The Darden Report-Spring Summer 2013

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University of Virginia Darden School of Business




Inbound vs. Outbound Marketing U.Va.’s Innovation Laboratory A New Era of Leadership



The Darden Center for Asset Management presents the

6TH AnnuAl

university of Virginia Investing Conference at the Darden School of Business

Featuring Kyle Bass l

Managing Partner, Hayman Capital Management LP

Joyce Chang l

Global Head of Fixed Income Research, JP Morgan Securities LLC

Rob Citrone l

Founding Partner, Discovery Capital Management

Tony Crescenzi l Executive Vice President, Market Strategist and Portfolio Manager, PIMCO Henry Ellenbogen Portfolio Manager, T. Rowe Price

Alice Handy l Founder and President, Investure Joseph “Jody” A. LaNasa III Managing Partner, Serengeti Asset Management

Finding Opportunity in an Unpredictable World

Scott Malpass l

Vice President and Chief Investment Officer, University of Notre Dame

Howard Marks l Chairman, Oaktree Jason DeSena Trennert l Managing Partner, Chairman & CEO, Strategas Research Partners LLC

Wil VanLoh l

President & CEO, Quantum Energy Partners

For more inFormation and to register

14–15 November 2013





Spring/Summer 2013




Let the Customers Find You

Time for a New Era of Leadership

Battling the Big Dry

By Chana R. Schoenberger

by Dean Krehmeyer (MBA ’99)

by Tammy Worth

Professor Thomas Steenburgh describes how the culture of selling is changing and how the software firm HubSpot sparked an “inbound marketing” revolution.

When it comes to addressing complex societal issues or simply making people’s lives better, business has shown that it can take the lead.

Professor Peter Debaere draws on lessons learned from Australia’s decade-long drought to explain how the world’s water markets should be effectively managed and designed.

5 From the Dean 6 News Briefs 14 What to Read Now 17 Sound Bites 20 Did You Know? 22 Graduation 2013: Go Forth and Make a Difference! 34 Abbott Award Winner: Henry Skelsey (MBA ’84) 38 Leadership Boards





FACULTY SPOTLIGHT PROF. DENNIS YANG From the Chinese Cultural Revolution to the Darden Classroom



“Paying It Back, Not Forward”


ALUMNI PROFILE JEN MCENERY FINN (MBA ’00) Balances Her Career, Three Kids and a Commitment to Darden

40 20 QUESTIONS  John Fowler (MBA ’84)

Cover Photo: Ian Bradshaw SPRING/SUMMER 2013  THE DARDEN REPORT



UTC is proud to support the Darden School for its role in developing principled leaders with the integrity, discipline and insightful thinking that can help us build a better world.


For more information, visit

From the Dean Dean, Charles C. Abbott Professor of Business Administration and Distinguished Professor of Business Administration

Trip Davis (MBA ’94) President, Darden School Foundation and Senior Associate Dean for External Relations

Phil Knisely (MBA ’78) Chair, Darden School Foundation Board of Trustees

Michael J. Woodfolk (TEP ’05) Executive Director, Alumni Services

The Darden Report Volume 40, No.1: Spring/Summer 2013 Published by the Office of Communication & Marketing Senior Director of Communication: Juliet Daum Editor: Jacquelyn Lazo Art Director: Susan Wormington Graphic Design: Ross Bradley, Susan Wormington Copy Editors: Catherine Burton, Seamane Flanagan Cover Photo: Ian Bradshaw Photography: Dan Addison, Michael Bailey, Ian Bradshaw, Tom Cogill, Zhou Junxiang, Jaime Kay, Jack Looney, Tim Pelling, Kristen Rose, Andrew Shurtleff Advertising Inquiries: Carter Hoerr, Executive Director for Advancement Phone: +1-434-924-6576 Send correspondence to: The Darden Report Office of Communication & Marketing P. O. Box 7225 Charlottesville, Virginia 22906-7225 USA The Darden Report is published with private donations to the University of Virginia Darden School Foundation. © 2013 Darden School Foundation

Hang on, Hang in and Make a Difference “Never confuse movement with action.” – Ernest Hemingway

This graduation season, the media will report a range of speeches by famous people, one common theme of which will be to exhort the graduating students to “move out, move away and move on” — the notion being that they’ve had enough time with the cloistered Dean Bob Bruner academic life and that more growth awaits them out in the real world. It’s hard to argue with that — except that “move out, move away and move on” too easily becomes the mantra for professional life in general. Therefore, I choose to take the contrary view this season and urge you to embark on a professional life where you “hang on, hang in there and make a difference.” Among Darden’s alumni, I see some great examples. Here are three. • Paul Hamaguchi (MBA ’70) lives in Tokyo, Japan, and is CEO of Higeta Shoyu Company Ltd., a 400-year-old producer of soy sauce. Paul has worked with that company since 1979. • Elizabeth Lynch (MBA ’84) worked for Morgan Stanley for 22 years, eventually retiring as global chief operating officer of their equities research business. She has been a wonderful supporter of Darden and told the students in “General Managers Taking Action,” “Do new MBAs get it? I want to see commitment to culture, loyalty and learning. Always be wary of the person who’s had three jobs in five years.” • George David (MBA ’67) worked for United Technologies Corporation (UTC) for 23 years. He served as UTC’s CEO for 14 years. He believed in appointing managers who knew the business best. For him, that meant recruiting managerial talent carefully and then growing it over long periods in whatever business the candidates might be, such as helicopters, air conditioners, or elevators. My point is that these people had a huge impact in their work and lives through long-term dedication to one organization. They hung on, hung in and had an impact. Their ability to gain senior leadership probably had something to do with hanging on. About two-thirds of all CEOs of the S&P 500 companies were internal appointments, and on average, they spent 12.8 years with their company before being appointed. So continuity matters, domain knowledge matters and persistence matters. An excerpt from Darden Dean Bob Bruner’s remarks to the graduating Class of 2013. See page 20 to learn more about Graduation 2013.

Editor’s Note: A correction to the Fall/Winter 2012 issue, “20 Questions” (page 80): The Darden classes that influenced Jerry Zhiyuan Peng (MBA ’03) the most were “Financial Derivatives” with Professor Bob Conroy, “Leading Strategic Change” with Professor Alec Horniman and “Bargaining and Negotiation” with Professor Sherwood Frey.


Carnegie Institution for Science, Washington, D.C. 14–15 NOVEMBER 2013 UNIVERSITY OF VIRGINIA INVESTING CONFERENCE “Finding Opportunity in an Unpredictable World” 25–27 APRIL 2014 DARDEN REUNION (4s, 9s and the Class of 2013) 9–10 MAY 2014 DARDEN GLOBAL LEADERSHIP FORUM Shanghai, China SPRING/SUMMER 2013  THE DARDEN REPORT




News Briefs

START IT UP! Imagine the ideal innovation laboratory. A hope-filled entrepreneur, fueled by a vision, seed money and coffee, enters a hub of activity and creativity. In the pitch room, he presents his early-stage business venture. In the media room, he participates in a Skype meeting. In one of the high-tech classrooms, he learns from other entrepreneurs, advisers and mentors. He creates a model of his product on a 3-D printer and retreats to a quiet office space with a window overlooking the forest to imagine the future.



Lyons Brown (MBA ’87) spoke at the grand reopening of the i.Lab.

A timeline depicting the history of great ideas lines the classroom hallway.

The i.Lab lobby features various seating areas.

The new venture Shark Mountain Coffee occupies a corner of the i.Lab and roasts its own coffee beans.

Professor Jeanne Liedtka’s work in design thinking inspired the original i.Lab classroom.

Kenny Schulman (Class of 2014) won the crowdsourced competition “U.Pitch. C’ville Decides.” Guests mingle in front of the Idea Well where entrepreneurs offer and request help, make connections and share inspirational quotes.

T Darden Dean Bob Bruner comments on entrepreneurship and innovation.

his is the University of Virginia’s new Innovation Laboratory (i.Lab). This spring, the business incubator at the Darden School of Business underwent a $1.3 million expansion. The facility, which quadrupled in size, serves entrepreneurs from all of the University of Virginia schools and the local Charlottesville community. Renamed the W.L. Lyons Brown III Innovation Laboratory, in recognition of the Darden alumnus whose matching challenge gift — met swiftly by Darden alumni and friends — made the expansion possible, the i.Lab can now incubate up to 25 businesses at a time. Darden’s Batten Institute for Entrepreneurship and Innovation will oversee the facility. At the opening ceremony on 11 April, Lyons Brown (MBA ’87) reflected

on his passion for creativity. “I like being down in the bog,” he said. “I like being in the place from which ideas emanate and are nurtured and are ultimately launched for maximum impact.” At the celebration’s “U.Pitch. C’ville Decides” crowdsourced competition, Darden First Year student Kenny Schulman won first place, which earned him a space in the i.Lab. Schulman’s business, Eat. Drink. Play., connects travelers with local residents who are willing to share their favorite parts of their community. “What would Thomas Jefferson think of the i.Lab?” asked President Teresa A. Sullivan, who delivered a toast during the grand reopening. “He would certainly approve of the commitment to innovation.”

The pitch room is formally known as the W.L. Lyons Brown Jr. Boardroom. SPRING/SUMMER 2013  THE DARDEN REPORT


News Briefs: Global Grounds “Wherever we went, our goal was to understand the psyche of the place,” said Yiorgos Allayannis, associate dean of Darden’s Global MBA for Executives. “Everything we did was meant to discover how people in a culture think and how they make business decisions.”


fter six two-week residencies in Brazil, China, India, Western Europe and the United States and distance learning from around the world, executives in Darden’s inaugural class of the Global MBA for Executives (GEMBA) convened in Charlottesville on 19 May for a milestone occasion: graduation. “Darden is a special place, and the character of the School has traveled well,” wrote graduate Lewis Prebble (GEMBA ’13), vice president of customer business at Rolls-Royce, in a blog post for The Economist to describe the class’ journey to Paris and Berlin. In the post, he recounts challenging cases on currency hedging and mergers and acquisitions; a trip to Disneyland Paris to learn about operations, human resources, finance and accounting; a reception in Berlin hosted by the U.S. ambassador to Germany; and even a cooking class in Paris, where the executives learned to make croissants — from scratch. “The question with this new format was ‘Can we take Darden on the road?’” said Allayannis. “And we can confidently say after hundreds of cases, long hours of online learning and a passport full of stamps that the carefully curated and magical ingredients of the Darden MBA — the case method, the devoted, topranked faculty and our tight-knit community of global citizens — thrive just as well in Chennai and Sao Paulo as they do Above, from left: Class of 2013 members TS in Charlottesville.” Balaji, Lewis Prebble and Marcus Cunningham in Shanghai during the China residency. Below: The GEMBA participants learned Professor Yiorgos Allayannis leads a GEMBA how to enter and succeed in new class in Sao Paulo, Brazil. markets and how to innovate in a global context. They gained insights into how to manage uncertainty and risk and build successful joint ventures. They learned what it takes to lead a global enterprise. As the first graduating class of GEMBA walked down the Lawn of the University of Virginia, the second class packed its bags and adjusted its clocks, with the same goal of becoming Darden MBAs and global business leaders.

For more information about Darden’s Global MBA for Executives, visit




First GEMBA Class Graduates

Clinton Global Initiative University Awards U.Va. Students $10,000 Professor Mary Margaret Frank Mentors Winning Team Five University of Virginia students were awarded $10,000 by former President Bill Clinton in April for winning a nationwide competition to engage and educate college students about the federal government’s long-term debt. Darden Professor Mary Margaret Frank mentored the students who took part in the first-of-its-kind, six-week “Up to Us” competition. The competition was sponsored by the Peter G. Peterson Foundation, the Clinton Global Initiative University and Net Impact and was judged by a distinguished four-person committee. The competition judges singled out the U.Va. team for the impact of its innovative campaign. The team spent roughly 550 hours organizing 20 major events, including a rally at the Rotunda; a “HOOs Talking About the National Debt” discussion led by three faculty experts; a screening of I.O.U.S.A., a documentary film about debt; four Flash Seminars, each led by a U.Va. professor; a dinner on health care spending; presentations to classes and student groups; and a savings workshop. Of the team’s efforts, Frank said they “set the gold standard for how collaboration should be done at this university.” The U.Va. team plans to use the prize money to continue to engage college students on the debt issue by sponsoring policy- and debt-related internships and research in addition to establishing the first undergraduate Net Impact chapter.

Darden in Shanghai Ideas on China’s Culture, Consumers and Economy Emerge at Darden’s Second Annual Global Leadership Forum


hanghai’s altitudinous skyscrapers — symbols of the city’s status as China’s economic engine — overlook one of the world’s richest collections of British colonial, Victorian, neoclassical and Art Deco architecture. This setting, which juxtaposes the past with the future, positions Shanghai as an ideal setting in which to explore the processes and impact of globalization and to research and learn about the fast-growing country of China. From 10 to 11 May 2013, Darden held its second annual Global Leadership Forum in Shanghai, bringing together more than 100 people, including faculty, students, prospective students, alumni, and Asian business, government and academic leaders. The forum included case discussions, networking events, a behind-the-scenes tour of Walmart’s Shanghai supercenter and Coca-Cola’s bottling plant, an admissions and alumni reception — and even a First Coffee. Darden’s Global Advisory Council, a group of alumni who have significant experience in the global marketplace,


The third annual Darden Global Leadership Forum will take place in Shanghai, China, 9-10 May 2014. All Darden alumni are invited to attend. For details visit

met to advance the council’s mission to advise the School on its global activities and objectives through a day of strategic discussions led by Darden Professor Ming-Jer Chen. On Friday, 10 May, the School hosted the inaugural Darden Global Economic Forum, a public event that explored the Chinese and global economies. Darden Dean Robert F. Bruner, Senior Associate Dean for Degree Programs Peter Rodriguez and Professor Dennis Yang hosted an afternoon of lively discussion. Qiu Xin, CEO of Shanghai Media Group (SMG), one of China’s largest media groups, delivered the keynote address on the importance of the media to China’s cultural sector and how SMG addresses changing media consumption patterns. Darden alumnus Scott Price (MBA ’90), CEO of Walmart Asia, and Shaojian Zhang (MBA ’99), business manager of Rockwell Automation China, led a panel discussion on the growing Chinese consumer market, which underscored the importance of trust with consumers. Jerry Peng (MBA ’03), chief executive officer of Four Seas Capital Management, and Henry Skelsey (MBA ’84), co-founder and managing partner of

PRC Venture Partners, moderated a panel on China’s financial industry, which is seeing increased activity through new investment opportunities in China and acquisitions abroad. At the weekend’s gala dinner, the Darden community celebrated Leslie E. Grayson, co-chair of Darden’s Global Advisory Council and Isidore Horween Emeritus Research Professor of International Management. Professor Grayson joined Darden in 1971 and retired in 2003, and for more than 20 years, he oversaw Darden’s global programs and portfolio. In his “Dean’s Blog,” Bruner reflected on the forum in the blog post “Career Advice: Go Where the Competition Isn’t.” He wrote, “It’s refreshing to plunge into the business ecosystem here because of its buoyancy and optimism. Sure, there’s frustration with stateowned enterprises, bureaucracy, air pollution, corruption and government restrictions on freedom of speech. Yet this country is a magnet for global talent.”

Top: Professor Emeritus Les Grayson with alumni panel participants. Left to right: Shaojian Zhang (MBA ’99), Professor Grayson, Wei Jin (MBA ’99) and Jianzhong (Jimmy) Wei (MBA ’02) Bottom left: Qiu Xin, CEO of Shanghai Media Group, delivered the keynote address. Bottom right: Global Economic Forum attendees



News Briefs: Community


“Professor Susan Chaplinsky is passionate about her work, dedicated to her teaching, and incredibly deserving of this award,” said Second Year student Jeff Campbell in remarks during First Coffee to honor Chaplinsky’s All-University Teaching Award. “She built the entrepreneurial finance course from scratch — writing an entire new curriculum of cases and teaching notes. She loves this institution and she loves her craft — you couldn’t pick

someone more deserving of this award.” Chaplinsky is the Tipton R. Snavely Professor of Business Administration at Darden. The Teaching Awards Committee of the U.Va. Teaching Resource Center bestows the award annually upon nine full-time faculty members who have demonstrated teaching excellence, research and service achievements. In her remarks, Chaplinsky stayed true to her modest and collaborative nature. “Darden is a school of great teachers. I came here as a person interested in and dedicated to teaching and have learned a great deal about the craft of teaching as a member of the faculty. It’s an honor to be recognized as one of many great teachers and represent the best that Darden has to offer.” Greatly admired by students, Chaplinsky teaches the courses “Corporate Financing” and “Entrepreneurial Finance and Private Equity.” Last year, she received the Wachovia Award for Excellence in Teaching Materials — Innovative Case, and in 2007, Chaplinsky received the Outstanding Faculty Award.

“One Darden” Advisory Group Charts the Path Forward; Three New Executive Job Openings Announced In January, Darden convened a task force called the “One Darden” Advisory Group to review the School’s organizational design and chart the path forward. The formation of the group was sparked by the transition of Trip Davis (MBA ’94), who has served as president of the Darden School Foundation and senior associate dean for external relations since February 2011. In June, Davis will return to Dartmouth College, his undergraduate alma mater, as executive director of its new Office of Entrepreneurship & Technology Transfer in the provost division. Davis served as facilitator of the “One Darden” Advisory Group, which consisted of Darden School faculty and staff members; the dean; members, chairs and past chairs of the Darden School Foundation Board of Trustees; and Leonard Sandridge, retired chief operating officer of U.Va. The group recommended a set of actions, including three new executive leadership positions. “The Darden School is operating at a high level, here in Charlottesville and around the globe, through its MBA and Executive Education programs,” said Darden Dean Bob Bruner. “To build on the momentum, we are searching for executive leadership talent to help shape the School’s future.” The School announced the three new open positions in May: • Senior Associate Dean and Chief Operating Officer • Senior Associate Dean for External Relations • Executive Director for the Darden School Foundation and Strategic Relations The job searches will be conducted by a Darden School search committee. The University of Virginia’s Executive Search Group will assist on the chief operating officer position. For more information, visit Jobs@UVA.



Spring Accolades FACULTY AWARDS Outstanding Faculty Award: Professor Yael Grushka-Cockayne Graduation Faculty Marshals: Professors Robert M. Conroy and Luann J. Lynch Honorary Graduation Faculty Marshals: Professors E. Richard Brownlee II and Brandt R. Allen THE WACHOVIA AWARDS FOR RESEARCH EXCELLENCE Significant Publication in a Peer-Reviewed, Discipline-Based Journal Professor Francis Warnock Paper: “U.S. International Equity Investment and Past and Prospective Returns,” published in the American Economic Review Professor Richard Evans Paper: “Mutual Fund Incubation,” published in the Journal of Finance Significant Publication Aimed Directly at the Practicing Manager Professor Thomas Steenburgh Paper: “Motivating Salespeople: What Really Works,” published in Harvard Business Review Significant Publication in a Book Forum Professor Martin Davidson Book: The End of Diversity As We Know It: Why Diversity Efforts Fail and How Leveraging Difference Can Succeed, published by Berrett-Koehler Publishers

STUDENT AWARDS Theo Herbert International Award: Pedro Simoes 2013 Graduation Speakers (See page 20.) MBA: Jesse Rosenthal EMBA: Keith Krut GEMBA: Marcus Cunningham

Darden’s New Online Education Offerings Darden successfully launched its first two massive open online courses, or MOOCs, receiving impressive enrollment rates for Professor Edward Hess’ “Grow to Greatness: Smart Growth for Private Businesses” and Professor Michael Lenox’s “Foundations of Business Strategy.” The School will offer two new five-week MOOCs in partnership with the online learning platform Coursera this year.



PROFESSOR R. EDWARD FREEMAN PROFESSOR JEANNE M. LIEDTKA Begins 2 September 2013 Begins 4 November 2013

Freeman’s course offers a revolutionary perspective on the critical role that business plays in society. This course aims to create a global conversation among participants about exciting new models of business that are changing the way companies create value. It will feature interactive sessions, videos and prominent guest speakers.

Liedtka’s course addresses a popular new idea in the business world: design thinking. The aim is to demystify the design-thinking process and ignite entrepreneurial innovation through the use of design tools. Through a series of videos, assessments and workshops, participants will assess customers’ needs and develop a disciplined approach to innovation and growth.

PROFESSOR EDWARD D. HESS will offer his popular “Grow to Greatness: Smart Growth for Private Businesses” MOOC beginning 20 January 2014.

Professors Allen and Brownlee Retire Professors Brandt R. Allen and E. Richard Brownlee II retired from Darden following the spring 2013 school term. The two men, both professors of accounting, represent 81 years of history building, transformational teaching and enduring commitment to improving society through business education. BRANDT R. ALLEN, the James C. Wheat Jr. Professor of Business Administration, joined Darden’s Accounting area in 1970 and was hired during the tenure of Darden’s founding dean, Charles C. Abbott. During his tenure at Darden, Allen taught courses in accounting, information systems and general management, and he authored nearly 50 articles and books. His research interests spanned accounting and information systems strategy. Allen’s work also explored the impact of emerging technology on the transformation of companies. Allen served as Darden’s associate dean for Executive Education for 14 years.

E. RICHARD BROWNLEE II (fondly known as “Mr. B”), the Dale S. Coenen Professor of Business Administration, joined Darden’s Accounting area in 1975 and quickly began making his mark on the School. Brownlee taught courses in accounting and financial reporting. A former leader in Darden’s initiative on environmental sustainability, Brownlee also co-taught a course called “Business and Sustainability” with Professor Mark White of the McIntire School of Commerce. Brownlee authored several accounting textbooks, numerous cases and other teaching materials. In addition, he taught extensively in Darden’s Executive Education program in the areas of financial and managerial accounting, financial management and sustainable business practices. SPRING/SUMMER 2013  THE DARDEN REPORT



by Professor Mary Margaret Frank


How do you create a market for a life-saving consumer product when the population with the highest demand for it cannot afford it? THE SCENARIO: The Food and Drug Administration has approved Female Health Company’s secondgeneration female condom (FC2). Now the company must figure out how to get it to the markets where it’s most needed. In 2010, the World Health Organization cited HIV/ AIDS as the leading cause of death worldwide among women 15 to 44 years old. Senior Strategic Adviser Mary Ann Leeper and colleagues knew that the female condom provided life-saving empowerment to women. It is the only protection against HIV/AIDS controlled by women. The company had invested years developing the FC2. Its lower cost made it possible for more women to have access. Before the FDA approval, the company focused on developing a



global network by creating sustainable relationships with governments, public health sector groups, nongovernmental organizations and others. For example, in Zimbabwe, a relationship resulted in training more than 2,000 barbers and hairdressers in low-income areas to educate others on the use of female condoms, as well as to sell them. Thanks to the innovative public-private partnerships, distribution tripled in Zimbabwe in three years to more than 5 million units. That campaign served as a model for Guyana and Malawi. In the United States, the number of women living with HIV tripled over the past two decades. HIV was the third-leading cause of death for black women 25 to 44 years old. Through its efforts in the developing world, the company realized that it needed a “village” to reach those most in need. Washington, D.C., with the nation’s highest rate of HIV/AIDS, was the most pressing area to reach. The infection rate was most disturbing for heterosexual African American women in the District’s poorest areas. How could the company reach these women and ensure sustainable growth and returns for investors?

Education Group, Our Place DC, Planned Parenthood of Metropolitan Washington and the Women’s Collective. The company trained the peer educators in these programs. CVS sold the product at 56 stores in the District. Each city’s partnership has a unique personality, but the common thread is the emphasis on education and training.

THE LESSON: For their strategy

to introduce the female condom to U.S. cities, Leeper and her colleagues took a lesson from the streets of Zimbabwe. Communities with severely limited resources often find innovation through cooperation. As U.S. businesses compete to establish their presence in the innovation age of science and technology, they should also look for innovations in cooperation often found in societies with the most primitive means.


company created key public-private partnerships in cities across the country. The first partnership was in the District through the D.C. Female Condom Initiative led by the Washington AIDS Partnership and funded by the MAC AIDS Fund. The District’s health department led the community outreach and training programs with the help of Calvary Healthcare, Community

Every other Sunday in The Washington Post’s Business section, Darden professors share lessons from recent cases. Mary Margaret Frank (above) is associate professor of business administration at the University of Virginia Darden School of Business and serves on the board of directors of the Female Health Company.


The Home Depot is proud to support The Darden School in its quest for excellence and its focus on building a better tomorrow by developing expertly trained and highly skilled leaders.





By Darden Professors Jared Harris and Michael Lenox Darden Business Publishing Strategy is essential to every organization, and an adept strategist must analyze how an organization can effectively position itself to maximize value for its stakeholders. In their book, due out in July, Professors Harris and Lenox offer a set of tools to help those interested in analyzing the strategy of organizations, whether their own or the competition’s. Jared Harris and Michael Lenox

SolvIng ProblemS wITh DeSIgn ThInkIng stories of what works


Jeanne M. Liedtka, Andrew King and Kevin Bennett Columbia Business School Publishing As design thinking gains popularity, professionals of all levels may wonder how to execute the theory to spur innovation. In her latest book, due out in August, Professor Liedtka shares the stories of 10 organizations that are using creative approaches to turn abstract ideas into practical applications in the worlds of business, government and the social sector. Jeanne Liedtka, andReW kinG and keVin Bennett


BOOKS BY ALUMNI THE TEN-DAY MBA By Steven A. Silbiger (MBA ’90) HarperCollins Publishers Its fourth edition updated to address issues in today’s rapidly changing business world, The Ten-Day MBA boils down business essentials taught in the world’s leading MBA programs. With clearly communicated lessons, the book serves as both a refresher for business school alumni and a resource for those who haven’t attended an MBA program.

THE FORGETFUL GENTLEMAN By Nathan Tan (MBA ’09) Chronicle Books How can contemporary gentlemen bring their mannerly ambitions to fruition? In this book, the author, who is founder and CEO of The Forgetful Gentleman stationery and accessories company, offers advice on turning nice ideas into genteel action. The book provides insights into a range of modern matters, from navigating social networks to the art of conversation to choosing the right suit silhouette.

DARDEN BUSINESS PUBLISHING: FIVE NEW CASES 1. “Livestrong: Cycling Around Lance Armstrong” by Erika James and Jenny Mead 2. “PACEM and Madison House” by Sherwood Frey, Lucien Bass and Max Grant 3. “Adam Burke and PBM Plastics: Message in a Bottle” by Elliott Weiss and Gerry Yemen 4. “Altamar Brands and Absinthe: Feeding ‘the Green Fairy’” by Marian Moore and Brooke Correll 5. “Chick-Fil-A: A Bird of a Different Feather” by Paul Simko, Paul Farris, Virginia Weller and Peter Gerardo Darden alumni enjoy free access to the Darden Case Collection. For more details, e-mail



The Times of India 17 DECEMBER 2012 “Who Is the Best of All” by Matt Symonds n In the article “Who Is the Best of All,” Darden’s spot in the Top 10 of Bloomberg Businessweek’s “Best B-Schools” list is attributed to teaching quality and student satisfaction. PBS NewsHour 17 JANUARY 2013 A segment titled “How Social Entrepreneurs Use Rice Husks to Fuel Micro Power Grids in India” by Fred de Sam Lazaro n Developed in the Darden Business Incubator by alumni Charles Ransler and Manoj Sinha (both MBA ’09), Husk Power Systems is featured in PBS NewsHour’s “Agents for Change” series. The Washington Post’s Capital Business 24 MARCH 2013 “Business Rx: Advice on Giving Advice” by Robert F. Bruner n Drawing on his years as a decision maker and recipient of advice, Darden Dean Bob Bruner notes that “good advising is a rare talent that is learned” and offers tips on honing that talent. Forbes 29 MARCH 2013 “The Imminent Shakeout? Disruptive Innovation and Higher Education” by Michael Lenox n Professor Michael Lenox discusses what technology means for higher education and suggests how massive open online courses (MOOCs) and the traditional university experience will coexist and evolve. The Wall Street Journal 29 APRIL 2013 “If You Want to Beat ’Em, Join ’Em” by Barbara Haislip n Professor Greg Fairchild discusses how competing small companies join forces to gain market advantage. Los Angeles Times 4 MAY 2013 “Sprinkled With Smarts” by Tiffany Hsu n Darden alumnus Charles Nelson (MBA ’96) and his wife, Candace, discuss their journey from investment banking to cupcake royalty in the article “Sprinkled With Smarts.” Financial Times 12 MAY 2013 “Bob Bruner of the Darden School at the University of Virginia” by Della Bradshaw n In the Financial Times Executive Education special report, Dean Bob Bruner is profiled as a dean who “has made a bit of a name for himself in business dean circles.”

It’s a BIG world. It needs BIG ideas. Eastman is proud to support the Darden School of Business. As a global specialty chemicals company, we’re honored to invest in programs that help find practical solutions to the world’s most complex issues. Today, the world depends on our insights to create materials that are in just about everything—from the screen on your PC tablet to the sheen on your aspirin tablet. And our global community of approximately 13,500 employees continues to pioneer the innovations that lead to practical solutions— with safety and sustainability at the forefront. What could you do if we put our heads together? Rather, what couldn’t you do?

Start the conversation at

Eastman and The results of insight are trademarks of Eastman Chemical Company. © 2012 Eastman Chemical Company 0208-AD-12 10/12




Did you know that you can support Darden through your estate planning? Planned gifts from alumni, faculty and friends make it possible for Darden to deliver on its bold mission of improving the world by developing and inspiring responsible leaders and by advancing knowledge. The variety of available planned giving options gives you the ability to satisfy your financial goals while helping Darden prepare a new generation of leaders.


To learn more about how a planned gift might fit into your overall giving plan, please visit or contact Carter Hoerr, Executive Director for Advancement at the Darden School of Business, at +1-434-924-6576 or The Darden Office of Advancement mailing address is P.O. Box 7726, Charlottesville, Virginia 22906 USA.


“I think business and capitalism have

a public relations image problem. … It’s really a shame, because how many of you would love to be an entrepreneur? And how many of you would like to be a capitalist? Nobody wants to be a capitalist. … Capitalism is the most efficient and the most wonderful way to move goods and services ever created by mankind. … You can do well by doing good. Business is such a powerful force.”


“While you are waiting for the brain to get its act together, do what you can do. Do the doable. Meet with people, schmooze, have a laugh or two. Build mock-ups and prototypes. At the very least, collect other people’s problems. That’s always a guaranteed doable.” —PROF. SARAS SARASVATHY, ON HOW TO BRAINSTORM USING EFFECTUAL ACTION RATHER THAN CAUSAL REASONING IN THE WALL STREET JOURNAL ARTICLE “HOW ENTREPRENEURS COME UP WITH GREAT IDEAS.”


“The main reason I spearhead micro-lending is equity. In Charlottesville, if you don’t have a college degree, you’re not going to move up. You’re going to be stuck. So how do you get out of that ceiling? You start your own business. Unfortunately, if you don’t have a house or asset to collateralize, you’re not going to get a loan.” —TOAN NGUYEN (MBA ’94), OWNER OF C’VILLE COFFEE AND FOUNDER OF THE COMMUNITY INVESTMENT COLLABORATIVE, SPOKE AT DARDEN DURING UVA’S COMMUNITY MARTIN LUTHER KING CELEBRATION AT DARDEN.

“Many people believe great leaders are charismatic, have a commanding presence, are visionary and educated at elite schools. Almost all of the leaders of the high-performing companies that I studied had none of those traits. Instead, they are what I call servant leaders.” —PROF. EDWARD D. HESS FOR THE WASHINGTON POST CAPITAL BUSINESS ON HIS HIGHLY SUCCESSFUL DARDEN EXECUTIVE EDUCATION COURSE, “SERVANT LEADERSHIP: A PATH TO HIGH PERFORMANCE,” WHICH WILL BE OFFERED AGAIN 10–15 NOVEMBER.




by Jacquelyn Lazo

From the Chinese Cultural Revolution to the Darden Classroom:


Career as a Global Economist


ennis Yang did not become a well-respected global economist by accident. His interest in economics began at a young age. By the time Yang graduated from high school, he had written a thesis on Chinese tax reforms — one that would ultimately serve as the precursor to his dissertation in economics. But perhaps Yang’s dogged pursuit of an economics career began in his tumultuous childhood, not through his schooling. Yang grew up in the shadow of the Chinese Cultural Revolution, which broke out under Chairman Mao Zedong in 1966. Thousands of highly educated individuals were targeted for “reeducation” programs, and Yang’s family was forcibly displaced to a camp in the Chinese countryside in 1969, when Yang was only 3 years old. Yang was struck by the impoverished rural Jiangxi province to which his family had been relocated. “When a car passed by the village, dozens of children, all naked, would run after it amid a thick cloud of dust because they had never seen one before,” he recalled. “There, I got a sense of what poverty was about, and that left an impression on me.” His early observations on the rural-urban disparities are later reflected in his research on the role of structural transformations in the process of economic development. During the second half of the Cultural Revolution, Yang’s family was able to return to Beijing. After Mao’s death in 1976, China transitioned from a central planning system to a market-based economy. Yang witnessed this transformation and began to “realize that economic reforms are refreshing and powerful, and that they result in profound changes to society.” In high school, Yang was one of only two Chinese students chosen to study at the new branch of the United World College in Trieste, Italy.



Through the lens of his experiences in China, Yang examines the mechanisms of economic growth and the roles human resources and public policy play in global economic development. There, he had the unique opportunity to take an economics elective and earned an international baccalaureate degree. Yang went on to earn a Bachelor of Arts in economics from the University of California, Los Angeles, in 1987. Seven years later, he graduated from the University of Chicago with a Ph.D. in economics. Yang’s childhood experience is closely related to one of his core research objectives, which is to dissect what had happened to the Chinese economy as a result of institutional reforms and use the takeaways from this research to benefit other emerging economies.

China: A Laboratory for Studying Growth Through the lens of his experiences in China, Yang examines the mechanisms of economic growth and the roles human resources and public policy play in global economic development. Although he has a deep, personal connection to China, he is able to view the country objectively: China’s “profound institutional transformations” in the past three decades make the country “an ideal laboratory for studying development,” he said. Yang has worked as a consultant for international organizations such as the World Bank and the State Council of China and hopes that his research will influence developing market-based economies. Yet Yang is profoundly humble, attributing part of his triumphs to “luck.” In his professional development statement for Darden, he wrote, “I would like to enhance my capacity for research relevant to public policy and business as well as impart knowledge as an outstanding teacher.” For many, Yang’s successful career as a researcher and a professor is evidence that he has already achieved these aspirations. But for Yang, past successes are not sufficient. His ongoing efforts to achieve greatness speak to his personal determination and modest demeanor.

Teaching in Classrooms Around the World In pursuit of academic excellence, Yang has served on the economics faculty at several high-caliber institutions around the world. He began his teaching career in 1993 as an assistant professor at Duke University before joining the economics department at Virginia Tech, where he served as an associate professor and professor. In 2007, Yang returned to Asia to teach at the Chinese University of Hong Kong until 2012, when he accepted a professorship at Darden in the area of Global Economies and Markets. He has received numerous accolades throughout his teaching career, including the Undergraduate and Graduate Teacher of the year Award in Virginia Tech’s economics department. He has also been recognized by well-established organizations: Earlier this year, he was elected to become the president of the Association for Comparative Economic Studies. At Darden, Yang teaches two core First Year full-time MBA Global Economies and Markets courses and a twoweek Global MBA for Executives (GEMBA) course in Shanghai and Beijing. In term two of his full-time MBA course, he concentrates on macroeconomic analysis with an emphasis on fiscal and monetary policies as they pertain to the United States and other countries in the Organisation for Economic Co-operation and Development. In term four, Yang focuses on the economic growth and policy compliance of firms in emerging markets such as China, India, South Africa and Chile. He often applies a general economic framework when analyzing a historical case study in the context of an economy.

Uncovering Opportunities

tional reforms play in how market-based systems generate rapid economic growth in a short period of time. China, where he traveled with GEMBA’s first graduating class in May, is the most poignant example of this kind of economic transformation. “The students had the opportunity to feel the pulse of dynamic growth in China and study the fast-changing financial, labor and real estate markets,” said Yang. Intertwining his institutional knowledge about the Chinese economy with technical notes, complex economic models and case studies enabled him to provide his students with a well-rounded understanding of the largest developing country in the world. By engaging in a transformed economic environment firsthand, Yang hopes his students will acquire a passion for uncovering opportunities within a myriad of challenges. “Everyone will face challenges,” Yang said with a kind smile, “but with a passion for the type of work you do, overcoming the challenges will be part of the enjoyment.”

Yang’s research also informs his classroom discussions. He encourages his students to contemplate the role instituSPRING/SUMMER 2013  THE DARDEN REPORT



In “How Tweet It Is,” BizEd magazine ranked Darden the No. 4 B-school making the most of social media.

1 2 3 4 5


According to Professor Pedro Matos, who explains his findings in his Review of Financial Studies paper “Are U.S. CEOs Paid More? New International Evidence.” Matos and his colleagues discovered that American and international CEO salaries are comparable due to the fact that many U.S. CEOs earn a higher portion of their pay based on the value they create for shareholders.


Harvard Business School, Harvard University The Wharton School, University of Pennsylvania Haas School of Business, University of California, Berkeley Darden School of Business, University of Virginia Columbia Business School, Columbia University



In 2025, an estimated one out of every two families in Tunisia will know someone with Alzheimer’s disease. A select group of Darden Second Year MBA students teamed up with peers from the Mediterranean School of Business to develop business plans that bring support to families facing Alzheimer’s in Tunisia through a fall 2012 Global Field Experience (GFE). GFEs are Darden electives geared toward corporate social innovation that deploy the talents and passions of Darden students to locations around the world.




ROLLSROYCE IN: Vietnam China Brazil

MARS IN: London Moscow Australia


Do people tend to spend less than they could in their retirement years? “[People] plan to spend less at 65 years of age and spend more money when they are in their 80s. With this type of spending delay, individuals risk not getting to spend as much as they might like during their lifetimes,” says Darden Professor Samuel Bodily, who teamed up with Darden colleague Professor Casey Lichtendahl to develop a better consumption planning model.

2,875 With 2,875 active cases in its library, Darden Business Publishing is the second largest academic business case publisher in the nation, behind Harvard Business Publishing. All Darden alumni have free access to the Darden Case Collection.

696 alumni


319 guests


Alumni participation also increased from


five years ago to


In April, more than 200 Darden students rehabilitated eight houses in Charlottesville with the Building Goodness Foundation.



This statistic is one of many Professor Melissa Thomas-Hunt shares as part of her expertise in team dynamics on, a new online learning community for women launched in conjunction with Facebook COO Sheryl Sandberg’s controversial new book Lean In: Women, Work, and the Will to Lead.



Graduation 2013

Go Forth and Make a Difference! Elected Student Speakers

Marcus Cunningham III (GEMBA ’13)

Keith A. Krut (EMBA ’13)

Jesse I. Rosenthal (MBA ’13)

Global MBA for Executives “We have taken Darden on the road, around the world, in a brand new program and lived to tell about it. Unlike Las Vegas, what happens in Rio doesn’t stay in Rio. It fortified what we learned in China and France and India and Germany … and before we knew it … As one of my classmates recently said throughout all these travels, our love for one another tripled. It must have been Paris.”

MBA for Executives “Our companies need Darden leaders. Our communities and our countries need them. The future will be defined by those who make the most meaningful, the most diverse, the most innovative connections. It now falls to us to push each other and to bring Darden to those who haven’t shared this experience. So let’s go out and ask the difficult questions. Let’s connect. There’s work to do.”

Cunningham is a consultant with Whitney, Bradley, and Brown Inc.

Krut is the director of Strategic Workforce Planning and Human Capital Strategy at the National Geospatial-Intelligence Agency.

Full-Time MBA “At the end of graduation speeches, the speaker often exhorts the audience toward action. ‘Don’t ever compromise your dreams!’ I might say. … But that’s not really what I want to say. I want to echo what Babe Ruth said, ‘The way a team plays as a whole determines its success. You may have the greatest bunch of individual stars in the world, but if they don’t play together, the club won’t be worth a dime.’ We play together here, and you know what, we play damn well.”

On Main Grounds: No. of Schools at U.Va.:

No. of People in Attendance:



Degrees Conferred:

International Students:

6,363 22



Rosenthal is a future consultant with Bain & Company.

2013 U.Va. Valedictory Address Stephen Colbert Co-writer and executive producer of Comedy Central’s Emmy and Peabody award-winning series The Colbert Report “Early this morning, I had a tour around your beautiful campus, and I asked myself, ‘Why are you leaving?’ … This could be the most spectacular place you will ever live. It is the only campus in America to have been designated a UNESCO World Heritage site. … You’re not going to top these living conditions unless your post-college plans involve subletting the Taj Mahal.”

The University of Virginia’s 184th Final Exercises and the Darden School of Business’ 57th Commencement Exercises took place Sunday, 19 May 2013. More than 2,500 people gathered at Darden for the graduation of more than 380 students, including the first class of Darden’s Global MBA for Executives. Darden Dean Bob Bruner presided over the ceremony. See “From the Dean” on page 3 for an excerpt of his remarks. Graduation Coordinator

Elected Faculty Marshals

Kitty Smiley

Robert M. Conroy

Luann J. Lynch

Darden Registrar Smiley flawlessly handles all aspects of Darden graduation. This year marked her 40th year in the role as de facto graduation coordinator. She manages the “show flow,” monitors the weather and directs the volunteers who arrange caps, gowns, chairs and — of course — diplomas. She has seen it all. Smiley said, “One day, I’m going to write a book about graduation!”

J. Harvie Wilkinson Jr. Professor of Business Administration

Professor of Business Administration “Onward and upward. May you always find comfort knowing that you have a solid foundation on which to build your bright future. Best wishes.”

“The last two years have been filled with great times and great memories. However, I hope that what you take from here is more than just memories. The great Irish poet William Butler Yeats said it best, ‘Education is not the filling of a pail; it is the lighting of a fire.’ “I hope that your experiences here have lit a fire by enriching you with ideas and inspiring you to action. So your final assignment is to go forth and do great things.”

2013 U.Va. Commencement Address James Henry “Jim” Webb Former U.S. Senator and Secretary of the Navy, decorated Vietnam War veteran and successful journalist, filmmaker and author “It’s not an exaggeration to say that, by graduating from this historically revered institution, each one of you has already passed through a gateway that allows immediate entry into the best that America has to offer. … The truth is that in America, the mere act of graduating from this institution has put all of you on a fast track.”

Campaign for the University of Virginia Exceeds Its $3 Billion Goal Teresa A. Sullivan President of the University of Virginia “In October 2006, under the direction of my predecessor, John Casteen, and with the backing of the Board of Visitors, the University officially launched the most ambitious capital campaign in the history of public higher education, with a goal of raising $3 billion to support the people and programs of the University. All of us who care about this University and its future are incredibly grateful to everyone who has made the success of this campaign possible.” SPRING/SUMMER 2013  THE DARDEN REPORT


Let the Customers Find You:

Professor Thomas Steenburgh on HubSpot’s Inbound Marketing Revolution











“The new model of selling is more like fishing for customers rather than hunting. It’s becoming more important JKLto drop the line in where you think the fish will be.” — Professor Thomas Steenburgh




hen Darden Professor Thomas Steenburgh was a teenager, he spent a long summer cold-calling prospects for donations to a local charity. Donors received tickets to a circus. OPERATOR

“That was a tough job, calling people blind and trying to get them to donate,” recalls Steenburgh, who joined Darden’s marketing faculty last fall as the John L. Colley Associate Professor. Steenburgh’s days working the phones came long before caller ID and “do not call” lists allowed customers to block marketers from calling their homes. Along with the Internet, these changes have forced companies to think about how best to attract new customers — and sparked a new type of marketing. “The new model of selling is more like fishing for customers rather than hunting. It’s becoming more important to drop the line in where you think the fish will be,” Steenburgh says. One of the companies behind this strategy is the software firm HubSpot Inc., based in Cambridge, Massachusetts. A case Steenburgh cowrote on HubSpot features in both his First Year MBA marketing course and a new Darden Executive Education program he will teach with Professor Robert Spekman called Strategic Sales Management. The Darden Executive



Education program is designed to help executives transform their sales organization into a strategic asset that provides sustainable, long-term growth. Steenburgh and Spekman will offer participants insights into how to use a more integrative approach to linking the go-to-market strategy with the overall organizational strategy and how to effectively align sales activities with the firm’s strategic goals.


like yours, because they are the most likely to buy what you’re selling. Make the customers come to you, rather than dousing them with television ads or direct mail they don’t want. “Halligan and Shah think you should be drawing people in to your website by creating engaging content and making yourself into a thought leader,” explains Steenburgh. For instance, an online retailer selling office supplies could use HubSpot’s software to manage its Facebook, Twitter and other social media accounts. As its follower count grows, the company would increase its reach, allowing more potential customers to learn about its products. Marketing staffers could also use HubSpot to manage a blog about new products as they become available, and search-engine optimization techniques would ensure that they used the most effective keywords in their posts and videos. Customers who searched the Internet for “binder clips” or “manila folders” would see links to the retailer’s site. The crucial differences between


Attract the Right Customers One of the strategic approaches Steenburgh will highlight in his new Darden Executive Education program is “inbound marketing,” a concept created by HubSpot founders Brian Halligan and Dharmesh Shah after they launched their company in 2006. The duo designed their software to help businesses create a Web presence that lets customers find the company on their own, lured by blog posts, Web searches, videos, contests and social media connections. The point: Attract only the customers who are already looking for products







this marketing strategy and traditional methods are that only customers who look for office supplies will see the company’s material online, and the innovative, unique nature of the advice the company offers will be a key factor in convincing these customers to buy their pens and paper there. Inbound marketing highlights the importance of Web searches, which virtually all prospective customers now use to collect information before buying something. Steenburgh contrasts this with his days at Xerox, when customers considered salespeople experts. Back then, he remembers, a customer comparing copiers would call a Xerox salesperson to learn about different models. Today, the same customer would “come armed with a mountain of research” before approaching Xerox for a quote, he says. HubSpot’s approach works best for business-to-business companies, Steenburgh notes, though it also earns returns for business-to-consumer firms that use the company’s software to generate a higher volume of sales leads. According to HubSpot, inbound marketing rewards “the size of your brain over the size of your wallet.” The company’s clientele includes 8,400 small, big and multinational businesses that use inbound marketing tactics to increase their digital presence. The privately held firm has raised $100 million since its inception, including $35 million in mezzanine funding in 2012. Backers include Google Ventures, and Sequoia Capital. The company’s revenue — $52.5 million in 2012 — grew 82 percent over the previous year’s, according to HubSpot’s annual financial results. That makes the firm several times larger than when Steenburgh originally conducted research for his case on the company. How the Culture of Selling Is Changing Steenburgh’s work on HubSpot tracks his larger research theme: “How the culture of selling is changing.” This interest goes back to his earliest days working at Xerox, he says.



What Is Inbound Marketing? The concept behind “inbound” marketing is to attract customers who are already looking for the kind of products or services you offer, because they are the most likely to buy them. This works particularly well for small and midsized companies with limited marketing budgets. Businesses trying to attract customers have long relied on cold-calling, direct mail and mass advertising via newspapers, magazines and broadcast media. These “outbound” techniques work — that is why Super Bowl ads cost $3.8 million for a 30-second spot — but they cast an overly wide net with what Darden Professor Thomas Steenburgh calls “interruptive marketing.”

Steenburgh grew up in the small upstate New York town of Auburn and dreamed of becoming an academic like his father, who taught science at a small community college. After getting his undergraduate degree in mechanical engineering from Boston University, Steenburgh enrolled in the Ph.D. program at the University of Michigan but realized he wasn’t ready to commit to that many years of graduate school. Instead, he earned a master’s degree in statistics at Michigan and then took an operations job at Xerox at the age of 23. He was following the example of several of his uncles, who held top roles at local industrial giants such as Xerox and Kodak. At Xerox, Steenburgh moved from operations to finance to sales incentive planning. “By the time I left, I was developing and managing the sales incentive strategy for the U.S. sales force,” he says. “We spent a third of a billion dollars on 4,000 salespeople, and they were not shy about telling you where they thought you screwed up. What I learned from that job is still very useful in my teaching and research.”

Steenburgh decided to look at sales strategy from an academic standpoint, leaving Xerox to pursue a Ph.D. in marketing from the Yale School of Management, where he wrote his dissertation on direct marketing and sales. Steenburgh then taught at Harvard Business School until 2012, when he accepted a position at Darden, where he plans to continue focusing on sales dynamics and incentives. Setting compensation plans for salespeople can dramatically affect how a product gets sold, he explains. “When you design a sales incentive contract, most people think of just their top performers,” he says, “but you need to design elements for mid- and low-performers, too — both carrots and sticks. You need to design plans that keep everyone engaged.”

Executive Education

NEW PROGRAM STRATEGIC SALES MANAGEMENT 3–6 February 2014, Washington, D.C. FACULTY: Professors Thomas Steenburgh and Robert E. Spekman Strategic Sales Management is designed to help executives transform their sales organizations into strategic assets that provide sustainable, long-term growth. Participants will gain a clearer understanding of how to align sales activities with the strategic goals of the firm and how to manage the tension that exists between marketing and sales, as well as gain a greater appreciation of the need for a more integrative approach to linking one’s go-to-market strategy with the overall organizational strategy and for developing comprehensive sales strategies. For program details, go to


Time for a New Era of Leadership


recent report from the World Economic Forum (WEF) describes a global landscape that includes environmental, geopolitical, societal and technological interconnectivity. The WEF report indicates that with every point of connectedness comes a concomitant set of global risks and challenges: water supply crises, severe income inequality, terrorism, cyber attacks, antibiotic-resistant bacteria and climate change. While these and other major challenges are currently visible on the horizon, more continue to emerge. Many companies are creating a new narrative for leadership in business to address the concerns. Whether it is solving an intractable problem, addressing complex societal issues or simply making our lives better, business has shown it can take the lead. Often by working collaboratively with governments and nongovernmental organizations, the institution of business can move society in a positive direction. At its best, business creates long-term, sustainable value through innovative products and services that improve people’s lives. The new era of globalism and connectivity demands a new era of leadership in business, government and society. This has not gone unnoticed by forward-thinking business leaders. In a Financial Times interview, The

Coca-Cola Company CEO Muhtar Kent declared, “As we strive to make a positive difference in the world, we now work with ‘golden triangle’ partners across business, government and civil society.”


imilarly, MeadWestvaco CEO John Luke recently addressed MBA students at the University of Virginia Darden School of Business and offered the following insight: “While government engagement will be important, business leaders must take a strong lead in regaining public trust. Chief among their actions should be to demonstrably revisit the vital role that they and their companies, large and small, play as an integral part of

our social fabric, and, in doing so, resolve to engage more proactively in communities where they operate and commit to act ethically and responsibly in all dealings, shunning those who do not.” As our most global institution, business can be a powerful force for peace and prosperity. To reach its potential to improve the world, business needs visionary leaders. Business schools and business leaders must join forces to actively prepare leaders for the new era of leadership in business, government and society. To meet this challenge, the Darden School has launched the Institute for Business in Society (IBiS). The mission of IBiS is to be a foremost global catalyst of thought, information and action on business’ role in society — and to prepare leaders to positively affect society through business. IBiS accomplishes this mission by creating an interchange between the thought leadership of scholars and the leading practices of companies and industries. Producing and developing a new cadre of leaders who function skillfully in a complex and global world, however, will not be realized by any single institution. This should be the collective aspiration of business educators and business leaders across the globe. Never has the need for effective leadership been more pressing. Never has the opportunity been greater for business leaders to build trust than by meeting the global challenges we face. —Dean Krehmeyer (MBA ’99)

Dean Krehmeyer is executive director of the Institute for Business in Society. A version of this article first appeared in the Commentary section of the Richmond Times-Dispatch on Sunday, 24 March 2013.



BATTLING the BIG DRY Professor Peter Debaere Explores the Value of Water

The parched earth cracks in the sunshine. Nothing green grows for miles, and the farmer who owns the land sold his starving sheep to save them. Dust storms tear across the barren landscape, and a fire scorches a stubbled wheat field in the distance. This is not a description of sub-Saharan Africa. This is Australia, not even 10 years ago.






“The Big Dry,” which began in 1997, was an epic, decade-long drought that devastated Australia. Crops failed, economic growth slowed by 1 to 2 percent, and according to The Economist, the region of Australia that accounted for 40 percent of the country’s agriculture and 85 percent of its irrigation was on the verge of ruin. Help lines and suicide prevention groups were formed as the national suicide rate doubled. The country’s hope deteriorated rapidly as the significant economic, environmental and psychological consequences of the drought became increasingly apparent. Droughts are not uncommon in Australia, which is the driest inhabited continent on earth. The recession that resulted from the Federal Drought of the late 1890s and early 1900s spurred the creation of Australia’s commonwealth (which had until then been divided into six states). The Big Dry — considered the worst drought in the country’s recorded history — also had radical consequences. Australia was forced to reexamine its water supply management systems, leading the

Australia’s water market serves as a successful road map for other countries, and many researchers agree that other countries should take heed in the face of global warming and concerns about water distribution and scarcity. country’s politicians to establish a set of principles to efficiently manage the scarce resource. Thus, the Australian water market was born.

AUSTRALIA: A TEST CASE FOR OTHER WATER MARKETS Water markets are industries in which buyers and sellers exchange the rights to temporarily or permanently use water. In addition to Australia, water markets exist in Columbia, Chile, South Africa and the western United States. Darden Professor Peter Debaere says well-designed water markets help ensure the resource is conserved, used efficiently and priced fairly. Poorly constructed markets often lead to such problems as social inequity and ecological damage. “The Big Dry and its widespread impact furthered a debate in Australia about the country’s water management and supported increased development of its water markets,” says Debaere, an international economist with a focus on trade, trade policy and multinationals. According to him,



Australia “has become a test case for how to create water markets internationally. The country has one of the most advanced water markets in the world.” Australia’s water market serves as a successful road map for other countries, and many researchers agree that other countries should take heed in the face of global warming and concerns about water distribution and scarcity.

“WE NEED PEOPLE TO START THINKING ABOUT WATER MARKETS” Debaere began his water market research by examining to what extent water availability determines production and trade patterns around the world. He based this research on the assumption that in countries where water is scarce, the government would import water-intensive products and goods — but Debaere discovered that this is not always the case. He found that water isn’t one of the principal determining factors in what is or is not produced in certain regions of the world. Water is almost universally inexpensive, so businesses and governments tend to look to obvious costs such as labor and the availability of land when establishing a market. “Sometimes cotton is being produced in almost desert-like circumstances,” Debaere says. “In Los Angeles, you see green vegetation in a very arid circumstance.” Such lush growth exists because historically, water was managed through engineering; dams, canals and irrigation systems supplied water to dry regions of the world. But Debaere says a recent shift has occurred, stemming from the concept of how to allocate water more efficiently through water markets. “Water is in everything we do,” Debaere remarks. “It is part of global production and trade. To get cities to function and businesses to operate, you have to provide water. We need people to start thinking about water markets.” It is precisely because “water is in everything we do” that we need to better understand why water scarcity is a reality and not simply a myth. A LIMITED RESOURCE The earth is made up mostly of water. According to the Environmental Protection Agency, water covers approximately 70 percent of the earth’s surface. Though this sounds abundant, less than 1 percent

Although water covers approximately 70 percent of the earth’s surface ...

of all water is actually available for humans to use. Statistics paint a bleak picture. According to Katherine Neebe (MBA ’04), a Darden alumna and the manager of business and industry for the World Wildlife Fund, 1.1 billion people internationally lack access to water. Beyond that, 2.7 billion experience water scarcity for at least one month a year, and 2.4 billion people get sick from inadequately sanitized water every year. But Debaere says that if you add up all the water humans require and compare it with what is available, more than enough exists to fulfill the need. The problem is not an overall lack of water — some areas even have an overabundance. “The key problem really is distribution,” he explains. “There is unequal distribution of water across the globe. … There is an uneven availability of water, and looking forward, we already see that stress on water resources is going to increase.” Debaere says that three main issues will tax water resources in the future. The first is population growth: more people means a greater need for food and water. The global population is estimated to grow by 2 billion people by 2050. Measures will have to be taken today to reduce the scarcity resulting from such immense growth. Second, as developing countries get richer, their populations’ eating habits tend to evolve. People in richer regions often eat more meat, which requires more water to produce than vegetables do. The third factor is climate change, which will deplete some of the world’s water resources. As precipitation patterns alter, areas that are already stressed will encounter immense challenges. Places that already experience droughts will likely face longer and more frequent ones in the coming years. In some areas, snow packs and glaciers are melting and becoming floods. Half of the world’s wetlands are drying up. All the while, more people depend on these glaciers and other natural resources for water.

WHAT IS THE VALUE OF WATER? “Water is an interesting beast, because every single organism depends on water to survive,” Neebe notes. “It is unique, but it makes it tricky — in the United States, we think of water consumption as using up a product. … We use a gallon of gas in the car to get from point A to point B, and then it is gone. But water isn’t like that.”

Agriculture consumes 70 percent of the world’s fresh water.

less than 1 percent of all water is actually available for humans to use.

Only 3 percent of the Earth’s water is fresh water. The other 97 percent is salt water.

American residents use approximately


billion people lack access to water



of water per day



Residents of developing nations use approximately

people experience water scarcity for at least one month per year




of water per day

billion people get sick from inadequately sanitized water each year

Americans use more water each day by flushing the toilet than they do by showering or any other activity.


billion people live in countries with absolute water scarcity

SOURCES: United States Environmental Protection Agency; UN-Water. SPRING/SUMMER 2013  THE DARDEN REPORT


One of the reasons water is an unusual commodity is that it’s not finite like oil. Someone can take a shower, and the water goes down the drain, but it could still be used to water the garden or irrigate crops, Neebe says. Water has additional challenges that other

“Water is in everything we do,” Debaere remarks. “It is part of global production and trade. To get cities to function and businesses to operate, you have to provide water. We need people to start thinking about water markets.” commodities do not. The ocean is replete with salt water, but converting it into drinkable water — which is called desalination — is a “very, very energy-intensive process,” Debaere says. Clean energies such as solar power could be used for desalination but are relatively cost prohibitive. And moving water from one place to another isn’t always feasible — the resource is very heavy and, unlike oil, isn’t worth much money to the transporter. Debaere and his colleagues have been researching what experiencing intense water scarcity means for some places. How does an overall lack of water affect farming, the availability of drinking water, food prices, trade and business? “The broader issue is that we care about the environment we live in and want to be good stewards of it,” Debaere says. “As an economist, I want to make sure we actually value the resources and we price the resources properly. If resources aren’t valued enough, there is overuse, and we want to avoid that.”

“THE TRUE COST OF WATER IS COMPLETELY VARIABLE” Two primary components of water markets are price and ownership. Both of these factors vary greatly from region to region. In the eastern United States, Debaere says, water is typically owned through riparian rights — meaning that those who live near a river can draw from it; the water is theirs. Water is relatively plentiful in the East, so the system works well there. In the West, water ownership is commonly determined by prior appropriation — the person who used it first owns it, whether he or she lives near the water source or not. This is important in the West, because water is scarcer, and the system works well for irrigation. 32


“The water market is relatively complicated,” says Debaere. “If I buy water from you, and you are upstream from me, it has to be channeled, and people in between may be adversely affected by that water coming through. I have to know how reliable that water is that I’m going to buy from you, whether you have a right to that water and how clean it is. This is not just a simple transaction.” Pricing water to sell is also a challenge because of the myriad factors that influence cost, such as scarcity, demand and distribution expenditures. Some areas have more water than they will ever need, so pricing the resource high is not necessary. Where water is scarce, it should be treated as more valuable so that it is not overused, Debaere says, but governments often subsidize water in many water-scarce regions of the world, and this perpetuates the cycle of water abuse. The true cost of water is completely variable. Building water markets may be one way to ensure more equal and economically sound water use, but this complex solution will not be implemented overnight. According to the UN-Water website, by 2025, two-thirds of the planet will experience water shortages, and “1,800 million people will be living in countries or regions with absolute water scarcity.” “Setting up water markets isn’t so easy,” Debaere explains. “It is a discussion that will take a while. … And it’s really only when necessity strikes that people act. Like in Australia, there was no arguing: With a 10-year drought, you have to do something. If someone really feels like it’s an issue that won’t go away, then gradually, they will start acting on this.” To help educate the Darden community about the economics of water, Darden Professor Peter Debaere and Brian Richter, the director of global freshwater strategies for The Nature Conservancy, will offer an independent study in the fall of 2013 called “Water Markets,” in which students will explore the dynamic and complex role water plays on a global scale, both economically and environmentally. They will study sustainable development and examine how water is used, managed, valued and governed.

Inspiring us all to reach higher.

Johnson & Johnson is proud to support

the Darden School in all their continued efforts

ŠJohnson & Johnson Services Inc., 2011

to build smarter, more dedicated,

and principled leaders for tomorrow.

“Get involved. If you have an idea to support the School, be entrepreneurial and innovative and make it happen.” —Henry Skelsey

Abbott Award Winner Henry Skelsey (MBA ’84) HENRY SKELSEY (above), a 1984 graduate of the University of Virginia Darden School of Business and a trustee of the Darden School Foundation, received the Charles C. Abbott Award — the highest honor Darden bestows on members of its alumni — on Saturday, 27 April. The award was announced during Darden Dean Robert F. Bruner’s State of the School program, held as part of the 2013 Darden Alumni Reunion. The annual award recognizes Darden alumni for their exceptional and lasting contributions to the School. Skelsey was selected from among more than 30 nominees, and the award was presented to him — as a surprise — by Jennifer Finn (MBA ’00), chair of the Darden School Alumni Board of Directors. Skelsey has served for more than seven years as a member of the Foundation board of trustees, including two as chair of the board. During his tenure on the board, Skelsey created and was the first chair of the Engagement Committee, which is dedicated to developing alumni

loyalty through great communication and dynamic engagement. He created, with Professor Ken Eades, the series “Hot Topics in Finance,” which brings leading alumni practitioners working in the finance industry into the MBA classroom to share their experiences and wisdom with current students. Seven years ago, he also held the first admissions yield dinner, inviting students accepted to Darden to his home in Rye, New York, to connect with Darden alumni. Darden alumni now host eight yield dinners around the country per year. The dinners make a significant difference in the School’s ability to attract top students. “I took so many important lessons from my time as a student at Darden, it is important to me that we all engage and give back to help the next generation of students,” said Skelsey. “Get involved. If you have an idea to support the School, be entrepreneurial and innovative and make it happen. It has been such a pleasure to help grow great ideas at Darden.” Left: Henry Skelsey (MBA ’84) received the Charles C. Abbott Award during Reunion weekend. Pictured left to right: Phil Knisely (MBA ’78), Darden Foundation Board of Trustees Chair; Jennifer McEnery Finn (MBA ’00), Darden Alumni Board Chair; Dean Bob Bruner; Henry Skelsey; and Michael Woodfolk, Executive Director, Alumni Services.



Skelsey is a co-founder and managing partner of the private equity firm PRC Venture Partners LLC. He has spent more than 25 years in the private equity industry. As a member of the Dean’s Global Advisory Council, he has played an important role in raising awareness of and forging connections for the Darden School in China. He was instrumental in the launch of Darden’s Global Leadership Forum in Shanghai; the second annual event took place 10–11 May. When Finn announced Skelsey as the recipient of the Abbott Award, she read from his citation: “A leader in business, Henry personifies Darden’s mission, its values and principles through his leadership.” Skelsey responded by saying, “For me, Darden is a lifelong community. It has been a great honor to serve on the board, and my greatest honor is having been a student in the classrooms of professors like Mr. Les Grayson, Mr. Bob Bruner and the other incredible faculty here.” He concluded, “It’s so important to stay close to the professors who have had an impact on your life.”

DARDEN REUNION WEEKEND | for more photos visit

Reunion 2013




Alumni Profile

by Michael J. Woodfolk (TEP ’05) Executive Director, Alumni Services By the time this magazine reaches you, the Class of 2013 will have already processed across the Lawn at graduation to collect their diplomas from Dean Bob Bruner. This year’s class includes not only the residential students and the sixth class of MBA for Executives, but also the School’s first graduates of the Global MBA for Executives. As the School’s alumni base expands and diversifies, it is our job to ensure that we are engaging you in meaningful, rewarding and dynamic alumni experiences. I often reflect on the generosity and lifelong commitment of Darden alumni. Each individual’s involvement — whether it is one time or ongoing — plays an important role in moving Darden forward. More alumni are participating in the life of the School than ever before. They teach classes, attend Reunion, support the Darden Annual Fund, submit Class Notes for the magazine, refer students, recruit graduates, volunteer as chapter or class leaders and serve the admissions team. If you are not already actively involved with the School, we invite you to be part of this rich tradition of giving back. We appreciate the time, talent and treasure many of you have given over the years to the School. In return, we have a growing portfolio of participation options to offer you. Alumni receive a 25 percent discount toward Darden Executive Education programs, access to the Darden Case Collection and alumni education events held regionally and on Grounds. You can communicate directly with Darden’s worldclass faculty, connect with classmates through the alumni directory, use the Armstrong Center for Alumni Career Services to help you execute your next career move smoothly and benefit from the support Darden provides when a member of your family applies to U.Va. or the School. Consider partnering with Darden — we assure you that you will reap the rewards for years to come.



Ty Eggemeyer (MBA ’89) “Paying It Back, Not Forward”


s one of six children growing up in a single parent household on a poor farm in rural Texas, Ty Eggemeyer never imagined he’d end up at a school like Darden. “The school where I spent grades one through four had 64 kids — for all 10 grades,” he said. “When I went to a high school with 320 students, I thought it was gigantic.” Still, the chair and CEO of the electronics manufacturing company Conelec of Florida says his upbringing taught him the best possible values: selfsufficiency, problem solving and independence. “We had to make the land payment, farm the farm, take care of my sisters and go to school. My mom, who was a very strong woman, taught me to be the way I am today: ‘If you’re not going to do it, get out of the way, and I’ll do it myself.’” Eggemeyer’s self-reliance has served him well, particularly in his career. “I fix manufacturing companies with a private equity group,” he said. “We use technology and software to streamline and improve operations and then grow small companies into world-class ones.” His recipe for success involves a blend of intuitive problem solving and the structured process he learned at Darden. “I had raw problem-solving ability when I got to Darden, but [the School] taught us a much more structured methodology that stuck with me. Darden also taught me how to prioritize,” Eggemeyer explained. “The professors were extremely good at getting you to learn without realizing you were learning. That’s what Darden’s strength is. That’s why, if you look at schools from a teaching perspective, it’s the top teaching institution for MBAs in the world.” Now semiretired, Eggemeyer looks forward to writing, traveling and spending time with his wife. He also enjoys biking: He pedaled from Los Angeles to Boston in 2006 and from Los Angeles to Kansas City in 2012 to raise money for the National Multiple Sclerosis Society. As a class agent and Shermet scholar, he encourages his classmates to support the Darden Annual Fund: “Really, we’re supporting people who are like us. We’re paying it back, not forward.” Eggemeyer’s appreciation for his alma mater is obvious. “People don’t realize that there are only four or five decisions in life that really matter,” he said. “Next to marrying my wife, Leslie, attending Darden is the second best thing I’ve ever done. It took that raw person who grew up on a farm and was in awe of the people around him, and it gave him the problem-solving skills and the confidence to go out into the world. Darden really changed my life.” — Elizabeth Derby

Alumni Profile

Jen McEnery Finn (MBA ’00) Balances Her Career, Three Kids and a Commitment to Darden As the mother of three children younger than the age of 4, vice president of marketing operations at Capital One and chair of the Darden School Alumni Board of Directors, Jen McEnery Finn has her hands full. After the birth of her newborn twin boys, Sam and Sean, Finn took maternity leave from her Capital One job to stay at home with them and her 3-year-old daughter, Sydney. “It was overwhelming at first,” admitted Finn, “the shock of finding out that my husband, Chris, and I were having twins; an uneventful ‘normal’ pregnancy; the miracle of birth.” And she doesn’t feign that raising three children is easy: “Then exhaustion set in, and [I began] obsessing over the minutiae of eating, sleeping and diapers, trying to keep up my energy to spend time with everyone else. [I have] flashes of panic when I envision the chaos my future may hold.” But Finn also feels “extremely blessed to have such a supportive husband, family and friends” and describes the first three months of mothering the newborn twins as “a wave of pure joy.” Even in the face of this major life change, Finn has made it a priority to stay deeply connected to the Darden community. “The integrity of the Darden program drives an intense emotion,” she said. “It imbeds a passion in you and leaves its mark.” Finn has led the Darden School Alumni Board of Directors since July 2011. Before her appointment as chair, she served as vice chair for two years, “learning the ropes.” Finn urges alumni to “network with other alumni, refer students, hire students [and] reconnect with faculty and their research. The power is world class.” She also believes in speaking up for the School, asserting, “Alumni are the best press that Darden can get.” In late February, Finn returned to her role as vice president of marketing operations at Capital One, where she “lead[s] the operations responsible for marketing to and welcoming new credit card customers.” She joined Capital One 12 years ago, after graduating from Darden and working for a time as a strategy consultant. Finn is confident that her Darden and Capital One roles have prepared her well for the challenges of child rearing. “One key principle embedded in the culture of Darden and Capital One Financial is the appreciation for and fostering of diversity,” she explains. “At work, [I strive to] foster new ideas, leverage diverse talents and support my teams as they challenge themselves to continually raise the bar. At home, I hope to live this same principle as I embrace each of my children for who they are as individuals, loving and nurturing them to be the best at whatever they may want to pursue.” — Carlos Santos



Leadership Boards The five Leadership Boards of the Darden School of Business comprise more than 130 distinguished leaders who collectively serve as an innovative force in the advancement of the Darden School throughout the world. (Listing as of 31 May 2013)

Darden School Foundation Board of Trustees New Vice Chair Elected

James A. Cooper (MBA ’84) of St. Louis, Missouri, senior managing partner of Thompson Street Capital Partners, has been elected as vice chair of the Darden School Foundation Board of Trustees.

New Board Members

Susan J. Chaplinsky Tipton R. Snavely Professor of Business Administration

Gordon Grand III (MBA ’75) of Anguilla, British Virgin Islands; managing director at Russell Reynolds Associates Inc.

Frank Sands Jr. (MBA ’94) of Arlington, Virginia; chief executive officer and chief investment officer at Sands Capital Management

Kirsti Goodwin (MBA ’02) of Richmond, Virginia, community volunteer and former associate director of investments at Spider Management Co.

Zhiyuan (Jerry) Peng (MBA ’03) of Beijing, China; chief executive officer of Four Seas Capital Management

Susan Sobbott (MBA ’90) of New York, New York; president of American Express OPEN

Not pictured, Catherine J. Friedman (MBA ’86) of Atherton, California; independent consultant



DARDEN SCHOOL FOUNDATION BOARD OF TRUSTEES CHAIR Philip W. Knisely (MBA ’78) Clayton, Dubilier & Rice VICE CHAIR James A. Cooper (MBA ’84) Thompson Street Capital Partners Thomas J. Baltimore Jr. (MBA ’91) RLJ Lodging Trust W.L. Lyons Brown III (MBA ’87) Altamar Brands, LLC Robert F. Bruner Dean, University of Virginia Darden School of Business Susan J. Chaplinsky (Faculty) Darden School of Business G. David Cheek (MBA ’79) The Meridian Group James Su-Ting Cheng (MBA ’87) Commonwealth of Virginia VN Dalmia (MBA ’84) Dalmia Continental Pvt. Ltd. Trip Davis (MBA ’94) President, Darden School Foundation, Senior Associate Dean for External Relations Michael A. DeCola (MBA ’77) Mississippi Lime Company Kenneth M. Eades (Faculty) Darden School of Business Karen K. Edwards (MBA ’84) Kosiba Edwards Associates Louis G. Elson (MBA ’90) Palamon Capital Partners, LLP Jennifer McEnery Finn (MBA ’00) Capital One John Fowler Jr. (MBA/JD ’84) Wells Fargo Securities, LLC Catherine J. Friedman (MBA ’86) Independent Consultant Donald W. Goodman (MBA ’84) Retired, The Walt Disney Company Kirsti Goodwin (MBA ’02) Gordon Grand III (MBA ’75) Russell Reynolds Associates Inc. Edwin B. Hooper (MBA ’94) Center View Capital Robert J. Hugin (MBA ’85) Celgene Corporation Martina Hund-Mejean (MBA ’88) MasterCard Worldwide William I. Huyett (MBA ’82) McKinsey & Company Lemuel E. Lewis (MBA ’72) Local/ Luann J. Lynch (Faculty) Darden School of Business

John G. Macfarlane III (MBA ’79) Vinci Zafferano Capital Carolyn S. Miles (MBA ’88) Save the Children Marshall N. Morton (MBA ’72) Media General Inc. Michael O’Neill (MBA ’74) Citigroup Richard M. Paschal (MBA ’89) Coach, Inc. Honorable Lewis F. Payne (MBA ’73) McGuireWoods Consulting, LLC Zhiyuan (Jerry) Peng (MBA ’03) Four Seas Capital Management Scott A. Price (MBA/MA ’90) Walmart Asia Harry T. Rein (MBA ’73) Foundation Medical Partners Admiral Gary Roughead Hoover Institution at Stanford University Frank M. Sands Sr. (MBA ’63) Sands Capital Management Frank M. Sands Jr. (MBA ’94) Sands Capital Management Bryan H. Simms (MBA ’94) The Alberleen Group John Simon Executive Vice President and Provost, University of Virginia Henry F. Skelsey (MBA ’84) PRC Venture Partners, LLC Susan Sobbott (MBA ’90) American Express OPEN John R. Strangfeld Jr. (MBA ’77) Prudential Financial, Inc. Teresa A. Sullivan President, University of Virginia George S. Tahija (MBA ’86) PT Austindo Nusantara Jaya (ANJ) William P. Utt (MBA ’84) KBR, Inc. Thomas R. Watjen (MBA ’81) Unum Group Roger L. Werner Jr. (MBA ’77) Outdoor Channel Holdings, Inc. Elizabeth K. Weymouth (MBA ’94) Riverstone Holdings, LLC



CHAIR Jennifer McEnery Finn (MBA ’00) Capital One PRESIDENT Karen K. Edwards (MBA ’84) Kosiba Edwards Associates George (Yiorgos) Allayannis Faculty Adviser Keith Bachman, CFA (MBA ’89) Bank of Montreal Andrew Barrett (Class of 2013) Student Representative Christian Duffus (MBA ’00) LEAF College Savings, LLC Warren F. Estey (MBA ’98) Deutsche Bank Securities Michael Ganey (MBA ’78) American Kennel Club Owen D. Griffin Jr. (MBA ’99) Dominion Enterprises Bruce Jolly (MBA ’67) Tatum CFO Partners, LLP Lisa O. Jones (MBA ’85) Pavilion Properties Harry N. Lewis (MBA ’57) Lewis Insurance Agency, Inc.

Nicola Allen (MBA ’10) Pelton & Crane Paige Davis (MBA ’09) MTB Investment Advisors Jonathan Englert (MBA ’10) Deloitte, LLP Teresa Epperson (MBA ’95) AlixPartners Arnold Evans (MBA/JD ’97) SunTrust Robinson Humphrey Marguerite Furlong Longo (MBA ’08) Johnson & Johnson Consumer Products Ray Hernandez (MBA ’08)

Nicole McKinney Lindsay (MBA/JD ’00) Strong Seed Professional Development, LLC Elizabeth H. Lynch (MBA ’84) Evercore Partners Dar Maanavi (MBA/JD ’94) Trysail Advisors, LLC Betsy Markus (EMBA ’11) First Affirmative Financial Network Jay McDonald (MBA ’71) Middleton McDonald Group, Inc. Vistage International Jeanne L. Mockard (MBA ’90) JLM Capital and Consulting Melissa Monk (EMBA ’08) Equifax, Inc. Douglas T. Moore (MBA ’80) First Street Consulting, LLC Kari E. Pitkin (MBA ’97) Bank of America Merrill Lynch Shelley Reese (MBA ’08) Booz Allen Hamilton Mark A. Riser (MBA ’94) Morningside Private Investors Elvis Rodriguez (MBA ’10) Goldman Sachs Group, Inc. Abby A. Ruiz de Gamboa (MBA ’04) Deloitte Consulting, LLP Nancy Schretter (MBA ’79) The Beacon Group

Drew Holzwarth (EMBA ’09) Piedmont Realty & Construction Allison Linney (MBA ’01) Allison Partners, LLC Octavia Matthews (MBA ’89) Willard McCloud (MBA ’04) Cargill, Inc. Tawana Murphy Burnett (MBA ’04) Pfizer Consumer Healthcare Michael Peters (MBA ’09) COMCAST Corporation Reynaldo Roche (MBA ’07) Delta Air Lines, Inc. William Sanders (MBA ’06) Korn/Ferry Rhonda Smith (MBA ’88) Rhegal Consulting Jeffrey Toromoreno (MBA ’06) Citigroup, Inc.

GLOBAL ADVISORY COUNCIL VN Dalmia (MBA ’84) Dalmia Continental Pvt. Ltd. Louis G. Elson (MBA ’90) Palamon Capital Partners, LLP Silvia Ethel (MBA ’99) Gabriela Gold (MBA ’95) World Bank Leslie Grayson Isidore Horween Emeritus Research Professor of International Management Clelland Peabody Hutton (MBA/JD ’75) Orion Partners Gene Kim (MBA ’96) Nexolon Takahisa Koitabashi (MBA ’93) iSigma Capital Corporation Richard K. Loh (MBA ’96) Ploh Group Pte. Ltd.

Elie Maalouf (MBA ’89) Zhiyuan (Jerry) Peng (MBA ’03) Four Seas Capital Management Anton Periquet (MBA ’90) Pacific Main Holdings, Camden Hill Group Kari E. Pitkin (MBA ’97) Bank of America Merrill Lynch Scott A. Price (MBA/MA ’90) Walmart Asia Vincent Rague (MBA ’84) Catalyst Principal Partners Fiona Roche (MBA ’84) Estates Development Co. Pty. Ltd. Walter Shill (MBA ’86) Accenture Henry F. Skelsey (MBA ’84) PRC Venture Partners, LLC Erik Slingerland (MBA ’84) Egon Zehnder International Gmbb. George S. Tahija (MBA ’86) PT Austindo Nusantara Jaya (ANJ) Sergio Waisser (MBA ’98) McKinsey & Company

CORPORATE ADVISORY BOARD CHAIR John Fowler Jr. (MBA/JD ’84) Wells Fargo Securities, LLC VICE-CHAIR Richard M. Paschal (MBA ’89) Coach, Inc. Michael Balay (MBA ’89) Cargill, Inc. Helen Boudreau (MBA ’93) Novartis Corporation Mark Bower (MBA ’02) Bain & Company Ray Butler Kollmorgen William Carter (MBA ’99) Advance Auto Parts Kevin Clark (MBA ’01) Colgate-Palmolive David Couture (MBA ’95) Deloitte Consulting, LLP R. Scott Creighton (MBA ’82) Johnson & Johnson Consumer Products Murray Deal Eastman Chemical Company Richard Edmunds (MBA ’92) Booz & Co. Pierre Jacquet (MBA ’98) L.E.K. Consulting Thomas Johnstone (MBA ’88) GE Capital Corporation

John Bernard Jung (MBA ’84) BB&T Capital Markets Matthew Kaness (MBA ’02) Urban Outfitters, Inc. Mary Lou Kelley (MBA ’91) Chico’s FAS, Inc. Michele Kessler (MBA ’89) David Kostel (MBA/JD ’97) Credit Suisse Harry Lawton (MBA ’00) The Home Depot Charles Leddy (MBA ’03) Starbucks Corporation Octavia Matthews (MBA ’89) Daniel McKeon (MBA ’08) Marriott International, Inc. Fernando Mercé (MBA ’98) Nestle Purina William J. O’Shea Jr. (MBA ’84) Campbell Soup Company Thomas Poole (MBA ’99) Capital One Thomas W. Reedy Jr. (MBA ’91) Carmax, Inc. Eric Riddleberger IBM Global Business Services James Schinella (MBA ’93) Manilla Elizabeth Thibodeau (MBA ’07) Target Mark Watkins (TEP ’94) MeadWestvaco M. Reaves Wimbish (MBA ’97) Accenture




Questions With

John Fowler (MBA ’84)


ohn Fowler is vice chairman of investment banking at Wells Fargo. He held previous positions as vice chairman of investment banking at Deutsche Bank, head of Health Care Services Banking at JPMorgan and head of Health Care Banking at Salomon Brothers. Fowler was also president of Large Scale Biology Corporation, a publicly traded biotech company; a founding partner of Bio-Strategic Directors, a biotech consulting firm; and managing partner of Baycrest Capital, a private equity investment firm. He has served on various corporate boards of directors, including as lead director of Beverly Enterprises, Large Scale Biology Corporation and Optical Dynamics. He has also served on various nonprofit boards, including Project Reach Youth and Project HOPE. Fowler holds a Bachelor of Arts degree and a J.D. from the University of Virginia and received an MBA from Darden in 1984. Fowler serves as the chairman of Darden’s Corporate Advisory Board and is a member of the Darden School Foundation Board of Trustees. He is married to Corey Phillips Fowler (CLA&S ’80). They have three children: John, Douglas (CLA&S ’11) and Grace. 40


1. What was your first job? I chopped weeds out of a bean field in South Dakota, which motivated me to do well in school. 2. What motivates you? Fear, greed, college tuition costs and my wife’s spending habits. 3. When and where do you do your best thinking? On airplanes, where I can’t be disturbed, except by screaming babies. 4. What are you reading these days? Keith Richard’s Life and Ron Chernow’s Washington: A Life. 5. In which social networks do you engage? Hanging out at the water cooler, walking the floor and visiting face-to-face with clients. 6. What technology can you not live without? Electricity and water, as I learned after Hurricane Sandy. 7. How do you stay ahead of the competition? I put myself in my clients’ shoes and give them advice accordingly. 8. How do you deal with conflict? I ask: “How would Gordon Ramsey handle this?” 9. What characteristics do you look for in people? People who are intelligent, intellectually honest, street-smart, stand up to me and, of course, think I’m funny. 10. What are the best things that happened to you in the last year? I stayed employed, stayed married and stayed true to my principles. 11. What do you consider your greatest achievement? I convinced my wife to marry me.

12. Which natural talent would you most like to have? I’d like to be able to play golf — 40 years of lessons have proven it’s not a learnable skill. 13. How do you unwind? I am a passionate cook and voracious reader. 14. If you could live anywhere, where would it be? New York City. 15. What’s your favorite cause? Project HOPE (I am a board member; www. 16. What causes you to lose sleep? Both my wife and my dog snore. 17. What’s next? Whatever life throws my way; I’m still trying to figure out what I will be when I grow up. 18. Which class at Darden impacted you the most? “Organizational Behavior”: It was my worst grade at Darden, and I never got it, which is probably why I no longer have any direct reports in my current job (seriously). 19. Which Darden professor influenced you the most? Professor Bill Sihler: He taught me that if you can’t get a directionally correct answer with a slide rule, a pencil and the back of an envelope, the deal probably doesn’t make sense. 20. Describe a moment when you realized the true value of your Darden education. When I met my peers, especially from other MBA programs, at my first post-Darden job at Salomon Brothers.

As alumni, you carry Darden’s name into the world. As investors, you carry Darden forward. It’s an exciting time to be a part of the Darden community — we are gaining national and international recognition as never before. Darden is a Top 10 business school, and we’re poised to impact the way business is done around the globe. We’re looking forward, our momentum is strong and our vision ambitious. Alumni support through the Annual Fund gives us the flexibility to keep Darden moving forward — and leading the future of business. Your continued and increased support makes it possible for Darden to: Deliver the No. 1 MBA Experience in the World. The Economist named Darden the No. 3 business school globally and nationally and the world’s best “education experience.” Recruit Highly Acclaimed Faculty. Darden’s top-ranked faculty members continue to achieve recognition for their excellence. In April, Professor Susan Chaplinksy received an all-University teaching award for her courses in Finance. Translate Quality Education Into Real-World Success. Ninety-four percent of Darden’s Class of 2012 received full-time job offers within three months after graduation, and the School’s most recent graduating class is on track to reach the same heights. Darden remains one of the few major graduate business schools to integrate career strategy and planning into its curriculum. Alumni support is critical to ensuring that Darden can continue to invest in the people and programs that will maintain this forward momentum. Collectively, alumni investments help elevate the School’s rankings, shape the next generation of business leaders and increase the value of the Darden degree.

Join the forward momentum.

Invest today at

University of Virginia Darden School Foundation P.O. Box 7726 Charlottesville, VA 22906-7726




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NEW! 27–31 OCTOBER 2013 Drive Business Growth and Innovation: Mindsets, Behaviors and Tools 4–8 NOVEMBER 2013 True Leadership: Leading With Meaning 4–8 NOVEMBER 2013 Darden/SNL Executive Program in Bank Financial Leadership 10–15 NOVEMBER 2013 Servant Leadership: A Path to High Performance 12–15 NOVEMBER 2013 Stategic Decision Making 19–22 NOVEMBER 2013 Leading Innovation: Thinking Creatively for Positive Change

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