Category: Departments

  • Owen News Briefs

    Administratively Speaking

    Dean Eric Johnson announced several appointments and reappointments recently. Salvatore T. March, the David K. Wilson Professor of Management, has been named associate dean for faculty. Nancy Lea Hyer, associate professor of operations management, and Karl Hackenbrack, associate professor of management and faculty director, MAcc Programs, continue in their roles as associate deans. As associate dean for faculty, March focuses on faculty development and recruitment. Hyer will continue as associate dean for Vanderbilt MBA programs. Associate Dean Hackenbrack continues his work with the Master of Accountancy and Master of Accountancy Valuation programs, as well as evaluation initiatives such as Owen’s AACSB maintenance accreditation. Read McNamara is now managing director of the Career Management Center and corporate affairs. While continuing to oversee CMC efforts, McNamara will concentrate on corporate engagement to enhance Owen’s reputation, build relationships that support all of Owen’s corporate interactions and develop new placement opportunities. Additionally, Emily Anderson has been named director of operations and coaching for the CMC. Most recently senior associate director and director of internal operations, Anderson adds responsibility for the MBA/MSF coaches to her oversight of recruiting operations.

    Making the top 10

    The Princeton Review is out with its annual Best B-Schools Guide, complete with Top 10 lists that help students find the right fit. Vanderbilt’s Owen School appeared in three Top 10 categories: Best Administered (No. 4), Best Professors (No. 6) and Best Campus Environment (No. 8). Princeton Review also offers a list of other schools applicants considered before deciding that Vanderbilt’s Owen School was their best fit. See vu.edu/owenblog-PRtopten

    Celebrating Peter Veruki

    After nearly 20 years and thousands of miles on the road, Peter Veruki recently retired as director of corporate relations. The school honored his many contributions to Owen with events in Nashville and New York. Veruki joined Owen in 1988 and spent 11 years building the Career Management Center. He then took a short break before letting himself be lured back in 2005 to assist with alumni and employer relations.

    Peter Veruki
    From left, Betty Jane “BJ” Taylor, BS’60, Dewey Daane and Peter Veruki

    Which MBA?

    The Economist’s new ‘Which MBA?’ ranking places Vanderbilt at No. 34 globally and No. 23 in North America. In addition, students who were surveyed gave high marks for the school’s career opportunities (No. 15 globally), career services (No. 10 globally) and alumni effectiveness (No. 14 globally).

    Prepared, competitive and successful

    Owen teams are racking up top finishes in case competitions and other challenges against other top schools in a variety of disciplines. Recent honors include:

    First-place wins
    2013 Chicago Quantitative Alliance Challenge
    Asia Brumwell, MSF’13, Chad Hooker, MSF’13, Zach Kennedy, MSF’13, and Kelly Smith, MSF’13

    2013 Emory Leadership in Health Care Case Competition
    Brett Pentz, MBA’13, Baxter Webb, MBA’13, and 2014 MBA candidates Alex Johnson, Kristen O’Neill and Cole Wheeler

    Executive Leadership Forum team

    Second-place wins

    2013 Executive Leadership Forum Business Case Competition
    Andre Hill, MBA’13, and 2014 MBA candidates Veronica Barnes, Sharde Miller, Shandra Scott and Ketiwe Zipperer

    Other key finishes

    2013 UNC Real Estate Development Challenge—Third-place honors
    Greg Hill, MBA’13, Walker Mathews, MBA’13, Kalen Stanton, MBA’13, and 2014 MBA candidate Dan Bresnahan

    2013 International Impact Investing Challenge—Finalist
    Timothy Barbis, MBA’13, and
    Lucas Wilkinson, MBA’13

    Foster care executive awarded tuition-free MBA

    Stephanie Barger
    Stephanie Barger

    Stephanie Barger, vice president of strategy and operations at Monroe Harding, a nonprofit that provides care and support for foster children, has been named this year’s recipient of a full-tuition sponsorship to the Vanderbilt Owen Graduate School of Management’s Executive MBA program. The Owen School funds the award, which covers the full cost of the two-year tuition, and selects the winner in partnership with the Nashville Center for Nonprofit Management.

    Boxing and bonding

    Students volunteering at Second Harvest
    It was all about bonding as a class and helping. Incoming students spent part of Orientation serving the Nashville community. Among the nonprofits they helped was Second Harvest Food Bank.From left, Kristina Arntz, Hisa Yamaoka, Lee J. Webb and Elizabeth Timbs.

     

  • New faculty, new strengths

    Five new faculty joined Owen this year. With diverse backgrounds and experience, the new Owen professors combine teaching with research interests that include finance, marketing, accounting and labor contracting.

    Nicholas G. Crain

    Crain, assistant professor of management, served as associate professor of naval science at the University of Idaho and as a division officer in the U.S. Navy aboard the USS Augusta, a nuclear-powered submarine. His dissertation, “Career Concerns and Venture Capital,” was named runner-up for the London Business School’s 2012 Coller Ph.D. Prize. His research interests include venture capital, private equity, corporate finance and initial public offerings.

    Kelly L. Haws

    Associate Professor of Management Haws studies consumer behavior, with a particular focus on issues related to consumer welfare. Previously, she was assistant professor of marketing and Mays Research Fellow at Texas A&M University’s Mays Business School. Her research considers self-control strategies, optimal consumption, measurement issues, and behavioral pricing.

    Catherine F. Lee

    Assistant Professor of Management Lee studies political influence on financial statements, particularly with regard to the American Jobs Creation Act of 2004. Formerly, Lee worked for JPMorgan Chase & Co. as a finance and accounting analyst and as an investment banking associate in renewable energy. She is interested in political influence, decisions around financial reporting, regulation and standards setting, managerial incentives, the effect of taxes on business decisions, and risk management. For more information on Lee, visit vu.edu/lee-newfaculty.

    Michael D. Stuart

    Stuart, assistant professor of management, is a certified public accountant who worked as an audit manager at Mayer Hoffman McCann and as an audit senior at Ernst & Young. Stuart’s work on the relation between CEO inside debt holdings and the riskiness of firm investment and financial policies appeared in the Journal of Financial Economics. His research interests include financial reporting, executive compensation, capital markets and corporate governance.

    Edward D. Van Wesep

    Associate Professor of Management Van Wesep studies the theory and practice of labor contracting, including the design of teacher contracts and performance measures. He worked as a business analyst at Capital One Financial Corp. and an associate at McKinsey & Co., and has entrepreneurial experience as a co-founder of the specialty finance firm Risk Allocation Systems. His research covers contracting, compensation, finance, game theory, microeconomics, and political economy.

    Dean Eric Johnson noted that the new faculty bring important research and teaching skills to Owen. “The research our professors undertake has an important impact in the classroom—as well as the real world of business and organizations,” Johnson says. “I look forward to the contributions our newest professors will make.”

    Nicholas_Crane
    Nicholas Crane
    Kelly Haws
    Kelly Haws
    Catherine Lee
    Catherine Lee
    Michael Stuart
    Michael Stuart
    Edward Van Wesep
    Edward Van Wesep
  • Health care conference explores winds of change

    RFernandopulle
    More than 350 people attended the Vanderbilt Health Care Conference, which is quickly becoming a signature event for Owen. Speaker Rushika Fernandopulle challenged them to radically reinvent health care.

    Transformation and innovation were watchwords at the sixth annual student-organized Vanderbilt Health Care Conference and Career Fair on Oct. 25.

    Morning keynote speaker Dr. Rushika Fernandopulle offered challenging and inspiring advice to the more than 350 students, faculty, community leaders and health care professionals gathered at Nashville’s new Music City Center convention facility. The practicing physician and co-founder and CEO of Cambridge, Mass.-based Iora Health, discussed his firm’s radical model of primary care, which provides health coaches and doctors who will do just about anything to help patients take better care of their health. “If you don’t break the rules, it’s not innovation,” he told the audience.

    Nina Nashif, founder and CEO of Healthbox, which hopes to bring startup ingenuity to the health care industry, provided a second keynote address. Healthbox identifies high-potential health care technology startups and provides support that enables their development and growth. Nashif suggested that innovators can change the industry if they 1) co-create solutions alongside established health care organizations, 2) help change those organizations’ DNA so that they are more open to new things, and 3) start searching for small bets that might yield high rewards.

    Other activities included panels led by industry professionals, a career fair and recruiting booths. Conference co-chairs Megan Eberhard and Kristen O’Neill, both second-year Health Care MBA students, reported that the event drew students from more than 20 schools, as well as professionals from across the nation.

  • Restoring Music History…Again

    Restoring Music History…Again

    Steve Buchanan may be the only Owen graduate responsible for saving music history twice.

    As general manager of the Ryman Auditorium in downtown Nashville, revered as the Mother Church of Country Music, Buchanan oversaw the building’s million dollar renovation and reinstatement as one of the world’s premiere music venues.

    Flood waters at the Opry stage door, May 3, 2010
    Flood waters at the Opry stage door, May 3, 2010

    On May 2, 2010, the momentous flood that destroyed parts of Nashville also devastated the Grand Ole Opry House at Opryland in Donelson, the home to the Grand Ole Opry since the 1970s. In the hours when floodwaters entered the building and rose, Buchanan and a team of 10-15 workers courage-ously stayed in the flood zone to protect and preserve instruments, historic recordings and other artifacts by moving them to safety. Even so, not everything could be saved.

    When the rain stopped, the ground floor of the 4,400-seat Opry house was covered with muddy water up to its back four rows. Forty-six inches of water covered the stage. Almost everything would need to be replaced: seats, retail store, lobby, dressing rooms, green room, control booth, stage, stage curtains and rigging, along with the mechanical and power systems.

    Buchanan once again found himself charged with restoring another cherished building. “It breaks your heart, but it’s our responsibility to be sure that that building comes back to life, and it will,” Buchanan told USA Today.

    In addition to overseeing the physical renovation of the building, Buchanan immediately hired restorers, conservators and luthiers (specialists in string instruments) to care for the historic artifacts, photos, tapes, costumes and instruments impacted by flood damage.

    “After the flood waters receded, Steve led the recovery of the property—literally and figuratively,” noted Dave Kloeppel, BS’91, MBA’96, former president and COO of Gaylord Entertainment Company. “Importantly, Steve insisted the Opry never miss a show—and it didn’t. Using venues all over Nashville, the Opry never missed a beat.”

    Steve Buchanan on set of Nashville series. (John Russell/Vanderbilt University)

    Five short months later, Buchanan and the cast of the Grand Ole Opry stood on a new stage in a renovated Opry House and welcomed audiences back with a celebration dubbed “Country Comes Home.” Backstage, performers marveled over 17 dressing rooms, facilities, instrument lockers and a comfortable, cheery green room that featured a new artifact—a marker showing how high the waters reached in the historic flood.

    In recognition of his resilience, courage and dedication to excellence, Owen honored Buchanan with the school’s inaugural Distinguished Service Award at Owen’s annual alumni dinner in 2012.

  • On Their Own Time

    Just because you’re a business professor doesn’t mean you have to be all business, all the time, and Owen faculty are no exception. Among them are a champion trick water-skier, charcutier, screenwriter, barkeep (and builder) and owner of a multimillion-dollar company. They shine in the classroom—why not out of it? Meet five professors who are doing just that.

    Going Green

    Bob_Whaley

    Fifteen years ago, Bob Whaley and his wife, Sondra, MBA’82, visited Ireland and fell in love with the people, food, countryside and culture. Over the years, they have returned numerous times to visit, but going back just wasn’t enough. So they decided to bring a bit of Ireland to Tennessee.

    “When you go into the Irish pubs, the people are so friendly and charming—they talk to you like they’ve known you forever,” says Whaley, the Valere Blair Potter Professor of Finance and professor of management. “We wanted to create that kind of atmosphere for ourselves and our friends, and so we did.”

    Whaley, who is also co-director of the Financial Markets Research Center, used his carpentry experience and the help of his college-age son to transform his home’s entire lower level, including the garage, into a 1,500- square-foot Irish pub dubbed Whaley Tavern. Just like the ones in the Emerald Isle, this watering hole has Irish brews like Guinness and Smithwick’s on tap, game tables and dartboards to keep patrons occupied, and Irish flags adorning dark wood paneled walls.

    The Whaleys entertain year around, but they go all out on St. Patrick’s Day. Around 100 or so fellow Hibernophiles crowd the place to feast on Guinness stew and shepherd pie, shoot pool and sing shanties over a pint (or two). While he won’t name-drop, Whaley says more than a few popular singer-songwriters have been known to stop by and perform (signed guitars on the walls are proof).

    With all this talk of Ireland, one has to wonder if Whaley has some Irish blood in his veins.

    “I did some searching and I think my parents’ lineage is English, not Irish,” he says. “I found a Jerusalem Whaley—I’m not sure I’m a descendent, but you never know. I may have to go over there and do some digging.”

    Different Strokes

    Jennifer Escalas isn’t an enthusiastic swimmer, but that hasn’t stopped the associate professor of marketing from launching and running what has become a $3 million-a-year swimwear company.

    She is married to swimmer Rafael Escalas, who competed in the 1980 and 1984 Olympic games for his home country of Spain. The two met during their undergraduate years at University of California, Los Angeles, where she was studying Spanish and he was an engineering major competing on the university swim team.

    “When we started dating, his swim schedule was just something I put up with,” Escalas says. “I didn’t realize how much dedication it took.”

    After they married and moved to North Carolina and she entered the Ph.D. program at Duke University, they decided it was time to start their own company. He quit his engineering job and together they launched Agon Sport, a competitive swimwear company. He set up the factory in Spain and she took on the marketing and the books.

    “We didn’t have a stash of money,” she says. “We maxed out credit cards and took out a second mortgage to get the business off the ground.”

    The gamble paid off. In 2012, they created custom swimsuits for more than 1,800 swim teams—including their 16-year-old daughter Elena’s high school team. “Nike doesn’t create custom suits, so we fill a really important niche,” she says.

    In the classroom, Escalas often uses examples of challenges encountered in her business and that has given her credibility with her students, she says.

    “I don’t just write articles about how to run a successful, profitable business, I am actually doing that,” she says. “I think my students are far more impressed with that than my Ph.D.”

    Writing the past

    By day, her world is black and white—debits and credits, columns in a spreadsheet, numbers in a row. But by night Debra Jeter’s world is sepia-toned and dreamlike, as she weaves words into short stories, screenplays and novels that draw on her life as a child in rural Kentucky.

    “I’m happier when I’m writing,” says the associate professor of accounting. “I’m more productive if I’m preparing for class or interacting with my students if I’ve got a project going. It makes my whole day go better.”

    A recent project brought her talents to the national stage. The prestigious Sundance Film Festival chose Jess + Moss, an art-house film she helped pen and executive produce with her son Clay, as an official selection. It’s a bittersweet coming-of-age story about two cousins spending the summer at their grandmother’s house for the last time.

    “We shot Jess + Moss in a very short time period at my grandmother’s abandoned farmhouse in Lynn Grove, Ky.,” Jeter says. “It was shot on aged film stock to give it that grainy quality—grainy the way my memories are of spending all my summers there.”

    The film was well received by critics, which she attributes to Clay, a former child actor, who directed.

    “It was unbelievable for us at Sundance, seeing people lined up to see our film—for the first time it was real,” Jeter says.

    Jeter juggles numerous writing projects, including a script for a TV pilot about a real estate office in a small Southern town that is based on the lives of her father and sister.

    “Their stories could fill several books,” she says. “I just don’t think I’ll ever run out of stories to tell.”

    The Art of the Meal

    Craig Lewis has a secret identity. Students and fellow Owen faculty know him as the Madison S. Wigginton Chair of Management and a finance professor. His colleagues at the Security Exchange Commission in Washington, D.C., know him as the SEC’s chief economist. And his family knows him as husband and father. But many don’t know he is also a charcutier—a curer of meats—a process he has mastered to create his own private-label sausages, pancetta, lardo, salami and coppa.

    It all started after a particularly delicious meal at Nashville’s F. Scott’s restaurant in 2005.

    “They served a nice duck prosciutto and I thought it was interesting,” he says. “I am an amateur chef, and I thought, ‘I can do this.’ Then I found this book called Charcuterie, by Michael Ruhlman and Brian Polcyn, and it just went from there.”

    To dry cure meat, he starts with a piece of farm-fresh pork, which he rubs with a special combination of curing salts over a period of weeks. Then the meat is wrapped in cheesecloth and hung to dry in a cool, humidity-controlled curing chamber for several months.

    “Our house in Nashville doesn’t have a basement, so at one point I bought a large dorm fridge, and rigged it up with a thermostat like microbrewers use,” he says. “I also wanted to be able to monitor it during the day so I put it in my office at Owen.”

    There is no curing chamber in his office at the SEC, but Lewis admits to the occasional pork shoulder hanging in his coat closet in his D.C. home. When he returns to Nashville after his two-year appointment and leave, he looks forward to sharing his gastronomic skills with his colleagues and students once again.

    “I enjoy getting my smaller classes together at the end of the semester for a nice meal,” he says. “Culinary experiences are such a wonderful way to bring people together.”

    A Need for Speed

    Growing up in Bogotá, Colombia, Miguel Palacios never set out to be a competitive water-skier. But Columbia’s warm, year-round climate makes water activities popular. One summer, 7-year-old Miguel went with his father to a nearby sports club and signed up for a water-skiing lesson. Before long, he was skimming across the water at electrifying speeds and performing gravity-defying jumps, spins and flips.

    “It is the most awesome feeling in the world—and it’s only a little bit dangerous,” says the assistant professor of finance with a grin, later explaining that it raises adrenaline without danger.

    Palacios quickly rose in the sport and earned a spot on Colombia’s national water-skiing team. He continued to ski when he could while earning three degrees—a bachelor’s in mechanical engineering from the Universidad de los Andes, Colombia; an MBA from the Darden Business School at University of Virginia; and a master’s in economics and Ph.D. in finance from the University of California, Berkeley.

    Competitive water-skiing requires very specific man-made lakes on which to perform and practice, so it’s not convenient to train just anywhere. But even with a full course load at UC Berkeley, he managed to pull off a third-place ranking in the West Coast men’s division for trick skiing.

    “I like speed,” admits Palacios, who is also an instrument-rated pilot. “It’s so different from what I try to achieve in my academic life, which takes a lot of focus and patience. When I ski, I can let go of everything that’s on my mind.”

    Palacios, who came to Owen in 2009, says he doesn’t get out on the water as often as he would like. But when he does, it’s at a competition-ready lake in nearby Manchester, Tenn.

    “For me it’s just pure fun,” he says, “but water-skiing is also a good lesson for life. When you try, you may fall, but if you want to learn, you have to get back up and try again.”

  • Meeting Warren Buffett

     

    Vanderbilt students gained wisdom straight from the Oracle himself. Here the group gathers with Warren Buffett after lunch.
    Vanderbilt students gained wisdom straight from the Oracle himself. Here the group gathers with Warren Buffett after lunch.

    A few times a year, the second richest man in the U.S. invites students from business schools to meet and ask him anything. On February 22, Owen students traveled to Omaha, Neb., for a day with Warren Buffett. We enlisted second year MBA student Stephanie Dozier to give us a first-person account of the rare opportunity to meet the chair and CEO of Berkshire Hathaway. She and her fellow students also filled social media and blogs with information about their visit.

     

    We almost didn’t make it. The week of our planned trip to meet with Warren Buffett, a major snowstorm went through the country. Omaha was expected to receive 12 inches of snow the evening we were to arrive, so everyone who could got excused from class on Thursday (the final day of Mod 3) and flew out early in the morning instead of late afternoon.

    tweet

    The group chosen for the trip consisted of 10 MBA students (five first years and five second years), three MAcc students, three MSF students, four EMBA students and our adviser, Phil Woodlief, adjunct professor of management. We each applied to be chosen, but the selection was random. I had applied because I knew it would be a once-in-a-lifetime opportunity to meet a brilliant man whom I tremendously respected. We had prepared for months in advance, reading The Essays of Warren Buffett (a compilation of letters to shareholders), discussing what we’d learned about him as an investor and a person, and carefully crafting and choosing questions for the Q&A session. Still, throughout all that, it seemed more like an exercise than preparation for something we would actually do.

    But there we were, on a Friday morning in snowy Omaha, rising early to visit the Nebraska Furniture Mart, a Berkshire Hathaway company. We toured the largest furniture store in the U.S. and listened to stories of how it was founded by Mrs. B, a Russian immigrant who could neither read nor write. And our tour guide? Mrs. B’s great-grandson, the head of real estate development for the company. This was an example of what we’d already learned—Buffett chooses great companies with great management, and continues to give that management free rein to succeed.

    After our tour, we headed to Berkshire Hathaway Headquarters for the meeting with Buffett. We were there with six other business schools, including University of Pennsylvania–Wharton and University of Wisconsin–Madison. NYU’s Stern School of Business was supposed to join us, but the weather had led to their cancellation.

    Buffett opened the room for questions, going alphabetically by school. The questions posed varied, with topics ranging from financial- and investment-related queries to advice for facing challenges, choosing good companies and prioritization, as well as his thoughts on social responsibility and emerging markets. One of our Owen group, MSF candidate Matthew Trautman, was excited to ask Buffett about his private jet—which Buffett has openly called both “indefensible and indispensable.” On that topic, Buffett said that “it’s about the only thing that costs money that makes my life better.”

    It was great to hear his financial perspective from him, but the real value from the experience came in listening to his philosophy on life and career. Some of the key takeaways from the two-hour session with Buffett include:

    • When dealing with a crisis or problem, “get it right, get it fast, get it out, get it over.”
    • Stay within your circle of competence. The most important thing is not how big that circle is, but that you know where the perimeter is. “How do you beat Bobby Fisher? Play something other than chess.”
    • Work for a company of people you admire. Write down the qualities of the people you admire most—these are habits, developed over time—and you can build them in yourself.
    • Since we sit in the shade of trees others have planted, we should plant some ourselves if we have the means.
    • Improving your ability to communicate makes you at least 50 percent more valuable.
    • Time is the precious asset. Buffett doesn’t believe in determining how to live his life based on how other people expect him to live.
    • Think through what you want in life. The main things are interesting activities and great friends. You can’t make a mistake doing something you enjoy with your life. You’ll be a better person.
    • Get out there and do it. Always move forward. Take some risks. “A lot of good things happen by accident.” If you do something you love, good things happen.
    • On the most important job any of us will have: parenting. As parents, we have to be teachers and we don’t get a chance to hit the reset button. We should know that it isn’t what we say, it’s what we do. And never forget about the power of unconditional love.

    After the Q&A, Buffett treated everyone to lunch at his favorite restaurant in Omaha, Piccolo Pete’s, where we finished off our meal with root beer floats. After lunch, Buffett took group photos with each of the schools, and we presented him with gifts we brought from Nashville—Goo Goo Clusters, an inscribed bottle of Jack Daniel’s, and an Owen Hatch Show print.

    buffett_tweet3pix

    Our final stop in Omaha was Borsheim’s, a jewelry store and another of Berkshire Hathaway’s companies. Susan Jacques, president and CEO of Borsheim’s, met with us and discussed her history with the company and Buffett. Buffett has been open about his support of women in leadership, and even requires that all groups that visit him be at least 30 percent women. Knowing this, it was great to hear from one of the women managers that Buffett has supported. She had started with the company in the early 1980s, and told us about the shock she felt when Buffett told her he was promoting her to president in 1994. We had to leave directly from Borsheim’s to go to the airport and back to Nashville, but I was glad we’d had the time to fit in that tour as well.

    Phil Woodlief and students.  A group of students from various programs at Owen (MBAs, first year and second year; EMBAs;
    Phil Woodlief and students. A group of students from various programs at Owen (MBAs, first year and second year; EMBAs;

    In the end, the experience was exactly what I had expected from the Omaha trip: a rare, never-to-be-forgotten opportunity that I experienced by being at Owen.

    Editor’s Note: Adjunct Professor of Management Phil Woodlief spent months applying for and orchestrating the visit, an offshoot of his Financial Statement Analysis Class. Woodclief says that 175 students applied for the 20 spots available on trip so attendees were chosen by lottery.

  • Students Say Thanks

    ClassActBradford Hatch Print_250dpiCurrent Owen students honored outgoing Dean Jim Bradford on April 18 during their last Thursday Social at Owen of the academic year.

    The students surprised him with a specially designed and created Hatch Show Print recognizing Bradford’s tenure as dean. The poster was one of only 100 made using hand-carved images and letterpress printing in Hatch Show Print’s iconic vintage-style, a particular favorite of Bradford’s.

     

     

  • Business-driven

    Nelson Andrews
    Owen EMBA graduate Nelson Andrews is general manager of Andrews Cadillac and Land Rover of Nashville. For mini profile in spring Vanderbilt Business. (John Russell/Vanderbilt University)

    Nelson Andrews III, BA’89, EMBA’95, grew up around the automobile business, but he didn’t see himself making it his career. His father owned a dealership in Michigan before the family moved to Brentwood, Tenn., to establish the area’s first Cadillac dealership. As a teen, Andrews found himself doing whatever needed to be done for the business: mopping floors, manning the parts department, tending the landscape.

    When it came time for college, Andrews majored in political science at Vanderbilt and took computer classes at the School of Engineering. The two fields combined research-oriented, big-picture projects with organization and structure, which suited Andrews’ skills and interests. After graduating from Vanderbilt, he moved to Detroit and a job in the computer industry at Electronic Data Systems. A few years later, however, Andrews recognized that he wanted to do more than computer coding. He wanted to know the principles behind industry and be someone who could lead and shape strategy. Looking at MBA programs, he liked what he saw at the Owen Graduate School of Management.

    “I had a great experience at Vanderbilt as an undergrad and Owen had what I wanted,” Andrews says. He could also help the family business, Andrews Cadillac, by working there and upgrading and integrating its computer systems.

    A funny thing happened during those two years: He discovered he liked the family business. Today, Andrews is general manager of Andrews Cadillac and Land Rover of Nashville, two of Middle-Tennessee’s most successful automobile dealerships.

    As general manager, he oversees everything from planning and construction to special events and sales. The role of planner and strategist suit him, he says.

    “The biggest thing I learned at Owen was strategy. Everything was strategy. It might be Germain Böer’s Financial and Managerial Accounting course, but he really taught strategy,” Andrews says.

    That emphasis on strategy has helped Andrews in the changing world of marketing his business. Where automobile companies used to rely on newspaper, radio and TV advertising to reach customers, Andrews now relies on the wired world. “If a Land Rover customer expresses an interest in off-roading, I can send them an email inviting them to an off-roading event. We can text them when a part is in because that’s how the customer said to reach them,” Andrews says. “It’s much more personal. Customers let us know how they want to be contacted.”

    Andrews and his wife, Trisha, are the parents of four children ranging from 15 to 5. He says that although all but the 5-year-old have helped around the dealership, it’s too soon to tell if any will want to take over the family business. And that’s ok with him.

    “I’m more concerned that they seem to want to go to Michigan for college,” he says.

  • Happy Travels, Tricia

    Tricia Siegfried, EMBA’93 (Vanderbilt Photo / Daniel Dubois)

    Tricia Siegfried, EMBA’83, retired at the end of 2012 after 17 years as Owen’s chief financial officer. “With an overriding passion for this school’s success over the years, she has time and again proven her dedication to Owen,” said Dean Jim Bradford in announcing her retirement. “Her husband, John, has finally convinced her that they need leisurely time to travel.” In the coming year, that travel will include domestic trips, a Baltic Sea cruise, a visit to Egypt and a stay in Australia. Siegfried expects to stay connected to Owen and recently volunteered for her 30th reunion.

  • Media Mentions

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    The Associated Press

    Feb. 18: Doug Parker, MBA’86, CEO of US Airways, is profiled. Parker will lead the newly merged US Airways and American Airlines.

    April 18: The Pilot Flying J headquarters in Knoxville, Tenn., was raided by FBI and IRS agents due to allegations of rebate fraud. The raid signaled fresh scrutiny of competition issues involving the nation’s top retail seller of diesel fuel. Paul Chaney, the E. Bronson Ingram Professor of Accounting, is quoted.

    Bloomberg Businessweek

    Jan. 3: Vanderbilt’s Owen Graduate School of Management ranks ninth among the top business schools in the world in leadership development.

    Jan. 4: Tami Fassinger, chief recruiting officer, is quoted in an article in which business school administrators admit there is a natural inclination for students, especially those who have already found a full-time job, to feel less pressure to ace their classes. However, the administrators urge seniors to keep up the good work through graduation as classmates and school officials may be watching.

    Jan. 10: Business schools that toil in obscurity may soon be able to gain some prominence—for a price. In a new rating system devised by Quacquarelli Symonds, the company behind the QS World University Rankings and a global business school ranking, schools will have to pay for their evaluation. Dean Jim Bradford is quoted.

    Jan. 29: Full-time MBA students head back to business school, aware that—barring access to a healthy trust fund—they’ll have to live as if they’re broke. This can provide great motivation for outside-the-box thinking. Owen second year Walker Matthews Jr. is featured in a story about creative moneymaking ventures that have been tried, with some success, by cash-strapped MBA students.

    Feb. 21: Eight months after the GMAT exam underwent its biggest overhaul in 15 years, the test’s new Integrated Reasoning section is beginning to be used by admissions committees at top business schools to determine which applicants to accept. The Owen School is mentioned.

    March 1: The Owen School is mentioned in a story about how to navigate getting wait-listed at business school.

    March 7: A university in the United Kingdom will officially unveil its “MBA for the Music Industry” program in the United States at a global music event in Hollywood. A similar program offered by the Owen School is referenced.

    March 13: What are the best business school keepsakes? A custom Hatch Show print for the Owen School is one of the more unusual—and affordable—items mentioned.

    Bloomberg Markets

    December 2012: Investors can use derivatives such as VIX futures and options to help shield a portfolio from market disaster. Robert Whaley, the Valere Blair Potter Professor of Finance, is profiled for Bloomberg Markets’ annual 2013 terminal guide, an annual review of investment strategies and trends for institutional investors.

    CNBC Nightly Business Report

    Jan. 25: Research by Nicolas Bollen finds that hedge funds, widely prized for their safety, may contain previously overlooked risks and may be prone to failure of performance for investors.

    Feb. 5: Steve Posavac was interviewed about the impact of shareholder value as it compares to the success of a company’s celebrity endorsements.

    NBC

    Jan. 28: For years, Super Bowl commercials were closely guarded secrets until they aired on the biggest ratings day of the year. These days, companies have discovered that teasing them online in advance of the big day is a more efficient way of getting their brand message in front of the masses. Steve Posavac weighs in.

    Jan. 31: Salacious commercials are as much a part of the Super Bowl experience as instant replays, controversial calls and boring halftime shows. And consumers only have themselves to blame. Or, more accurately, their own conditioned reflex to stimuli. Steve Posavac is quoted.

    March 16: A new ad by Amtrak shows scenes of travelers doing things that are forbidden or frowned upon while traveling on a plane: using electronic devices, moving about and socializing on the train during transit. Steve Posavac is quoted.

    Deseret News

    Jan. 30: With health insurance access being widened under the health care reform law, attention is focused on groups that, presumably, place disproportionate burden on the health care system—mainly smokers and the obese. W. Kip Viscusi, University Distinguished Professor of Law, Economics, and Management, is quoted.

    Environmental Leader

    April 2: Strategic Sustainability Consulting CEO and founder Jennifer Woofter applies to her industry the lessons she has learned from the Coursera course, Leading Strategic Innovation in Organizations, taught by David Owens, professor of the practice of management and innovation at the Owen School.

    Financial Times

    Jan. 30: The Owen School rose three places to No. 53 in the Financial Times’ 2013 roundup of the world’s top business schools.

    Forbes

    March 14: The Owen School invited four financial luminaries to a discussion where they tangled with the country’s current economic issues. One of them was Robert Whaley.

    FOXSports

    Jan. 17: Sports agent Bo McKinnis, MBA’91, worked with Vanderbilt baseball star and now Cy Young Award winner David Price to construct a new $10 million contract with Tampa Bay Devil Rays that smartly saves Price $250,000 in “fiscal cliff” taxes.

    NPR, On Point

    March 31: Larry Van Horn, associate professor of management, was a guest on National Public Radio’s On Point, discussing how states are preparing for the Affordable Care Act, set to roll out in six months.

    Poets and Quants

    Jan. 8: The MBA bashers are everywhere, especially in the media where uninformed reporters are eager to write stories that often make little sense. The latest example surprisingly comes from The Wall Street Journal, which reported on Jan. 7 that MBA pay is declining. The Owen School is mentioned.

    USA Today

    Jan. 24: The mania for Super Bowl teasers—call them ads for ads—began last year, with Volkswagen posting a teaser online aimed at driving folks to social media to get hints about VW’s Super Bowl game ad. Steven Posavac is quoted.

    April 21: Bruce Barry, the Brownlee O. Currey Jr. Professor of Management, is quoted in an article regarding professors who use pop culture in their teaching. Academics are reaching beyond dense economic texts and into the world of pop culture to help students and others recognize that business and economic concepts are all around.

    April 28: As the dust settles on the FBI raid of the Knoxville, Tenn., headquarters of Pilot Flying J, the nation’s largest truck stop chain, the long wait for the legal fallout has begun. Mark Cohen is quoted.

    USA Today College

    April 1: The term “bridge program” is often used to refer to crash courses in business or corporate skills that can give liberal arts majors a boost before entering the working world. The Owen School’s Accelerator program is featured, and Greg Harvey, administrative director of Accelerator, is quoted.

    For more media mentions, visit the newsroom page at owen.vanderbilt.edu.

  • Q & A with Christie St-John

    Christie St-John, MA’94, PhD’99, recently rejoined Owen as director of admissions after eight years as senior associate director of admissions and recruiting for the Tuck School of Business at Dartmouth College. She directs admissions for Owen’s fulltime MBA programs and the MS Finance program. Before beginning her Vanderbilt career in 1997, St-John worked in marketing and in oil and gas trading. St-John, a Nashville native, has lived abroad and traveled extensively for both work and pleasure.

    Christie St-John
    Christie St-John, MA’94, PhD’99

    Q. Welcome back! Tell us a little about your connection to Owen, and what you’re doing now.

    A. I was recruited to Owen from the Vanderbilt Ph.D. program in 1997. I had lived in France and Italy for about eight years and had come back to Nashville in 1992. One day, a friend from the Spanish department who was working with the International Executive MBA Program called and asked if I would be interested in working at Owen.

    I met with Peter Veruki, Susan Motz and Tami Fassinger, and I guess I passed the test since I knew the difference between Saks Fifth Avenue and Goldman Sachs. They liked the fact that I had worked in several industries in the U.S. and in Europe and that I brought a strong international outlook to the program.

    Admissions was quite different from any other job I had been in, and I loved working with the students. I started out managing the exchange programs. Luckily, the dean then, Marty Geisel, was willing to let me expand my role considerably. Because of my eclectic background, in addition to handling the exchange programs, I started doing some international recruiting and helping international students with their resumes and career paths. It soon developed that I was doing just about anything related to international affairs. It was a unique position and allowed me to get to know the students from the time of their first contact with Owen throughout their careers as alumni. I have remained in touch with a number of our alums over the years. It has been so gratifying to receive welcome-back notes from many of them.

    When Tami Fassinger and I started talking about the director of admissions position last summer, I was intrigued. After visiting the school and seeing all the changes that had happened during my nine-year absence, I thought it would be a great opportunity for me to make an impact and contribute a different perspective on MBA recruiting from my work with the Tuck School of Business at Dartmouth.

    Q. What goals do you have for your office?

    A. Recruiting more military candidates, expanding outreach to women and minority candidates, and diversifying our international pool of applicants. To that end, we’ve added several new recruiting events, such as four military-focused recruiting events, a second trip to Latin America, a few stand-alone events and fairs in Europe, and our first foray into Africa. We also joined the Foundation for African Leadership in Business. I’m very excited about this because Africa is in great need of trained managers for their expanding economy. I am very pleased that Owen will be a leader in this endeavor.

    Q. How can alumni help?

    A. I have always believed that alumni are the key to recruiting and yielding great candidates. It is especially helpful when they talk (in person or via email) to prospective candidates because they can share their views on the value of the Vanderbilt MBA. Moreover, our alumni are proof that a Vanderbilt MBA will lead to career success. We urge all alumni to send good prospective candidates to us directly, to help us with our yield of admitted candidates, and to remain involved with the school through any activity that they feel suits them best, whether helping at MBA fairs, recruiting students at their companies, coming back to help with interviewing, or hosting coffee chats or dinners for admitted students.

    I encourage all alumni to contact me directly if they want to be involved. We promise not to abuse their generosity.

    “Alumni are the key to recruiting and yielding great candidates.”

    —Christie St-John

    Q. What differences do you see in Owen of 15 years ago and today?

    A. All the students look younger now! The library has been updated and refurbished and is really impressive. That used to be one of my favorite places to go for research and also to get away from my desk. And, of course, there are more programs today than then, and the overall class size of the MBA program is much smaller.

    I do feel that the international mix needs to be tweaked a bit to include areas where we already have a solid alumni base and new areas that are opening up for MBA talent. I am also very pleased to see the caliber of alums on the Alumni Board and the business people on our Board of Visitors.

    Q. You have a lot of international experience. How will that apply to your new role?

    A. Working in admissions with a focus on international recruiting has led me to more than 70 countries so far. I also served on the evaluation committee at American Councils, an organization launched by former Sen. Edmund Muskie. It provides scholarships for candidates from the former CIS (Commonwealth of Independent States) countries. This gave me the opportunity to travel to some really exotic places, such as Azerbaijan, Kazakhstan, Kyrgyzstan and Ukraine, to name a few.

    I believe in establishing relationships wherever I go, so I am bringing personal contacts with overseas educational advisers and agencies—and Owen alumni—that will help us get the kind of international diversity that we are seeking. Plus, adding Kim Killingsworth to our admission office brings an even larger wealth of international knowledge since Kim had a similar job at Cornell University.

    Q. Your Vanderbilt degrees are in French and Italian. How did you parlay those interests into your recruiting career?

    A. Having language skills permitted me to get meaningful jobs in Europe. It has also meant success in recruiting in Europe. I can talk to potential candidates in their languages and can also speak with corporate recruiters about things other than just business because I know the history and culture of those countries—and other Francophone countries as well. It has allowed me to develop strong relationships with educational advisers, and to empathize with our international students when they come to the U.S.—I’ve been there and I know how confusing it can be. It also helped me have credibility with U.S. students who wanted to work abroad. It isn’t easy and it requires a lot of preparation and a lot of humility.

    Q. If there’s one message you could convey to Owen alumni, what would it be?

    A. We need your help to keep the Owen brand in front of recruiters and prospective students. And we want to stay in touch with you. Above all, please keep us updated as to where you are and what you are doing. I foresee lots of travel in the future where we will need alumni help. The MBA market is becoming more and more competitive, and to show how strong our program is, we need to show off our alums—they are the proof that this program is one of the best for success in one’s career.

  • Matter of Life and Death

    Most people know Parkland Memorial Hospital in Dallas for its heroic efforts to help President John F. Kennedy after he was shot in November 1963.

    Fifty years later, Parkland is once again drawing national attention, only this time, not for its service to the nation, but rather for its woeful record of violating basic patient safety procedures.

    In August 2011, the hospital received a damning 600-page report issued by federal and state regulators detailing scene after painful scene of chaos and confusion. Emergency room patients were repeatedly placed in soiled bedding, children were discharged without proper medical screening, and unqualified medical residents were treating patients. In one instance, on-site regulators were forced to intervene to help lost patients seeking medical attention who were left wandering the halls.

    Ranga Ramanujam
    Ranga Ramanujam

    In short, there have been few—if any—instances of such a large, high-profile public hospital facing similar funding cuts for regularly placing patients in “immediate jeopardy” as a result of the facility’s systemic violation of basic safety practices.

    But the truth is that even without the scathing reports issued by the Centers for Medicare & Medicaid Services, Parkland would have been in crisis. Like most public hospitals, Parkland is an anachronism that has been propped up by a too-important-to-fail mentality.

    In an environment that includes a shrinking margin for medical errors, relentless pressure to cut costs, uncertainty over how to implement the Affordable Care Act, and acute physician and nursing shortages, the status quo is no longer good enough. Safety is more than a matter of operating for a long period without major adverse events—that’s just getting lucky. Instead, safety must be purposefully managed throughout every layer of an institution.

    And doing that requires a fundamental shift in today’s health care organizations. Issues of quality and safety are intensely local and as such, they are not items that can be managed from a suite of executive offices.

    Rather, the hospital of the 21st century demands that management build and maintain organizations designed to encourage what former Treasury Secretary and Alcoa chairman Paul O’Neill calls habitual excellence. Hospital leadership teams should seek to build an organizational infrastructure where employee engagement and continuous improvement are paramount. Improving care for patients can be brought about only by identifying and solving problems in the delivery of that care.

    Hospital CEOs must start these transformations by expanding their traditional definitions of success. While financial outcomes and regulatory compliance remain crucial, management must also set audacious goals around employee engagement, communication and learning.

    As many as 44,000 patients die each year in U.S. hospitals as a result of medical error.

    Patient safety is more likely when clinical employees are treated with respect and dignity, when they’re given the necessary resources to carry out their work, when they are recognized for their contributions, and when they are afforded physical and psychological safety. When these critical preconditions are absent or go unmet and hospital employees are not meaningfully engaged in their work, patients face dangers that are all too real—as Parkland and the people it serves discovered.illustrationmedical heart iconBlueszd

    While the idea of employee engagement may strike some as too squishy or touchy-feely, in the case of medical institutions nothing could be further from the truth. By some estimates, as many as 44,000 patients die each year in U.S. hospitals as a result of medical error—the equivalent of a 9/11-type attack happening each month. That means employee engagement literally becomes a matter of life and death in a clinical setting, a fact that every hospital CEO needs to fully comprehend.

    CEOs must also recognize that change is not easy, especially in an entrenched culture like medicine where doctors typically go unchallenged by nurses and other staff members. Resistance and setbacks are almost guaranteed.

    But with time and effort this will change. It starts at the top. Executives must be as attuned to quality and safety metrics as they are to profits and losses. This means undertaking things like frequent employee surveys and ensuring that senior leadership engages in regular walk-arounds. It may also require new team clinical structures that include physicians, nurses, pharmacists and dietitians who are jointly reviewing cases on a daily basis. There must also be mechanisms that enable and encourage employees to report medical errors and other safety issues.

    Hospital leaders should have a mindset not of fixing problems but rather of redesigning structures and processes in a way that delivers care that is safer, more cost-effective and, most important, patient-focused.

    The need to implement effective health care organizations has become as pressing as the need for medical breakthroughs. Safety is too important to be left to chance.

    A version of this article originally appeared in the Dallas Morning News as part of a continuing series on safety problems at that city’s Parkland Memorial Hospital. Associate Professor of Management Rangaraj “Ranga” Ramanujam’s current research examines leadership, communication and learning processes in enhancing the quality and safety of health care.

  • Honoring Three of Our Best

    Germain Böer
    Germain Böer
    Dick Daft
    Dick Daft

    Hans Stoll
    Hans Stoll

    The Vanderbilt University Board of Trust has bestowed emeritus status on three of Owen’s most acclaimed faculty. Germain Böer, Richard Daft and Hans Stoll were honored during Commencement as the school’s newest faculty emeriti.

    Böer, who was professor of accounting, as well as director of the Owen Entrepreneurship Center, is now professor of accounting, emeritus. Daft, formerly Brownlee O. Currey, Jr. Professor of Management, is now professor of management, emeritus. Stoll, the Anne Marie and Thomas B. Walker Jr. Professor of Finance, is now professor of finance, emeritus.

    “Together, these three professors have dedicated more than 90 years of scholarship and teaching to Owen. They have been favorite professors to hundreds of students and outstanding colleagues with whom it has been a pleasure to work,” says Dean Jim Bradford. “I regret that their retirement will rob future students and faculty of the opportunity to learn from them.”

  • Not So Safe

    InBusiness_Volatility Ahead-iStock_450

    The original premise of a “hedged fund,” as a financial journalist originally described the concept in 1949, was simple: A portfolio balanced between long and short positions could profit in nearly any market.

    That idea may have taken a while to seep into the mainstream, but as it has over the past decade, the hedge fund industry has exploded, rocketing from $310 billion in assets under management in 2002 to more than $2 trillion today. Institutional investors and high net-worth individuals flocked to these largely unregulated, nonpublic funds in no small part because they offered access to assets and trading strategies that are all but impossible to replicate.

    But new research from Nicolas Bollen, the E. Bronson Ingram Professor of Finance, says those hedge funds that are hardest to imitate—something investors look for and for which they often pay a premium—are the ones most prone to failure.

    In addition, Bollen finds that these types of funds contain a significant amount of volatility, indicating that they are vulnerable to the type of risks they are supposed to guard against. “This result suggests the presence of an omitted but potentially catastrophic risk factor in funds for which standard regression analysis fails,” Bollen writes in the study, forthcoming in the Journal of Financial and Quantitative Analysis.

    Those previously undetected risks raise the annual probability of failure for hard-to-replicate funds from 10 percent to 12 percent. The findings have implications for investors who rely on statistical models to screen funds for heightened risk factors as part of their due diligence process.

    Determining Hedge-fund Performance

    The difficulty in assessing hedge fund performance lies in the industry’s opacity. Fund managers report returns publicly at their discretion, leaving wide gaps of data about holdings, accuracy, and even whether a fund is still operating. (In October 2011, hedge funds with more than $1.5 billion in assets under management were required to start disclosing fund details to U.S. regulators, but that information will not be made public.)

    As hedge funds have grown, academic researchers have developed statistical models designed to correlate hedge fund returns with known investment strategies. Using these models, along with data from a broad cross section of funds from 1994-2008, Bollen found that more than one-third of all funds cannot be correlated to known style factors. The phenomenon becomes even more pronounced in funds with short histories.

    Bollen suggests those results indicate that using hedge fund regression models to learn about a fund manager’s trading style and selection of assets may be even weaker than previously thought. Further, he says it may be a Sisyphean task to try to develop a complete set of risk factors, especially those representing catastrophic losses during rare events.

    Where does that leave investors? For the time being, relying more heavily on qualitative judgments about things like a fund manager’s background and strategy mix than the quantitative analyses of econometricians.

    A version of this article originally appeared in VB Intelligence.

  • When Is Cheap Not Cheap?

    Lowest prices of the year! Markdowns! Exclusive Dealer! Top Quality! We’ve all been exposed to them—the marketing strategies promising bargains or high value. Yet as alluring as those pitches can be, consumers draw very different—and sometimes contradictory— conclusions when it comes to sale prices or value. To make it even more challenging, consumers often fill in gaps in their knowledge by drawing inferences about products.

    New research co-authored by Steve Posavac, the E. Bronson Ingram Professor in Marketing, finds that in some consumers’ minds, price denotes quality. Yet for others, low price leads a consumer to believe he or she is getting a good value.

    Steve Posavac
    Steve Posavac

    “Consumers rarely have complete information and use various strategies to fill the gaps in their knowledge as they consider and choose products,” the researchers wrote in an article published in the April 2013 Journal of Consumer Research. “One of these strategies involves using naive theories: informal, common sense explanations that consumers use to make sense of their environment. For example, consumers may believe that popular products are high in quality while also believing that scarce products are high in quality.”

    Posavac and collaborators Hélène Deval, Susan P. Mantel and Frank R. Kardes found that consumers use a series of theories when considering value and price. How they size up a possible purchase depends on what is on their mind when they’re thinking about a given product— something marketers need to take into account when crafting ads, marketing strategies and promotions.

    Price vs. Quality Experiments

    The researchers conducted eight experiments that tested marketing techniques that leaned toward price or quality. In one experiment, consumers were shown an ad for a bottle of wine with either a high or low price. When subtly reminded of quality, consumers evaluated the expensive wine more favorably than the cheap wine. However, when subtly reminded of value, they rated the cheap wine more favorably.

    “In the case of price, most people simultaneously believe that low prices mean good value and that low prices mean low quality. But these two beliefs are not equally present in consumers’ minds all the time,” the authors wrote. In short, people can hold opposing beliefs about the same product.

    When Product Marketing Backfires

    Sales promotions succeed when consumers perceive that they are getting a good deal, but they can also backfire if consumers perceive that lower prices indicate poor quality. And if the company makes assumptions that one naive theory guides consumers, they run the risk that the strategy could actually cause a decrease in sales and perceived value. “For example, a marketer who feels that low prices signal value may go all in on a low-price strategy in an attempt to drive sales but may succeed only at reducing brand value and alienating consumers if a substantial percentage of the firm’s customers believe that low prices are commensurate with low quality,” they wrote.

    Posavac and his fellow researchers cite retailer J.C. Penney as an example. The company moved to a new strategy of abandoning sales events in favor of everyday low pricing. However, J.C. Penney customers had been so conditioned to the naive theory that sales promotions signified good deals that the absence of such events was taken by many longterm customers to mean that there were no longer opportunities to get good deals—and sales dropped.

    “[Companies] design a strategy by assuming that a certain naive theory is going to drive consumer evaluation and choice when, in fact, several naive theories are available to the consumer,” the authors conclude. So what’s the best strategy? The authors suggest that, in practice, marketing communications that set the stage by suggesting a given naive theory—quality, for example—and then make a product appeal in keeping with that theory will have the best results.