Sou ther n M etho d is t U n iv e r s it y
Cox S c ho o l o f B u s in e ss
su mmer 2009
It’s your move Achieve business growth despite The market’s twists and turns.
Alumni Profile Southern Botanical sees green with extreme customer service.
Personal Finance Why investors shouldn’t panic— it is all about strategic risk.
Faculty Research Cox professors discuss brainwriting, marketing strategy and financial deregulation.
Don’t Miss the Chance to Jump Start Your Career This January
Masters of Science in Entrepreneurship
The Cox MSE is a 16-month program that provides a solid foundation in entrepreneurial management based on the disciplines of finance, accounting, operations, strategy, marketing and management. Offered evenings and weekends, the innovative courses are taught by world-class faculty at SMU Cox and will help individuals keep pace with the dynamic, rapidly changing field of entrepreneurship.
Professional MBA With a reputation for excellence that consistently places within the top 20 nationwide, the Cox PMBA is one of the most highly sought degree programs in the area. The Professional MBA at SMU Cox is a two-year program for working professionals that offers exceptional education, innovative curriculum and close interaction with peers in an academic setting. Whether advancing in a current industry or embarking on a new career, the Cox PMBA provides the tools needed to move to the next level.
Classes begin January 2010 www.cox.smu.edu 214-768-1840 Apply By: October 14 (early) November 18 (regular)
DEAN Albert W. Niemi, Jr. Assistant dean of external Relations, Executive director of the cox alumni association Kevin Knox Assistant Dean of Marketing and Communications Lynda Welch Oliver Director of development Robin Maness MANAGING EDITOR Lynda Welch Oliver Contributing editors Alicia Brown Ally Frost-Phillips Andrea Hugg WRITERS Ally Frost-Phillips Andrea Hugg Pamela Gwyn Kripke Mark Stuertz Jennifer Warren
Photographers Karen Campbell Ren Morrison HOW TO REACH US Marketing and Communications Office Cox School of Business Southern Methodist University PO Box 750333 Dallas, TX 75275-0333 email: firstname.lastname@example.org Web site: www.cox.smu.edu Main Office: 214-768-1794 Fax: 214-768-3267
Group Publisher Kristen Bohn Design DIRECTOR Mark Mahorsky PRODUCTION MANAGER Pedro Armstrong Assistant Production Manager Jennifer Mosley DIGITAL IMAGING SPECIALIST John Gay ACCOUNT SERVICE Manager Risa Shepard BUSINESS DEVELOPMENT DIRECTOR Lindsay Thomas
How to Reach Us 4311 Oak Lawn Avenue, Ste 100, Dallas, Texas 75219 www.dcustom.com 214-939-3636 coxtoday is designed by D Custom, 4311 Oak Lawn Avenue, STE 100, Dallas, Texas 75219. Copyright 2009 by coxtoday. All rights reserved. The marketing and communications office retains the right to determine editorial and advertising content and manner of presentation. the opinions expressed in the magazine do not necessarily reflect official university policy. letters to the editor and contributions to class notes Are welcome.
Finding Opportunity Out of Adversity
from the dean
calendar of events
faculty & staff achievements
in the news
Capitalize upon the market conditions to nurture business growth. Plus: SMU Cox’s David Lei and Frank Lloyd’s 5 Steps to Survive and Thrive.
By MARK STUERTZ
Why Investors Shouldn’t Panic
Strategy, not spontaneity, should drive personal-finance decisions. BY Pamela Gwyn Kripke
coxFrom the Dean
As our country struggles for economic recovery, “business as usual” is being redefined. Times are tough, but in the midst of adversity, opportunity abounds. In fact, we believe that with the right vision and improvements, our nation can emerge stronger than ever before. In this issue of CoxToday, we explore some of the brighter prospects of the recession and what they could mean for the future of business, for you and for SMU Cox. In these challenging times, we are finding that successful companies are redefining themselves by shedding old products and technology in favor of innovative new business models and renewed focus on building relationships with customers, suppliers and employees. Savvy investors are seizing unprecedented bargains in the market, further demonstrating the potential upside of the downturn. Meanwhile, smart individuals are investing in themselves and their future via higher education, as evidenced by the Cox School’s 60 percent increase in applications for its highly respected fulltime MBA program. Yet, while the need for education continues to rise, the cost has become a source for financial distress for many, making scholarships more important than ever. Scholarships remain a top priority for the Cox School and are a key component of SMU Unbridled, the University’s Second Century Campaign dedicated to faculty and students. The Cox School has already raised $30 million since the campaign’s kick-off in September 2008 that will go towards scholarships, endowed faculty positions and centers and institutes. Leading the way by example is our key benefactor, Edwin L. Cox. In 2007, Mr.
Cox gave $5 million to support meritbased scholarships for the nation’s best and brightest students entering the Cox BBA Scholars program. The gift was a challenge to stimulate contributions toward a $10 million endowment goal. To date, we have exceeded this goal by $2 million and are now working towards a goal of $15 million. Thanks to this type of leadership and dedication, the current freshman class of BBA Scholars boasts an average SAT score of 1415, making the Cox School one of the most competitive undergraduate business programs in the nation. In fact, more than 40 percent of the freshman class indicate they came to SMU to major in business. Centers and institutes for thought leadership are also a core foundation for the campaign. Launched in 2008, the Cox School’s EnCap Investments & LCM Group Alternative Asset Management Center and the William J. O’Neil Center for Global Markets and Freedom demonstrate our commitment to the global marketplace and innovative financial practices.
The EnCap Investments & LCM Group Alternative Asset Management Center is one of the first academic centers in the U.S. to provide a curriculum focused on financial markets of non-traditional assets. Because of its unique nature, the Center now serves as a benchmark to other universities. The William J. O’Neil Center for Global Markets and Freedom, which teaches students to do business in today’s global world, is hosting its first national conference this fall, aptly titled “What Do Businesses Need to Succeed in Today’s Competitive Global Economy?” Businesses around the country with global interests will have the opportunity to hear from keynote speaker Roger Lawson of the Economic Freedom Index and William J. O’Neil (BBA ’55), Chairman and CEO of Investor’s Business Daily. A top-ranked business program relies upon a world-class faculty. Last year, we announced two new endowed professorships thanks to generous gifts from Dr. Bobby B. Lyle and David B. Miller. Dedicated supporters like Cox alumni Jil and Tony Boghetich further strengthen our ability to recruit and retain outstanding faculty through endowments such as their new Boghetich Family Distinguished Teaching Award, which will annually recognize an exceptional Cox professor who has made a critical difference in the classroom. We are forever grateful to those individuals who, through their remarkable generosity, enable us to continually improve the quality of our programs. SMU and the Cox School will continue on the path to prominence.
Cox MBAs and Distinguished Scholars Spend The Week on Wall Street
1st Place, SMU Cox – Yield to Maturity – (left to right above) Todd Westerburg, Gavin Worthy, MaryCarol Dryden, Brian Esquivel
SMU Cox MBA Students Take First Place in Wells Fargo MBA Case Competition
A select group of Cox MBAs and Distinguished Scholars spent spring break immersing themselves in the Cox School’s “Week on Wall Street” program. The students spent time at Barron’s, CNBC, Deutsche Bank, Dynamic Credit Partners, LLC, Invesco WL Ross, MacNaughton & Associates, MSD Capital, New York Federal Reserve Bank, Oppenheimer Funds, Primus Financial Products, LLC, S.G. Cowen and Wachtell, Lipton, Rosen & Katz. The “Week on Wall Street” program is one of two travel experiences for Cox Distinguished Scholars. In alternate years, they travel to Washington, D.C.
In February, Wells Fargo partnered with SMU Cox to host the third annual Wells Fargo MBA Case Competition between SMU, the University of Texas, the University of Oklahoma and Washington University. Each school sent their top team of first year full-time MBA students to compete for a total of $7,000 in prize money. Taking first place was SMU Cox’s team “Yield to Maturity” comprised of MaryCarol Dryden, Brian Esquivel, Todd Westerburg and Gavin Worthy.
SMU Cox Director of Diversity Honored Steve Denson was recognized as a 2009 Diversity Champion Award winner at the annual Texas Diversity and Leadership Conference in April. Denson was acknowledged for his diligent work continuing the advocacy of diversity within the DFW Metroplex and throughout the state.
Financial Times and Entrepreneur Give Cox Rave Reviews The Financial Times ranked the Cox MBA program eighth in the U.S. and 10th in the world for “Best in Finance,” based on feedback from the MBA class of 2005. Entrepreneur magazine named the Cox School’s accounting program one of the 15 most highly rated in the nation. The ranking was obtained through a survey by The Princeton Review, in which students were asked to evaluate their MBA program.
SMU Cox at the New York Stock Exchange
EMBAs Learn About Doing Business in China
Cox faculty, staff and EMBA students in front of the Shenzhen Development Bank
Cox MBA Comes in Second Place at Sony Marketing Competition The SMU Cox Consulting Club sponsored two students in the Second Annual Sales & Marketing Case Competition SMU Cox MBA at TCU. Sixty Kevin Shtofman MBA students from 23 universities competed in randomly assigned teams of six in front of Sony Electronics executives who presented the case and acted as judges. Students were given a potential Sony product to provide a strategy from conception to market. Second place and $4,000 went to SMU Cox’s Kevin Shtofman along with his teammates from TCU, Yale, Purdue and the University of Georgia.
The Executive MBA Class of 2009 enjoyed a successful and productive trip to Beijing and Shenzhen, March 11-21. After two days of cultural tours at the Great Wall, Olympic Venues, Forbidden City and Tiananmen Square, students visited companies including the U.S. Department of Treasury, American Chamber of Commerce, Huaxia Dairy Farm, Founder China, Huawei, Shenzhen Development Bank, Luen Thai Garment Co., Mission Hills Golf Club and the City of Shenzhen. Everyone agreed this was an unforgettable experience to learn about China’s fast growing economy firsthand.
SMU Students Win Cakebread University Competition Two Years in a Row José Gomez, 2010 Cox PMBA candidate, attended Cakebread University, a program designed to introduce top MBA students to the wine industry. His team won the wine blending competition, putting SMU Cox students on a winning team for two years in a row. “It was a unique experience and I was proud to carry the SMU pride along with the other top business schools,” said Gomez.
Mr. Cakebread and Jose Gomez
Second Year MBAs Apply Social Entrepreneurship Skills to Non-Profit Organization
Second Year MBA student Alex Bagden
At the request of Caren Prothro, long-time SMU supporter, and with the assistance of Jerry White, director of the Caruth Institute for Entrepreneurship, MBA students Alex Bagden and Chris Irvine were invited to develop a business plan for Mental Health America in Dallas (MHA). The plan would transform its WHO (We Help Ourselves) antivictimization education program into a computer-based education program to generate new funding for MHA. Bagden and Irvine impressed MHA staff and the new president. “I was impressed by their energy and their application of business marketing evaluation criteria to MHA’s rather messy non-profit enterprise,” said Marion Flores who serves on the Board of Directors for MHA. “They won the respect of the staff and kept themselves focused despite many interesting issues that could have sidetracked the work.”
SMU Cox MBAs Compete for Best Business Plan and $50K in Prizes The SMU Business Plan Competition, held in February, with Collabpad finishing in second place and Skillman is a multi-semester competition that gives students the DownStroke finishing in third. opportunity to work in teams to turn ideas into real businesses. Reactive Optics (Nimesh Porbandarwalla, MBA ’09 & Russ Since 2001, teams have competed for cash prizes and in-kind Daniel, MBA ’09) was selected to compete in the IC2/WBT awards such as office space and legal advice. Technology Commercialization Competition where they won This year nearly $50,000 in cash and prizes was awarded at first place in the Elevator Pitch Contest. They also partnered the competition, thanks to generous with Nathan Huntoon of the Lyle sponsors including Andrews Engineering School to compete in the Kurth, Booth Albanesi Schroeder, “Invent Your Future” business plan at HP Growth Partners, LaDonna the University of Southern Mississippi Carrington, NTEC, Plexon, Silicon where they came in second place, Valley Bank, Silver Creek Ventures, winning $6k. SMU Cox, STARTech, The Coulter Both competitions are feeders to Group and Trailblazer Capital. the prestigious Global Moot Corp Out of five competing teams, Competition held in early May at the three teams were selected for two University of Texas. “Having three national business plan competitions. teams competing at the national level is Collabpad (Alex Bagden, MBA ’09 an incredible honor and achievement & Justin Slaughter, MSE ’09) and for those students and our business Rus Daniel and Nimesh Porbanarwalla of Skillman DownStroke (Kevin school,” said Darren Grahsl, MBA ’09 Reactive Optics come in second place at Shtofman, MBA ’10 & Mukesh Singh, and director of the SMU Business the “Invent Your Future” business plan MBA ’10) were selected to compete in Plan Competition. competition the Rice Business Plan Competition, www.cox.smu.edu
Curriculum for Finance Major at SMU Cox Gets an Upgrade
Cox BBAs Among Winners in SMU Big iDeas Program Ten student teams have been awarded grants through SMU’s Big iDeas program to research challenges facing the Dallas area, ranging from energy and the environment to education and health care. Launched in 2008, the panel included SMU faculty, students and staff, along with a representative from the Dallas City Manager’s Office and the Communities Foundation of Texas. This year’s BBAs who received grants were Melanie Vettimattam – Kids arT Risk; Vernon Washington, Kee Lee, Winfred Kao, Pablo A. Santiago and Danny Fernandez – Omega Delta Phi Young Knights; William Daugherty – Real Fuel on Campus; Peter Goldschmidt and Eric Park – Birthday Bash; and Andres Ruzo – SMU Geothermal Project. For more information, please visit www. smu.edu/bigideas.
SMU Cox will implement a new curriculum for finance majors, designed to increase the quality of the program by making it more rigorous and challenging. This new curriculum will be available to incoming freshmen. In revising the curriculum, the finance department incorporated the courses taken by the most successful students. The new 18 hour core includes speculative markets, international finance and intermediate accounting I and II. These courses are in addition to advanced financial management and investment analysis and portfolio management, also required. “Our curriculum is changing to match what students need to be equipped for the best finance jobs. It also reflects the higher quality of students enrolling year after year at the Cox School,” said Darius Miller, head of the department and Caruth chair in financial managment. “Recruiters will know that every student from Cox has taken the core set of the most rigorous courses and training.”
Cox BBAs Look Forward to Summer of Public Service Two Cox BBAs have been selected to serve as Summer 2009 Maguire and Irby Family Public Service Interns. Danielle Czajka, a senior accounting major, will work with Wings Ministry, a ministry dedicated to helping families of prisoners. She will help create a working budget for this nonprofit organization and prepare them for a full audit. Meredith Worley, a finance major, will work for the Ugandan American Partnership Organization (UAPO) in Uganda. She will seek support for local orphanages through craft programs, agricultural training, and improvements in health and education.
Finance Professor Darius Miller
The Business Leadership Center Offers Leadership Development to Job-Seeking Alumni The Edwin L. Cox Business Leadership Center (BLC) is doing its part to help with the recession by welcoming job-seeking MBA and PMBA alumni to register for summer 2009 BLC seminars. To qualify for career coaching sessions, alums must be registered with Dennis Grindle, director of the Career Management Center. For additional information, please contact Genevieve Meek at email@example.com.
SMU Cox Offers New Major in Risk Management and Insurance
LoriAnn Lowery, president of Lloyd’s North America, spoke at the Cox School’s luncheon celebration for the new RMI major. The Luncheon was held in conjunction with the DFW Chapter of the Risk and Insurance Management Society.
As the economy recovers from the worst financial crisis in decades, the insurance and risk management industry will be a major component in restoring future stability and growth. In order to accommodate increasing interest among both corporate risk managers and the insurance industry, SMU Cox has created a new major for undergraduate business majors in risk management and insurance (RMI). There are only a handful of similar programs in the U.S. The RMI major will provide students with a foundation in the theory of insurance economics and specialized, technical information in insurance company operations, reinsurance, insurance law and contracts, employee benefits and enterprise risk management. A collaborative curriculum, supported by industry, puts Cox graduates on a fast track to success. “There can be little doubt that great small business owners and executive suite occupants know the value of effective risk management supplemented with strategic insurance purchasing. Cox aims to be the thought leader in Texas and key supplier of human resources talent. The RMI major is central to this role,” said Robert Puelz, Dexter professor of risk management and insurance at SMU Cox.
Centers and Institutes
Business Leadership Center Recognizes Outstanding Students and Instructors The Edwin L. Cox Business Leadership Center (BLC) is committed to helping students attain exceptional leadership development experience at the Cox School by providing a wide range of seminar topics and special programs. The Dean’s Circle is an elite group of students who have spent more than 90 contact hours in the BLC by accumulating more than 30 BLC credits through seminars and special programs. The BLC would like to congratulate the newest Dean’s Circle members: Grant Carona (MBA 2009), Matt Day (MBA 2010), Robert Dye (PMBA), Andrew Estes (MBA 2009), José Gomez (PMBA 2010), Summer Gory (MSE 2009), Sharada Guruvayurappan (MBA 2010), Qiana Johnson (MBA 2009), David Lawthorne (PMBA 2009), Justin Sanderson (MBA 2010), Ricardo Santander (MBA 2010), Sailesh Saxena (PMBA 2009) and Kevin Shtofman (MBA 2010). www.cox.smu.edu
The BLC would also like to recognize the outstanding instructors who have earned a Teaching Excellence Award since December 2008. In order to receive a Teaching Excellence Award, the instructor must receive at 4.8 or higher out of a 5.0 evaluation from the students. Those awarded include: Ed Dawson, Capital Alliance Corporation (27)*, Merrie Spaeth, Spaeth Communications (16), Steve Zipkoff, Formerly Burger King (13), Eli Snir, SMU Cox (10), Mitch McCasland, Formerly Moroch Advertising (6), Marsha Clark, Formerly EDS (5), Henry Evans, Dynamic Results (5), Randy Mayeux, Creative Communication Network (3), Jerry White, director of the Caruth Institute for Entrepreneurship (3), Rob Morton, Walt Disney Company (3), Chris Caracci, Walt Disney Company (2), Kelly Regis, RBC Wealth Management (2), and John Hetzel, JWA Financial Group (1).
Cox students taking part in a business writing seminar offered by the BLC
* Denotes number of Teaching Excellence Awards received while teaching in the BLC. Three new seminars have been added to the summer seminar offerings. The BLC welcomes new instructors: Tommy Clark, iFranchise Group and formerly Snap-on Tools and Anthony Gatling, Red Lobster Restaurants. Cox BBA students will be required to complete a core Business Leadership Institute three-hour class effective fall 2009. For more information about the Business Leadership Center, please visit www.blc.cox.smu.edu.
Centers and Institutes
Cox Students Practice Service Leadership at Texas Scottish Rite Hospital
Cox students at Texas Scottish Rite Hospital
Forty-two Cox graduate students registered for the Cox Business Leadership Center’s Texas Scottish Rite Hospital (TSRH) Consulting Program, now in its sixth year. In addition to the two-day program at Scottish Rite’s new T. Boone Pickens Conference and Training Center, Cox students researched and completed 10 consulting projects. Students historically give 35-40 hours towards project research and development, followed by team presentations to TSRH management and board members.
The Business Information Center Launches New Research Guides The Business Information Center has launched new online Research Guides, focused on the subjects users access most frequently. The guides are topically arranged, annotated lists of print and electronic resources selected from over 150 electronic resources available to the SMU community. The new Research Guides are accessible by all. Alumni have free lifetime on-site access to the Business Information Center as a valuable benefit after graduation, and the majority of library databases are still available to alumni when visiting the Center in person. Please check out the new Research Guides by clicking the Research Guides link on the left-hand side of the Business Information Center’s home page: www.bic.cox.smu.edu.
Management and Organizations Professor Mel Fugate presents at a Cox Executive Education certificate program
Executive Education Delivers Spring Programs and Workshops This spring, a plethora of programs, workshops and speaking engagements were held in conjunction with SMU Cox Executive Education. They partnered with the Texas General Counsel Forum to deliver “The Texas General Counsel Forum Institute for Leadership in the Law.” The program focused on the need of the General Counsel to closely integrate his or her company’s strategic management. Executive Education also partnered with The Caruth Institute for Entrepreneurship to present “Entrepreneurial Attributes” at the Women’s Food Service Forum 2009 Conference. The session guided the audience through leadership attributes of successful entrepreneurs. Bill Joiner, director of energy programs, along with Spectra Energy, one of Executive Education’s major clients, presented a session on the topic of custom partnerships at the UNICON (International University Consortium for Executive Education) Team Development Conference. Kym Sosolik, director of leadership and organizational development, was a panelist at the 2009 National Human Capital Summit. The topic was “Rethinking Pivotal Talent: new approaches to aligning talent priorities with business objectives, protecting pivotal talent, and managing transitions more effectively.” www.cox.smu.edu
Despite Recession, Companies Invest in Executive Education Despite the ongoing recession, many firms are continuing to invest in management and leadership development according to Frank Lloyd, associate dean for Cox Executive Education. Major Cox custom clients—AT&T, Anadarko, Baylor Health Care, Pioneer and Spectra, among others—are maintaining their programs rather than cancelling or postponing them. “This recession is different because in the past, training and travel were the first to be cut,” said Dr. Lloyd. Why the change? “Companies want to be positioned for success when the economy rebounds. Past experience shows that it takes up to three years to regain traction when investments in human capital are stopped. No forward looking company can afford this lag in today’s complex and volatile global economy,” Lloyd continued. Plus, the fast changing business environment demands new skills—primarily leadership, business acumen and strategic decisionmaking—that need to be developed to prepare for future growth. Also, the baby boom demographic is not going away. Companies need depth of management talent to deal with future shortages as the economy strengthens. Finally, both business schools and companies have gotten smarter about articulating the value of investments in management education. Concludes Lloyd, “SMU Cox Executive Education understands these needs and can provide immediate results that lead to tomorrow’s growth and success.”
Graduates, faculty and staff of the Business Intelligence Graduate Certificate Program at their graduation dinner.
Business Intelligence Graduate Certificate Program Celebrates Successful Year The graduation dinner for the 20082009 Business Intelligence Graduate Certificate (BIGC) Program was held on March 4, 2009. Companies that sent participants this year included AAFES, Acme Brick Company, Alcatel-Lucent, Amdocs, Belo Interactive Media, EMC, Federal Reserve Bank of Dallas, Hawkins & Parnell, Heritage Auctions, NEI,
Npower Texas, Perot Systems, Siemens, T-Mobile, Texans Credit Union, Union Standard, Verizon and Vought Aircraft Industries. The program is designed for managers and professionals in finance, marketing, IT or operations. It covers a broad range of topics including decision modeling and analysis, data and knowledge management, data mining,
customer relationship management and revenue management. The next session will be held August 19 –December 9, 2009. New to the BIGC Program in 2009 is Continuing Professional Education credit for accountants and financial officers.
coxCalendar of Events
For information about the upcoming events in 2009, go to www.smucoxalumni.com.
August 10- August 21:
Graduate Program Orientations Full-Time International Orientation: August 10 Finance Workshop: August 12-14 EMBA Orientation: August 13-15 PMBA and MSM Orientation: August 14-15 Full-Time MBA Orientation: August 16-21 MSA Orientation: August 21
August 21- August 23: Mustang Corral
First day of classes for Cox graduate programs
First day of classes for Cox undergraduate programs
First home football game SMU vs. Stephen F. Austin* 7 p.m. Ford Stadium
SMU vs. East Carolina 7 p.m. Ford Stadium
William J. O’Neil Conference “What Do Businesses Need to Succeed in Today’s Global Economy?” 8:30 a.m. - 4:30 p.m. in the Collins Center
SMU vs. Navy 7 p.m. Ford Stadium
Homecoming Weekend SMU vs. Rice 2 p.m. Ford Stadium
November 14: Family Weekend SMU vs. UTEP 2 p.m. Ford Stadium
*Dean’s Tailgate “On the Boulevard” begins two hours prior to kick-off at every home game www.cox.smu.edu
Faculty & Staff
Achievements In January, the Journal of Marketing ranked the 50 most prolific scholars according to publications in the top four marketing journals (Journal of Marketing, Journal of Marketing Research, Journal of Consumer Research and Marketing Science) over the period 1982-2006. Bill Dillon, marketing professor, endowed chair and senior associate dean, ranked 16th in the world out of more than 2,700 scholars who published papers in these journals over the time period.
Assistant professor of information technology and operations management (ITOM), Aydın Alptekinoglu’s working paper, “Managing Seasonal Congestion,” written with Steve Shugan from the University of Florida, has been selected as one of nine papers that will be presented in the John D. C. Little Festschrift, a one-time event honoring the contributions of John D.C. Little to the field of marketing science. Neil Bhattacharya, associate professor of accounting, presented his paper, co-authored with Cox professors Hemang Desai and Kumar Venkataraman, titled “Earnings Quality and Information Asymmetry: Evidence from Trading Costs” at an international accounting symposium organized by the Indian School of Business in Hyderabad, India. Bhattacharya’s paper “The Relevance of Accounting Information in a Stock Market Bubble: Evidence from
Internet IPOs” was accepted by the Journal of Business Finance and Accounting. Brian Bruce, senior lecturer and director of the EnCap Investments & LCM Group Alternative Asset Management Center, was the keynote speaker at the DFW Financial Planning Association’s Town Hall Meeting on the current economic crisis, held in February in the Collins Center. Jay Carson, assistant professor of management and organization, presented a paper at the 24th Annual Conference of the Society for Industrial and Organizational Psychology. The paper, co-authored with Maribeth Kuenzi and two other colleagues, titled “Social Learning Effects of Ethical Leaders on Employee (un)Ethical Behavior,” is part of a conference-wide focus on corporate
social responsibility. Carson and Kuenzi also had their paper “Ethical Leadership and Power: Combined Effects on Unit Outcomes,” accepted at the Academy of Management Conference. Endowed professors Andrew Chen, William F. Maxwell, Rex Thompson and Mike Vetsuypens were on the list of “Most Prolific Authors in the Finance Literature: 1959-2008.” This paper presents an update of an earlier paper published in the Journal of Finance Literature that ranked authors over a 50year period. Hemang Desai, endowed accounting professor, was invited to present “The Role of Fundamental Analysis in Information Arbitrage: Evidence from Short Seller Recommendations” at Oklahoma University. The paper was co-authored with Srini Krishnamurthy of SUNY and Kumar Venkataraman of SMU Cox. Associate professor of management and organization Mel Fugate’s co-authored paper “An Examination of Alternative Theoretical Perspectives and Models,” published Summer 2009
in Personnel Psychology, was selected runner-up for the “Division’s Best Paper Award” and for “Best Paper Proceedings” at the annual meeting of the Academy of Management (Organizational Behavior Division). His research, “A Dispositional Approach to Employability: Development of a Measure and Test of its Implications for Employee Reactions to Organizational Change” was published in the Journal of Occupational and Organizational Psychology. Fugate was selected to the Personnel Psychology editorial board. Maribeth Kuenzi, assistant professor of management and organizations, had two co-authored articles published: “How Low Does Ethical Leadership Flow? Examining the Effects of Supervisory and Top Management Ethical Leadership,” Organizational Behavior and Human Decision Processes, and “The Case of Identity Violations,” Journal of Applied Psychology. Her co-authored paper “Assembling Fragments Into a Lens: A Review, Critique, and Proposed Research Agenda for the Organizational Work Climate Literature,” was accepted by the Journal of Management. Darius Miller, endowed finance professor and department chair, had the co-authored article “Escape from New York: The Market Impact of Loosening Disclosure www.cox.smu.edu
Requirements” accepted by the Journal of Financial Economics. His article “Private Benefits of Control, Ownership and the Cross-listing Decision” was published in the Journal of Finance. Maria Minniti, strategy professor and Bobby B. Lyle Chair of Entrepreneurship, has been selected as a scientific advisor for the Entrepreneurial Lab of the University of Bergamo in Italy and the Science Park “Kilometro Rosso,” which houses Brembo and other companies that develop and provide parts for Ferrari and MercedesMcLaren. Minniti is also a member of the Global Entrepreneurship Monitor (GEM) Project. In January, Minniti held the annual PhD and Junior Faculty Workshop for GEM. More than 20 young scholars participated in the workshop from countries across the world. Miguel Quiñones, endowed professor in management and organizations, was appointed to the International Board of the Centro de Medicion (Measurement Center) of the Universidad Catolica de Chile. The center was created with the goal of conducting research, providing services and training in the field of measurement and evaluation. The International Board consists of 10 prominent scholars from around the world.
Marion Sobol, information technology and operations management professor, was appointed chairman of the Editorial Review Board for the Decision Sciences Institute. Her co-authored article, “Common Knowledge in Information System Development Projects” was published online in the International Journal of Project Management and will appear in print in October. Professor Sobol was appointed to the board of directors of the Texas Winds Musical Outreach, an organization that provides free concerts to hospitals, nursing homes and Head Start programs. Michael van Breda, associate professor of accounting, led an interdisciplinary panel on the Ethical Underpinnings of the Credit Crisis at Emerson College in London. Gordon Walker, endowed professor of strategy and entrepreneurship, published the third edition of his textbook, Modern Competitive Strategy. In February, he presented a paper titled “Competitive Heterogeneity in the Upstream Oil and Gas Industry” at the Organization Science Winter Conference.
c o x Fa c u lt y R e s e a r c h
For New Ideas, Try Brainwriting Management and Organizations Professor Peter Heslin
Organizations and societies all need good, useful ideas to survive and prosper, especially with many falling on hard times during this economic crisis. Professor Peter Heslin shows how the technique of brainwriting may prove useful for organizations. Groups can potentially generate more and better ideas when “brainwriting”— silently sharing written ideas in a time and sequence structured group format. People enjoy brainstorming, however it is not as productive as they tend to believe. In contrast to traditional brainstorming, brainwriting is typically a more structured and constrained process. Unlike brainstorming, where group members call out ideas, when brainwriting, each person sits in silence with a different colored pen to think and write on a key question. It requires greater time, personal, group and logistical investment. However, brainstorming is more common, yet less efficient because of all the diversions and slacking off, Heslin says. Brainwriting
depends on individual contributions and the pressure to produce. In the past, researchers discussed how and why brainwriting could be a valuable process for creative idea generation, though lamented that most people who could benefit from it are not aware of it. This paper raises awareness about brainwriting as an alternative to brainstorming and questions the popular assumption that group brainstorming is the “best” way to generate creative ideas. Given complex, intractable business issues such as rapidly-emerging technologies and growing global competition – together with broader societal crises such as terrorism and global warming – generating creative ideas is imperative for organizations. When the stakes are high, group-process innovations
that enable even modest increases in the quality of ideas available for consideration could also be of immense practical value. “Better than Brainstorming? Potential Contextual Boundary Conditions to Brainwriting for Idea Generation in Organizations” is forthcoming in Journal of Occupational and Organizational Psychology.
The Rise and Decline of Competitiveness Strategy Professor David Lei and Professor John Slocum (retired)
Successful companies spend years amassing a portfolio of capabilities that form the springboard for their strategy. Leaders’ visions, powerful internal departments, uncontrollable external forces, and the evolution of technology impact competitiveness more than many realize. In a new paper, Professors David Lei and John Slocum analyze how firms of all sizes struggle in their search for new sources of competitive advantage.
Lei and Slocum demonstrate that managers need to understand the nature of their industry to formulate effective business strategies. Lei says, “In response to these dynamics, managers need to rethink how to innovate, bundle their firm’s capabilities, create value and capture customers. We present an integrative approach to analyzing, framing and managing a company’s set of value-creating capabilities to address the strategic tensions many managers now face.” Every industry confronts a rate of technological change that determines how rapidly new products and technologies emerge to displace their predecessors. For example, new electric-based automotive technologies promise to transform vast portions of the global automotive industry as firms begin to invest in next-generation materials, electronics, and advanced power sources. Indeed, most industries periodically face the prospect of substantial
technological forces of change, whereby an entirely new method, product design or value proposition dramatically alters the source of competitive advantage for competing firms. The widespread growth of one-stop travel resources such as Expedia, Travelocity and Priceline has completely displaced the mass market for travel agencies throughout the U.S. The research addresses four strategies— Consolidators, Concept Drivers, Concept Learners and Pioneers— that can help firms frame their capabilities to sustain competitiveness. Though each requires a unique set of capabilities to succeed, these capabilities may also ferment the seeds of a firm’s destruction if managers do not heed warning signs. “The Tipping Points of Business Strategy: The Rise and Decline of Competitiveness” is forthcoming in Organizational Dynamics.
Marketing Challenges for Hybrid Products Marketing Professor Priyali Rajagopal
Voice recorder-MP3 players, crossover and hybrid, duel-fuel vehicles and many other hybrid products are growing exponentially. Marketers hope when two product categories blend together that consumers will think it’s great. But often they don’t. New research co-authored by Marketing Professor Priyali Rajagopal shows how hybrid products have a unique set of marketing challenges. “This is a huge problem for marketers because it costs money to add features,” Rajagopal says. “Consumers categorize in one area or another, and then draw inferences which flow from that single category, not multiple categories.” So how can communications be arranged to make people aware of the two categories? One answer comes from “priming,” a term
from psycholinguistics. In the study, when people were exposed to informational materials about both product categories, they were able to properly acknowledge the two parts of a hybrid product. “Being exposed to numerous examples helped them see that the product belonged to both categories,” Rajagopal explained. “It was a really simple, intuitive finding. Being primed with many examples has an impact on information processing and thus beliefs.” Are advertisers doing what they are supposed to be doing to communicate effectively about their hybrid product? Not really, Rajagopal says. Firms need to communicate more effectively about these
products, that they are in fact hybrids. “In the absence of clear communications, consumers are not going to take away that feature,” says Rajagopal. “The extra feature will come across unnoticed and unused.” One of the hardest tasks, even in social psychology, is how to get people to view an object from two different perspectives simultaneously, says Rajagopal. “It’s hard to do. Most people normally use one lense to view something.” And, Rajagopal adds, “Once something is labeled, it’s hard to overcome.” “Consumer Evalutions of Hybrid Products” is forthcoming in Journal of Consumer Research.
Financial Market Deregulation: Foreign Firms in the U.S.
but you can never leave’ as Don Henley of the Eagles sings in “Hotel California.” Think tanks and industry experts lobbied the SEC to amend the registration regulation and to relax the 300 shareholder record law. After this relaxing of the rule, it was expected that more business would be coming to the U.S. However, the number of de-registrations increased dramatically. “There was, in fact, a value to this type of regulation, which has been lost in the debate about regulation and U.S. financial markets’ competitiveness,” Miller says. The study analyzed 638 firms from 36 countries which were registered in the U.S. “When the gun went off saying: ‘You can all leave now,’ it turned out that stock prices went down for certain companies, particularly those located in countries that are considered the worst for investor protections,” Miller states. “To leave the strong U.S. environment and be able to go home was not viewed favorably.” Firms that could now deregister from weak investor protection regimes lost on
average $112 million of firm value. One by-product of the research is that the U.S. market is not necessarily overregulated. Investors value certain types of regulations. The paper, “Escape from New York: The Market Impact of Loosening Disclosure Requirements” is forthcoming in Journal of Financial Economics.
Caruth Chair of Finance Darius Miller
Is New York becoming uncompetitive vis-à-vis other global financial centers such as London? New evidence proves that certain regulations are in fact valued by markets and investors, and that overregulation is not the source of America’s woes for foreign firms coming to the U.S. to enjoy its bounty. Groundbreaking research by Finance Chair Darius Miller, Ugur Lel, and Nuno Fernandez shows that an attempt to enhance U.S. competitiveness by relaxing regulations for foreign firms listing in the U.S. has had the opposite effect. In March 2007, the SEC passed Rule 12h-6, which loosened the regulations of the 1933/1934 Exchange and Securities Acts. The rule required foreign firms which listed on the New York Stock Exchange to register their firms and maintain registration with the SEC as long as there were 300 shareholders of record. Trouble was if the foreign firm ever wanted to leave the U.S., it was nearly impossible to get down to the 300 count. And so, for foreign firms that came to the U.S., the environment was likened to a roach motel. You can go there www.cox.smu.edu
coxin the news
Following are recent samples of Cox faculty quoted in the news.
WFAA-TV Ch. 8 (ABC) (2/4/2009)
WFAA-TV Ch. 8 (ABC) (2/16/2009)
“Fox 4 News at Six” Finance Lecturer Mike Davis commented on the release of the new Web Site: www.stimuluswatch.org that depicts the infrastructure projects submitted by cities to the government for the economic stimulus bill. “Simply Genius!” Davis stated. “Don’t you love the Internet because you can go online and see what they are talking about, fixing this bridge or improving the schools? In real time you can get an idea of what projects are being proposed.”
“Local governments ignore thousands they’re owed” Accounting Professor Wayne Shaw commented on money that local governments are owed, but have not yet collected, and its effect on the cities and citizens. “It’s a very small amount of money for the kind of budgets these cities and counties face, but again, any money you don’t have is money you can’t spend.” KDFW –TV Ch. 33 (2/18/2009)
“North American markets” Marketing Professor Dan Howard commented on the Denny’s restaurant offer of a free Grand Slam breakfast as a marketing strategy. “Nothing works better than free samples, but it’s also the most expensive form of advertising. But there are a lot of people who appreciate that free meal in these rough times, and it is something that they will remember in the future,” said Howard.
“Homeowners and foreclosure” Finance Lecturer Mike Davis discussed President Obama’s plan to help homeowners. “I’m very worried about doing this now,” he said. “I’m afraid it’s going to reward irresponsible behavior. This plan creates a lot of uncertainty, because now, no one knows what a mortgage is worth, whether the government is going to force things on the lenders. Uncertainty is poison right now and this will create some more uncertainty.”
The Miami Herald (2/12/2009)
Houston Chronicle (2/22/2009)
“Lovebirds get creative with Valentine’s Day on the cheap” Marketing Professor Dan Howard discussed consumers cutting back on Valentine’s Day. “Valentine’s Day is a holiday of the heart, and especially in today’s consumeristic and materialistic society, there is a tendency on the part of some people that affection is correlated with the amount spent,” said Howard. “This is a perfect Valentine’s Day for reformulating your idea of that.” Howard said that he plans to buy his wife a card, some candy, cook a nice dinner and take her to a movie to celebrate. “Some consumers, especially female consumers, would be just as impressed with a card, a bit of candy, even a single flower or a romantic dinner -even if you cook.”
“State paid out millions in bonuses” Management and Organizations Professor Mickey Quiñones discussed the bonuses paid to various state employees, saying that the main goal of such incentive pay is to align a person’s performance with an organization’s goals. “They send out a strong signal from management about what’s important in the organization,” he said.
CNN National (2/4/2009)
quote that states that the only thing we have to fear is fear itself,” said Bruce. “As long as people stay fearful, they make things worse.” BrandWeek.com (3/4/2009)
“PAM offers sticky situations solution” Marketing Professor Dan Howard commented on PAM’s new advertising campaign that centers on the cooking spray as the key ingredient for perfectly cooked food. “It centers on the primary benefit that most users look for in the brand, which is to avoid sticky cooking situations—and likely help drive sales,” Howard said. The Wall Street Journal (3/5/2009)
“Keeping workers despite tough economic times: small businesses work hard to prevent layoffs” Also appeared on KFMB-TV (CA), WAOATV (WI), KTVN-TV (NV), KJCT-TV (CO), WAND-TV (IL) and WXOW-TV (WI) Management and Organizations Professor Mel Fugate commented on small businesses adapting to the economy and working hard to prevent layoffs. “Many companies previously known for avoiding layoffs during past downturns are forced to make extreme sacrifices to resist pink slips now,” says Fugate. “How these concessions are identified and executed can make a significant difference in how well a company emerges when economic conditions improve. It is also important for management and particularly executives and owners to share in the pain and the gain,” Fugate said. Bloomberg.com (3/5/2009)
The Globe and The Mail (Canada) (2/25/2009)
“The adverse feedback loop and how Ben Bernanke is trying to loosen it” Finance Lecturer Brian Bruce commented on the role that consumer and investor fear can play in this economy. “The problem is that we’re back to the psychology of the Depression and the Franklin Roosevelt
“Finra seeks agency, new corporate debt on trace” Finance Professor Kumar Venkataraman commented on his research regarding the bid-ask spread on investment grade corporate bonds, saying it was about seven basis points before trace and about four basis points immediately after. Summer 2009
coxIn The News
The Dallas Morning News (3/7/2009)
“Barrage of bad news can get in your head, affect judgment” Marketing Professor Dan Howard commented on how bad news results in people feeling worse and spending less, resulting in even more bad economic news. “People who concentrate on all the news work themselves up emotionally and become much more likely to make unwise decisions, like selling investments at a big loss. In reality, the severity of this is being exacerbated by the constant, nearly universal media reporting about the reasons behind the crisis. Even people who don’t watch television or read papers are getting hit with nuggets of negativity through social networking and just everyday chatter among family, friends and neighbors. Faced with this onslaught, we look for guidance about what to do from the actions of those around us. ‘Herd mentality’ grips us tighter than ever,” Howard said. The Dallas Morning News (3/8/2009)
“Depressed economy propels more to seek North Texas police jobs” Finance Lecturer Mike Davis commented on the increased number of job applicants for police agencies. “Government jobs are seen as more stable in terms of actual job security and stable in terms of benefits. The federal economic stimulus funding may underscore the feeling that the public sector is a safer harbor than the private field,” said Davis. The Dallas Morning News (3/9/2009)
“Take business-style approach to managing household budget” David Lei, professor of strategy and entrepreneurship, commented on the importance of strategic planning for business and households. “Perhaps the most important step that households of any size can take is to adopt the rudiments of a strategic plan that encompasses not only their day-to-day, week-to-week budget, but also anticipates potential changes that could unexpectedly occur at any time, both good and bad. A ‘workable strategic plan’ includes budgeting for immediate needs, such as food, clothing and gasoline, and also for jolt items that could disrupt what the family expects in the short-to-medium term. Those ‘jolts’ www.cox.smu.edu
include short-term cash squeezes from job changes, pay reductions or higher health insurance premiums,” Lei said. AdAge.com (3/16/2009)
“Loud TV Ads? Not if one politician has her way” Marketing Professor Dan Howard commented on loud TV ads and the idea that one must be loud to be heard. “I question that assumption,” said Howard. “Loud ads result in ad irritation, which causes consumers to react strongly and negatively to the brand being advertised. Memory for a brand that consumers consider obnoxious can result in less sales, not more,” said Howard. The Washington Post (3/18/2009)
“Bring your brain” Management and Organizations Professor Peter Heslin commented on brainwriting versus brainstorming, saying that brainwriting is more internally and individually focused, thus making it more efficient, but often used less. During brainwriting, participants may be asked to find new markets or new ventures for their company—or they could consider transferable skills and skills of successful employees. “Some people loved it. Some people hated it,” Heslin said. “They were amazed at all the things they could produce.” Dallas Business Journal (3/20/2009)
“Nine companies on Moody’s report” Finance Lecturer Brian Bruce commented on American corporations carrying risky amounts of debt. “The right thing to try to do is renegotiate,” Bruce said. BusinessWeek.com (3/23/2009)
“The pros and cons of easing access to credit” Strategy Professor and Bobby B. Lyle Chair in Entrepreneurship, Maria Minniti discussed President Obama’s plan to help small businesses, offering some advice to those companies. “This may be the time to upgrade your location or hire some fantastic talent. Small businesses, especially young ones, tend to operate on a tight budget, stretching earnings from year to year. If you’ve operated on a budget and you’re holding some reserve, this may be the time to borrow and make improvements or expand,” said Minniti.
The Houston Chronicle (3/24/2009)
“More layoffs in oil field services— Schlumberger to see another round of job cuts, CEO announces layoffs: oil prices harm business” Bruce Bullock, director of the Maguire Energy Institute, commented on cutbacks in the oil industry. “The services industry tends to react very strongly and quickly to outlooks for reduced activity,” said Bullock. KDFW-TV Ch. 4 (Fox) (3/25/2009)
“Perot Systems expands” Finance Lecturer Mike Davis commented on Plano-based Perot Systems expanding by opening a call center in India. “An awful lot of these high tech jobs are very hard to source locally, either because the proper people just aren’t around, couldn’t get visas, and also, we have to be honest about this, the labor cost is much higher here than it is in India,” said Davis. Dallas Business Journal (3/25/2009)
“Hillwood responds to Victory Park report” Finance Professor Bill Maxwell commented on the impact of the economy on Hillwood’s Victory Park project, saying that their situation is not particularly unique with the developer telling creditors, “We can’t make the payments. This is not unusual, and you will see firms now doing this earlier on. A lot of firms are trying to renegotiate their debt contracts. It doesn’t mean they’re going into bankruptcy,” Maxwell said. BusinessWeek.com (3/31/2009)
“For job-seeking MBAs, alumni may be the answer; with fewer jobs available through on-campus recruiting and job boards, alumni networks are becoming more critical” Assistant Dean of External Relations and Executive Director of the Cox Alumni Association Kevin Knox commented on graduates turning to alumni for assistance finding jobs. “The network has never been more important,” he said.
Expanding COVER STORY
Finding Opportunity out of adversity Capitalize upon market conditions for new business growth By Mark Stuertz
a business or shifting market strategies in the midst of an economic downturn seems counterintuitive. Yet Texas Instruments (TI) and other major enterprises owe their very survival to this paradox. The firm that pioneered the integrated circuit traces its lineage back to seismic exploration technology. Affected by the onset of World War II, by all rights TI should have met with extinction. However, its founders rapidly adapted its technology to wartime submarine detection. According to David Lei, a strategy professor at SMU Cox who specializes in business and corporate strategy, TI is a prime example of a company that thrives by continuously nurturing new opportunities. Amidst the current downturn, TI is transitioning from a top supplier of chips for mobile phones to a major supplier of embedded processors—the brains in GPS and electronic book readers—and especially analog chips that convert sound and images to digital data and vice versa. Why the shift? TI claims the maturing market for the mobile-phone chips is narrowing their margins and the analog chip has potential for a lucrative revenue stream.
In with the new
Like a few companies have done in the past, TI is using the current downturn to lessen its dependence on a still-profitable business in favor of germinating new businesses that could bring significantly higher returns. “Recessions are always breeding grounds of innovation,” Lei says. “Many companies are fundamentally reinventing themselves or discovering their real purpose.” Although it’s not always the case, this scenario can play out with great success. Under relentless pressure from inexpensive Windows-based PCs, Apple Computer reinvented itself as Apple Inc., zeroing in on consumer products such as the iPod and the iPhone while de-emphasizing the personal computer market.
Lei believes such reinvention will go from anomaly to necessity once the economy recovers. The reason? Technology. Technological innovations not only make businesses more productive and transparent, but the adaptive nature of those innovations means that competitors can pop up anywhere. “Who would have thought that [GPS manufacturers] TomTom or Garmin would actually have to compete with digital cameras?” Lei asks, adding that next-generation digital cameras will be equipped with GPS. As a result, businesses and entrepreneurs must avoid temporary palliatives because the future economic environment will likely be very different from the one leading up to the downturn, says Maria Minniti, strategy professor and Bobby B. Lyle Chair in Entrepreneurship at SMU Cox. “An uncertain environment, like the one provided by the current economic crisis, is filled with unexploited entrepreneurial opportunities,” she says. “Rising unemployment and pay cuts are forcing many people to become alert to opportunities and reinvent themselves.” Yet Lei concedes the current economic downturn poses challenges that weren’t present in previous recessions, namely the credit freeze that makes it difficult for businesses to disinvest, reinvent and adapt. Many organizations, such as GE, are relatively healthy from a cash flow standpoint, says Gordon Walker, strategy department chair and David B. Miller Professor of Business, but its balance sheet is weighed down by billions
of dollars in liabilities from GE Capital, a fact that has driven down its stock price 66 percent over the year through April 2009.
So what can businesses do to survive, or even thrive in the current downturn? Companies should take stock of their non-cash currencies, or resources that might save another company cash, says Ed Frazier, who has been active in development activities with several Fortune 500 companies and now is managing partner of Arlington, Texas-based Corporate Smoke Jumpers. This might include unsold advertising time, vacant real estate space, unfilled air travel seats or unused freight or fleet space, which can be swapped for other goods or services or even equity. “I run into situations where people are actively talking about distressed asset funds,” says Jerry White, strategy and entrepreneurship adjunct lecturer and director of the Caruth Institute for Entrepreneurship at SMU Cox. Local real estate firms have set up distressed asset divisions, says White, with specialized groups focused on acquiring and managing these assets with an eye toward upgrading and holding them until the market recovers. Minniti emphasizes that businesses and individuals with good credit can negotiate very favorable financing to channel resources into improvements and
Under relentless pressure from inexpensive Windows-based PCs, Apple Computer reinvented itself as Apple Inc., zeroing in on consumer products such as the iPod and the iPhone while de-emphasizing the personal computer market.
New risk management and insurance program addresses leadership and transparency The current financial crisis highlights the critical need for effective insurance and risk management strategies. Transparency and credible leadership in the insurance and risk management industry will be crucial to restoring future economic stability and growth. That’s why the newly created Risk Management and Insurance (RMI) undergraduate major at SMU’s Cox School of Business is so pertinent and timely. “There is without a doubt some sense that properly assessing and diversifying risk is assuming greater importance in a properly functioning marketplace,” says Robert Puelz, Dexter Professor of Risk Management and Insurance. One of only a handful of similar programs in the U.S., the Cox RMI program provides students with a firm foundation in insurance economic theory and insurance law in tandem with experience germane to current industry operation. Effectively managing risk will be a crucial component of corporate governance as the economy recovers. “The more effectively companies manage the cost of risk, the higher their net income is going to be,” Puelz adds. Key to the RMI program is the SMU Insurance Council, an organization that links Cox with risk management and insurance professionals to provide insight and networking opportunities.
expansion and take advantage of surpluses in commercial real estate and humanresource talent. “After World War II, Boeing lost about 90 percent of its revenue,” she says. “[Boeing President] Bill Allen, however, had the wisdom to capitalize on what little was left and redirect the skills the company already had to a different market…He hired the best engineers he could find. He then shifted from military to commercial aircraft and the company established a virtual monopoly for decades.” Minniti stresses the current downturn is an ideal time to strengthen ties with customers, suppliers and employees, and to carefully examine markets left open by corporate retrenchment. It’s likely that much of the economic landscape over the next decade will look very different from the one to which businesses were accustomed Lei says. “The kind of changes that we’re seeing in the economy—the wrenching changes of creative destruction—are actually quite natural although it’s very painful to undergo.”
Five Steps to Survive and Thrive David Lei, a strategy professor at SMU Cox who specializes in business and corporate strategy, and Frank Lloyd, associate dean of the Executive Education program at SMU Cox, offer the following five tips for success during and beyond today’s economic downturn. Attract and retain the best employees. Shrewd companies are recruiting from the vast pool of highly-qualified talent while using non-monetary incentives such as educational opportunities to keep and motivate valued workers. Check and plan for debt coming due. Review long-term debt due in the next 12 to 18 months as well as relevant agreements and refinance as needed, assuming that the terms will be different while exploring debt for equity options. Keep your customers without discounting your product. Don’t sacrifice brand equity by cutting prices; instead, reposition your brand around quality, and offer longer payment terms and short-term promotions. Look out for problems in your supply chain. Labor and financial issues may be deeply affecting your suppliers; line up alternative sources and work closely with your existing suppliers to share costs and risks on core products and technologies. Prepare for new types of competitors with the upturn. Innovative technologies often emerge during a recession, so redefine your five-year plan, consider new ideas and build strategic alliances for an inside position to offset future rivals. For the complete article, go to pressdocs.cox. smu.edu/web/FiveStepstoSurvive.pdf.
Unsold advertising time, vacant real estate space or unused freight or fleet space can be swapped for other goods or services or even equity.
why investors shouldnâ€™t panic Mere mention of the economy
can unsettle the most composed among us, sending otherwise cool stomachs straight to the floor. When it comes to personal finance, panic-based actions can devastate chances for economic recovery in tenuous times such as these.
By Pamela Gwyn Kripke
Strategy, not spontaneity, should drive personal-finance decisions
“The only reason to panic is if we are headed into another securities with good valuations, investors feel shaky. depression, and that is not the case,” says Brian R. Bruce, finance “It has been shocking. They feel blind-swiped,” says William lecturer and director of EnCap Investments and LCM Group Maxwell, finance professor and Rauscher Chair in Financial Alternative Asset Management Center at SMU Cox. “If it were Investment at SMU Cox. “Just when you think people believe the case, you’d want cash, canned food and gasoline. That is not in the market, something like this comes around and slaps them. the situation.” It’s at the point now where people have lost trust in the system. Where we are, he says, is at an unemployment rate of 8.9 percent, And if you don’t have trust, you don’t have a financial system, by its compared to 10 percent in 1981 and 25 percent in 1933. “Things very nature.” are bad, yes, but they’ve been this bad However uncontrollable the stock market before, and worse. When people are is, investors need to first accept the notion inundated with the concept that this of risk and then employ certain strategies may be a depression, and haven’t looked that help protect their portfolios from future at the facts, what happens is a behavioral volatility. After all, choosing to participate To build wealth flaw,” says Bruce, who edits the Journal in the market to begin with acknowledges in the long run, of Behavioral Finance. “If it is not time that there can be a benefit to taking the less to panic, then you look and say, ‘People predictable route. taking risks in a have overreacted.’ ” “It is clear that we have historically observed prudent manner Still, despite certain comparative a premium for exposing ourselves to risk, is necessary statistics, a greater understanding of and that is higher returns,” says Kumar inflation and monetary policy than Venkataraman, Marilyn and Leo Corrigan we had in the 1920s and ’30s and Endowed finance professor and Gerald J. Ford the existence of attractively priced Research Fellow. “The extent of loss has been
Several Investing Don’ts Don’t think there is any skill to timing when to buy and when to sell. Evidence suggests otherwise. “You can’t pick the timing of the top or bottom,” says William Maxwell, finance professor at SMU Cox. Don’t be frugal when you have the money to spend. “People have to stop saying, ‘I’m going to darn the holes in my socks instead of buying new ones,’ ” says Brian R. Bruce, finance lecturer. “The economy is not even close to the conditions that existed during the Depression. The way the economy will recover more quickly is if people keep spending normally.” Don’t believe the future is grim. “Over the next five years, we will have one of the greatest stock-picking markets ever. For those who go in and find good solid businesses that can continue earning close to where they’ve been, they will look back and be very happy,” Bruce says.
extremely high and very painful, and while it is natural in abnormal times like these to want to reduce exposure, history tells us that investing in bank CDs or treasury bills does not build wealth. In order to build wealth in the long run, that is, to have greater purchasing power at retirement, we need to take additional risk, in a prudent manner.” Here is how, for portfolios great and small:
• Diversify, broadly: Since you cannot be quite sure which economic sectors will recover first, or how much, invest in a range, including energy, industrials, materials, discretionary and financials. Have an anchor in consumer staples, Bruce suggests. • Act your age: What you do depends on your time frame. If you
are in your 20s or 30s and not retiring for decades, ups and downs during that time are not critical. “You are not putting money into the stock market to go buy a house a year later,” says Maxwell, adding that during any 10-year period, stocks have historically outperformed bonds. “Invest in a more volatile asset when you can stand the volatility,” Bruce agrees. “If you are 75, though, you should have a portfolio that is spinning out enough cash flow that you don’t have to sell stocks at the current low prices.”
• Sock away some savings: If you need to have money available, keep some portion of your portfolio out of the market. “The average guy should make sure he has whatever he needs over the five years ahead,” Maxwell says.
• Do your homework: When selecting which stocks to buy,
do some sort of balance sheet check, Bruce says. “Do they have enough current assets to cover liabilities, enough cash flow to cover expenses? Choose firms that will survive. Something may look really cheap, but there is a good chance that it will not be in business in six months.” When times are good, he says, 1.5 percent of small cap stocks go out of business. Now, the figure is 3 to 4 percent.
Is it time to return to SMU Cox? Today’s economy requires businesspeople to be innovative. New approaches are essential for success, and in many cases, survival. Perhaps there is no better time than now to refine your skills by investing in a boost of brainpower. The SMU Cox School of Business offers a range of short certificate programs and seminars for working people that cover topics in management, leadership, marketing, accounting, finance, energy, negotiation and business intelligence. Taught by SMU Cox professors and outside experts, classes address hot topics such as choosing winning strategies, managing in a global context and assessing your—and your competition’s—leadership style, strengths and flaws. The teaching is hands-on and practical, so you leave with skills you can apply immediately. Seminars vary in length and include graduate certificate programs in entrepreneurship, marketing, finance and business intelligence. Individuals as well as small groups from a single company are invited to enroll in the programs, available year-round. Cox Executive Education also works with individual companies to create customized management education solutions to a myriad of business needs and challenges. For non-business students and recent graduates, Cox Executive Education also has a non-credit “boot camp” program available through the Summer Business Institute that provides a solid background in business basics in just four weeks during the summer. For more information on the Summer Business Institute or any of our programs, details can be found at www.exed.cox.smu.edu.
• Look, but don’t obsess: Pay attention to what you’ve got and how it’s faring, but avoid checking the stats every hour, or every week. “This increases your stress level and is not productive,” Venkataraman says. “Adopt a passive form of investing, in which you build your allocation at the beginning of the year and don’t do much about it for six months.” In the meantime, experts believe the economy will rebound. First, they say, the market will recover. Then, economic measurements will start to improve, with decreasing unemployment and increasing consumer confidence. “Investors clearly have the right to feel upset about what has happened,” Venkataraman says. “Banks have engaged in an unacceptable level of financial engineering. Poor lending standards, lack of regulatory oversight and significant conflicts of interest at all levels of the financial system are to blame for the current state of affairs. We’re looking at something we’ve not seen before, with the government serving as the lender of last resort. While one can disagree on many of the details of what is being implemented, I think the idea of a large fiscal stimulus makes sense.” www.cox.smu.edu
Edwin L. Cox School of Business
Executive Board Chairman of the Board Mr. John C. Tolleson
Mr. David E. Alexander Vice Chair and Southwest Area Managing Partner Ernst & Young LLP Mr. Gerald B. Alley President Con-Real, Inc. Mr. Victor D. Almeida President and CEO Interceramic Mr. F. Thaddeus Arroyo Chief Information Officer AT&T Ms. Marilyn Augur Chairman Marilyn Augur Enterprises Mr. Norman P. Bagwell Chairman and CEO Bank of Texas, N.A. Mr. C. Fred Ball, Jr. Senior Chairman of the Board Bank of Texas, N.A. Mr. George L. Ball Chairman Sanders Morris Harris Group, Inc. Mr. J. Gabriel Barbier-Mueller Chairman and CEO Harwood International Mr. Raymond A. Basye, Jr. President BenchMark Facilities Group, Inc. Mr. James F. Berry President Lockheed Martin Missiles and Fire Control Mr. Albert C. Black, Jr. President and CEO On Target Supplies & Logistics, Ltd. Ms. Jan Hart Black Mr. William A. Blase, Jr. Senior Executive Vice President- Human Resources AT&T Inc. Mr. Alan L. Boeckmann Chairman and CEO Fluor Corporation Mr. Tony Boghetich Owner and CEO Omar B. Milligan Enterprises Mr. Pat S. Bolin President & Owner Eagle Oil & Gas Company Ms. Julie Ann Brice Former Owner & Founder I Can’t Believe It’s Yogurt, Inc. Mr. Tucker S. Bridwell President Mansfeldt Investment Corporation Mr. Norman Brinker Chairman Emeritus Brinker International, Inc. Mr. Bradley Brookshire Chairman Brookshire Grocery Company Mr. Peter D. Brundage Managing Director Goldman Sachs Pastor Kirbyjon H. Caldwell Senior Pastor Windsor Village United Methodist Church Mr. Donald J. Carty Mr. Felix Chen President and CEO PAJ Inc.
Mr. Greg T. Clifton, ChFC, CFP President Clifton Capital Partners, Inc. Mr. Richard H. Collins Chairman and CEO Richard Collins Enterprises Mr. Gus Comiskey Senior Vice President & Managing Director Clark Consulting Mr. Dan W. Cook, III Senior Advisor MHT Partners Mr. William R. Cooper Chairman Paragon Group Mr. Edwin L. Cox Chairman and CEO Edwin L. Cox Company Mr. Gary T. Crum President CFP Foundation Mr. William A. Custard President and CEO Dallas Production, Inc. Mr. Terry R. Dallas Executive Vice President Wells Fargo U.S. Corporate Banking Mr. Richard L. Davis CEO DAVACO Mr. Derek E. Dewan Chairman MPS Group, Inc. Mr. Lamar Dowling Student Trustee Representative Southern Methodist University Mr. James F. Drayer Retired Partner Accenture Mr. Frank M. Dunlevy Vice Chairman, Managing Director Cowen & Company, LLC Mr. Juan Elek Co-Chairman Elek, Moreno Valle y Asociados Mr. Bryant R. Fisher Senior V.P. Retired Federated Martin L. Flanagan President and CEO INVESCO Mr. James F. Geiger CEO Cbeyond Mr. William W. George Area Chairman Arthur J. Gallagher Risk Management Services, Inc. Dr. James R. Gibbs Chairman, President and CEO Frontier Oil Corporation Mr. Norman Green Founder and Former Owner Dallas Stars Mr. Charles L. Gummer President and CEO Comerica Bank-Texas Ms. Linda W. Hart Vice Chairman and CEO Hart Group, Inc. Mr. Brad K. Heppner Chairman and CEO Heritage Highland Finance & Management Services Mr. Ken C. Hicks President & Chief Merchandising Officer J. C. Penney Company, Inc.
Mr. James M. Hoak Chairman James M. Hoak & Company Mr. Denny Holman Chairman of the Board Folsom Properties, Inc. Mr. Thomas W. Horton Executive Vice President Finance & Planning and CFO AMR Corporation Mr. Kevin Howe President, CEO and Chairman River Logic, Inc. Mr. Clark K. Hunt Chairman Kansas City Chiefs Mr. Douglas E. Hutt Regional President Compass Bank Mr. Thomas W. Jasper Chief Executive Officer Primus Financial Products, LLC Mr. David K. Kao Managing Partner Advantage Resources Group Mr. James W. Keyes Chairman and CEO Blockbuster, Inc. Mr. Lawrence Lacerte President Exponent Technologies Mr. Paul B. Loyd, Jr. Mr. D. Scott Luttrell CEO LCM Group Dr. Bobby B. Lyle Chairman, President and CEO Lyco Holdings Incorporated Mr. James H. MacNaughton MacNaughton & Associates Mr. Cary M. Maguire President Maguire Oil Company Ms. Ruth Ann Marshall Former President of the Americas MasterCard International Ms. Ti Adelaide Martin President Commander’s Palace Mr. Michael F. McGehee CEO Wilmac Resources, L.L.C. Mr. Michael A. Merriman Chairman of the Board Americo Mr. David B. Miller Managing Director EnCap Investments, L.L.C. Mr. Tyree B. Miller President and CEO COMM Group, Inc. Mr. Kenneth R. Morris Vice President & Chief Technology Strategist Workday Mr. Roger Nanney Vice Chairman Deloitte LLP Mr. Erle A. Nye Chairman Emeritus TXU Corp. Ms. Connie O’Neill President, Alumni Association Southern Methodist University Mr. P. Scott Ozanus Southwest Area Managing Partner KPMG LLP Ms. Patricia Patterson President Patterson Investments Dr. Sheron Patterson Senior Pastor Highland Hills United Methodist Church
Mr. Randal L. Perkins Private Investor Private Advisory Group Mr. John C. Phelan Managing Principal and Co-Founder MSD Capital, L.P. Mr. Charles Pistor Retired Vice Chair Southern Methodist University Ms. Melissa M. Reiff President The Container Store Mr. Rick Richards CEO Reserve Oil Technologies, LLC Mr. Ronald H. Ridlehuber Chairman First Choice Companies Mr. Ronald A. Rittenmeyer Former Chairman, President and CEO (retired) EDS Mr. Robert D. Rogers Chairman of the Board Texas Industries, Inc. Mr. Philip J. Romano President Romano Concepts Mr. Robert J. Schlegel Chairman Pavestone Company Mr. Jeffrey R. Schmid Chairman and CEO Mutual of Omaha Bank Mr. Mark Schortman Chairman of the Board Coca-Cola Bottlers’ Sales and Services Company, LLC Mr. John M. Scott III President and CEO Rosewood Hotels & Resorts Mr. Carl Sewell Chairman Sewell Automotive Companies Ms. Cece Smith Mr. Michael G. Smith Private Investments Mr. C. Byron Snyder Chairman of the Board Commercial Alliance Insurance Company Mr. Richard K. Templeton President, CEO and Director Texas Instruments Incorporated Mr. Guy R. Thomas Retired Vice President U.S. Sales Operations Coca-Cola Enterprises Mr. Christopher N. Todd President and CEO APPTRIGGER, Inc. Mr. John C. Tolleson Chairman and CEO Tolleson Wealth Management Mr. Scott B. Walker Mr. Timothy R. Wallace Chairman, President and CEO Trinity Industries Mr. Garry Weber Chairman of the Board Weber Financial, Inc. Ms. Julia Wellborn Texas Regional Managing Director Comerica Mr. William M. Wheless III President Wheless Properties Mr. Robert A. Wilson Executive Vice President Kemmons-Wilson Companies Mr. Charles J. Wyly, Jr. Ms. Trea C. Yip CEO TY Commercial Group, Inc.
c o x C o n ta c t U s
Important Numbers for
Cox Alumni & Friends Academic Department Chairs Accounting: Joseph Magliolo III..........................................................................214-768-1678 Finance: Bill Maxwell...........................................................................................214-768-4150 Information Technology and Operations Management: John Semple............214-768-2546 Management and Organizations: Don Vandewalle..........................................214-768-1239 Marketing: Raj Sethuraman................................................................................214-768-3403 Real Estate/Insurance/Business Law: William Brueggeman...............................214-768-3182 Strategy and Entrepreneurship: Gordon Walker...............................................214-768-2191 Alumni and External Relations Assistant Dean of External Relations and Executive Director Cox Alumni Association: Kevin Knox..............................................................214-768-8338 BBA PROGRAM Associate Dean: Gary Moskowitz........................................................................214-768-1575 BUSINESS INFORMATION CENTER Director: Sandy Miller..........................................................................................214-768-4113 CENTERS AND INSTITUTES EnCap & LCM Group Alternative Asset Management Center...........................214-768-1228 Caruth Institute for Entrepreneurship................................................................214-768-3689 JCPenney Center for Retail Excellence................................................................214-768-3285 KPMG Institute for Corporate Governance........................................................214-768-3053 Maguire Energy Institute.....................................................................................214-768-3692 William J. O’Neil Center for Global Markets and Freedom...............................214-768-3251 CERTIFICATE PROGRAMS Business Intelligence Graduate Certificate Program..........................................214-768-1246 Entrepreneurship Certificate Program................................................................214-768-3689 Graduate Finance Certificate Program...............................................................214-768-4155 Graduate Marketing Certificate Program..........................................................214-768-2469 DEAN’S OFFICE Dean: Albert W. Niemi, Jr.....................................................................................214-768-3012 DEVELOPMENT AND MAJOR GIFTS Director: Robin Maness........................................................................................214-768-3890 EXECUTIVE EDUCATION Associate Dean: Frank Lloyd................................................................................214-768-3191 GRADUATE PROGRAMS Associate Dean: Marci Armstrong.......................................................................214-768-4486 MARKETING AND COMMUNICATIONS Assistant Dean: Lynda Oliver...............................................................................214-768-3678 MBA BUSINESS LEADERSHIP CENTER/BBA LEADERSHIP INSTITUTE Director: Paula (Hill) Strasser...............................................................................214-768-3104 MBA CAREER MANAGEMENT CENTER Assistant Dean: George Johnson.........................................................................214-768-4648 MBA GLOBAL PROGRAMS Assistant Dean: Linda Kao...................................................................................214-768-4754 SOUTHWESTERN GRADUATE SCHOOL OF BANKING President and CEO: Scott MacDonald.................................................................214-768-2991 SPEAKER SERIES BANK OF TEXAS BUSINESS LEADERS SPOTLIGHT SERIES...................................214-768-3030 COLLINS ECONOMIC FORUM...............................................................................214-768-4266 FRANK L. PITTS OIL AND GAS LECTURE SERIES..................................................214-768-3948 SOUTHWEST VENTURE FORUM...........................................................................214-768-3689 www.cox.smu.edu
Making an Impact on Teaching When asked what has made their experience at SMU Cox one to remember, students say it was not just the beautiful campus, the top-notch facilities or even the challenging curriculum; it was the faculty who taught them. In keeping with the legacy that these faculty members have created, one special family has committed to recognize the exceptional professors at the Cox School through their generous gift for the SMU Unbridled: Second Century Campaign. The Boghetich Family Distinguished Teaching Award, established with a $500,000 gift from Jil (BBA ’76) and Tony (BA ’75) Boghetich and their children - April (BA ’01), Travis (JD ’06), Cody (BBA ’07) and Christina - will recognize an exceptional Cox professor whose teaching and service have made a critical difference in the classroom and community. All full-time Cox faculty who have completed applied research projects, written case studies and made a difference in the classroom and the community are eligible for the significant $25,000 annual award. “The Cox School is incredibly grateful
The Bogetich family: April, Tony, Cody, Jil, Christina and Travis.
The Bogetich gift will enhance teaching at Cox
to the Boghetich family for their support of excellence in teaching at SMU,” said Dean Niemi. “This generous gift will enhance the academic quality and national reputation of the Cox School of Business by rewarding Cox School faculty for continuing their fine work
inside and outside of the classroom.” The Cox School is delighted that Information Technology and Operations Management Professor John Semple is the first recipient of The Bogetich Family Distinguished Teaching Award.
Allison Ancona Brubaker joined the Cox School as assistant director of development. Previously, she served as assistant director of telemarketing for SMU’s Office of Alumni Giving and Relations. Prior to that, Brubaker was the advancement associate for the Cox School. Brubaker earned her Professional MBA from the Cox School in December 2008. Assistant Director of Development, Allison Ancona Brubaker (PMBA ’08)
Bill (BBA ’57) & Linda Custard (EMBA ’99)
Dean Niemi, Ed Cox & SMU President Dr. R. Gerald Turner
Senior Associate Dean Bill Dillon, Executive Board Member Carl Sewell (BBA ’66) & Information Technology and Operations Management Professor Amit Basu
Scott Luttrell (BBA ’77) and David Miller (BBA ’72, MBA ’73)—donors of the EnCap Investments & LCM Group Alternative Asset Management Center
Linda & Ken Morris (BBA ’72)
Celebrating Lasting Legacies In celebration of the generosity of the SMU Cox alumni, students, parents and friends who have created endowed funds for the Cox School, Dean Niemi has designed the first Endowment Hall of Donors ever to be installed on the SMU campus. Bronze plaques now adorn the main hall of the Fincher Building recognizing the Cox School’s endowed funds, which are critical to the success of the school and provide funding in perpetuity for scholarships, programming,
faculty positions, and centers and institutes. The oldest endowment supporting the Cox School is the Frank McNeny Endowed Scholarship in Real Estate, established in the spring of 1950. The newest endowment in support of the Cox School is the Alice and Erle Nye BBA Scholarship Endowment, established in March 2009. Additionally, a portrait and biography plaque honoring the school’s namesake, Edwin. L. Cox, now hangs in the lobby of the Ficher Building. The Cox
Endowment Hall of Donors was dedicated on April 24, 2009 with many Cox School supporters in attendance. The next time you are on campus, please come by the Fincher Building to see an important piece of SMU Cox history. If you are interested in learning more about how you can be a part of the Cox Endowment Hall of Donors, please contact Meagan McCracken in the Development Office, 214-768-3074.
James Cali and Andrew Lenz
Andrew Lenz (PMBA ’07) and Jim Cali (PMBA ’00) of Southern Botanical
Growing a Hardy Business Despite Extreme Conditions
In today’s harsh environment, companies are facing brutal choices if they are to survive and hopefully, thrive in the marketplace. Fortunately, smart companies know that cutting customer service can be the kiss of death. In fact, many are choosing to renew their attention to customer satisfaction in an effort to gain and retain prized relationships. “Whether you’re running an international business or a local startup, the way you approach customer service can be the ingredient that makes or breaks your bottom line,” said Jerry White, director of the Caruth Institute for Entrepreneurship. “Savvy entrepreneurs and business leaders know that in order to succeed in business, customer service must start from the ground up. It must be instilled within every employee and throughout every touch point of the organization.” For Cox alumni Jim Cali (PMBA ’00) and Andrew Lenz (PMBA ’07), customer service is more important than ever before. Despite the recession, Cali and Lenz of Southern Botanical, Inc., a Dallas-based high-end landscaping firm, saw their sales increase 95 percent in 2008, and sales continue to rise this year. Their secret? A business model 100 percent dedicated to the customer experience. In the fall of 2007, Cali, Chief Operating Officer of Southern Botanical, was looking to expand the company to become a one-stop vendor for complete indoor as well as outdoor décor when he met Lenz, director of operations for a local interior horticulture service firm, at a
Cox networking event. Soon thereafter, Cali learned first-hand the importance of Lenz joined Southern Botanical to launch customer service training during his days the Interior Division, specializing in the at Cox, where he was one of Paula (Hill) design, installation and maintenance of Strasser’s first students to attend the Disney interior plants, orchids and floral décor. Institute Program, now in its 10th year. Students who participate in the Today, Southern Botanical has become program have the unique opportunity to the Dallas/Fort Worth benchmark for high-end outdoor landscape and irrigation take part in one of the most interactive installation and maintenance, with a client and useful benchmarking experiences in the world, which includes both classroom list that includes many exclusive hotels and field experiences. They learn the and Dallas residences. “Disney Approach” - how Disney thinks Southern Botanical’s secret to about business from both a strategic and exceptional customer service lies in the details. They insist on going the extra mile, tactical perspective - and how to apply it to any industry. even when the customer doesn’t request Cali was inspired. “Disney provided an it. This may entail cleaning windows absolute definition of customer service, after bushes have been pruned, placing and the answer is in the details,” he said. “I “booties” over lawn mower wheels to got customer service before, but seeing it prevent staining limestone sidewalks, in action with such a large group really put uncovering and covering flowers during things in perspective.” a freeze, straightening patio furniture, Southern Botanical takes pride in its carrying the newspaper to the front door and straightening the welcome mat. No job ability to encompass all aspects of the landscape business, treating all clients the is too big or too small. same, regardless of size or budget. They “We train our staff 52 weeks a year know that their successful business will in areas including safety, horticultural continue to grow and flourish because of techniques, customer service—all the their unwavering commitment to exceed way to how the newspaper falls in front customer expectations and always go of the house,” said Cali. “We train to the above and beyond. details and we don’t leave much to the imagination. We set standards, train the standards, n Execute the PACE (Performance Above Customers’ Expectations) and then n Train, train, train – then inspect what you expect (the details) have a team n Communicate to every customer like they are your only customer that quality n Empower fellow team members to make decisions checks the n Overdeliver every single time standards.”
Southern Botanical’s Five Tips for Exceptional Customer Service
Cox Alumni Association
Board of Directors Vicki (right) and Phil Moran (MBA ’87) (left) with Kevin Knox at The Second Century Campaign Regional Kickoff in Houston on February 19.
Through a number of executive speaker series, on-campus events, on-the-road receptions, print and electronic publications, as well as our web site, the Cox Alumni Association helps you stay informed about the school and connected to campus and the worldwide Cox alumni network. There are also countless ways for you to stay involved, such as working with the Cox Alumni Association members in your area to become part of the Cox “core group,” encouraging employers to hire Cox students for internships or full-time career opportunities and attending educational events or social gatherings. We encourage you to participate in a way that works for you. For more information on how you can get involved, contact Kevin Knox at 214-768-8338 or firstname.lastname@example.org. The Cox School of Business is a great investment that continues to increase in value through the financial contributions and business successes of our alumni. Your gift to SMU, designated for the Cox School, will enhance the academic experience of students and faculty and increase the strength and reputation of your degree. We encourage you to make an investment online at www.smu.edu/coxgift, or contact the SMU Cox Office of Development at 214-768-3074.
J. J. Abraham
Los Angeles, CA
Richard de Garis
Gonzalo Escamez Sada
San Francisco, CA
San Mateo, CA
A. J. Hu
Pam Hoyerman Kemper
Ashley Wilson McClellan
Little Rock, AR
St. Louis, MO
Sao Paolo, Brazil
PMBA ’87, JD ’91
La Jolla, CA
BBA ’79, JD ’82
New Orleans, LA
Mary Stephanie Peavy
San Antonio, TX
BBA ’69, MBA ’71 Scottsdale, AZ
Fort Worth, TX
Kansas City, MO
Chairman of the Board Vice chairman
1- January 10: San Diego, California: Randy
Perkins, an SMU parent and member of the Cox Executive Board, hosted a reception at the Grand Del Mar Resort for Dean Al Niemi, members of Cox Alumni Association, friends, prospective students and parents. Pictured here: Kyle Perkins (BBA ’09), Leslie Sabourin, Randy Perkins, Andie Sabourin (BBA ’12), Kevin Knox, assistant dean of external relations.
2- January 11: Newport Beach, California: Seth
(MBA ’94) and Dana Hall hosted a reception at Pelican Hill for Dean Niemi, members of the Cox Alumni Association, friends, prospective students and their parents. Shown here: Dean Niemi, Sharon Phelps and Whitney Zolna (BBA ‘04).
3- January 11: Newport Beach, California: at
the Pelican Hill reception, Jim Bryan, associate director of BBA admissions, visits with a number of prospective students and their parents.
4- January 12: Dean Niemi and Brad Cheves,
vice president SMU development and external affairs, greet Cox alumni and friends at a San Francisco alumni event.
5- January 20: Invited by the MBA students,
Doug Lattner, chairman and chief executive officer for Deloitte Consulting, visited campus to speak to students, faculty, administrators, alumni and friends. Doug’s daughter, Nicole, is a first-
year MBA student. Pictured here: Doug Lattner, as he is being introduced by Marci Armstrong, associate dean of graduate programs.
6- January 23: Texas Motor Speedway. As a part of the initiative to put together the SMU Cox Sports Management Consortium, Erin Patton (EMBA ’06), Cox adjunct marketing professor, Frank Lloyd, associate dean of executive education, and Kevin Knox met with Eddie Gossage, president and general manager of Texas Motor Speedway for his input on this new program. Shown here: Frank Lloyd, Eddie Gossage, Erin Patton.
7- January 28: SMU Capital Campaign Kickoff in Houston: Led by Dr. R. Gerald Turner and Chairman of the Board of Trustees, Carl Sewell (BBA ’66), the Second Century Campaign committee and volunteers joined other alumni and friends at the Houston Country Club for the official Houston-area kickoff of SMU’s capital campaign.
8- February 4: At the Christian Leaders event,
prior to an SMU basketball game, Kevin Knox and Randell Holmes from SMU Athletics, hosted Bob Beaudine (BBA ’77) as the keynote speaker at the Collins Center. Bob had wonderful words of encouragement and shared with the group the basis of his new book, The Power of Who. Attendees were also treated to food and
beverages sponsored by TGIFriday’s located at NorthPark Center. Pictured here: Bob Beaudine discussing “The Power of Who” with Pete Fleps, (BBA ’10) and SMU football player.
9- February 5,6: Terry Dallas, executive vice
president of Wells Fargo, US Corporate Banking, and a member of the Cox Executive Board and his team from Wells Fargo, sponsored their annual finance case competition for MBA students. Included in the competition were teams from Washington University-Olin School of Business, The University of Oklahoma-Price School of Business, The University of Texas-McCombs School of Business and SMU Cox. Shown here is the competition’s 1st place team from SMU Cox: Brian Esquire, Gavin Worthy, MaryCarol Dryden and Todd Westerburg (all MBA ‘10).
10- February 9: Frank Lloyd and Kevin Knox visited with SMU alumnus Jason Sands to tour his business operation, American Flyer located at the Addison Airport. The tour included a fly over of the SMU campus, downtown Dallas, and the surrounding area. Pictured here: Jason Sands and Frank Lloyd upon returning from the sky tour. 11- February 10: Dean Niemi hosted a special
Cox School of Business celebratory reception to recognize Senior Associate Dean, Bill Dillon and the Cox finance faculty. Shown here with Summer 2009
his colleagues, Professor Dillon was acclaimed as the 16th most recognized individual in marketing research.
12- February 10: The Cox finance faculty was
recognized as the 10th best in finance, by a Financial Times survey. Pictured here: Dean Niemi along with finance faculty and support staff.
13- February 12: Extending its community
outreach efforts, the Cox School of Business, the Executive MBA Program and Cox Executive Education sponsored an exhibit at the North Dallas Chamber of Commerce Business Expo at the Addison Conference Center. Representing the Cox School were: Kevin Knox, Ginny Shearin, Delania Teems, Frank Lloyd and Stephen Pike.
14- February 18: Austin, Texas: Dean Niemi
hosted a reception for Austin-area members of the Cox Alumni Association, friends, prospective students, and parents. Shown here: Marc (MBA ’05) and Shelley Conselman and Mary and TJ Kendall (MBA ’06).
15- February 18: Austin, Texas: also in
attendance at the reception: Steve Sliman (MBA ’93, left) and Rob Prentiss (MBA ’03).
16- February 19: Houston, Texas: Bill (MBA ’71) and Laura Wheless hosted a reception for www.cox.smu.edu
Dean Niemi, Houston-area members of the Cox Alumni Association, friends, prospective students and parents. Bill is a member of the Cox Executive Board. Pictured here: Dean Niemi addressing the group gathered at the Bayou Club.
The Mastermind Group and has recently written and released his book, Under the Influence: Tracing the Hip-Hop Generation’s Impact on Brands, Sports & Pop Culture.
20- February 27: Led by Associate Dean Marci
Dean Niemi’s economic forecast were: Johnny Zilliacus, Associate Board mentor, Alex Stem (MBA ’01), and George Johnson, assistant dean MBA Career Management.
Armstrong and Ginny Shearin, program coordinator, during the 21 week program, the Graduate Marketing Certificate Program graduated 51 students. Shown here are: 1st row (l to r) - Kathryn Brand, Karen Hunt, Jan Krause, Jill Zanutto, Teju Bhatt, Melissa Zales, Jennifer Burgin, Meissa Fernandes, Andrea Smith, Angela Torrey, Lauren Robinson, Marci Armstrong, GMCP Director; 2nd row, Gloria Hernandez, Mary Jo Dancer, Gandhar Dighe, Jose Trezza, Nafeesa Belcher, Beth Guinn, Delania Teems, Mary Cheatham, Debra Miller, Judy Garrett, Lisa Carr, Marisa Velador, Amanda Mitchell, Sally Schall, Renee Farinella; 3rd row – Juliet Siddons, Stephanie Sanoja, Kelvin Keith, Bob Mynster, Lisa Weistart, Tosha DiIorio, Evan Batt, Jennifer Pantuso, and Robin Durham.
19- February 27: At the Graduate Marketing
21- March: 2-6: New York, New York: the
17- February 24: Dean Niemi presented his
economic forecast at a luncheon coordinated and hosted by SMU Legacy. The audience was comprised of business executives, government officials, alumni and friends from the Legacy area. Shown here: Lynda Oliver (MBA ’94), assistant dean marketing and communications and Kate Livingston, director-SMU Legacy as they greet guests prior to the luncheon and program.
18- February 24: Also, in attendance to hear
Certificate Program graduation exercises, Erin Patton (EMBA ’06), Cox adjunct marketing professor, served as commencement speaker for the graduates, their business colleagues and families. Patton spoke of being able to “Zoom In and Zoom Out” in areas of expertise in marketing. Patton is the founder of TMG,
Cox MBA Distinguished Scholars participated in the “Week on Wall Street” visiting with a number of Cox alumni, corporate partners, and recruiters including, Jim MacNaughton, Tom Jasper, John Phelan, Marty Flanagan and others. Pictured here: Jim MacNaughton meeting with Marci Armstrong and the students.
22- March 3: New York, New York: During
“Week on Wall Street,” Dean Niemi hosted a reception for members of the Cox Alumni Association members, friends, current and prospective students and parents. Shown here: Justin Turner (BBA ‘98), Larson Campbell (BA ‘97) and David Thigpen (BBA ‘97)
26- March 18: Oklahoma City, Oklahoma:
Also attending the alumni reception: Chris Wilson (BBA ’03), Sarah Brune Edwards, John Edwards (BBA ‘00) and Paul Pustmueller (BBA ‘90).
27- March 22: Tampa, Florida: Laura (BS ’77)
enjoying the Cox reception: Stephanie Dupaul, director of BBA Admissions, Laura Till (BBA ’82, Cox Alumni Association Board of Directors) from Albany, NY, and Robin Maness, Cox director of development.
and Scott Lutrell (BBA ’78), member of Cox Executive Board hosted a reception at Palma Ceia Country Club for Dean Niemi, members of the Cox Alumni Association, prospective students and parents. Shown here welcoming guests: Laura Luttrell and Ian Russell (BBA ’71) from Estero, Florida.
24- March 13: Angela Raitzin (MBA ’00),
28- March 23: Miami, Florida. Dean Niemi
23- March 3: New York, New York: Also,
director of structured product sales with Deutsche Bank in New York, spoke to a group of MBA students, faculty and administrators over breakfast in the Dean’s Parlor. In May, Angela was honored with a Cox Outstanding Young Alumni award.
25- March 18: Oklahoma City, Oklahoma.
Tony (BBA ’75), member of Cox Executive Board) and Jil Boghetich (BBA ‘76) hosted a reception in Oklahoma City for Dean Niemi, members of the Cox Alumni Association, friends, prospective students and parents. Pictured here: Tony introducing Dean Niemi before the dean’s remarks.
hosted a reception for members of the Cox School Alumni Association, friends, prospective students, and parents. Pictured here: John Oakes, parent, Will Elert, (incoming student), Dennis Campbell, current parent, Mike Battle (BBA ’79) and John Oakes, Jr, prospective student.
29- March 26: Kevin Knox and Wayne
Richard, chairman of the Cox Alumni Association Board of Directors, hosted a social hour for alumni, friends and students at the Capital Grille at the Crescent. Part of the outstanding turnout: John McBride (PMBA ‘03), Jen McMillen (MBA ‘04) and Rob Kilgore (MBA ‘02).
30- March 26: Also attending the reception at the Capital Grille: Michael Caplan, director of MBA student services, and Matt Canon, with TGIFriday’s, a current PMBA student.
31- March 27: Participants of the fashion
show featured at the International Student Festival in the Collins Center commons area. The event was organized by Michael Caplan and his student committee.
32- March 31: Kansas City, Missouri: Alumni
reception, Ellen (BBA ’85) and Michael (BBA ’79) Merriman hosted a reception at their home for Dean Niemi, Cox Alumni Association members, friends, prospective students and parents. Pictured here: Michael Merriman introducing Dean Niemi before the dean’s remarks.
33- March 31: Visiting with Dean Niemi at
the Merriman’s reception: Edward Merriman (incoming student) and TJ Sotos (BBA ’05, MBA ’08).
34- April 3: Tom Perkowski, assistant dean
EMBA asked June Jones, SMU Head Football Coach, to speak to first and second year EMBA students. Shown here: Kevin Knox, June Jones and Tom Perkowski.
Informed, From the Chairman of the SMU Cox Alumni Board of Directors Involved, Invested
SMU has a strong and rich heritage. With unwavering dedication, perseverance and drive, our University has grown in worldwide stature and reputation as a result of the foresight and leadership of our founders. As alumni Through a number of executive speaker events, on- we have played of Cox, series, we too on-campus can take pride in knowing the-road print and electronic a role in receptions, the University’s success. Our fellow alumni have publications, Webworld site, the ventured intoand the our business and Cox have often accepted Alumni Association helps you stay leadership roles that impact our livesinformed and our world. about school and connected to campus Thethe SMU Cox Alumni Board has strived to bring all of us and the worldwide CoxCox alumni network. together to ensure the experience continues to serve us There are also countless ways forThe youphrase “Informed, both professionally and personally. toInvolved, stay involved, such as working with Invested,” represents an ongoing desire to keep the Cox Alumni Association members in school ventures our alumni educated and engaged as our your area to become part of the Cox “core forward. The power and influence that our alumni base can group,” encouraging employers to hire Cox yield has yet to be utilized to its greatest measure. With this students for internships or full-time career in mind, the Alumni Board has installed a new organizationopportunities, and attending educational al structure with renewed focus and responsibility. events or social gatherings. We encourage intent is to provide current and future Cox represenyou Our to participate in a way that works for tatives support needed to successfully establish a you. For with morethe information on how you strong local representation regardless of geographical can get involved, contact Kevin Knox at location. Theor new organization is also structured to encour214-768-8338 email@example.com. age fromofthe field. is a great Thefeedback Cox School Business
investment that continues to increase in The board isthe structured as follows: value through financial contributions Executivesuccesses Board with Chairman andYour Vice Chairman and•business ofaour alumni. Directors for the Cox School gift •toRegional SMU designated will •enhance the academic experience City Directors of students and faculty, (non-voting and increase the • City Representatives members) strength and reputation of your degree. We It encourage youlevel to make investment is on the local wherean Cox events are organized and online at CoxGift.smu.edu, or contact implemented. Cox events can be varied and customized to a the SMU Cox Office of Development at particular region. Events to recruit undergraduate students, 214-768-3890. or to promote graduate programs, executive education programs, social hours and golf tournaments are just a few of the events we expect to promote and support. As alumni, we all have a responsibility to ensure the Cox School’s continued success. If you are interested in reconnecting with your fellow alumni and recognize the impact you will have as a Cox ambassador, I strongly encourage you to contact me, or a board member in your area. Detailed information on the new board structure along with an interactive map of board members can be found on the alumni site www.smucoxalumni.com. Be sure to update your current information and consider registering for a lifetime Cox e-mail address. SMU and Cox are entering an exciting new era with the many changes and advances taking place. I hope you’ll join me in reconnecting and supporting the Cox School, as we will all benefit from your contributions.
Wayne S. Richard (BBA ’80) Chairman, SMU Cox Alumni Board of Directors
Non-Profit U.S. Postage
Southern Methodist University Cox School of Business PO Box 750333 Dallas, TX 75275-0333
Liberty, MO Permit No. 441
Address Service Requested
Invest smart. Invest in yourself. Get a Cox MSM business degree in just 12 months. The Cox Master of Science in Management (MSM) program is designed to help you: n Develop solid budgeting, management, financial and strategic planning skills without leaving the workforce. n Learn to “speak” the language of business to advance your career in your chosen discipline. The 12-month program offers evening and weekend classes to accommodate your busy schedule.
For more information, visit www.coxmsm.com or contact Vicki Cartwright at firstname.lastname@example.org or 214-768-1840. Southern Methodist University will not discriminate on the basis of race, color, religion, national origin, sex, age, disability or veteran status. SMU’s commitment to equal opportunity includes nondiscrimination on the basis of sexual orientation.