Microfinance lending and ecologically friendly false eyelashes may not seem to have much in common. But they’re both new business ideas that caught the attention of the prize committee awarding this year’s $25,000 Sohr Grants, created to promote student entrepreneurship at the Owen School.
Jim Sohr, BE’86, MBA’90, and his wife, Leah, endowed the new grants. Sohr is the past President and Co-founder of AIM Healthcare Services, which provides claims cost-management services for government and commercial payers of health care benefits. A division of UnitedHealth Group purchased AIM in 2009.
“We would love to create many companies that become as successful as AIM Healthcare,” says Germain Böer, Professor of Accounting and Director of the Owen Entrepreneurship Center. “With this kind of support, the Owen School can attract more students who already have a business idea that they want to develop. This funding, combined with the mentor support provided by the school’s alumni, will drive the success of these new ventures.”
Georgie Beauty
One of the grants went to Megan Allen, an MBA candidate for 2012, for her startup Georgie Beauty. Co-founded in 2009 by Allen and her sister, Abbey Allen Watt, the company makes “eco-luxe” false eyelashes sold under the brand name Winks by Georgie. The company has established partnerships with luxury retailers Neiman Marcus and Cos Bar. It also has been featured in Martha Stewart Weddings, InStyle.com, and numerous beauty and style blogs. About the target audience, Allen writes in her business plan, “These women are looking for the latest cosmetic products that help them achieve the celebrity look, but that’s not all. They are also increasingly concerned with consumer and environmental health.”
Contigo Financial
Contigo Financial is developing a microfinance model to provide payday loans to the 60 million consumers in the United States who don’t have access to traditional bank loans or credit card products. Currently these types of small loans are provided by pawnshops and payday lenders, where borrowing costs can exceed an APR of 400 percent. Co-founder Mario Avila, a 2012 MBA candidate and President of the Owen Student Government Association, is leading a startup team that has experience in consulting, banking and microfinance. He and his team are taking a novel approach by partnering with employers to help their employees meet short-term financial needs.
This past November, a group of 18 students in the Owen Energy Club took a first-of-its-kind trip to Houston to learn more about the energy sector and to network with potential employers. The Energy Trek, as it was called, was planned by Tracey Gilliland, an MBA candidate for 2013, in conjunction with Peter Veruki, Director of Corporate Relations, and Sylvia Boyd, Assistant Director of Employer Relations.
“Energy is a huge sector. In some ways it’s even bigger and more complex than the health care industry as far as job opportunities,” says the Houston-based Veruki, who hosted a wine-tasting mixer at his home for the students and local alumni. “Energy’s not just about finance or operations or engineering. It’s also about marketing and HR and many other areas. And all of those opportunities are spread around the globe.”
The first stop on the Energy Trek was Macquarie Group, an international financial services company where Vikas Dwivedi, MBA’00, Global Oil and Gas Economist, and Charles Fenner, MBA’01, Senior Vice President of Power and Gas Fundamentals, gave a presentation. The student group next visited Baker Hughes, a leading oil field services company, whose President and CEO is Martin Craighead, IEMBA’98. Then it was on to global financial services firm JPMorgan Chase, where Robert Traband, MBA’93, Managing Director of Credit Risk Management, spoke.
The following morning, the group toured the world’s largest publicly traded oil and gas company, Exxon Mobil, which included a visit to its 3-D visualization room used for training employees in drilling operations. The group then toured the trading floor of Chevron, another of the world’s leading oil and gas companies. The final stop was international financial services firm Credit Suisse, where Managing Director Tim Perry, MBA’81, gave a presentation.
Houston-native Gilliland, who previously worked for Macquarie before enrolling at Owen, anticipates that the Energy Club will continue to grow and broaden its appeal. She sees potential in networking with more utility and energy companies in the Southeast, as well as renewable energy businesses.
“Our goal is to bring more value to club members and expand our offerings, whether it’s new networking opportunities, guest speakers or internships,” she says. “That means we have to get the word out to alumni that there’s an interest in energy at the school. We want them to know that we’re building something here and that they can play a hand in it.”
Cheryl Chunn joined Owen this past November as the school’s Associate Dean of Development and Alumni Relations. She has worked at Vanderbilt for 10 years, six of which have been in development. Her previous roles include Director of Development and Director of Corporate Relations for Vanderbilt University Medical Center, as well as Senior Associate Director of Corporate and Foundation Relations Development. Chunn has a bachelor’s from Valparaiso University, a master’s from the University of Wisconsin-Milwaukee and an MBA from Keller Graduate School of Management in Chicago.
Q: What drew you to this opportunity at Owen?
A: First, it’s Vanderbilt and my 10 years working in both the Medical Center and the university that drew me to Owen. It’s an incredible place to work. I’m amazed every day at all that’s going on here to help transform business, medicine, education and the community we live in.
Also what drew me was my previous work with Owen and Jim Bradford as a development officer with Corporate and Foundation Relations. I had the opportunity to visit with Owen alumni all over who were so passionate about their experiences here. The word they used was “family.” I heard that over and over again.
Q: How has your MBA shaped your approach to development and alumni relations?
A: My MBA has helped me understand that all philanthropists want to know their gifts are doing something meaningful. What I learned in my schooling was the question: “What’s the return on my investment?” I approach my development activity with that in mind. I want our alumni donors to know what Owen needs, why we need it and how they can help. Being able to steward them with the answer to that ROI question is my next step.
Also I know how hard I worked to get my degree and realize that I wouldn’t have the same perspective and experience without it. Likewise for our alumni, Owen has helped them not only in their professional lives but in their personal lives as well, and I believe they want to give back because of that fact.
Q: What are some of the short-and long-term goals for Owen’s development and alumni relations team?
A: One of the short-term goals is to learn how to work as a team. With many new team members, we’ll be forging ahead to build on the existing base of support from Owen to develop goals and structures that help our students, faculty and alumni.
Our more ambitious goals for the immediate future are to be able to accomplish the development and alumni relations goals of the strategic plan and to make Owen more successful. We will focus on increasing the number of endowed scholarships for students, strengthening alumni engagement and working with the dean on potential space and program needs.
Arthur B. Laffer, a renowned economist and longtime champion of conservative causes, proposed a novel approach to taxation at a forum held in Owen’s Averbuch Auditorium Feb. 23. Laffer said he sees a fundamentally backward system in the United States, which imposes taxes on things people want more of—income and jobs—while allowing something we want less of—carbon dioxide pollution—to be emitted without penalty.
The situation should be reversed, Laffer argued. Instead of tax increases that are “veiled as ‘cap and trade’ schemes,” he said, Congress should offset a simple carbon tax with a reduction in income or payroll taxes.
Joining Laffer in the discussion was former U.S. Rep. Bob Inglis of South Carolina. “Art Laffer is a conservative who’s agnostic on climate change. I’m a conservative who believes it’s real,” Inglis said. “Both of us see opportunity in changing what we tax. For Art, it’s about his lifelong quest to reduce marginal tax rates. For me, it’s that—plus the opportunity to fix a market distortion that prevents the free enterprise system from delivering the fuels of the future.”
A member of President Reagan’s Economic Policy Advisory Board between 1981 and 1989, Laffer is the Founder and Chairman of Nashville-based Laffer Associates, an economic research firm that provides global investment research services to institutional asset managers, pension funds, financial institutions and corporations.
Owen has long been known for its strong sense of community, and that reputation stands to grow thanks to the efforts of the latest classes to pass through Management Hall. Students have started a first-of-its-kind forum at the school for sharing their areas of expertise with one another. Called Owen Insights, the series aims to foster a collaborative learning environment through regular presentations, discussions and workshops.
Founded by Aaron Fung, an MBA candidate for 2012, Owen Insights draws upon the wide variety of backgrounds, nationalities and professional experiences represented across the student body. “While the classroom has contributed a lot to my learning experience here at Owen, the majority of my learning has taken place outside the classroom through my interactions with classmates,” Fung says. “This is what inspired me to create a common platform for students to enhance their learning experience at Owen.”
Prior to business school, Fung worked as Director of Strategy for Ascend, a nonprofit association that focuses on professional networking and leadership opportunities for Asian Americans. His experiences at Ascend have helped him steer the Owen Insights venture. He views the series as an opportunity for students to not only network with each other but also hone critical presentation and public speaking skills.
Students are encouraged to suggest ideas for workshops, and topics in the past have included the business of education and American slang, which was of particular interest to international students. More recent topics have ranged from Foundations of American Politics, taught by Steven Smith, former presidential appointee, White House staffer and MBA candidate for 2013; to Tips and Tricks of Excel led by former financial analyst and 2012 MBA candidate Doug Midkiff; to European Economics led by Sergi Tejero Cano, former Chairman of the Andorran Economist Association and MBA candidate for 2012. Fung himself, who is a chartered retirement plan counselor, taught The Basics of Personal Finance along with Kate Yoho and Carlton Fitch, both CFP practitioners and MBA candidates for 2013.
Thus far the series has seen an enthusiastic response from students, and Fung hopes it will continue even after he graduates. “I’d like Owen Insights to become a self-sustaining program that draws all students into it,” Fung says. “I think people really want to learn from each other, and the great thing is that people are willing to teach. They just need a mechanism through which their knowledge can come out. Owen Insights gives students that mechanism and makes it easier for classmates to learn something that they might not get in a typical academic setting.”
The Vanderbilt Health Care Conference and Career Fair hosted more than 500 participants and 35 companies at a one-day session in Nashville this past fall. It was the fourth year for the student-organized conference, which is designed for anyone interested in the intersection of business and health care.
Headlining the October event was Nancy-Ann DeParle, Deputy Chief of Staff to President Barack Obama. Drawing on her experience as Director of the White House Office of Health Reform, DeParle outlined the contrast in the national health care system prior to passage of the 2009 Patient Protection and Affordable Care Act and what it will look like once the plan is fully implemented.
Where We Were
Health insurance premiums doubled: Family premiums for employer coverage rose from nearly $6,000 to more than $13,000 between 1999 and 2000.
Insured Americans and businesses paid a hidden tax: Up to $1,000 of uncompensated care was shifted from the uninsured to already-insured families. In 2008 we spent $43 billion on uncompensated care.
Millions lacked quality, affordable health care: 50 million Americans were uninsured in 2009, and millions more lacked access to quality care, preventive services and catastrophic protection when ill or injured.
People with pre-existing conditions were locked out: As many as 129 million Americans have a pre-existing condition that could limit access to insurance.
“Even after spending almost twice as much per capita on health care as every other industrialized country in the world, we continue to rank near the bottom when it comes to health care outcomes,” DeParle said. “Those of you working in health care understand that this is bad for business. Imagine you’re selling cars. If cars become more expensive, but the quality stays the same, or even gets worse, you don’t need an MBA … to realize that you’re in trouble.
“Health care isn’t like most other industries. If people can’t afford insurance, they don’t stop coming to the hospital. They just stop paying for the care they receive. So to tweak the analogy that I just used, not only are customers not buying cars, but you have to hand them out for free. That’s not sustainable.”
What the Law Does
Allows young adults to stay on their parents’ policies: More than 1 million 18- to 26-year-olds have benefited.
Gives uninsured with pre-existing conditions affordable insurance: The Pre-existing Condition Insurance Plan has covered more than 30,000 people and is a bridge to 2014 when discriminating against anyone with a pre-existing condition will be illegal.
Protects retiree coverage: $5 billion is provided to keep coverage affordable for early retirees in more than 6,600 plans.
Expands community health centers and workforce: Clinics can serve nearly 20 million more Americans, adding 16,000 primary-care providers during the next five years.
Holds health insurers accountable: The law implements a patient’s bill of rights, eliminates double-digit rate hikes without review, guarantees that overhead expenses are held in check, and promotes pricing transparency among health plans on healthcare.gov.
Creates a competitive and affordable insurance marketplace: Starting in 2014, consumers will be offered the same health plan choices as members of Congress. Tax credits and Medicare coverage will be made available to ensure that coverage is affordable for families and small businesses. The law also protects existing employer-based coverage while ensuring that all Americans who can afford it get health insurance, increasing the insurance purchasing pool, ending pre-existing condition exclusions, and eliminating the “hidden tax” of cost shifting.
Lowers cost and improves quality: Health care fraud persecutions are up 85 percent, and billions have already been saved. The law promotes prevention and offers incentives to reduce hospital readmissions and conditions acquired in health care facilities. It also provides tax credits to small businesses and relief for seniors. There was record low growth in national health spending in 2009 and 2010.
“I’m not saying it’s going to be easy for us to make all of these changes,” DeParle said. “But what I’m saying is the framework is there and the incentives are there in this new law.
“Do we embrace this new law, this new world of health reform, as a first step and work together to make it better? Or do we fight to restore an unsustainable status quo that left millions of our neighbors on their own in their time of need?”
A version of this article originally appeared inVB Intelligenceon Nov. 17, 2011.
Generation Y, the first group to come of age in the Internet era, is all grown up and ready to launch the next wave of multibillion-dollar tech companies. And investors are ready to help them do it.
“If you’re 20-something and have an idea of what you want to build, you can go out and build it,” Harj Taggar, a partner at the Silicon Valley incubator Y Combinator, told the Financial Times in a recent story, echoing the tech boom of the late 1990s.
But after a dizzying decade that ushered in everything from Google’s search engines to touch-screen tablets—and plenty of flops in between—how much more technology are consumers willing to adopt?
It’s a critical question that Mark Ratchford, Assistant Professor of Marketing at the Owen School, is helping companies explore with a new tool called the Technology Adoption Propensity (TAP) index.
“Effectively segmenting and targeting customers based on their likelihood to purchase and use new technologies could help firms better capitalize on their high-tech investments,” Ratchford writes in a recent paper for the Journal of Business Research that introduced the TAP index. The study was co-authored by Michelle Barnhart, Assistant Professor of Marketing at Oregon State University.
Similar psychological measurements have been developed previously to gauge a consumer’s willingness to use new technologies. For example, the Technology Acceptance Model (TAM) was introduced in 1986 to explore user acceptance of—or resistance to—various technology-based systems, including email, word processors and the Internet.
Another stream of technology-related marketing research led to the creation in 2000 of the Technology Readiness Index (TRI), which focused primarily on a person’s likelihood of adopting service-based technologies, often related to e-commerce.
The problem with the TRI, according to Ratchford, is that its questions depend on specific technologies, making it increasingly obsolescent since this once narrow area has grown to cover everything from social media to smartphones.
“References to specific technologies grounds the TRI in a particular technological era and limits its usefulness as a measure of overall technological readiness,” Ratchford writes. “Hence, a new scale that measures consumers’ attitudes toward a varied and flexible concept of technology that seamlessly incorporates the specific technologies of each new era would be useful to researchers and marketers.”
The research team developed an initial 47-item psychological battery, based on 17 items included in the TRI and 30 new ones. To make the TAP index shorter without compromising its effectiveness, Ratchford and his co-author winnowed the items down to 14. Those were then aligned with traits that contribute to technology adoption (“optimism” and “proficiency”) or that inhibit adoption (“dependence” and “vulnerability”).
To validate the TAP index, the study asked more than 1,300 survey respondents to answer a series of yes-or-no questions designed to assess their current use of technology products and services. The results were then matched up against findings from the TAP index itself, showing that those who scored highly on the TAP index were the same ones already using technology. Conversely, those with low TAP scores were not likely to be heavy technology users.
“We show that the TAP index can predict consumers’ technology usage behaviors across a range of high-tech products and services,” Ratchford writes. “We expect that, as a more succinct and timeless measurement tool than prior scales designed for a similar purpose, the TAP index will prove to be a robust and useful scale for academics and practitioners alike.”
A version of this article originally appeared inVB Intelligence on Sept. 30, 2011.
The trading volume of stock options has more than quintupled in the past decade, as banks, hedge funds and other traders have flocked to the investments. But retail options investors may be getting left out in the cold, unknowingly giving up as much as $1.9 billion in lost profits during that same time frame, according to new research from Kate Barraclough, Lecturer of Finance and Director of the Master of Finance program, and Bob Whaley, the Valere Blair Potter Professor of Finance and Co-director of the Financial Markets Research Center.
The problem uncovered by the Vanderbilt team happens with put options—contracts that allow owners to sell an underlying asset at a specific price and within a certain time frame. (Put-option holders make money when the underlying asset price declines.)
Because American-style put options can be exercised anytime before they expire—as opposed to European-style options that can be acted upon only at expiration—investors must find the optimal point at which to close their positions. Otherwise they will forgo interest income that’s, in some cases, greater than their expected profit.
In the study, which will be published in a forthcoming Journal of Finance, Barraclough and Whaley develop a model to test when it’s most advantageous for investors to close put-option positions that are deep in the money. In other words, for put options whose underlying asset has declined to such a level that a maximum profit is all but assured, where is the point when it’s more advantageous to close the put-option position and instead collect the net interest income on the cash proceeds?
“A deep in-the-money put has no time value remaining and is priced at its floor value,” Barraclough and Whaley write. “The difference between forgone interest income and the value of future exercise opportunities determines whether the put should be exercised early or not.”
As it happens, professional investors appear to have realized that money is being left on the table. In response, they’ve developed an arbitrage strategy to capture the forgone interest of those who don’t exercise put options when it’s optimal to do so.
Barraclough and Whaley show that more than 3.96 million put options between January 1996 and September 2008—3.7 percent of all put options outstanding—were not exercised when they should have been. That cost long put-option holders more than $1.9 billion during that period.
In its simplest terms, when long put-option holders don’t exercise at the right time, short put-option holders can (and do) come in and snatch interest income.
Why do investors give up this money? One possible explanation lies in the additional trading costs for long put-options investors, according to Barraclough and Whaley. However, even when estimated trading costs are included, the Vanderbilt team still found nearly $1.82 billion in forgone net interest income.
Another reason is that retail put-option investors simply don’t know about—and don’t use—an appropriate early exercise decision rule.
“Both market makers and proprietary firms demonstrate that they know the early exercise decision rule and apply it in a timely and appropriate fashion,” Barraclough and Whaley write. “That is not to say that the nonprofessional traders are behaving irrationally. The costs of learning the early exercise decision rule and constantly monitoring open put-option positions may be too high relative to the perceived benefits.”
(In a similar 2007 study that Whaley co-authored, the researchers found that call option holders gave up an estimated $491 million during a 10-year period for failing to exercise the options on dividend-paying equities at the optimal time.)
Based on the finding of this most recent put-options study, Barraclough and Whaley say the bottom line is that long put-option investors are “implicitly paying a premium for the ability to early exercise that they rarely use.” In addition, market makers and proprietary firms are appropriating the potential gains of those in a short put-option position.
“Among other things, this raises fundamental concerns regarding contract design and market integrity,” they write. “If many option buyers pay for the right to early exercise but either cannot or do not take advantage of it as a result of exercise costs, unawareness of appropriate decision rules, inability to continually monitor open positions, or irrationality, would not the integrity of the market be better preserved with stock option contracts that are European-style?”
A version of this article originally appeared inVB Intelligenceon Feb. 13, 2012.
The following is adapted from a speech given at the graduation ceremony for the Executive MBA Class of 2011.
My name is Alex Nicholson, and I’m 63 years old. A year and a half ago, I began a new job as a trading partner in a startup hedge fund. It’s the best job I’ve ever held—the best boss, the best environment and the most fun work. For the first time, I wake up early and can’t wait to go to work. I invest my own money in the fund, so I’m an owner as well as an employee. It’s also the most remunerative work I’ve ever done. I attribute my newfound success largely to the Vanderbilt Executive MBA program, but my path has been a circuitous one.
I was a late arrival to the business world. I was born and raised in Nashville and earned degrees in philosophy and law at Stanford. But after 20 years in California and unfulfilling stints in education research at Stanford and in corporate law in San Francisco, I returned to Nashville to reinvent myself. The family business, Nicholson’s Hi-Fi, which sold audio-video systems and had been successful since 1946, was encountering difficulties in 1987 and needed help. At age 38, I decided to join my father in the business.
Nicholson’s Hi-Fi grew and prospered in the 1990s, designing and installing home theaters, lighting control systems and home automation systems in Nashville’s finest residences. One day in 1998, after I had taken over the company from my father, it struck me that I didn’t know what the hell I was doing running a business with 25 employees and $3.5 million in annual sales. I had had no business education and only minimal on-the-job training. I was managing by the seat of my pants and unsure of every major decision.
I met with Tom Hambury, Owen’s Director of Executive Programs at the time, to ask whether I could benefit from the Executive MBA program. I expected him to say no, that the program was intended for rising midcareer employees at large corporations, who could use the degree to earn promotions and raises. Tom startled me when he responded, “The Vanderbilt Executive MBA is a lock-step, generalist program without specialization. Corporate employees, who are specialists, benefit greatly from the program. However, small-business owners, who have to be generalists, benefit most of all because they need every course in the curriculum.”
Tom was right. To run my business, I needed to learn accounting, human resources, strategy, economics, negotiation, finance, organizational behavior, operations, marketing, leadership, entrepreneurship, and statistics. And so, at age 50, the oldest in my class, I entered Owen in the fall of 1999. I looked forward to getting to know the beautiful Vanderbilt campus, but I ended up sitting in the same building, in the same classroom, in the same exact seat every class for two years. But I loved every part of the Executive MBA program—the professors, the classes, the reading, the students and the teamwork—everything that I had disliked about law school.
“After I had taken over the company from my father, it struck me that I didn’t know what the hell I was doing. I had had no business education and only minimal on-the-job training. I was managing by the seat of my pants and unsure of every major decision.”
—Alex Nicholson
Luke Froeb, the William C. Oehmig Associate Professor in Free Enterprise and Entrepreneurship, taught me where wealth comes from and convinced me to align my political interests with my economic interests. Ray Friedman, the Brownlee O. Currey Professor of Management and Associate Dean of Faculty and Research, taught me to negotiate from a broader perspective so that both sides could come out ahead. Germain Böer, Professor of Accounting and Director of the Owen Entrepreneurship Center, taught me how to start a new company, which made me glad my father had already done it, and I didn’t have to.
My favorite course at Owen, however, was the finance class taught by Bill Christie, the Frances Hampton Currey Professor of Finance and Professor of Law. Before Bill’s class, I didn’t even know what finance was. When I started to read the textbook over the semester break, I couldn’t put the book down. All of a sudden, the big picture of business made sense—companies, projects, debt and equity, dividends and buy-backs, the stock market. My favorite topic was options—puts and calls, profit and loss graphs, synthetic stock positions and real options.
But finance and options had little to do with Nicholson’s Hi-Fi. My purpose at Owen was to learn so that I could help my family business. I tried my best to share with my associates what I had learned. I found that task was much harder than anything I ever did at Vanderbilt. So I went back to the basics: I hired a coach to work on team building, which I considered the most fundamental lesson from Owen. We went on expensive overnight retreats, talked freely to each other and kept careful notes about our commitments to accountability.
None of it worked. I found out that the general manager disliked the salesmen because they could earn more than he could; the salesmen distrusted the technicians to install their systems correctly; and the technicians bullied each other and refused to follow directions from the general manager. Owen had elevated me to a higher plane of business consciousness, but I was unable to raise my company along with me.
After my graduation, the housing boom brought an onslaught of new competition in our industry—from the Internet, from big-box stores, and from local installers without the overhead expense of a retail store. Our revenue plateaued and by 2005 was starting to decline. The company that had supported our family so well for six decades now needed cash infusions from the family to cover its expenses. Soon I was $2 million in debt and unable to see a way out.
I finally realized that I had to let go of the idea of keeping the family business afloat. Remembering my interest in finance, I started taking classes in stock and options trading, which I enjoyed tremendously. In 2006 I sold our warehouse and started reducing my debt. In 2007 I sold the business operations to a Birmingham, Ala. audio-video company that wanted to open a Nashville branch. I made sure that all my employees had positions with the buyer and that all my customers’ jobs in progress were completed. Then I started trading options full-time for my own account. In late 2010 I sold my final parcel of real estate—the retail store, which had stood empty for four years—and paid off the remaining debt.
My solo options-trading career was successful, but my returns were inconsistent, and I felt unfulfilled. My wife, Laurie, encouraged me to find a real job—and get out of the house—while trading options on the side, so I went back to Owen to confer with Debbie Clapper, Associate Director of Executive and Alumni Career Services. She helped me redo my resume, which had been dormant for 25 years, and sent me job postings from Owen every day.
Then early last year, a friend of mine contacted me about a new fund she was starting. The best options trader I’ve ever known, she left the corporate world in 2007 to follow her passion: a charity she founded called Just Hope International, which provides infrastructure projects in the poorest parts of the world. While supporting herself and her charity by trading options, she started a closed hedge fund to allow her former business associates to invest with her.
When we met to discuss her new fund, she offered me the opportunity to invest. As I was about to ask if she needed another trader, she asked me first if I would be interested in working at the fund. Fortunately I had the requisite professional degree and a current resume. During the third interview, I knew she was going to make me an offer. Forgetting everything that Ray Friedman had taught me about negotiation, I jumped directly to my bottom line and said, “This is my ideal job. I know there is no money right now. I’ll work for free until the company can pay me.” She beamed with joy and said, “What a blessing you are to do this for us! But it may be a year or two before we’re profitable.”
Our company, Hope Investments LLC, based in Brentwood, Tenn., trades options and futures on the broad-based stock indices. We have been profitable since the first month and have now paid off our startup costs. A large share of our profit goes to support Just Hope International, the charity for which we are named. There are three partners, including myself, but no additional staff. My boss and other partner also serve as the president and executive director, respectively, of the charity. They are both now working to buy land in Sierra Leone, the poorest country in Africa, so that a self-supporting farm, orphanage, school, church and health clinic can be built there.
The opportunity at Hope Investments has enabled me not only to do well financially but to find a moral direction in my work. For that I have Vanderbilt to thank. Even though my original purpose in attending Owen was never realized, the Executive MBA program was the best educational experience I’ve ever had. Owen has given me the intellectual foundation to support a lifetime of continued learning in the business world. And when my perfect business opportunity came along, my education gave me the confidence to seize the moment—a moment that forever changed my life.
For a guy from Middle Tennessee, Brent Turner, MBA’99, sure uses a lot of nautical terms. That may be the impact of having lived near the Puget Sound in Seattle for the past 12 years, but his choice of words is fitting nonetheless. Turner is helping steer the future of Owen as chair of the school’s Alumni Board, and his enthusiasm, drive and leadership are just the types of invaluable assets you’d want in someone at the helm.
When Jim Bradford, Dean of the Owen School, asked him to lead the board last year, Turner was both honored and surprised. Even Turner’s assistant good-naturedly asked him if he was absolutely sure Bradford was serious. (Those are the kinds of self-effacing stories Turner likes to tell about himself.)
“I didn’t immediately tell [Bradford] yes, but I didn’t have to think about it long,” says Turner, Executive Vice President of Call Products for Marchex, a Seattle-based digital call advertising company.
That’s because of his deep-running zeal for all things Vanderbilt. Turner is one of the youngest members of Owen’s Board of Visitors, composed of corporate leaders from some of the world’s most prominent companies, who advise the dean on curriculum, the needs of the business community and the overall strategic direction of the school. He also serves as a class representative on the school’s Alumni Council, which encourages alumni participation and promotes philanthropic support. He even keynoted last year’s Discover Weekend for prospective students and has helped hire Owen graduates. And as if that isn’t enough, this marks his third year on the Alumni Board and second as its chair.
“He’s a passionate guy,” says Dave DiFranco, MBA’99, a Principal at private equity firm Blue Point Capital Partners. “Whatever he decides to spend his time on, it’s 100 percent. That’s true about SEC football, the Titans, the Owen School. That’s how he is, and he inspires others, like me, to get involved, too.”
Having a well-respected classmate lead the Alumni Board gives DiFranco a sense of confidence. “He’s not afraid to deal with tough stuff,” he says of Turner. “You might not always like what Brent has to say, and he doesn’t shy away from the tough issues. But that’s what a leader does.”
Turner’s decision to immerse himself in board activity at the school was fueled in part by Bradford’s all-hands-on-deck approach to bringing Owen closer to its goals. “He understands,” Turner says, “just how important it is to have as many people in the boat as possible if you’re trying to turn it.”
Part of the Returns
Turner was inspired to accept a leadership role because he saw that Bradford valued alumni input and sought answers to difficult questions. “I was impressed,” Turner says, “that he was willing to tackle what had been the central issue at Owen, which was: ‘What is the school’s strategy going to be? What’s going to be the role of rankings in determining our success?’ That’s a very hairy conversation to have, but I noticed him having it at both the Alumni Board level and Board of Visitors level as well as with faculty and staff.”
“The period in my life when my perspectives on the business world, and the world in general, opened the most was the two years I spent at Owen.”
—Brent Turner
“Brent is a doer, a no-nonsense guy who is passionate about Owen and committed to its success,” Bradford says. “These qualities are the reason I picked him for this job.”
Turner bears in mind that many of his fellow board members travel thousands of miles for meetings because of a strong desire to “move things forward,” as he says. He has redesigned the Alumni Board into a working board, with teams to help support the school in targeted areas, such as alumni connectivity, student recruitment, career placement and fundraising.
Members have assignments and goals and report their progress regularly. “The idea is to make it meaty enough that it’s appealing but not so bad that it smacks of volunteer labor,” Turner says.
Fellow Alumni Board member Russ Fleischer, MBA’91, who is CEO of HighJump Software, a supply chain management software company, offers his own take on Turner’s style. “He’s not shy about reaching out and getting people involved,” Fleischer says. “Like so many of us, he has a strong passion for the school. That’s the attribute we both share—a deep passion for the school and a deep willingness to do whatever will help the school succeed and thrive in the future.”
Turner’s personal focus as a board member—improving alumni engagement—is approached with his usual fervor. His challenge for his fellow alumni: “I’m going to invest now with my time, talent and treasure because I want to be part of the returns.”
Turner’s board experience has helped him see the value of every contribution. With classmate Alli Zaro Fitzgerald, MBA’99, he hosted a well-attended webinar in 2011, in which he presented his thoughts about the school’s strategy. He followed with a live presentation to Seattle alumni.
“I think that everyone who attended left the call with a renewed enthusiasm for Owen,” says Fitzgerald, Director of Finance and Marketing at SecuriCheck LLC, a background research company. The positive vibe was created in part, she says, by Turner’s characteristically frank discourse, particularly about the elephant in the room—the perception by some alumni that the Owen School is undervalued in rankings. His message was clear: Any advancement will come about in large part from increased alumni involvement on many levels.
Turner is quick to say that no one considers rankings the only end goal, knowing that a school’s position can ebb and flow for no apparent reason. However, he says most people acknowledge that some of the rankings contain legitimate, objective measures of success and have to be heavily considered when planning and building strategy. In particular, they matter to prospective students and recruiters, who often perceive rankings as a litmus test of a school’s performance.
“The philosophy for a long time has been to build a world-class business school and the rankings will follow,” he says. “There’s a lot of that that’s true, and a big part that’s not true. There are some tough choices that have to be forced by the market. The dean’s big contribution is the message that we ought to take these more seriously, but we shouldn’t sell out.”
Alumni support is “the real chicken or the egg issue,” Turner likes to say. He believes that, if Owen is to make significant strides forward, alumni need to engage and support the school now instead of waiting to see if the new strategy works. It won’t be successful, he says, without their participation.
After receiving some lackluster class alumni giving numbers via email in January, Fitzgerald recalled that it took about 30 seconds for another email to hit her inbox. This one, from Turner, simply said, “Let’s talk.” Within minutes, a five-point plan was in place to stimulate class participation.
“He’s not afraid of difficult truths and approaches them head-on,” Fitzgerald says. “Yet he’s very approachable. He doesn’t lead by intimidation or try to impress everyone.”
Getting Somewhere Together
When analyzing problems, Turner relies on his training as an engineer to help him remain dispassionate. “That’s a gigantic asset in the business world,” he says. In the same breath, though, he admits to being not as strong in other areas. “On the other end, I struggle a lot with ideation and creativity,” he says. “I’m completely lost in a marketing meeting or going over advertising copy.”
Turner majored in electrical engineering at the University of Memphis and went to work for Porter-Cable, a power tool company in Jackson, Tenn., after graduation. He was with Porter-Cable for nearly four years as parent company Pentair positioned the brand for sales in big-box stores.
“As an engineer, I had a chance to be in a lot of the management meetings,” he says. “But I also walked the shop floor a lot and got to understand the differences between what the management team was trying to accomplish and what was actually happening on the front lines. It was very valuable. I learned how important it is to care about the people you are working with and who work for you. I learned the importance of clarifying their roles and making them feel safe if you wanted their best performance.”
That perspective led him to think seriously about entering management. “I can do this,” he thought.
Turner got to know an MBA intern from Kellogg Graduate School of Management at Northwestern who was sent by Pentair to evaluate Porter-Cable’s progress. The intern encouraged his interest in business, and Turner enrolled in some accounting classes locally. Surviving those, he then decided to take the GMAT, apply to “the big MBA schools,” as he says, and see what happened.
“The best fit, easily, was Owen,” Turner says. His interview was affirming and straightforward. Everyone he met “was being real with each other,” he says, “and I did not forget that.”
His Vanderbilt degree gives him a great deal of pride these days. “I will say that easily the period in my life when my perspectives on the business world, and the world in general, opened the most was the two years I spent at Owen,” he says.
His classmates were “phenomenal,” he says, and his training matched that of his peers in the industry, adding, “I can’t imagine it being much better.”
While there was pressure on Turner and his classmates to do good work, “what emerged was a collaborative, participatory environment,” he says. “It was a culture where everybody kind of understood we were all trying to get somewhere together. That’s not necessarily true in a lot of schools.”
Ray Friedman, the Brownlee O. Currey Professor of Management and Associate Dean of Faculty and Research, remembers Turner as a stellar student, respected by his classmates. “He was focused on managing people and had a sense of the importance of relationships,” Friedman says.
“Brent’s got a level head about him and a way of building relationships. He’s focused on what we have to do and the need to get beyond planning and brainstorming to saying, ‘Let’s make things happen.’”
—Ray Friedman
He’s been equally impressed by Turner’s work as an active alumnus. “He’s got a level head about him and a way of building relationships,” he says. “He’s focused on what we have to do and the need to get beyond planning and brainstorming to saying, ‘Let’s make things happen.’”
After graduating from Owen, Turner did a short stint with a private equity group in Dallas before moving to Seattle and a company called Avenue A, a startup focused on Internet advertising. Over the next nine years, Avenue A became aQuantive, which in turn became the biggest acquisition in Microsoft’s history at a reported $6 billion in 2007.
Turner, who had been Vice President of Operations for aQuantive, moved into the role of General Manager for Search and Media Network Businesses for Microsoft. He was part of the 2008 global rollout of Microsoft Media Network, Microsoft’s online display media business. Then, in 2009, he helped lead the global launch of Bing, a Microsoft Web search engine that now also powers Yahoo! Search.
From Microsoft, Turner headed to Marchex, a publicly traded company that is experiencing rebirth through a focus on digital call advertising. Marchex helps companies reach the right prospective customers using mobile media.
Instead of advertisers calling customers, smartphones provide the opportunities for consumers to place calls through the digital ads that they encounter while searching and browsing the Internet. “Most advertisers are intimidated by the complexity of figuring out how to place all those ads effectively,” Turner says. “That creates a role for an intermediary. We develop relationships with publishers of mobile advertising and make placing ads with them easy. Our job is to drive phone calls for our advertiser partners in a way that works for them economically and is not overly complex.”
Turner enjoys being on the front end of this new frontier in advertising. “There are a lot more opportunities than most people realize in these early stages,” he says.
Understanding the Conversation
Not surprising, Turner directs his energy into volunteer work in Seattle as well, chairing the board of REST, or Real Escape from the Sex Trade, a faith-based organization that seeks to divert at-risk minors from being trafficked into prostitution. There are a surprisingly large number of minors working as prostitutes in the Seattle area: REST puts current estimates at 450.
“In the garden variety case, a girl has a broken relationship with her parents and becomes a runaway,” Turner says. He explains that she might take a job in a strip club or a bikini barista stand where she is then befriended by a pimp who makes her feel special, at least initially.
Turner channels his business acumen into understanding, as he says, “the demand side of the equation so we can come up with strategies for reducing the number of ‘johns’ hiring the girls.” REST also works to proactively identify girls who are at risk and give them alternatives.
“We want to find choke points where we can prevent them from entering the life. We want to help them find work and understand their identity—that they are children of God,” he says.
The work is difficult and emotionally demanding—“This ain’t for everybody,” he explains—but it’s ultimately rewarding when girls come out of life on the streets.
Although Turner loves Seattle and is connected to the city in many ways, he relishes each opportunity to return to Nashville. When not in meetings at Vanderbilt, he often hops in his car for a visit to Columbia, Tenn., where his mother lives.
“I probably see her more often than most parents with local children,” he says with a laugh.
That filial devotion is not unlike the commitment he feels toward Owen. Turner believes that the school and its focus on an intimate community should not be taken any more for granted than a parent. It’s a message he hammered home in a speech to last year’s graduating class. “Make sure you appreciate just how special our culture is at Owen. Don’t forget just how awesome your classmates, faculty and fellow alumni are because you have had the opportunity to get to know them so well,” he said in the speech.
Turner is frequently reminded of the high caliber of people associated with the school, particularly in his work with the Board of Visitors. “This is an impressive stakeholder group,” he says. “These people are used to board seats and understand the conversation. They’re very good at getting their fingers right on some of the key issues or root drivers of problems and then stating their views on how to solve them. It’s pretty amazing in that crowd how quickly you go from stating an issue to some fairly clear and prescriptive input at a tangible level.”
As deserving as Turner is to be among those Board of Visitors members, he can’t help but inject some self-effacing humor into the discussion of his own place on the board. “They’re lowering their standards to have me on this thing,” he says. And then, he pauses to reflect on the scope of his alumni work at Vanderbilt.
“In my life, I’ve had the opportunity to do lots of things that are pretty amazing,” he says. “This is one of them.”
This wasn’t the first time I’d heard that sentiment. In this case, Smoke Wallin, MBA’93, spoke up at a meeting of the Alumni Board in late 2010 as part of a discussion on how the school could move up in the rankings and attract the best applicants. But telling our story meant more than just having our faculty’s work cited in The Wall Street Journal or on Marketplace. To really break through the clutter and claims of other schools, we needed a bolder brand identity that would make the world sit up and take notice, proclaiming loud and clear that we are second to none.
For years, Vanderbilt’s business school has been talked about as a “hidden gem,” a “best-kept secret,” a place that “you’ve got to experience to understand.” Those aren’t entirely bad qualities, and for a long time those attributes helped distinguish us from other top-ranked schools.
However, with an aggressive new strategic plan in place, which includes pushing into the top-20 B-schools amid ever-greater competition for talent, we could no longer afford to be a hidden gem or best-kept secret. Telling our story had become—and remains—a competitive imperative. Below are just a few of the key steps in our yearlong journey.
Step 1
Find a creative partner
In the same way consumer brands tap into renowned advertising agencies to sharpen their edges (and boost sales), we too set out in early 2011 to find a firm to help raise the school’s profile. With the support of an internal advisory board, we screened more than a dozen agencies from across the country, including ones that had worked with other top B-schools. We plowed through a mountain of amazing—and some not so amazing—work, finally narrowing the field to three firms. Each of these finalists presented their capabilities, including a broad array of creative approaches they’d used to help other clients achieve their goals. But in the end we selected an agency in Columbus, Ohio, called Ologie. A highly creative branding agency with about 50 employees, it has a client base that ranges from nonprofits and academic institutions, such as the Cleveland Clinic and Purdue University, to private companies like NetJets and the Food Network. Their creative team blended bold designs with smart, mission-driven content. It was a perfect match for our intimate, collaborative, and yet academically rigorous personality.
Step 2
Prioritize our audiences and objectives
Everyone agreed that we needed to tell our story, and tell it boldly. But who needed to hear it? Obviously prospective students are a core audience. As is the wider Owen community, including faculty, current students and alumni. We also wanted to reach peer schools, which hold sway in the rankings and whose institutions serve as feeders for top student and research talent. But the one constituency that, with Ologie’s help, we learned could really spark a virtuous cycle was corporate recruiters—those who hire our students as interns and graduates. By broadening and deepening our relationships with employers, we’d see a short-term payoff in higher starting salaries and greater job placements. In addition, we hoped to leverage a growing alumni base within select companies to help boost our national profile for the long term and further strengthen the school’s network.
Step 3
Discover ourselves
Now that we knew who should hear our story, the next question was just as important: What story do we want to tell? Each of us can rattle off five or six great things about Vanderbilt’s business school, but honing that message in a way that’s unique, credible and resonant with the people we’re trying to reach is a daunting task. So Ologie started by talking with dozens of stakeholders—faculty, staff, students of all programs and ages, as well as employers. Everyone agreed that “culture” was our single biggest strength. But here’s the rub: No two people described the culture in the same way. What’s more, employers don’t immediately see how our culture benefits their organizations. Ologie worked through this problem and identified a vocabulary for talking about our culture in a way that all audiences would find compelling and beneficial.
Step 4
Create … then listen, listen, listen
Rather than go straight to designing a new series of ads, Ologie first drafted a manifesto—a galvanizing public declaration that explained in clear, energetic terms why this school is special. (Incidentally Apple’s “Think Different” campaign started with a manifesto.)
The agency then brought these ideas to life with a series of mock-ups of advertisements, sample pages from an MBA viewbook, online ads and layouts of all the other materials we use on a day-to-day basis to promote the school. Our job was to take those items back to our audiences and understand what worked, what didn’t and why.
As expected, there were elements that resonated with everyone, such as, “We’re the B-school built for the persistent. The genuine.” There were some that split opinions: Students rallied around “Rewrite the Rules,” for example, but alumni disliked it. And there were other things that were simply best left on the cutting room floor.
Step 5
A breakthrough!
Using this feedback we spent much of the summer refining (and refining some more) the points that proved most salient among all the people we surveyed. Finally we began to see the outlines emerge of what we believe is a profound and truly unique brand narrative for the school.
Step 6
Tell the world
The time had come to begin incorporating these new design and content elements into our marketing materials. The first step involved developing a positioning brochure that homed in on our manifesto in a creative manner. We also worked with Ologie to create an 83-page booklet using stats, facts, quotes, people and places to tell all that’s worth knowing about Vanderbilt’s MBA program. Over a six-week period, we sent these two items to more than 6,000 prospective students as well as 1,000 B-school deans, MBA and Executive MBA program directors. The results? It’s too early to tell, but, if it’s any indication, Jim Bradford got a call from another dean telling him that he liked the book so much that he was going to copy it.
Starting in 2012, we began dialing back our involvement with Ologie. We’re now turning to an extended Nashville-based team of copywriters and designers to help translate Ologie’s new ideas and fresh look into our websites and future marketing materials. Next up is an ad for both print and larger displays, such as at airports.
As you watch these materials take shape, I think you’ll find that they are truly different than anything we’ve done before. And yet, they capture our spirit perfectly—just as we had hoped.
March 7: Michael Burcham, Lecturer of Entrepreneurship, has been chosen as a “champion of change” as part of President Barack Obama’s “Winning the Future” initiative. Burcham was honored at a White House ceremony for his leadership in mentoring the next generation of entrepreneurs.
Bloomberg Businessweek
Nov. 2: MF Global Holdings Ltd.’s bankruptcy, the eighth-largest in U.S. history, is exposing a lack of internal controls that may have prevented a last-minute rescue of Jon Corzine’s futures broker. Hans Stoll, the Anne Marie and Thomas B. Walker Jr. Professor of Finance and Director of the Financial Markets Research Center, is quoted.
Jan. 11: B-school electives have taken a turn for the creative, tackling everything from New York City’s problems to health care to humanitarian relief. In the Fundamentals of Quality Improvement in Health Care elective, students from the Owen School join nursing and medical students to focus on process improvements at Vanderbilt University Medical Center.
CNNMoney
Feb. 3: Worried that the Federal Reserve and the U.S. dollar are on the brink of collapse, lawmakers from 13 states, including Minnesota, Tennessee, Iowa, South Carolina and Georgia, are seeking approval from their state governments to either issue their own alternative currency or explore it as an option. David Parsley, the E. Bronson Ingram Professor of Economics and Finance, is quoted.
Feb. 4: For some, Super Bowl Sunday is all about the game. For others, the ads take center stage. Jennifer Escalas, Associate Professor of Marketing, offers three keys to a killer Super Bowl ad: a meaningful narrative, strong linkage to the brand, and “equity,” which occurs when brands that appear perennially build up a positive association in consumers’ minds.
The Dallas Morning News
Feb. 14: Life-threatening problems persist at Parkland Memorial Hospital and are more widespread than previously known, enabled by a “business as usual” culture that has kept it from fixing serious breakdowns, according to a new report. Ranga Ramanujam, Associate Professor of Management, is quoted.
The Economist
Jan. 3: As Brazil’s economy booms, U.S. business schools are catering to increased interest in the country by seeking new partnerships and programs with local institutions. Vanderbilt’s Americas MBA for Executives program is mentioned.
Financial Times
Jan. 30: The Owen School ranks No. 4 nationally and No. 7 internationally in the human resources category of the Financial Times Global MBA Ranking 2012.
Jan. 30: Interest in joint J.D. and MBA programs is being driven by changes in the demand for legal services, says Dean Jim Bradford.
Forbes
Dec. 2: Insurance is not a wealth redistribution tool in which good risks cover the bad ones to ensure that everyone pays the same rate, writes Larry Van Horn, Associate Professor of Management and Executive Director of Health Affairs.
Jan. 26: Bruce Barry, the Brownlee O. Currey Jr. Professor of Management, is quoted about clichés and jargon used all too frequently in the business world.
Fortune
Nov. 23: MBA applicants from India and China face significantly higher rates of rejection by many top U.S. business schools than either domestic candidates or those from Europe or Latin America, according to a new study by Poets & Quants. John Roeder, Director of Admissions, is quoted.
Dec. 9: The Owen School rose three places to 25th this year in a new ranking by Poets & Quants. The list is a composite of the five major MBA rankings published by Bloomberg Businessweek, The Economist, Financial Times, Forbes and U.S. News & World Report.
The Globe and Mail
March 13: Diverse in scope, new executive MBA programs often share similar features: an international learning component, a blend of in-class and online study, and curriculum delivered by multiple partners. The Americas MBA for Executives program is mentioned.
Investor’s Business Daily
Feb. 14: Companies can teach people to boost their what-if mindsets and can learn how to generate new approaches by working with employees in a number of brain-building drills. For example, David Owens, Professor of the Practice of Management and Innovation, suggests allowing workers to get out from behind their desks and try thinking in a new place. Read more about David Owens.
Politico
Nov. 29: Opponents of Dodd-Frank financial regulations have been emboldened by a circuit court ruling that faulted the Securities and Exchange Commission for failing to determine the full costs of implementing the law. The SEC responded to the ruling by bulking up its Division of Risk, Strategy and Financial Innovation, a sort of in-house think tank created in 2009 to examine the economic impact of the rules. The appointment of Craig Lewis, the Madison S. Wigginton Chair of Management, to lead the division is mentioned.
SmartMoney
Dec. 11: There is one way to steady a stock portfolio without unloading shares: an options strategy known as “covered calls.” The idea is to collect extra income now in exchange for giving up potential gains later. Bob Whaley, the Valere Blair Potter Professor of Finance, is quoted.
U.S. News & World Report
Feb. 23: Business students seem to be increasingly seeking jobs in the policy, technology and management of education, say education professionals. The Owen School is among the top-ranked business schools that have student-run education clubs.
Feb. 29: Three-year programs are increasingly being explored by colleges and college-bound students and parents as a more affordable route to a degree. Others, like Vanderbilt alumnus Ted Griffith, BS’08, MSF’09, earned both a bachelor’s degree and a master’s in four years.
March 13: The Owen School improved to No. 25, three spots better than last year, in U.S. News & World Report’s latest rankings of business schools. Read more about the rankings.
March 21:Read McNamara, MA’76, Executive Director of the Career Management Center, discusses sectors that are hiring and offers advice to B-school graduates.
April 3: Admissions officers at the Owen School discuss what they look for in applicants and what sets the school apart.
The Wall Street Journal
March 28: Alumnus Doug Parker, MBA’86, Chairman and CEO of US Airways, is interviewed about consolidation in the airline industry.
April 5: The Owen School has increased support for job-seeking foreign students by hiring a dedicated career-services staffer for the international contingent; scheduling “how I did it” presentations by international students who successfully secured jobs in the U.S.; organizing job-hunting trips to Asia; and offering webinars to address cultural gaps and identify companies that are more open to sponsorship. Tami Fassinger, BA’85, Chief Recruiting Officer, and alumnus Juan Jose Thorne, MBA’10, are quoted.
Running a craft brewery requires a personal touch, but few pour themselves into the job like Linus Hall. His Nashville-based Yazoo Brewing Co., which has expanded its reach across the Southeast since opening in 2003, is as much a testament to his handcrafted approach to beer making as it is to the larger aesthetic and philosophy that guide his decisions as a business owner.
“You go down the beer aisle of any grocery store, and it’s mostly run-of-the-mill brands in boring metallic blue cans,” he says. “We try to go in the opposite direction with our brewery by being offbeat and memorable.”
Named for the river that winds its way past Hall’s hometown of Vicksburg, Miss., Yazoo produces nine different types of beer, including a rotating seasonal variety. Several of them have labels featuring paintings by his wife, Lila. “Even though we ended up in Nashville, we wanted to reflect our Mississippi roots in our name and image,” he says. “It’s about capturing that Delta folk-art feel.”
Distinctive as it is, the branding explains only part of Yazoo’s growing popularity. From the outset Hall knew that success hinged not only on the quality of his beer, for which he turned to the American Brewer’s Guild for a craft-brewing course, but also on the quality of his business plan. For the latter he enrolled in the Vanderbilt Executive MBA program, which he says gave him a strong foundation in strategy and operations, as well as a better understanding of what it takes to be an entrepreneur.
Nearly 10 years into it, Hall still gets a heady feeling from being in charge of the business he’s built from the ground up. It’s not unlike the warm sense of satisfaction that his patrons feel after sampling one of Yazoo’s fresh drafts.
“If you don’t get a thrill from what you’re doing, you’re not going to make it,” he says. “For me that thrill is walking into the taproom on a busy night and seeing customers enjoying our beer and having great conversations.
“Beer brings people together, but good beer makes them happier.”
Sheru Chowdhry, MBA’00, laughs about his earliest experience living in New York City. His first apartment was in Times Square, and there was little respite from the noise and lights. “It’s a wonder that I didn’t end up half-deaf and half-blind from all of that,” he says. “It was sensory overload.”
Chowdhry eventually settled on the other side of the Hudson River, where today he and his wife are raising their two children. The move has afforded him a better perspective on the city. “You can’t beat the view of the skyline,” he says. “Of course, I still work in Manhattan, but it’s nice to be able to step outside of it and take it all in.”
In some sense, Chowdhry had to go through a similar shift in his career, and he now appreciates what he does for a living all the more. As Managing Director and Partner at Paulson & Co., a New York-based hedge fund company, he is fully immersed in the investment, or “buy,” side of Wall Street. Among his responsibilities is overseeing Paulson’s investments in distressed securities, such as companies that are entering bankruptcy.
“I love what I do,” he says. “Bankruptcy investing is a good amalgamation of legal, financial and strategic thinking—about how we position ourselves in the capital structure and create value for the investors.”
Prior to Paulson, Chowdhry worked in mergers and acquisitions on the banking side of finance. It was not a good fit, he admits. “I was an M&A banker for three years, but it wasn’t right for me,” he says. “The buy side was calling me.”
Fortunately his Owen experience helped prepare him for the adjustment. “Vanderbilt was one of the best things that happened to me,” he says. “It has such an excellent finance program, and I learned so much from my fellowship working at the Financial Markets Research Center.”
It was this debt of gratitude that prompted Chowdhry to host Owen students during this past October’s Wall Street Week, a tour of several different financial firms organized by the school’s Career Management Center. Chowdhry gave the students an overview of how Paulson’s hedge funds operate, but the opportunity also let him share some advice about working on Wall Street—advice that comes only from having a broad perspective.
“Markets can be taxing, so it’s important that you find that sweet spot and love what you do,” he says. “In the long run, the people who do best are those who enjoy their careers.”