School of Business Annual Report 2015-2016

A

SH AR E D

VI S I O N

2015– 2016

ANNUAL REPORT

PDX.EDU/SBA

A SHARED VISION | ANNUAL REPORT 2015–2016

Table of Contents

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A Shared Vision | The Karl Miller Center: Returns on Investment in the Future of Business Education

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The Impact of Giving: A Strong Foundation

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Rising in the Ranks: Recognition for Business Education That Matters

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Letter from the New Dean: Cliff Allen

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Alumni Spotlight: Driving Innovation: Lori Heino-Royer, MBA ‘02

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Moving Mountains: Portland State and Mercy Corps Join Forces for Impact

8

Business Expertise for the Triple Bottom Line: MBA Students Accelerate Momentum of Portland B Corp Community

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Research Spotlight: Rethinking Overqualification

10

Capstone Projects: Knowledge Serves the City

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Year in Review

INNOVATION

IMPACT

Writer: Andrea Bailey Graphic Designer: Katie LaRosa Photography: NashCo Photo | Kelly James Contributor: Lauren Clark Editorial Producer: Wenye Tang

VISION

Targeting LEED Platinum certification, the new SBA building is designed to cut energy use by more than half while increasing square footage by 172%.

Siding is going up on the west building side.

A Shared Vision: The Karl Miller Center Returns on Investment in the Future of Business Education

It has been inspiring to see the new building for the School of Business Administration—the Karl Miller Center—take shape since the groundbreaking in October. During the first streaks of sunny spring days, the construction crews just finished the second floor and are on track to add another story roughly every four weeks.

The tangible progress serves as a constant reminder of the project vision: to create a learning environment that reflects the school community’s values and provides space for its ambitions.

It’s a vision we are co-creating with students and alumni, faculty and staff, business leaders, local government, and community stakeholders, and one we know will bring copious returns on multiple levels for everyone invested in the project.

SPACE FOR COLLABORATION & TECHNICAL SKILL BUILDING

Already apparent in the evolving physical structure is its capacity to accommodate learning as it happens today: collaborative, and application-oriented. The 21 classrooms will be equipped with versatile furniture to support different pedagogical approaches and student preferences, as well as technology that allows students to participate virtually and physically.

Other areas invite students and faculty to gather for idea exchange, entrepreneurial explorations, and connection. For our technically-focused programs, industry-specific centers such as trading and data visualization rooms will prepare students for real-world work environments.

WHAT’S INSIDE: INNOVATION

One indispensable factor for leadership in business education is ceaseless innovation. This year, the SBA is continuing that thread with an exciting lineup of new and updated programs, including The Portland MBA, a Master of Taxation, a Master of Science in Finance, and a JD/MBA offered in partnership with Lewis & Clark Law School.

Each one of the new programs offers students excellent returns on investment. Informed by Portland State’s deep ties to the business community, the programs are designed to arm them with sought after technical skills and leadership competencies that are not only highly valued today, but in rising demand.

THE PORTLAND MBA

Aligning with the culture of the city it honors in its new name, The Portland MBA embodies everything that makes Portland such an amazing place to do business: its strong commitment to social innovation and sustainability, local roots and global perspectives, and a creative drive to challenge the status quo.

Shortened and revised, the core MBA curriculum packs more punch with crucial business skills and a focus on leadership for impact.

Students can further distinguish themselves through stackable credentials in data analytics, social innovation, and global supply chain management—specializations that directly tie into Portland’s strengths as the growing Silicon Forest, as a community of changemakers, and as a global hub for the athletic and outdoor industry as well as trade and logistics. continued on next page 3

ADVANCING CAREERS, DEVELOPING TALENT

In direct response to requests from the region’s accounting community for professionals with advanced tax knowledge, Portland State is launching a new Master of Taxation program—the only one available in Oregon.

A STEM-designated business program, the Master of Science in Finance delivers tangible skills for students entering or accelerating a career in corporate finance or investing.

And a new strategic partnership with Lewis & Clark Law School gives law students the opportunity to pursue their MBA in conjunction with their JD—the only program of its kind on the West Coast between a public and private institution. Other new pathways afford Lewis & Clark undergraduates a fast track toward a master’s business degree at PSU. SIGNALING A BRIGHT FUTURE

As Portland provides the ecosystem for innovative business education at PSU, the stunning new building will stand as a symbol for our commitment to the city: to serve the community by unlocking career

paths, producing future leaders for business that matters, and elevating Portland’s status as a forward-thinking business hub whose impact inspires across the globe.

We can’t wait to welcome you in.

The Impact of Giving A Strong Foundation

A lead contribution of $9 million by Rick and Erika Miller catalyzed the new SBA building’s conceptualization.

Now widespread support from our community makes it possible for the Karl Miller Center to become a reality.

Thanks to you, it will be a vibrant space for education that inspires collaboration and drives business.

Your gifts fund research that asks bold questions and uncovers opportunities. They help us attract exceptional faculty and allow us to acquire the tools needed for cutting-edge teaching approaches that prepare graduates to hit their career ground running.

Your donations fuel the development of innovative programs. They enable us to invent new programs designed to meet the next big economic challenges.

Your investments expand access to bright students with diverse backgrounds and unconventional stories.

We invite you to be part of this continued momentum and legacy.

Naming opportunities in the Karl Miller Center are still available.

Contact Lauren Clark at clarkl@psuf.org or (503) 725-5039.

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SBA ANNUAL REPORT 2015-2016

“

You leveled the playing field for me. You gave a local kid an opportunity to gain a quality higher education that was affordable, effective, and appreciated.” RICK MILLER, MBA ‘91

KARL MILLER CENTER FUNDRAISING HIGHLIGHTS

23.3

$

50% 42

MILLION RAISED

OF $ RAISED FROM ALUMNI

CONTRIBUTIONS INCLUDED GIFTS FROM LOCAL COMPANIES

206

DONORS TOTAL

Rising in the Ranks Recognition for Business Education That Matters

Three recent rankings underline the fact that Portland State’s programs deliver the returns on investment in education that matter most to students: access to career paths ripe with opportunities for professional growth and personal satisfaction.

year before. Particularly noteworthy is the program’s job placement rate of 95%, including positions at Daimler, Boeing, and Nike—companies that had also informed the curriculum.

These figures confirm the value of Portland State’s strong ties with the business community, and point to the upwards trajectory of the school’s technical programs’ reputation as a source of leadership talent.

In a 2015 Bloomberg Businessweek survey, employers ranked Portland State at #56—the highest position attained by any school in Oregon—with an overall ranking of 106. With a sharp focus on career success factors, the survey’s methodology emphasizes how well undergraduate programs equip students with relevant skills. Internships are a crucial element in that process, and the Bloomberg survey recorded 33% of Portland State graduates gaining full-time employment at companies where they had interned during the program.

Reflecting Portland State’s understanding of leadership, our MBA program was recognized as #14 in Conscious Company’s 2016 list of Top Affordable Conscious MBA Programs. The ranking prioritizes schools with a holistic approach to education and top-notch quality (as rated by students in a Net Impact survey), and rates them on social impact, environmental sustainability, affordability, and social entrepreneurship. The verdict: Portland State’s MBA “offers a thorough immersion in forward-thinking business.”

Portland State’s Master of Science in Global Supply Chain Management (MS GSCM) placed at #16 of the nation’s 2016 Best Online Programs as assessed by U.S. News & World Report, climbing up from #28 the

Never having been a school to rest on its laurels, these acknowledgements of Portland State’s programs provide motivation as we continue to innovate in the pursuit for leading-edge business education that matters.

Letter from the New Dean: Cliff Allen I couldn’t have asked for a more exciting time to serve as dean of Portland State’s School of Business Administration. It’s a year ripe with opportunity to bring forth initiatives that will build on our key strengths and further elevate our school’s value to the community here in Portland and beyond.

Undeniably, one of our strengths lies in our relentless drive to innovate, paired with entrepreneurial thinking. Over the coming months, we will complement our updated curricula with expanded research offerings in future forward areas such as retail and consumer analytics.

Recognizing diversity as a source of innovation, we are proud to have the most diverse campus of any public university in the state and a five-

star ranking for LGBTQ support and institutional commitment in the Campus Pride index. As part of the leadership team, I am determined to keep pushing the envelope for the inclusiveness of our school’s culture.

Sustainability has long been one of our core values, and one that continues to challenge us. To stay on the forefront of the conversation, we are pursuing new benchmarks and integrating advanced sustainable business practices such as corporate social responsibility and circular economy frameworks in our teaching.

I invite you to take part in our school’s next evolution and join our unique community of students, faculty, staff, and partners as we set out to meet the challenges of business education today. industry connections with a passion for education. It’s that combination that is helping PSU create the next generation of business leaders.

Cliff Allen Dean and Vergil Miller Professor 5

Alumni Spotlight: Driving Innovation Lori Heino-Royer, MBA ‘02

“

Much of what I have accomplished started with me accepting that I am different than everyone around me and not being afraid to act on it.”

a single mom. I knew I had to get through, because I wanted to diversify myself out of being seen as just a finance person.”

Her tenacity paid off. With the credentials to back up her insights, Lori moved into sales and then project management before being promoted to her current role, where she leads a team of 25 and reports directly to the CEO.

The accomplishments Lori Heino-Royer is referring to Lori’s success in developing three distinct careers in her 15 years make up an impressive list. She currently drives business at Daimler also exemplifies the company’s enthusiasm for internal innovation and the Program Management Office at innovation—a facet many might not expect from an organization the size of North America’s leading commercial truck manufacturer.

Daimler Trucks North America, a role she built on her track record of intrapreneurial successes, including the As an innovator, Daimler benefits from a diversity of perspectives company’s first iPad sales app, an internal incubator, among its leadership. “I really don’t get excited about trucks,” Lori says, and a strategic foresight team. “but I find it absolutely fascinating that they represent the backbone of Along her unconventional career path, Lori has also reinvented her own professional identity multiple times.

Working as an order intake clerk after graduating high school, the owner told her she’d never earn a higher salary as a woman in his company. Lori saw the situation differently. The real hurdle, she determined, was that she had not yet acquired a degree or otherwise demonstrable skill set. To overcome it, Lori decided to pursue an academic program in accounting— while parenting her baby with little support as her family was on the other side of the country. “It was my first act of bravery, and it was hard,“ she recalls. “After that, every challenge seemed manageable in comparison.”

A few years later, education was again the catalyst Lori leveraged to advance her career in a new direction beyond accounting. “I went for my MBA at Portland State and got hired at Daimler, at that time 6

SBA ANNUAL REPORT 2015-2016

our entire economy.”

Rather than trying to blend in, Lori uses her unique vantage point to envision what’s next for the company.

Now she also champions others who have to forge non-traditional paths toward their educational goals. “I am a huge advocate for education, in my own department and beyond. It’s the one thing nobody can take away from you. And it gives you confidence to move forward.”

At Portland State, Lori contributes her expertise on the Center for Entrepreneurship’s Advisory Board and the PSU Alumni Board. She serves as a compelling example of what’s possible when students discover that what makes them different can become their career superpower.

“

I was most involved with the leadership track of the program. In this area, the participants learned about different aspects of leadership, and also shared stories from their own autobiography as well as their hopes for their future leadership. It culminated in them presenting something that described their leadership purpose—it could be a poem, a dance, anything. It was both very personal and team oriented.” JEANNE ENDERS

Moving Mountains Portland State and Mercy Corps Join Forces for Impact

Traveling to Tajikistan was an instant yes for Jeanne Enders.

The Assistant Professor of Management had long been inspired by the vision of Impact Entrepreneurs to unleash the potential of business for good, so when co-founder Carolyn McKnight invited her to support the 8th Entrepreneurial Leadership Program—this year to take place in the mountainous Central Asian nation—Jeanne was thrilled.

Arriving in Dushanbe, Jeanne joined a group of 32 Mercy Corps employees from countries as diverse as Uganda, Myanmar, Yemen, and South Sudan, working on today’s most challenging problems including refugee crises, women’s empowerment, garbage and sanitation, health care, and youth returning from experiences in gangs or as child soldiers.

Despite any differences, their shared understanding of their day-today realities provided grounds for deep connections—an essential foundation, given the intensity of the program.

Back in Portland, Carolyn McKnight notes that as the ELP radically transforms participants, it also enriches PSU faculty with case studies and a global perspective matching the school’s increasingly international student body.

Jeanne’s experience attests to this observation: “We returned filled with optimism and renewed excitement about the way teaching can have a ripple effect throughout the world. I would move mountains to support this program.”

VISION, HISTORY & IMPACT

The ELP was initiated in 2008 by two capable and relentlessly visionary partners—Mercy Corps and Portland State—at the suggestion of and with funding from the Renaissance Foundation, a project of philanthropists Irving Levin and Stephanie Fowler

For three weeks, these Mercy Corps employees immersed themselves in an experiential curriculum informed by Portland State’s MBA and taught by PSU faculty, with emphases on financials, systems thinking, business strategy, and leadership effectiveness.

It’s an investment in leadership capacity and resiliency, two impact multipliers for innovative development organizations like Mercy Corps, and a powerful contribution of business acumen to work on a level of complexity and urgency that’s hard to overestimate.

“While business does not have all the answers, it is so meaningful for us as faculty to share what business does have to offer,” Jeanne reflects.

“When these teams learn how to collaborate better, manage financials more effectively, or get processes up to speed, they free up resources that can be used to literally save more lives and promote peace.”

who saw the program’s potential for impact.

8

COHORTS SINCE 2009

92%

232

PARTICIPANTS TOTAL

92% of participants rated themselves as more confident in their problem solving capacities in a 2013 survey

22

COUNTRIES REPRESENTED at most recent ELP in Tajikistan

84%

84% of their supervisors rated participants as more competent in business process improvement in the same survey

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Emma Ingebretsen (left), Augusto Carneiro (middle, owner), and Rich Schwartz (right).

Business Expertise for the Triple Bottom Line MBA Students Accelerate Momentum of Portland B Corp Community

Attaining B Corp certification is a challenge. And rightfully so: In order to serve as a meaningful marker of social and environmental performance, accountability, and transparency, the bar has to be set high. In this case, the bar consists of a rigorous assessment of a company’s impact across these areas.

The fact that Portland already has the third highest concentration of certified B Corps of any city worldwide speaks volumes of the local business community’s commitment to put their resources where their values are.

“

I think at some point you reach a critical mass that starts a positive feedback spiral.

The more businesses are being recognized for their triple bottom line, the more people will learn and care about it. The more stakeholders care, the more businesses will be motivated to integrate it into their own operations. Only good things can come from that.”

Just as impressive is the long list of companies aspiring to join the B Corp ranks. In fact, it is so long that B Lab, the nonprofit facilitating the assessment process, is close to capacity when it comes to providing specific expertise to B Corp candidates.

Through the PSU chapter of Net Impact, a network of professionals and students catalyzing positive social and environmental impact through their careers, Emma and Rich took the initiative to offer business expertise to local companies seeking B Corp certification.

To Portland State MBA students Emma Ingebretsen and Rich Schwartz, this situation looked like an opportunity.

After a successful pilot project, the initiative has taken shape as a more formal program. Working in teams, the students help identify opportunities and map out action plans for business to increase their assessment scores.

“I saw great potential for students like myself who are interested in sustainability to be able to help companies whose values are aligned with our own,” says Rich Schwartz.

Emma Ingebretsen adds “What motivated me to go into business school was the chance to explore how companies can be more socially and environmentally responsible. This seemed like an excellent avenue for me and for other PSU students with similar goals to do that in a very practical fashion.”

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SBA ANNUAL REPORT 2015-2016

Over 30 students have consulted with mission-driven companies like Nossa Familia Coffee, who just aced their B Corp assessment.

“The students provided great ideas and suggestions that aided us in this pursuit,” reflects Nossa Familia founder Augusto Carneiro. continued on next page

For business leaders like Augusto, the significant investment of time, energy, and resources into the B Corp certification pays off: It uncovers benchmarks for further improvement, protects their mission in case of a merger or sale, sends a compelling message to investors and customers alike, and connects them to a community of innovative businesses in 50 countries.

The B Corp seal also helps them attract job candidates who bring valuable skills, passion, and culture fit and who want to see their future employer’s mission backed up by tangible structures and verified data— students like Rich and Emma. With that perspective, the Net Impact teams are shaping the jobs in which they will want to contribute after graduation.

In the meantime, the students gain hands-on experience working with purpose-driven companies while supporting Portland’s continued evolution as a hotbed for visionary companies.

Emma is excited to see that evolution gain even more momentum: “I think at some point you reach a critical mass that starts a positive feedback spiral. The more businesses are being recognized for their triple bottom line, the more people will learn and care about it. The more stakeholders care, the more businesses will be motivated to integrate it into their own operations. Only good things can come from that.”

Research Spotlight: Rethinking Overqualification Common sense tells recruiters to place resumes showing more credentials or experience than the job requires straight into the “overqualified” pile.

After all, it’s widely known that those employees will quickly get bored, grow dissatisfied, mentally check out, and probably jump ship as soon as they get the chance.

Recent research by Berrin Erdogan and Talya Bauer, Professors of Management at Portland State, in collaboration with Jasmine Hu and Kaifeng Jiang at University of Notre Dame, challenges that assumption.

Their team invested six months of scientific rigor into taking a fresh look at how feelings of overqualification actually shaped the effectiveness of employees in eleven IT firms in China.

Berrin Erdogan reports: “Contrary to popular wisdom, we did not find any evidence that feelings of overqualification harm performance. In fact, these employees had a significant performance advantage.”

That advantage played out especially strongly when there was more than one overqualified professional on a team. In those cases, the study found that “employees who felt overqualified for their jobs perceived greater task significance and person-group fit, and demonstrated higher levels of in-role and extra-role performance.”

Analyzing the factors contributing to this positive effect, Erdogan reasons that “what may often be uncomfortable about overqualification may be the sense that one is different from peers.”

To realize the potential impact of this high-caliber research in their own organizations, hiring managers may decide to rethink the status quo of their review process. Instead of weeding out candidates who bring more to the table than the position demands, they might give their resumes a second look through a lens of opportunity.

Further down the line, when a company identifies overqualified professionals among their workforce, the research findings highlighting the effect of peer relationships may empower business leaders to develop teams in which the extra skills can be leveraged to everyone’s advantage.

As Berrin Erdogan notes, “If a company is hiring the best people they can get, they will end up with some employees who are overqualified for their current jobs. Under the right conditions, this situation creates a high performance work context where highly qualified workers work with other highly qualified workers and produce amazing results.”

IN THE 2015–2016 ACADEMIC YEAR, SBA FACULTY...

PUBLISHED

20

JOURNAL ARTICLES GAVE

111

PRESENTATIONS

SERVED ON

39

EDITORIAL BOARDS (current # as of writing)

3

FACULTY MEMBERS serve as associate editors for journals

MENTIONED

31+ TIMES BY THE PRESS

WROTE two books REVISED a book CO-EDITED a handbook

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Capstone Projects Knowledge Serves the City

It’s spring. As a group of Portland State undergraduate students enters MacLaren Youth Correctional Facility in Woodburn, they find themselves in the largest facility of its kind in Oregon, where young adults roughly their own age serve the longest times.

They are here to meet with participants in the Morpheus Youth Project.

Morpheus Youth Project (MYP) is named after the Greek god of dreams, fitting for a city that prides itself on dreaming big and challenging the boundaries of what is considered realistic.

MYP brings opportunities to be part of that spirit to young people who would otherwise not have access to them, including residents at MacLaren. Their main vehicle for enacting that mission consists of workshops focused on the arts and humanities: poetry, breakdance, visual arts, radio journalism, and more.

It’s an invaluable investment in our city’s future.

Beyond opening up avenues for creative expression, these programs build confidence and encourage self-awareness, foster social skills and provide practical assistance as the participants look ahead to their next chapter.

In 2015, the MYP directors set out to expand their own organizational dream even further and develop vocational and life skills programs for at-risk and incarcerated youth, and they reached out to Portland State for assistance through the School of Business Administration’s capstone consulting projects.

Which is what brought the group of students to MacLaren, where MYP started in 2010.

Their request for support offered students a chance to contribute their knowledge to MYP’s commitment to their own generation, while gaining hands-on experience at the intersection of business and social good. Over the course of the project, they have been researching sources of funding, developing tracking system for performance metrics, devising a robust volunteer structure, and creating marketing and social media strategies to connect with stakeholders.

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SBA ANNUAL REPORT 2015-2016

2015–2016 UNDERGRADUATE CAPSTONE PROJECTS

700+ 75 $24K+

STUDENTS

TOTAL PROJECTS

DIRECT VALUE

INDUSTRIES startups, nonprofit, education, artists, makers, A&O, fashion, energy, healthcare, food & beverage, technology, retail, manufacturing SELECT CLIENTS Looptworks, Elemental Technologies, Oak Knoll, and Mercy Corps. Tektronox, SeQuential, ESCO, Intel.

As their efforts help set up MYP for long-term success, the project also leaves an impression on the students. Melissa Appleyard, Ames Professor of Management of Innovation and Technology at PSU, who supervises the capstone project, observes: “Having attended MYP events and met with participating youth at MacLaren, the students have come away transformed because seeing the mission of MYP in action has made this work very personal.”

As both clients and students emerge with greater insight and capacity, these collaborations become tangible examples of Portland State’s mission in action.

A Year in Review 2015–2016

BY THE NUMBERS 30,000+ 75% Business Alumni 3,400 total Remain in PDX undergraduate enrollment 357 total graduate 18% enrollment International 11+ Student students Groups 130+ internships taken for credit WHERE OUR GRADUATES WORK Nike Intel Wells Fargo Daimler Trucks North America Kaiser Permanente

Boeing Tektronix Columbia Sportswear Moss Adams LLP Umpqua Bank ESCO Corporation

GRADUATION NUMBERS UNDERGRADUATES 685 Business MASTER’S GRADUATES 55 MBA 42 MS in Financial Analysis 25 Master of International Management 35 The Healthcare MBA 15 Master of Real Estate 23 MS Global Supply Chain FY16 FUNDRAISING $5.737 million Total Raised 80 Scholarships Awarded to Students 800 Total Number of Gifts 463 Number of Donations from Alumni 190 Number of Donations from Corporate and Foundation Partners 2 Number of Scholarship Match Challenges 11

THE

PORTLAND MBA

pdx.edu/portlandmba