W I N T E R 2013
G R A D UAT E S C H O O L O F M A N AG E M E N T
THE NEW GLOBAL ENERGY LANDSCAPE
Amy Myers Jaffe EXECUTIVE DIRECTOR OF ENERGY AND SUSTAINABILITY
Evangelist of Entrepreneurship
Sustainable AgTech Innovation
Men Rule Corporate California
Students Make an IMPACT
Carl Schramm to Teach Burn the Business Plan
New Center Sows ‘Silicon Valley of Agriculture, Food ’
Only 1 Woman for Every 9 Men at Top of California 400
MBA Consulting Projects Deliver Results for Fortune 50
U C DAV I S G R A D UAT E S C HO O L O F M A N AG E M E N T
Sustainable AgTech Innovation Center
2 I The New Global Energy Landscape Q&A with Amy Myers Jaffe
5 I UC Davis: No. 1 ”Cool School“ for Sustainability S P E C I A L S E C T I O N : AC C E L E R AT I N G I N N OVAT I O N
6 I Growing a Sustainable Future
I “Evangelist of Entrepreneurship” Carl Schramm
10 I Obstacles to Innovation
11 I Jim Olson Hones Students’ “Leadership DNA” 12 I VinPerfect’s Wine Cap a Big Success 13 I Crash Course in Commercialization 14 I Ignite Blazes Trail to Silicon Valley
14 I International Innovation & Entrepreneurship Academy
FACU LT Y FO CUS
15 I Real Estate: Buy or Rent in Northern California? 16 I Hidden Costs of Mutual Fund Investing 17 I Wine Industry on Upswing
17 I Data Mining in the Classroom
18 I Sowing the Seeds of Economic Growth
18 I New Tool to Measure Consumer Demand 19 I Long Fuse, Big Bang of Innovation
20 I CalPERS Partnership on Sustainability
21 I Tug-of-War Economics of Product Bundling 21 I Political Contributions and Stock Returns 22 I Models for Managing Crisis Episodes
23 I Craig Cummins Invests in Global Sustainability CORPOR ATE CONNECTIONS
24 I California 400 Companies Dominated by Men 26 I MBA Student Consultants Make an IMPACT
28 I Executive Education Offers Suite of Programs DISTINGUISHED SPEAKER
30 I CalPERS’ Anne Simpson: Management Responsibility 31
35 I No. 1 Worldwide for Recruiter Diversity
35 I Meet Carl Gayden, Monica Jones and Mary Maffly 37 I School Welcomes Largest Class Ever 37 I Commencement 2012
38 I Casino Royale Rocks Sacramento
38 I Stephen Newberry Honored for Service 39
IN APPRECIATION CLASS NOTES
Graduate School of Management
University of California, Davis One Shields Avenue Davis, CA 95616-8609 (530) 752-7362
Steven C. Currall
Current and back issues of the Innovator are available online. www.gsm.ucdavis.edu/Innovator
Hemant Bhargava Paul Griffin Assistant Dean– Student Affairs
James R. Stevens
Assistant Dean– Development & External Relations
Judy Nagai Managing Editor
26 Associate Editor
Scott Braley Sue Cockrell/Davis Enterprise Karin Higgins Gregory Urquiaga T.J. Ushing The GSM Community
Assistant Director of Marketing and Communications
Senior Director of Marketing and Communications
Sarah Colwell Joanna Corman Karen Nikos Crystal Ross O’Hara
Page Design Group
Printed with soy-based inks on paper manufactured from recycled fibers and sustainably managed tree plantations.
ACCELERATING INNOVATION BUSINESS SCHOOLS MUST FUEL ECONOMIC GROWTH
THE NEW GLOBAL ENERGY LANDSCAPE :
Amy Myers Jaffe, executive director of energy and sustainability, at the UC Davis West Village (left and on the cover), the largest planned zero net energy community in the U.S.
usiness schools are at a crossroads of relevancy. While it is important to our mission, we can no longer settle simply for teaching undergraduate and MBA students how to be better managers and leaders. We must take a lead role in accelerating innovation and inspiring entrepreneurship toward new business development. We must act as an engine of economic prosperity in our regions and globally. I recently traveled to Washington, D.C., to take part in a summit hosted by the U.S. Department of Commerce that focused on the role of universities to foster a climate that promotes student and faculty innovation and entrepreneurship, actively supports university technology transfer, enables universityindustry collaboration, and engages regional and local economic development efforts. Business schools—especially those at research universities—are uniquely positioned to help develop new technologies and leading-edge solutions that benefit our society and the planet. In this issue, you’ll read about several initiatives, incubator programs and commercialization efforts here at UC Davis that we have developed in concert with our faculty’s world-leading expertise in innovation and entrepreneurship. Most recently, we welcomed Amy Myers Jaffe, one of the world’s preeminent energy industry experts, as our executive director of energy and sustainability. And this spring, Carl Schramm, named the “Evangelist of Entrepreneurship” by The Economist, will teach an MBA course as the first to hold our Ciocca Visiting Professorship in Innovation and Entrepreneurship. Our Child Family Institute for Innovation and Entrepreneurship continues to bring researchers from across the UC Davis campus—and nationally and internationally— to intensive academies that build the networks and paths that move promising technologies from the lab to the market. And, last autumn, UC Davis was one of six institutions nationwide, and the only one in California, to receive a $1 million matching grant in the U.S. Department of Commerce’s Economic Development Administration’s 2012 i6 Challenge Grant competition to create a proof of concept center. Our newly established Sustainable AgTech Innovation Center, a partnership with the Sacramento Area Regional Technology Alliance, will accelerate entrepreneurial thinking among researchers and businesses in the sustainable energy and agricultural fields, and develop a network of experts and financiers to support entrepreneurs and start-ups. At the Graduate School of Management, we are mindful that promoting economic prosperity operates at two levels. First, we must provide business and management leadership to medium- and large-sized companies. Second, we must act as catalysts to help small, new ventures bring innovations to market and create new high-quality, high-paying jobs.
S T E V E N C . CU R R A L L
District VII 2013 Special Constituency Magazine Gold Award Winner
Dean and Professor of Management www.stevecurrall.com Follow on Twitter@ucdavisgsmdean
U C D AV I S G RA D U ATE SCHOOL OF M ANAGEM ENT 1
THE NEW GLOBAL ENERGY LANDSCAPE
Amy Myers Jaffe EXECUTIVE DIRECTOR OF ENERGY AND SUSTAINABILITY BY T I M A K I N
Amy Myers Jaffe, one of the world’s leading experts on the oil industry and an influential thought leader on global energy policy, joined UC Davis in October, strengthening the university’s leadership on clean technology, sustainable energy and transportation. Jaffe is executive director of energy and sustainability in a joint appointment to the Graduate School of Management and the Institute of Transportation Studies. She spent the past 16 years at Rice University as director of the Energy Forum at the James A. Baker III Institute for Public Policy. She served as a Wallace S. Wilson Fellow in Energy Studies and associate director of the Rice Energy Program. Jaffe’s expertise spans oil geopolitics and strategic energy policy, including energy science policy and energy economics. She was drawn to UC Davis by its focus on sustainability and the interdisciplinary research and relationships between transportation and energy, and by the opportunity to work near California’s state capital, an international pioneer on environmental and public policy issues. In addition to research support on energy issues, Jaffe is deeply involved in executive education initiatives and will teach an MBA course on sustainable business ventures. She is a frequent commentator in the media, and an invited keynote speaker at major energy industry and investment conferences and board meetings. She led a discussion about shale oil and gas with global oil industry CEOs and executives at the World Economic Forum in Davos, Switzerland, in January. On The Economist’s Digital Debate in February, she engaged in an interactive discussion on fracking with the Sierra Club’s executive director. Recently, Dean Steven Currall sat down with Jaffe for a wide-ranging broadcast TV interview about the energy industry and markets. This is an edited excerpt of the interview.
2 W I N T E R 2013 I N N OVATO R
Dean Currall: Tell us more about the activities you’ll be involved with here at UC Davis.
Amy Myers Jaffe: I’m thrilled
because UC Davis is a world leader in energy and sustainability. I’m very excited to be able to work in the West Village, which is a phenomenal test bed for new technologies we’re going to need as we move forward. It’s a very exciting time to be looking at energy. We’re having great transformation, even in the oil and gas sector, including the development of resources from the shale formations, which is revolutionizing the way we think of ourselves as an oil importer here in the United States. It’s also a pivotal time, from the point of view of climate change, bringing on new technologies and cleaner energy sources. And with the Middle East in turmoil, we’re going to need those new energy sources because we want to preserve the planet and we are going to need them just to be able to go about our daily lives. It’s going to become harder to rely on resources from the Middle East imported to the United States.
: Do large traditional oil and gas firms have the research and development and innovation infrastructure to transition to a bigger emphasis on renewable energy? Are they nimble enough?
: It’s a very big challenge for the industry. The question is how, as a large organization, can you tap the entrepreneurial spirit of start-ups? There’s interest in it, such as the Low Carbon Fuel Standard here in California. You’re seeing companies like BP, Chevron and Shell trying to think about how to bring cleaner fuels into their portfolio, including “liquefied natural gas,” or LNG. And you’ve got big transportation players like UPS that are moving to LNG as a cleaner, perhaps less expensive fuel. So it’s an interesting time to see what technologies might win, what business strategies can work. GE is now setting up business plan competitions in their energy division to come up with new products. They are trying innovative, interesting things, even though they’re large corporations. It’s very hard to be like a Silicon Valley start-up.
: In a recent National Public Radio
interview you discussed the global oil markets and you drew an analogy to swimmers in a swimming pool. Can you explain that?
: It’s a global market, and so it’s one price for all. The analogy to the swimming pool is if we’re all having a lovely Sunday and we’re all in the pool and someone takes a bucket and they start pulling water out of the pool it affects the person in the deep end the same amount as the person in the shallow end. It’s less water for the whole pool. And the same way if you pour more
water in, it affects the whole pool. So that’s what we have to understand, but it doesn’t mean that having more energy produced here in the United States wouldn’t help us. And the reason it would help us has to do with our trade balance and the strength of the dollar and other positive things that would come about if we kept the revenue from our energy use here in our own country and we’re not shipping our dollars to Saudi Arabia or to Russia or other countries. If we were paying someone who’s producing oil in Texas or Pennsylvania, or with the new oil maybe even Ohio or Florida or California, then that money stays in the U.S. economy and we would be able to wind down our current account deficit over time.
: Your recent
book, Oil, Dollars, Debt, and Crises: The Global Curse of Black Gold, has a provocative title. Tell us about the market dynamics and the boom and bust activity that you’ve seen in this market and the role of the banks, currency valuation and energy price crises.
continued on page 4
U C D AV I S G RA D U ATE SCHOOL OF M ANAGEM ENT 3
“At the Graduate School of Management, we can help energy companies understand how to mitigate risks through smart business operations. That’s part of the role of the business school. It’s why we do executive education, because risks change over time.” — Amy Myers Jaffe, Executive Director of Energy and Sustainability
: In times of economic growth, our oil demand goes up because it takes more energy the more economic activity you have. And as the price goes up there’s a lag between the time it takes an oil company or producer to go out and drill for that oil and then bring it to market. The higher the price goes, now we’re importing a lot of oil, so we’re sending that money out to Saudi Arabia, Venezuela and the Middle East. They have small populations; they’re not manufacturingbased economies. You’re pouring hundreds of billions of dollars into an economy instantly as the price is going up, and they can’t absorb that money. So they put it in a Sovereign Wealth Fund, and then the money has to come back out into the international financial system. ...You get inflation, you get this giant financial bubble. We saw this in 2007. Then as people lose their jobs and businesses can’t move forward because of the financial crisis, that lowers oil demand. And oil prices fall, which we saw in 2008–2009. So we have this boom-bust cycle. The best way to ameliorate it is to have a steady program in alternative energy and to try to improve energy efficiency, which is something we work on very hard here at UC Davis. It’s a critical element to get us out of this boom-bust cycle we’ve been seeing since the 1970s.
4 W I N T E R 2013 I N N OVATO R
: There’s been increasing investment in renewables and alternative energies, but in some circles a lack of enthusiasm and support for traditional oil and gas projects. Take the Keystone Pipeline, for example. What are your thoughts about what’s going on there politically, and also what are the implications for a project like that for the U.S.?
: I tell people we have to be realistic. I strongly believe that we need to move toward alternative energy, and we need to make the investment to do that. And that means we need to have strong government support for fundamental science and R&D in these important technologies. We need projects like the West Village project here at UC Davis, where we are deploying those technologies in a real-time incubator so we can get them commercialized and proven. But the flip side is we have in this country 350 million vehicles on the road that run on liquid fuel. And we can block the development of a pipeline or oil and gas resources because we feel that’s “dirty energy.” But who are we hurting if you’re not willing to get out of your car? ...What we need is a thoughtful transition where we’re making sure that we have enough supply for our immediate needs, but we are taking steps in policy to make sure that over time those immediate needs fall and that we have a diversified energy portfolio.
: Was Germany’s decision to pull back from their emphasis on nuclear power an overreaction to the Fukushima nuclear disaster in Japan? It seemed to be quite a large swing in their energy policy.
: It’s very challenging in the energy policy
space not to overreact because energy production is industrial. Whether it’s the Fukushima accident or the Macondo Spill in the U.S. Gulf of Mexico, when we’re confronted with a temporary failure in a technology because of a natural disaster or because of human error, the impetus, the knee-jerk reaction is to say, “We shouldn’t use that technology anymore.” ...The problem with that approach is that there are risks with any kind of energy production. At the Graduate School of Management, we can help energy companies understand how to mitigate risks through smart business operations. That’s part of the role of the business school. It’s why we do executive education, because risks change over time. For example, companies are going to have to start to deal with the risks associated with climate change. Nobody has wrapped their brain around it. A huge percentage of the world’s refining and petrochemical industry is located on the coast. And they’re places that are going to be affected by sea level rise and we saw that during Hurricane Katrina, where these refineries were damaged by the storm. I can assure you the refining industry hasn’t even thought about that. They have no plan. ...Same is true with cyber security. ...The Exxon Mobils or Shells of the world five years ago, 10 years ago weren’t thinking about cyber security as a risk to production. Are they thinking about it today? Yes, every minute of the day.
UC Davis Recognized as America’s “Coolest School” for Sustainability GALLAGHER HALL’S LEED PLATINUM RANKING CELEBRATED
: Last year here at UC Davis we hosted
a talk by Amory Lovins of the Rocky Mountain Institute. He said that the U.S. could end its reliance on fossil fuels and the U.S. economy could grow its economy by nearly 160 percent while eliminating the need for oil, gas, nuclear and one-third of the natural gas, and that we would save $5 trillion on the net present value cost in this process. Are those figures realistic or is he looking through rose-colored glasses?
: I like to do an exercise to take energy
units and make them comparable. We have 103 nuclear plants in the United States. To convert that to renewable energy, you’re talking about a huge amount of final power. The global numbers—to give you an idea—suppose we wanted to take all of the fossil fuel used globally and convert it to renewable energy. That would be the equivalent of building over 6,000 nuclear plants worldwide. It’s 14 times the number of nuclear plants we have in the world today. In the United States, we’ve added one plant since 2005, and it’s not even finished yet. My point is the scale-up of what we’re talking about is so large that it’s not something we’re doing in a five- or 10-year horizon. ...And it’s going to take some government intervention, and it means that citizens have to be engaged in the process.
Sierra magazine has named UC Davis the nation’s “Coolest School“ for its sustainability and climate change efforts. An international powerhouse in the environmental sciences, UC Davis ranked No. 1 among the 96 top colleges and universities surveyed. In bestowing the “Coolest School“ ranking, the Sierra Club’s official publication praised UC Davis for establishing rigorous green purchasing standards; diverting nearly 70 percent of campus trash from landfills; and offering an extensive transportation system that include the student-run, natural gas-powered Unitrans bus service, 42 miles of bike paths and 21,000-plus bike parking spaces on the 5,300-acre campus. Other ways that UC Davis has distinguished itself, according to Sierra magazine, include a Climate Action Plan to reduce greenhouse gas emissions below 2000 levels; a $39 million Smart Lighting Initiative to reduce electrical use by 60 percent by 2015; and eco-friendly construction. E N V I RO N M E N TA L LY FR I E N D LY FAC I L I T I ES
Four UC Davis building complexes are certified LEED Platinum, the highest ranking awarded by the U.S. Green Building Council and more than any other UC campus. When the Graduate School of Management’s Maurice J. Gallagher Jr., Hall and adjacent conference center earned LEED Platinum in October 2011, it became the first business school in California—and only the third in the U.S.—to achieve the ranking.
Learn more about UC Davis’ sustainability efforts http://sustainability.ucdavis.edu
Dean Steven Currall (right) presents a LEED Platinum certificate to Maurice and Marcia Gallagher at an event in November celebrating the ranking. “This has a very nice air to it, a very
View the full 30–minute video interview: www.gsm.ucdavis.edu/EnergyIndustry-Insights Read more about Amy Myers Jaffe and follow her blog www.gsm.ucdavis.edu/jaffe
nice touch to it, and it is built to be productive. I couldn’t be happier with the outcome,” said Gallagher, whose transformational $10 million gift to name the building is the largest gift to the campus from a living alumnus.
U C D AV I S G RA D U ATE SCHOOL OF M ANAGEM ENT 5
GROWING A S U S TA I N A B L E FUTURE $1 Million Grant Helps Develop Sustainable Agricultural Businesses, Advance Innovative Technologies BY M A R I A N N E S KO C ZE K
or years, UC Davis postdoctoral
Khaldi enrolled in the 2012 Food + Health Entrepreneurship Academy, offered by the UC Davis Child Family Institute for and both plant- and mammal-derived Innovation and Entrepreneurship. foods, developing algorithms that During the four-day intensive analyze data to answer essential academy, she says, “I learned much scientific questions. about delivering a successful Her work remained strictly food-related business. More academic—until she discovered importantly, I gained the courage a means to mine food for to really drive growth in my bioactive peptides, which own start-up, and a network of have a direct and active contacts to help me do this.” impact on health, Last summer, Khaldi such as lowering launched Nuritas, which UC Davis was one of just six cholesterol, or today is ready to revoludiabetes. “Unlike tionize the food industry. institutions nationwide, and low-fat, low-sugar Nuritas uses computer the only one in California, to or low-salt prodprograms to search food receive an i6 Challenge Grant. ucts,” explains genomes and discover Khaldi, “these molecules that help peptides aren’t just healthy: They people actively reduce certain diseases, actively fight disease.” and works with food companies to search Determined that her life-saving their ingredients for molecules that are discovery would make it to market, beneficial for human health. researcher Nora Khaldi studied the evolution of mammals, fungi, bacteria,
“Our Sustainable AgTech Innovation Center will further strengthen the Child Family Institute for Innovation and Entrepreneurship’s role in reinforcing the Sacramento region—and California’s Central Valley—as the ’Silicon Valley of agriculture and food’.”
— Dean Steven C. Currall Principal investigator for the $1 million federal i6 Challenge Grant
6 W I N T E R 2013 I N N OVATO R
Sustainable AgTech Innovation Center
When Davis Roots, a business accelerator bridging the city of Davis and the university, opened its doors last spring, Nuritas was among its charter clients. The fledging company received office space and support to develop a detailed launch strategy, including a business plan, fundraising goals and project milestones, as well as opportunities for Khaldi to grow Nuritas’ network with experienced entrepreneurs, investors, and patent and corporate lawyers. Today, Khaldi says, Nuritas is “signing off contracts with a number of multinational food companies and expanding our team, both in Davis and in our new office in Dublin, Ireland. We are preparing to attract investors and expect to meet with interested parties in the second quarter of 2013.” G R E E N E R AC R ES
Nuritas represents the kind of groundbreaking food- and agriculture-related start-up that will benefit from the UC Davis Sustainable AgTech Innovation Center, established in September with a $1 million award in the U.S. Department of Commerce’s Economic Development Administration’s 2012 i6 Challenge Grant competition. UC Davis was one of just six institutions nationwide, and the only one in California, to receive an i6 Challenge Grant. The new center, within the Child Family Institute for Innovation and Entrepreneurship—a Center of Excellence at the Graduate School of Management—is a creative collaboration with the nonprofit Sacramento Area Regional Technology Alliance (SARTA) to accelerate entrepre-
An inaugural Sustainable AgTech Entrepreneurship Academy, to be held October 22–24, will help agriculture entrepreneurs identify market needs and opportunities, and will create “food chain” clusters of innovation. A seed grants program will provide funding of up to $25,000 to eligible scientists and researchers who are committed to exploring the commercial applications of their technologies. “There is excellent infrastructure at UC Davis around innovation, commercialization
Sue Cockrell / Davis Enterprise
and technology transfer,” notes Bob Adams, the center’s executive director
“Both scientists and entrepreneurs have to find a solution to a problem to be successful. We need to be driven, good communicators, multi-task and not take no for an answer.”
— Nora Khaldi, founder of Nuritas and 2012 Food + Health Entrepreneurship Academy alumna
neurship and economic development in the nine-county Sacramento region.
agriculture supply chain, from farm to fork—and fuel,” Hargadon adds.
“The center presents a great opportunity for us to expand our team and focus
The center provides a virtual incubator for new agricultural practices, water and
efforts on building out broader collaborative networks across the campus and
energy efficiency in production and food processing, advances in nutrition, food
across the region to help bring sustainable agriculture technologies out of our
quality and safety, and new food products. Central to this is a growing network of
research labs and into the market,” says Child Family Institute Director Andrew Hargadon, the Charles J. Soderquist Chair in Entrepreneurship. “The new innovation center encompasses emerging technologies in every aspect of the spectrum of the modern
academic, industry and professional organizations that support the process to develop new ventures. Opportunity Workshops, to be held this spring and again in the fall, will offer training, practical tools and knowledge networks for aspiring entrepreneurs.
and entrepreneur-in-residence. “These seed grants can complement that work.” Adams brings a wealth of experience in sustainability, innovation and transformation; partnership and network building; and agricultural and environmental issues to the new enterprise. The director of business partnerships at Sustainable Conservation (San Francisco) and a fellow at IDEO, one of the world’s leading design and innovation consultancies, Adams is also a Central Valley farmer who produces heritage fruits and vegetables, grains and olive oil. “UC Davis has an almost unique set of qualities for taking on the larger questions around sustainability, especially in agriculture,” says Adams. “As a land grant institution, we have a history and a practice of applying research to practical solutions that better our world. And our programs in the sciences, engineering, medicine, management and law ensure a portfolio of capabilities that are both broad and deep. “This is an exciting time to expand the connections between agriculture, innovation and entrepreneurship and to play a role in enabling leading-edge solutions that will benefit our society and the planet as a whole.” http://entrepreneurship.ucdavis.edu/ agtech.php
U C D AV I S G RA D U ATE SCHOOL OF M ANAGEM ENT 7
“Evangelist of Entrepreneurship” Carl Schramm NAMED ARTHUR AND CARLYSE CIOCCA VISITING PROFESSOR BY S A R A H C O LW E L L A N D T I M A K I N
arl Schramm, one of the world’s leading experts on entrepreneurship, innovation
“It is a great honor for me to accept the Ciocca professorship,” Schramm said.
and economic growth, will teach at the Graduate School of Management, thanks
“Art Ciocca, through his support of UC Davis, is the model of what a success-
to a recent gift from the Arthur & Carlyse Ciocca Charitable Foundation.
ful entrepreneur does when he engages in giving back to the community.
Schramm, former president and chief executive officer of the Ewing Marion
“I was compelled to accept the offer because I admire Chancellor Linda Katehi’s
Kauffman Foundation, is the inaugural holder of the Arthur and Carlyse Ciocca
leadership in the area of academic studies of entrepreneurship and I knew of the
Visiting Professorship in Innovation and Entrepreneurship. He will teach at the School this spring quarter, which begins in March. Named the “evangelist of entrepreneurship” by The Economist, Schramm is a serial entrepreneur who has played important roles in advancing entrepreneurial capitalism globally. He co-authored a new, best-selling book, “Better Capitalism: Renewing the Entrepreneurial Strength of the American Economy,” (Yale University Press, 2012) with Robert Litan.
good work Professor Andrew Hargadon has done in the field of energy and innovation,” he added. “I knew, by coming to UC Davis, I would have colleagues working on interesting frontiers in entrepreneurship.” Schramm said this will be an opportunity to test his new theory of how entrepreneurship should be taught in his tentatively titled MBA course: Burn the Business Plan: What Entrepreneurs Really Do When Starting a Business. “I have come to believe that the prevailing view of how firms start, really a linear progression from idea to exit, doesn’t come close to serving as an accurate model of how the businesses I know and have studied go about getting themselves started,” he noted.
“Carl is not just an ordinary professor. He’s somebody who’s been there, done it, taught it and lives it. He can bring real-world, practical experience to the classroom and in a way that is simple, understandable, practical and powerful for everyday use by students.”
8 W I N T E R 2013 I N N OVATO R
— Art Ciocca, founder of The Wine Group, benefactor of the Arthur and Carlyse Ciocca Visiting Professorship in Innovation and Entrepreneurship
Dean Steven Currall applauded Schramm’s appointment as a welcome addition to the faculty. “We are thrilled to welcome Carl to the Graduate School of Management community and to offer our students access to one of the world’s greatest minds in entrepreneurship and innovation. “We are also so thankful to the Ciocca Foundation for its philanthropic investment in our School and university,” Currall added. “Its support will help position our students for great success in their business careers.” C I O CC A S FO CUS O N T WO E S : E D U C AT I O N A N D E N T R E PR E N EU RS H I P
Arthur Ciocca is founder of Livermore, Calif.–based The Wine Group Inc., which he led to become the world’s third-largest wine producer. He is also co-founder of the Ciocca Charitable Foundation, which made the $500,000 commitment to UC Davis to create the visiting professor endowment—a first for the School. Ciocca said Schramm’s influence will help impact
to Teach Burn the Business Plan UC Davis’ ability to bring about change at a national and international level. Ciocca said he and his wife, Carlyse, made the gift to UC Davis to bring leading entrepreneurial minds, like Schramm, to the university because they believe in the management school’s mission to be a global leader of innovative and entrepreneurial education. Through their foundation, the Cioccas also have contributed
“I have come to believe that the prevailing view of how firms start, really a linear progression from idea to exit, doesn’t come close to serving as an accurate model of how the businesses I know and have studied go about getting themselves started.”
— Carl Schramm, inaugural holder of the Arthur and Carlyse Ciocca Visiting Professorship in Innovation and Entrepreneurship
$30,000 since 2010 to support MBA students attending the Ignite Conference, which returned to the UC Davis Child Family Institute for Innovation and Entrepreneurship in late February (see page 14). “I think Dean Currall is a wonderful role model for education, leadership and entrepreneurship. He is best able to leverage this opportunity to benefit the School and call attention to the wonderful work that is being done at UC Davis,” Ciocca said. “I thought that my gift would go the furthest here.” Ciocca, too, is excited about the choice of Schramm, whom he met through the Kauffman Foundation. “Carl is not just an ordinary professor. He’s somebody who’s been there, done it, taught it and lives it. He can bring real-world, practical experience to the classroom and in a way that is simple, understandable, practical and powerful for everyday use by students.” I N T E R N AT I O N A L LY ACC L A I M E D “E VA N G E L IS T O F E N T R E PR E N EU RS H I P ”
Schramm co-founded Startup America Partnership in conjunction with the Obama administration, chaired the U.S. Department of Commerce’s panel on measuring American innovation during
the Bush administration, and served as a consultant to several foreign governments. In 2005, he and Gordon Brown— then chancellor of the Exchequer and, later, prime minister of the United Kingdom—co-founded Global Entrepreneurship Week, which is now celebrated in 170 countries. Under Schramm’s leadership, the Kauffman Foundation became a global resource devoted to advancing entrepreneurship through innovative programs, grantee partnerships, policy research and advocacy. Additionally, Schramm implemented several programs designed to increase business formation among minority populations and advanced the foundation’s pioneering work to improve the transfer of intellectual property from universities to commercial application. Schramm also has created or co-founded five companies, one of which provided the statistical standards used to measure creditworthiness for a large segment of the public sector bond market. He also started the nation’s first academic center to study healthcare costs—while a faculty member at Johns Hopkins University—
and was an executive vice president at Fortis, one of the world’s largest insurance companies, where he devised the first college-to-career health insurance product. Schramm was recently named a University Professor at Syracuse University and writes for the George W. Bush Institute’s “Bush Center Blog.” His column, “Messy Capitalism” appears in Forbes magazine. His writing has been published in The Wall Street Journal, Foreign Affairs magazine, City Journal magazine and the Harvard Business Review. He has appeared many times on television as a guest of the PBS “Charlie Rose” program; CNBC’s “Street Signs” program with Brian Sullivan, and “Squawk Box” program with Joe Kernen; and Fox Business’ “After the Bell” program with David Asman and Liz Claman, and “The Willis Report” program with Gerri Willis. www.gsm.ucdavis.edu/schramm
U C D AV I S G RA D U ATE SCHOOL OF M ANAGEM ENT 9
Obstacles to Innovation MOVING BEYOND THE “RULE OF THUMB“ BY PRO FES S O R N I CO L E WO O L S E Y B I G GA RT
PRO FESSO R N ICO LE WO O L SEY BI G GART
studies organizational theory, management of innovation, and economic and organizational sociology. She is the Chevron Chair in Energy Efficiency and the director of the UC Davis Energy Efficiency Center. In this article, adapted from her blog, she draws on a recent collaboration with UC Davis sociologist Thomas Beamish to examine why some industries struggle to innovate their processes and adapt more efficient technologies.
hy is it so difficult for some industries to apply innovations and new technologies that will save money, produce more business and benefit society? Consider the commercial construction industry, which often bypasses green technology and processes even though they are available, affordable and increase energy efficiency. It’s an interesting public policy question because buildings are the largest users of energy, surpassing even vehicles. Making energy efficient buildings is critical to both national security and our climate.
But the commercial construction industry is ruled by “social heuristics,” a network of shortcuts, conventions and rules of thumb that bypass the need for step-by-step explanations and make it easy to follow an established model or template. There are conventions that shape financing, the selection of participants, which designs are considered possible and the range of “acceptable” technologies. In essence, all aspects of constructing a building are imbued with rules, methods and taken-for-granted assumptions that make it easier to complete the project—but that thwart innovation. Building skyscrapers, hospital or big box retail outlets is preconceived with particular elements in mind. If many of these elements or assumptions are altered, the project is deemed too risky and vulnerable to financial loss. It becomes much more difficult to finance a “green building” than a traditional, inefficient building that fits conventional ideas of a “normal” building.
Professor Nicole Woolsey Biggart, director of the UC Davis Energy Efficiency Center,
(right) briefs Congresswoman Doris Matsui (D-California) on a recent tour of the UC Davis West Village, the largest planned UC Davis Energy Efficiency Center
zero net energy community in the United States. West Village features many green building and energy efficiency technologies that the commercial construction industry has been slow to adopt.
10 W I N T E R 2013 I N N OVATO R
Do you work in an industry that’s slow in adopting new technologies? Do you find that you or your team make decisions based existing templates that determine the way you make decisions? What are some methods you’ve used to speed up the process of innovation? Share your experiences @ www.gsm.ucdavis.edu/blog-feature/ obstacles-innovation
And even if financing is approved, the building process itself becomes more difficult as subcontractors with little experience with novel technologies have to learn something new. Buildings are constructed by a group of subcontractors. The undertaking is possible because the architect, plumbers, electricians and carpenters rely on their knowledge and experience, and have preconceived notions of how they—and all the other players—fit into the project. They install plumbing, construct framing and add electrical wiring according to assumptions of best past practices that everyone can plug into without having to communicate directly with one another. Adding something new to the already complex building process raises the risk level. An innovative heating and ventilating system is intimidating: both financiers and subcontractors prefer to work within known parameters. The commercial construction industry is not alone in this conservative approach to completing projects. Industries from fashion design to manufacturing to movie making use this Network Production Organization model. Whether they are building a three-story parking garage or producing a romantic comedy, all parties have a good sense of what needs to be done because there’s an existing model or template. It’s efficient, but ultimately it doesn’t result in the best possible movies— or the most energy efficient buildings.
Jim Olson Helps Students Hone Their “Leadership DNA“ VETERAN SILICON VALLEY EXECUTIVE NAMED ROBERT A. FOX EXECUTIVE–IN–RESIDENCE BY T I M A K I N
cognitive characteristics—each of us
Negotiations, and Technology Management.
We bring our natural athletic and mental tendencies to the game, we learn the
is different in certain characteristics important to the leadership equation,”
He also advises start-ups at the UC Davis Engineering Translational Technology
fundamentals, we have mentors, we study the pros, and we apply it all on the court,
says Olson. “You can say we are born with some of these. And the rest are
Center, which he helped launch in 2010 to accelerate the commercialization of
looking to improve our performance. As this year’s Robert A. Fox Executive-
learned through our experiences.” Olson brings plenty of know-how,
innovative and promising engineering research. BestCollegesOnline.com
in-Residence, Olson has put the tennis analogy into play in his winter quarter
self-discovery and perspective to share with the 50 students in the class. His distinguished career spans more than
recently ranked the center among its “10 College Business Incubators We’re
40 years leading several high-technology businesses for two Fortune companies
In his course, Olson says one of his goals is to show students why some
in the Silicon Valley—Hewlett Packard and 3Com—and nearly a decade as
leaders succeed while others fail when faced with similar challenges, situations
CEO of SkyStream Networks, a leading global video technology provider.
and environments. These factors, he says, include our personality, emotional
or Jim Olson, leadership is a lot like tennis.
course, Game-Changing Leadership: One Size Fits One, to help MBA students better understand, develop and apply their “leadership DNA.” “Just as tennis players are born with things they can’t change—their grip size, length of their legs, and some important
An accomplished motivational speaker, author
intelligence, situational perseverance, values, views of ethical practices, views
and active angel investor, Olson founded WestShore
of the role and importance of teams, and reliance on our intuition.
Management Group in April 2007 to provide interim CEO, corporate consulting and executive development services for public and private venturefinanced companies. At the Graduate School of Management, Olson has taught courses on Teams and Technology,
“Students will sincerely examine their personal make-up, their values, what drives them, what they hold as fact vs. fiction, their perceived strengths and weaknesses— and then apply these to understanding their ‘leadership DNA.’ ”
— Jim Olson, Fox Executive-in-Residence and veteran Silicon Valley executive
Most Excited About.”
Olson is drawing from Jim Collins’ book, Great by Choice, guest speakers who will relate their leadership DNA discovery experiences, and case studies, including his own from leading SkyStream Networks. To better understand their perceived strengths and weaknesses, students will take the Myers-Briggs Type Indicator assessment, keep a private personal learning journal and put their leadership skills to the test in a team project. “The idea for the course is give students short cuts to discover what makes them unique and what they may not even know about their leadership ability,” Olson says. “I want them to maximize the value of their individuality by taking a deep look within themselves to know how to persevere when the chips are down and lead their organizations through the fire.” www.gsm.ucdavis.edu/eir
U C D AV I S G RA D U ATE SCHOOL O F M ANAGEM ENT 1 1
VinPerfect Twists High-tech Wine Screw Cap into Big Success ALUMNI TIM KELLER AND COLLIN CASPER OPEN PLANT IN NAPA VALLEY BY M A R I A N N E S KO C ZE K
Alumni Collin Casper MBA 08 (third from left) and Tim Keller MBA 08 celebrate the grand opening of VinPerfect’s new corporate office and production facility in Napa Valley last August. This year’s goals include growing sales to 12 million units—
vercoming a stigma synonymous with cheap, fortified wines like Thunderbird and Night Train, the screw cap has recently gained greater respect from higher-end vintners and wine drinkers as an acceptable alternative to cork. Enter Tim Keller MBA 08 and Collin Casper MBA 08, who are poised to send their own ripple through the global wine industry with a revolutionary, high-tech screw cap. Before pursuing an MBA, Keller earned his viticulture and enology degree from UC Davis and spent 12 years as a winemaker in Sonoma and Napa counties. Today he’s the co-founder and CEO of VinPerfect, maker of a patent-pending cap with a permeable liner that allow winemakers to let nano-amounts of oxygen into the wine bottle over time to guarantee optimal aging. “Achieving oxygen control with a screw cap signals the start of a new era
WebXtra Alumni Spotlight Online Q&A with Sam Saliba MBA 00 on his “Amazing Ride“ Innovating Search at Google www.gsm.ucdavis.edu/saliba
12 W I N T E R 2013 I N N OVATO R
for wine closures,” says Keller. “For the first time, winemakers have control over the quality of their wine after it goes into the bottle. There’s now no quality-based reason to choose anything else.” Traditional synthetic and bark corks allow in either too much or too little oxygen, Keller says, and cork can contaminate wine with a musty-smelling compound known as TCA that affects an estimated one in 20 bottles, ruining $10 billion in wine worldwide each year. Keller developed the cap’s prototype while at UC Davis, and won the $15,000 grand prize in the 2008 Big Bang! Business Plan Competition. The innovation was introduced to the industry at the 2011 Unified Wine & Grape Symposium. “Our GSM connections have been integral to our growth,” says Casper, Keller’s former classmate and VinPerfect’s co-founder and COO. “They’ve led to some of our biggest investors and best industry contacts.”
about $2 million in gross revenue—and expansion into the Pacific Northwest, Australia and New Zealand, and Europe.
G R A N D O PE N I N G I N N A PA VA L L E Y
Following careful R&D, VinPerfect began accepting orders in January 2012. Last summer it celebrated the opening of new corporate offices and a production facility in Napa Valley. A Series A-1 investment round brought in more than a half-million dollars, and VinPerfect recently sold its one-millionth cap. “Most important,” says Keller, “is that within our first year we earned customers who are returning with repeat orders.” This year’s goals include growing sales to 12 million units— about $2 million in gross revenue— and expansion into the Pacific Northwest, Australia and New Zealand, and Europe. Going forward, Keller says, VinPerfect will benefit as the industry’s perception of cork versus screw cap changes. “The industry will move as a whole,” he says. “The thought is the more liners we sell—the more people who talk about the experience they had with our different liners—you’re going to see those testimonials work through and there will be greater adoption.” That’s a business ready to be uncorked. www.vinperfect.com
A CRASH COURSE IN COMMERCIALIZATION BY M A R I A N N E S KO C ZE K
UC Davis is renowned for pioneering research in fields from biomedical engineering to medicine to the latest green technologies. But what if these innovations don’t exit the lab to truly make a difference?
Enter the Child Family Institute for Innovation and Entrepreneurship’s Business Development Certificate program. The
start-ups and team exercises, all designed to fast-track promising, technology-driven innovation. “Our fellows learn to recognize the potential
year-long immersion gives UC Davis graduate,
social and commercial impact of their research,”
doctoral and postdoctoral researchers a crash
explains Professor Andrew Hargadon, director of
course in commercialization, including classes
the institute. “And in the long run, we help them
with MBA students, networking events, visits to
to help others to do the same.”
Trouncing TB Every second, someone is infected with
he studies the role genes may play in an individual’s
tuberculosis, an often deadly disease caused by
susceptibility to TB. His work is funded in part by a
myco-bacteria that are spread via coughs and
prestigious National Institutes of Health award.
sneezes. Today’s potent, antibiotic-resistant forms
“Focusing on the molecular process of infectious
of TB have created public health crises in many
diseases in animal models has helped me develop
of the world’s large cities. In all, an estimated
a comprehensive understanding of how both
30 percent of people across the globe are infected.
humans and nonhuman primates’ immune systems
Business Development Fellow Morteza Roodgar may have a solution. Born in Tehran, Roodgar attended the School
respond to TB and other diseases,” Roodgar says. His goal: develop a better, more sensitive diagnostic test for TB that can be used by
of Veterinary Medicine in Shiraz, Iran, on a
physicians and veterinarians alike. That requires
scholarship, earning a doctor of veterinary
a successful technology transfer plan.
medicine and exploring a growing interest
The Business Development Fellows program
in both animal and human epidemiology.
provides a new perspective on his work. “Knowing
In August 2009 he entered the master of
the barriers to a truly innovative process will help
Meet all our 2012–2013 Business Development Fellows
preventive veterinary medicine program at
me overcome them, and help me avoid less fruitful
UC Davis. Today, as a Ph.D. candidate in the
science and focus on the discovery of even those
Graduate Group of Comparative Pathology,
applications that might not be obvious.”
Combatting Cancer Renee Ruhaak is driven to understand how the
based on this patent was released by British
human body works. And her research into how
bioscience company Ludger Ltd. last fall.
molecules function could result in lifesaving and life-enhancing new medical practices. She earned her undergraduate and master’s
Ruhaak’s research interests led her to UC Davis, where she has been a postdoctoral fellow in the Chemistry Department since November 2010.
degrees in analytical chemistry and her Ph.D.
Today she applies state-of-the art analytical
in medical sciences from her hometown Leiden
instrumentation to develop biomarkers for the
University in the Netherlands.
early detection of cancer, and to predict the
Her doctoral work with the Leiden Longevity
effectiveness of cancer treatments. Another line
Study explored why some people maintain health
of research explores the potential health benefits
academic finding and the Business Development
as they age while others suffer from diseases
of human milk during the early stages of life.
Fellows program will help me, as a scientist, to
and various ailments—and gave Ruhaak her first
“Many of the practices for business development
recognize future solutions that have commercial
experience in applied science. She patented one of
are helpful skills I can use to develop my research
potential, and which steps I need to take to most
her research methods, a nontoxic way of labeling
and eventually establish my own lab,” she says.
effectively bring these discoveries out of academic
oligosaccharides for analysis. The first product
“Both my earlier experience in commercializing an
labs and into the real world.” U C D AV I S G RA D U ATE SCHOOL O F M ANAGEM ENT 1 3
“A crash-course that opened so many doors to entrepreneurship.”
“The volume control knob on my excitement to create a start-up has just gone to a 11/10!”
2013 Ignite Conference “Intense three-day boot camp with more valuable information than a 10-week class.”
“Totally inspired me to start my own company.”
“A year’s worth of education in 72 hours!”
February 28– March 2
UC DAVIS GRADUATE SCHOOL OF MANAGEMENT
“Some amazing stories, people, and tips that it will take me a while to ‘digest’ them and process them.”
HOSTED BY THE CHILD FAMILY INSTITUTE FOR INNOVATION AND ENTREPRENEURSHIP
he Graduate School of Management partners with Rice University and Baylor College of Medicine on the 2013 Ignite Conference to give entrepreneurial MBA students the opportunity to meet some of the most successful and up-and-coming entrepreneurs in the Bay Area. The three-day immersion in entrepreneurship includes a field trip to Silicon Valley with visits to Tesla Motors, Google Ventures, Sequoia Capital, Kleiner Perkins Caufield & Byers, and Minted.com Students will hear the personal stories of entrepreneurs working to build their companies and learn from the successes (and failures) of the best and brightest that the Bay Area has to offer.
“The most inspiring and informative event to date in my MBA program.”
“Heavy dose of real-world entrepreneurship.”
Humphrey Fellows to Gain Entrepreneurial Edge NEW INTERNATIONAL INNOVATION AND ENTREPRENEURSHIP ACADEMY BY M A R I A N N E S KO C ZE K
UC DAVIS will host more than 40 Humphrey Fellows from around the world at the inaugural International Innovation and Entrepreneurship Academy in March, presented by the Child Family Institute for Innovation and Entrepreneurship. The academy represents UC Davis’ expanded involvement in the Hubert H. Humphrey Fellowship Program. Each year the program brings about 200 mid-career professionals from five continents to 18 host universities across the U.S. for a year of nondegree graduate study, leadership development and professional collaboration.
14 W I N T E R 2013 I N N OVATO R
Funded by the U.S. Department of State, the pro- gram has hosted almost 4,300 fellows representing nearly 160 countries since its founding in 1978. UC Davis first participated in 1986, and welcomes Fellows with expertise in natural resources, environmental policy, climate change, agricultural and rural development, and environmental science. The academy is one of just five Enhancement Workshops specially developed for the Humphrey Program. Academy highlights include presentations by Professor Andrew Hargadon, the institute’s founder and director, as well as venture capitalists and veteran entrepreneurs. The Fellows will visit
start-ups and tour the UC Davis Robert Mondavi Institute, the world’s most environmentally sophisticated facility for making wine, brewing beer and processing foods. “Academy participants will gain the necessary tools and insights to move forward with a venture, whether it is an idea for improving social well-being or development of a technical or novel solution to a problem,” says Gwynn Benner, assistant director of the UC Davis Humphrey Fellowship Program. “The academy will help guide them in making a big difference once they return home.” http://humphrey.ucdavis.edu
Buy or Rent in Northern California? UC DAVIS MBA S ADVISE TO INVEST IN HOMEOWNERSHIP BY A S S O C I AT E P RO FE S S O R A N N A S C H E R B I N A
E D I TO R ’S N OT E : It’s easy to crunch a few numbers and figure that buying a home in most markets is cheaper than renting, but there several factors many people don’t take into account. In her course on Evaluation of Financial Information last spring, Associate Professor Anna Scherbina sent Bay Area MBA students out to do a buy-vs.-rent analysis. National Public Radio’s Sacramento affiliate interviewed Scherbina and student James Jennings about their findings. This is an excerpt from Scherbina’s blog about the students’ experience.
asked students to devise a detailed single-family home with a large backyard valuation model to answer the question: and a spectacular view of Mt. Diablo. Would you buy or rent a home in today’s Next, students sought a mortgage market? The assignment required making contract, some enlisting the help of a fairly realistic assumption they would mortgage specialists. Those with a higher live there for either 10 or 20 years before debt burden—partly due to large selling it and moving away, with each outstanding student loans, which would outcome being equally likely. make a standard down payment of Students quickly combed through 20 percent unaffordable—and those real estate listings and fanned out to with lower FICO scores would be paying open houses to find properties they higher mortgages rates. would consider buying. One student They also estimated costs of buying already owned a condo and considered and home ownership: closing costs, repair an alternative scenario of having rented and maintenance, insurance, broker his condo instead. Another student commissions and possible capital gains analyzed the property he had recently taxes. Future expenses and rents on nearly purchased. comparable properYet another student ties were adjusted for liked two different the current inflaListen to Associate Professor Scherbina lofts and performed tion expectations. and student James Jennings discuss the buy-versus-rent Students the findings on Capital Public Radio’s analysis for each. accounted for the “Insight” program Students chose risk associated with www.gsm.ucdavis.edu/scherbina-radio properties in cities the uncertain sale throughout northern price of the property California, including Novato, Santa Clara, by using an appropriately higher discount San Carlos, Oakland, Dublin, Lafayette, rate for the expected proceeds of the sale Livermore, Capitola, El Sobrante, than for the interim cash flows. They also Petaluma, West Sacramento, Sacramento, figured in their expected tax savings of Mill Valley, Berkeley and Fremont. home ownership using their personal tax Listing prices ranged from $249,000 for rates and the estimated interest payments. a one-bedroom condo to $798,000 for a Finally, it was important to account for
the opportunity cost of capital invested in the down payment on a house since this capital could be earning an investment interest if the property is rented instead of bought. The conclusions were striking. Only three students found that renting is cheaper than buying. One of them commented that he would nevertheless advise to buy in the Bay Area since he expected that the economy would continue to improve, increasing the demand for housing, which given the constraints on new construction would lead to a rapid price growth. Very prophetic as year-over-year asking prices have increased 16.1 percent in San Jose and 11.9 percent in San Francisco. Among the students who chose other locations, one wrote: “I was surprised that owning would provide significant savings,” and another commented that the rental prices were “much too high!” Several attributed the benefit of buying to the historically low mortgage rates. One student wrote that she felt too risk averse to consider buying a home in light of the highly uncertain sale price. This is a big shift in attitudes toward home ownership relative to the widespread belief of the late 1990s and early 2000s that house prices never fall. U C D AV I S G RA D U ATE SCHOOL O F M ANAGEM ENT 1 5
FACULTY NEWS & RESEARCH
Nicole Biggart Honored as AAAS Fellow
rofessor Nicole Biggart has been named a newly elected fellow of the American Association for the Advancement of Science (AAAS). Each year the AAAS Council elects members whose “efforts on behalf of the advancement of science or its applications are scientifically or socially distinguished.” The new fellows were formally recognized February 16 during the association’s annual meeting in Boston. Established in 1848, AAAS is the world’s largest general scientific society with a mission to “advance science and serve society” through initiatives in science policy, international programs and science education. Biggart was recognized for her pioneering research and expertise in economic sociology, organizational behavior and management of innovation. She has studied a wide array of business sectors from the auto industries of South Korea, Taiwan, Spain and Argentina to the commercial construction industry in the U.S.
A frequent presenter at academic and industry conferences around the world, Biggart most recently lectured in September on “Communities of the Future,” highlighting the social and engineering challenges of global urbanization at the UC Davis School of Engineering’s 50th anniversary conference on Sustainable Development for the 21st Century: The Role of the Modern University. Later in September, Biggart served on panel with leading financiers and industry entrepreneurs who addressed smart grid energy infrastructure at the Bay Area Council’s Symposium on U.S.-China Smart City Collaboration at Marvell Electronics in Santa Clara. Biggart then moderated a panel on new developments and opportunities in energy efficiency at the annual conference of the Council
PROFESSOR NICOLE BIGGART
Chevron Chair in Energy Efficiency Director, UC Davis Energy Efficiency Center
of Energy Research and Education Leaders at UC Berkeley in October. Biggart presented her paper, “Logics under Construction: Social Ideals, Residential Design And Energy Consumption,” at an international conference on economic sociology at the National Research University ‘Higher School of Economics’ in Moscow, Russia. She then attended the November advisory board meeting at the Max Planck Institute for the Study of Society in Cologne, Germany, and gave a keynote speech on stakeholders in smart cities at MINES ParisTech’s Debating Responsible Innovation in Built-in Renewable Energies and Architecture. www.gsm.ucdavis.edu/biggart
Uncovering Hidden Costs of Mutual Fund Investing
Funds’ average he expense ratio is one of the few reliable annual expenditures predictors of mutual fund return performance, on trading costs and the increasing market share of low-cost (i.e., aggregate trading index and exchange-traded funds suggests that cost) were 1.44 percent investors use this information when making compared to their investment decisions. expense ratio of 1.19 However, as noted by Vanguard founder percent. And there was considerably more variaJohn Bogle and other prominent industry tion in fund trading costs than in expense ratios. observers, the expense ratio captures only the Their study, “Shedding Light on ‘Invisible’ Costs: “visible” (i.e., reported) costs of mutual funds. Trading Costs and Mutual Fund Performance,” Funds incur a host of “invisible” costs that are was published in the January/February 2013 issue less transparent to investors—most notably, the of the Financial Analysts Journal. transaction costs associated with implementing “We found a strong negative relation between changes in portfolio positions. aggregate trading cost and fund return perforAnalyzing portfolio holdings and transaction mance, providing a powerful predictor of relative data for nearly 1,800 equity funds from 1995–2006, performance” Edelen says. “Given the power Associate Professor Roger Edelen and his of aggregate trading co-researchers from the cost in predicting fund University of Virginia and “We found a strong negative performance, it would Virginia Tech found that these relation between aggregate trading be a useful tool for invisible costs are quite high— cost and fund return performance, investment decision even higher than the expense providing a powerful predictor of makers—particularly ratio on average. Moreover, relative performance.” in avoiding poor they have a significant neg- performers.” ative impact on performance. 16 W I N T E R 2013 I N N OVATO R
ASSOCIATE PROFESSOR ROGER EDELEN
However, direct estimates of trading costs for funds are hard to come by and difficult to quantify, says Edelen. The most widely used proxy is fund turnover, but Edelen points out that this does not take into account the differential cost of fund trades, which depends on both trade size and the liquidity of stocks traded (i.e., small cap versus large cap). Instead, Edelen and his co-authors offer a feasible, yet powerful alternative for researchers and investors. This “position-adjusted turnover” measure is computed by multiplying each fund’s turnover by its relative position size. A fund’s relative position size is equal to its average position size (total net assets divided by number of holdings) scaled by the average position size of all funds in the same investment category. “Relative position size identifies funds that are ‘relatively’ big compared to the markets that they trade in, and thereby captures the price impact of the fund’s trades—how much they move prices when they trade. This is the greatest component of a fund’s trading costs,” Edelen says. www.gsm.ucdavis.edu/edelen
FACULTY NEWS & RESEARCH
Wine Industry on Upswing Despite Grape and Labor Shortages
espite a significant, long-term shortage of grapes and economic pressures that are putting the squeeze on profit margins, California wine industry leaders are cautiously optimistic about the future, according to two new surveys conducted by Professor Emeritus Robert Smiley. He presented the findings of his surveys of 24 wine executives and 138 winemakers in September during the Wine Industry Financial Symposium in Napa, Calif. “Industry leaders agree that while the somewhat giddy wine-buying days of 2006 and 2007 are not likely to return in the near future, there remains a strong and growing consumer base for California wines,” Smiley said.
“These consumers are savvy, value-conscious wine drinkers who have weathered the economic downturn and perhaps have ‘reset’ their wine preferences at lower prices,” he said. “Industry executives realize that they are going to have to earn their business by offering affordable quality and customer service.” Smiley has surveyed wine executives for each of the last 11 years and winemakers for 21 years. The influential surveys examine global and national trends in the wine industry. They complement other wine research and teaching at UC Davis, home for more than 100 years to the largest and most comprehensive university wine program in the United States. This fall’s harvest of California wine grape appears to be strong, but it will not make up for several years of shortfall, Smiley said. Most of the survey participants noted that they are dealing with a grape shortage resulting from a growth in
PROFESSOR EMERITUS ROBERT SMILEY
Director, Wine Industry Studies
demand for wine that has not been matched by establishment of new vineyards or replanting of aging vines. As wine-grape prices and other operating costs—including labor—climb, wine producers are being hit from the other side by wine prices that remain stagnant. To survive this economic squeeze, they are boosting wine prices when the market will bear an increase, reducing costs, fine-tuning efficiencies and strengthening their relationships with wine-grape growers. The wine professionals noted that in the past two years, there has been a new emphasis among wine consumers on value, new varietals, new tastes and “affordable luxury.” Social media is also having a large impact on purchasing decisions. They expect to see the strongest growth in sales among wines in the $10 – $14 and $14 –$20 price ranges. www.gsm.ucdavis.edu/smiley
Can Data Mining Lead to Better Results in the Classroom?
an using common accounting practices, like gathering data and using performance metrics, result in improved student performance? Professor Shannon Anderson is exploring this question as part of a research project examining the use of a data portal tool created by Aspire Public Schools. The system, known as Schoolzilla, collects raw data from a school’s source systems— including the California State Test and benchmark assessments—and makes it readily available to teachers and administrators in the form of charts, graphs and textual information. The idea is to empower teachers to immediately identify which students are doing well, which are struggling, and to adjust their teaching strategies. The data also will make it possible to evaluate individual or groups of students over the long term. “Schools have always had this data, but it’s been difficult to access for teachers,” Anderson said. “This is decentralizing the data. Teachers and school leaders are now able to pinpoint and drill down with the data.”
Her research examines the data thorough a management lens, trying to determine the long-term effectiveness of using the software. She is analyzing the impact of two years of use of the tool in 27 Aspire schools for about 4,500 California students in grades three through eight. “We’re testing whether teachers who make the greatest use of these tools are able to produce improved results in their students,” she said. Anderson spoke about the use of accounting practices in education at CPA Australia’s Annual Congress in Sydney in October. She gave the Bill Birkett Memorial Lecture, the only academic lecture given at the event, which is Australia’s largest gathering of certified public accountants. Anderson was also recently invited to join the advisory panel for the Chartered Institute of
PROFESSOR SHANNON ANDERSON
Management Accountants, the world’s largest organization of management accountants, with members in 176 countries. Anderson has been asked to participate in a project to develop a series of management accounting principles that will help businesses define best practice in management accounting and demonstrate these principles through case studies. In August, Anderson’s publication, “An Empirical Examination of Goals and Performance-to-Goal Following the Introduction of an Incentive Bonus Plan with Participative Goal Setting,” received the Notable Contribution to the 2012 Management Accounting Literature award for the Management Accounting Section of the American Accounting Association. www.gsm.ucdavis.edu/anderson
U C D AV I S G RA D U ATE SCHOOL O F M ANAGEM ENT 1 7
FACULTY NEWS & RESEARCH
Sowing the Seeds of Economic Growth
resident Obama has called on both the public and the private sectors to dramatically increase the prevalence and success of entrepreneurs across the country. The White House initiative, Startup America, was launched to celebrate, inspire and accelerate high-growth entrepreneurship. The initiative seeks to speed innovative product development, spur the formation of start-ups and create small businesses by supporting Proof of Concept Centers at universities and research consortiums, which are helping to jumpstart the production of emerging technologies and revolutionize manufacturing processes. In September, UC Davis was one of six institutions nationwide, and the only one in California, to receive a $1 million award in the U.S. Department of Commerce’s Economic Development Administration’s 2012 i6 Challenge Grant competition to create these test beds. Dean Steven C. Currall is principal investigator on the grant, which has established the Sustainable AgTech Innovation Center at UC Davis (see page 6). In October, Currall was invited to Washington, D.C., for a series of forums, meetings and presentations
that focused on the triple helix of universityindustry-government networks that act as engines of innovation and regional and national economic growth. At the U.S. Department of Commerce, Currall met with Acting Secretary of Commerce Dr. Rebecca Blank. He then attended The Innovative and Entrepreneurial University: Higher Education, Innovation and Entrepreneurship in Focus, part of an ongoing effort by leaders of U.S. colleges and universities to foster a climate that promotes student and faculty innovation and entrepreneurship, actively supports university technology transfer, facilitates university-industry collaboration, and engages regional and local economic development efforts. Then it was on to the White House Business Council Meeting, followed by the American Economic Competitiveness Forum on University Innovation and Entrepreneurship at the White House South Court Auditorium.
DEAN STEVEN C. CURR ALL
Professor of Management
At the White House Conference Center the next day, Currall attended the i6 Challenge Winners Conference, where he presented on the goals of the Sustainable AgTech Innovation Center, which leverages UC Davis’ global research leadership in agriculture, clean technology and sustainability. His talk, “Commercializing New Discoveries in Environmentally Sustainable Food/Agricultural Research,” outlined how the center, a partnership with the Sacramento Area Regional Technology Alliance, will provide the resources to accelerate entrepreneurial thinking among agricultural researchers and businesses, and develop a network of experts and financiers to support entrepreneurs and new ventures. The result, Currall says, will be greater job creation, new businesses, diversification of the regional economy, increased competitiveness of the region’s agriculture cluster, and improved environment stewardship, including the reduction of greenhouse gas emissions. www.gsm.ucdavis.edu/currall
New Tool to Measure Consumer Demand
sell a limited assort- ndia’s rapidly expanding middle class and steady ment of goods in small increase in household disposable income has quantities and also offer attracted the interest of multinational retailers like consumers credit and IKEA, Apple, WalMart and Tesco. But estimating home delivery services. consumer demand has been challenging, says These stores, which Professor Prasad Naik, and the standard methods do not use bar code being used have proved unreliable. scanning technology to track inventory or sales, In a paper presented at the Marketing Science make up 93 percent of the Indian retail universe. Emerging Markets Conference, held at the Wharton Brand managers have traditionally estimated School in September, Naik outlined how he and consumer demand using either data gathered by co-authors Shrihari Sridhar, of the Smeal College market research companies that survey a sample of Business, and Ajay Kelkar, co-founder and COO of shops nationwide, or internal sales-force reports of Hansa Cequity of Mumbai, developed a method that measure the quantity of a product bought to accurately estimate consumer demand in India. by retailers from wholesalers, or a combination They then tested and validated their technique of both methods. These metrics—known as using real sales and advertising data for retail offtakes and a major Indian brand of hair secondary sales—are care products. “Overconfidence in the quality of hampered by bias and India is dominated by metrics leads to overspending noise leading to unrelismall, mom-and-pop stores on marketing activities.” able data, Naik says. known as kirana shops that
18 W I N T E R 2013 I N N OVATO R
PROFESSOR PR ASAD NAIK
More importantly, managers tend to ignore this unreliability, making poor assessments of the effectiveness of advertising and promotions. That leads to inaccurate decisions on how much to spend on marketing and how to allocate the budget across various activities. “Overconfidence in the quality of metrics leads to overspending on marketing activities,” Naik says. “If managers act as if their data are not noisy and do not filter measurement noise, they tend to spend more marketing dollars than are justified.” Naik says his new method allows managers to filter the noise, accurately estimate true consumer demand and reduce potentially wasteful spending. He and his co-authors plan to continue their research by generalizing their findings across other regions and investigating how the technique can help managers in their budgeting and allocating decisions. www.gsm.ucdavis.edu/naik
FACULTY NEWS & RESEARCH
Long Fuse, Big Bang of Innovation
tions for managing
PROFESSOR ANDREW HARGADON
ogy have never been louder, and yet the demand
innovation in science
Charles J. Soderquist Chair in Entrepreneurship
for innovation is made more challenging by public
and technology today.
Faculty Director, Child Family Institute for Innovation and Entrepreneurship
alls for breakthroughs in science and technol-
and political misconceptions surrounding where, when and how it happens. Professor Andrew
T E D x SAC R A M E N TO :
Hargadon uses historical research to advance
R x FOR INNOVATION
the understanding of the innovation process.
New, radical, disruptive
In October, Hargadon was invited to the Lawrence
ideas are the foundation of innovation—at least
backstage to reveal what works, what doesn’t,
Berkeley National Laboratory Environmental
that’s the common assumption. But what if that’s
and why, in the pursuit of sustaining innovations.
Energy Technologies Division’s Distinguished
wrong? If it’s not the new ideas, what distinguishes
Hargadon has commented on GMO-based foods;
Lecture Series, where he shared his insights
those individuals and companies that change the
innovating in brownfield versus greenfield markets;
with researchers involved in eco-friendly energy
world from those that don’t? Hargadon tackled this
the risk, uncertainty and challenge of sustainable
technologies. In his talk, “Long Fuse, Big Bang:
question in a TEDx Sacramento talk in December.
innovation; and electric vehicles and iPhones.
Thomas Edison, Electricity, and the Locus of
Looking at the most radical and disruptive idea in
stories behind innovations big and small, going
Hargadon was among four “University Players” honored in November as AlwaysOn Power Players
Innovation,” Hargadon, who is the founding
modern medicine—the advent of penicillin—
director of the UC Davis Energy Efficiency
Hargadon offered another perspective on what makes
in Greentech. AlwaysOn described its first annual
Center, explained the social and technical
innovation work, and what we can do about it.
top 100 list as “the champions of entrepreneurship
context in which
who are helping the Global Silicon Valley dominate
electric light, and the
T H E H A RGA D O N FI L ES
modern electric power
Since May, Hargadon has partnered with
infrastructure, were born and its implica-
Capital Public Radio, Sacramento’s NPR affiliate,
to feature his blogs. His posts look at the hidden
today’s green technology marketplace.”
View Hargadon’s video and read his blog posts www.gsm.ucdavis.edu/hargadon
CalCPA’s Outstanding Accounting Educator Award
rofessor Robert Yetman was named one of
He is an expert in
PROFESSOR ROBERT YETM AN
2012’s Outstanding Accounting Educators by the
corporate tax, financial
California Society of Certified Public Accountants.
Yetman was presented with a plaque and a cash
tax, United States and
for determining the State of California’s CPA
award during a ceremony at the CalCPA council
ethics educational requirements.
meeting in Napa in June.
accounting, and nonprofit
The 40,000-member CalCPA is the nation’s largest state accounting organization and the
accounting and tax issues. Yetman’s research has been published
Yetman has spearheaded the Graduate School of Management’s new Master of Professional Accountancy program, which began in the fall.
extensively in top accounting journals, and he
It’s the first University of California master’s
serves as associate editor of Accounting Horizons,
degree in accounting that meets a new state
Accounting Education Committee, which reviews
on the editorial board of The Accounting Review,
requirement of an additional year of post-secondary education before a candidate can become a CPA.
largest CPA association in California. Two recipients were selected by CalCPA’s nominations. The criteria include demonstrated
and is a reviewer for 10 accounting and tax
excellence in teaching, mentoring and educational
journals. He also consults for the California State
innovation; published academic or professional
Teachers Retirement System (CalSTRS), the nation’s
Professor Michelle Yetman, “The Effects of
articles or books for accounting classes; and
second largest public pension fund. Based on his
Governance on the Accuracy of Charitable
significant involvement in professional or
scholarship and teaching, Yetman was promoted
Expenses Reported by Nonprofit Organizations,”
to full professor on July 1.
was published in the September issue of
Yetman, who joined the Graduate School of
University of California President Mark
Management in 2003, is a six-time recipient of
Yudof appointed Yetman to the California Ethics
the School’s Professor of the Year teaching award.
Curriculum Committee, a committee responsible
His latest research, co-authored with Associate
Contemporary Accounting Research. www.gsm.ucdavis.edu/ryetman
U C D AV I S G RA D U ATE SCHOOL O F M ANAGEM ENT 1 9
FACULTY NEWS & RESEARCH
UC Davis and CalPERS Partner to Study Impact of Sustainability Factors on Investments BY K A R E N N I KOS A N D T I M A K I N
he Graduate School of Management is partnering with the California Public Employees’ Retirement System (CalPERS), the largest public pension fund in the U.S., on the Sustainable Investment Research Initiative (SIRI). The goal: to drive innovative thought leadership that will inform and advance CalPERS’ understanding of sustainability factors and the impact they have on financial performance. The initiative launched in January
with a global call for working papers from scholars and investment practitioners in the fields of finance, economics, accounting, law and business. The papers will contribute to a debate and discussion on the impact of environmental, social and governance (ESG) issues on long-term value creation and capital market stability. The Graduate School of Management will collect and review the papers. Authors of the most distinguished papers will be invited to present their research at the inaugural Sustainability & Finance Symposium, to be hosted by UC Davis on June 7. Columbia Law School’s Millstein Center for Global Markets and Corporate Ownership will assist with the call for papers. Finance Professor Brad Barber, director of the UC Davis Center for Investor Welfare and Corporate Responsibility, will co-chair the peer review of the papers for the symposium. “We look forward to working with CalPERS on this path-breaking research to provide an independent analysis to better understand the potential impact of ESG issues on capital markets, companies and intermediaries in the investment chain,” said Dean Steven C. Currall. “This project is both theoretical and practical.”
20 W I N T E R 2013 I N N OVATO R
Headquartered in Sacramento, Calif., CalPERS’ assets total about $251 billion. It administers retirement benefits for more than 1.6 million California state, local government and public school employees, retirees, and their families on behalf of more than 3,000 public employers, and health benefits for more than 1.3 million enrollees. “CalPERS has made it a priority to use sustainability factors in making investment decisions across our fund,” said Anne Simpson, CalPERS senior portfolio manager and director of global governance. “This initiative will aid us in our application, and help us draw conclusions that can inform our investment strategy and beliefs.” In current scholarship and in the investment world, there is a lack of global consensus on how ESG factors influence investment risk and return
across asset classes. ESG issues cover many topics, ranging from climate change, labor practices and human rights, to executive compensation. In 2011, the CalPERS board approved integrating ESG issues as a strategic priority across its investment portfolio. It is grounded in the three forms of economic capital—financial, human and physical—that are needed for longterm value creation, according to the pension fund’s 2012 report, “Towards Sustainable Investment.” SIRI will provide independent evaluation and insight for CalPERS sustainability strategy, as well as contribute to the larger debate. For more information on SIRI and the Sustainability & Finance Symposium at UC Davis: www.gsm.ucdavis.edu/CalPERS-Symposium
FACULTY NEWS & RESEARCH
Tug-of-War Economics of Product Bundling
rom computer software to fast food meals to vacation packages, the practice of bundling— offering two or more products or services together as a combined product—has worked very well for companies to give customers a simple, discounted option. In researching the practice, Professor Hemant Bhargava distinguishes between bundles of goods made by the same firm and bundles created by retailers that combine products from multiple companies. While the single-firm bundling strategy is highly profitable, retailers face severe challenges when bundling, which can lead to lower profits for both the retailer and manufacturers. “The culprit is a combination of horizontal channel conflict (each manufacturer wants a higher share of profits from bundle sales) and vertical conflict (incentive misalignment with respect to bundle versus component
sales),” Bhargava said. These weaken the case for bundling. Bhargava highlights carriage fees in the television industry, where a distributor such as Dish Network or Comcast bundles channels from multiple producers such as Disney, ESPN or Food Network. Clashes over these fees have led in recent years to blackouts of favorite shows and millions of disgruntled customers. “The dispute gets so intense that the content producer ultimately holds the retailer hostage,” Bhargava said. Bhargava’s research, “Retailer-Driven Product Bundling in a Distribution Channel,” was published in Marketing Science (November/December 2012). Bhargava suggests that these conflicts will motivate companies to integrate vertically by
PROFESSOR HEM ANT BHARGAVA
Associate Dean for Instructional Programs Jerome J. and Elsie Suran Chair in Technology Management
moving up or down the value chain. He suggests that firms need to become their own producers— for example, Comcast acquired NBC, and Amazon now offers movies through Amazon Studios. In further research on product bundling, Bhargava tackles the previously intractable mixed bundle pricing problem—how to optimally price a product line with two goods and a bundle of the two goods. The result is a mathematical equation outlined in, “Mixed Bundling of Two IndependentlyValued Goods.” His paper has been accepted for publication in Management Science. www.gsm.ucdavis.edu/bhargava
Socially Responsible Corporations with Heavy PAC Contributors Associated with Higher Stock Returns
ompanies, labor unions and other organizations spend billions each year to lobby Congress and federal agencies, often resulting in business- and tax-friendly decisions. But what about company managers who give as individuals to efforts to influence policy or elections? In a new study, Professor Paul Griffin found that public companies that tout social responsibility and whose managers contribute to political action committees tend to provide higher returns to shareholders. “Especially for smaller public companies, if the firm has been active in disclosing corporate social responsibility measures and if the individuals in the company are politically active, there’s a good chance you will do better in the stock market if you invest in that company,” says Griffin. Griffin and co-author Yuan Sun, a doctoral candidate at UC Berkeley’s Haas School, analyzed extensive data on voluntary corporate social responsibility disclosures, campaign contributions and stock performance. Their paper, “Strange
Bedfellows? Voluntary CSR Disclosure and Politics,” will be published in the journal Accounting & Finance. They found that companies were more likely to make social responsibility disclosures if they were headquartered in a “blue state,” or one that traditionally has voted Democratic. “We hypothesized that if a state where a corporation is located is blue, on balance, the customers, the suppliers, and even the shareholders have that same tendency to be blue,” Griffin says. Griffin and Sun determined that companies that issue more press releases on CSRwire, an online news service that publishes reports issued by member organizations on issues related to sustainability and CSR, tend to have more management employees who contribute to political action committees. The correlation was strongest with individuals who donated
PROFESSOR PAUL GRIFFIN
Associate Dean for Academic Affairs
to political action committees affiliated with the Democratic Party. Additionally, the stock market reacted favorably when corporations posted news releases on CSRwire. The market effect intensified if managers also made contributions to political action committees. “The effects on stock values of CSRwire releases are immediate and can continue for up to three months after the disclosure,” Griffin says. He cautions that while the correlations are strong, researchers need to look more closely at the underlying pathways whereby CSR disclosure and political contributions combine to produce shareholder gains. Griffin was recently named a Fellow of the New Zealand Institute of Chartered Accountants, which honored him for distinction, excellence and service to the accountancy profession in New Zealand. www.gsm.ucdavis.edu/griffin U C D AV I S G RA D U ATE SCHOOL O F M ANAGEM ENT 2 1
FACULTY NEWS & RESEARCH
SWAT Teams and Film Crews Models for Managing Crisis Episodes
ong before SWAT officers burst into a building to rescue hostages or arrest an armed suspect, the team has practiced similar types of assaults over and over to fine tune routines to handle such crises. Similarly, film crews must work through unexpected events to get the job of movie making done right. At the annual meeting of the Academy of Management in Boston, Associate Professor Beth Bechky and her co-author Professor Gerardo Okhuysen from UC Irvine shared what they have learn from SWAT teams and film production crews about how organizations respond to surprises. In their research, they found that film productions have broad routines that are used in normal situations (such as “over-communication”)
while SWAT teams have narrow routines that they practice a lot (like “dynamic” vs. “stealth” entries into buildings). These work better in different forms of crisis, Bechky says. For example, film productions have time to respond when situations turn hot so they can communicate a lot; SWAT teams have to act instantaneously so changing narrow routines are more effective. “We speculate that the differences in the two sets of actions also means that SWAT teams are more effective in crises that are more familiar while film productions deal better with novel surprises,” Bechky says.
ASSOCIATE PROFESSOR BETH BECHKY
Her research adds to the literature on routines by pointing out the variation in routines and how they might be more or less effective given the organization. Bechky says companies and managers should take note. “Being prepared for surprises and responding effectively to them requires practices that enable marshaling the expertise in the organization during times of crisis, as well as providing ways for people to easily work together in the moment.” At the Academy of Management meeting, Bechky was honored with an award from Organization Science for extraordinary service during her five-year tenure as senior editor from 2007–2011. www.gsm.ucdavis.edu/bechky
RECENT FACULT Y CONFERENCES HOUSEHOLD FINANCE CONFERENCE OCTOBER 2012 The third annual conference hosted by the School’s finance group focused on household finance. Organ- ized by Professor Victor Stango, the invitation-only forum brought together top researchers to present their latest insights on consumer finances in the wake of the global financial crisis and recession. Speakers from the University of Chicago, Harvard Business School, the University of Wisconsin and the Federal Reserve Bank shared research ranging from the impact of employees choosing the default percentage on retirement fund contributions to the rising consumption among increasingly richer households inducing the non-rich to consume more. Other topics included the causes of the foreclosure crisis (borrowers and investors made decisions that were rational and logical based on overly optimistic beliefs about house prices) and the causes and consequences of home equity extraction during the recent housing boom and bust. www.gsm.ucdavis.edu/household-finance
2 2 W I N T E R 2013 I N N OVATO R
DAVIS QUALITATIVE METHODS WORKSHOP JULY 2012 Hosted by Professor Andrew Hargadon, Professor Kimberly Elsbach and Associate Professor Beth Bechky, this intensive workshop offered participants a conceptual and practical understanding of qualitative research methods. Drawing on their combined expertise, Hargadon, Elsbach and Bechky led three days of sessions and fieldwork on how and when to use qualitative data collection and analysis techniques, as well as how to craft a contribution to the field. The workshop research project was no class exercise. Twenty-five faculty members and Ph.D. students from international and U.S. universities and business schools studied the UC Davis Summer Orientation for Incoming Freshmen. The project evaluated the orientation leaders, upperclass students who guide incoming students through the orientation process. http://qualitativemethodsworkshop. ucdavis.edu/methods.php
MIXED INTEGER PROGRAMMING WORKSHOP JULY 2012 Jointly sponsored by the Graduate School of Management and the UC Davis Math Department, the 2012 Mixed Integer Programming workshop was the ninth in a series of annual workshops held in North America to bring the integer programming community together to discuss recent developments in the field. The methods are heavily used in practice for solving problems in transportation and manufacturing, including airline crew scheduling, vehicle routing and production planning. The workshop gives junior researchers—more than 20 from around the world—the opportunity to present their most recent work. Sponsors included the Office of Naval Research, Exxon Mobil Research and Engineering, GAMS, SAS, IBM, Gurobi Optimization, the National Science Foundation, FICO, and Lindo Systems Inc. Professor David Woodruff attended the workshop. www.math.ucdavis.edu/mip2012
Alumnus Craig Cummins Invests in Global Sustainability BY J OA N N A CO R M A N
raig Cummins’ father started a chain of successful optometry stores in New Jersey in the late 1970s. He sold them and remained with the company, but the new owner sold them to a private equity company, which eventually sold them again. As a teen, Cummins watched these changes and learned early on about the role of private equity in business and in society. He followed a very different passion in college, earning first a bachelor in science in biomedical engineering from Rensselaer Polytechnic Institute (Troy, N.Y.) and then, in 2004, a master’s in this subject at UC Davis. But private equity continued to intrigue him, and Cummins was drawn to the world of business. He applied to the Graduate School of Management while completing his graduate engineering degree and in 2005 earned his MBA through the concurrent MS/MBA program. As a business student, Cummins jumped at the rare opportunity to intern in the private equity office of the Sacramento-based California State Teachers’ Retirement System (CalSTRS), the nation’s second largest public pension fund. He joined CalSTRS after graduation, evaluating a variety of domestic and international buyout, expansion and venture capital partnerships. Today, he’s a senior associate for private equity at SAM (Sustainable Asset Management) in Zurich, Switzerland. In 2006, Cummins joined the sustainable private equity group at Robeco, a market-leading European asset manager in the Netherlands. Soon after, Robeco acquired and then shifted its sustainable private equity activities to SAM, where Cummins has
“There’s only a finite amount of supply and too much demand.”
worked since 2009. SAM had $11.4 billion under management as of December 2011. SAM’s private equity team focuses on clean technology, sustainability and resource efficiency. “There’s only a finite amount of supply and too much demand,” Cummins says, especially in high-growth countries such as China, India and Brazil. Increased disposable income means a higher demand for material goods such as smart phones and high-protein foods, which are natural resource hogs in their production. The private equity team’s clients are mostly institutional investors such as pension funds, insurance companies and banks in the U.S., Europe and Asia. SAM also invests in new funds that target 10 to 20 companies in a specific geographic region. As a secondary
investor, SAM buys limited partnership stakes in already established funds. Cummins’ career puts both his degrees to work. His engineering training helps him better manage projects and investments and understand different markets and technologies. There’s a personal side, too: his concern for the environment. “At some point, we’re going to run out or destroy it all,” he says. Outside work, Cummins flexes his Aggie pride as an ambassador for his alma mater, working with a half-dozen other alumni to establish a UC Davis European Alumni Network. He expects events to include after-work get-togethers in restaurants or bars, wine tastings, museum visits, hosting professor lectures and organizing meetings between studyabroad students and alumni.
“We focus on investing in sustainability and resource efficiency. We’re trying to invest in companies that are profitable; that have revenues; that are selling products, services or solutions to increase efficiency of the use of natural resources, decrease environmental impact and also have a positive financial performance.” — Craig Cummins MBA 05
U C D AV I S G RA D U ATE SCHOOL O F M ANAGEM ENT 2 3
The California 400
Company Leaders Dominated by Men BY K A R E N N I KOS
he 400 largest public companies headquartered in California, representing almost $3 trillion in shareholder value, still resemble a “boys’ club” with women filling fewer than 10 percent of top executive jobs, according to the Graduate School of Management’s eighth annual “UC Davis Study of California Women Business Leaders.” The study—a yearly benchmark for the Golden State’s lack of progress in promoting
“One factor of this dismal result is the presence of high-technology sectors in Silicon Valley, which account for $1.2 trillion in shareholder value, nearly half that of the 400 companies in the study. While high technology is a major economic driver in the state, it is a poor example of leadership gender diversity.” — Research Specialist Amanda Kimball, author of the study
The survey, released in December, is
The survey featured one statistical
women business leaders—paints a dismal picture for women in leadership during
the only one of its kind to focus on gender equity in the boardrooms and executive
bright spot: The percentage of women directors year-to-year jumped a half
fiscal year 2011–2012. Some of the best known among these top companies—the
suites of corporate California. Overall, only 9.9 percent of the board
percent, the highest annual increase in four years. For the past few years, the
California 400—have no women leaders.
seats and highest-paid executive positions in the 400 largest public companies
figure climbed only 0.2 percent annually. “This is a slight increase, but not nearly
THE CALIFORNIA 400 VS. THE FORTUNE 500 The representation of women on boards of the California 400 lags far behind that of the nation’s Fortune 500 companies, according to the 2012 Catalyst Census: “Fortune 500 Women Board Directors.” Released a week after the UC Davis study in December, Catalyst’s study of the Fortune 500 found that women held only 16.6 percent of board seats in 2012. By comparison, women hold only 10.5 percent of the board seats at the California 400 companies. Catalyst is a national research and advisory organization working with businesses and the professions to build inclusive environments and expand opportunities for women at work. The UC Davis Graduate School of Management recently joined Catalyst, becoming one of only 10 university/global business school members.
24 W I N T E R 2013 I N N OVATO R
headquartered in California are held by women. Women hold 10.5 percent of
what we should be seeing,” Currall said. “We challenge the business community
the 3,189 board seats, and 8.9 percent of the 2,005 highest-paid executive
in California to improve on its past. Women, by far, make the most purchasing
positions at these companies. Only 13 of the companies have a woman as CEO.
decisions in certain industries, for example, and they are nearly 50 percent
For the first time, the survey also looked at ethnicity among the 85 Fortune
of the U.S. workforce. So, it’s vital that we have that diversity of thought and
1000 companies in California. Only one of these 85 businesses had an ethnic
experience in the leadership of these companies. More and more research is
woman as the CEO. And only 13 had any ethnic women directors. “To compete in today’s global marketplace, successful companies need leaders from a variety of backgrounds, skills and experience to make critical strategic and operations decisions, but the lack of women in these California public companies is anything but forwardthinking,” said Dean Steven C. Currall. “There are many talented, highly qualified women for these top leadership positions, yet every year we see the same figures and little improvement.”
showing that having more women in top management and on boards actually improves company performance.” The study looked at the five highestpaid executives for each company, also called “named executive officers,” as reported to the Securities and Exchange Commission. The study examined filing data available as of October 1, 2012. The 400 companies were selected based on market capitalization. For figures on ethnicity, study authors used a database that tracks Fortune 1000 companies nationwide and other sources, including company websites and SEC filings.
20 PE RC E N T BY 2020
“There’s good reason why Yahoo! President and CEO Marissa Mayer and Hewlett-Packard President and CEO Meg Whitman find themselves in the media spotlight and overly scrutinized for their performance while held up as role models for women aspiring to emulate their career success at top companies. There are so very few others like them.” — Dean Steven C. Currall Excerpt from December 5, 2012, Huffington Post column, “Still a ‘Boys’ Club’ at the Top of Corporate California”
“Companies today know they need to increase innovation,” said Marilyn Nagel, CEO of Watermark. “They need talent on top that is tuned into customer needs. They need directors and executives who are strong, capable, qualified leaders in every sense. “However, while so many are bemoaning the lack of these qualities in candidates for their top positions, they are overlooking the women right in front of them who can deliver all of these qualities in spades,” Nagel added.
The Graduate School of Management partnered with Watermark, a Bay Area– based nonprofit that offers programs for executive women, to complete the study. The School and Watermark joined the national conversation on gender diversity in U.S. corporate boardrooms by holding an event at Deloitte’s headquarters in San Francisco on December 12. It was among 27 events nationwide in 21 cities on the same day organized by 2020 Women on Boards chapters. The goal:
To download a full copy of the study, including industry-by-industry and county-by-county statistics, visit www.gsm.ucdavis.edu/census
to raise the percentage of women on corporate boards in the U.S. to 20 percent or greater by the year 2020.
2012–2013 STU DY FAST FAC TS
W I L L I A M S -S O N OM A S TA N DS O U T
The company with the best gender balance in this year’s survey was San Francisco–based Williams-Sonoma Inc. The home furnishings and cookware company reported that women held nearly 47 percent of their highest-paid executive and board director seats. “Williams-Sonoma Inc. is proud to be a leader in diversity and considers this to be at the core of our business practices. We work to create an environment that attracts great talent, and we seek to motivate, inspire and recognize high performance among all employees,” said Laura Alber, the company’s president and chief executive officer. Williams-Sonoma was ranked ninth in last year’s study, with 31 percent of its executive and board member seats filled by women, and it has been in the top 25 companies in the list three years consecutively. The highest-ranking company two consecutive years previously, bebe stores inc. dropped to second place in the latest study while maintaining 40 percent women in its top positions.
NUMBER OF COMPANIES WITH A GENDER-BALANCED BOARD AND MANAGEMENT TEAM
PERCENT OF COMPANIES WITH NO FEMALE DIRECTORS
The 128 Silicon Valley (Santa Clara County) companies, which represent $1.2 trillion, or nearly half the shareholder value of the companies on the list, again showed the worst record for percentage of female executives. Only 6.6 percent of their highest-paid executives % are women, and only 8.4 percent of Silicon WOMEN Valley board members EXECUTIVES in our study are women.
NUMBER OF WOMEN FOR EVERY 9 MEN AMONG DIRECTORS AND HIGHEST-PAID EXECUTIVES
Among counties with at least 20 companies, San Francisco County has the greatest percentage of female directors (16.3 percent) and Orange County has the least (8.7 percent). Alameda County has the most highest-paid female executives at % companies located SAN FRANCISCO there, with COUNTY 14.4 percent.
NUMBER OF FEMALE CEO S AT THE 400 COMPANIES
OF 400 ■■
NUMBER OF WOMEN AMONG THE HIGHEST-PAID EXECUTIVES AT FISCAL YEAR-END AT APPLE, GOOGLE, INTEL, CISCO, VISA, EBAY, DIRECTV AND PG&E
PERCENT OF COMPANIES WITH ONLY ONE FEMALE DIRECTOR
Firms in the semiconductor and software industries and those located in Silicon Valley tended to include fewer women on the board and in highest-paid executive positions. Firms in the consumer goods sector had the highest average percentage of female directors and highest-paid executives.
34 U C D AV I S G RA D U ATE SCHOOL O F M ANAGEM ENT 2 5
MBA Student Consultants Make an IMPACT PROJECTS PUT BUSINESS NEEDS FRONT AND CENTER BY T I M A K I N
gilent Technologies’ Electronic Measurement Group is a $3.6 billion business that over the past decade has seen a dramatic shift in its customer base from U.S., and Western European customers to predominantly Asia-based customers. Today, the majority of the division’s revenues are generated outside of the U.S., with an increasing concentration in China. This represents not only a geographical shift, but also a profound demographic one. Asia’s technical customers are significantly younger than their western counterparts, and seem to make purchase decisions and interact with suppliers differently than Agilent’s traditional customer. The result: Agilent’s need to rethink marketing and communications strategies. “One of the biggest challenges is how to use social media to improve our business,” said Mike Kawasaki, eMarketing senior manager for Agilent’s EMG division. “We’re struggling with the best strategy in a business-to-business environment that is very mature but moving very fast.”
That’s where a team of five UC Davis MBA students—including two who speak Mandarin—is helping with a 20-week corporate sponsor project. They’re bringing fresh eyes and critical thinking aimed at providing Kawasaki with a strategy that has a positive return on investment. Agilent is one of 10 consulting projects started this fall as a new, two-quarter core course requirement that has teams solving very real business problems. It’s the anchor for the Graduate School of Management’s new IMPACT curriculum. The IMP stands for Integrated Management Project—which expands a program that has placed more than 300 students as business consultants in up to nine projects a year since 2005. 26 W I N T E R 2013 I N N OVATO R
ACT stands for Articulation and Critical Thinking and is the foundation course of the first year. Casting and guiding the student teams are two faculty advisors who bring plenty of experience and industry connections. Joe DiNunzio has 25 years of creative, technical and business leadership experience both as a management consultant and as a hands-on operating executive. Marc Lowe is a seasoned high-tech industry executive who worked for Adaptec and HewlettPackard, and is managing partner and founder of Praxis Ventures, a Bay Area consultancy that has raised $150 million in venture capital for clients. “The Agilent IMP team is delivering in spades for their client,” said Lowe. “The team is on track to go far beyond tactical social media recommendations expected from business students, and instead deliver an integrated and pragmatic marketing strategy with the potential to fundamentally change how Agilent connects with both its traditional and fast-growing, Asian customer bases.”
D I A L I N G U P D I G I TA L : MBA students (left to right) Tiffany Tan, Evan Benway, Sherry Si, Dylan Fiesel and Dani Morgan are working with AT&T on a plan to transition from direct mail to digital marketing for AT&T Wireless products.
VA LUA B L E L ES S O NS I N T E A MWO R K
Student Ken Wen said the demands of the project experience can’t be learned from case studies or other coursework. “The primary and secondary research we performed as a team has highlighted for me the different issues suppliers and customers face in a B2B tech industry,” he said. “Having personally delivered pieces of work to our sponsors at Agilent has shown me the challenges that I might face in a consulting role.” Meanwhile, DiNunzio has been advising students working with AT&T to develop a migration strategy from direct mail to digital communications for its wireless products. It’s a digital marketing project for the largest communications holding company in the world by revenue. “Consulting for a Fortune 50 company like AT&T is a great opportunity to apply the theories we cover in our coursework,” said MBA student Dylan Fiesel.
O U R 2012–2013 I M PAC T SP O NSO R C LI ENTS A N D PROJ EC TS “We’re able to take risks in these consulting engagements that we might otherwise be hesitant to take. This freedom enables more creativity and experimentation in our process, resulting in valuable insights for the client.” DiNunzio, president of the consulting firm Fido Management, said seeing the breadth and the high-level of engagement in these 10 projects is satisfying. It marks the culmination of more than three years of groundwork that he was involved with that led to the School’s curriculum renewal—the most fundamental in its history—to better prepare graduates with real-world practice. “The IMP projects are an excellent academic opportunity, and students are delivering fantastic results and value for our client sponsors,” said DeNunzio. “Students take the skills learned in the core curriculum and apply them in a powerful way. And it’s the foundation for building strategic relationships and strong and enduring partnerships with these companies.” Lowe said students have described working with clients “like drinking from a fire hose” because they have to ramp up their understanding of the company’s problem, define the most important elements and determine how to address it in a very short period of time. “I’ve worked with well over 100 MBA student teams, and am continually impressed by the work students are capable of producing when they’re fully engaged and challenged to apply a broad set of skills to real problems,” said Lowe. Learn more about the UC Davis MBA Consulting Center www.gsm.ucdavis.edu/consulting
CORPOR ATE SPONSOR AG I L E N T T E C H N O LO G I E S
C H E V RO N
C I T Y O F SAC R A M E N TO
FI RS T N O R T H E R N B A N K
H E W L E T T- PAC K A R D
I N T E R M AT I C
JOHNSON & JOHNSON
VS P G LO B A L
W E L L S FA RG O
Characterize the communication preferences of Agilent’s current and future customers, survey various communications strategies and vehicles, and develop actionable recommendations with respect to appropriate media mix and communications strategy. Analyze the impact of and create a framework for transitioning from direct mail marketing to digital marketing for AT&T Wireless products for both general and diverse market segments. Develop a competitive positioning strategy for Chevron Energy Services, address market gaps and identify effective ways to communicate CES’ value proposition in the civic and public education markets. Develop an overall plan for a Health Innovation Zone that identifies key constituents and their respective roles, articulates the flow of services and features provided between these constituents, proposes a potential set of economic incentives, and analyzes the socioeconomic impact the zone will have for the City of Sacramento. Develop an approach, plan and set of initiatives to help First Northern Bank more effectively serve the small business market segment to increase profitability in today’s competitive landscape. Develop a growth strategy focused on providing value-added services to small- and medium-sized businesses for HP’s imaging and PC business. Develop a business plan for entry into the building/ energy management system solutions space. Develop a framework to measure and value Johnson & Johnson’s sustainability initiatives in the Medical Device & Diagnostics business; identify key sustainability-related customer purchase drivers, and recommend specific areas of focus to address their emerging needs and the competitive landscape. Propose actionable marketing and business strategies to expand the company’s individual vision care line of business. Identify attractive target markets and develop supporting strategies in support of Wells Fargo’s goal to become a leader in mass market retirement savings.
U C D AV I S G RA D U ATE SCHOOL O F M ANAGEM ENT 2 7
Executive Education Offers Suite of BY M A R I A N N E S KO C ZE K
ith customized programs representing the fastest growing segment of the executive education market, the Graduate School of Management is focused on delivering tailored, nondegree programs that give executives the tools and confidence to solve organizational challenges, reach new markets or seize opportunities. Managing Director Wendy Beecham brings more than 25 years of leadership experience and a global perspective to the program. Beecham works with clients to design programs that tap UC Davis’ strengths and network to deliver exceptional results with practical and actionable knowledge and skill building.
“I enjoy the close partnership and collaborative work process we have with the client,” says Beecham. “I feel like we are jointly creating something purposeful.”
CUSTOMIZED SERIES FOR GENENTECH
PENSION FUNDAMENTALS AT CALPERS
In February, 70 top leaders from Genentech’s Vacaville, Calif., plant convened at the School for an exploration of how to manage organizational risk—the third in a series of customized programs for the maker of cancer fighting and other drugs. Previous programs for the Genentech team focused on productivity in 2012 and innovation in 2011. Genentech, known as the birthplace of biotech, is part of the international pharmaceutical giant Roche.
This fall, the School will launch a workshop series with the California Public Employees’ Retirement System (CalPERS), the largest public pension fund in the U.S. The School’s finance faculty will present an in-depth look at the intricacies of pension funds and their management for staff who work in, and support, the CalPERS Investment Office. The Pension Fundamentals training series will familiarize employees who have worked in the private sector financial services industry with the prominent issues affecting public pension fund management, and will leave all employees with a basic understanding of asset liability management.
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“What does success look like? Raising this key question and listening closely to the response ensures that our executive education program delivers clients a critical investment in their company’s leadership team and keeps them at the top of their game.”
— Wendy Beecham Managing director, Executive Education
Beecham says initiatives are underway in a wide variety of industries and sectors. Most recently, clients have included leading firms and organizations in biotech, finance, agribusiness and energy.
NEW OPPORTUNITIES IN ENERGY Beecham and Amy Myers Jaffe, executive director for energy and sustainability at UC Davis (see page 2), are collaborating on new executive education offerings focused on risk and safety for the energy sector, including climate change factors and cybersecurity. “The energy industry is undergoing a period of tumultuous change that will require new strategies and business models,” says Jaffe. “We are designing programs to help companies identify and navigate transformational events and to convert emerging risks into opportunities for new products and services.”
Learn more about custom executive education programs and follow our blog www.gsm.ucdavis.edu/execed
W I N E E X E CU T I V E P R O G R A M FOOD FOR THOUGHT: AGRIBUSINESS IN CHINA Agribusiness in China is undergoing a fundamental transformation from traditional to modern farming. From the farm to the table, there is a growing need for practical knowledge about the latest techniques and technologies to help the agricultural industry scale up and meet new standards for food safety, organic foods and nutrition. The Graduate School of Management is partnering with the CHIC Knowledge Center of Excellence to deliver a series of senior executive symposia at their state-of-the-art training base near Shanghai. The series will launch in June with a two-day program keynoted by Charles Sweat, CEO of Earthbound Farm, who will share how he grew his company from a small, family-owned business into an international organic farming success story. The symposium’s faculty, drawn from UC Davis and other leading agriculture institutions, will provide China’s top agribusiness CEOs and other leaders with practical tools for determining farm site and crop selection, securing financing, ensuring food safety and more.
BLENDING THE BUSINESS AND SCIENCE OF WINEMAKING
G raduate S chool of M anagement and D epartment of Viticulture & E nology Unparalleled knowledge from internationally renowned faculty, who teach the management skills critical to success in the wine industry.
MARCH 24 –28 Gallagher Hall, Graduate School of Management Robert Mondavi Institute for Wine and Food Science
U C D AV I S G RA D U ATE SCHOOL O F M ANAGEM ENT 2 9
CalPERS’ Anne Simpson Stresses Management Responsibility CORPORATIONS REQUIRE ACCOUNTABILITY FOR THE EXERCISE OF POWER BY C RYS TA L ROS S O ’H A R A
y most measurable accounts, the modern corporation is a wild success, with products and services that touch every moment of our lives and companies with so much wealth that some are valued at more than the GDP of industrialized nations. WalMart, for example, posted $444 billion in net sales last year, slightly more than the GDP of Norway. Apple has a value greater than the GDP of Poland, and selling the company at its market value of about $490 billion would more than pay off Greece’s crisis-causing debt. But while recent decades have seen corporations accumulate exponential amounts of power, wealth and resources, many of the world’s seven billion people are still suffering. Close to 780 million don’t have safe drinking water, 20 percent live without electricity and almost 40 percent don’t have access to basic sanitation. Meanwhile, issues surrounding corporate governance are as important and controversial now as they were in the 18th century, when the modern idea of corporations first took root, and accountability, transparency and fairness
will be a priority for the next generation of CEOs. That’s the message that Anne Simpson, senior portfolio manager of investments and director of corporate governance at CalPERS, shared with MBA students in September as a Dean’s Distinguished Speaker. With $250 billion under management, California Public Employees’ Retirement System is the largest public pension system in the U.S, providing retirement and health benefits to more than 1.6 million public employees, retirees and their families.
Simpson oversees CalPERS’ Focus List of shareholder engagement with underperforming public companies, global proxy voting, legal and regulatory reform and its actively managed corporate governance investment strategy. She is also a senior faculty fellow at the Yale School of Management and a member of the Investor Advisory Group of the Public Company Accounting Oversight Board. Scandals, malfeasance, greed and corporate manipulation—Simpson highlighted many instances throughout history. These examples, she said,
“[A corporation] is not a person in the sense that you and I are people. It’s not a person in the sense of having volition, or responsibility, moral agency, the ability to make decisions. The best we can think of is that it is a robot. It’s something that we have invented and we are responsible for.” — Anne Simpson, senior portfolio manager of investments and director of corporate governance, CalPERS
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remind us that despite legal constructs and Supreme Court decisions, a corporation is not a person. “It’s not a person in the sense that you and I are people. It’s not a person in the sense of having volition, or responsibility, moral agency, the ability to make decisions,” Simpson said. It’s more like a robot. “It’s something that we have invented and we are responsible for,” she said. Corporations require accountability for the exercise of power. MBA students, as future corporate leaders, will need to ask, if not the shareholders, then who will be responsible and accountable for the corporation. The government? Workers? The media? “It seems absolutely right to me, this alignment of interests between the providers of capital and the company,” Simpson said. CalPERS is defining its responsibilities as an influential institutional investor, Simpson said. The pension fund has developed a new framework for its investment strategy focusing on the creation of value, rather than individual strategies and decisions. The idea, which Simpson described as “old-fashioned basics,” is that value comes from financial, human and physical capital. The Graduate School of Management will play a key role in CalPERS’ new focus by researching and providing analysis on incorporating environmental, social and corporate governance issues into CalPERS’ investment strategies (see page 20). Simpson’s inspirational final message for the students: “Have imagination. That is probably one of the most undervalued things in a business leader.”
View the video of Anne Simpson’s talk www.gsm.ucdavis.edu/simpson
Working Smarter, Not Harder at Genentech BUSINESS IS LIKE SWIMMING FOR JOSH MAKAL BY J OA N N A CO R M A N
s an undergraduate at UC Davis, Josh Makal excelled as a competitive swimmer, earning an All-American title for freestyle in 2002. He still swims with the Davis Aquatic Masters group, and knows that the best way to increase speed in the water is not to spend more calories, but figure out how to become more efficient. Business is often the same way. Longterm gains and profit are made by the companies that are more efficient, not necessarily those that work harder. The same energy, focus and determination that Makal has in the pool, he brings to his work at Genentech’s manufacturing plant in Vacaville, Calif., where he helps manufacture anti-cancer drugs, and as a second-year student in the UC Davis Sacramento MBA program. While earning his bachelor’s degree in genetics at UC Davis, Makal knew Genentech, the birthplace of biotechnology, would offer many rewarding career opportunities. Today, he is a master bioprocess technician in Genentech’s Purification Operations Group. His team grows cells in fermentation tanks “I enjoy working on a team until they to tackle a problem and make are ready to decisions and help people be harvested. make their job easier.” The cells excrete proteins into a solution, and Makal purifies them by isolating a single protein that is put into an injectable liquid that will be part of a chemotherapy regimen. Makal manages the systems that execute this process, monitoring the operations to ensure the drugs are of the highest quality and meet strict FDA requirements for safety. Much of Makal’s time at Genentech has been managing change. For about five years, he led a group that would evaluate
potential changes from a cost-benefit analysis and alignment with the company’s goals, then put them into action. His work has earned him several promotions and awards. Nearly two years ago, Makal pioneered the process the Vacaville plant uses to manage continuous improvement of ideas from the shop floor to implementation. The goal is to reduce manufacturing costs or improve safety and quality. It’s all about streamlining efficiencies, working smarter, not harder, just like a swimmer in the pool. A wave of change rippled through Genentech in 2009 when pharma giant Roche, already a partial owner, acquired full control in a deal valued at $46.8 billion. The cultures of Swiss-based Roche and Genentech, which is characterized by creativity and independence, had Genentech employees concerned about whether the merger would lead to a brain-drain. “From my perspective, Roche has done a very good job of integrating the very progressive and culture-driven Genentech,” Makal says. “The transition took a few years, where there were some lingering questions regarding culture shift, or a movement to a more corporate or ‘big pharma’ mentality. In the end, however, Roche has kept a significant portion of the culture that made Genentech so dynamic.” Makal has a deep sense of pride in his work, producing drugs that save lives. “It’s extremely rewarding and reminds everyone of why we are here,” he says. “It completely energizes me.”
Sacramento MBA student Josh Makal puts efficiencies into action at biotech pioneer Genentech—and in the pool as a freestyle specialist at a recent Davis Aquatics Masters swim meet held at UC Davis.
Now that he’s pursuing an MBA, the former Eagle Scout is transitioning out of change management into an as yet unknown role. “That’s correlated with my time at the Graduate School of Management and understanding that I have a lot more to offer,” he says. “It’s time to diversify my skill set a little bit more.” One of his long-term professional aspirations is to head a drug manufacturing plant. “I enjoy working on a team to tackle a problem and make decisions and help people make their job easier.” U C D AV I S G RA D U ATE SCHOOL O F M ANAGEM ENT 3 1
Trisha Durant Quicksteps into New Success at the Gap BY J OA N N A CO R M A N
risha Durant had no ballroom experience
when she joined UC Berkeley’s competitive dance team as an undergraduate earning an economics degree. Instead, she leveraged her cheerleading and classical training and used hard work, determination and ambition to win numerous awards. She made a repeat performance as a second-year UC Davis Bay Area MBA student. Last fall, Durant quickstepped from a successful career in transfer pricing at consulting powerhouse Ernst & Young (E&Y) to become a senior manager in the global supply chain strategy group at San Francisco–based Gap Inc. The leap would surprise most of her former colleagues, she says. Transfer pricing consultants who leave this specialized world typically go into tax, finance or accounting—not a business strategy role. Now Durant is managing global costs for the Gap’s five brands. Every expense to make a product—such as fabric, buttons, zippers, labor and shipping—is her responsibility. She’s learning the very detailed business of apparel manufacturing and retail. Fabric is not just denim or wool. It’s judged by feel, whether it’s woven or pure, its capacity to stretch and myriad other factors.
“It’s like drinking from a fire hose,” Durant says of her new position. “It’s about being humble, being grounded and knowing that you can be great in one profession, but when you join another you need to know how to fall and get back up.” Transfer pricing involves the valuation of intercompany transactions that are not in the same tax jurisdictions. It usually applies to companies with international operations. At E&Y, Durant was a point of contact for clients, typically major
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“It’s like drinking from a fire hose. It’s about being humble, being grounded and knowing that you can be great in one profession, but when you join another you need to know how to fall and get back up.”
corporations in a variety of industries. If
in corporate culture. “I see myself
the clients wanted to expand their supply chain to China, for example, they would
backing products in the everyday American household,” she says.
ask Durant and her team to research the tax ramifications. She also negotiated
One of Durant’s challenges has been balancing work with being a mom to a
with federal tax authorities for her clients. Durant rose from analyst to manager
two-year-old son. Sometimes the spontaneous happy hours are the most critical
at E&Y in less than five years. During the economic downturn, many of her colleagues were laid off or left. She used the experience to her advantage, “to show my new bosses that although I’d only been doing this one or two years, I can manage clients, I can manage projects, I can challenge myself intellectually,” she says. When Durant and a colleague were asked to translate IRS cost-sharing rules into lay terms for their clients, she helped create a document to help E&Y employees navigate these rules that has since become a company standard. Durant hopes one day to lead a major consumer goods company and be a leader
ones for getting to know key company leaders, she says. “Time is of the essence for any working parent,” says Durant, who is extremely strategic with how she divides her time between being a professional, a student and, most importantly, a family woman. She credits her husband and parents for her accomplishments. “They taught me how meaningless successes can be if you don’t help others get to the same level. At the end of the day, what is important is not your paycheck: it’s the difference you’re making in people’s lives.”
Prerana Joshi Takes IT Expertise to Product Marketing MBA INTERNSHIP AT KELLOGG’S OFFERS FIRST-HAND EXPERIENCE BY J OA N N A CO R M A N
rerana Joshi started the Daytime MBA program set on establishing a career in IT management. She brought a background in software development, and had worked four years for FICO, ANZ Bank and IBM in Bangalore, India. But courses in strategy and marketing management, and a market research project she completed for the Tahoe Institute for Rural Health Research during her second quarter at the School, changed everything. Now Joshi is focused on a future in product management and marketing. She’s open to working in a variety of industries, including technology and consumer packaged goods. An internship at the Kellogg’s facility in Walnut Creek, Calif., is giving her first-hand experience in marketing and product management in the consumer packaged goods industry.
Joshi graduated with honors from the University of Rajasthan in Jaipur with a bachelor of engineering in computer science. She’s come to realize that she is more interested in front-line product management than developing software code solutions on the back end. “I think it’s very interesting how product managers identify profitable opportunities that will meet market needs,” Joshi says. “The most interesting part is managing the behavior side of your customer.” Most recently at FICO, the credit score company, Joshi customized a software program for one of her customers, figuring out what they needed and writing the code to allow it to work on the customer’s system. As an applications developer at IBM, she helped create an online portal to allow her client, a health insurance company, to better manage customer information. During her time at ANZ Bank, she designed and developed solutions that
generate FICO scores for six million customers of ANZ, and she trained 16 engineers on a mainframe testing tool that increased the productivity of the team by more than 10 percent. Joshi hopes to be a mentor in the workplace and is learning from two mentors as she earns her MBA. She helped launch a mentorship program with the School’s MBA Marketing Association and serves as the program’s vice president. The program matches GSM alumni who work in marketing with current students interested in the field. The program has 18 first-year MBA students and 20 mentors. Joshi also is the director of marketing for the Women in Leadership club. In India, Joshi volunteered for two years with NGO Family Services, helping raise money for orphaned children. She came to the U.S. to join her husband, who earned his master’s degree in engineering at San Jose State University and stayed in California for his career. Joshi is sharpening her management and leadership skills at the School, and
wants to be in a position to drive innovation after earning her MBA. “Everyone at the School is so helpful and so connected,” she says. “This is a great resource. I’m applying everything I learn here at my internship at Kellogg’s. I see how it is making an impact. It has changed the way I look at things. “As a software developer and as a solution consultant, my thinking was more limited. Now I see a bigger picture, including how the supply chain and marketing work in sync. My understanding has completely changed.”
“I’m applying everything I learn here at my internship at Kellogg’s. I see how it is making an impact. As a software developer and as a solution consultant, my thinking was more limited. Now I see a bigger picture, including how the supply chain and marketing work in sync. My understanding has completely changed.”
U C D AV I S G RA D U ATE SCHOOL O F M ANAGEM ENT 3 3
Benjamin Okyere Counts Accounting Degree as Career Investment BY J OA N N A CO R M A N
or as long as he can remember, Benjamin Okyere has liked accounting and with family members in the field, he was inspired to pursue a graduate degree to compliment his finance background. The profession’s need for linear thinking and problem-solving skills appeals to Okyere. “I like to figure things out, either on my own or on a team, and make sense of the numbers. Accounting offers me the opportunity to do that.” Okyere is pursuing his dream as one of the 30-member charter class of the Master of Professional Accountancy (MPAc) program that launched in the fall. The nine-month program, the first of its kind in the University of California system, meets the requirements of a new California law that, beginning in 2014, will require those seeking a Certified Public Accountant (CPA) license to complete five years of postsecondary education.
At a career fair at Committed to his success, Benjamin Okyere financed 85 percent of the Graduate School his undergraduate education by working a 40-hour week at two of Management last part-time jobs—at Sears and at the nonprofit Foundation for California September, Okyere and Community Colleges—while carrying a full academic workload. his classmates met recruiters from the In 2003, Okyere emigrated from Ghana Big Four accountant firms—Pricewaterto California at the age of 15 to join his father. houseCoopers, Ernst & Young, Deloitte Okyere attended his father’s alma mater, and KPMG—and medium-sized firms San Jose State University, for his first undersuch as Moss Adams and Crowe Horwath. graduate year. When his family moved to “It was a great event as most of the firms the state capital, he transferred to California were recruiting for fall 2013 start dates, State University, Sacramento, and in 2009 which eliminates the pressure of looking received a bachelor’s degree in finance, for a job after graduating,” Okyere says. risk management and insurance. He chose the UC Davis MPAc program Committed to his success, he financed because of the School’s business school 85 percent of his education by working a ranking, faculty reputation, close-knit 40-hour week at two part-time jobs—at community and small class size. “In Sears and at the nonprofit Foundation for addition to the actual coursework, the California Community Colleges—while intention is to promote a collaborative carrying a full academic workload. work environment, and to develop and He joined State Street Bank in Sacramento, refine the skills needed to be successful working as a fund accountant managing a in the accounting industry,” he says. $50 million portfolio for the California Public Employees Retirement System (CalPERS), C A L I FO R N I A’S FU T U R E ACCO U N TA N TS 2012 U C DAV IS M PA C C L A SS PRO FI L E the nation’s largest public pension fund. Okyere kept track of fixed-income transactions and interest payments executed by the client to ensure accurate valuation of the U N D E RG R A D UATE M A J O RS, BY C ATEG O RY portfolio. He received a promotion and won % responsibility for more complex portfolios % % UNDERGR ADUATE and helping to train new team members. I N T E R N AT I O N A L INSTITUTIONS SOCIAL SCIENCES BUSINESS-RELATED STUDENTS REPRESENTED “I gained a deeper understanding of the financial services industry and acquired so many transferable skills,” says Okyere, who hopes to audit public and private companies in the financial services GENDER R ATIO IN MPAc PROGR AM industry after receiving his CPA license. % % AVER AGE Long-term, his sights are set on becoming AVERAGE GMAT SCORE UNDERGR ADUATE GPA a CFO or controller. WOMEN MEN
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The Economist Ranks UC Davis MBA in the World’s Top Tier
WORLDWIDE FOR DIVERSITY OF CORPORATE RECRUITERS
ecognizing the breadth of career opportunities in a wide range of industry
interests of UC Davis MBA students and their
The Economist solicits input from more than 100 global business
sectors for UC Davis MBA graduates, The Economist ranks the Graduate School of
ability to compete successfully in today’s
schools, and surveys students and alumni, and then measures and
Management’s program No. 1 in the world for the diversity of corporate recruiters.
global economy. “We are especially pleased to be
weights the data to calculate the overall rankings. The rankings are based on various
Overall, The Economist’s 2012 MBA rankings place the UC Davis full-time MBA
ranked No. 1 in the world in recruiter diversity, and ranked internationally
components’ importance among business students and alumni who graduated within
program among the top 10 percent of all accredited MBA programs worldwide. In
among the top business schools,” said Dean Steven C. Currall. “This is a
the last three years. Schools reported on whether companies recruited from the
the listing, released in October, UC Davis is No. 39 in the U.S. and No. 67 globally.
testament to the skills of our graduates meeting the needs of employers across
following 11 sectors: consulting, consumer products, financial services, government,
This is the third consecutive year UC Davis has been recognized in the top
a broad range of industries. It also shows the strength of our corporate relations and the career opportunities available to UC Davis MBAs.”
manufacturing, media/entertainment, petroleum/energy, pharma/biotech/health care, real estate and technology.
tier for its diversity of corporate recruiters. The No. 1 ranking reflects the breadth of
Monica Jones Strengthens Team Devoted to Students’ Career Development
ith more than 15 years of corporate recruiting experience, Monica Jones joined the School in October as associate director of employer relations and diversity initiatives. She works with UC Davis MBA and MPAc students on their career development and links them to companies and a network of contacts that best fit their professional goals. Jones was previously the senior manager of talent acquisition, diversity and inclusion at Deloitte, where she implemented early identification and diversity strategies while leading a team of campus recruiting professionals on the West Coast. Her experience also includes staff consultant and university relations positions at Health Net, SAP Labs and Bank of America. “I joined the Graduate School of Management because this is a great opportunity
to share my industry knowledge with students,” Jones said. “I was impressed by the focus that the team has on preparing students and the one-on-one attention that we provide. I look forward to bringing many of the relationships that I have fostered over the years to create more career and internship opportunities for our students.” “Monica’s extensive network and knowledge of best practices for diversity and inclusion will be invaluable to our team and community,” said Chris Dito, senior director of career development. Jones is also serving as the School’s interim director of corporate relations while a national search is being conducted. She is working closely with visiting lecturers Joe DiNunzio and Marc Lowe, and Professor David Woodruff, to ensure
the success and experience of MBA student teams working on Integrated Management Projects for corporate sponsors. Jones graduated from the University of Michigan with a B.A. in psychology. She started her recruiting career in college working on summer residency programs to increase the rate of under-represented students at the University of Michigan. www.gsm.ucdavis.edu/jones
U C D AV I S G RA D U ATE SCHOOL O F M ANAGEM ENT 3 5
Carl Gayden Joins as Senior Assistant Dean for Strategy and Finance
ringing a wealth of experience in financial services and business school financial, operations and administrative management, Carl Gayden joined the Graduate School of Management in December as senior assistant dean for strategy and finance. As a key advisor to the dean and associate deans, Gayden oversees strategic planning, program development, financial planning and forecasting, policy setting, organizational development, risk management and human resource management. Dean Steven C. Currall praised Gayden’s strong background and the valuable perspective he brings to the senior management team. “Carl’s knowledge and experience with complex business school operations will be an asset to the School as we continue to grow and mature, and face many strategic decisions over the next several years,” Currall said.
Gayden said the buzz and excitement about the School and its strategic vision make this an “unbelievable opportunity.” “I look forward to supporting the School strategically and help position it for future growth,” he said. “I will assist by enhancing and adding to the infrastructure needed to support this planned growth and opportunity. I also want to develop and implement new tools, metrics and analyses to increase operational efficiencies and guide our strategic direction.” Before coming to UC Davis, Gayden served as the associate dean for finance and administration at the University of San Francisco’s School of Management. At USF since 2007, he was responsible for financial, operations and administrative management and advised the dean on strategic planning and operations. Gayden spent the majority of his career in financial services in the San Francisco Bay Area,
including leadership roles at Washington Mutual Bank, Homecomings Financial and Silicon Valley Bank. Gayden also served as the co-founder and vice president of sales and marketing for Newtrendz Event Planning Corp. He serves on the board of Groceries for Seniors, a community-based nonprofit organization that provides free food to poor, elderly people in San Francisco. He is also a member of the Association of Accountants and Financial Professionals in Business, the Society for Human Resource Management and the Financial Management Association. He holds a B.A. in business administration and an MBA from the University of San Francisco. www.gsm.ucdavis.edu/gayden
Mary Maffly Stewards Alumni and Business Partner Relations
ary Ciricillo Maffly has brought more than 16 years of professional experience to her new role as the director of development and alumni relations. After playing a key role in planning programs and events for the School over the past two years, Maffly now stewards the Business Partnership Program and serves as the point person on building connections, community and involvement of the School’s alumni. “It’s very motivating to be a part of one of the fastest-rising business schools in the country,” said Maffly, who began her new position in September. “It’s an exciting time to be strengthening our alumni and business community relationships, and seeing how the
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generous financial support and energetic engagement from both improves our students’ experience and allows the School to thrive.” Maffly has spent the last six years in diverse roles at UC Davis, creating and growing programs that help further university goals. She launched UC Davis goClub, the campus alternative and sustainable transportation program. To get goClub rolling, Maffly signed on sponsors, built new relationships across campus and business community, and revved up the marketing plan to encourage campus commuting options such as carpool, vanpool, bike, walk, bus and train. Before joining UC Davis, Maffly was an account executive in the communications industry,
developing branding and marketing solutions. Her clients included The Gap, Oracle, Knight Ridder Newspapers, the San Francisco Ballet and the Tech Museum of Innovation in Silicon Valley. Maffly has a B.A. in history and business from San Francisco State University. www.gsm.ucdavis.edu/maffly
RECORD STUDENT STATS The Graduate School of Management is now educating more graduate business students than ever before with record part-time MBA student enrollment last fall and the launch of the Master of Professional Accountancy program. 2 012 –2013 UC DAVIS M BA STU DENT STATISTICS
DAYTIME MBA ( FULL TIME)
SACRAMENTO MBA ( PART TIME)
SAN FRANCISCO BAY AREA MBA ( PART TIME)
TOTAL PART TIME MBA STUDENTS
With friends, family, spouses and children cheering on their loved ones, 183 UC Davis MBA candidates strode across the Mondavi Center stage last June as the Graduate School of Management’s newest alumni and members of the 30th graduating class. James C. Davis, president of Chevron Energy Solutions, shared his wisdom, insights and experiences during his successful career as a change agent at one of the world’s largest energy companies.
“ As I look out on this graduating class, I say to each of you I say, it’s your turn to write your story. But whatever path you choose, I urge that you hearken to those three, all-important words: passion, integrity and innovation. Find and follow what you love; do what you know is right; and seek what is new.”
TOTAL MBA STUDENTS
Chevron Executive James Davis Keynotes 30th Commencement
MASTER OF PROFESSIONAL ACCOUNTANCY CHARTER CLASS
TOTAL GRADUATE BUSINESS STUDENTS
UNDERGRADUATE TECHNOLOGY MANAGEMENT MINOR STUDENTS
TOP STUDENTS HONORED We congratulate these MBA students for awards presented at the School’s 30th annual commencement. The RICHARD C. DORF AWARD, established by the School’s faculty to recognize outstanding academic achievement, has been endowed by Professor Emeritus Richard Dorf and Mrs. Joy Dorf. ■■
The JAMES F. SULLIVAN AWARD recognizes outstanding service to the School. ■■
The ROBERT H. SMILEY AWARD recognizes outstanding leadership in activities and enterprises that students are involved in at the School. ■■
— James C. Davis, president of Chevron Energy Solutions and Graduate School of Management 30th commencement keynote speaker U C D AV I S G RA D U ATE SCHOOL O F M ANAGEM ENT 3 7
Casino Royale Rallies GSM Community More than 230 students, faculty, alumni, business partners and friends gathered for a night of friendly wagering and networking at the Casino Royale event in November. With its towering granite columns reaching toward the five-story atrium ceiling and tri-colored terrazzo floor, the regal Tsakopoulos Library Galleria in downtown Sacramento provided perfect ambiance for the energetic and fun Saturday night event, presented by the Associated Students of Management.
Stephen Newberry Honored for Commitment to Leadership “In Dean Currall, the university has someone who represents the very best in what you can bring into a graduate school of management environment. I’m heavily involved with the School because of the leadership he represents. He realizes that what we are trying to do here is develop effective leaders.” — Stephen G. Newberry, vice chairman of the board of directors and the former president and CEO of Lam Research Corp., who was honored with the Dean’s Distinguished Service Award in October at the annual Dean’s Fall Welcome Luncheon
38 W I N T E R 2013 I N N OVATO R
Q U I C K FAC T S ■■
Member of the Dean’s Advisory Cabinet Has addressed UC Davis MBAs at orientation and commencement With his wife, Shelley A. Newberry, has endowed a faculty chair in leadership— held by Professor Kimberly Elsbach—and a fellowship that supports students who have great potential as team leaders in business
School Nears $25 Million Campaign Goal ALUMNA MORLEE GRISWOLD ESTABLISHES STUDENT FELLOWSHIP BY T I M A K I N
t the time alumna Morlee Griswold MA 85 earned her degree at the then Graduate School of Administration, the School was still in its infancy, only four years old, and did not yet offer an MBA. It would be more than a decade before it reached prominence among the nation’s top ranked business schools. Although much has changed over the past 30 years, there’s a continuous thread woven into the very fabric of the School’s culture: a commitment to social responsibility and using the power of business to make a positive difference. That made a lasting impression on Griswold, who went on to head direct marketing for a decade at Patagonia, the eco-minded outdoor-clothing maker. Today, she is a catalog development consultant continuing to work with companies that embrace social and environmental responsibility. Griswold has returned to the School many times, sharing her time and expertise as a guest speaker and career development mentor. She stepped forward in December to pledge a $25,000 gift to establish the Morlee Griswold Fellowship. She designated the annual $5,000 fellowship for a full-time MBA student who plans to pursue a career in social justice, social responsibility or environmental management. “We need to have future business leadership be exposed to a broader diversity of goals, and understand the economic times we have gone through and the role business plays,” she says. Her motivation for the fellowship came after she realized how important scholarships were while she financially supported her niece through college. “I have the mindset to be the change that you want to see in the world,” Griswold says. “So to help recruit a UC Davis MBA
OTHER ORGANIZATIONS $2,975,903
GRADUATE SCHOOL OF MANAGEMENT
12% FOUNDATIONS $1,663,229
67 % ALUMNI (UC DAVIS & GSM ) $15,944,798
Campaign start date: July 1, 2006 Current as of: February 7, 2013 Number of donors: 1,855 Number of gifts: 4,108 Total: $23,855,063
student each year who wants to be a leader in these areas I care about is very exciting to me. I’m also inspired by the chance to bring greater diversity to the student body. The richness of life experiences and beliefs in the School’s close-knit community is valuable for everyone.” Griswold’s gift comes on the heels of one of the School’s most successful alumni giving campaigns, and will help propel this year’s campaign forward to meet a goal of 20 percent participation. In 2011–2012, alumni giving reached $167,191, the second-highest amount in the School’s 30-year history. Alumni and friends play an important role as UC Davis expands its capacity to meet the world’s challenges and educate future leaders. These gifts contribute to The Campaign for UC Davis—a university-wide initiative to inspire 100,000 donors to contribute $1 billion in philanthropic support.
The Graduate School of Management has joined this campus effort with an ambitious goal of $25 million in three key areas: faculty and student support, programs and emerging opportunities. As of early February, the School has raised nearly $24 million, or 95 percent of the goal. “We have bold aspirations for the School, and ask you to be equally bold as you think about your personal support and how you can make a difference,” says Judy Nagai, assistant dean of development and external relations. “With your investment, you can help us meet the School’s top priorities. We invite you to join us.” For the latest updates on The Campaign for UC Davis, the School’s goals and progress, and how you can invest to make a difference, please visit www.gsm.ucdavis.edu/campaign
U C D AV I S G RA D U ATE SCHOOL O F M ANAGEM ENT 3 9
Thank You to Our Class Agents The GSM Alumni Association’s board of directors thanks these volunteer Class Agents for their time and energy serving as ambassadors to their former classmates. These dedicated alumni keep their peer-to-peer community bonds strong. They encourage their classmates to support the School through the Annual Giving Campaign, recruit students for internship and career positions, share their expertise with students at career development events and stay actively engaged with their alma mater. Jill Abrams
Daytime MBA 03
Pete Anderson Betsey Archer John Argo
Daytime MBA 02 Daytime MBA 83
Sacramento MBA 04
Class Agent Sacramento MBA 03 and 05
Sacramento MBA 00
Class Agent Sacramento MBA 99, 00 and 01
Daytime MBA 01
Sacramento MBA 98
Daytime MBA 98
Daytime MBA 00
Bay Area MBA 09
Sacramento MBA 98
Roger Halualani Brian Hoblit
Daytime MBA 91
Daytime MBA 07
Bay Area MBA 08
Class Agent Bay Area MBA 07 and 08
Cheri Johnson Bory Kim
Daytime MBA 89
Daytime MBA 11
Claire Kurmel Gary Lew
Daytime MBA 04
BECOMING A CLASS AGENT?
Daytime MBA 04
Mark Schmidt Leslie Shull
Contact Mary Maffly,
Daytime MBA 09
director of development
Daytime MBA 99
and alumni relations, at
Sacramento MBA 98
Dania Stotts Greg Sutliffe
Daytime MBA 08
Bay Area MBA 10
William Vasquez Sam Wainer
Sacramento MBA 12
Sacramento MBA 00
Daytime MBA 10
Daytime MBA 06
Daytime MBA 98
Thank You, Corporate Donors The UC Davis Graduate School of Management has developed strong ties with the business community throughout California and beyond. By providing crucial funding and philanthropic support, our corporate partners help the School stay ahead of the curve in business education. We recognize and thank these companies. Members of the Business Partnership Program that have given so generously this past year are listed in bold.*
Aerojet Boeing Co. Charles Schwab & Co. Inc. Chevron Corp. Cima Collina Delicato Family Vineyards Edison International Google Inc. JustGive
$25,000 –$49,999 First Northern Bank KQED Lam Research Corp.
$10,000 – $24,999 Capital Public Radio Genentech Inc. SunWest Foods Inc. Teichert Inc.
$1,000 –$4,999 Agilent Technologies Atlassian Inc. Bank of America BioWare Sacramento Boutin Jones Inc. Cakebread Cellars Central Valley Fund Comstock’s Business Magazine E. & J. Gallo Winery
Lagunitas Brewing Co.
Public Intellectual Property Resource for Agriculture
Levi Strauss & Co. Macy’s
River City Bank
Merck & Co. Inc.
SAFE Credit Union
Micron Technology Inc.
San Ramon Valley Fire Protection District
Sims Recycling Solutions
$5,000 – $9,999
Exxon Mobil Corp.
Five Star Bank
Constellation Brands Inc.
DLA Piper US LLP
Greenberg Traurig LLP
Bank of the West
Murphy Austin Adams Schoenfeld LLP
Page Design Group
Deloitte & Touche LLP
Marrone Bio Innovations
Diageo Chateau & Estate Wines Co.
The Herbst Foundation Inc.
Napa Valley Community Foundation
Northern Trust Corp.
Nugget Markets Inc.
UP TO $499
Wells Fargo and Co.
Owen~Dunn Insurance Services
A to Z Wineworks & REX Hill
Wine Industry Symposium Group
Pernod Ricard USA
Adobe Systems Inc.
Saverglass Inc. SMUD
40 W I N T E R 2013 I N N OVATO R
Pinnacle Telecommunications Inc.
Wavepoint Ventures LLC
Mirsona Inc. Nissan Technical Center North America Potter’s Fine Foods Rowy Networks Ruhstaller Brewery/Gilt Edge LLC Sacramento River Cats Baseball Club LLC SanDisk Corp. Sonoma-Cutrer Vineyards Wetherby Asset Management xMatters inc.
*Gifts and pledges received from July 1, 2011, through June 30, 2012.
The UC Davis Graduate School of Management
extends a special thank you to our generous donors who supported a variety of priority initiatives during the 2011–2012 fiscal year. We are pleased to share that the School received nearly $3.2 million in cash, pledges and in-kind donations from more than 700 donors. We sincerely appreciate your support. Your contributions are invested in the School, resulting in significant enhancements to further its mission of preparing leaders for global impact.
Michael 76 & Renee Child 76
Nancy M. Child
$100,000 The Estate of Victor C. Chu, Ph.D.
$5,000 – $9,999
Anthony Cameron Steven C. & Cheyenne X.Y.Z. Currall Paul & Eva Griffin Robert 69, MA 71 & Sandy Lorber
Linda & Nate Oubré
Jerry Suran & Helen Singer Suran Frank & Kim Washington 85, MAD 89
MBA 01 MBA 98
James D. Peterson
& Julie Ku
95, MBA 99
92, MBA 94
$1,000 – $4,999 EXECUTIVE CIRCLE MEMBERS
Kate Renwick-Espinosa 91
Peter Algert Emi Ashida
Kevin 72 & Kim Bacon 79
& Dana Woodall
Wayne 64, JD 71 & Jacque Bartholomew 64
Nicole Woolsey Biggart
Gary Angelo Jeff Ansley
90, MBA 99
05, MBA 11
93, MBA 98 MBA 04
87, MBA 96
MBA 06, Ph.D. 08
James & Carol Sullivan
89, MBA 91
Michael S. Shearer
Sonja Hongisto Bowman
04, MBA 11 MBA 12
78, MAD 83
David Heinsen & Beth Wigen
94, MBA 00
Raymond Austin 92, MBA 00
Fernando Ortiz de Zevallos
94, MBA 01
Maggie Devany MBA 07
James Nguyen Joh Olson
92, MBA 02
Joel De Guzman
MS 93, MBA 93
& Tracy Chin
Mary Monahan Van Dyke
Tara Colombani Perkins
Joncarlo Mark Brian Miller
97, MBA 01
Danielle 01, MBA 07 & Curtis Mann 02, Tanya Clark Marston
97, MBA 00
05, MBA 10
Graciela Casebeer* Aaron
Cecelia Lakatos Sullivan Gary Lew
97, MBA 03, MS 08
Dan Kennedy Jim Kroger
06, MBA 11
Gordon Hunt, Jr.
Wil & Mary Agatstein
& Yvette Hatton
Pam Marrone & Mick Rogers
92, MBA 99
May Ngai Seeman
& Joy Faletti
Eamonn 83 & Kathleen Dolan
Terry Exner MBA 09 MAD 89
Arthur A. & Carlyse Ciocca
91, MBA 04
Jeanne Eliades Dan 87,
85, MBA 91
Chih-Ling Tsai & Angela Liao Alex Tsao
Emma VanGenderen Sekhar Varanasi Aimee
Nikki Wong Tim Wood
& Nate Whaley MBA 01 MBA 12
U C D AV I S G RA D U ATE SCHOOL O F M ANAGEM ENT 4 1
IN APPRECIATION UP TO $499
Charles Abernethy Jill Abrams
Josiah Adams Scott Adler
03, MBA 12
Wendy 98, MBA 04 & Jimmy Forester
03, MBA 09
MBA 01 05, MBA 10
Betsey Archer John Argo
99, MBA 05
86, MBA 90
Stephanie Bardwell MBA 12
98, MBA 01
03, MBA 07
Andy Barkett Eric Barnes
05, MBA 07
01, MBA 08
Blake Belanger Jason Bell
Robert Berry Sean Bertain
Megan Conway Bley Cindy
Quentin Brown Chris Brunger Aaron Burda Rich Buxton Lisa Calub
Marie Chaisson Mitch Chan
MBA 12 03, MBA 09
Elena Chavez Carey
Wei-Ling Cheng Yafei Cheng
42 W I N T E R 2013 I N N OVATO R
Andy Fagan, CFA
Leigh Ann Hartman & Nate Williams Brendan Hartney
06, MBA 12 05, MBA 11
MBA 93 96, MBA 02
05, MBA 12
02, MBA 07
Brent Hillberg Roger Hom
98, MBA 11
00, MBA 11
04, MBA 11 MBA 02
Andrea S. Henderson
02, MBA 07
Aimee Hagen Posanka
Alice Kessler Rollins MAD 87 & Richard Rollins 81, MAD 87
Rajesh Kamath Mona Kamdjou Eric Karlson
Manav Gupta* Ujvalla Gupta
James T. Kelly MBA 10 & Sue Glassford
Marianne Chatterton Christine Chen
01, MBA 12
Jeff Chang* Krystal Chang
07, MBA 12
Collin A. Casper
82, MAD 86
Dana Letson Carpenter Jessica Carter
05, MBA 08
80, MBA 03
03, MBA 12
94, MBA 01
Margaret (Peg) Dentlinger
Yeong Juang MBA 11
MS 11, MBA 11
Carrie E. Gordon
Elizabeth Jones Gail Jones Jesson Joy
Michael Brosler Heather Brown
00, MBA 12
04, MBA 11
& Rich Bollini
90, MBA 99
Stacey Westra Johnson T.J. Johnson
Noemi Danao-Schroeder MBA 04, MS 05
97, MBA 08
04, MBA 12
Regis Geisler, III
82, MAD 87
Maggie Jackson Gaurav Jain
95, MS 99, MBA 99
MBA 11 MBA 12
Sean Foster Jen Frase
Rich Armstrong Pej Azarm
Danny Hwang Osama Idrees
Nick Chladek James Chou
04, MBA 11
Silvia Chiang Eric Choi
Alli Lathrope Tom Lau
Gabriela Lee Jane C. Lee
MS 04, MBA 04
95, MBA 99
Seon Jin Lee
Wayne Leighty Kathy Lelevier Keith Leung
MS 10, MBA 10, Ph.D. 10
IN APPRECIATION Steven Levine Yotam Levine Paula Levy
JD 99, MBA 99
86, MBA 91
03, MBA 08
Jonathan Lieberman 07,
JD 11, MBA 11
Jennie Lieu James Lin Larry Liu
98, MBA 11
Gaurav Malik Sean Martin
MBA 99 MBA 99
Patrick Matchell Jaime Mathews
JD 11, MBA 11
Sue Miller-Sylvia Becky
85, MBA 90
05, MBA 09
07, MBA 12
06, MBA 12
Tomas Sudnius Greg Sutliff
03, MBA 12 MBA 11
Ross Murray Marge
79, MAD 83
& Alan Nager
07, MBA 11
Paige O’Connell Erol Odabasi
03, MBA 07
02, MBA 11
04, MS 06, MBA 10
Ramana Thatavarthi Chris Thoma
& Gabriel Wolosin
Shamson Wong Calvin Woo
MBA 12 MBA 12
Tsungyin Yeh Kitty Yeung
01, MBA 08
MBA 01 98
93, MBA 00
Jasper Yu MBA 05
07, MBA 11
75, MBA 94
Bob MBA 94 & Cathy O’Sullivan
Lucia Noh* Jason Noma
Vinod Tekkale David Thayer
MS 05, MBA 07
George Robertson 08,
05, MBA 11
Ben Nicholson* Isamu Nigro
Thomas Nelson MBA 07 & Judith Redmond 81, Daniel Ng
MS 04, MBA 04
Nicole Ricci McNelly MBA 99 Isaac Riffelmacher
Chandra Nayak* Todd A. Needham
David Warter Adam Waters
JD 08, MBA 08
MS 00, MBA 01
Jim Stevens Mike Stock
05, MBA 12
Joe Monteleone Alex J. Morris
& Rob Milstrey
Donald R. Smith
03, MBA 05
& Michael Wall
74, MBA 92
& Toni Poppe
04, MBA 08
02, MBA 12
MS 81, MAD 86, Ph.D. 87
85, MAD 89
81, MBA 99
72, MS 75, MBA 88
08, MBA 12
Alicia J. Volkov
96, MBA 12
05, MBA 12
92, MBA 00
Jeffrey Pitel Josh
MBA 12 MBA 11
05, MBA 11
Marcus J. Seiden
Jacob Fossar Petersen
Damien Mar Chong Ted Martinez
Linda U. 04,
& Matt Schroeder
00, MBA 08
07, MBA 12
Brian Park* Anish Patankar
Mark Lopez David Luk
Michael P. Schatz
Andrew Park* Steven Park
Vivian Liu Jen Long
02, MBA 10
Erdem Onur Savasir
John W. Toney
Julie & Wil Saqueton
Natalie Overstreet Lias Chris Lief
MS 04, MBA 10
06, MBA 12
01, MBA 07
Anup Samantaray Celia Samuelson
We strive to ensure accuracy when listing benefactors who made gifts and pledges from July 1, 2011, through June 30, 2012. If there is an error or you wish to make a change, please call (530) 754-6939 or email develop @gsm.ucdavis.edu.
U C D AV I S G RA D U ATE SCHOOL O F M ANAGEM ENT 4 3
Class Notes 1985 Danni Dunn: I retired from Ernst & Young. Now I am considering what to do when I grow up.
1988 Paul Reinhart: Just boring ol’ retirement with lots of tennis, travel and volunteering.
1989 Cheri Johnson: I returned to real estate in 2012 after 10 years budgeting billions of dollars for Medi-Cal, writing regulations for new legislation, supervising, etc. My new position as senior real estate officer for California’s Department of General Services involves a promotion, with no staff, and a nice view of the Sacramento River. I approve or reject the appraised value of property. We get a lot of fake or incompetent appraisals, so the work keeps me busy.
1995 Bill Rhyne: In January 2012, I started work as a full-time assistant professor in the School of Business and Management at Notre Dame de Namur University in Belmont, Calif. Visit my classes to share your career experiences. My Hawaiian band, Da Puna Bruddahs, is performing at Sonoma County wineries, restaurants and corporate events. Come experience “the Aloha.”
1998 Brian Berry: In my 12th year at Intel managing the Supply-Demand Alignment Team for Chipsets Planning. Rob Bremault: In October, I departed from an 18-month position with a software firm that was subsequently re-acquired by the original Australian owners. On a trip to Kauai, I took a leap of faith zip-lining over canyons with my wife and son. I took a seasonal position with Costco in Folsom, baking nearly 7,000 pumpkin, apple and pecan pies; I then spent 3 weeks rounding up shopping carts in the parking lot, and lost 20 pounds. I completed an energy consulting project for a local engineering firm, and hope to find a permanent position in the Sacramento region. Phoebe Cameron: I am still working for Gartner as a consultant in our Energy and Utilities practice, focusing on IT strategy, IT organization design, organizational change management and more. I caught up with Maria Rodriguez and Carrie Douglas Fong at Beth Ashkin’s latke party. Ethan Cooke: I’m firmly rooted in San Francisco, working in human resources at Blue Shield, where I’m leading the company’s employee engagement program. Life is good with my wife, Clara, and our daughters, Ariana, 10, and Lindsey, 7. We are healthy and grateful. We get together regularly with Elaine Chan MBA 98 and her husband Steve, who live in Cupertino with their boys, Clark and Kenton. I wish all the best to my former classmates and would be happy to connect with you.
44 W I N T E R 2013 I N N OVATO R
Kevin Crow: I am still working at Intel Corp. and am now in marketing. Last summer I took my second sabbatical, including a family trip to Europe, co-leading two Scout camps, upgrading my coaching license and building a new PC. For the past few years I’ve been working on a new storage category—solid-state drives. Linda is doing fine and working part time in addition to keeping up with a range of activities. The Crow house definitely misses the great fiestas we had. I occasionally bump into the Broers and Brian Berry, who is also at Intel. I work with Max Simmons MBA 97 on a regular basis. Andy Rolleri: I’m still with Prima Games, now as associate publisher. With the move to digital publishing and app production, I’m learning quite a bit about new media. Our parent company, Random House, is going through a merger with Penguin Books, which will create the world’s largest book publisher. Paige Ruffner: I am still with IBM (formerly PricewaterhouseCoopers consulting), working as an organizational change management consultant and going on my 15th year. I still love living in the Washington, D.C., area. This past year I completed the required coursework, and am earning my experience hours, to become a certified coach through the International Coach Federation. I intend to use my skills for executive coaching while working for IBM and establishing a personal life coaching business, Life Spring LLC. My goal is to leave consulting once my son and stepsons are done with high school/college, then “retire“ as a life coach. Josephine Suryono and Ationg Lie: Josephine left Hewlett-Packard 6 years ago and opened a children entertainment franchise business called BounceU, which is very non-high-tech. We have two successful locations: Roseville and Rancho Cordova, Calif. Ationg is still working at H-P as a software engineer. It’s a nice balance to have him working for a big corporation with steady income and great benefits and still have time to help with the business. Lee Zheng: It’s a super busy time for us, and we’ve just had another record year. It’s an interesting and exciting time to be in Hong Kong and China.
2000 Aaron Chin: Our kids are both in school. Woohoo! No more paying for daycare. I’ve worked 13 years now at Intel as a business/software analyst. And, for 12 straight years, I’ve played on the same basketball/softball team with Joncarlo Mark MBA 00, Bob Blyth MBA 00 and Max Simmons MBA 99.
2007 Sara Happe: Brett and I welcomed our daughter, Piper, in January 2012. We are still living in the San Francisco south bay. Brett is working for an IT consulting company, and I am still working for Intel, supporting the corporate marketing team. I celebrated my 5-year anniversary there in July.
Paige O’Connell: In September, Mike and I welcomed our baby girl, Zoe Mae O’Connell. I’m back at work, in a new expanded role at Blue Shield of California.
2008 Fabiana Alves: My oldest son, JP, is attending a business program at a renowned university. He aims at being involved with culture production, social projects and events. He made his first trip to Europe as an assistant for a rock band. I have completed nearly 5 years with Rabobank, where I play distinct roles as an executive business manager and as the head of the advisory department. Last year we faced big challenges in terms of competition, but we are still in our growth path, having achieved $2 billion assets within our 750 rural clients, which are the biggest farmers in Brazil. Our advisory projects have grown in scope and complexity. Family business governance is booming in Brazil and has been incorporated in our consultancy. We are working on a family company that operates 250 thousand hectares and is one of the biggest soybean and cotton producers in Brazil. In 2013, I hope for as many achievements as 2012, but a calmer year. Dakota Coe: Shannon and I welcomed our daughter, Savanna, in December 2012. Dania Stotts: I am at Kaiser Permanente, enjoying the challenge of being an executive consultant and advising health plan executives on sales and account management strategy. I recently returned from a trip to northern Thailand, where I made friends with the elephants and loved watching muay Thai boxing.
2011 Jonathan Lieberman: I recently moved to Locke Lord LLP in San Francisco, where my practice will focus on complex financial transactions and consumer finance litigation. Andrew Perroy: Howdy from the East Coast – Philadelphia that is. I tried to bring the California weather with me but got awarded a hurricane. Ellie moved to D.C. and got a once-in-a-lifetime earthquake, one of the hottest summers and rainiest years on record. After a tough job hunt, I landed a great role in my sweet spot of music and entertainment as the director of marketing at a company that manufactures and distributes independent content (music, film and books). They put me in charge of an ailing multi-milliondollar brand and said, “You’ve got an MBA, figure it out. We’ve got high expectations.” That’s a gut check, but Professor Tsai, don’t worry. I just built their first forecasting and performance models. I’m even going to use them to release an album from my old heavy metal band. With every new challenge I face, I use the experience I gained at the GSM and remember all the good stuff and smile.
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Medical Vision Technology Sample S ample
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GSMAA President Wells Fargo and Co.
Jules Hodder Sample S ample
Halulani & Associates/ Epiphany Partners
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Vx Capital Partners
Jennifer Pockell-Wilson Sample Sample
GSMAA Secretary Eloqua Desig
ned by FCC ID: Apple in Califor BCG E259 ni 9A IC: 57 a Assembled in 8G E258 China M MBA 99 9A IMEL odel A1 328 001018 100010 18
GSMAA Vice President EchoFirst Inc. Sample
d by Ap Bill VasquezFCMBA C ID: BC00ple in Californi G E2599A a Assem IC: 578G
Sims Recycling Solutions
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EX -O F F I C I O M EM B E RS
Mary Maffly GSMAA Executive Director Director of Development and Alumni Relations
Alumni On-the-Move Tell us about your career accomplishments, promotions, awards, accolades or career switch, including the details. Weâ€™ll feature these in the Accelerator e-newsletter and in the next Innovator.
Online Alumni Directory Please continue to keep your profile updated @
Professor Michael Maher Faculty Representative
Daytime MBA Student Representative
Online Events Calendar
Find details on all upcoming events @
Bay Area MBA Student Representative
Sacramento MBA Student Representative
Your One-Stop Alumni Resource Center www.gsm.ucdavis.edu/alumniresource-center
The GSMAA is governed by a group of alumni volunteers who serve on the board of directors. The board meets at least three times a year to ensure that alumni have a strong voice in the ongoing growth and development of the School.
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