Perspectives Summer 2017

COLLEGE OF BUSINESS

Perspectives UN IV ER SIT Y OF I LLI NOIS AT U RB AN A- CH AM PAIG N

GOING PLACES

SUMMER 2017

COLLEGE DELIVERS INNOVATION IN ONLINE LEARNING

“In our College, we’re

I

nnovation has two very important components: the creative thinking that results in new ideas and

[ CONTENTS ]

the thoughtful execution of those ideas. In our College, we’re committed to both steps, engaging

students, faculty, and alumni partners in idea generation and implementation. It’s a process that allows us not only to teach innovation but to practice it, too.

students, faculty, and alumni partners in idea generation and

In this issue of Perspectives, you’ll read about some of the results of that commitment. Creative thinking led us to become the first College of Business to offer an online MBA. As we executed on that innovative vision, we took the additional steps of adding state-of-the-art digital studios to ensure an exceptional online delivery option for our faculty and students.

We’ve taken the same approach with on-campus learning as we envision new ways to provide

implementation. It’s a

more opportunities for students beyond the classroom. For instance, our Action Learning initiative offers undergraduates and MBA students project-based learning experiences. It’s an opportunity for them to

process that allows us not

gain real-world experience, testing and applying their academic knowledge and growing their soft skills at the same time.

only to teach innovation but to practice it, too.”

Our Golder Academies offer similar experiences for students in finance, investment banking, and investment management. Generous alumni share their time and their resources to guide students in the career options available in those fields and to offer hands-on learning.

[ MY ] PERSPECTIVE

Another innovative initiative puts our College at the forefront of the big data movement. The Center for Business Analytics, a partnership between the College, Deloitte, and the Deloitte Foundation, will be a game changer. By creating curricula that will focus on data analytics, we will be preparing our students for the future, a future where change happens quickly.

We’re ready for that future. The commitment of our faculty, our alumni, and our partners to teaching and practicing innovation means our students will be ready, too. .

COLLEGE OF BUSINESS

Perspectives 2

At Your Fingertips

8

Big Data = Big Deal

How the College delivers innovation in online learning.

New business analytics curriculum will prepare students for the future of auditing.

16

Standing Out from the Crowd

24

Students Bank on Golder Academies

How Action Learning provides a differentiating experience.

Three academies offer advanced academic and career-building opportunities.

DEAn Jeffrey R. Brown MAnAGInG EDITOR Mary Kay Dailey

Jeffrey R. Brown Josef and Margot Lakonishok Professor of Business and Dean

EDITOR Cathy Lockman COnTRIBUTInG WRITERS Tom Hanlon Celeste Huttes Cathy Lockman

SHORT TAKES

PHOTOGRAPHERS Tricia Koning Thompson • McClellan Photography DESIGnER Pat Mayer

ON THE COVER The commitment by the College of Business to delivering online learning means students like Alyssa Harder can complete coursework where and when it works for them. Harder is a student in the iMBA program, the College’s innovative online MBA degree.

We welcome your perspective, too. Send your comments or suggestions for future articles to our managing editor, Mary Kay Dailey, at mkdailey@illinois.edu.

PROOFREADER Anne McKinney

Perspectives has been named a Circle of Excellence Bronze Award winner by the Council for Advancement and Support of Education and an Award of Excellence winner by the University & College Designers Association. www.business.illinois.edu

SUMMER 2017

committed to engaging

6

Reality Check

8

Taking Our Qs

14

60-Second Profile

20

The Main Event

22

100 Words or Less

The University of Illinois at Urbana-Champaign is an equal opportunity, affirmative action institution.

Printed on recycled paper with soybean ink.

[TECHnOLOGy ]

T

At Your Fingertips COLLEGE DELIVERS INNOVATION IN ONLINE LEARNING

iming is everything—just ask Norma Scagnoli. A lifelong champion of adult learning, Scagnoli has overseen the College’s expanding commitment to online learning since starting her job in the eLearning office in 2007. What started with small steps culminated in a giant leap.

“The 2015 Centennial provided an opportunity for the College to consider where the next 100 years of business education would take us, and everyone was inspired by possibilities,” says Scagnoli. “The interest to reach a population outside of campus was there, and the opportunity to do so in a new, innovative way was there. It was the perfect storm.”

At the eye of that storm is a groundbreaking online Master of Business Administration program (the “iMBA”), which gives qualified students around the world access to a premier, Illinois business degree.

PAVING THE WAY To pave the way for that pivotal new program, the College first took smaller steps into cyberspace.

In 2008 the College debuted its first “blended learning” course, where instructors videotape weekly lectures for students to view before class. This allows more classroom time for dynamic discussions and questions.

The College took the next step in 2010 by introducing an online Business minor that resolved a practical issue involving space.

2

business.illinois.edu

“It’s good for the College to provide an opportunity for people who can’t afford to leave their job or their country to come to campus.”

Norma Scagnoli

“For years, the interest was there in a Business minor, but there was not enough physical space to meet the demand,” says Scagnoli. “This program was a great kick-start for eLearning activities at the College.

It allowed more instructors to consider the benefits of and the methods to implementing online learning opportunities.”

Next, the College set its sights on large-enrollment courses, partnering with Coursera to offer its first Massive Open Online Course in 2013.

Known as MOOCs, these courses

are available on demand to anyone, anywhere—for free.

“This allowed us to engage a whole new population interested in learning,” says Scagnoli. “It’s good for the College to provide an opportunity for people who can’t afford to leave their job or their country to come to campus.”

If they choose, Coursera learners can pay a modest fee for a certificate of completion in an individual course or a specialization. Those interested in a higher level of engagement can apply for acceptance as

Illinois students, pay by credit hour, and receive credit for completing a Coursera course in a specified time frame—maybe even build up to the iMBA. Scagnoli applauds Coursera’s flexible format.

“MOOCs are really novel from a design point of view. Students can start with subjects that they can apply right away,” she says. “It’s so important to meet our learners where they are.”

Doing so often requires instructors to rethink a course they have taught for years in a conventional classroom. Scagnoli begins by asking faculty how they would explain their course to a person on the street.

“Often faculty struggle to describe their course in a two-minute elevator pitch,” she says. “They are always ready to explain it in academic terms, but they have to be able to tell the story at a different level.”

Based on the overwhelmingly positive response to its first Coursera offering—Subsistence Marketplaces—the College began looking to add to its online catalog.

“Students took this class from cyber cafés in Honduras, Uganda— all over the world—and they were so thankful for the knowledge given to them for free,” says Scagnoli. “People around the world seem to have a common interest in learning about business.”

And from a business perspective, MOOCs make a great marketing

College of Business I University of Illinois at Urbana-Champaign

3

tool. The College’s Coursera courses have reached more than 950,000 course visitors; of those, 470,000 students have enrolled and more than 260,000 are currently active learners. In addition, 27,000 verified certificates have been issued.

“By making each course and each interaction with a learner a successful and rewarding experience, we inspire people to become part of the Illinois family,” says Scagnoli.

That family seems destined to grow, considering that the College’s online offerings now number 30 and have been taken by more than one million people around the world.

FULL SPEED AHEAD: IMBA Using Coursera as a platform, the College launched its pioneering online iMBA program in 2016, drawing 1,100 applicants. The 270 students accepted into the rigorous, highly interactive program represent 23 countries. On average, they are 37 years old, with 12 years of work experience.

“The iMBA is the real deal. It’s the same curriculum, content, and professors, and the diploma carries the same weight as our residential, executive, and professional MBA programs,” says John Tubbs, digital media manager.

Even better, with a price tag around $22,000, that quality comes at far less cost than a traditional MBA degree—at Illinois or its competitors.

4 business.illinois.edu

Flexible, affordable, and entirely online, the iMBA levels the playing field in terms of cost, age, and geography.

“The iMBA is a big success. No one has a program like this in the nation,” says Scagnoli.

It is, in fact, working so well that it’s already inspired two new graduate programs, the master’s in computer science and the master’s in accounting.

INVESTING IN INNOVATION To create educational innovations like the iMBA, the College must put money where its mission is.

“Innovation takes an investment. We have to match the teaching tool with the quality of our instructors,” says Tubbs. “In my 20 years on campus, I’ve never had this kind of support.”

Since 2014, the eLearning team has nearly tripled in size and includes experts in instructional design, digital media, videography, graphic design, and data analysis— not to mention an army of teaching assistants who gain cutting-edge experience.

The College has also constructed three new state-of-the-art studios featuring multiple cameras, green screens, teleprompters, and sets that can morph to meet the instructor’s needs—from a stand-and-deliver lecture to a Johnny Carson-style talk show or Charlie Rose roundtable.

“We treat each live class like a TV broadcast, says Tubbs. “Our people follow the action with video technology, which provides a sense of movement for the student.”

In contrast to the College’s early experiments in online education, today’s technology allows for dynamic discussion and debate.

For example, during live iMBA lectures, cutting-edge ZOOM online meeting software allows the instructor to see a random sampling of 25 students’ faces on a 32-inch monitor just a few feet away. That provides enough detail for professors to read non-verbal cues indicating clarity or confusion, just as they do in a faceto-face environment. A second screen is devoted to the “active speaker”—a student who is making a point or asking a question at any given moment.

“The professor has direct engagement with students as they chat or argue a case. It’s eyeball-to-eyeball,” says Tubbs.

Digital whiteboards provide additional presentation opportunities. “With these large touch screens, instructors are able to present visual content, manipulate it with their hands, and freehand draw with the digital stylus,” says Tubbs. “It’s like Anderson Cooper on election night.”

The video team also controls up to eight additional screens that allow faculty to present and interact with

Excel charts, PowerPoint slides, and other visual aids. A studio director keeps things on track so instructors can focus on what they do best.

Teaching assistants field housekeeping questions offline, introducing relevant comments or questions into the formal conversation when appropriate.

Thanks to teamwork and continually evolving (and more affordable) technology, “we can do such magical things—things we couldn’t do five or ten years ago,” says Tubbs.

Some of the video team’s most engaging work takes place in what Tubbs considers his fourth studio: the Business Instructional Facility (BIF).

With courtyard views and a bright, bustling atrium, the three-story, LEED-platinum-certified building makes a beautiful backdrop for minilectures on timely topics, roundtable discussions, and faculty announcements.

“BIF is an iconic structure on campus—it’s beautiful and cutting edge,” he says. “Some students will never come to campus, so we bring the campus to them.”

Tubbs and his team also take the show on the road, following faculty to local landmarks and hot spots such as Murphy’s Pub or the Virginia Theatre, to tape weekly updates for iMBA courses.

“We want Illinois courses to be memorable, fun, and interesting,” says Tubbs, who aims to develop a

“We treat each live class like a TV broadcast.

Our people follow the action with video technology, which provides a sense of movement for the student.”

John Tubbs strong digital media brand. “We want online students to be able to say, ‘that’s Illinois.’”

ONLINE BY DESIGN Developing those courses is an art in itself. And it all begins at the end.

“The sequence of the course is so crucial. We take the outcomes— what the student needs to know to pass the course—and build the course from there,” says Scagnoli.

“We have to explain to faculty that

they do not have to replicate what they do face-to-face, but use the advantages provided by the new delivery methods.”

As content is developed, the team helps faculty navigate their own learning curve.

“Our job is to help faculty feel comfortable doing something completely new,” says Tubbs, who assigns a dedicated videographer to work with each faculty member throughout the six-month course design process.

Student expectations in a virtual classroom differ, too.

For example, “online students need constant feedback. This means you don’t want to leave 50 percent of the grade for the final exam,” says Scagnoli, who works with faculty to spread assessments more evenly throughout the class.

Tubbs’s team of graphic designers and videographers go to great lengths to add the visual appeal demanded by today’s online learner— from the illusion of dinosaurs crawling out of an iPad to an overthe-top splash graphic to accompany the blooper-style “Awkward Moment” feature in Finance Professor Scott Weisbenner’s Investment class.

“Peoples’ expectations of web media are extremely high,” he says.

“If a seven-year-old can produce something that gets millions of hits on YouTube, it means everyone has to up their game—higher education included.”

Faculty do their part, too, unleashing their imaginations to deliver hard-core content in a light-hearted way. For example, Weisbenner has donned a Darth Vader costume for a light saber duel and transformed himself into a naïve poker player in a Humphrey Bogart-style black-and-white noir scene to illustrate key points about the world of finance.

EDUCATION FOR ALL Visionary though he was, when President Abraham Lincoln signed the Land Grant College Act in 1862, he could not have foreseen that his vision for public, practical education would gain ground in cyberspace.

Tubbs sees opportunities to reach an even wider audience by curating the College’s ever-growing video library.

“We put a lot of resources into producing super high-quality content. A lot of that can be used in other formats to benefit students, alumni, and the public,” he says.

“Our challenge in 2017 is to organize, curate, and present content in a strategic, meaningful way so we can open the flood gates.”

No one is happier about that than Scagnoli, whose first job— teaching English at night to hardworking Argentinians during the Malvinas War—ignited a passion for adult learning.

“It doesn’t matter how old someone is or where they live, online learning gives people opportunities to go beyond their circumstances to get an education,” says Scagnoli.

“Our College has made and continues to make a commitment to excellence, creativity, and innovation in delivering exceptional business education in the classroom and online.”

Celeste Huttes

•

College of Business I University of Illinois at Urbana-Champaign

5

[ REALITy CHECK ]

The sky’s the limit?

The Reality Check

The Reality

H

ow did we get here? The U.S. Constitution gives Congress the power “to borrow

E

veryone has an obligation to pay their bills in full and on time, and often that means borrowing money. It’s true for consumers, and it’s true for the U.S. government. And just like your credit card company or bank puts a limit on the

amount of money you can borrow, Congress sets a ceiling on the debt the government can incur. While those companies that extend credit to you may not be inclined to keep raising your limit, Congress often has no choice since the payments that need to be made are for services or entitlement benefits already approved by its members.

According to testimony presented in 2016 to the House Committee on Financial Services, the debt limit has been increased nearly 20 times since 1993, and the federal debt has ballooned from less than $5 trillion to $19 trillion during that time. That figure continues to rise as a result of the Bipartisan Budget Act of 2015, which suspended the

debt limit until 2017. That suspension allows the Treasury Department to borrow as needed to pay bills without regard to the ceiling Congress established.

money on the credit of the United States,” and until 1917 Congress approved each bond issued by the federal government. During World War I, Congress

passed the Second Liberty Bond Act, which gave the U.S. Treasury more flexibility to borrow without seeking Congressional approval each time, but it also established a ceiling limiting the amounts that could be borrowed.

According to Professor George Pennacchi, the Bailey Memorial Chair of Money, Banking, and Finance, the method for raising the U.S. debt ceiling has varied over time.

For example, from 1979 to 1995, Congress adopted the (Congressman Dick) “Gephardt Rule” that automatically raised the ceiling when a budget was passed. Thus, approved appropriations were linked to funds for paying them. However, in 1995 President Clinton vetoed the budget of the Republican-controlled Congress, and a debt ceiling standoff ensued.

“The debt ceiling is more contentious when different parties control the Presidency and Congress,” says Pennacchi. “The Executive branch favors a unilateral rise in the ceiling, while the Legislative branch sometimes objects. Individuals’ opinions can change depending on their current position: Senator Obama voted against raising the debt ceiling in 2006 but thought it was irresponsible not to do so as President.”

Debt ceiling standoffs are also more likely when the country continues to run budget deficits as a result of politicians finding it easier to increase spending or cut taxes rather than raise them. yet sometimes debt ceiling standoffs have ended with the passage of deficit reduction legislation, such as the Budget Control Act of 2011, which was enacted the day before the U.S. Treasury exhausted its borrowing authority.

“A measure of the U.S. debt burden is its debt-to-GDP ratio, which is currently at 104% and projected to worsen as entitlement spending rises with the retirement of baby boomers,” says Pennacchi. “In an ideal world, Congress and the President would agree to a long-term plan to stabilize this ratio, which many economists believe is entering a danger zone. But discussion of the U.S. debt burden was notably absent from the recent presidential campaigns, and March 2017 may be a wake-up call to politicians that delaying fiscal action makes future corrections more painful. To paraphrase Ernest Hemingway, a (nation’s) bankruptcy occurs two ways: ‘Gradually, then suddenly.’”

Denmark is the only other developed country that has a debt ceiling. However, explains Pennacchi, the Danish parliament has always raised it well above the amount of their projected borrowing, and it has not been used as leverage by politicians as it has been in the United States.

“Using the debt ceiling as a political weapon seems insane because a government default would be very costly,” he says. “It may be analogous to the stockpiling of nuclear

George Pennacchi has been a member of the College of Business finance faculty since 1990. A graduate of Brown University, Pennacchi earned his PhD in economics from MIT in 1984. His research focuses on financial intermediaries and the valuation of fixed-income securities and government guarantees.

A respected author, editor, teacher, and researcher, Pennacchi was named the Bailey Memorial Chair of Money, Banking, and Finance in October 2016.

6

business.illinois.edu

weapons during the Cold War. yet an argument could be made that the threat of nuclear retaliation avoided conventional warfare between the superpowers. Similarly, if the debt ceiling threat mitigates fiscal procrastination, a more costly future debt fiasco might be avoided.”

• Cathy Lockman

College of Business I University of Illinois at Urbana-Champaign

7

[ LEADERSHIP ]

Q

TAKING OUR Qs

On Veteran’s Day 2016, Wilma Vaught returned to campus, where she visited BIF and met with students in Phi Chi Theta, a professional business organization she joined in 1950.

Here, she takes our questions on the responsibilities and challenges of leadership and her vision for success.

Name: Brigadier General Wilma Vaught, USAF, Retired, a 1952 graduate of the College of Business Career: Served in the U.S. Air Force from 1957 to 1985, becoming one of the most highly decorated military women in U.S. history at the time of her retirement Career firsts: The first female in the Air Force to attend the Industrial College of the Armed Forces; the first female to deploy with a bomber unit; and the first female in the military to attain the rank of Brigadier General from the comptroller field Visionary volunteer leadership: Served as president of the Women In Military Service For America Memorial Foundation, which established the memorial at the entrance to Arlington national Cemetery that honors all women who have served in the U.S. Armed Forces

8

business.illinois.edu

Q: Women weren’t allowed to serve as permanent members of the military until 1948, the year you graduated from high school. What influenced your decision to make the military your career?

Brigadier General Vaught: As a child of World War II, I knew that women had served in the military, but I hadn’t thought about serving myself, even though I grew up always being interested in “being in charge.” While I was a student at Illinois, I saw management as the career I wanted to pursue. I once saw military recruiters on campus in the Union and even talked to them, but I thought I’d get turned down because I’m nearsighted. So after graduation, I went to work for Dupont in Indiana, at a government plant that made heavy water for atomic bombs. After five years, I could see that there would be few if any opportunities for a woman to advance to manage-

ment. There were only two women in the corporate organization, and one’s middle name was Dupont.

Mine wasn’t. As I was making my decision to leave, I received a letter from a female Army major suggesting that I consider the military. To this day, I don’t know how she got my name and address. She explained that I could be commissioned as a second lieutenant in the Army Reserve, which sounded like a great opportunity to get the leadership and supervisory experience I was looking for. So I decided to explore if the Air Force had a similar program and see if the Air Force would take me. I went to Rantoul and took the physical. They told me the great education that I received at Illinois enhanced my qualifications, and they gave me a waiver for my vision problems. I reported to Lackland Air Force Base in Texas with 31 other women for three months of officer training, which for us also included “charm training” and how to put on make-up.

Q: What experiences at Illinois helped shape your vision of leadership?

Vaught: I received a tremendous opportunity to interact with faculty members, and I learned so much from them inside and outside the

classroom. I knew almost every one of the commerce instructors, whether they were in economics, accounting, shorthand, or typing.

And they knew me. I was also president of Phi Chi Theta my junior and senior years. That provided me with a leadership opportunity as we worked to increase our membership and serve the College. I also had the chance to be active in sports—I was a fierce ping pong competitor.

Q: Each year, the Air Force selects service members and civilians to receive the Brigadier General Wilma Vaught Visionary Leadership Award. In your career, what leader most influenced you?

Vaught: I grew up in Scottland, Illinois and had a high school English teacher named Mary McCool.

She wanted me to take the scholarship exam for entrance to Illinois so that I could share with her the types of questions on it and she could better help other students in our community prepare for it.

I’d already decided I was going to go to Millikin University in Decatur.

At her urging I went ahead and took the exam. When I heard back that I had gotten the scholarship, I changed course and came to Illinois instead. Others whose leadership, mentorship, and support influenced

me were Lieutenant Colonel Ruth Blind, deputy director of personnel at Barksdale Air Force Base, who took me under her wing and taught me what it meant to be an officer as well as ways to understand and motivate people. Major General Jeanne Holm, a director of women in the Air Force, was a true inspiration as well and helped immeasurably when I began working on the memorial.

And General Al Slay was a leader to end all leaders—with a good sense of humor. I remember his advice during our first staff meeting: “Don’t do anything dumb.”

Q: What qualities do you feel are most important in leading others?

Vaught: I’ve always felt that you have to lead by example. you can’t do it all, but you can’t just be someone who delegates. you have to demonstrate a strong work ethic, because that will motivate those who work for you and will build their trust. That’s especially important in the military because often you’re giving orders and you don’t always have an opportunity to provide explanations of the “why.”

Second, I’d say demonstrate confidence in your subordinates as that will help them develop their leadership abilities. Listening to those you lead is especially impor-

tant. Be honest in all your dealings with people. That’s how you develop a reputation for integrity. And last, a sense of humor is essential.

Sometimes things are so bad that all you can do is laugh and then pick up and move forward.

Q: How would you describe your leadership style?

Vaught: My leadership style developed through a wide variety of assignments from being in charge of a data automation office to working for a wing commander to being in charge of 200 people living in barracks to getting our personnel out of Spain during the Cuban Missile Crisis, if required. Often, because of circumstances, you’re tasked with duties you don’t expect, and you have to be ready to step in and solve problems. The great opportunities I had to observe senior leaders solve problems influenced my leadership style so that I had the chance to implement it when I was asked to lead.

Q: What is your go-to strategy when faced with a difficult decision?

Vaught: If you have the luxury of time, take advantage of it. Don’t act quickly out of excitement or outside pressures. And if you know

someone to turn to for advice, by all means get their input.

Q: What are you most proud of in your service?

Vaught: Two things. In my military career, the highlight was when the wing commander selected me as captain to go to Guam. A woman had never deployed with a Strategic Air Command bombardment wing before. And beyond that, nothing compares with having the opportunity to get the Women In Military Service For America Memorial built.

The nation needed it; the women and their families needed it.

Q: What advice would you give others about finding a fulfilling career?

Vaught: To me, it’s all about defining success for yourself, about finding a balance that brings meaning to your life, and then carrying out your personal and professional life with the utmost integrity. And, in the end, you can say you lived your life for something, instead of nothing. In addition, you can’t have a fulfilling career without a quality education.

There is no substitute for that.

And I got that at the University of Illinois.

College of Business I University of Illinois at Urbana-Champaign

9

Big Data =

[ On THE FOREFROnT ]

Big Deal

ILLINOIS, DELOITTE, AND DELOITTE FOUNDATION TEAM UP TO FORM BUSINESS ANALYTICS CENTER

“Analytics, big data, fundamentally changes the game in terms of how an audit is done.”

Jon Davis

M

att McGrath has noticed a lot of trends in his 14 years with Deloitte Tax—including the increasing need for speed.

McGrath ’01 ACCY, ’02 MS, a tax senior manager, Deloitte Tax LLP, and university relations deputy for Deloitte’s relationship with the University of Illinois, says in his early days with Deloitte Tax, he would meet with a client, ask questions, research the questions, prepare a memorandum, and sit back down with the client to deliver that memorandum.

Today, there is still that same focus on a thorough, collaborative process, but analysis and decision making must be done much more quickly.

“Big data and analytics are going to be able to help with that,” says McGrath.

A SEA CHANGE IN AUDITING Deloitte Foundation, a longtime supporter of the University of Illinois, together with Deloitte’s retired and current partners, principals, managing directors, and employees, have gifted $5 million to the College of Business to create the University of Illinois-Deloitte Foundation Center for Business Analytics. The gift will facilitate the creation of leading-edge business analytics curricula to provide students with the data knowledge,

10

business.illinois.edu

Attending the on-campus announcement of the Illinois-Deloitte Foundation Center for Business Analytics were (left to right): Michael Bondar, Ron Sonenthal, Dean Jeff Brown, Mike Fucci, Sara Klein, Matt McGrath, and Jon Davis.

skills, and abilities they need to become the business leaders of tomorrow.

“We’re modernizing accounting curricula to address the needs of students as they enter the workforce over the next decade,” says Jon Davis, R.C. Evans Endowed Chair in Business and department head of accountancy. “Analytics is happening really fast. The pace with which it’s changing is pretty stunning.

There are massive investments being made right now in public accounting on machine learning and AI” (artificial intelligence).

“What’s happening in auditing is a sea change,” Davis says. “Analytics, big data, fundamentally changes the

game in terms of how an audit is done.”

“SMARTER AUDITING” Sara Klein ’96 ACCY, agrees.

“In audits, we often take a population of transactions and subject it to statistical sampling,” says Klein, audit partner, Deloitte & Touche LLP, and lead university partner for Deloitte’s relationship with Illinois. “Sampling is often random, and you draw a conclusion on the full population based on the results of the sample.”

“Now, we have the ability to use an analytical tool to analyze 100 percent of a population and look for outliers. And then we might separate the population into two parts.”

For the portion of the population that appears normal, you might do a lower level of testing or sampling testing, she says. For the portion that looks abnormal, you might do more extensive sample testing or 100 percent testing.

“We call this ‘smarter auditing’ because we analyze the population using data analytics tools before we commence our audit testing. The results of the data analysis will help drive the planned audit procedures.”

Erica Nelson, another audit partner, Deloitte & Touche LLP, says the organization uses analytics in many areas of the audit, with a particular focus on implementing more thoughtful audit risk assessment

“Deloitte,” as used here, means one or more of Deloitte USA LLP, Deloitte LLP, and their respective subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte USA LLP, Deloitte LLP, and their respective subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

College of Business I University of Illinois at Urbana-Champaign

11

procedures and bringing data to life through visualization to gain insight.

“That way we can continue to focus audit efforts in the areas that matter most,” says Nelson, who leads operations for Deloitte’s Audit Analytics strategy. “We can enhance audit quality and develop insight by using analytics to better tailor further audit procedures.”

“WE’RE IN A DATA ExPLOSION” Robert Brunner, who has a joint faculty appointment in the School of Information Sciences (iSchool) and in the Department of Accountancy in the College of Business, was named director of the Center for Business Analytics. Davis describes Brunner as a “hardcore analytics guy.”

“All students at the university should be getting some exposure to analytics, because we’re in a data explosion,” Brunner says. “Any job you’re going to take will likely be influenced by data at some level, and if you can do something with data, you’re going to be better prepared for the future.

“You can’t make strategic decisions if you don’t know how to think strategically about data. Most business students are familiar with financial data and budget data. But they probably aren’t aware of image data and what you can do with it and what you can do with audio data and what you can do with unstructured text data.”

“All students at the university should be getting some exposure to analytics, because we’re in a data explosion.”

Robert Brunner

NATIONAL IMPACT, ILLINOIS BENEFITS The creation of the Center for Business Analytics, which will be cross-disciplinary, will not only help ready Illinois students for the future, it will have reverberations nationwide.

“The Center will allow Illinois to create, disseminate, and maintain model curricula for faculty that can be made available to other colleges and institutions of higher education,” says Davis. “At the Center, faculty will receive specialized training that will be integrated into existing curriculum and that may be offered

online. Students will benefit because they can participate in national or global case competitions, become involved in organizations that focus on analytics, and in the future be eligible for scholarships and degrees in data analytics.”

While the curricula will be developed for use in universities across the nation, it will bring distinct benefits to the University of Illinois, Brunner says.

“The Center will pioneer approaches for introducing analytics into the business curriculum and show other universities how they can do it and provide resources for

them so they can start tackling the challenges as well,” he says. “And that can obviously benefit the University of Illinois.

“We will take a leadership role at the national and perhaps even global level in business analytics education.

And that’s huge in terms of rankings and in attracting the best students and best faculty. We have a huge benefit in that if the Center is able to achieve what we hope it can achieve, not only will we be sharing the materials and the case studies that we develop, but we’ll be talking around the country with people who are also innovative, and we’ll be able to more easily learn what’s working in other places and improve our curriculum and improve the Center’s mission as well.

“And lastly, as we train more and more students and they go into industries, that will strengthen our ties with businesses.”

CENTER BORN OF NEED Mike Fucci, chairman of the board of Deloitte LLP and Deloitte Foundation chairman, sees a natural fit in the support Deloitte personnel and the Foundation is providing Illinois. "Our organizations share a commitment to developing faculty, cultivating talent, and accelerating education to meet the pace of business,” he says.

Ron Sonenthal, ‘83 ACCY, chief operating officer of Deloitte Tax LLP and Deloitte’s university partner for Illinois advisory matters, notes that:

“Students with an education in STEM disciplines are widely needed in business to help fuel economic growth, create competitive advantage, and drive innovation. Deloitte recognizes the importance of data analytics as a science-led, issue-driven solution to help address these business needs.”

Nelson sees the ability to apply and interpret statistical methods and analytics to turn data into useful insights and using data visualizations to present data in a meaningful way as key skills for current students to acquire. “Those will be tablestakes for future business graduates,” she says. “Developing those critical skills will help pave the way to a successful career start for tomorrow’s graduates.”

Klein says this skill set is critical and sees business analytics as the next study path for students.

“I think certainly in the audit profession, we are going to see our clients starting to use analytics as well,” she says. “In the audit profession, we will use analytics not just to solve problems, but as a basic functional tool.”

PREPARING STUDENTS FOR THE FUTURE Brunner notes that while business analytics itself is not new, the way companies can leverage it now is quite new.

“The world is dramatically changing, and the role of the university is to prepare students for that

future,” he says. “And in some sense it could be a scary thing, right? We’re not even sure what we need to know. But I think with the vision of [Dean] Jeff Brown and Jon Davis, this Center is going to be in an exciting position to really start staking out this future, determining what the opportunities will be and how we will be able to train these students to take advantage of these opportunities. This is potentially a groundbreaking, dramatic shift in how we do things and in what Illinois will be able to do.

“This is a huge opportunity for us to take a leadership position and really push the envelope. If we’re successful, our students will come out and be revolutionary. We’ll be able to teach the ‘Illinois Way’ more broadly. And that will obviously be impactful.”

And so the “need for speed,” mentioned by McGrath, is being met by business analytics, and the University of Illinois-Deloitte Foundation Center for Business Analytics will help play a critical role in meeting that need.

“Data analytics is going to be a game-changer for a lot of companies,” McGrath says. “It will help them be more forward-looking and predictive in their plans for the global and economic environments that we and our clients operate in today.

“It can allow companies to make decisions faster and to better compete in the global economy.”

Tom Hanlon

•

BUILDING ANALYTICS INTO THE CORE CURRICULUM

A

s academic director of undergraduate programs, Brooke Elliott, Ernst & Young Distinguished Professor in Accounting, oversaw the revision to the existing curriculum.

“We [Elliott and the curriculum committee] talked to students, employers, and alumni,” she says, “and asked them what skills and competencies do you wish our students had and what do you think they’re going to need five years down the road. Overwhelmingly the answer to those questions had something to do with analytics.”

That added fuel to the fire that was already beginning to burn regarding the need for an analytics curriculum.

“Some institutions have begun to move in this space,” Elliott says.

“Some offer master’s programs in business analytics or offer a track in analytics. Not many schools, though, and actually none that I can think of off the top of my head, have a meaningful exposure to business analytics at the core level.”

Elliott sees bringing business analytics into the core as a necessary change to remain competitive. “I would like to say it puts us way ahead of the game, but I don’t think that’s true. If we don’t do it, we’re going to be behind.”

The new University of Illinois-Deloitte Foundation Center for Business Analytics shows that Illinois is clearly committed to analytics, she adds.

“We believe it’s important to recognize the demand from employers and from students, and we are going to be in this space in a real way,” she says. “That Deloitte Foundation and Deloitte Illinois alumni gifted $5 million is a clear signal of commitment. It allows us to have a Center where we can generate resources—not just dollars but in terms of content.”

Elliott is excited about the interdisciplinary aspect of the Center.

“It will be a home for people across the different departments who may be in different disciplines, but we have a common goal to deliver a great series of core foundational business analytics courses to our students,” she says. “I think a lot of times we tend to stay siloed in our departments, which is partially a reflection of our size, because we’re huge.

But if you have a place that brings those individuals together so we all have some common expertise and we also each have individual expertise, great things can happen in terms of coming up with innovative content and innovative delivery mechanisms. I really see that as one of the main advantages of the Center.”

•

12

business.illinois.edu

College of Business I University of Illinois at Urbana-Champaign

13

MBA ‘16

Andrew Tokarz

[ 60-SECOnD PROFILE ]

55

The number of employees at Apervita, a marketplace for data analytics in health care, where Andrew Tokarz serves as the company’s business development specialist; he was the first employee hired by the CEO when the company was established in 2012

492

36 & 200

The number of students in Andrew’s Executive MBA cohort in 2016 & the number of students in Mike’s MBA cohort in 1973

2006 0

The year the College embarked on the building of the Business Instructional Facility; Andrew and Mike both attended the building’s groundbreaking on April 28

2007

The year Mike was elected one of the 10 Best Corporate Directors in America by the Outstanding Directors Exchange

14

The number of years Mike has served as a board member for Illinois Ventures, an early-stage investment firm established in 2002 that starts and builds businesses based on innovations developed at the University of Illinois

1000+

The number of Black Diamond slopes Andrew and Mike have successfully negotiated together skiing in Vermont over the last 25 years; only one got the better of Andrew when he broke his knee skiing in 2009

1 & 41

MBA ‘73

869

The number of miles between Westchester County ny, where Andrew grew up, and Champaign-Urbana, where he came to study business and psychology 40 years after Mike left campus to begin his career with Continental Illinois

18

The number of years Mike Tokarz worked as a general partner with Kohlberg Kravis Roberts & Co. (KKR), a global private equity firm; in 2002, he founded The Tokarz Group, a private merchant bank

Mike Tokarz

The number of guests at Paul Magelli’s 80th birthday party in Castel di Casio, Italy in 2012; four of those guests were the Tokarz family, Mike, nancy, Andrew, and Justin, who considered the late Dr. Magelli a beloved mentor, teacher, and friend

The number of years of marriage for Andrew and his wife Kelly Ann & for Mike and his wife nancy

14 business.illinois.edu

College of Business I University of Illinois at Urbana-Champaign

15

[InnOVATIOn ]

D

anny Yugsi spent a good chunk of his time each week during the fall semester working as part of an MBA student team on a marketing project for Sandia National Laboratories, a subsidiary of Lockheed Martin.

For Yugsi, a first-year MBA student, the assignment was ideal, because it applied closely to the aerospace industry, an area he wants to pursue as a career.

“We are trying to create a collaboration network between universities and private organizations for the advancement of 3D printing,” Yugsi says. “We’re trying to make it available for industries who can benefit a lot from it, like the aerospace industry.”

Every MBA student is getting that same sort of hands-on experience that Yugsi is getting, spurred by an Action Learning initiative within the College, says Hayden Noel, aca-

demic director of Illinois MBA programs and clinical assistant professor of business administration.

“An ancient Chinese proverb says ‘I hear and I forget, I see and I remember, I do and I understand.’

Action Learning is focused on the importance of learning by doing,” Noel says.

Noel introduced Action Learning labs as part of the curriculum for all MBA students last fall, with the experiential learning integrated throughout all classes. First-year students such as Yugsi and Bridget Haby communicated regularly with their clients, analyzed their client experiences in the classrooms, and talked weekly with an alumni mentor.

“Our alumni mentors are recent graduates of the program,” Haby explains. “It’s really helpful to have someone knowledgeable in the industry paired with your group.”

Standing out from the crowd ACTION LEARNING COVERS LOTS OF GROUND

Brooke Elliott

“It’s not just an academic experience; it is something I can talk about during career fairs or interviews.”

Danny Yugsi

MBA students Danny Yugsi and Bridget Haby

16

business.illinois.edu

“I think it will be a differentiating experience for our students and it will set them apart in the marketplace.”

As Haby was researching MBA programs, she found that most are case-based. "Action Learning is so much more beneficial,” she says, because the case approach is a snapshot in time and doesn't have the complexity, fluidity, or level of analysis required when working with a real-life client. “It took us a long time to identify the issues the company was having. It wasn’t as clear-cut as the cases in our marketing classes. So, it’s really beneficial to work through and figure out what the problem is.”

For Yugsi, it was one of the reasons he chose Illinois for his MBA. “Connecting the topics we learn in the classroom and putting them into practice is something I value,” he says. “I’ve also been able to contact other aerospace companies and create bridges that I hope I can leverage for future job opportuni-

ties. So, it’s not just an academic experience; it is something I can talk about during career fairs or interviews, as was the case during my last interview with Sandia. I feel I’ve gained an understanding of a new industry trend, which is helpful when talking with my potential future employers.”

ACTION LEARNING FOR UNDERGRADS Action Learning is obviously a vital tool and transformative experience for MBA students. But all business students can benefit from experiential learning, and the College is moving to make that happen.

“We’re going through a set of proposed changes to the core curriculum,” says Brooke Elliott, academic director of undergraduate programming and Ernst & Young Distinguished Professor in Account-

ing. Elliott heads a committee that has been analyzing the undergrad curriculum since August 2015. The proposed changes received faculty buy-in last fall and are going through the university approval process now.

“This initiative comes from a demand from both employers and students that we approach action-based learning in a systematic way,” Elliott says. “We have a history of actionbased learning through IBC [Illinois Business Consulting]. It draws students from across campus, grads and undergrads. We have a history of doing it well. So it has been in the works and it’s in our DNA, but we never really thought about how to do it systematically at the undergraduate level.”

THE IBC ExAMPLE Andrew Allen, director of IBC, has been instrumental in pushing the Action Learning initiative forward.

“Two things got this rolling,” Allen says. “First is the history we have in IBC. We’ve been doing hands-on learning for 20 years through IBC, and we’ve built up incredible respect and admiration among employers, recruiters, alumni, and the clients we work with. We know that this leads to better outcomes and careers for students. IBC is the leader in experiential learning, and we’re excited to bring these lessons learned into the classroom for all students.

“Second, Dean [Jeffrey] Brown is a strong advocate for enhancing the student experience. He began conversations about what makes us unique and who we are as a College.”

College of Business I University of Illinois at Urbana-Champaign

17

“THE MOST HANDS-ON PROGRAM IN THE NATION” While other MBA programs may have experiential learning components, none do to the extent that Illinois does, says Hayden noel, academic director of MBA programs. “Our students will be involved in experiential learning projects in all four semesters here,” noel says.

“Since students will be engaged in experiential learning from Day One until they graduate, this will provide us with an advantage in the education marketplace. In addition, our MBA program is becoming more focused on the areas of innovation, technology, and entrepreneurship.

So this new approach to learning will help us with our branding efforts, since we are engaged with projects that have an innovation and entrepreneurship focus.

“These projects will help us stand head and shoulders above our competition when it comes to the experience students have with action learning,” noel says. “We want to be known as the most hands-on program in the nation—one where MBA students have the skill set to hit the ground running when they enter the workplace.”

•

“We want to be known as the most hands-on program in the nation— one where MBA students have the skill set to hit the ground running when they enter the workplace.”

Hayden Noel

18

business.illinois.edu

Allen says those conversations, together with input from the Dean’s Business Council about the kinds of experiences and skills students need to be successful, “have helped contribute to the programs you see us rolling out right now.”

“MESSY BUT VALUABLE LEARNING” What the College proposes to roll out starts with a mandatory class in which Action Learning is a foundational piece for each year of an undergraduate’s four years on campus.

The classes are Business 101, which is already in place, and Business 201 through 401. Michael Bednar, associate professor of business administration, piloted the Business 301 class with Allen.

“The whole course was Action Learning,” Bednar says. “We had several teams, each helping a client solve a real-world organizational problem.

Eventually we’d love to see this be a part of the education that every student gets as an undergrad here, a real-world, client-facing experience.”

Student projects in Bednar and Allen’s class ranged from creating a market for a local entrepreneur to working for a nonprofit organization trying to grow their donor base to helping a large retailer market a line of children’s clothing.

Bednar calls it messy but valuable learning. “As an instructor, you can’t just go in and present the information that you had prepared months in advance,” he explains. “A lot of it is real-time trying to figure out how do we help these students respond to problems that have come up with their clients during the week.

“It’s messy from the students’ side as well because not everything goes in the lockstep order that they would like. In some ways that can be frustrating, but I think that’s one of the benefits of Action Learning: It’s the real world. Not everything happens exactly as you planned. Students have to be adaptive; they have to change plans sometimes on the fly. Those are good skills for students to work on.”

PRACTICAL BENEFITS Action Learning allows students to test and apply their skills and knowledge in a “safe place,” Elliott says. “We can purposely create some of the uncertainties and complexities that they’re likely to face and ask them to apply their knowledge, but in a safe space where it’s fine to make a mistake, and when they do make a mistake, they get immediate feedback,” she explains.

In addition, she says, Action Learning helps students pick up the soft skills—team management, project management, client-facing skills—that they will need.

“Having a systematic approach to offering these courses allows us to layer on those soft skills and to talk about what are the client-facing skills and how do you develop them in the classroom environment,” Elliott says. “Then they can take those skills back to their client project and work on applying them.”

Action Learning also provides a great way for alumni to connect with the College, Elliott says. “I’ve had conversations with many alums, and they’re excited about being involved in the initiative, because they want the opportunity to interact

BENEFITS FOR SPONSORS AND EMPLOYERS

“Students have to be adaptive; they have to change plans sometimes on the fly. Those are good skills for students to work on.”

Michael Bednar with our students, and this provides a platform for them to do so in a very meaningful and real way,” she says.

Allen notes that this past semester, 25 alumni are involved either in mentoring teams or sponsoring projects with their companies.

Alumni who are interested in becoming involved should contact Allen at andrewa@illinois.edu.

SETTING THE COLLEGE APART “Through these new courses, we are ensuring that every student will have a hands-on learning experience,” Allen says. “In addition, we are providing a platform, resources, expertise, and clients to support any faculty who wants to incorporate real-world learning into their classroom. Action Learning will be embedded into the DNA of the College of Business. Students and employers will choose Illinois because of this.

We will be the leader in this space,

and it will be a central part of who we are.”

“No other undergraduate institution does this on a scale that we are going to do it,” Elliott notes.

“The University of Virginia does something similar, but no one else. I think it will be a differentiating experience for our students and it will set them apart in the marketplace.”

Action Learning will not only set the students apart, it will distinguish the College as well, Elliott adds.

“I was part of the College’s strategic planning committee a few years ago,” she says. “One of the top goals that came out of that committee is we want to be a Top 5 undergraduate program. I think that these changes put us on a path to be a Top 5 undergraduate program.

“We have to be out ahead of the game. This allows us to be competitive. It allows us to outpace some of our competitors in a real meaningful way.”

Tom Hanlon

•

Sponsors of Action Learning student projects receive three benefits, says Andrew Allen: solutions, recruiting opportunities, and branding.

“That outside perspective leads to fresh thinking that can solve problems,” he says. “And with recruiting, talent acquisition is super competitive. If you don’t have a big name, it’s hard to get some students to look at you. And it’s difficult to know how effective some students will be by looking at their resume. So companies get a chance to try students out before they hire.”

As for branding, students who either don’t know a company or have a preconceived notion about a company might be surprised once they work for the company on a project, Allen says.

“This is a way for new employers to get their foot in the door at Illinois if they’re willing to provide projects,” says Brooke Elliott. “Students tend to want to work for the sexy firms, and I don’t think they realize that every firm has a diverse set of issues. Students might find passion somewhere that they never anticipated because they had an opportunity to work with a client in a classroom setting.”

•

“Action Learning will be embedded into the DNA of the College of Business.

We will be the leader in this space, and it will be a central part of who we are.”

Andrew Allen

College of Business I University of Illinois at Urbana-Champaign

19

[ THE MAIn EVEnT ]

Celebrating Illini Leadership and Friendship

T

he Fourth Annual Illinois Real Estate Luncheon, hosted by Rho Epsilon and the Illini Real Estate Forum, was held last fall in Chicago. The event provided hundreds of alumni with an opportunity to hear from college leadership as well as keynote speaker Neil Bluhm. A 1959 graduate, Bluhm is a founder and president of JMB Realty Corporation and a founder and managing principal of Walton Street Capital, LLC. He was interviewed by Andrew Wiedner ’04 FIN of the Illini Real Estate Forum.

The luncheon also gave attendees the chance to make new connections and catch up with classmates and old friends.

For Bluhm (pictured above, at middle), that meant enjoying lunch with Judd Malkin ’59 (at left) and Dean Jeffrey Brown (at right). Malkin and Bluhm were roommates during their time in the College of Business as well as founders of JMB Realty Corporation.

20

business.illinois.edu

College of Business I University of Illinois at Urbana-Champaign

21

[ 100 WORDS OR LESS ]

How did the College of Business prepare you for success as a CFO?

Since 2011, the Chicago chapter of Financial Executives International has presented the Chicago CFO of the Year Awards in the public, private, and not-for-profit company categories. More than two dozen College of Business alumni have been recognized as finalists for those awards. Perspectives asked several honorees to share how their experience in the College prepared them for success.

“

After 20 years with KPMG and various other positions, I am currently the CFO for East Balt Bakeries, a $500 million manufacturing company operating in 12 countries.

I find two areas that have greatly contributed to my success. First, the accounting foundation was spectacular from the core accounting courses through the CPA review course led by the legendary Ken Perry. The second would be the preparation to lead an organization, function, or department. The diverse course curriculum and the interactions/discussions with professors prepared you to think on your own, solve problems, and develop your leadership skills and motivation.

”

Dave Watkins ’75 ACCY CFO, East Balt Bakeries

“

The ability to think independently and act decisively are so important as a CFO. Attending a very large university like U of I taught me that it was my responsibility to map out my course load, my living arrangements, and how I spent my time and money. Group projects demanded coordination as well as strong individual input from each participant.

I learned that fact gathering is step 1 of the decision-making process, but choosing a solution and monitoring progress are most important. Inaction can be more harmful. Exposure to U of I professors, diverse curriculum, and hundreds of student organizations really broadened by horizons.

”

Debbie Gregorash ’85 BUSADM CFO, Trust Company of Illinois

“

Whether I’m working with lenders, investors, auditors, or our own Controller, Illinois College of Business alumni are present everywhere in important positions throughout the business community. It doesn’t seem like that long ago that I was at Illinois collaborating with these types of future leaders in the college classroom, learning to work towards a common academic goal. Similarly, as Chief Financial Officer of National Equity Fund, success depends on being able to work with high-caliber individuals to achieve NEF’s goals. The Illinois College of Business laid the foundation and began preparing me for the position of CFO.

”

Alex Denja ’97 ACCY CFO, National Equity Fund

“

Success as a CFO is often a function of intellect, perseverance, and collaboration on a wide range of topics. My time at U of I provided me with a solid foundation in all those areas. The College of Business provided a top-tier education and a challenging environment. However, what made my college experience exceptional was the wide range of campus activities available at U of I. The more involved I became outside the classroom, the better I did in the classroom. My four years living in the Psi Upsilon fraternity house provided a master’s-level education on collaboration and time management.

”

Randy Renn ’84 FIN CFO, Allianz Global Corporate & Specialty

The University of Illinois and the “College “As I look back 40 years later, it was of Business were essentially actually one of the softer skills I where my life started. I came from a town about half the size of the entire enrollment at the ChampaignUrbana campus. The College of Business was rigorous, the environment stimulating with smart and engaged students and teachers. But what I will remember most is the diversity of thought and culture to which I was exposed. It opened my mind and heart to varying views and problem-solving approaches. Today's CFO needs to achieve results through others by using influence and collaboration instead of just the authority of their title. Creating trusting partnerships internally and externally for greater shareholder value would not be possible without my experience at U of I.

learned that benefitted me most: communications. What I learned in the College of Business was how to analyze complex problems or concepts and boil them down to clear and concise messaging. In the age of information overload, people do not have the time to sift through data—they need a clear understanding of the issue at hand. As CFO, I have found this applies to senior management, investors, the Board, and employees. Throughout my coursework at the College of Business this skill was reinforced.

”

Thomas Freyman ’76 ACCY CFO (recently retired), Abbott

”

Kristie Paskvan ’80 ACCY CFO, Mesirow Financial

22

business.illinois.edu

College of Business I University of Illinois at Urbana-Champaign

23

[ ACADEMIC InITIATIVE ]

Students Bank on Golder Academies A

legend in the world of finance, the late Stanley C. Golder ’51 left a legacy that paves the way for future generations of game changers: the Golder Academies.

As co-founder of GTCR (Golder, Thoma, Cressey, Rauner), Golder pioneered today’s private equity industry, where groups of investors raise capital to buy businesses (or majority interests) that can be leveraged into larger businesses.

“Stanley Golder is the father of private equity,” says David Sinow, clinical professor of finance. “Private equity managing partners are smart people who know how to take a business to the next level.”

In 2005, Golder’s family, friends, and fellow alumni raised funds to create the Stanley C. Golder Center for Private Equity and Entrepreneurial Finance at the College of Business. Since then, the Center has evolved into three premier specialty programs. Known collectively as the Golder Academies, they include the Finance Academy, Investment Banking Academy, and Investment Management Academy.

“These Academies grew out of the vision of the Golder family and their supporters. We are indebted to them,” says Sinow, currently academic advisor to the Golder Academies.

All three Academies offer advanced academic and career-building opportunities that position students to hit the ground running in every area of the financial sector—from investment banking and investment management to venture capital, private equity, and corporate finance.

No one would be more pleased at this than Golder himself, who actively taught and mentored future financiers.

“Stanley Golder helped many people succeed in private equity and investment banking,” says Sinow. “If you look at the Golder tree, you’ll see enormously successful people in business, who are also supporters of their colleges and universities as well as other public and private charities.”

AN EDGE FOR ACADEMIC ALL-STARS In students and teachers alike, the Golder Academies attract the best of the best.

“The Golder Academies are very sought-after programs. They attract wonderful students who are motivated and willing to work,” says Sinow. “These are tremendously talented men and women.”

While Academy members are typically finance majors, most pursue double majors — typically in finance and accountancy. You’ll even find a handful of adventuresome engineering majors in the Academies.

Among this elite group are the Golder Scholars, who are nominated based on GPA, service to the college and community, and professor recommendations. Golder Scholars are eligible for scholarships and partici-

pate in additional professional development activities in their fields of interest.

Matching the caliber of students, the Golder Academies are led by distinguished, highly respected professionals. “Our three directors carved out amazing careers in the private sphere before coming to the academic environment to give back,” says Sinow. “The breadth of knowledge from their corporate backgrounds is tremendously important and impactful.”

The same holds true of Sinow himself. After earning four degrees from Illinois, including a JD and PhD, Sinow built a stellar career as a banking entrepreneur and investment manager.

As he says, “We are four teachers with solid corporate backgrounds— we can say we’ve ‘been there, done that.’”

“Our three directors carved out amazing careers in the private sphere before coming to the academic environment to give back.”

David Sinow

Golder Academy students (bottom row, left to right): Stephano Jean-Jacques, Lisa Jonas, and Kevin Doherty; (top row, left to right): Matt Tennenhouse, Samuel Friedrich, and Alex Kirshenbaum.

24

business.illinois.edu

College of Business I University of Illinois at Urbana-Champaign

25

INVESTMENT BANkING ACADEMY

FINANCE ACADEMY

The first of the Golder Academies, the Finance Academy aims to expose students to a diverse range of financial areas. Beyond providing a well-rounded technical education, the Academy creates well-rounded leaders by cultivating softer skills that give strong academic performers an edge.

“Our students are exceptional in terms of the hard skills needed for career readiness,” says Director Don Davis MBA ‘02. “Our goal through the Academy is to provide students with additional opportunities to develop soft skills, to get a feel for what kinds of jobs are available to them, and to hear from those working in various fields of finance.”

While many more apply than can be taken, the rigorous selection process whittles the applicant pool down to 20 new members each year who remain in the Finance Academy until graduation. So there is overlap each year with 20 juniors and 20 seniors. Davis specifically seeks a diversity of financial-related majors to cultivate a broad view.

Finance Academy members meet in weekly two-hour sessions throughout the school year. The first hour is devoted to an academic enrichment experience, such as debates on financial topics or student reviews of various markets.

Whether debating the purpose of U.S. foreign aid or presenting a stock pick, students must justify their position with facts and logic and present it in a polished, professional manner.

“I try to develop the criticalthinking piece—the ability to form opinions and express them,” says Davis, who advocates a bird’s-eye

26 business.illinois.edu

“The real skills they develop in the classroom will get students their first job. But the skills they develop in the Finance Academy will get them a career.”

Don Davis view of business. “Students need to be able to think about an entire industry rather than just the company they are in.”

Diving deep becomes second nature through activities like weekly Market Updates, where students research headline news, market indices and trends, and present their findings, including stock pitches, to the class.

“While these updates obviously promote public speaking and understanding of basic financial terms and indices, the greater lesson is challenging us to answer the question of ‘why?’" says Matt Tennenhouse FIN ’17, who will begin doing healthcare consulting for Veralon in Chicago this fall. “Why is the market down this week? Why does the expectation that the Federal Reserve could raise interest rates impact how people are

choosing to save? Why does Trump speaking out against Boeing cause such a drastic drop in stock price?

This type of questioning is what promotes intellectual curiosity and the desire to learn—and understand— more about the world we live in, especially within the realm of finance.”

That curiosity is contagious, says his classmate Lisa Jonas FIN ’17, who will begin working as a consultant at Protiviti’s Chicago office this fall.

“At this point, when I hear a major headline such as the Fed changing rates or the Wells Fargo scandal, I can’t wait to get to class and see what my peers and professor have to say about it,” she says.

While students step to the head of the class in the first hour, a prominent guest speaker takes the stage during the second hour of each weekly session. Over the years,

CEOs, CFOs, and other top-echelon leaders from virtually every industry, as well as the public sector, have shared lessons from the front lines of finance. More often than not, they are alumni.

The Academy then hosts dinner and a small group discussion with the speaker. This allows further learning and networking for a handful of students who share an interest in the speaker’s field.

“Learning the ‘small talk’ skills with important people during these dinners is helpful, and I always end up learning a lot of fascinating stories about their life and career paths,” says Jonas.

“A lot of our students stay in direct contact with speakers,” says Davis, whose background rivals those of the speakers he brings in.

A former serial entrepreneur and successful manager with some of the largest financial institutions in the world, Davis knows firsthand the potential and pitfalls to be found in the world of finance. Along with developing critical-thinking and presentation skills in his students, Davis takes time to talk about strategies to manage stress in the fast-paced world of finance.

This combination of soft skills and hard-core technical knowledge pays dividends when students enter the job market.

“We see very positive outcomes at the Academy. Everybody gets a good job or goes on to get their master’s degree,” says Davis. “The real skills they develop in the classroom will get students their first job. But the skills they develop in the Finance Academy will get them a career.”

In contrast to the broader view taken in the Finance Academy, the Investment Banking Academy is geared specifically to investment bankers in the making.

“My Academy is different than the other two in that it is mainly focused on helping students get jobs with large investment banks,” says Director Rob Metzger ACCY ’89, who collaborates with alumni, Business Career Services, and the Market Information Lab to do so.

Following a highly selective application process, 25 sophomore students enter the Academy at the end of their first semester, joining 25 juniors and 25 seniors.

In their spring semester, sophomores begin an intensive 16-week boot camp to develop technical skills and financial-modeling capabilities and to learn about the varying types of firms and career opportunities within the industry.

“A lot is student-led, where juniors and seniors teach key technical and behavioral elements to sophomores,” says Metzger, whose distinguished background includes 16 years as an investment banker with William Blair in Chicago.

Highlights of the junior year include professional networking trips to Chicago and New York City, where students meet face-to-face with as many as 30 prospective employers. “This is an integral part of being fully prepared for internship interviews, where the group is competing against the best and the brightest undergraduate students across the United States,” explains Metzger. “To date, all Investment Banking Academy members have secured internships during the sum-

“To date, all Investment Banking Academy members have secured internships during the summer after their junior year, demonstrating the program’s success.”

Rob Metzger mer after their junior year, demonstrating the program’s success.”

If everything goes as planned, juniors have already landed a fulltime job when they return to campus as seniors. Their focus then becomes mentoring the Academy’s younger students, including putting juniors through a rigorous set of mock interviews.

“They are great leaders—super happy to help,” says Metzger. “It’s really humbling to see groups of students helping each other.”

Kevin Doherty FIN ’17 found the mentorship of older students and alumni to be a priceless part of the program.

“They all have an incredible willingness to help and a pay-it-forward mentality, so they were always, and are still always, willing to answer any questions I may have or even take

hours to sit down with me and explain a technical concept,” says Doherty, who landed a full-time job as an investment banking analyst with Jefferies in San Francisco.

Along with mentoring and technical coursework, case competitions are a hallmark of the Investment Banking Academy. These real-life business simulations begin with an actual case prepared by an investment bank, which includes a company overview and financials. Students then analyze the company's strengths and weaknesses, assess its valuation, and identify likely merger partners. They present their findings to the investment banking firm, which picks a winner.

Beyond case competitions and other student development, Metzger devotes much of his time to managing relationships with potential employers.

“Rob Metzger has an amazing Rolodex in the investment banking world,” says Sinow. “In his second full year, he was placing 100 percent of Academy students in full-time, premier jobs. They are working for the most prominent investment banks in the world.”

Doherty agrees. “Rob is incredibly helpful throughout the recruiting process because he can provide real-world insight and leverage industry connections to make introductions or gather feedback on interviews. He works incredibly hard to not only get students prepared, but to convince employers that Illinois students would be valuable assets to their firms.”

As Metzger knows firsthand, “Investment banking is an intense, interesting, and high-pressure job.

These kids will be working 70 to 90 hours a week. I like to look at this program as an accelerator—a training program equal in intensity to the job. Our students have to have a very advanced appreciation of finance,” he says. “We’re competing against the best of the best.”

That includes Northwestern University, Indiana University, and Ivy League schools, to name a few.

But thanks to the rigors of the program—and a former investment banker leading the charge—Academy students are more than prepared to go toe-to-toe with competitors from across the nation.

“The quality of the people involved and the case competitions makes the Investment Banking Academy one of the premier programs in the country,” says Sinow.

“It’s put Illinois on the map.”

College of Business I University of Illinois at Urbana-Champaign

27

INVESTMENT MANAGEMENT ACADEMY BANkING ON A BRIGHT FUTURE

The of therates threefor acadWithnewest placement Academies, the Investment Manageemy graduates at virtually 100 perment Academy students the cent across thegives board, the Golder to learn the art of money chance Academies have proven themselves management by doing it. bankable.

Under thechallenge direction is of to Kevin The next make Waspi, a lecturer in finance and a to the Academy experience available CFA, as young as sophoeven students more qualified students.

This mores participate in managing may involve expanding into the addiIllini Management tionalCapital financial specialties,Fund. such as Thanks to generous $250,000 risk management, pricing, consultfoundational funding from ing, entrepreneurship, and commerGrosvenor Capital Management, cial banking. the founding of “You maycorporate see morepartner academies the Illini Capital Management form under the Golder Academies Fund, the opportunity now exists umbrella, but it all depends on stufor anyone to donate on a tax-addent demand,” says Davis, noting vantaged to the fund, Banking while that bothbasis the Investment providing students a rare, real-life and Investment Management Acadlearning opportunity ofmeet managing emies were created to a need. money. has also con“We alsoGrosvenor need to look at inspiring tributed greatly Investment students as soon astothey get here — Management students or even before Academy they get here.” through the awarding of Any efforts to reach summer more stuinternships well as offers of fulldents will beasundertaken with divertime employment. sity in mind.

“My is toour expose “We approach need to grow talent younger students to the types pool, and there is a big initiativeofuncredentials and skill sets you derway to attract female and need minorto this work soMetzger. they can“We learn itydo students,” says also about it before theyAcademy make a comneed to grow the alumni mitment to aalumni career,”are says Waspi, base because more apt to FIN ’77 ’79.

“A few discover that hire our students.” theirBeyond interests arebenefits not in this area, clear to students and that’s fine.

It’s better to dis— and the employers who hire this cover that now than later.” top-notch talent — the Golder AcadStudents arelasting taskedbenefits with re-for emies produce searching the Collegeindividual as a whole.companies, as well as entire “Students whoindustries, participateand in the presenting investment recom- in Academies become very successful mendations, includewith boththe their lives andwhich very bonded quantitative valuation and qualitaCollege,” says Sinow. “The Golder tive analyses. realofmoney at Academies areWith a way cementing risk, the complicated analytical relationships between students and process develops technical the College for years, and knowthat is a how as well as confidence. tremendous benefit.”

“Students gain exposure to ac-on For additional information tual software tools used by analysts providing students with hands-on and learn the fundamentals of

28

business.illinois.edu

opportunities through donations to

Illinihope Capital Management Fund, “the My is that the Academy will help put contact David Sinow at dsinow@illiIllinois atCollege the top of the list of investment nois.edu or the of Business Development Office at 217-333-6434. management firms’ recruiting efforts.”

• Celeste Huttes

Kevin Waspi analysis and how to assess a corporation’s financial value,” says Waspi.

They develop a keen analytical eye along the way.

“Professor Waspi helped me develop critical-thinking skills that now shape the way I view companies and the macro-economic environment as a whole,” says Sam Friedrich FIN ’17, who will begin his career at FTI Consulting next fall. “He has shown all of us in IMA to never just accept things at face value, but to dig deeper and to truly understand the meaning of what we see, whether it be in the news or in a company’s 10-K.” Academy members are expected to join the Chartered Financial Analyst (CFA) Society, the world’s oldest investment analyst society. And all Academy activities are designed to prepare them to earn the prestigious (and notoriously difficult) CFA designation.

To dive deeper into money management, seniors who are serious

about a career in investment management are also encouraged to enroll in Waspi’s long-running RealClient-Managed Portfolio class.

“Jobs in securities analysis or portfolio management are difficult to obtain right out of an undergraduate program—it’s highly competitive,” says Waspi. “My hope is that the Academy will help put Illinois at the top of the list of investment management firms’ recruiting efforts.”

So far, so good, says Stefano JeanJacques FIN ’17, who landed a job as senior analyst in the Hedge Fund Services Department at Northern Trust in Chicago. He was also a summer intern at Grosvenor, where he sharpened his asset management acumen. “More than anything else, the Investment Management Academy has taught me to better communicate with financial professionals in a manner that qualifies me for employment.”

BANkING ON A BRIGHT FUTURE With placement rates for Academy graduates at virtually 100 percent across the board, the Golder Academies have proven themselves bankable.

The next challenge is to make the Academy experience available to even more qualified students. This may involve expanding into additional financial specialties, such as risk management, pricing, consulting, entrepreneurship, and commercial banking.

“You may see more academies form under the Golder Academies umbrella, but it all depends on student demand,” says Davis, noting that both the Investment Banking and Investment Management Academies were created to meet a need.

“We also need to look at inspiring students as soon as they get here— or even before they get here.”

Any efforts to reach more students will be undertaken with diversity in mind.

“We need to grow our talent pool, and there is a big initiative underway to attract female and minority students,” says Metzger. “We also need to grow the Academy alumni base because alumni are more apt to hire our students.”

Beyond clear benefits to students —and the employers who hire this top-notch talent — the Golder Academies produce lasting benefits for the College as a whole.

“Students who participate in the Academies become very successful in their lives and very bonded with the College,” says Sinow. “The Golder Academies are a way of cementing relationships between students and the College for years, and that is a tremendous benefit.”

For additional information on providing students with hands-on opportunities through donations to the Illini Capital Management Fund, contact David Sinow at dsinow@illinois.edu or the College of Business Development Office at 217-333-6434.

• Celeste Huttes

Celebrating A Proud Legacy For more than 100 years, the College of Business has been making a difference for students, for the campus, and for the world of Business. That proud history and enthusiastic commitment to our students is something to commemorate. you can share in celebrating that legacy by ordering “100 years of Making a Difference,” our recently published coffee table book that provides a comprehensive history of the College.

Order “100 Years of Making a Difference” today A comprehensive history of the first 100 years of the College of Business and the people who built our reputation as a world-class institution a nd influenced our success.

12˝ x 12˝, 198 pages $100 To order a copy for yourself or as a gift for another proud Business graduate, visit https://business.illinois.edu/100/book/ or send an email to communications@business.illinois.edu

by August 28.

College of Business I University of Illinois at Urbana-Champaign

29

[ PARTInG SHOT ]

Embracing a legacy. Paul Magelli’s influence was larger than life.

In December 2016, the College lost a committed and influential faculty member. In January 2017, hundreds came to BIF and joined us via live stream to share memories and honor the work and life of a man whose positive impact reached across the world. As a professor and the founder of Illinois Business Consulting, Dr. Magelli touched hundreds of students and colleagues during his nearly three decades on campus. He is remembered as a visionary leader, a generous mentor, a proud ambassador, a loyal Illini, and a caring friend.