B. Van Dusen (TEP ’66) John R. Wilson (MBA ’91)

Richard J. Mandeville (TEP ’79)

THE DARDEN COMMUNITY mourned the loss this fall of Professor Emeritus

C. Ray Smith (MBA ’58) after his death on 3 November at the age of 88. A celebrated educator, administrator and guiding voice who served the School with unparalleled dedication for more than four decades, Smith joined the Darden faculty at 26 in 1961 and retired in 2003 after a 42-year career.

As a professor, Smith taught in five of Darden’s academic areas. He became a full professor of business administration in 1971 and became chaired as the Tipton R. Snavely Professor of Business Administration in 1981. In addition to teaching in the MBA program, he taught many Darden Executive Education & Lifelong Learning programs over the years.

Smith’s commitment to education matched his passion for leadership and service. He was appointed executive director of the Darden School Foundation in 1996 and stayed there until retirement. He led Darden as interim dean on three separate occasions: 1993, 1997 and 2001. For his commitment, he was given the Charles C. Abbott Award, the highest honor bestowed on a Darden graduate, in 1995.

SMITH’S COMMITMENT TO EDUCATION MATCHED HIS PASSION FOR LEADERSHIP AND SERVICE.

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Darden Executive Education & Lifelong Learning

2024 OPEN PROGRAMS NAME

Live Virtual

Online

In-Person

DATES

FEE

DELIVERY/LOCATION

CATEGORY

Financial Management for NonFinancial Executives

25 Feb.–1 Mar. 2024

$10,500

Charlottesville, VA

Management

Driving Innovation Through Inclusion

4–7 Mar. 2024

$8,950

Washington, D.C., Metro Area

Leadership

Collaboration and Influence

4 Mar.– 12 Apr. 2024

$1,600

Self-Paced Online

Leadership

Effective Decision Making

11–14 Mar. 2024

$7,900

Washington, D.C., Metro Area

Leadership

Managing the Corporate Aviation Function

17–22 Mar. 2024

$10,500

Charlottesville, VA

Corporate Aviation

Leading Mindfully

1–24 Apr. 2024

$3,600

Live Virtual

Leadership

Women in Leadership Program

15–19 Apr. 2024

$9,950

Washington, D.C., Metro Area

Leadership

Servant Leadership: Leading With Humanity

6–10 May 2024

$9,950

Charlottesville, VA

Leadership

Leading Teams for Growth and Change

3–7 Jun. 2024

$10,950

Charlottesville, VA

Leadership

The Executive Program: Advanced Management

13 Oct 2024– 2 May 2025

$53,350

Charlottesville, VA & Washington, D.C., Metro Area

Advanced Management

DARDEN ALUMNI RECEIVE A 30 PERCENT DISCOUNT. USE ALUMNI30 WHEN YOU REGISTER ONLINE. For up-to-date information on upcoming programs, use our Find Your Program tool.

Darden Executive Education & Lifelong Learning is provided by the University of Virginia Darden School Foundation.

For more information, contact: Darden_ExEd@darden.virginia.edu • +1-434-924-3000 • www.darden.virginia.edu/executive-education WINTER 2024

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NONPROFIT ORG. U.S. POSTAGE PAID PPCO University of Virginia Darden School Foundation P. O. Box 7726 Charlottesville, VA 22906-7726

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