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FALL / WINTER Rankings: Darden Rises to Top 10 in Bloomberg Businessweek and No. 3 in The Economist

University of Virginia Darden School of Business





Darden’s prisoner entrepreneurship program unlocks inmates’ potential for a productive life beyond bars

Also inside: The U.S. Military and Darden Case in Point: An $800,000 Test of Trust



Executive Education

Top Five Open-enrollment programs, Financial Times, 2004–2012




The Executive Program is Darden’s four-week, flagship advanced management residency program for senior-level executives.

17–22 MARCH 2013 Managing the Corporate Aviation Function Financial Management for NonFinancial Managers

2–28 JUNE 2013



Darden’s two-week residency program for high-potential executives provides a strategic organization view and integrates functional areas and mind/body wellness.


25–29 MARCH 2013 Strategic Thinking and Action 8–12 APRIL 2013 Strategic Marketing Management


28 APRIL–3 MAY 2013 Power and Leadership: Getting Below the Surface 6–10 MAY 2013 True Leadership: Leading With Meaning

CUSTOM PROGRAMS Darden is your strategic partner to prepare your leaders to shape an organization’s future and outperform the competition.


OPEN-ENROLLMENT PROGRAMS Darden’s Top Five–ranked open-enrollment programs (Financial Times, 2004– 2012) challenge you to explore the latest practices across business disciplines. l

+1-877-833-3974 U.S./Canada l +1-434-924-3000 Worldwide

13–17 MAY 2013 Leading Teams for Growth and Change 2–28 JUNE 2013 The Executive Program: Strategic Leadership at the Top 9–14 JUNE 2013 Growing Great Managers: The Core Essentials




Fall/Winter 2012 22



An $800,000 Test of Trust

From Combat to Cold Calls

Second Chances

This Darden/Washington Post “Case in Point” describes opening conversations between U.S. and Chinese investment firms and highlights the critical importance of trust in a global marketplace.

For 36 years, Darden and the United States military have worked in tandem to develop world-class officers who bring their leadership skills from the battlefield to the classroom.

The Darden prisoner entrepreneurship program, a result of the 2011 Mead Foundation John Colley Award, educates inmates so that when they get out of jail, they will have the skills to stay out of jail.

4 From the Editor 6 News Briefs 12 Sound Bites 14 Did You Know? 16 What to Read Now

Profiles 18

FACULTY SPOTLIGHT Professor Alec Horniman: Change Agent

44 20 QUESTIONS Jerry Peng (MBA ’03)

32 Alumni News 79 Corporate Sponsors 39 Leadership Boards

Alumni Spotlights 33 Allan Staats (MBA ’62) Creates Fellowship in Honor of the Darden Experience

38 Elizabeth Hagood (MBA ’89) Preserves the Lowlands

39 Reynaldo Roche (MBA ’07) Enjoys Unlimited Visibility



From the Editor

A Fresh Start


f you could go back to Darden for a day and take one class, what would it be? When asked this question, Darden alumni — more often than not — cite a course in leadership and organizational behavior. How to manage, how to lead and how to inspire people. Darden Professor Alec Horniman, profiled in this issue, is an expert on the subject and has taught thousands of students and executives during his 45-year tenure at Darden, often with five out of five ratings. Students have said that his knowledge of behavioral psychology gives him a special window into the way people’s minds work. As they settle into his class, they wait for the curtain to draw and the magic to begin. On pages 16–17, Horniman shares three questions worth contemplating at the start of a new year. On the subject of fresh starts, the cover story asks a powerful question, “Can people change?” Darden Professor Greg Fairchild believes they can and has launched an experimental program with Darden MBA students and faculty to teach entrepreneurship to an unlikely group of students: prison inmates. Darden’s mission is to improve society. What do you view as society’s most pressing issues for 2013? Let us know.

Juliet Daum Editor and Senior Director of Communication

Stay Connected

Robert F. Bruner 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) Chairman, Darden School Foundation Board of Trustees Michael J. Woodfolk (TEP ’05) Executive Director, Alumni Services


THE DARDEN REPORT | FALL/WINTER 2012 &trk=myg_ugrp_ovr

The Darden Report Volume 39, No. 2: Fall/Winter 2012 Senior Director of Communication: Juliet Daum Director of Publications: Susan Wormington Editor: Jacquelyn Lazo Graphic Design: Ross Bradley, Susan Wormington Copy Editors: Catherine Burton, Seamane Flanagan Cover Illustration: Keith Negley/ Photography: Dan Addison, Michael Bailey, Ian Bradshaw, Abena Foreman-Trice, Jaime Kay, Jack Looney, Michael Paras, Andrew Shurtleff, Gately Williams Advertising Inquiries: Carter Hoerr, Executive Director for Advancement Phone: +1-434-243-5871

Send correspondence to: The Darden Report Office of Communication & Marketing P. O. Box 7225 Charlottesville, VA 22906-7225 U.S.A. The Darden Report is published with private donations to the University of Virginia Darden School Foundation. © 2012 Darden School Foundation

ALUMNI SERVICES: Inspire and Engage Darden Alumni Services is committed to developing a strong, global network of alumni through exceptional communication and dynamic engagement.

Resources & Connections • • • • • •

The Armstrong Center for Alumni Career Services On-Grounds Concierge Services Alumni Chapters and Affinity Groups Global Networking Events Access to the Darden Case Collection Reunion: 26–28 April 2013

Lifelong Learning Opportunities • • • • • •

Alumni Discounts for Darden Executive Education Professional Development Programs Global Business Experiences Conferences Sponsored by Darden and the University of Virginia Educational Enrichment With World-Class Faculty Alumni Speaker Fellows Program: Hot Topics

Darden Alumni Services +1-434-243-8977

News Briefs

Darden Climbs in the Rankings America, just behind the University of Chicago’s Booth School of Business — which holds the No. 1 position on both lists — and the Tuck School of Business at Dartmouth at No. 2. Within the criteria, Darden was rated the Second Year students, left to right, Taylor Henry, Jack Bannister and No. 1 full-time MBA Veneka Chagwedera were interviewed for Bloomberg TV’s Market Makers the day after Bloomberg Businessweek released its 2012 rankings. “education experience” in the world for the The Economist: No. 3 in the World and second year in a row. the Best “Education Experience” The School also topped the list for “diverDarden’s No. 3 rank in The Economist’s sity of recruiters.” 2012 ranking of full-time MBA programs Darden ranked in the Top Five in is the highest ever achieved by the the categories of “alumni effectiveness,” “student assessment of career service,” Darden School. “open new career opportunities,” “faculty Darden moved up one position from quality” and “student assessment of its 2011 standing at No. 4 internationally facilities.” and held steady at No. 3 in North

Bloomberg Businessweek: No. 10 In Bloomberg Businessweek’s 2012 biennial ranking of “Best B-Schools,” released in November, Darden rose one place in the ranking of U.S. business schools to No. 10. The survey is based on three elements: a poll of newly minted MBAs; a poll of corporate recruiters on the quality of graduates; and an evaluation of faculty research output. Of the business schools in the Top 10, Darden is rated the highest for faculty. The magazine describes the attributes of top faculty as: “a compelling classroom presence, an encyclopedic knowledge of the subject, easy availability after class and a research record second to none.” Darden also received the second highest score among Top 10 business schools in the survey of students. In Bloomberg Businessweek’s “graded” categories, Darden received all “A’s”: an “A+” in career services, teaching quality, critical thinking and leadership skills and an “A” in caliber of classmates.



N JANUARY 2013, Darden will offer its first massive open online course, or MOOC, in partnership with Coursera, the online educational platform, to more than 43,000 participants. Professor of Business Administration Edward D. Hess will teach the two-part course “Grow to Greatness: Smart Growth for Private Businesses,” beginning 28 January.

Professor Edward D. Hess



Hess, who teaches in the academic area of Strategy, Ethics and Entrepreneurship, designed the course based on research funded by Darden’s Batten Institute, of which he is executive-in-residence. Part I of the case-based class will address common growth management challenges facing expanding businesses. Over a five-week time span, Hess will cover the following topics: “Truths About Growth,” “Are You Ready for Growth?” “The 4 Ps of Growth — Planning, Prioritization, Processes and Pace,” “Four Ways to Grow a Business” and “Creating a Growth Plan.” Darden Professor Michael J. Lenox will offer a new course on strategy in March 2013, and Professor R. Edward Freeman will teach a course on ethics. Online courses such as these actively advance Darden’s educational goal of improving the quality of its students’

learning experiences by remaining at the forefront of technology. “Through our partnership with Coursera, we can reach thousands of individuals on a global scale who would not otherwise have access to Darden’s high-engagement learning environment and thought-leadership style,” Darden Dean Bob Bruner said. “This is a ‘learning launch’ whereby we can further the Darden mission of developing principled leaders for the world of practical affairs beyond the classroom.” U.Va. will also offer three Coursera courses from the College and Graduate School of Arts & Sciences. The University does not plan to offer course credits or certificates to students or public viewers who take U.Va. courses, and the partnership involves no exchange of funds. U.Va. owns the intellectual property of each course.

DARDEN PROFESSOR ERIKA JAMES will serve as the new leader of Darden Executive Education, overseeing custom and open-enrollment programs. “Erika is a talented and proven leader who will energize Darden Executive Education,” said Darden Dean Bob Bruner. “An expert in leadership and organizational behavior, she knows what it takes for executives and companies to lead in these uncertain times, and she will be a valuable partner to organizations and to professionals of all levels.” James joined Darden in 2001 and has served as course head of “Leading Organizations” in the MBA program and pioneered the position of associate dean of diversity. She teaches in several Darden Executive Education programs and helped design the highly successful open-enrollment course “Women Emerging in Leadership.”

UCLA Anderson

Erika James Named Senior Associate Dean for Darden Executive Education

Cornell Johnson

Duke Fuqua

Dartmouth Tuck

-9.6 -8.8 -8.4

+1.5 +8.9 +17 +22 Stanford

-19 -17


Michigan Ross



Changes in MBA Application Volume: 2012

Source: The Wall Street Journal, “B-School Math”

MBA Applications to Darden on the Rise According to data from the Graduate Management Admission Council (GMAC), which administers the Graduate Management Admissions Test (GMAT), applications to two-year, full-time MBA programs fell for the fourth year in a row in 2012 — but not at Darden. Applications to Darden’s full-time MBA rose 8.9 percent. Sara Neher, assistant dean of MBA admissions, told The Wall Street Journal that “a new marketing plan and higher rankings has led to more, and better-qualified, applicants.” Darden’s MBA Class of 2014 includes 320 students, who set several admissions records for the School: an average GMAT of 703, an average GPA of 3.45 and a record number of women at 113. For its survey, GMAC polled 744 MBA and other business programs at 359 schools worldwide.


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

DARDEN ALUMNI PORTAL Log on to to update your contact information, reconnect with Darden graduates and learn about new job and educational opportunities.

“Grow to Greatness: Smart Growth for Private Businesses” Darden Professor Edward D. Hess Part I - 28 January 2013 Part II - 29 April 2013 “Foundations of Business Strategy” Darden Professor Michael J. Lenox 4 March 2013 “New Models of Business in Society” Darden Professor R. Edward Freeman Date to be announced Visit for more details.

SAVE THE DATES 2013 Reunion Weekend 26–28 April 2013, Charlottesville Darden Global Advisory Council 10–11 May 2013, Shanghai Global Leadership Forum 9–12 May 2013, Shanghai Darden Graduation 19 May 2013, Charlottesville 2014 Reunion Weekend 25–27 April 2014, Charlottesville



News Briefs

University of Virginia Investing Conference Weighs a Dramatic Moment in Economic History conference in his blog: “The world remains in the grip of low growth following the Global Financial Crisis and Great Recession; households and consumers are reducing spending to repay debt; central banks are pursuing stimulative monetary policies and Bloomberg TV anchor Stephanie Ruhle interviewed Dean Bob probably cannot push Bruner live from Flagler Court during UVIC. further; governments face enormous hould investors care about debt burdens and are reluctant to elections? At the fifth annual borrow-and-spend to stimulate their University of Virginia Investing economies. From the perspective of Conference (UVIC), which took place economic history, this is a dramatic only nine days after the U.S. presidential moment.” election, the answer was a resounding Bloomberg Television, the exclusive “yes.” conference broadcaster, aired the Just after Barack Obama won the program Market Makers live from 57th election for president of the United Darden’s Flagler Court on 16 November. States, more than 650 investment The Honorable Sheila C. Bair, professionals, academics and students former chair of the Federal Deposit gathered 15–16 November at the Darden Insurance Corporation and author of School of Business to analyze what the the new book Bull by the Horns: Fighting political elections of 2012 — in Russia, to Save Main Street From Wall Street and Germany, the United States and China, Wall Street From Itself, kicked off the to name a few — will mean for investors. conference on Thursday, along with Darden Dean Bob Bruner framed the David M. Rubenstein, co-CEO and


managing director of The Carlyle Group, and Kyle Bass, founder of Hayman Capital Management, who turned attention to Japan’s precarious economic situation. Friday included talks by Jeremy Grantham, co-founder and chief investment strategist of Grantham Mayo Van Otterloo, and Dennis Lockhart, president and CEO of the Federal Reserve Bank of Atlanta, among others. Bloomberg’s Stephanie Ruhle moderated an industry-focused discussion on financial markets. Across all sectors, one thing was clear: Uncertainty has increased for decisionmakers. Bruner offered three bits of advice for investors: · Remember the variety of policy levers in the hands of government. · Remember that policy changes will have differential impacts on different industries, and even on different firms within those industries. · Remember that the old rules may change in light of the remarkable new conditions in which the economy finds itself. Here may be dragons. To view videos from the University of Virginia Investing Conference, visit www. or

Virginia: Ripe for Innovation

U.Va. President Teresa Sullivan greeted attendees of the Jefferson Innovation Summit for the Commonwealth.



THE SECOND ANNUAL Jefferson Innovation Summit for the Commonwealth was held at Darden on 7 September. Sixty delegates — business executives, entrepreneurs, academic leaders and policymakers — discussed how to create a sustainable environmental ecosystem within the commonwealth that is ripe with innovation and entrepreneurship. The summit yielded a “policy playbook,” which was distributed to legislators and other influencers who attended the event. U.Va. President Teresa Sullivan opened the summit by saying that Virginia’s good business environment will continue to improve through increased collaboration. Governor Robert McDonnell, who designated 2012 as the Year of the Entrepreneur, addressed the delegates at the close of the summit, noting that small businesses account for 71 percent of all new jobs in the commonwealth.

People New Faculty Members

New Faculty Chairs U.Va. Provost John Simon confirmed the appointments of six Darden faculty members to research chairs: Saras Sarasvathy Isidore Horween Research Chair Re-appointed Thomas Steenburgh John L. Colley Research Chair Gregory Fairchild E. Thayer Bigelow Research Chair Marc Lipson Robert F. Vandell Research Chair



Dennis Tao Yang

Philip Levy

Thomas Steenburgh

Justin Hopkins








Raj Venkatesan Bank of America Chair Re-appointed Frank Warnock Paul Hammaker Professorship Re-appointed

New Members of the Darden School Foundation Board of Trustees

John Fowler (MBA ’84)

Lemuel Lewis (MBA ’72)



Second Year student Jeffrey Campbell, left, received the Samuel Forrest Hyde Memorial Fellowship and a William Michael Shermet Award, and Second Year student Cara Bunyan, right, received the G. Robert Strauss Marketing Award.

Class of 2013 Student Awards At First Coffee on 28 August, student awards were presented to members of the Class of 2013.



Samuel Forrest Hyde Memorial Fellowship Jeffrey Campbell C. Stewart Sheppard Distinguished Service Award Oleksandr Bogun Blythe Crane Anne Erdman G. Robert Strauss Marketing Award Cara Bunyan

William Utt (MBA ’84)

Thomas Watjen (MBA ’81)



William Michael Shermet Award Jack Bannister Alison Barnes Jeffrey Campbell Anne Erdman Leo Hergenroeder Kartik Kalliyana Krishnan John Kiernan Alison Mosle Thomas Rapp Lucas Rogers Isaac Salem Joseph Benjamin Tyson Saul Waller Bernard John Williams Julie Young



Across Continents & Cultures Darden sparks global awareness and global engagement.



Darden aims to prepare students and executives for work, life and leadership on a global scale. Here are some recent highlights of Darden’s global affairs and activities.

24 17 partner schools in



Argentina Australia Brazil China Columbia France India Italy Japan Mexico Netherlands South Korea Spain Sweden Switzerland

Global Business Experiences (GBEs) are planned for spring 2013. GBEs are oneto two-week courses for MBA students outside of the United States that focus on current business issues.

Darden’s Global MBA for Executives combines six two-week residencies in China, Europe, India, Brazil and the United States, and distance learning.

37 countries represented across the three formats of the Darden MBA (MBA, MBA for Executives and Global MBA for Executives)

Brazil India South Africa Turkey Argentina Coastal Europe Israel Sweden


Number of Alumni/ Admission receptions that took place in fall 2012 in cities around the globe.

Percentage of Class of 2014 born outside of the United States:

34% MBA

17% EMBA



Global Field Electives: MBA students spent the fall working virtually with teams in Tunisia and Zambia on projects ranging from increasing the operational capacity of a social enterprise manufacturing bicycles to the development of a business plan for the first-ever Alzheimer’s support organization in Tunisia. Students working for World Bicycle Relief in Zambia will travel to the facility in December to work and present on-site to the client.

Save the date for Darden’s Global Leadership Forum: See page 76 TTHE DARDEN REPORT | FALL/WINTER 2012


Sound Bites The ban could backfire. It will change people’s behavior, but I believe that restaurants that have not offered self-service drinks or free refills in the past will consider doing so. As a result, calories will increase and not decrease as intended.” — PROFESSOR KATHRYN SHARPE on New York City’s plan to ban the sale of large sizes of sugary drinks at restaurants, street carts and movie theaters to fight rising obesity. “Let’s face it, water touches everything. So whether you choose to invest in the water sector itself or any other sector — literally pharmaceuticals, power, agriculture, apparel, food and beverage, you name it — any savvy investor should be paying attention to the water risks associated with the entire investment portfolio.”

— FRANCESCA MCCANN, managing director for Global Water Strategies, visited Darden Professor Andrea Larson’s “Sustainable Innovation and Entrepreneurship” class to discuss “The Business of Water” in September 2012.

“The demand on the patient is coming. It’s going to be a whole different ball game.” — DR. PAUL MATHERNE (EMBA ’10), the J. Francis Dammann Professor of Pediatrics and vice chair for clinical strategy and program development at the University of Virginia Health System, who spoke at the Darden Health Care Conference about the growing belief in health care that patients should take care of themselves and be responsible for their health.

Dean Bob Bruner’s Blog Bite “To produce compelling learning experiences that truly differentiate a destination school from online education requires a culture and mindset of service. ... Online ed is a useful complement — not substitute — for what a school like Darden delivers.” — Being There: What Can a Destination School Deliver That Online Ed Can’t? More than 80,000 readers have visited the Dean’s Blog in the past two years.

“MySpace was the bar on Saturday night. Facebook was the Sunday barbecue. LinkedIn was the Monday morning boardroom.” — ELLEN LEVY, former vice president of strategic initiatives for LinkedIn, discussed her career path during Darden’s annual Entrepreneurship Conference, sponsored by the Batten Institute.



“There is a huge geographic element to this. Venture capitalists in San Francisco and New York have a tough time going to Detroit; they have a tough time going to Albuquerque. There are tons of entrepreneurs [in these places] with really cutting-edge technology, they just don’t have the access to VCs in Silicon Valley. [Crowdfunding] is really kind of flattening the earth in terms of technology being accessible and being doable for potential investments.” — VLAD VUKICEVIC, co-founder of RocketHub, discussed crowdfunding during Darden’s annual Entrepreneurship Conference, sponsored by the Batten Institute.

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


KUDOS FOR UVA Travel + Leisure magazine ranked U.Va. one of the world’s most beautiful universities, one of only two campuses in the United States to receive the honor.

“2012 WORLD WONDER” National Geographic Traveler named U.Va. a “2012 World Wonder.” The Atlantic named Charlottesville “America’s No. 1 Brainiest City.” According to Forbes, the University of Virginia is the top public university in the country.


Move frequently. Every 20 minutes, look away from the computer screen. Drink water and eat fruits and vegetables. Have a little protein with every meal. Stop eating when you’re satisfied, not stuffed. Jolene Bodily, registered dietician with a Master of Public Health and a member of The Executive Program faculty team, in charge of wellness

ONLY 18 WOMEN CEOs LEAD FORTUNE 500 COMPANIES. To boost the number of women in the C-suite, Darden Assistant Professor Yael Grushka-Cockayne will take three Darden students to attend this year’s TEDxWomen conference in Washington, D.C., a dream made possible by U.Va.’s 2012 Mead Endowment John Colley Award. Yael Grushka-Cockayne

1 MILLION VIEWS. 754 YOUTUBE VIDEOS. DARDEN’S MOST VIEWED VIDEOS: 1. So You Want to Start a Business (hosted by Darden Professor Ed Hess) 2. Debt Sustainability: Which Countries Are Beyond the Point of Return and Why? (Kyle Bass, founder of Hayman Capital Management LP, interviewed by Darden Professor Ken Eades) 3. Writing a Business Plan (hosted by Liz Pyle, Pyle Associates LLC) 4. Value Investing Conference 2008 No. 1 (hosted by Whitney Tilson, with T2 Partners) 5. Highlights of a Darden Case Study Class (hosted by Darden Professor Peter Rodriguez)


Darden MBA applications rose this year despite national decrease. The Wall Street Journal (see page 5)

95% of Darden alumni use LinkedIn for professional purposes.

85 percent of students received their accepted job offers through Darden-facilitated recruiting in 2012.

13 percent of Darden alumni self-reported that they are selfemployed.

In June, Dean Bob Bruner and 13 Darden faculty members visited leading technology companies on the West Coast. They returned with case study ideas and online educational opportunities, including a potential Amazon case competition involving Darden students. The Darden Business Incubator is working with Silicon Valley-based company Plug and Play, an entrepreneurial ecosystem, to offer students and alumni opportunities to grow tech-based startups.

AVERAGE U.S. WEDDING = $27,000 One memorable venture of the Darden Business Incubator is Bridal Brokerage, a company started by Lauren Byrne (Class of 2013) that repackages and sells canceled weddings to couples on a

budget. CNNMoney/Fortune reported that the average American wedding cost $27,000 in 2011. Bridal Brokerage promises to “take the sting out of canceled weddings.” TTHE DARDEN REPORT | FALL/WINTER 2012




The Physics of Business Growth: Mindsets, System, and Processes

Wired and Dangerous: How Your Customers Have Changed and What to Do About It By Chip R. Bell and John R. Patterson (MBA ’80), Berrett-Koehler Publishers

By Darden Professors Edward D. Hess and Jeanne Liedtka, Stanford Briefs Business growth is governed by its own natural laws, the most important of which are antithetical to the consistency on which many firms rely. In their book, Professors Liedtka and Hess discuss how to navigate those natural laws to create growth in the present and set the stage for future expansion. Kantian Business Ethics: Critical Perspectives By Denis G. Arnold and Darden Professor Jared D. Harris, Edward Elgar Publishing

collection of essays, a group of distinguished scholars critically examine ensions of business using the Kantian themed business ethics of wie as a jumping off point. The authors engage Bowie’s influential body as well as contemporary themes in business, including topics such as: the ndations of capitalism; the applicability of Kantian ethics, virtue ethics, m in normative business ethics; meaningful work; managerial ethics; the everage finance capitalism; business ethics and corporate social and responsibility for the natural environment. The contributors to this e both scholars sympathetic to Bowie’s Kantian business ethics and of that perspective.

scholarly essays will be of considerable interest to students and scholars ness ethics, corporate social responsibility, and organization studies.

old is the Surtman Distinguished Scholar in Business Ethics and essor of Management in Belk College of Business at the University of a, Charlotte, USA and Jared D. Harris is Assistant Professor and n the Olsson Center for Applied Ethics, Darden School of Business at of Virginia, USA.


The Lypiatts, 15 Lansdown Road Cheltenham, Glos, GL50 2JA, UK ) 1242 226934 Fax: +44 (0) 1242 262111 Email:

William Pratt House, 9 Dewey Court Northampton, MA 01060, USA l: +1 413 584 5551 Fax: +1 413 584 9933 Email:

ISBN 978-1-78100-495-1

Kantian Business Ethics

oundational figures in the establishment and legitimization of the study ics as a field of scholarship, Bowie casts a long shadow over the field. hirty years he has applied a distinctive, Kantian approach to the analysis business ethics and his work has had a substantial impact on a wide y and scholarship in the field. Bowie argues in his work that economic e only value that should inform managers, executives, and policy makers both business policy decisions and everyday management decisions. He an framework to support the position that additional values – such as and rational consistency – should inform business practice and influence ision-making. He also shows that business practices that include these es are consistent with sound management theory and that such be financially successful.

Denis G. Arnold • Jared D. Harris

n Business Ethics

This collection of original essays offers Kantian Business reactions to Norman Ethics E. Bowie’s Kantian approach to business ethics — broadly, that business practices should be informed by values such as human dignity and rational consistency, in addition to economic value. Critical Perspectives

Edited by

Denis G. Arnold

and Jared D. Harris

colours on the printed jacket may differ slightly to those seen on screen due to the techniques used to print the jackets

How can business bring balance to the customer-company relationship, turning today’s vocal patrons into collaborators, rather than complainers? The authors use real-world examples and offer a tested formula to help companies avoid alienating customers in a world of online reviews and viral videos. The Risk Premium Factor: A New Model for Understanding the Volatile Forces That Drive Stock Prices

By Stephen D. Hassett (MBA ’89), Wiley This book examines the stock market’s behavior over the past 50 years, exploring the connection between loss aversion theory and equity risk premium. By explaining the simplicity of the stock market, Hassett aims to empower everyone from business leaders to individual investors.

DARDEN BUSINESS PUBLISHING TOP-SELLING CASES 1. “Nike, Inc.: Cost of Capital” by Robert F. Bruner, Sean Carr and Jessica Chan 2. “Positioning: The Essence of Marketing Strategy” by Richard Helstein and Marian C. Moore 3. “Diamond Chemicals PLC (A): The Merseyside Project” by Robert F. Bruner 4. “An Overview of Financial Statement Analysis: The Mechanics” by Brandt R. Allen and Paul J. Simko 5. “Methods of Valuation for Mergers and Acquisitions” by Susan Chaplinsky, Paul Doherty and Michael J. Schill 6. “Warren E. Buffett, 2005” by Robert F. Bruner and Sean Carr 7. “Red Bull” by Paul W. Farris, Richard R. Johnson, Jordan Mitchell and Ervin R. Shames 8. “The North Star Concert” by Robert L. Carraway and Sherwood C. Frey Jr. 9. “A Practical Guide to Conjoint Analysis” by Ronald T. Wilcox 10. “Genzyme/Geltex Pharmaceuticals Joint Venture” by Samuel E. Bodily, Robert F. Bruner and Pierre Jacquet Darden alumni enjoy free access to the Darden Case Collection. For more details, e-mail 16


Saras Sarasvathy is the Isidore Horween Research Associate Professor.

DARDEN IN THE MEDIA BizEd Magazine – November/ December 2012 In the article “Social Media: How Tweet It Is,” BizEd names Darden one of the Top Five business schools for social media performance. Poets & Quants – 22 October 2012 Professor Ronald Wilcox is recognized as one of the world’s 50 best business school professors. According to the magazine, he is “a marketing professor extraordinaire … with the flare of a top economist.” Barron’s – 18 October 2012 Professor Saras Sarasvathy’s research on how great entreprenuers think is featured in a study of increasing confidence among small business owners. ESPN Playbook – 25 September 2012 In an ESPN discussion about how public pressure can affect the decisions of a private company like the NFL, Professor Ed Freeman addresses the issue of profits versus principle. “You can never cost-cut your way to greatness,” he asserts. CNN Money – 23 August 2012 Professor Alan Beckenstein puts economic stagnation into perspective, encouraging businesses struggling to survive in the short term to lead by example and think in the intermediate to long term. Harvard Business Review – July/August 2012 Professor Thomas Steenburgh co-writes the article “Motivating Salespeople: What Really Works,” which examines the success some companies find in tailoring rewards to different types of salespeople, accounting for various abilities and motivations.


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.

Faculty Spotlight “When people say I change their lives, what I do is I try to create questions. If they choose to answer them, they in fact would change their lives, not me. A great question takes you to a place you wouldn’t have gone had the question not been asked.” PROFESSOR ALEC HORNIMAN Killgallon Ohio Art Professor of Business Administration

Alec Horniman

Change Agent

by Jacquelyn Lazo


LEC HORNIMAN never intended to be a professor. Three days after graduating from Middlebury College, he was put on active duty as a second lieutenant in the U.S. Army. He served for four years before leaving for the University of California, Los Angeles (UCLA), Anderson School of Management. While earning his MBA, Horniman was recruited by North American Aviation to work in the company’s space division. The experience taught him how vital behavioral psychology is to business. “When I was at North American, the biggest problems we had were not money or technology, they were people and relationships. I thought, ‘This has to be one of the most important subject matters to cover.’ That’s what got me interested in — if not committed to — this area,” said Horniman, who is the Killgallon Ohio Art Professor of Business Administration at Darden and a senior fellow of the Olsson Center for Applied Ethics. Horniman’s teaching career began by chance at San Fernando Valley State College (now California State Northridge). One day, someone he knew at the college asked him to substitute for a professor who had not shown up. That evening, Horniman taught his first class on operations analysis. A friend then convinced Horniman to apply to Harvard Business School, where he wrote his dissertation for Secretary of Defense Robert McNamara. In 1967, Darden’s then-dean, Charles C. Abbott, hired Horniman as an assistant professor of business administration. Horniman accepted the position but intended to return to North American Aviation after three years. That was 45 years ago.



Horniman begins many classroom sessions with three questions: 1. What’s the most significant change you’ve made in the past year? 2. What change must you make in the coming year if you’re going to continue to develop the potential you represent today? 3. What about you must change and what about you must remain rock solid?

Let the Magic Begin At 2:50 p.m. on a Thursday in early autumn, Darden Classroom 190 is buzzing with student chatter. As the Second Years take their seats for “Leading Strategic Change,” one of the leadership and organizational behavior courses Horniman teaches, he paces the semicircle at the front of the room. The noise dissipates as he makes eye contact with students. He addresses them by name and engages them in light banter. Hearty laughter follows one exchange, and then the room goes quiet. The students are anxious for the show to begin. “Every week I’d come to class waiting for the curtain to draw and the magic to ensue,” reminisced Lilia Fusa (MBA ’12), a former student of Horniman’s. “Every day was an ‘aha!’ moment day. … I always found myself happily engaged in exciting conversations and debates with my classmates long into Cold Call and beyond.” Fusa nominated Horniman for the 2012 Morton Leadership Faculty Award, an honor he received in fall 2012. More Than Common Sense There is a distinct art to the way Horniman conducts his classes. He describes what he teaches as “common sense with some different labels,” yet his ability to “synthesize disparate ideas into a common sense framework” endears him to students like Fusa. Horniman’s success also lies in his approach: He is candid, curious and exceptionally mindful of how he crafts his questions. “I begin most of my sessions by asking three personal questions,” he explained. “What’s the most significant change you’ve made in the past year? What change must you make in the coming year if you’re going to continue to develop the potential you represent today? What about you must change and what about you must remain rock solid?” These questions, among others, have caused students to call him “a key differentiator for Darden,” “a master in the area of leadership” and “a change agent to everyone in The Executive Program: Strategic Leadership at the Top,” which

is Darden’s flagship, four-week advanced management residency for senior-level executives. “When people say I change their lives, what I do is I try to create questions. If they choose to answer them, they in fact would change their lives, not me,” said Horniman. “A great question takes you to a place you wouldn’t have gone had the question not been asked.”

Advancing Darden Executive Education Horniman’s questions also resonate with participants in his Darden Executive Education courses. “I love Executive Education,” Horniman said. “The students are different, usually older, and I love to have them bring their experience into the classroom.” Whether he is teaching “Managing Individual and Organizational Change,” “Leading Organizational Effectiveness” or “The Executive Program: Strategic Leadership at the Top,” he encourages his students to engage in thoughtful self-reflection and mindfulness. “Difficulties in leadership happen because of moral mindlessness,” he said. Horniman’s leadership training appeals to the military, with which Darden Executive Education has a long-standing relationship. “For many of [the officers], the way I ask questions and my style are a bit of a shock. People in senior military or private sector positions are often so senior that people don’t interact with them in meaningful, nonsubservient ways.” As a former Army officer, Horniman is acutely aware of how easy it is to treat people as objects rather than individuals in the military. He encourages his students to exchange information about themselves. “The more we can understand a person’s story, the more we can understand and appreciate who they are,” he said. The Four Dimensions of Ethics Horniman asserts that ethics also plays an integral part in our daily lives. “People say you can’t teach ethics, and I say, ‘You know, you’re right.’ What I can do is I can point out to you how your behaviors — every one of them — have an ethical, moral dimension. People judge you as to whether you tell the truth, keep your promises, respect others and treat people with fairness. Whether you like it or not, people judge you on one or more of those four dimensions in everything you do,” he said emphatically. Whether the topic is ethics or leadership, much of what Horniman teaches revolves around the fact that we have a choice in how we lead our lives. “What you say and do matters. Much of what we do is our own choice. Some of it is implicit, and we don’t realize it. Much of it is explicit, and we sometimes deny it, but we’re choiceful animals. We can choose from a repertoire of behaviors. That’s a gift.” Perhaps Horniman is himself a gift who has, for 45 years, been steadfastly training Darden’s students to be more ethical, mindful leaders.





THREE ACTIONS FOR EVERY STRATEGIC LEADER Strategic leaders face a daunting task: They must drive an organization to perform and deliver results by turning ambitious objectives — financial, strategic and organizational — into reality. At the top of an organization, problems and opportunities cross functional boundaries. Senior leaders must demonstrate global and strategic acumen and manage not only the growth of

their organizations, but also their personal growth. S. Venkatarman, known more commonly as “Venkat,” is faculty director of “The Executive Program: Strategic Leadership at the Top,” Darden’s four-week, flagship advanced management Executive Education experience for senior-level executives. He explains that strategic leaders engage in three key actions, as follows:

Think Strategically. •

Contemplate and shape an organization’s future direction by examining the strategic landscape, envisioning different futures, questioning assumptions and mental models, and assessing capabilities.

Take an integrated, enterprise perspective.

Conduct conversations that inspire diversity of thought and inclusive dialogue. Ask powerful, and sometimes difficult, questions.

Identify connections, patterns and key issues. Find your organization’s Value Creation Zone.

Lead Strategically. •

Manage the tension between short- and long-term results.

Integrate the perspectives of a manager and leader and turn vision into reality.

Invite, include and inspire the team, achieving a balance between autonomy and direction.

Become a leader of leaders and develop a personal learning strategy to continue your personal growth.

Influence Strategically.

S. Venkatarman, faculty director of The Executive Program: Strategic Leadership at the Top



Lead change by creating effective leadership teams, building valuable relationships and continuously engaging others.

Nurture a high-performance culture.

Navigate politics to influence transformational change.

Through learning and conversation, expand and broaden the views of your team so that it can envision, embrace and execute new opportunities.

The Executive Program: Strategic Leadership at the Top 2–28 June 2013 Darden School of Business +1-434-227-4200 or

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.

case in point A Washington Post/Darden series

An $800,000 Test of Trust by Andrew C. Wicks

The big idea: James Bowman of Coopertree Investment Partners is asked to deposit $800,000 into a bank account in the hopes of arranging a meeting with a coveted investor in China. The payoff could potentially be huge for the firm, but how does Bowman know he won’t be taken advantage of? Bowman was a founding partner at Coopertree Investment Partners, a New York private-equity fund, whose clients were primarily U.S.-based. Eager to invest in China and knowing that the Coopertree model would appeal to Chinese investors looking to diversify their holdings, Bowman and his colleagues had identified China Investment Corp. (CIC) as the best firm to approach. Owned by the People’s Republic of China and headquartered in Beijing, CIC oversaw



Robert Dale/Illustration Source

The scenario:

Every other Sunday in The Washington Post’s Business section, Darden professors share lessons from recent cases. Andrew C. Wicks (left) is the Ruffin Professor of Business Administration, director of the Olsson Center for Applied Ethics and director of the doctoral program.

more than $400 billion in assets and employed almost 500 people. CIC was notoriously private. You could not pick up the phone to make an appointment with its investment professionals. Instead, you had to be introduced. One of Coopertree’s investors knew C.K. Laoshi, a manager at the state-run China Power Investment Corp., who was well-connected to a CIC manager. If Bowman flew to China, Laoshi might be able to make an introduction to CIC. The vague nature of the arrangement made Bowman uncomfortable, yet he decided it was worth the trip. Bowman would fly to Beijing and go to Laoshi’s home for a meeting. If it went well, then Laoshi would make the introduction to CIC. Before Bowman departed, the investor pulled him aside for one last piece of advice: Chinese culture is an enormous source of pride. Many businesspeople in China, like Laoshi, operate under the principles of Confucianism seamlessly in their work and home lives. And there is a traditional belief that all things — people, places and relationships — contain elements of competing forces that must be kept in balance. The Chinese tend to put enormous emphasis on building close, trusting relationships in business; they don’t tend to rely on contracts as much as Americans do. When Bowman landed in Beijing, he was met by a lavishly equipped limousine sent by Laoshi. It was clear upon meeting Laoshi that he was extremely courteous; he gave Bowman a warm welcome and introduced him to his wife. But after they sat down, the first request Laoshi made, in the

introductory conversation, was that Bowman deposit $800,000 into a Chinese banking account. Laoshi said this was to build trust and the money would be returned to Bowman within 30 minutes of receipt. Bowman had two days to consider his request.

The resolution: After considerable thought, Bowman decided that he could not justify using company funds for a potential connection without a guarantee of getting the money back. He did not know whether he could trust Laoshi after just meeting him.

Appreciating the value of trusting relationships is universal; understanding how to create and maintain it is something that takes knowledge of the people and places involved.

The lesson: This case highlights the critical importance of trust, integrity and prudence in a global marketplace. Even without a more nuanced understanding of Confucianism and business in China, Bowman could appreciate the magnitude of the decision he faced: Make the payment and secure a contact in the Chinese market, windfall profits for his firm and a trusted friend. However, if that trust were misplaced, he would be out $800,000 and look foolish with no recourse. Trust is a critical asset in business, particularly in areas of global business where relationships and reputations matter a great deal. To make an informed decision, it is critical for Bowman to know more about who he is doing business with and how business is done in China. Appreciating the value of trusting relationships is universal; understanding how to create and maintain it is something that takes knowledge of the people and places involved. Making such decisions and taking responsibility for these choices is part of the moral burden of managing.



From Combat To Cold Calls

The Darden School of Business has cultivated a long-standing relationship with the United States military over the past 36 years. Darden’s commitment to developing principled leaders in the world of practical affairs is directly in line with the military’s objective to train world-class officers who perform effectively on and off the battlefield. In the past five years, Darden Executive Education has deepened its relationship with the U.S. military, with the goal of developing unique strategies that further the military’s mission. In response to demographic trends, the U.S. military aims to actively leverage diversity and has sought out Darden as a strategic partner. Demographic trends show that the world is becoming increasingly more racially, ethnically, culturally and linguistically diverse. According to a recent U.S. Census Bureau study, minorities will make up 50 percent of the population by 2042. Class distinctions are growing, with Caucasian and Asian-American populations forecasted to earn more than twice the number of college degrees compared with African-Americans and Hispanic-Americans. Military leaders must adjust to the increase in nontraditional family structures and the unique lifestyles and attitudes of the millennial generation.



by Carlos Santos

The military’s current goal, brought about in part by President Barack Obama’s directive to promote diversity, is to establish an inclusive culture in which everyone’s contribution is valued equally. Darden’s unique approach to leadership and diversity training makes the School an ideal environment for military officers to enhance their leadership skills. Officers at Darden learn how to create a more cohesive and inclusive military force by learning about the subtleties of micro-aggression, the complexities of why humans unfairly categorize people and how to set aside biases. “We believe that inclusion only happens when leaders become aware of their unconscious biases and make proactive choices in engagement, language and behavior that invite, include and inspire others,” says Tom Cross, senior director of Executive Education, who is credited as “the single, determining force behind bringing the military to Darden,” according to Professor Alec Horniman, Killgallon Ohio Art Professor of Business Administration and senior fellow of the Olsson Center for Applied Ethics. With Cross’ help, the School has developed an extensive curriculum, which features the thought leadership of many Darden professors, including Alec Horniman, who addresses inclusive leadership; Martin Davidson, who discusses how to leverage differences; Erika James, who concentrates on gender and leadership; Scott Snell, who addresses human resource management; and Jared Harris and Andy Wicks, who focus on strategic thinking and ethical decision-making. “All of the services have embraced Darden’s new approach,” Cross says. Darden designs courses for senior leaders of the Army, Air Force, Navy, Marine Corps and Coast Guard and has conducted nearly 100 Darden Executive Education courses for more than 3,000 military leaders. Since 2009, Darden has held 25 Air Force enterprise leadership seminars. Five more are planned for 2013. Each year, the School offers three Navy courses about strategic thinking for admirals and two Navy courses about understanding the industry. The Army, which currently enrolls personnel in two to four courses per year, is looking to develop new programs in the near future. “Our business with the military in the past five years has tripled,” says Cross. “Darden is

committed to tailoring programs to suit its needs. Darden professors have written 26 cases for the military on such topics as the F-22, Virginia-class submarine, Mine Resistant Ambush Protected Vehicle and F/A-18.” Military personnel participate in all three formats of the Darden MBA — the full-time MBA, the MBA for Executives and the Global MBA for Executives. Currently, 7 to 9 percent of Darden’s incoming class is comprised of students with military experience. The unique perspectives they bring to the classroom, along with the breadth and depth of their experiences and backgrounds, enhance the academic environment for their peers and professors. “Veterans enrich our learning community. We actively seek excellent students from the ranks of the military,” wrote Darden Dean Bob Bruner in a blog post. “I see among our military veterans a tendency to lend a hand, form a team, find common ground, help a neighbor and share ideas. … They are people of proportion, willing to listen to all sides of a debate and yet think for themselves.” A Darden education allows military officers to enhance their leadership effectiveness by redefining diversity. “At Darden, we help leaders overcome biases. We encourage them to adopt more inclusive behavior and attitudes. That leads to true breakthroughs,” says Cross.

All Humans Are Instinctively Biased

Part of the breakthrough process involves understanding human biases and habits, which is one of Horniman’s areas of expertise. He spends his classroom time “helping people expand and deepen their personal categories. Learning about that helps them learn how to approach diversity differently and recognize people for their individual talents.” To Horniman, all humans are instinctively biased. “For the brain to work, it creates categories. The more you use a category, the more it uses you. Any ‘ism’ — such as racism — is a consequence of categorization.” But, as Horniman points out to his students, seeing people as individuals rather than categories leads to better leadership. “The more you can distinguish a person from his or her category, the more value he or she has.”

Darden has conducted nearly


Executive Education courses for

3,000 U.S. military leaders. Darden professors have written


cases for the military. In the past


years, Darden Executive Education has tripled its business with the U.S. military. Darden has held


Air Force enterprise leadership seminars since 2009.



The U.S. Military: A Global Enterprise

Darden is helping U.S. military officers to actively leverage diversity. “In addition to traditional ways of thinking about diversity, I want them to think about how their rank and authority will cause people to unquestioningly comply with the directions they are given.” —PROFESSOR JARED HARRIS

Diversity training has been well received by the officers, primarily because of Darden’s innovative approach to the subject. In his class, Professor Martin Davidson differentiates between managing diversity and leveraging difference, concepts that go beyond issues of gender and race. Instead of focusing on filling quotas, Davidson stresses the importance of identifying and taking advantage of the differences that help achieve the goals of the organization. “Since the U.S. military is a global enterprise, cultural differences are always important,” Davidson says. Professor Jared Harris seeks to help military students understand what he calls the “hidden bias toward obedience to authority,” which does not necessarily include race or gender differences. “What I explore is the ‘white lab coat phenomenon’ graphically demonstrated in the Milgram shock experiments. People are hard-wired to obey a person in authority,” comments Harris.

“In addition to traditional ways of thinking about diversity, I want them to think about how their rank and authority will cause people to unquestioningly comply with the directions they are given,” he says. Diversity of opinion is vital in the military, where the norm is to simply follow orders. The Army seems to agree that Darden’s novel methods are on target. Lieutenant Cornel Vanessa Benson, director of External Training for the Defense Equal Opportunity Management Institute, who worked with Cross to develop a twoday course at Darden this fall for approximately 40 leaders from all the military services, says the Darden courses make military leaders think differently about diversity resistance, gender and leadership, and the psychology of bias. As the long-standing relationship between Darden and the military continues to develop, the professors hope that the end result of Darden diversity training will be a smarter, stronger, more ethical and inclusive U.S. military.

MILITARY STUDENTS AT DARDEN Each fall, Darden welcomes MBA students with military experience. They make up approximately 7 to 9 percent of the incoming fulltime MBA class, and their battlefield experiences enhance classroom discussions. Four current full-time MBA students — who were trained by the U.S. military — offer their opinions on how Darden’s teaching philosophy has augmented their leadership training. MARIA WELCH (Class of 2014), a 29-year-old surface warfare officer who spent seven years in the United States Navy, appreciates the camaraderie she experiences at Darden. “There is an openminded, synergistic learning environment in which each of us contributes based on our expertise,” she said, adding that she found Professor Kristin Behfar’s approach to leadership training effective. “She breaks down leadership into collaborative efforts, which the Navy doesn’t emphasize. This is my first experience without a formal leadership structure, and I’ve enjoyed discovering the benefits of informal leadership.”


JUSTIN MAYER (Class of 2013) is a helicopter pilot in the U.S. Marine Corps. His most recent deployment, which was to Afghanistan, ended one month before school started. The 30-year-old Richmond native said Darden gives him “a broad foundational understanding of business.” He believes Darden’s leadership training complements his Marine Corps training, which “developed the basis for my leadership style. “Darden is providing me with the time and business acumen to translate what I learned and soften it appropriately for the civilian world,” said Mayer.


LAURA DALTON (Class of 2014), an Air Force communications officer currently serving as an Air Force reservist at Langley Air Force Base, was an “Army brat who lived all over” and graduated from the University of Maryland. Dalton, 26, said Darden’s leadership training is “different from the military, where buy-in is nice, but not necessary. What I learned working in the Air Force and as a civilian is that teams and projects are more likely to succeed if every team member buys into the idea and the mission.”

PHILIP KIM (Class of 2014), a West Point graduate, was a medical officer in the Army serving as chief of staff to all the military base dental clinics in Fort Jackson, South Carolina. He welcomes the enthusiasm and diversity of Darden: “Everyone in my class is energized, and each of them provides a unique perspective.” When it comes to transferable skills, Kim, 28, said, “Darden is equipping me with effective leadership tools that address the many unique challenges of managing a business.”


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



Second Chances

by Carlos Santos

Each day, nearly 1,600 prisoners in the United States leave jail and reenter society. One of the primary factors influencing recidivism, or the return to prison, is the inability to find a job. Darden School of Business Professor Greg Fairchild believes that prisoners can transform their lives through entrepreneurship and human courage. With the help of Darden faculty and MBA students, he has launched a program to teach entrepreneurship to prisoners so that when they get out of jail, they have the skills to stay out of jail.


n fewer than 18 months,

inmate Kirk Smith will be released from the Dillwyn Correctional Center in Buckingham County, Virginia, having completed his sentence of more than 20 years. Smith admits he’s anxious about his employment prospects beyond the prison walls. He knows jobs are scarce, and jobs for convicted felons are even scarcer. He also knows that former convicts need jobs to stay out of prison. But he carries a new skill set that is potentially a gamechanger. He’s been trained as an entrepreneur through an innovative program offered by the University of Virginia Darden School of Business. Smith, wearing prison blues — blue jeans and a lightblue cotton shirt — presents his detailed business plan to his classmates. His concept is to launch a custom painting business once he is released. “I’m still scared,” said Smith. “At times, I was pulling my hair out. But now I have more confidence. Now I believe I can start this business. I know I would have failed miserably without this class.” Gregory Fairchild (MBA ’92), E. Thayer Bigelow Associate Professor of Business Administration at Darden, spearheads the experimental program, which was first offered in April 2012. “I believe people can change,” said Fairchild, who plans to teach similar courses at other prisons in Virginia in addition to Dillwyn. “I believe educational institutions can make a big difference. This is a world-class university and a world-class business school, and developing leaders to improve society is

our stock-in-trade. We usually get the most prepared, the most advantaged students. I believe we can use our skills to teach the least prepared and the least advantaged. I believe this is possible.” In a high-ceilinged classroom deep in the heart of Dillwyn Correctional Center, a medium-security prison housing more than 1,000 inmates, 13 convicted men are learning about entrepreneurship. The classroom is clean and well-organized. Narrow, glazed windows permit minimum daylight to flow into the room. Inspirational quotations on poster boards are taped to the room’s cinderblock walls. “Be the man by being employed,” one reads. “Manage the money,” declares another. “Take care of family.” The squat, concrete-walled prison is ringed by high fences, razor wire and guard towers. It’s located a few miles north of rural Dillwyn, the town for which it is named. The offenders, as they’re called by the Virginia Department of Corrections, range in age from mid-20s to mid-50s. Two earned college degrees. All of them are well-spoken and focused. All of them have committed serious crimes, ranging from robbery to burglary to murder. All of them also have entrepreneurial dreams. Stuart Shelton wants to start an Internet necktie store, Jason Tisdale plans to offer a computer consulting service, Chris Archie will repair computers, John Vest wants to create an apparel business, James Harvey intends to open a retail bargain store similar to a mom-and-pop version of Big Lots, and Bakuma Boyd hopes to establish an occupational service for convicted felons called the Second Chance Employment Agency.



566,000 If you had asked me whether I would have hired someone with a criminal record last year, I probably would have said ‘no.’ This experience has opened my eyes to the potential people have when they truly commit to turning their lives around.” — MARK LUND (MBA ’12)

Greg Fairchild (MBA ’92), E. Thayer Bigelow Associate Professor of Business Administration at Darden, was named one of the 10 best business professors in the world for 2012 by CNNMoney/Fortune.


ex-offenders leave U.S. prisons and enter parole each year. “I want to change the stigma surrounding offenders,” said Boyd. “If you start your own firm, you put yourself in the position to help someone else.”

A Career Built on Helping the Disenfranchised Fairchild is well-suited to teach these men, some of whom struggled in school, especially with math — a key skill for business people. With a Ph.D. in management from Columbia University, Fairchild has made a career of helping the disenfranchised. “All of my work is oriented toward outreach,” he explained. He’s researched how banks support lowincome clients. He’s traveled to Haiti to create a business plan to operate a health clinic and trade school. He’s taught classes in New Orleans on how to help rebuild the city. “I like to teach in places that are tough, with people who people think are tough,” Fairchild said. His motivation is also personal. Some of his friends and cousins have had “their lives upended” by prison and jail sentences. Fairchild teaches entrepreneurship at Darden, in addition to ethics and business strategy. He is also academic director of the Initiative for Business in Society (IBiS), which prepares leaders to make a positive impact on society through business. Fairchild was instrumental in creating the Tayloe Murphy Resilience Awards at Darden, which are organized by IBiS. The awards


recognize Virginia companies in low-income areas that — despite the odds stacked against them — have managed to thrive and uplift their communities. Fairchild established the prison entrepreneurship initiative in 2011 after an inspirational conversation with Darden Dean Robert F. Bruner. Bruner had received a letter from an offender at the Pocahontas State Correctional Center in southwest Virginia, asking for help finding a job after his release. “The inmate’s boldness in reaching out to Darden for help caught my attention,” said Bruner. “Darden has long lines of applicants and executives seeking to study here, most of whom are lucky and/or able to negotiate the opportunities and challenges that society presents. So here was someone who had taken a very different path in life.” “Given the high and rising demands on our School, it would have been easy to decline the request,” Bruner added. “Fortunately, our faculty and staff are receptive to unusual opportunities and oriented toward servant leadership. Fairchild, who is interested in the economic development of disadvantaged communities and conveying the ideas behind business and entrepreneurship to a general audience, ran with the idea.” Fairchild created a groundbreaking proposal, the “Prisoner Reentry Training Program,” for which the University of Virginia Mead Advisory Committee gave him the John Colley Award. Each year, the award honors and funds the “Dream Idea” of a Darden professor.

Turning a Dream Into Reality Fairchild began reading about the history of prisons, with a focus on ones located in Virginia. Serendipitously, he also read a story from Bloomberg Businessweek about Texas’ Prison Entrepreneurship Program. Based at

Darden Professors James Rubin, Marc Modica and Greg Fairchild, teach entrepreneurship skills to 13 convicted men at Virginia’s Dillwyn Correctional Center. The first program concluded in August 2012, and the test of real life will soon begin for the inmates when they reenter society. “Theirs will be a true test of resilience,” said Fairchild.

the Cleveland Correctional Facility in Houston, it was founded eight years ago and now receives more than 2,000 applicants each year. Approximately 800 inmates graduate from the program annually. So far, these graduates have founded 106 businesses, one of which brings in more than $1 million of revenue each year. The recidivism rate of those graduating from the Texas program is just 5 percent, versus 25 percent statewide. Fairchild and five of his Second Year Darden MBA students trekked to Texas to learn firsthand about the innovative initiative — the only one of its kind in the country. “We came back armed with that knowledge and started to design our own program,” said Fairchild. Fairchild’s program includes 22 Darden cases, four new cases written specifically for the offenders, math testing, development of a personal business plan and a final exam. Classes at Dillwyn were taught by Darden students Mark Lund (MBA ’12), Semyon Shtulberg (MBA ’12), Anders Hvelplund (MBA ’12) and Chris McCann (MBA ’12), as well as researcher Mallory Joyce and Fairchild. The team met for two hours at a time, three times per week.

“Put It in the Plan” Fairchild is relaxed but straightforward with his inmate students. That they like their professor is obvious. In one class, Demon Gunter touts the business plan for his proposed company, “Move Around Movers.” But the classroom consensus is that Gunter’s plan is too vague. His classmates note that his prices are below industry standards. Fairchild points out another problem: Although Gunter has extensive knowledge of and experience in the moving industry — having worked in the field for many years — this doesn’t show in his business plan. “Put it in the plan,” Fairchild advises Gunter. “You have to tell people what you know. That way, the reader of the plan

knows you know.” Gunter agrees with all of the suggestions. The students say they are bent on succeeding. “Everybody feels good about this,” said Fairchild. “Everybody has good feelings, from the guys in the room to the folks at the Department of Corrections in Richmond. What we don’t know is how many will pass the ultimate test.” That test is this: How many of the inmates will stay out of prison? The answer may take at least three years to materialize, according to Fairchild. Will any or most of his students be behind bars by then? For his part, Fairchild has faith that his inmate students can make it in the business world.

The Future Beyond Bars Fairchild’s Darden students agree. At the end of the class, Fairchild asked his student teachers to write about their experiences. Mark Lund, who taught finance and math-based case studies at the prison, surprised himself with his discovery. “From the time I walked into the Dillwyn facility to now, my perception of American prisons has completely changed,” he admitted. “If you had asked me whether I would have hired someone with a criminal record last year, I probably would have said ‘no.’ This experience has opened my eyes to the potential people have when they truly commit to turning their lives around.” Fairchild has high hopes for the future of the program. He plans to continue it at Dillwyn and expanded it in fall 2012 to the Fluvanna Correctional Center for Women in Fluvanna County, Virginia, which houses more than 1,200 female inmates. The first program concluded in August, and soon the test of real life will begin for many of the inmates who participated. Can the prisoners transform their lives through entrepreneurship education and human courage? Can they beat the odds stacked against them? “Theirs will be a true test of resilience,” acknowledged Fairchild.

Get an inside look at a prison business pitch.

I’m still scared. At times, I was pulling my hair out. But now I have more confidence. Now I believe I can start this business. I know I would have failed miserably without this class.” — KIRK SMITH, an inmate who will soon be released from Virginia’s Dillwyn Correctional Center



Alumni Services: Beyond Graduation Michael J. Woodfolk (TEP ’05) Executive Director, Alumni Services AT DARDEN, WE ARE PROUD to be one of the world’s most forward-thinking business schools. As the global business landscape evolves, so do the needs and desires of our alumni. We have developed a new services-oriented model specifically designed with you in mind, to ensure that you achieve future business success by maximizing every engagement opportunity Darden has to offer. Darden Alumni Services provides you with direct access to lifelong learning and the School’s extensive resources, to help you enrich your life regardless of where you are in your career. We believe that a well-rounded Darden education extends beyond graduation. Your engagement with your fellow alumni and the School doesn’t have to be limited to what you read in this magazine. As a Darden graduate, you are a member of an international network of more than 14,000 people in 87 countries. Take advantage of these valuable connections and attend our alumni and admissions events, join a local chapter or propose a new one and come back for Reunion. We offer on-Grounds concierge services, whether you want to sit in on classes, meet with professors or connect with U.Va.’s Admission Liaison Program, which provides a point of contact and a source of information for alumni families who have children applying to one of U.Va.’s four undergraduate schools. We encourage you to consider writing a case with one of our world-class faculty members. We offer substantial savings when you enroll in Darden Executive Education, a Top Five global provider of open-enrollment programs for eight years in a row, which offers innovative, experiential learning with real-world insights to help you solve your toughest business challenges. Many of you already give back to the School in a variety of ways, by volunteering your time, coming back to teach a class, speaking at student conferences, referring prospective students or contributing financially. We cannot thank you enough for your dedication to Darden. Alumni make the School stronger. Thank you for continuing to tell the Darden story. See what’s possible through Darden Alumni Services, and let us know how we can further enrich your alumni experience.

IN MEMORIAM Mr. H. Hansell Ritter (MBA ’57) Mr. Robert P. Martin Jr. (MBA ’58) Mr. Richard P. Sullivan (MBA ’58) Mr. J. Armistead Burwell Jr. (MBA ’58) The Honorable Robert W. Daniel Jr. (MBA ’60) Mr. Thomas D. Gill (MBA ’61) Mr. Barton M. Briggs (MBA ’62) Mr. James M. McCarthy (MBA ’63) Mr. Edward G. Webb Jr. (MBA ’63) Mr. Ernest J. Harp (MBA ’64) Mr. D. Wayne Wright Jr. (MBA ’65) Mr. Robert L. Henkle (MBA ’65) Mr. E. Ralph Biggadike (MBA ’72) Mr. John K. Roberts (MBA ’73) Mr. Edward R. Fickenscher (MBA ’75) Mr. Scott W. Lucas (MBA ’78) Mr. Larry A. Maier (MBA ’79) Mr. Earl R. Shirley III (MBA ’91) Mrs. Terry Kriebel Goodnight (MBA ’91) Mrs. Patricia Woods Varney (MBA ’10) 32 2012


To update your contact information, call +1-434-243-8977 or e-mail



Allan Staats (MBA ’62) Creates Fellowship in Honor of Darden Experience Allan Staats’ dynamic career working for Standard Oil Company (New Jersey), the United States Army Corps of Engineers and Exxon International sent him around the world. He often flew to Europe, South America and the Far East on business. Since his retirement in 1997, he continues to travel, predominantly in the United States, with his wife, Barbara. Of his passion to see the world, he says, “It’s the travel bug and the love of being with people. It’s just in my blood.” Staats’ adventurous spirit developed from an early age. In 1953, as a 14-year-old, he traveled by himself on a special train exercursion from Philadelphia to Southern California for the National Boy Scout Jamboree at Irvine Ranch. This experience, coupled with summers spent working on a Colorado dude ranch as a wrangler, ignited his passion for travel. Staats credits Darden for changing the trajectory of his life. As a Lafayette College graduate with a mechanical engineering degree and few attractive job prospects, he decided to enroll in Charlottesville’s then four-year-old business school. “By Thanksgiving of my First Year, I came home a new person,” says Staats. “Darden opened new vistas and expanded my interests.” Upon graduation, Staats was hired by Standard Oil Company (New Jersey). He left shortly thereafter for northeastern France as an officer in the Army Reserve.Upon returning in 1965, “By Thanksgiving he was transferred to Exxon International in New York City, where he worked in the areas of of my First Year, I global finance, sales, marketing and supply for 35 years. Staats, 74, has been a consistent supporter of the Darden Annual Fund. This year, he came home a new returned to Darden for his 50th reunion, where he announced the Allan and Barbara Staats person … Darden Fellowship, which will be awarded to a full-time MBA student. Staats and his wife established opened new vistas the fellowship in honor of the reunion and in gratitude for the profound effects the School has had on his career. and expanded my The Staatses, who married in June of 1996 after years of an on-and-off courtship, have interests.” visited nearly all of the continental United States, and enjoy sports, theatre and the movies. When they’re not on the road, they spend their days in New Jersey, at either their Morris Township home or their oceanfront condominium in Long Branch. By Carlos Santos



Country Living in Virginia

Class Notes

Anchorage Farm

745 acre historic estate 6 mi South of Charlottesville enjoying panoramic mountain views and absolute privacy. Wonderful 5300 s.f. manor, historic home c.1825, on National Register and Va Landmarks Register. Land is gently rolling and traversed by Hardware River; suitable for vineyard, crops or pasture. Frank Hardy 434-296-0134 or Duffy Birckhead 434-531-6070

Cove Lawn Farm, c. 1782 Restored historic farmhouse in a picturesque country setting. Over 24 acres, the property has three creeks and mountain views in all directions. The c.1782 home features all of the modern conveniences. The appx 3600 sf of the home include painted wood floors, beautiful second story sun room, carved wood mantles and crown molding. Guest cottage, separate 1bd apartment, studio, storage sheds and garage space all on property. Ann Hay Hardy (202) 297 - 0228

Edgewood Farm, c. 1852

Sunnyfields, c. 1830 Adjacent to Monticello and neighbor to Ash Lawn is this historically significant home of Thomas Jefferson’s builder. Over 11,000 sf with 5 bedrooms, amenities include a pool, tennis court, and guest house. 5 miles from downtown Charlottesville. Ann Hay Hardy 202-297-0228

RiversBend On the James River and historic Kanawha Canal - Jeffersonian Palladian designed home. Features include hand painted muraled walls, octagonal 3rd floor observatory and solarium spanning 2 floors. 35 acre horse property with park like setting and pool. Includes multiple private islands on the river. 20 minutes to Richmond. Recently reduced. Ann Hay Hardy 202-297-0228

Maple Lawn, c. 1799

Near Somerset. This historic manor home has been meticulously renovated and improved. Dependencies include new guest quarters, office/garage complex, new pool, gardens and farm manager’s home. The estate is located on 200 gently rolling acres with a mile of frontage on the Rapidan River. The majority of the land is open in pastures, hay meadows and fenced paddocks ideal for horses. There is also a newly constructed equestrian center. Frank Hardy (434) 296 - 0134

Located just 70 miles from Washington, DC on 13.53 acres between Orange and Culpeper. The historic manor home offers four large bedrooms, five fireplaces, gourmet kitchen, gracious formal living and dining rooms with beautiful millwork, and a family room with stone fireplace. The home enjoys several terraces as well as a pool and tennis court. Frank Hardy (434) 296 - 0134




MCLEAN FAULCONER INC. REALTORS Charlottesville, Virginia’s leading farm and estate brokers invite you to preview a sample of our 2011 current offerings. . .

IVY VALLEY – Traditional all brick manor home, built 2008, just 5 miles west, expert craftsmanship and materials. State-of-the-art technology and space, over 11,000 sq.ft. total, 6 bedrooms, Blue Ridge views, 3 ac. and WELL PRICED! MLS#503218, Jim Faulconer (434) 981-0076.

OLD WOODVILLE - Being offered for sale for the first time in over 75 years, this magnificent 176+ acre historic estate is nestled among other notable farms & estates in the historic Green Mountain District of southern Albemarle County. Timeless c. 1796 main residence features original details including hand-carved moldings, mantels & wide-plank heart-pine flooring. Pool, guest cottage, barns, equipment storage & other outbuildings. Picturesque setting, rich farmland, 5-acre lake. Steve McLean (434) 981-1863.

FOX RIDGE FARM - Spectacular 200+ acre country estate offers extensive equestrian facilities, complete privacy, extensive frontage on Moorman’s River & sweeping Blue Ridge Mtn. views. Elegant brick manor home, pool, pool house, multiple residences/cottages. Numerous outbuildings, 6 ponds, trails. MLS #503593

BUCOLIC SETTING - 61+/- pristine acres of gently rolling land offering privacy, frontage on Moorman’s River and a superb rural setting only 9 miles from Charlottesville. 3BR/2.5BA residence, beautiful pastoral vistas, hardwood forests and trails. $1,385,000. MLS #503656 Steve McLean (434) 981-1863.

BLUE ACRE FARM - Award winning contemporary, 192 acres of rolling to hilly fenced pastures & hayfields, deep hardwood forests, stunning Blue Ridge views, sunsets & pristine countryside! Only 18 miles NW of Charlottesville. Jim Faulconer 434-981-0076. See brochure at

THIMBLE FARM - Stunning pastoral & mountain views, only 10 minutes west of Charlottesville. 4BR/4BA Tommy Craven designed brick home, c. 1949, on 36+ acres. Pool, guesthouse, barn, tenant cottage, garages & other outbuildings, pond, stream. MLS #503708 Steve McLean (434) 295-1131.

NEAR IVY – Spacious, superb construction, elegant and comfortable best describe this lovely all brick home, circa 2006. Almost 7,000 finished sq.ft., main level master suite, 3 family rooms, or other uses. Priced below appraisal! $1,495,000. MLS#503530. Jim Faulconer (434) 981-0076.

SWEEPING BLUE RIDGE MTN VIEWS - Enjoy complete privacy, a stunning rural setting & an expansive quality-built residence from over 44 acres of gently rolling countryside, just 20 miles north of Charlottesville. The 10,000+ finished sq.ft. home features soaring ceilings, arched doorways, 4 fireplaces, spacious 1st floor master bedroom suite, wine cellar, theater room & an indoor swimming pool. Price available upon request. Steve McLean (434) 981-1863. MLS #504229

WILLOWBROOK - Spacious Virginia farmhouse, circa 1940, enlarged and renovated. 24 acres just 3 miles west of Charlottesville, off of Garth Road. Lovely bucolic setting, great horse property. 5 BR/4.5 BA residence, over 5,000 finished sq.ft., extremely charming! Pool and barn. Surrounded by large properties with protected views. Call Jim Faulconer (434) 981-0076 for brochure and price. MLS#495430.

OFF GARTH ROAD – Impeccably maintained mostly one level 3 BR home privately situated on 2.76 ac. only 3 miles from Charlottesville, Blue Ridge view and beautiful pastoral view of adjoining horse farm. Great details in residence, formal and informal. $895,000. MLS#502478. Jim Faulconer (434) 981-0076

STUNNING BLUE RIDGE MTN VIEWS can be enjoyed from this impressive 4,500+ sq.ft. brick Georgian located in “The Rocks”, minutes west of Charlottesville. 2.5 ac., 1st floor master suite, paneled library, chef’s kitchen, Gunite pool & detached pool house. $1,495,000. MLS #499050

503 Faulconer Drive, Charlottesville, VA 22903 PH: (434) 295-1131 FAX: (434) 293-7377 ~ ~ THE DARDEN REPORT | FALL/WINTER 2012


I came to Darden in 1991 intending to start an investment advisory firm. With ten years of Wall Street experience prior to Darden, I refined what I already knew about finance & investments and developed a deeper understanding of markets, economies and industries. I chose classes in marketing and operations critical to the success of an entrepreneur. I founded Heron Financial Group | Wealth Advisors in September 1993.

DAVID EDWARDS - DARDEN CLASS OF 1993 One of the key management concepts we learned at Darden was the importance of identifying capable experts and delegating responsibilities accordingly. The same is true with our financial lives. Investing, tax, retirement and estate planning is increasingly complex, but many professionals still manage their own investments instead of partnering with an advisor. While financial ruin may not be the result, missed opportunities and unexplored options should be a concern. Despite the most terrifying financial conditions in the last 5 years anyone could imagine, I am proud that the individuals & families who depend on us remain on track. The proof is that our retired clients received their monthly cash distributions without fail through the entire financial crisis, while the clients who are investing for the future are at or near record levels in their portfolios. We accomplished this by managing short-term needs in low volatility reserves while maintaining our exposure to higher risk/higher return investments for long-term growth. You may be wondering whether your financial plan will achieve your goals. I would be delighted to perform a complimentary diagnostic of your current situation.

Let’s begin the conversation today! Yours sincerely,

David Edwards, President

Heron Financial Group I Wealth Advisors counsels individuals and families on investments, asset allocation, executive compensation, 401K planning for individuals and businesses, life insurance & annuities, college tuition, retirement, estate and divorce planning. Our purpose is to clarify and simplify the means by which our clients will achieve their financial goals. Our clients are executives, managing partners of law firms and consultancies, Wall Street professionals, owners of businesses, and heads of families. Relationships begin at $500,000 in investable assets. Assets held in custody with Fidelity Investments, Boston.

We take CARE of your financial life! New York • • Nantucket

(800) 994-3766 36







Class Notes



Elizabeth M. Hagood (MBA ’89) Preserves the Lowlands Elizabeth McMillan Hagood is passionate about the outdoors. Her goal is to preserve the open spaces and vistas of South Carolina’s lowcountry for future generations. Hagood works with the area’s coastal landowners — some of whom have farmed the earth for years — who are determined to “leave the land better than it was.” As executive director of the Lowcountry Open Land Trust in Charleston, South Carolina, Hagood helps landowners ensure that their land will be protected in perpetuity by creating conservation easements. “Their desire to protect the land is greater than their desire to profit from the sale of it,” says Hagood. “I feel fortunate to be able to work with people who care so deeply about the land.” Hagood notes that her biggest opportunity is “working with the community to help them appreciate how integral conservation is to economic development.” She adds, “In Charleston, the quality of life is a primary factor in driving economic growth. People are drawn to the beauty of the region.” According to Hagood, Darden was instrumental in providing her with the skills she needed to run a successful nonprofit. “I’m a collaborative person,” she explains. “The case method and team approach drew me to Darden, where I developed a better understanding of how stakeholders and shareholders think.” Former South Carolina governor Mark Sanford (MBA ’88) recognized her business acumen and awarded her the prestigious 2008 Order of the Palmetto, the state’s highest civilian award. Darden helped enrich other areas of Hagood’s life, as well. “I came to Darden single and left married — a great dividend,” she says. Hagood tied the knot with her husband, Maybank Hagood (MBA ’89), the summer after their First Year at the School. Hagood, 51, and her husband live in Charleston with their children, Alex, 20; Caroline, 18 (a first year student at U.Va.); and Banks, 16. By Carlos Santos



To update your contact information, call +1-434-243-8977 or e-mail


When planning to dine, shop or see an art exhibit, few consider selecting a continent. Reynaldo Roche, who joined Delta Air Lines after receiving his MBA from Darden, has frequently encountered such luxurious decisions, having logged more than 500 flights to 80 countries. But he has also found the aviation industry to be “brutally competitive.” He somehow manages to chart a course between these two extremes, grounding himself through lessons learned at Darden and in life. “Air travel is a symbol of freedom and success, but I have learned to measure success by internal growth, the impact I have made in an organization and the contributions I have made to my community, family and peers,” said Roche. “I probably would have been a bit misguided in my career were it not for Jim Clawson’s Level Three Leadership class, where I learned that people who are themselves at work go farther than those who alter who they are in order to fit in.” To ensure that future Darden students benefit from that lesson and to bolster the community’s commitment to strength through diversity, Roche created an endowment for the ongoing support of Gays, Lesbians and Allies at Darden (GLAD). “Organizations like GLAD are a key component to attracting top talent and creating an environment where people can feel comfortable being themselves,” Roche said. As a child, Roche considered the airplane “the best invention ever.” His first flight was at age 7. He immigrated to Queens, New York, from the Dominican Republic with his parents and five older siblings. Soon he could identify aircraft by engine sound as they took off from LaGuardia Airport; by 18, he was a certified aircraft mechanic and licensed pilot. Now, as manager of technical operations strategy and business performance, Roche uses his intimate understanding of all things aeronautic to manage a billion-dollar budget. Last year, he identified $200 million in savings without making any compromises in safety; this year he expects to save another $100 million. How does he do it? “I clearly remember entrepreneurship class with Venkat,” he says. Roche balances a long-standing dream of owning an airline — “current fuel technology will remain for decades; what will change will be the cabin, a unique, comfortable flight experience that cannot be replicated” — with a firm commitment to the people around him. “This was a great opportunity to really learn the industry I want to lead, and I have never felt like I had to hide who I am.” Who he is, in no small part, was shaped by a saying his parents taught him as a boy: “Él que aspira llega” or “The one who aspires, gets there.” By Donald Stevenson


Reynaldo Roche (MBA ’07) Enjoys Unlimited Visibility




9–12 May 2013 | Radisson Blu Hotel Shanghai New World

Darden alumni are invited to the second annual Darden Global Leadership Forum. Join us in Shanghai for: ● An

academic session on key issues in the global economy, with emphasis on U.S./China relations, led by Darden Dean Bob Bruner and Senior Associate Dean for Degree Programs Peter Rodriguez

● Meetings

with members of the Global MBA for Executives Class of 2014 during their residency in China

● A

networking reception with Darden alumni and prospective students, sponsored by Alumni Services and the Office of Admissions

● An

excursion to explore Shanghai as a global center of trade

● A

case study with Global MBA for Executives Associate Dean Yiorgos Allayannis

● A

special evening event and formal dinner

For more information and to register, visit 40


Corporate Sponsors 2012–2013 The Darden School of Business wishes to thank all of our corporate sponsors for their support during the 2012-13 academic year. For more information about corporate sponsorship, contact the office of Corporate and Foundation Relations at +1-434-243-4400 or

Visionary Level ($25,000+) Eastman Chemical Company Home Depot, Inc. Johnson & Johnson

Principal Level ($20,000+) United Technologies Corporation

Leader Level ($10,000+) Accenture Corning Danaher Deutsche Bank Emerson IBM Global Business Services MeadWestvaco Wells Fargo Securities

Associate Level ($5,000+) A.T. Kearney Bain & Company Bank of America/Merrill Lynch Barclays Capital Chevron Citi Credit Suisse Deloitte General Mills Goldman Sachs

Harris Williams & Co. JP Morgan Jefferies & Co. Morgan Stanley Nomura Securities Progressive T. Rowe Price Associates, Inc. UBS W.R. Grace



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










1. Frank Sands (MBA ’63), Karen Edwards (MBA ’84) and David Cheek (MBA ’79) 2. Prof. John Colley and George Tahija (MBA ’86) 3. Trustee Case Discussion 4. U.Va. President Teresa Sullivan and Harry Rein (MBA ’73) 5. Lyons Brown (MBA ’87) and Lem Lewis (MBA ’72) 6. Tom Cordell (MBA ’65) and Harry Lewis (MBA ’57) 7. Rick Paschal (MBA ’89) and Nancy Schretter (MBA ’79) 8. Trip Davis (MBA ’94) and Dean Bob Bruner 9. Fall Leadership Dinner at Monticello



DARDEN SCHOOL FOUNDATION BOARD OF TRUSTEES CHAIR Philip W. Knisely (MBA ’78) Clayton, Dubilier & Rice VICE-CHAIR (TO BE ANNOUNCED) Thomas J. Baltimore Jr. (MBA ’91) RLJ Lodging Trust W.L. Lyons Brown III (MBA ’87) Altamar Brands, LLC Robert F. Bruner Dean, University of Virginia Darden School of Business G. David Cheek (MBA ’79) The Meridian Group James Su-Ting Cheng (MBA ’87) Commonwealth of Virginia James A. Cooper (MBA ’84) Thompson Street Capital Partners VN Dalmia (MBA ’84) Dalmia Continental Pvt. Ltd. Trip Davis (MBA ’94) President, Darden School Foundation, Senior Associate Dean for External Relations Michael A. DeCola (MBA ’77) Mississippi Lime Company Kenneth M. Eades (Faculty) Professor of Business Administration Karen K. Edwards (MBA ’84) Kosiba Edwards Associates Louis G. Elson (MBA ’90) Palamon Capital Partners, LLP John M. Farrell Jr. (MBA ’80) The Coca-Cola Company Jennifer McEnery Finn (MBA ’00) Capital One John Fowler Jr. (MBA/JD ’84) Wells Fargo Donald W. Goodman (MBA ’84) The Walt Disney Company 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 Lynch (Faculty) Professor of Business Administration 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 Paschal (MBA ’89) Coach, Inc. Honorable Lewis F. Payne (MBA ’73) McGuireWoods Consulting, LLC Scott A. Price (MBA/MA ’90) Walmart Asia Harry T. Rein (MBA ’73) Foundation Medical Partners Gary Roughead Retired United States Navy, Hoover Institution at Stanford University Frank M. Sands Sr. (MBA ’63) Sands Capital Management Bryan H. Simms (MBA ’94) Lazard Wealth Management, LLC John Simon Executive Vice President and Provost, University of Virginia Henry F. Skelsey (MBA ’84) PRC Venture Partners, LLC 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 Vanessa A. Wittman (MBA ’93) Google

ALUMNI ASSOCIATION BOARD OF DIRECTORS 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. Nicole McKinney Lindsay (MBA/JD ’00) Strong Seed Professional Development LLC Elizabeth H. Lynch (MBA ’84) EHLynch Consulting Dar Maanavi (MBA/JD ’94) Merrill Lynch & Co. Inc. Besty Markus (EMBA ’11) TAMRO Capital Partners, LLC Jay McDonald (MBA ’71) Middleton McDonald Group, Inc. Vistage International Jeanne L. Mockard (MBA ’90) JLM Capital and Consulting Melissa Monk (EMBA ’08) Acxiom Corporation Douglas T. Moore (MBA ’80) h.h.gregg Zhiyuan (Jerry) Peng (MBA ’03) Goldman Sachs International, Ltd. 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

DEAN’S DIVERSITY ADVISORY COUNCIL Nicola Allen (MBA ’10) Pelton & Crane Joanna Bressel-Wilder (MBA ’94) Sony Pictures Entertainment James Su-Ting Cheng (MBA ’87) Commonwealth of Virginia Syd Dorsey (MBA ’87) Teresa Epperson (MBA ’95) AlixPartners Ray Hernandez (MBA ’08) Allison Linney (MBA ’01) Allison Partners, LLC

Octavia Matthews (MBA ’89) Willard McCloud (MBA ’04) Cargill, Inc. Noelle Mykolenko (MBA ’99) Computer Sciences Corporation Michael Peters (MBA ’09) COMCAST Corporation William Sanders (MBA ’06) Korn/Ferry Warren Thompson (MBA ’83) Thompson Hospitality Corporation Jeffrey Toromoreno (MBA ’06) Citigroup, Inc. Carroll Warfield (MBA ’81) Thayer Lodging Group

GLOBAL ADVISORY COUNCIL VN Dalmia (MBA ’84) Dalmia Continental Pvt. Ltd. Louis G. Elson (MBA ’90)  Palamon Capital Partners, LLP Silvia Ethel (MBA ’99)  John M. Farrell Jr. (MBA ’80)  The Coca-Cola Company Gabriela Gold (MBA ’95)   World Bank Leslie Grayson  Isidore Horween Emeritus Research Professor of International Management Clelland Hutton (MBA/JD ’75)  Ajia Partners Gene Kim (MBA ’96)  Nexolon Takahisa Koitabashi (MBA ’93)  iSigma Capital Corporation Richard K. Loh (MBA ’96)  Ploh Group Pte. Ltd. Zhiyuan (Jerry) Peng (MBA ’03) Goldman Sachs (Asia), LLC 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 Paschal (MBA ’89)  Coach, Inc. Michael Balay (MBA ’89)  Cargill, Inc. Helen Boudreau (MBA ’93)  Novartis Pharmaceuticals Mark Bower (MBA ’02)  Bain & Company William Breed IV (MBA ’87)  Pros, Inc. William Carter (MBA ’99)  Advance Auto Parts 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. Douglas Haynes (MBA ’92)  McKinsey & Company Pierre Jacquet (MBA ’98) L.E.K. Consulting Thomas Johnstone (MBA ’88)  GE Capital Corporation John Bernard Jung (MBA ’84)  BB&T Capital Markets Matthew Kaness (MBA ’02)  Urban Outfitters, Inc.

Mary Lou Kelley (MBA ’91)  Chico’s FAS, Inc. Michele Kessler (MBA ’89)  Univision Communications Inc. Kevin Klau (MBA ’02)  Danaher Corporation David Kostel (MBA/JD ’97)  Credit Suisse Mark C. Lamarre (MBA ’90) Raymond James & Associates Harry Lawton (MBA ’00)  The Home Depot Charles Leddy (MBA ’03)  Starbucks Corporation Octavia Matthews (MBA ’89) Daniel McKeon (MBA ’08)  Marriott International, Inc. William J. O’Shea Jr. (MBA ’84)  Campbell Soup Company Thomas Poole (MBA ’99)  Capital One Eric Riddleberger IBM Global Business Services James Schinella (MBA ’93)  Manilla Robert Smith (MBA ’87)  T. Rowe Price Susan Sobbott (MBA ’90)  American Express OPEN Mark Watkins (TEP ’94)  MeadWestvaco M. Reaves Wimbish (MBA ’97)  Accenture

Corporate Advisory Board at Monticello, October 2012



20 Questions with

Jerry Zhiyuan Peng AS MANAGING DIRECTOR of Goldman Sachs’ Investment Banking Division in Hong Kong, China, Jerry Zhiyuan Peng focuses on the origination of financing and derivatives business. He joined Goldman Sachs in 2009 and worked as managing director of the Securities Division before assuming his current position. Prior to Goldman Sachs, Peng worked at Morgan Stanley as executive director and head of China onshore sales for the Fixed Income Division from 2007 until 2009. Peng returned to China in 2004 and started his career at Standard Chartered Bank, where he became senior vice president, director and head of China large corporate banking. He said he knew the true value of his Darden education on his first day at Standard Chartered. He worked overnight to deliver a draft of their long-overdue China large corporate strategy and underwriting standard. His draft was immediately adopted and part of it is still being used today. “The exercise was just like crunching another Darden case,” said Peng. Peng received a Bachelor of Economics degree in finance from Beijing University of Aeronautics and Astronautics in 1995 and an MBA from the Darden School in 2003. He is the co-president of Darden’s China Alumni Association and he serves on the Darden School Alumni Board of Directors and the Dean’s Global Advisory Council.


(MBA ’03)

What was your first job?

What’s your motto?

How do you unwind?

Project manager and co-founder of a joint venture ostrich farm in Kenya.

Do our best, and follow the destiny.

Parenting, reading, swimming, gardening and relaxing with loved ones.

What’s the best advice you have ever received? Build on people’s strengths.

When and where do you do your best thinking? While swimming in the pool, or in the evening in my study room.

What’s your current state of mind? I’m looking for the next cause that will light me up.

What’s your favorite business book of all time? The Book of Tao and Teh, the 5,000-word Chinese masterpiece of profound wisdom written over 2,000 years ago.

How do you stay ahead of the competition? Find the blue sea. As a principle, I don’t work on RFPs (Requests for Proposal) or blind bids.

What characteristics do you look for in people? What’s the best thing that has happened to you in the last year?

Who’s your favorite action hero?

I finally got the dream house for my boss at home.

What do you consider your greatest achievement? Being a great daddy. And inspiring other young talents.

My mother, who is 76, and at 8 she lost her parents in a conspiracy murder. She grew into a self-educated engineer and a national star of innovation, and survived China’s Cultural Revolution and a 32-year fight against cancer with a brave and joyful soul.

A happy family and great, lovely kids.


What do you lose sleep over? I almost never lose sleep.

What is your most treasured possession?

I’d live in Charlottesville and Beijing. Ideally the commute between the two would take less than three hours.

Loyalty, passion and accountability.

Which living person do you most admire?


If you could live anywhere, where would it be?

What have you recently uploaded onto your iPod? “To Fly Higher” and “A Blossoming Life” by Chinese rock star Wang Feng.

Bruce Lee.

What’s your favorite food and beverage? Rice and water.

Which class at Darden influenced you the most? “Financial Derivatives” with Professor Bob Conroy, “Leading Strategic Change” with Professor Alec Horniman and “Bargaining and Negotiation” with Professor Sherwood Frey.

Looking back, is there a class you should have attended and didn’t? “Corporate Finance” with Dean Bruner.

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 consistently recognized as one of the top business schools in the world, 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 October, Poets & Quants named Professors Ronald Wilcox and Greg Fairchild among the world’s top 50 business school professors, a sentiment echoed by CNNMoney/Fortune. Translate Quality Education Into Real-World Success. Darden’s Career Development Center was ranked No. 4 in the nation by Poets & Quants, and 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

26-28 April


MBA and MBA for Executives


Classes of 1958 1963 1968 1973 1978 1983 1988 1993 1998 2003 2008 F i r s t Ye a r R e u n i o n • T h e A b b o t t S o c i e t y ( 1 9 5 7 - 1 9 6 1 )

The Darden Report Fall Winter 2012  

The alumni magazine of the University of Virginia Darden School of Business.

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