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el Cabrera t es over the reins at Thunderbird We don't just work in our community. We work for it . • Intel is proud to collaborate with the Thunderbird Management school on their Global Supply Chain Management and Global Sales and Marketing programs. intet ©2004 Intel Corporation. Intel is a registered trademark of Intel Corporation. Other marks and brands are the property of their respective owners. All rights reserved. On the Cover Thunderbi rd 's new president. Angel Cabrera, stands rock sol id under the vast Arizona sky on his f irst (and seasonally hot) day reporting to work in August. The photograph was shot by Jeff Zaruba at the Boulders Resort in Scottsdale. thunderbird magazine thunderbird : fall : 2004 4 Agenda At the Top Thunderbird again captures top rankings. The Green Zone An alumnus struggles to electrify Iraq. Superhighway IBIC celebrates 10 years of service. Innovation Thunderbird considers an undergraduate program. The Garvin Gift How to thank someone for $60 million. Global Campus News from China, Archamps, Latin America. Dedication to Education Thunderbird's new president, Dr. Angel Cabrera, is a transformative figure in the world of business education. Now he brings those powers to Thunderbird at an important moment of change. The Roy Herberger Legacy During his dynamic IS-year tenure as Thunderbird's eighth president, Dr. Roy A. Herberger Jr. taught our community much about globalization as well as the value of academic and corporate partnerships and risk diversification. 28 Value of an MBA Having the competitive edge among the growing field of MBA grads requires more than what business schools usually teach. And that's where Thunderbird comes in. 32 Into the Deep Blue After a high-flying career as an international marketing manager, alumnus Paul Sutherland became one of the best marine photographers in the world. 38 Doing it Their Way Four Thunderbird women forge entrepreneurial success out of personal passions. 49 Chapter News Swedish smorgasbord Thunderbird's Swedish chapter joins forces with other MBA alumni groups for networking events and seminars. Hong Kong sponsors student With help from Merle A. Hinrichs, the chapter has collected enough money to sponsor a local student at Thunderbird. 52 Classnotes Distaff T-birds meet in Germany Co-chaired by two Thunderbird alumnae and attended by 11 others, a women's business conference is a success. One man's junk is another's wine rack Alumnus Josh Dorfman has found a way to turn junk into upscale goods, and he's making a good business out of it. A passion for German Mimi Yoseloff Kirchgaessner loved German culture more than anything. Now that love will benefit future T-birds in her memory. 64 Forum Change is Our Only Constant Thunderbird's new V.P. and Chief Marketing Officer, Ken Lambert, delves into the gestalt of change and transformation at Thunderbird. 1 letters Thanks, work, and I think display. I understand stature raised, the Sam that Thunderbird, your being very good things about The Garvin School grateful for the our community Garvin of International generosity of the preserved and Management will Garvins, but please strengthened, and r ELIEVE the new take its rightful consider naming the Thunderbird now school name is place right alongside Glendale campus af- reaches out to and very appropriate. Tuck, Goizueta, ter the Garvins and is recognized by a Many great business Fuqua, Kellogg and not the school itself. much broader TRULY GLOBAL schools have names other top "named" CHERYL BLY- public. Bravo! associated with their B-schools. Thanks, Thunderbird CHESTER '84 SCOTT Magazine founders or donors Garvins! SINGLETON '90 Volume S7, No. I, Fall 2004 (e.g. Wharton/Penn, DEVIN WRIGHT '95 Anderson/UCLA, Praise By guiding our Editor D.J. Burrough Marshall/USC). I'm That Sam took a for Roy school through the Art Director even more impressed concept developed challenges posed by Pat Kenny that Sam Garvin is during his studies at Herberger all the events around Photo Editor Kristen Jarchow not a remote histori- Thunderbird and 9-n, you have solidi- Production Manager cal figure, but a rela- turned it into such a ITWAS a ple«u," fied T-bird's status Kathleen Jones tively recent alum- successful organiza- to meet with you as an elite graduate Web Designer nus. His gift is a tion-all the while on occasion dur- business school. Adam Kline Web Production turning point in the maintaining consid- ing my time at Thank you for being Belinda Gleason history of the school. erable involvement Thunderbird; you so approachable. Congratulations to with the School-is were always warm, My Thunderbird Publisher & VP, Marketing Ken Lambert the Garvins for remarkable. We are receptive and sur- experience is one VP, Institutional taking us into the on campus for but a prisingly interested I'll always cherish. Advancement and Director of 21St century! short time, however in our discussions. BRANDON Development Richard Tollefson JIM BUKOWSKI '78 we are T-birds for- You always have SCHNEIDER '01 Advertising Director ever. Anyone who carried the School's Geoffrey P. Gougion I am proud and doesn't honor and torch with grace, In the couple of Advertising Sales extremely thankful invest in his heritage and we are indebted years I was at Thun- Alvaro Cadena Ryan T. Wilson to see that a fellow denies a big part of to you and your ex- derbird, I interacted Advertising Assistant T-bird donated the who he really is. haustive efforts to with you many Kathleen Chance largest gift of its HAZEM GAMAL '98 take this school to times. Some for a Editorial Director kind in U.S. history the respected level quick hello and oth- Roger Toll to our school. I met we now enjoy. ers for an in-depth Design Consultant Sam at the inaugura- But why AARON R. conversation as we Roger Black tion of the new STEWART '94 solved all of the All editorial, sales and Thunderbird Europe change world's problems. production correspondence should be addressed to: Center last Fall. its name? Under your As busy as you were, Thunderbird Magazine. 15249 I would not be sur- watch, Thunderbird you always took the N. S9th Avenue, Glendale, AZ, 85306-6000. Editorial prised at all if this Five~me became physically time to say hello, ask submissions and letters to the gift leads to even changes in less less a dusty, vacant how classes were go- editor can also be emailed to: firstname.lastname@example.com. larger contributions than 60 years is lot and more the ing, and how life, in Advertising inquires should he over the years to uncalled for. We inviting and vibrant general, was. I was addressed to: Kathleen Chance firstname.lastname@example.com. come. teach branding in oasis of learning impressed by your Changes of address and JENS STEIN- the schooL The ad- and understanding honesty, candor, other subscription inquires can be em ailed [0: HAEUSER '03 ministration needs it has always been and approachability. email@example.com. to take that class. for us spiritually. I was impressed by Thunderbird Magazine is a I am proud of the VIPON KUMAR '99 Innprovennentsin you, as an individ- publication of the Marketing name change and the infrastructure ual, regarless of your and Communication Department of Thunderbird, the generosity of an You have deval~ have been dramatic position. I thank you The Garvin School of outstanding T-bird ued the master's and benefit current for that, and I thank I nternational Management. alum. It just demon- degree diploma that students. Our you for representing strates the strength I have until now reputation has been us as a school. of our alumni net- been very proud to enhanced and our JEFF GORMAN '03 2 fall 2004 from the president T-bird network larger by one Nurturing the wide-reaching network of alumni is one of incoming President Angel Cabrera's most important tasks. EVER SINCE it was announced that I was appointed the new president of Thunderbird, I have been running into alumni-and people who know alumni-pretty much everywhere I go. President Herberger had warned me this would happen, yet I've been surprised by how often it has occurred. No matter what country, industry or institution it is, the Thunderbird network seems to go farther and deeper than I had anticipated. The Thunderbird alumni I run into have a fond memory of their Thunderbird days, of the eye-opening experience of working and living with students from all over the world and of the intensity of the work and the personal enrichment. The network, as it turns out, is not just large, but very solid as well. Not a bad asset to have considering how vital our alumni are for the future of a school with the mission and vision that is ours. Long before the term "globalization" was even invented, our school was founded with the goal of educating business leaders with a global rnindset. Thunderbird always has operated under the idea that cross-border business is the best vaccine to prevent poverty and war, and that effective international business requires managers who not only have a solid technical training but who can thrive in a diverse world and leverage the differences among cultures to create value, rather than being set back by them. Educating such individuals is not an easy task. It requires bringing together people from different backgrounds and creating an environment that accommodates and even celebrates diversity. It requires that those individuals be strong-minded; they must be open to receiving unfamiliar information from all corners of the world, to listening to differing points of view from around the thunderbird magazine globe, and to learning language and culture as much as business affairs. Mostly, it requires individuals willing to deeply reflect on their own biases, spending hours upon hours in introspection, so they can better understand those around them. Yet going through such an experience is just the beginning. Learning to operate in a complex, interconnected world is a lifelong endeavor. A master's degree from Thunderbird is the best way I know to get the process in motion. Then, being an active member of the alumni network is the best way I know to keep on learning. So, as I take the lead from Dr. Herberger, I'm more and more convinced that helping nurture that network is one of the most important tasks that lies ahead for me. I will be seeing you around the network and look forward to talking with you all! PreSIdent Angel Cabrera sees Thunderbird as a truly diverse community of strong-minded people open to differing visions from around the world. 3 Alumni Weekend A full menu of events THE THUNDERBIRD Glendale campus has changed a bit since the class of 1954 was attending the school, but those alumni will get a chance to judge the changes for themselves during Thunderbird's Alumni Weekend. The two-day event, Nov. 5-6, at the Glendale campus celebrates specifically the reunion years 1954 (50th anniversary), 1979 (:~5th anniversary) and 1994 (10th anniversary), but the weekend is open to all graduates of the school. Alums can expect events that include a meet and greet in the Thunderbird Pub, Asia Night with current students, and a Rugby Tournament that pits today's students against former stars. There's also a picnic with current students and a gala awards dinner and dance. On Friday, a CareerForum will offer high-energy presentations and professional networking. Details and registration are at thun- Asia night derbird.edu/reunion. 4 fall 2004 Far East and close friends I NOCTOBER, hundreds of T-bird alumni will arrive in Shanghai, China, from all corners of the world for the Thunderbird Global Reunion at the Portman RitzCarlton Hotel. A Shanghai street. thunderbird magazine The three-day event, Oct. 15-18, will include a twoday business conference: How to start or expand your business in China. In his first official alumni event, Dr. Angel Cabrera will give the keynote address. The conference features a 20-course Chinese banquet as well as cultural tours of Shanghai, and optional trips to Beijing, Guilin and Xian. The Thunderbird Global Reunion is hosted by Thunderbird Alumni Association, Shanghai Chapter, in cooperation with the Hong Kong and Beijing chapters. The cost is US $500 for both business and social events, or US $300 for just the social. Details and registration can be found at my-tgr.com. Rankings place T-bird at the top once again U.s. NEWS e;- WORLD REPORT magazine and the Financial Times have again placed Thunderbird at or near the top of their annual lists of the best graduate schools. For the ninth consecutive year, Thunderbird was ranked first in the nation for international business graduate schools by u.s. News e;World Report magazine. The listing appeared in the online version of the magazine's April 12 edition. For the second year in a row, the Financial Times ranked Thunderbird's Executive Education in the top 10, placing it at NO.9 on the list of schools with custom programs and No. 18 on the list of open enrollment schools. The results were released May 17. The Financial Times also ranked Thunderbird's Executive Education custom program highly in a number of separate categories. No.2 - Value for Money NO.5 - Overall in the United States NO.9 - Course Design The U.S. News e;- World Report ranking is based on a survey of school deans and program directors, who nominate the top 10 programs for excellence in 12 speciality areas. In the Financial Times ranking, Thunderbird scored far higher than any other school for the percentage of international clients and overseas programs. The custom Executive Education program had 78 percent international clients, the most of any school in the top 50. 5 news & notes The thinking man's reality show Innovation Challenge draws top students for $25,000 In prizes. ON NOVEMber 19, a team of MBA students will be locked away in a room on the Thunderbird campus. During the following 24 hours, those students will argue, cajole, draw Rorschach-like flow charts, eat cold pizza and come up with an innovative idea worth $20,000 to them, and, perhaps, millions of dollars to the sponsor of the event. It's all part of the second annual G lobal Innovation Challenge, which pits teams of MBA students from Wharton, MIT, Carnegie Mellon and Thunderbird, among others, to find the most innovative product, service or strategy. Ten teams of MBA students, each with five members, compete in the finals. "It's a very unique competition," says Joe Miller, Thunderbird's director of Student Services and an advisor to the 6 Global Innovation Challenge. "As opposed to other MBA competitions, where they are asked to analyze a case, this is judged on true innovation. It mixes MBA skills with creativity in a way that you just don't normally see." Miller expects the competition to draw as many as 300 teams, twice the number that competed last year. Invitations have been extended to virtually every top MBA school in the world, Miller said. The winning team receives $20,000, second gets $3,000 and third $2,000. The first round of the competition, to be held online in October, will be judged by more than 150 executives and industry experts, Miller said. The top IO teams from the online competition are invited to Thunderbird for the final round, when they are presented with a new problem and sequestered until they find a solution. The Innovation Challenge is the brainchild of two T-bird alumni, Anil Rathi '02 and Robert Lipton '03. They founded San Francisco- based Idea Crossing, a technology provider of webbased tools that boost creative potential. The two also were instrumental in the creation of the Thunderbird Innovator's Circle, a campus club known as THINC, which conducts regular corporate brainstorming sessions. Last year's winners were from Brigham Young University in Utah and the final-round sponsor was United Parcel Service. Just what that winning innovative idea was is not something the organizers can talk about. All the competitors and judges sign a non-disclosure to protect the idea for the sponsoring company. "The great thing is that they are actual problems companies are dealing with, not just something the sponsors dreamed up for students to work on," Miller says. For more information, go to innovation challenge.net. Consul Max Haechler Yodel at the moon SWITZERLAND is the host country for this year's annual Ambassador's Ball, to be held at 6:30 p.m. on Nov. 20 at the Scottsdale Hyatt Regency Resort at Gainey Ranch. The theme of the black-tie event is "Alpine Splendor" and features Swiss culinary delights, dancing, music and folklore. Max Haechler, consul of Switzerland, is the host of the evening. The guest of honor will be Switzerland's Ambassador to the United States, Christian Blickenstorfer. The event will mark the 22nd year that the Consular Corps of Arizona has held the event to benefit an annual scholarship to deserving Thunderbird students. fall 2004 Living in the Green Zone Thunderbird alumnus puts in the hours to get electricity working for Iraqis. WHENsovereigntyof their country was handed back to the people of Iraq June 28, Steven Madrid '01 was there to see it happen. Madrid was in Baghdad's Green Zone for much of 2004, serving as a contractor to the Department of Defense (DOD). He was working with the Coalition Provisional Authority, which had control over the country until the June handover. Madrid volunteered to be part of a "skeleton" team that stayed on for a few months after the handover to help make for a smoother transition. As of press time at the end of August, Madrid was still in Iraq. "Living and working in this environment makes the hours and days morph together," he says. "We all have a hard time remembering what day it is." Time seems to be irrelevant, he says, because they thunderbird magazine are putting in so many hours. "The impact of what we are striving to achieve makes this job a joy to work. It really is the ulti-mate rush." Madrid had responsibility for achieving 6,000 megawatts of electri-cal output at Iraqi power plants by the start of summer. He was also responsible for managing and creating a database that outlined what operating units were on the grid and their schedule of mainte-nance. His written reports went directly to the most senior people, including Paul Bremer, the for-mer administrator of the Coalition Pro-visional Authority. Beyond the much publicized security concerns, life in the Green Zone was a continual challenge, he said. It took some doing, but he se-cured a trailer (the size of his Thunder-bird dorm room) with just one other roommate. "I finally made it out of a tent, where I shared bunk space with 39 men, mostly private secu-rity, military and some DOD," Madrid says. The most tiring part of life in the Green Zone for Madrid wasn't the daily shellings or the threat of roadside bombs. "The only news & notes thing that bothered me was the tremen-dous amount of dust," he says. Madrid put in 15-hour workdays but found time to host a "social" around a pool at one of Saddam's palaces for a dozen or so other Thunderbirds who also were work-ing in the capital city, along with some friends he had met along the way. "I have met lots of Iraqis who are so grateful for what we are doing," he says. "I'm not certain how things get re-ported, but I'm grateful I get to see it firsthand. I look forward to sharing it with many people once I return." "Living and working in this environment makes the hours and days mor'p'h together,' he says. "We all have a hard time rememberingwhat day it is." 7 news & notes Speeding reality. This year, it down the celebrates a decade of success as a lead~ su~er- ing center of infor~ highway mation, linking Thunderbird stu~ IBIC fetes dents and alumni across the world to a its tenth library of global anniversary business resources. as leading "Over time, the research IBIC has proven to center be both a functional and appealing facili~ W HEN THE ty," says Carol Ham~ Merle A. mond, associate vice Hinrichs president for infor~ International Busi~ mation services and square~foot founda~ ness Information IBIC director. "You tion cemented Centre (IBIC) rarely get both in a IBIC's state~of~ opened June 13, 1994, beautiful building." the~art future. the intent was to While the IBIC's "The IBIC was built create a central hub semi~circular archi~ when technology for for research on cam~ tecture takes advan~ libraries was chang~ pus that, by design, tage of natural light ing toward electron~ would adapt to ad~ and the moveable ic resources," Ham~ vancesininforma~ bookshelves con~ mond explains. tion technology. serve space, the fiber "The goal has been IBIC's mission has optic cable laid to buy less paper and become a virtual under the 31,000~ more databases." One of Dr. Roy Herberger's most notable achievements as president of Thunderbird is the state-of-the-art International Business Information Centre. 8 In fact, the IBIC has responded quickly to explosive changes in informa~ tion technology dur~ ing the past IO years. Thunderbird stu~ dents in every cor~ ner of the world can now access IBIC online resources that include 50 databases with links to thou~ sands of internation~ al business journals, periodicals, academ~ ic abstracts, market analyses, invest~ ment firm reports and corporate pro~ files. Students also can search IBIC's online "card" catalog and request paper~ less reference assis~ tance from remote locations. IBIC's electronic connections make it a world~class gradu~ ate business educa~ tion library, but onsite features also give it the informa~ tion edge: 40 com~ puter workstations, 200+ laptop data ports, four group study rooms and an extensive video and DVD collection covering business, culture and travel subjects in multiple languages. In addi~ tion, its onsite re~ source collection boasts 70,000 books, 1,200 journals, 80 in~ ternational newspa~ pers and maps from every continent. "The IBIC has positioned Thun~ derbird to make a li~ brary available to the world," Hammond says. "It's truly an international cam~ pus. We don't see ourselves as a facili~ ty for two campuses. Whether you're in a dorm, an apartment or living in France, we have resources for students located across the globe." What does the fu~ ture hold for IBIC? "More of the same," Hammond says. "We'll continue to look at additional technology products thatmakeinforma~ tion access easier." -Sally Clasen fall 2004 news & notes School too reliant on the considers full-time program revenues," he says. under- There appears to graduate be a "perfect storm" of demographics studies gathering that sig-nals tremendous D URINGmU,h growth in business of last year, education at the un- Thunderbird dergraduate level. closely studied the A population bubble concept of hosting is nearing college an undergraduate age, undergraduate program, but now enrollment is in-school officials say creasing and more there are no plans students want to be on moving forward business majors. A with the idea. 26 percent increase Summer a group with faculty ty of the South. "It continues to be in undergraduate en- fellows members and ad- Except for Kusari, a topic of conversa- rollments is project- ministrators, includ- who graduated, all tion," says Richard ed between now and test drive ing a lunch with the fellows were Zbylut, vice presi- 2012, along with a 27 campus then-President between their junior dent of business de- percent increase in Herberger. and senior years. velopment and chief business majors. F ORTHES'" "This was one of Thunderbird information officer "What that means time in many the best six weeks provided housing, for Thunderbird. is that more kids years, the Glen- I've spent: learning, books and some of "It's under consider- are going to college, dale campus was meeting new people the fellows' expens-ation, but nothing is and more kids are homelastsunnnrrer and making friends es, including a trip innnrrinent. The new pursuing business to undergraduate that I will have for- with the hiking club president will have majors," he says. students who took ever," says fellow to Sedona. Their to provide direction Meanwhile, budg- part in the first-ever Drenusha Kusari colleges offered a on that." et cuts at most state Thunderbird from Occidental stipend as well. Thunderbird had universities mean Fellows Program. College. "The class- "The fellows an undergraduate fewer seats for the "It is part of es were thought-pro- mixed comfortably program until 1971, growing number of Thunderbird's effort voking and unique. with the summer and the idea to re- college aspirants. to market the School And I had never be- students and bonded vive it surfaced last ''At least on the at colleges and create fore been in a class closely as a group, year after a review surface, it seems to relationships and where Americans Miller says. "Our of the School's pro- be worth exploring," linkages," says Joe were the minority." goal was for them to grams, Zbylut says. Zbylut says. "It may Miller, director of To be considered have the fullest pos- Currently, 75 percent fit who we are." Student Services. for the program, the sible Thunderbird of Thunderbird's Thunderbird During their six- four students went experience during revenue comes from could partner with week stay, the fel- through a competi- their stay with us. the full-time MBA an existing under- lows attended cross- tive process on their I think it happened." program,asegment graduate institution cultural communi- campuses. The other The program will of education not or could initiate its cations courses and a students were continue next sum-expected to grow as own program. "It's career management Kaloyan Kapralov mer with a larger fast as others in the up to the new pres i- seminar. They also and Andy Wood- contingent. Miller is coming decade. "It dent to determine were involved in a ward, both from in contact with a told us we were way the mix," he says. number of research Colorado College, number of colleges projects with faculty and Philip Mize, that would like to members and met as from The Universi- sponsor a fellow. 10 fall 2004 EMBA students get close fo change in China Positive signs discovered in privately run orphanage. T:!~~ST day for a group of T-bird Executive MBA students on a trip to China in March was spent at a private orphanage two hours outside of Shanghai. "It was our final trip looking at international business as it is applied in China," says Darin Long '01, an EMBA student who graduated in April. "We wanted to see what the country is going through as it emerges as an eco- Uncovering excellence T-BIRD students took over the campus last spring, not with a sit-in but with clipboards and computers. Working with faculty, 35 students surveyed more than 100 peers on what they found excellent with the School. "Students decided to thunderbird magazine nomic powerhouse." Long, who lived in China for four years, said that in some textbooks the country's economic system does not present itself well, but what they saw is working. "A market economy get involved because they want to be part of positive change," says James Brandon Keefe '04, who led the effort. "They want to see their beloved institution succeed. This was a way to channel that passion." Students found excellence in the personal touch and patience showed by the staff of Student under the guidance of a socialist regime can feel like a thriving economy, and in fact it is." The group, which included students and spouses, split its 10 days in China equally between Services and in the personalized consulting of the Career Management Center. An excellent faculty, they found, is challenging, engaging, organized, accessible outside of class and relates to the real world. The results serve as benchmarks, Keefe says, so that Thunderbird can continue to improve. news & notes Beijing and Shanghai listening to lectures from some of China's renowned businessmen and leaders during the day and taking in the culture at night. The one-day service project at a private orphanage was arranged by Hands On Shanghai (handsonshanghai. com), a nonprofit organization established by Richard Brubaker '01 that finds and connects volunteers with projects. The privately run orphanage is a sign that China has turned an economic corner, Long says. Until recently, an orphanage that was not state-run would never have existed. "H umanitarian efforts follow a healthy commerce. People have a little more money, and they become more concerned about those less fortunate." The orphanage is home to more than 20 children, both handicapped and fully able. During their time together, the EMBA students read to them, played games, sang songs and fed them lunch. The group brought badly needed supplies with them, including antibiotics, cold and asthma medicine and gloves. The group made a "run on antibiotics" at two Shanghai pharmacies in order to gather as much as they could for the orphanage, Long says. "Everyone was amazed by the maintenance and upkeep of the children. It was the polar opposite of what many of my classmates expected. The kids were well-fed, happy and engaged with us." Judy Johnson in Admissions was lauded for her skill 11 news & notes Garvins' and even the school gift spurs itself, after a donor. "That is the way a change in lot of universities name of raise money," says Tim Propp, Thun- School derbird's chief ad-ministrative officer. E TIQUETTE "You can go on dictates that some campuses and after receiving find a name on a birthday or wed- every door." ding gift you send a So when Garvin handwritten thank approached the you note. But what school with the $60 is the right response million gift, the ex-when someone gives ecutive committee you $60 million? already knew how to That's the dilem- show their gratitude. rna that faced the "Sam told us that board of trustees putting his name on nearly a year ago the School was not when Sam Garvin '88 important to him, and his wife, Rita, but not to have done expressed interest in so would have been making just such a unusual for such a donation. gift," Propp says. "It Prior to receiving was greater than the the gift, Thunder- entire amount raised bird's executive in the 1990s." committee was ex- In February, the ploring additional full board of trustees ways to raise funds unanimously ap-for the School. One proved the name idea was to offer to change and on name departments, March 9 made the A Thunderbird by any other name 194G-The American Institute for Foreign Trade (AIFT) 19G8-Thunderbird Graduate School of International Management 1973-American Graduate School of International Management(AGSIM) 1997-Thunderbird, The American Graduate School of International Management 2004-Thunderbird, The Garvin School of International Management 12 public announce- already experiencing their gift. They ment. News about a much more excit- tended to think that the name change and ing dialogue with naming a depart-the $60 million gift, alumni, corporations ment or a building thought to be the and friends as a re- would have been largest naming gift sult of this gift." sufficient. ever to a business When news of the Some money has school, were made gift and, especially, already been trans-simultaneously in an the name change ferred to Thunder-effort to garner more reached the alumni, bird, and the rest publicity, Propp says. it prompted more will arrive over the Articles appeared in than a hundred next few years. A newspapers world- letters and e-mails. portion-$20 million wide. At the same The responses were -is for strategic time, Thunderbird "predominantly initiatives and other placed advertise- positive," Propp priorities. The re-ments in such publi- says, but many of maining $40 million cations as The Wall them also expressed will be set aside as a StreetJournal, South disagreement with permanent endow- China Morning Post, the name change. ment. Some of the Japan Times, Herald "They perceived it $20 million will fund Tribune, and Times of as selling the name operations of the India. of the school for a Garvin Center for "We expect that tidy sum," he says. the Cultures and the Garvin gift will "But it would have Languages of Inter-serve as enormous been irresponsible of national Manage-leverage for other us not to raise funds ment, as well as for fund-raising initia- in this way when it's an endowed chair, tives," says Richard a common process the Samuel L. Tollefson, Thunder- in the industry." Garvin Distin-bird's vice president Even the most ar- guished Professor-for institutional ad- dent dissenters ship in Global vancement and di- agreed that the Entrepreneurship, rector of develop- Garvins needed to named in honor of ment. "We are be recognized for Garvin's father. fall 2004 Queen for a night NEITHER clean-shaven legs nor estrogen-rich hormones were requirements for contestants in the Miss MBA Pageant, the highlight of the Americas and Europe Cultural Night heldJune 6 at the Glendale campus. The evening included food and drinks from countries of the two regions, a slide show, music and dancing. In keeping with its rich culinary traditions, North America was represented by Kentucky Fried Chicken and Krispy Kreme doughnuts. .. ' . ". avigatel'il'ternallonahcom ..... I • thunderbird magazine news & notes Following the beauty parade, the "talent" portion, and questions and answers, judges pared the contest down to a runoff between Miss Communications and Miss Modern Language. Crowd response broke the tie in favor of Miss Communications, who promised to use "her" title to help bring about international peace and harmony. Navigate Opens The Door To Global Markets ... From The Inside • Thunderbird alumni and faculty working together to provide global business solutions for corporate clients. • A team of 150+ consultants in 50+ countries speaking 30+ languages. • Access to Intelligence, Insights and Insiders in foreign markets. • Your source for Global Research, Analysis, Strategy and Development. • T-birds serving T-birds around the world. Navigate International is a Global NAVIGATE INTERNATIONAL Consultancy providing premium ~ ______ _ international business services, while ~~~ offering employment and consulting , opportunities to Thunderbird alumni, faculty and students . 13 news & notes Master's Executive Education certificate for Thunderbird. The 2417 online pro~ram availability of the aval able programs will allow students all over the online world to utilize the interactive courses T HUNDERBIRD anytime, anywhere, is offering two with no campus at-online Master tendance ever re- Certificates, the re- quired, Couturier sult of an agreement says. with University "Our state-of-the- Alliance Online, a art online technolo-division of Bisk Ed- gy and distance ucation, the nation's learning expertise, top provider of on- combined with line degrees. The Thunderbird's illus- AboutU. I P, ... Room ContactU. I C8rM" I Thunderbird has gO'le online with Bisk Education. certificates will include a Master's Certificate in Global Marketing and a Master's Certificate in International Management. "Our partnership with the University Alliance allows us to advance our mission of being the leading provider in global executive education, and a key contributor to the advancement of the careers of working professionals," says Jerome Couturier, senior vice president of 14 trious reputation as the world's leading source of international management education, allows business professionals the chance to gain vital marketing business techniques while continuing to work in their industries," says Nathan M. Bisk, chairman of Bisk Education. Enrollment for the online programs is now open, and applications currently are being accepted for the January 2005 session. Student crospects °Neta tas e of campus T EThUnde<- bird Hospitali-tyWeekend has been such a success that the fledgling program has been expanded to two weekends during the Fall. Prospective stu-dents have been in-vited to spend two days on the Glen-dale campus-on Oct. 22 and 23 or Nov. 12 and 13-to get a better sense of Thunderbird, says Joe Miller, director of Student Services. Between 60 and 80 prospective students Africa Oceania Middle East are expected on each weekend. "There is some-thing special about the campus, a magic that you can only really understand if you're here," he says. "All they have to do is get to campus and we take care of everything else." Thunderbird hosts the prospects, along with any fam-ily members, at the on-campus Execu-tive Inn and treats them to all meals. During their time on campus, prospec-tive students sit in on a panel discus-sion by the Interna-tional Studies facul-ty and a case presen-tation by a faculty member. They also learn about Thun-derbird's interna-tional campuses and global internships. On Saturday night, prospective students are invited to enjoy Regional Night, a celebration of differ-ent cultures with unique food, drinks, music and dancing. A high percentage of the prospective students who have attended Hospitality Weekend in the past have gone on to join the School, Miller says. The program was launched with a group of 50 prospec-tive students in October 2003. "The feedback we get is terrific," he says. "They really appreciate the open-ness, are impressed by the faculty and bond quickly with current students." Totals don't equal 100 percent due to rounding. fall 2004 Future knee surgery patients gather for rugby tourney Eighth Annual Truly Global Thunderbird Tournament attracts MBA teams from allover the globe. BRAGGING rights as the best MBA rugby team in the world will be determined this November at Thunderbird's Glendale campus at the Truly Global 8th Annual Thunderbird Rugby Tournament. Dozens of teams from around the globe will descend on the campus $500,000 Gift goes o School F ORMER Thun-derbird Presi-dent Roy Herberger was toasted by more than 600 admirers in May, and they left behind $500,000 for the School. The retirement dinner for Herberger thunderbird magazine Nov. 5-7 to vie for the Championship Cup. "The tournament is truly global because teams come from all parts of the world and on each team there are many nationalities," says tournament committee member and T-bird player Nikola Tchouparov '05. "We expect a stellar field of teams." Invitations have been extended to more than 50 MBA programs, nearly twice as many as last year. MBA teams from programs in Europe, Asia, Africa, Australia, Mexico, Canada, Ireland and Argentina are expected to enter at least one team. An additional day has been added to the event to accommodate the large field. A welcome reception will be held at was both a tribute event and fundrais-er. Gary and Jeanne Herberger (no relation) and former chairman of the board of trustees Barbara Barrett and Intel CEO Craig Barrett were hosts along with Jean and John Berndt (current chairman of the board of trustees), Rita and Sam Garvin, Renee and news & notes .1 ' f '- ., " " \ ~.~.~ '" . ~ <- ,/. .,;1 ...... 't' ~"1 \• .! \ :. ~ ie • ~ If tile Truly Glul),11 TlIlJlIc/t'IOliti TiIUIIUI))"llt ci()t'~,llt Illfllet ellol/gll ci,]lllagt'. tilere's ,llways tile live LliIff ricillig colltest Oil S,ltulci,ly Illght ,It Mr Lucky's the Thunderbird Pub on Friday for all team members and friends. On Saturday night, each team will select a teammate to be strapped onto a live bull in a bull-riding contest at the nearby country bar, Mr. Lucky's. Thunderbird finished third in last year's competition, behind the MBA programs from the University of Texas Jack Donnelly, Dinky and Dick Snell, and Cynthia and William Turner. Tributes came in from Secretary of State Colin Powell, Justice Sandra Day O'Connor, and Steve Forbes, CEO, Forbes Inc. Funds from the dinner will go to-ward a scholarship in the name of Roy and Pam Herberger. and Harvard. The Truly Global tournament comes on the same weekend as Thunderbird's Alumni Weekend. One of the highlight events of the weekend will be the Fruit Bowl, the annual contest that pits Thunderbird's current rugby squad against one comprised of alumni players. Chuck Hamilton '91, presi-dent of the Thunderbird Alumni Rugby Association, expects a tough match from the current team. "It's something about youth and practices twice a week that does it," he says. "If we can get some of the more recent grads to show up, we'll field a fine team." For more information, go to tbirdrugby.org. 15 global campus Nandani Lynton is leading push into China. T-bird explores ventures in China WITH THE naming of Dr. Nandani Lynton, a renowned Asia expert, as vice president of Executive Education in Beijing, the opening of an office there and hosting of information seminars in the region, Thunderbird has established a beachhead in Greater China. "Our operations are expected to build the Thunderbird brand in China, support the recruitment of top Chinese candidates for our MBA programs, support and coordinate with alumni in the region, assist the CMC with placements and market executive education programs in China," says Lynton. Thunderbird Chi- 16 na also is looking at forming alliances with elite Chinese business schools to cooperate on specific programs, conduct joint research and establish student exchanges. Lynton has appointed a new director, Chen Li, to help in the process. The key to succeeding in China is to form a strong partnership with a local university, says Jerome Couturier, Thunderbird's senior vice president of Executive Education. "We will not partner with just any university. We want the very best." Even though China's economy is rapidly expanding, it is still too soon for Thunderbird to open a campus and offer master's degrees. "We choose to have much more of a step-by-step approach," he says. "The common wisdom is to invest in China for the longer term. If you go too quickly, you can get burned. We have made China a priority but have decided to follow a gradual, step-by-step course." "Information seminars in Shanghai and Beijing have showed us that potential students and the local press were most interested in the stories of successful T-birds," Lynton says. East meets West DR NANDANI LYNTON has been based in China for more than a decade. She is one of the preeminent experts in human resources and globalization in the area. Prior to joining Thunderbird, Lynton was founder and managing director of Lynton John & Associates Ltd. in Beijing, a leading organizational and human resources consulting firm. Lynton has consulted for Fortune 500 multinationals in Europe, the Americas and Asia, assisting them in their globalization efforts. In China, her consulting has focused on helping companies align their systems and culture with business goals, the evaluation and development of managers and the restructuring of enterprises. Lynton has taught at Cornell University and at the Universities of Cologne and Dusseldorf. She was an adjunct professor at the University of North Carolina at Chapel-Hill responsible for the joint University of North Carolina and Peking Union Medical College's five-year multi-phased Quintiles Scholar Program in management training. Lynton holds Master's and PhD. degrees in cultural anthropology and organization behavior from Cornell University. Europe campus gets new corporate clients THUNDERBIRD Europe has spent the past few years preparing for growth. It is now arriving. In addition to a complement of full-time MBA students, the campus is receiving a wave of corporate clients from the Executive Education program. Legrand, a world-wide leader in the manufacturing of consumer electronics, has signed a two-year agreement with Thunderbird. The $3 million contract calls for the School to provide executive development programs. Thunderbird is designing the final module of a manager development program for the European Aeronautic Defense and Space Company (EADS), best known as the manufacturer of Airbus. The three-module program has been held for highpotential managers onsite at EADS plants in Munich and Paris. The program will culminate at the EADS plant in Atlanta. 3i, the British venture capital company, has given Thunderbird Europe the go-ahead to design a healthcare conference in Prague in December. In the past, Thunderbird has held a conference on the oil and gas industries for 3i. Partnering with MIT, Thunderbird Europe is designing a program for Serono, a leading biotech firm, to train 500 managers over the next three years. The week-long modules will be taught in Archamps and on the MIT campus in Boston. "It is a great complement to our portfolio that we have such high-profile European firms that have been coveted by other top-tier schools," says Rory Simpson, VP of Executive Education for Thunderbird Europe. In 2002, the Archamps campus expanded with the opening of a new building that has four auditoriums and 12 breakout rooms, and includes the latest technology in A.Y. equipment. fall 2004 global campus Bienvenidos a Glendale ONE-hundred and twenty Latin Americans arrived on the Thunderbird Glendale campus July 17 for their graduation from the Global MBA for Latin American Managers program. The students, who spent two years in the program, came from nine different campuses in Mexico, including Ciudad Juarez, Chihuahua, Guadalajara, Merida, Mexicali, Mexico City, Monterrey, Qyeretaro and Santa Fe. Some of the students came from Miami and four other Latin American campuses-Santa Cruz de la Sierra, Bolivia; San Salvador; Panama City; and Lima. The program, which began in 1998 when Thunderbird partnered with Tecnol6gico de Monterrey, the leading business graduate school in Mexico. 2004 class is the fifth generation of Global MBAs to come through the The seventh generation of Global MBA students arrived on campus a week later to start the course. Question: Why did Coca-Cola, Intel and U PS ~Iace ads in the new THUNDERBIRD Magazine? Answer: Because they could (at last). For the first time, the world's most trury global magazine is available to tbe world's most trury global advertisers. The new Thunderbird Magazine now reaches more than 4 0 ,000 senior corporate executives, government directors, NGO chiefs , global thougbt leaders, successful entrepreneurs, tbe world's top-tier graduate students and alumni at bome in over 70 countries. With an attractive (PM and stunning new design, content and attitude, TImnderbird Magazine is a must for any media plan that wants to reach a trury global audience. For rate and schedule information, please contact us at email@example.com, or at 602-978-7583. Truly Global thunderbird magazine 17 R. ANGEL CABRERA HAD every' reason to turn his back on eaucation. From the time he could read until he received a master's degree, Cabrera was part of an education system that had no place for a student like him. In elementary school, bored with the glacial pace of die lessons, he needed an outlet for his boundless energy. He became a ~rankster and was constantly in trouble. Jbr the time he reached nigh school, Cabrera was learning more on his own than in the classroom. In European fashion, Cabrera was forced to choose a career track too early and was soon mired in a six-year program that confined him to engineenng courses only. Thunderbird's new President, Dr. Angel Cabrera, has spent his short life preparing for this job. By D.J. Burrough Such institutional rigidity and inattention might have caused Cabrera to shun education forever. Instead, it helped him become who he is: an educator. Cabrera's journey to Thunderbird began in April 2003 when Dr. Roy Herberger announced to the board that he would leave his position as president in a year. By August, the search for his successor was on and the list of candidates had grown to 2,000. It was pared down, then pared down further, until only eight candidates remained. Rounds of interviews winnowed the list down to two. Ultimately, it was Cabrera's academic background, his skills as a communicator, his remarkable achievements at Instituto de Empresa in Madrid, and his proven ability to raise funds that won him the position. "He was seen as someone with a lot of potential," says Tim Propp, Thunderbird's chief administrative officer and a member of the search committee, "a visionary and a transformational leader." Cabrera, who is the first foreign-born president of the School, arrives at a time when Thunderbird is at a crossroads. Competition to attract the best students has never been fiercer, the School has just received a AN GEL CAB R ERA has the potenti al to globalize Thunderbird even further. thunderbird magazine $60-million gift along with a new name, and the skills that the international marketplace is demanding of MBAs are rapidly evolving. Born in Madrid in 1967, Cabrera was the second of four boys. His father and uncle both ran a number of small businesses and restaurants, and his grandfather was a schoolteacher. Cabrera went to school at an especially early age alongside his brother, but he quickly grew frustrated. "I was bored," he says. "I got into trouble a lot. I was always kind of a pain in the butt. I was hungry for more. I needed more input, but school didn't provide that, so I looked for excitement elsewhere. I read a lot and found myself getting involved in other things." Unrelenting curiosity CABRERA FOUND a better opportunity to learn during the summers of his youth, spent with his grandfather in Torno, a small mountain town just outside Madrid. Cabrera and his brothers spent their days hiking, swimming and sitting with his grandfather. "He would teach us things. It was more like learning at our own pace," Cabrera says. "I spent a lot of summers there, and people recognized us as his grandchildren. They would say, 'Your grandfather taught me everything I know.'" In 1985, Cabrera entered the Universidad Politecnica de Madrid, one of the most prestigious schools in Europe, and studied telecommunications engineering. "I was a very good student because I'm good at math and good at science, but it didn't challenge me intellectually," Cabrera says. "I knew halfway through that being an engineer was not what I wanted to do in life." As frustrated as he was with the Spanish system, he remained passionate about learning. He could always be found in the front row of any lecture, closest to the professor. And he graduated a year early. "In class, he was able to construct the right question at the right time; the kind of question that we all had in mind, but we didn't know," says Manuel Rincon, a United Nation's development officer who attended the Universidad Politecnica de Madrid and one of Cabrera's closest friends. "His questions always made us understand the lesson better. They even made the professor understand better what he was trying to explain." Even though the workload for the engineering degree was demanding, Cabrera began sitting in on other classes, including philosophy, anthropology, psychology, sociolo- 19 ONE ERA ENDS. ANOTHER BEGINS Like Roy Herberger when he arrived at Thunderbird in 1989, Cabrera takes over as president at a time of much transformation in the School's history, 20 gy, ancient Greek history and ethics. Though he got no credit, they fed his growing curiosity. "This is not something the Spanish system invites you to do," Cabrera says. Just before graduation, Rincon and Cabrera were enjoying an Italian dinner, fueled with ample wine, when they got the idea to hike across the Sahara Desert. "The problem was that the next morning we still thought it was a great idea," Cabrera says. The two were soon off, with just small backpacks and little else. They hopped a train to the south of Spain, where they caught a ferry that took them to Algeria. From there, the two caught taxis until they ran out of money. Cabrera used his wrist watch as payment to get a truck driver to take them further south to the edge of the Sahara Desert. "For days and weeks we walked over the dunes from one oasis to the next," Rincon recalls. "We saw children carrying firewood on their heads and Bedouin cities coated in mud mortar. To live together with those natives was a great lesson of cultural relativity and respect. We exchanged Beatles songs for their nomadic music." For Cabrera, the trip was transformative. The people who welcomed him into their dusty camps and shared their meager rations were the same ones who were often victims of discrimination in Europe. "We walked through the dunes to oases that weren't otherwise accessible and stayed with local people who didn't speak or understand French," Cabrera says. "Unlike the Algerian immigrants in Europe, we were received with open arms and taken care of everywhere we went. They shared their couscous, their lamb, and their huts. We learned a lot about hospitality, about development, about civilizations. We came back very confused, our old assumptions torn to pieces." Not long after graduation, in 1991, Cabrera won a Fulbright Scholarship to study for his doctorate in psychology at Georgia Tech in Atlanta. Free of the confining Spanish system, Cabrera reveled in learning about psychology. "You learn what moves people, how people think, what motivates them. And it's really learning about yourself," he says. "It takes a lot of soul searching. I felt liberated when I could finally study things I really cared about." Cabrera was never a bookish, overly serious student even at Georgia Tech. He was seen as urbane and funny as well as smart. "One minute he would challenge the teacher with a question the rest of us didn't even understand and the next he would make some comment that had everyoneteachers and students-doubled over laughing," says Elizabeth Cabrera of her husband, whom she met as a fellow graduate student. Passion for teaching T HE WEEK before finals, when everyone was hunkered down in the computer room working on their papers, Cabrera was downloading music from the Internet with a new "gopher" program while he was also studying. "When the music started playing, he would grab me out of my chair, and we would dance the tango while the rest of the students laughed," says Elizabeth, who co-authored more than half the academic papers that Cabrera has published. "Many of our fellow grad students agree that Angel helped make quite a stressful time in our lives a lot of fun." After a year-long stint with Andersen Consulting, where he was one of the youngest managing consultants, and two universities in Spain-where he was founding vice president of research at one and a visiting professor at the other-Cabrera arrived at the Instituto de Empresa (IE) as a professor of organizational behavior and human resource management. A year later, he became director of human resource management. In 2001, at just 33 years old, he became the youngest dean of any major international business school. As he rose through the hierarchy, Cabrera never stopped teaching. "He does everything basically through a Socratic method," says Greg Unruh, an IE professor of business administration who cotaught courses with Cabrera. "There is never anything that resembles a lecture; it's more of a dynamic conversation with students. He can give as good as he gets." In 2002, the students voted him Best Teacher of the Year. fall 2004 As dean, Cabrera instituted sweeping changes at the 50-year-old institution. He recruited more than 30 new faculty members from 16 nations, doubled the number of international students, strengthened the school's ties to Latin America and focused on research to such a point that today it is Spain's most prolific research facility. In 2002, IE was one of the first 10 schools to earn all three major international accreditations. It is recognized by a number of publications, including the Financial Times and The Wall Street Journal, as one of Europe's top five business schools. "He was able to drive dynamic change a lot faster than anybody else had done," Unruh says. "He was very articulate, and his vision of the school was very easy to see and accept. He prefers to move toward consensus, but he's not afraid to tell people the way things should be. He can be very decisive and, if he has to, tough. They chose Angel because they wanted a leader who could overcome the slow pace of change in Europe, but maybe they got a little more than they bargained for." His leadership of I E and his critical views of the education system garnered him increasing public attention. In 2002, the World Economic Forum (WEF) chose him as a Global Leader for Tomorrow; and this year, Business Week named him one of the "Stars of Europe." His leading role with the WEF's Business Pledge Project, which aims to raise business leaders' social responsibility through higher education, set off an international debate about what role business schools should have in the development of their students. "What underlies the oath is the vision of business management as a true profession, like medicine or the law," Cabrera says. "I really can't think of a profession that is more important and that has a greater impact than management and business. We send people to business school and expect them to learn just finance, marketing and strategy. We should also give them understanding about what it is they are doing and that they do have a huge responsibility to society in terms of managing people's financial resources. You're playing with people's savings, people's retirement, their dreams and their aspirations. I mean, this is serious business." Thunderbird is facing a number of important issues, Cabrera says: competition from other business graduate schools with international aspirations, an ever-tightening market for doctoral faculty, and the need to continually refine the Thunderbird experience to keep the School the best it can be. thunderbird magazine "I don't think the answers are going to COMING OF AGE come from some magic solutions I have. It's more a question of team-building, leadership and setting a vision for the School, getting people to be part of that vision and do their share toward achieving that vision," he says. At 38 years old, Cabrera is the youngest president the School has had. He also is the first non-American. Cabrera expects that as president ofThunderbird, his time will be in great demand. But regardless of the added responsibilities, he says, he will find stolen moments to return to his passion. "I don't know how it's going to work out, but one way or another, I'll find a way to do some teaching." A Deontological Oath for MBAs Dr. Angel Cabrera envisions a day when all MBA graduates recite or sign a professional code of ethical behavior. Cabrera co-authored the pledge with IE's faculty and the Global Leaders for Tomorrow, part of the World Economic Forum. As A MANAGER of a corporation, an advisor or an entrepreneur, I pledge to fulfill, to the best of my ability and judgment, the following covenant: I will safeguard the interests of the enterprise's financial claimants and will strive to create endurable shareholder value, I will utilize natural resources in an efficient, sustainable way, thus ensuring the rights of future generations to enjoy a clean and resourceful planet. I will respect the rights and dignity of the individuals working for the enterprise, as well as the people that may be affected by its activities, In meeting my commitments with my clients, suppliers and allies, I will engage in honest and transparent transactions, respecting their rights and standing up to my promises. I will remember that I remain a member of society, and that, as a manager, advisor or entrepreneur, my actions may have great impact on the well-being of others. I will ensure that the operation of the enterprise contributes to the creation of wealth and progress for society at large. I will assume the responsibility for my acts in the execution of my duties and will respond to society for them. If I do not violate this oath, may I enjoy life and art and personal success. May I be respected while I live and remembered with affection thereafter. May I always act so as to preserve the finest traditions of business and may I long experience the joy of helping improve the lives of my fellow human beings. 21 THE ROYA. HERBERGERJR, YEARS 1989-2004 EXPANDING AND IMPROVING Herberger's tenure at Thunderbird was marked by significant growth in nearly every imaginable way, but he'll be remembered most for how he helped to globalize the School. thunderbird magazine Thunderbird's eighth president led the world's most esteemed school of international management through 15 years of growth in a tumultuous world. Roy Herberger's grasp of global business taught our community much about globalization as well as the value of academic and corporate partnerships and risk diversification. By Melissa Crytzer Fry HEN ROY A. HERBERGER JR, TOOK over the reins as president of Thunderbird in 1989, he began by painting a detailed picture of what was to become his legacy as president of the institution for 15 years: the globalization of a school dedicated to international business. "When I say globalization," Herberger said in one of his first addresses, "I mean that Thunderbird must take the lead among academic institutions worldwide. For me, that means we must be able to move between continents-administratively, financially and otherwise. It means the possibility of mergers, acquisitions or perhaps moving to different shores." Indeed, 15 years later, that once blank canvas on which he 23 sketched out Thunderbird's future has now become a realistic representation of the School as it is: a Thunderbird with multishore campuses, culturally diverse faculty and academic and corporate partnerships across the globe. That Herberger's vision had prophetic gualities is no surprise to those who know him in business and academic circles. Only a year after taking office, Herberger launched his strategy with a groundbreaking ceremony for the International Studies Building, a harbinger of numerous facilities improvements to come. "It is not surprising at all that Roy accomplished his goals," says Lattie F. Coor, chairman and CEO of the Center for the Future of HERBERGER fostered Executive Education: attracted more foreign stUdents: made the School the top international MBA program in the world: bui lt new faci lities equipped for the digital age: and brought to campus such luminaries as Margaret Thatcher. 24 Arizona and president emeritus at Arizona State University. "The attribute of a great leader is clarity of vision and a commitment to carrying out those goals." Warren Bennis, the distinguished professor of business administration at the University of Southern California, concurs: "Roy is an incubator, instigator and initiator of new ideas." "Roy has consistently demonstrated a clear understanding of where business education was headed during a period marked by accelerating competition, transforming technologies and changing student perspectives," says John Berndt, Thunderbird's chairman of the board of trustees. "That understanding, coupled with his personal drive and ability to forge consensus, were essential to Thunderbird's growth and success during his tenure." Herberger's great strength was in applying real-world principles of international business to the School's strategic plan. "Roy has always looked at the School as a business," says John O 'Connell, Thunderbird's C.V. Starr Chair of International Risk Management. "While Thunderbird is an academic institution first, it's also a business and needs to convey those principles." In his classes, O'Connell stresses the importance of awareness of risks and opportunities in planning. Herberger has continually demonstrated that awareness, says O'Con-nell. "His leadership over the past 15 years has taught the Thunderbird community much about business, particularly in the area of diversification strategy." For instance, the risk associated with establishing a campus in Archamps, France, was minimized due to Herberger's insight and awareness of the world's business climate and needs. "In 1992, Roy imparted his vision that T-bird needed a European beachhead to penetrate the emerging demand in Europe for graduate business training," says Tom Hobson '79, a member of the Thunderbird Europe Board. Today, the Archamps campus, fall 2004 Thunderbird Europe, welcomes more than 100 full-time students each year as well as a dozen students from the Glendale campus for Winterim experiences and hundreds of European executives for custom programs. Herberger's global diversification strategy also included the establishment of partnership programs and alliances with other academic institutions and organizations. The development of a degree program for Latin American managers in conjunction with Tecnol6gico de Monterrey proved much more valuable than the potential risk it presented when it was conceived in 1997. Today, the Global MBA program serves 320 current students and boasts 572 graduates; it is offered at nearly a dozen campuses in Mexico and at Herberger grew the Global MBA program: expanded the Glendale campus with bui ldings like the IBIC: and attracted greater alumni and corporate donations. among them the $60 million gift from Sam Garvin. sites in Bolivia, EI Salvador, Panama, Peru and Miami. "Faculty member Bert Valencia, in his building up of the Global MBA for Latin American Managers program, paid heavily in trying to convince me and others of the program's potential," says Herberger. "It has proven to be a phenomenally successful distance learning program, established at a time when that type of offering was not looked on well by the industry." By entering into partnerships with the ability to deliver, Herberger reduced the degree of risk by eliminating the need for thunderbird magazine Thunderbird to build new campuses or lease buildings in overseas locations, O'Connell points out. Other cooperative agreements with Aspire Academy in Asia, the CMC Graduate School of Business in Prague, and the Center for Business Development in China and Russia also became successful pieces of Herberger's global partnership and risk diversification strategies. Herberger's desire to involve the international business community in the School's strategy was an important component of his globalization efforts. During his years, Thunderbird established four regional councils within the Thunderbird Alumni Association (T AA). The councils represent Thunderbird's global community, covering the Asia-Pacific, Latin America, North America and Europe-Middle East-Africa regions. Additionally, more than 142 chapters of the T AA have been established around the world. "Roy has been actively engaged with overseas alumni," says Merle Hinrichs '65, a member of the Thunderbird Board of Trustees, which has grown to a global body of 36 business leaders from a wide range of countries during Herberger's tenure. "Roy's skills to gain the collaboration of so many diverse groups were exceptional," he says "Dr. Herberger made sure the T AA was integrated into the strategic planning process "Roy is an incubator, instigator and Initiator of new l"ed as. .. " " ... personal drive and ability to forge con- sensus ... " " ... clarity of vision and commitment to carrying out goals." "Roy has always looked at the School as a business." 25 by giving us representation within the Board of Trustees," says Catalina Cisneros '97, for~ mer member of the TAA North America Council. "He managed to change the struc~ ture to include many of the other regional areas around the world." The World Business Advisory Council, a constituent group originally formed to advise the World Business Department on curricu~ lar and faculty development issues, was ex~ panded in size and function during the Her~ berger years. Today, the Thunderbird Global Council (TGC)-its present incarnation-is composed of 85 members from 12 countries in senior~level management positions at enter~ prises located throughout the world. Mem~ bers hold president, CEO and executive vice president titles with companies such as FCB Worldwide in Hong Kong, American Ex~ press in New York City, and Eli Lilly Inter~ national in France. Using its global expertise, the TGC advises the School on issues rang~ ing from admissions and recruitment strate~ gy to marketing and branding initiatives. Understanding the power of collaboration and the insight gained from interaction with the global business community, Herberger also extended his outreach to business leaders worldwide. Today, more than 500 corpora~ tions partner with the School in one or more of Thunderbird's solutions~based programs. Clients such as Intel, Honeywell Aerospace, G E Capital and Microsoft have taken advan~ tage of the academic expertise and real~world experience of faculty and students who com~ plete corporate consulting projects. Hundreds of corporations benefit annually as they hire student interns and graduates through the School's Career Management Center, attend global presentations and par~ ticipate in Thunderbird's Executive Educa~ tion programming, another diversification strategy implemented by Herberger. The global demand for executive~based products and services came even before Her~ berger predicted. "When I began as presi~ dent, globalization was being constrained by political processes," he says, "but you could see it collapsing. I thought it would be anoth~ er three to seven years until globalization had a real impact." Global events in the late '80S and early' 90S proved otherwise: the massacre at Tiananmen Square, Soviet social and eco~ nomic upheaval under glasnost and pere~ stroika, and the fall of the Berlin Wall. "I saw globalization happen at a speed I never dreamed of," he says, "I saw that most corporations were not prepared to deal with the true impact of globalization in their 26 FROM THE TOP Herberger at a student party; on the washboard in Archamps; fishing with friends; speaking on campus, and with past presidents. firms." Thunderbird was perfectly poised to be there at the moment changes in globaliza~ tion took place. "The combinations of those external events, combined with our brand and our reputation, made executive educa~ tion a natural step," says Herberger. "I got lucky in getting Ed Barrett; he was the perfect person to lead the growth of executive pro~ grams at Thunderbird." Under Barrett and Herberger's leadership, Thunderbird's top~ranked Executive Educa~ tion program has grown to a $16 million~plus annual enterprise. More than 6,000 execu~ tives from corporations worldwide partici~ pate each year in various programs aimed at developing the cultural and business skills of executives in on~ and off~shore environ~ ments. Customized courses, open enroll~ ment, online certificate programs and Execu~ tive MBA degree programs offered in the United States, Asia and Eastern Europe are offered to thousands of participants annually. Ironically, global events similar to those that spurred the expansion of Thunderbird's Executive Education program in the late '80S have had an equally profound impact on the School recently. "People are fascinated when I say that September II and the SARS epi~ demic changed this institution forever," says Herberger. Terrorism has caused a downturn in B~school attendance in the United States by foreign students. SARS, with its cata~ strophic impact on the global community, has been a wake~up call also. With half of Thunderbird's student population from out~ side the United States, and more than 40 per~ cent of that group from SARS~plagued Asia, Thunderbird was reminded of the impor~ tance of flexibility and preparedness. "These events have forced us to look at how vulnerable we are as the world's most global management education institution," says Herberger. In response to SARS, Thun~ derbird developed backup programs that could be delivered on a distance learning ba~ sis in affected areas. "We have done what a corporation would do. We are diversifying revenues, shouldering up the products we of~ fer, and diversifying those products. Having more than just a U.S. face is really important and will continue to be." Indeed, developing Thunderbird into a school with more than a U.S. face is one of the goals Herberger set out to accomplish as a new president in 1989. His clearly articulat~ ed vision for the future-the globalization of an international school-may be even more valid 15 years later. It is this vision that will likely propel Thunderbird into the future. fall 2004 A personal letter to the Thunderbird Community T SEEMS JUST LIKE YESTERDAY when my family and I made the trek from Dal1as to Phoenix in the spring of 1989. Time has flown by since we were thrown into the wonderful world of Thunderbird just at the moment globalization was kicking into high gear. Sometimes you get lucky, but our institution was built for the events that would begin to unfold after the opening of the Brandenberg Gate. During the past 15 years, we have had our model of education discovered, researched, attacked, and copied by schools of business al1 over the world. One has to appreciate the founders of Thunderbird, especial1y General Yount, for their vision nearly 60 years ago. They got it right! I marvel that this wonderful blend of culture, languages, and global commerce has become a standard by which international education is measured. Yes, we are NO.1 for a reason. When I look back at Thunderbird over the past years, one of the key reasons we have achieved worldwide recognition is due to our alumni. They have been wonderful friends to the school and to my family as well. Again, there is no point of competitive distinction as significant as the 36,000 alumni and their 128 nations of origin. Our alumni have shared their time, resources, and encouragement with me throughout my tenure at the school, and I will be forever grateful for this relationship. The best evidence of this alumni linkage is the wonderful gift of Sam and Rita Garvin to Thunderbird. This was an act of love and generosity that is unparal1eled in the history of management education. I have been asked many times if I have any regrets in stepping down from the president's post. Yes, I have a few, but most of all I will thunderbird magazine In honor of his service, the Global Business Administration Building has been renamed the Roy and Pam Herberger Business Administration Building. miss the commitment of our faculty, our board of trustees, our Global Council, and the staff of true professionals that support Thunderbird. Angel Cabrera is stepping into a support base that is truly excel1ent. Finally, I am eager for each of you to meet our new president and his wife Beth. They represent an exciting new future for the school as they bring a special international flavor to the campus. Our students already have endorsed the selection of Angel and they are just as excited as I am about the energy that will mark his administration. For Pam and me, it will mean some time off to do a little travel that is not work related! I have the privilege of sitting on several corporate and not-for-profit boards, so I will stay busy just trying to be a good board member. We will remain a part of the Thunderbird family long into the future, and we will occasional1y look back over a past for which we are deeply grateful. - Roy A, H ERBERGER "I marvel that this wonderful blend of culture, language and global commerce has become a standard by which international education is measured. Yes, we are No.1 for a reason." 27 VALUE OF AN An MBA provides a solid foundation, but to successfully navigate global waters you need even more on board. thunderbird magazine By IJ. Schecter Illustration by Robert Case ~JIIIIIIIII HE CONVERGENCE OF TWO RECENT TRENDS has produced a new point of differentiation in today's business landscape. The first trend has to do with globalization-or, more accurately, the escalating need for global talent to manage it. In stretching beyond their own borders, many companies are discovering that the academic stars they've always recruited-usually hard-charging business school graduates-are not necessarily the best equipped to be effective emissaries in new geographies, though they may well possess valuable business knowledge. The second trend is that graduate business schools are churning out a record number of eager MBA holders, approaching 120,000 a year in the United States alone, according to the U.S. Department of Education. Because of the sheer volume of graduates, the status of a conventional MBA degree as differentiator has faded; instead, it has become the common denominator. The result of the intersection of these two trends is that job candidates must distinguish themselves in new ways. The attribute most h unted after today combines global knowledge, awareness, sensitivity and experience in a single package-globility, let us say. ''As companies become more international, global acumen plays an increasingly essential role," says Ken Rich, vice president and global co-head of A.T. Kearney's Executive Search financial services practice. "International skills and training position someone favorably within virtually any organization today, whether that organization has established global reach or just global aspirations." With the ability to have an impact beyond one's country the new discriminator, a pressing question arises: What constitutes true glo- 29 A DESTINY THAT'S NOT SO MANIFEST Companies are beginning to recognize that it takes more than language skills to successfully navigate the often confusing and sometimes dangerous shores of foreign lands and varied cultures. 30 bility, and just how much help does it confer? Conversations with recruiters, global managers and recent Thunderbird graduates reveal the five main ingredients in the recipe that makes up globility and offer insights into its value in today's marketplace. Linguistic versatility T HE BIBLICAL story of the Tower of Babel, the mythic building in which no one person could understand any other, has a broad parallel in the modern corporate world. Companies today seek to branch outward to foreign markets but often struggle to communicate in those new settings. Had just one resident in the Tower been able to bridge the linguistic gulf, he'd have been worth his weight in gold. Such is the case in most organizations today. While English has become the language of business at many multinationals, failing to speak a parent company's mother tongue can trip up progress both for the individual and the organization. "Fluency, or at least competence, in a second language is an automatic differentiator," says Bill Arlington, Human Resources senior vice president for publishing giant Wiley & Sons. "Without it, one is at a clear disadvantage." In a recent survey of Thunderbird graduates from the past three decades, the majority of the respondents-including men and women, rookies and veterans, senior execs and junior managers, those working in the United States and abroad-claimed they derived at least some competitive advantage from their foreign language skills. Languages other than English cited as most helpful included, in order, Spanish, German, French,Japanese, Chinese, Portuguese, Russian and Arabic. Naturally, greater fluency leads to greater competitive advantage. However, sometimes just making the attempt makes the critical difference. As one subject in the Thunderbird study said, "My language skills have never been good enough to negotiate in, but they gave me an understanding of the people I was negotiating with. Even a few words of the language gave people some comfort that I was interested in them and their way of business." Cultural sensitivity ALTHOUGH THE value of linguistic crossover is irrefutable, transnational sensitivity may be an even more important quality in the eyes of many recruiters. It's a good bet today that a company facing a global merger or cross-border transaction will assign a significantly greater role to the person who can predict what nuances might arise and suggest how to manage them. That unique knowledge isn't something gained in the classroom or from a textbook but comes from having experienced them directly while working alongside people from different cultures. It is such a person, not one who has merely studied language tapes, who will be able to point out that blowing one's nose in public is a weighty transgression in Japan. Likewise, good-naturedly mentioning your loyalty to the Yankees during a business lunch in Boston might well deep-six a budding partnership. ''Although we devise an overall global strate-fall 2004 gy from the top," says Catherine Walker, head of e-recruitment for world mobile telecom leader T-Mobile, "it's crucial to find people who understand local issues and sensibilities." Wiley's Arlington concurs. "The single most important skill for succeeding in international business is knowledge beyond your own realm-how people in other parts of the world make a living, which of their customs affect the practice of business. People with this kind of sensitivity are light-years ahead." Thunderbird graduates have discovered the market value of cultural sensitivity for themselves. The survey found that while more than 80 percent of respondents indicated that their foreign language skills benefited their careers, nearly 90 percent said they gained a clear edge from knowledge of other cultures. Immersion over impression EVEN THOUGH specialized international training at a graduate business school provides a sure advantage, another level of distinction exists. Most recruiters agree that people who have further laid the groundwork for success by spending time in the cultures they have studied in classrooms have an advantage over those who have not. Direct, intimate knowledge of foreign cultures will only become an increasing advantage as business becomes even more global. A recent McKinsey & Co. report on global retailing emphasizes the pronounced differences in tastes, habits and spending patterns encountered by foreign market entrants. It suggests not only that companies must develop people whose global knowledge and experience transcend natural barriers, but also that world-class talent in this regard is scarce, making someone who can deliver on the global stage a considerable asset. "You can read about a foreign culture, look at pictures, watch videos or study its history," says Debbie Foster, a vice president with the HJ Heinz Co., whose brands rank first or second in more than 50 international markets. "But nothing compares with experiencing that culture for yourself." Instinct for movement AT ONE TIME, the most valuable commodity in business was the employee who desired to work at one company, in one role and in one office for his entire career. This notion has, like those same employees, been left in the dust. Today, the coveted individual is the one who wants to dive into the thunderbird magazine international fray and can hit foreign ground running and who lives to forge new territory or extend a company's reach. Senior executives haven't time to worry about whether someone has the appetite for change; they have time only to worry about whether he or she can be on the next flight. Thunderbird alumna Shweta Jain '03, a senior internal auditor for pharmaceutical colossus Pfizer, cites her enthusiasm for travel as a key factor in landing her New Yorkbased role. "The company arrived on campus seeking people willing to explore the world. My education along with my desire to travel put me on the global map." The value placed on globility today ripples throughout organizations top to bottom. Jethopping between the boardroom in Dallas and the factory in Jakarta is becoming par for the course no matter what one's title is. Those at junior levels who show nomadic zeal have tremendous additional appeal; they can become the standard-bearing explorers to help chart new waters for their organizations. Says Jane Lewis, HR manager for Procter & Gamble Canada, "Today, employees at every level require the skills to interact across borders, cultures and languages. And the need is only increasing." Friends in far places T HE FINAL piece in the globility puzzle, prized more and more today, is that invaluable group of friends and associates called the personal global network. Justifiably, recruiters seem to stop just short of requesting a glance at a candidate's rolodex. But the more global lines become blurred, the more a worldwide network enhances one's value. With this reality firmly in place, one might argue that the most important advantage gained by international management training is neither fundamental business expertise nor indirect knowledge of foreign cultures. Rather, it is the automatic global network of friends and former classmates working in other countries at parallel stages in their careers. Such a network evolves naturally with the person at its hub, making it continually, and increasingly, advantageous. Former Thunderbird class president Abe Jacob '03 puts it bluntly: "If you want to become a global manager, your curriculum needs to be global and so does your network. You need to be able to pick up the phone, call a friend or fellow alumnus in Brazil or Russia, and get things done." "The single most imJ?ortant skill for succeeding in international business is knowledge beyond your own realm. People with this kind of sensitivity are light years ahead." 31 LIFE IN A VERY BIG FISHBOWL Paul Sutherland has gone to great depths to capture images for such publications as U.S. News & World Report. National Geographic. Newsweek and Sport Diver. thunderbird magazine Paul Sutherland's submersion into underwater photography has led him to the pinnacle of his profession By Jessica McCann T'S NOT FARFETCHED FOR PAUL SUTHERLAND '88 to sit in a skiff in the middle of the Pacific Ocean, his N ikon F 5 in hand, waiting for a humpback whale to swim by ... for eight hours a day ... for weeks straight ... in the rain. Few people understand the motivation of an artist like Sutherland. But to him, it's pretty simple. "After waiting for three weeks, suddenly the clouds break and a beam of sunlight falls on the water," he says. "That calf will pop up next to the boat and look you right in the eye and say, 'Take my picture.' And then it'll spend three hours right in front of you, and you'll take the pictures, images that make a difference." A unique blend of artist, adventurer and businessman, Sutherland has found a way to earn a living doing something few people in 33 PLUNGING INTO THE DEEP END Sutherland quit his "Thunderbird dream job" as an international marketing manager to follow his two passions: photography and the undersea world. 36 the world have the talent and determination to pull off. As an independent photographer, he shoots editorial and stock photography of marine life all over the globe. His work has appeared in countless publications, including Sport Diver, Smithsonian, National Geographic, Scientific American, Newsweek and U. S. News C World Report. "The photographer has to pay for the op-portunity to make the image," he says. "The longer the rain and the colder the weather, the better the opportunity that follows. At sometime in your life, you'll get payback." Sutherland has chalked up more than zsoo dives, which have taken him from one exotic location to another. A fast-talker who spends most of his time on dry land in New Jersey, Sutherland has a passion that can lure even the most ardent landlubber into his underwater world, daydreaming of the open sea and the pursuit of some wonder of the deep. UTHERLAND'S passion for underwater life began in the least likely of places: the Middle East. By the time he could walk-or swim-Sutherland was living in the Middle East, where his father held a variety of posts as a foreign service officer for the United States. In Saudi Arabia, Sutherland's mother would often take her children to a place they called "the creek," an inlet off the Red Sea. He was snorkeling there by the time he was four years old. "One day, there was a huge school of yellow fin tuna attacking an even bigger school of bait fish," he says. "I climbed down the ladder on the dock and stuck my head under the water. I can still see pictures of it in my head. The bait fish are swirling around me on the dock, and three feet away are these 60-pound tuna just screaming around in a circle. It was unbelievable." Though he began diving seriously by the time he was half way through high school, his undergraduate major was in African and Middle Eastern affairs, not marine biology. "I didn't like science," he says. "I liked general knowledge." Sutherland spent four years at the University of Colorado at Boulder, but soon returned to the Mideast to work in the oil fields. "It was a great life," he says, "physically demanding, but the money was very good. You worked long hours, but then you got six months off." After a few years in the field, a back injury forced Sutherland to choose a new career path. His first step was graduate school. After earning his degree from Thunderbird, Sutherland worked eight years for an engineering firm. The company's international expansion gave Sutherland a shot at what he calls the Thunderbird dream job: international marketing manager. He traveled the world negotiating international deals and growing new companies. After closing a $3.5 million deal in Japan in late 1994, Sutherland and his employer differed on compensation. "By 1995, I was shooting underwater every spare minute I had, anyway. So we agreed to part company, and I haven't looked back since." Sutherland launched his professional photography career within months; and the following year a shot of his appeared in Sport Diver magazine, his first appearance in print. Soon, other assignments were coming in. In March, Sutherland won a top award in one of the world's most prestigious photojournalism contests. His image was also selected as one of the finalists for "Picture of the Year" from among z6,000 photographs published by newspapers and magazines in more than Z5 countries. The image, "Empty Oceans," had been published on the cover of U.S. News C World Report inJune Z003. Complementing a report that explored why the world's seafood supply is disappearing, the photo captured a school of southern blue-fin tuna fleeing a fishing net off Australia's coast. Photo editor Lauren Stockbower says she selected the photograph from among hundreds of images sent to her by dozens of photographers, photo agencies and environmental groups, but Paul's shot stood out. fall 2004 "People who have the creative gifts and desire that you need to be a successful independent photographer don't always have the business savvy they need," she says. "But Paul is successful at both. He's creative but he knows about business, and he aggressively pursues the work." Sutherland's eye for the image and his networking prowess recently landed him a grant from the Packard Foundation. It will fund a major story on southern ocean conservation that will take him to the seas around South Africa, Australia, New Zealand,japan, Chile, the Falkland Islands and the United States. "It's very exciting," he says. "Hopefully, we'll capture a species never before photographed in the wild." Getting the final image is only a small fraction of the work that goes into being a professional marine photographer. He's currently coordinating with four governments on permits just to get permission to work in their waters. Toss in the logistics of traveling with a dozen cases of delicate photographic equipment, and the challenges multiply. Increased airport security has made his job that much more difficult. On a return trip from Australia two years ago, he was flagged by security at Los Angeles International Airport. "Here I am, by myself, with II bags full of stuff on two carts moving through LAX," Sutherland says. "They stopped me and we thunderbird magazine had about a half-hour conversation. Then you get the baggage handlers who open your bags and go through your cases. I mean, this is delicate stuff. So you just keep your fingers crossed." Sutherland carries his most critical equipment on the plane with him, which can include as many as six cameras, a handful of lenses and three flashes. On most trips, his briefcase alone contains more than $20,000 worth of equipment. N THE END, Sutherland's success has less to do with his education and business expertise than with his unrelenting passion for undersea photography. On a recent trip to Raine Island, off Australia's eastern coast, the crew on a local boat warned the visitors about all the big tiger sharks attracted by sea turtles. "So people drop off the boats in twos to have a look around," Sutherland says. "I hear them say, 'Be careful, there's a big shark over there.' So I get my cameras, jump in the water alone, and disappear for an hour down at 75 feet. It's just great. You go down there, park yourself, and wait. And the whole world goes away. Everything from the water level up just disappears. It's another world, absolutely another world." For a deeper glimpse into Sutherland's world, go to sutherlandimages.com. WE NEED A BIGGER BOAT Swimming with sharks isn't a metaphor for the business world for Sutherland, it's a day's itinerary. He often works alone, at great depths, with some of the ocean's most menacing creatures. 37 Four Thunderbird women follow their personal passions to entrepreneurial success By Terrie LoCicero thunderbird magazine OST GRADUATES with a newly won MBA in hand follow a well-worn path into corporate life and a secure future. Companies needing new blood dangle attractive offers with secure salaries and corporate stability. But for some MBA graduates, there is another path, one that combines their entrepreneurial spirit with a personal passion. The less-traveled path can be a rocky route with pitfalls and personal hardships. These four indomitable T-bird women are living the entrepreneurial ideals of Thunderbird in new, perhaps unfamiliar territory, all in the hopes of finding their own paths to success and fulfillment. Bringing Spain to Namibia Not long after graduating, Kristin Brierton Dennewill '96 was working in Madrid as an information technology consultant when she met her future husband, Brendon Dennewill, who was living in Cape Town at the time. In :WOO, the two began a long-distance relationship. When he was offered a job in his home country of Namibia 18 months later, she decided to join him, and they were soon married. In Namibia, Dennewill soon met Ana Cuesta, a newly arrived Spaniard who, like Dennewill, wanted to start a business. Not only did they share a knowledge of Spanish, but they both loved traveling. "Although tourism was a growing industry here," Dennewill says, FINDING A NICHE Tour companies in Namibia didn't cater to the Spanish speaking market until Kristin Brierton Dennewill '96, here with husband Brendon, created Oipuka. 39 IN BLACK OR IN PINK, SENATOR? Selling lingerie to Washington D.C.'s elite was the answer for Valerie Lucas '99 when she decided to say "au revoir" to the long hours and constant travel. 40 "there weren't any tour operators focusing on the Spanish~speaking market. So we put to~ gether a business plan." Namibia, which broke away from South Africa in 1990, is a large country with just 1.8 million people. An arid land, much of it is un~ inhabitable, but it offers a variety of climates and a rich animal life. Dennewill and Cuesta traveled throughout the country and took classes on Namibian ecotourism, flora and fauna. In late 2.002., they started Oipuka, which means "animals" in Oshiwambo, a Namibian language. The company (oipuka.com) offers individualized guided and fly~in trips, as well as travel plan~ ning for self-guided tours. Depending upon the region, guests can see lions, leopards, rhinos, elephants, cheetahs, giraffes, buffalos, antelopes, hyenas, hippos, crocodiles and a large population of bird life. Tour guests travel in a VW Caravelle Syncro, raised high to provide better game viewing. "Self-drive" guests use single~ or doublecab 4X4S. Groups stay in bungalows and tent camps. The partners do the marketing and business development and lead tours. In 2.003, their first full year in business, they ran about 2.0 tours, with 90 percent of their clients arriving from Spain. Dennewill credits Thunderbird for opening her to new experiences and to an international life. "The people you meet and the perspectives you hear there all make you see the bigger picture," she says. Hot lingerie in D.C. After a few years as Teradata's worldwide marketing manager, Valerie Lucas '99 had grown weary of the long hours and constant travel. "The first year was great going different places; but after a while, I had no time to do anything or to see anything other than my hotel," she says. She daydreamed of opening her own business. "I wanted to do something gratifying to me for a few years," Lucas says. "In my down time, I thought about what would make me happy, and I wanted it to be true in some way to my French culture ... perhaps even something with a little shock value." For Lucas, the answer was lingerie. In 2.003, she said "au revoir" to her corporate job and threw herself into launching Coup de Foudre, which means love at first sight. She cut personal expenses, pumped up her credit card limits and spent nine months writing a business plan. In March, the first pair of panties went out the door in a discreet white bag. "It was tough to make that jump because I had a very good salary," she says. "But I found that this market was underserved, and I quickly recognized that there was a niche." The 800~square-foot boutique is located along heavily trod Pennsylvania Avenue in the up-and-coming Penn ~arter in Washington D.C. She plans on having e-sales by year-end (coupdefoudrelingerie.com) and is scouting for other locations. Lucas is working longer hours than she ever has, but has no regrets about her decision. "I'm in this for myself, which is very different," she says. "I get up every morning, and I'm very excited about the business. I really enjoy it." Hot dogs in New York In 1997, Tammy McCarley '97 dreamed of working in international sports, with the Olympics as her ultimate goal. Although well-educated-with a B.B.A. in Internation~ al Marketing from the University of Toledo and a Master of International Management from Thunderbird-she soon discovered that landing a job in the field of sports marketing was going to take a gold medal effort. After interviewing with dozens of sports marketing firms in as many cities, McCarley accepted a $300-a-week, three~month position at a sports marketing company in Atlanta. Eventually, she got hired and, during three years there, moved up the ladder. In 1999, she moved to New York City to be at what she calls the center of the sports mar~ keting universe. She accepted a marketing job at the Princeton Review, the college test preparation firm, and began teaching sports marketing courses at New York University. Soon, a new love entered her life: Sienna, a golden retriever/chow mix. McCarley had grown up surrounded by golden retrievers and prize~winning show dogs. When she took trips with Sienna, she discovered how difficult it is to travel with a dog. Few hotels allow canine guests, and a number of beaches and parks ban them entirely. An idea was born. fall 2004 GOING TO THE DOGS TOGETHER She launched Blue Sky Dogs (blueskydogsny. com) in the Fall of 2003. It is the only dog-oriented group travel company on the East Coast and only one of a handful in the United States. The company offers both day and weekend trips that allow dog lovers to travel with their pets. Blue Sky Dogs was created after Tammy McCarley '97 found that pet Sienna wasn't always welcome to JOin her when traveling. If McCarley's venture were to have any success, she knew she had to attract New York business, where consumers respond more to word-of-mouth or media attention than advertising. She attended dog-related events, sent out press releases and used an online public relations resource. A chance meeting with a New York Times reporter at one event resulted in a mention of Blue Sky Dogs in an April 2004 article travel story. More than 100 people responded and 50 became active, as well as very happy and grateful, clients. Before doing an organized tour, McCarley goes on a trial run of each inn with Sienna. "Some places claim to be dog-friendly, but they make the dogs sleep in kennels," she says. If she's satisfied, she books a weekend for the group. "I'm now using the skills I learned at Thunderbird more than ever," she says. A taste of France in L.A. French-born Christine Splichal '83 made a name for herself as a successful Los Angeles restaurateur who, along with her chef husband Joachim, created the celebrated Patina Restaurant in Hollywood. Having been brought up in a patisserie owned by her parents in Biarritz, France, Splichal had restauranting in her blood and was able to handle the business end of Patina with flair. The two formed the Patina Group in the early 1980s. It soon expanded and by the 1990S included a catering division, a mail order catalog, seven restaurants and five museum cafes. In 1999, they sold the company and, while her husband stayed with the business as a consultant, Splichal began contemplating her next challenge. It was then that a good friend, Yugoslavian-born aesthetician Olga Lorencin-Northrup, pitched the idea of opening their own spa. thunderbird magazine In October 2002, the two launched Kinara Skin Care Clinic Spa and Cafe in West Hollywood's design district (kinaraspa.com). Splichal manages the business end and runs its distinctive restaurant while LorencinNorthrup oversees spa services and trains the staff. The spa has become a popular destination for movie celebrities, including clients Halle Berry, Ryan Seacrest, Christina Applegate and Robert Duvall. It is the restaurant that distinguishes Kinara from other Los Angeles spas. Splichal abhors obsessing about carbohydrates and fats. Her philosophy is quintessentially French: one should eat balanced, high-quality food, including the occasional rich desert, as long as it has fresh, organic ingredients. In her view, good food leaves one satisfied and provides the nourishment needed for clear skin and good health. The meals served at Kinara are carefully balanced and contain the maximum amount of nutrients with mostly certified organic ingredients. She also serves wine and champagne, a rarity at spas. "We offer a superior product, the best service and an educational approach on skin care and nutritional regimens," Splichal says. All of this happened because Splichal came to the United States in 1978, just before she planned to attend college. She so enjoyed the culture that she returned in 1982 to attend Thunderbird, choosing it over Berkeley and UCLA on the advice of a business teacher in France. On her way to Thunderbird, she met Joachim in Los Angeles. "Going to Thunderbird really helped," she says. "The culture of business in France is different. Thunderbird gave me a very smooth transition into my work life. I took Spanish at Thunderbird, and I still use it. Thunderbird was a perfect fit for me." Christine Splichal '83 DON 'T WHINE, THERE 'S WINE Customers need not obsess about carbs and fat at Kinara, Christine Splichal's spa and cafe. Quintessentially French, rich deserts, wine and champagne are on the distinctive menu. 41 Banking on change Banks will dramatically expand into foreign countries during the next five years, says Thunderoird professor. DON'T PLAN on the financial services industry in 2010 looking anything like it does now. Instead, expect financial institutions to have branches in remote corners of the globe. Expect less merging of brokerage firms, insurance companies and banks. But don't expect to find too many stand-alone insurance companies. So postulates Dr. Robert Grosse, a professor of international business at Thunderbird, in his newest book, The Future of Global Financial Services: Global Dimensions in Business. The book was released in July by Blackwell Publishing. Even the largest financial service firms in the world-Citibank and Hongkong Bank, with many affiliates around the worldhave a presence in less than half of all countries. Moreover, neither has a leading market share in more than a handful of countries. But that could change in the coming years, Storm. warning Japan's wireless tsunami threat HOW HAS Japan'sNTT DoCoMo become the world's second-largest mobile phone company in just two years? 42 Dr. John Beck, an adjunct professor of global strategy at Thunderbird for 10 years, and Mitchell Wade, a strategist at RAND, answer these questions in "DoCoMo: Japan's Wireless Tsunami" (Amacon Books). The 24o-page book explains how Grosse says, as barriers to foreign competition continue to fall in many countries, and technology allows entry even when a domestic financial market is restricted. The trend among banks, brokerage firms and insurance companies to merge into one firm-like Allianz and Citibank-may not evolve any further, he says. None of the other major institutions has made a serious foray into all three areas, and even Citibank is spinning off some of its insurance business. "Most banks and brokers may choose to remain separate, despite the successful models ofj.P. Morgan Chase and DeutscheBankers Trust," Grosse says. In the United States, there is pressure to maintain a wall between stockbrokers and lenders. Banks may move into the insurance industry, Grosse says. "Most of the products [of the insurance business] are fairly standardized and easily incorporated into a bank's portfolio of financial instruments." this spin-off has become Japan's leading success story. The company has more than 30 million users in Japan alone. DoCoMo, soon to arrive in Europe and North America, is poised to dominate the information age in the same way that giants Toyota and Sony came to dominate their industries. With unprecedented access to company executives at the highest levels, Beck and Wade are able to reveal, in detail, the surprising strategies, people and passions that led to DoCoMo's extraordinary rise. fall 2004 faculty writings The Middle Eastern Context By GILLIAN RICE AND MOHAMMED AL-MoSSAWI HE DECISION faced by multinational corporations to standardize or adapt their advertising strategies for the Middle East has been discussed for three decades. At least one study of multinationals that market consumer goods and services found that most managers tended to view the Middle East as a region with similar culture and beliefs and, therefore, tended to follow a standardized approach with respect to advertising objectives, positioning and the main advertising theme. But the multinationals that fail to go through a learning orientation of specific markets will find their standardized advertising being challenged by local subsidiaries or representatives. A strong familiarity with local culture permits a manager at the headquarters to understand what should be done in the creative aspect of advertising standardization to avoid cultural blunders, particularly with regard to religious values. This article, which focuses on religion, describes the types of advertising messages that might be appropriate for Muslims and provides a managerial decision-making framework that identifies basic Islamic values and their advertising implications. Muslims do not distinguish between the religious and the secular and consider Islam to be a complete way of life. Islamic law (shari'ah), derived from the O!Ir'an and sunnah (the recorded sayings and behavior of Prophet Muhammad), governs business relations between buyers and sellers. Activities are broadly categorized as lawful (halal) thunderbird magazine or prohibited (haram), as decreed by God. Islam has 1.5 billion adherents worldwide, and many have enormous and growing purchasing power. Of the "Ten Big Emerging Markets" targeted by the U.S. Department of Commerce for export promotion efforts, two are Muslim nations (Turkey and Indonesia) and two have substantial Muslim minorities (India and South Africa). The trend in many countries with predominantly Muslim populations is towards stronger religious conservatism and commitment. The O!Ir'an does not prohibit advertising, but several Islamic values have important advertising implications related to cultural dimensions: relationships with people, time orientation, human nature orientation (self-concept) and activity orientation. RELATIONSHIPS WITH PEOPLE Communication Style: In Islam, communications between people should be polite, kind and direct. Advertisers should strive for excellence as an end in itself and be truthful about products and services. Exaggeration is regarded as lying, whether by metaphor or embellishment, and permissible only when the exaggeration is extremely obvious. Religious terms may be used to reassure consumers of the Islamic integrity of products and services. In addition, O!Ir'anic injunctions and words can enhance the mood of the advertising communication to make it more appealing to Muslim consumers: "Bismillah" (in the name of God; a phrase used by Muslims before beginning any action) or ''Allahu akbar" (literally, God is greater). Appreciation of Diversity: A striking feature of Islam is its diversity, especially in the Gulf region that has large expatriate Muslim populations. In advertising, this diversity should be recognized, as in an IKEA advertisement that showed people from varying ethnic groups, some in traditional dress and some in Western dress. Justice and Fairness: Adherence to principles of Islamic justice and fairness results in Gillian Rice Since 1990, Dr. Gillian Rice has been an associate professor of marketing at Thunderbird. She received her Ph.D. from the University of Bradford, England, and in 1997 was a Senior Fulbright Scholar at the UniverSity of Bahrain. Mohammed AI·Mossawi is an assistant professor of marketing at the University of Bahrain. He obtained his Ph.D. from the University of Manchester, England. 43 faculty writings "With respect to message development, executives in companies advertising to Muslim consumers would be wise to gain an understanding of Muslim values." 44 few overtly comparative advertising messages. Contractual obligations, according to Islamic tradition, should be sanctioned by God. Advertisements containing pledges, other contracts with respect to business or financial transactions include the conventional phrase "in the name of God, the Most Beneficent, the Most Merciful." The Role of Women: According to the ~r'an and sunnah, the acquisition of knowledge is a duty for all Muslims. Women should be educated because of their responsibilities in child-rearing and also when it is permissible for them to work outside the home. Bahraini women are part of everyday office life in Manama, the capital of Bahrain and Oman has two female ministers. Yet, many banking advertisements depict the husband as having the moneyit's not a woman's money or her decisiondespite the fact that women have their own bank accounts and sign their own checks. TIME ORIENTATION Balanced Consumption: In instrumental materialism, objects are valued for their ability to aid activity. In terminal materialism, however, the objects are valued as ends in themselves and possession is sought simply for the sake of having the objects. From an Islamic perspective, instrumental materialism is acceptable but terminal materialism is not. Social responsibility is preferred to conspicuous consumption and profit-seeking. Appeals to household economy and the opportunity to save are frequent. Appreciation of Education/Science: Muslims have a strong orientation towards traditions. They are especially proud of their scientific and other intellectual achievements in Medieval times and are strong advocates of education. So advertising that stresses the importance of education is well-received. HUMAN NATURE ORIENTATION Modesty: The ~r' an mentions that women should not "show off their adornment except only that which is apparent." Most scholars interpret the verse to mean that women may show only their hands and face to men outside of their family circle. In Saudi Arabia, advertisers of cosmetics refrain from picturing sensuous females. Cartoon characters to represent women are less likely to violate Islamic codes. Yet care should be exercised. Shortly after MatteI opened a new regional office in Dubai, an imam imposed a "fatwa" on Mattel's Barbie dolls. In Iran, the dolls were denounced for their unwholesome effects on children. Condom ads, whether in the context of family planning or preventive health care, can be sensitive in conservative societies. In Bahrain, regarded as one of the more liberal Gulf states, contraceptive ads are forbidden. Other products may also be restricted because of a desire to maintain modesty. ACTIVITY ORIENTATION Care for the Environment: In Islam, everything a person owns, even a person's body, belongs to God and must be cared for, including the environment. In the ~r'an, wasteful behavior is condemned. Muslim consumers respond to advertising that stresses environmental friendliness, cleanliness and health. Muslims are forbidden from consuming meat which has not been slaughtered in the permissible or "halal" way, as well as intoxicants. Many restaurants and fast food chains in the Middle East advertise that their food is "guaranteed halal." In the Middle East, advertising spending is rising, as are opportunities to place advertisements in growing broadcast and print media. In a global survey of attitudes to advertising in 22 Middle Eastern countries, Egypt was the only one in which respondents were consistently anti-advertising. The response was, in part, due to religious extremism. With respect to message development, executives in companies advertising to Muslim consumers would be wise to gain an understanding of Muslim values. The apparent acceptance of the symbols of Western consumerism, however, does not imply the acceptance of Western values. Harnessing the sometimes conflicting forces of tradition and exploration is therefore a strong challenge for advertisers across the entire Middle East region. Despite some research efforts, relatively little is known about Middle Eastern Muslim consumers' attitudes towards advertising messages. Further examination of the relationship between religious values and the response to advertising could benefit international advertisers targeting the growing Muslim consumer market, not just in the Middle East, but also in Asia and elsewhere. See the full article at Thunderbird.edu/magazine fall 2004 faculty writings Shareholders or Stakeholders? By ANANT K. SUNDARAM AND ANDREW C. INKPEN HOULD managers manage a firm solely on behalf of its shareholders, or should they, in addition, manage on behalf of stakeholders? The answer to this question has long been the source of intense debate. In light of the corporate governance scandals of the early 2.000S, such as Enron and WorldCom, and the resurgent anti-globalization movement, the debate has again assumed center stage. We would argue that the sole purpose of the corporation must be shareholder value maximization, because it is unambiguously the best among all available alternatives. We would also argue that managing on behalf of stakeholders could be detrimental to corporate, and indeed social, value creation. For as long as the U.S. corporation has existed, its role in society, the goals it must pursue and its accountability toward key constituencies such as shareholders, customers, employees, suppliers, creditors and even the communities in which it does business have led to contentious debates. Such debates are much more than academic. Over the past century-and-a-half, they have involved the public, the media, and all three branches of the U.S. government; these debates have shaped the laws and governance practices by which all corporate activity is both enabled and circumscribed. In the field of finance, the goal of all managerial activity is asserted to be that of shareholder value maximization. In fields such as corporate strategy and organizational studies, the views are more nuanced, with one of two overlapping views that often prevail: A manager must juggle multiple goals serving thunderbird magazine different "masters" as the situation demands, and the "stakeholder" view where the shareholder is seen as only one of the many constituencies on whose behalf the manager must make decisions. Similarly, in the fields of law and ethics, the intellectual struggles on shareholders versus stakeholders, contracts versus communities and private versus public conceptions of the corporation continue to this day. Put simply, the "shareholder" view sees the corporation as an efficiency-seeking, shareholder value-maximizing, economic entity; it emphasizes contractual exchanges, with the role of law and governments to promote contractual freedom; it sees as the source of discipline the invisible hand, consisting of a competitive market for products, technologies, capital, managerial talent and corporate control. The "stakeholder" view, on the other hand, views the corporation as a collective of constituencies that comes together to achieve a common purpose that can be situationally different, with the corporation viewed as a political entity where power matters as much as contracts and cash flows; it emphasizes the multi-fiduciary duty of managers to all stakeholders, and the role of trust in embedded, repeated relationships; it sees the role of government as that of ensuring distributive justice and of combating exploitation and alienation of stakeholders by corporations. For long stretches of time, public policy and regulation toward the corporation in the United States was developed and applied in a manner consistent with the points of view that stakeholder proponents might Anant Sundaram Dr. Anant Sundaram (left) has been an associate professor of finance at Thunderbird since 1996. He received his BS and MS from Madras University in 1976; his PGDM (MBA) from Indian Institute of Management in 1978; and his Ph.D. from Yale University in 1987. Andrew C. Inkpen • Dr. Andrew C. Inkpen (right) has been a professor of management at Thunderbird since 1994. He received his Bachelor of Commerce from St. Mary University in 1978; his MBA in 1984 and his PhD. in 1992, both from the University of Western Ontario. 45 faculty writings "The shareholder view sees as the source of discipline the invisible hand, consisting of a competitive market for products, technologies, capital, managerial talent and corporate control." 46 espouse. For instance, in the mid-to-Iate 1800s, corporations could not be set up for private business purposes, and each instance of incorporation required an act of the state legislature to allow its existence. The corporation was simply another instrument for the state to achieve its public policy goals. Despite a famous ruling by the Michigan State Supreme Court in 1919 in favor of shareholder value maximization, (with the winners in the case being the Dodge brothers who, as minority shareholders, had brought suit against Henry Ford over his management style at the Ford Motor Company that seemed to favor employees and customers at the expense of shareholders), general acceptance of the "shareholder" view did not become commonplace until the 1970s. Even then, a majority of the states fought back by adopting so-called "stakeholder statutes" that attempted to insulate incumbent managers from unwanted acquisition bids. Then, during the 1980s, the "stakeholder" theories of management were articulated, which developed the thesis that the interests of key stakeholders must be integrated into the very purpose of the firm and that stakeholder relationships must be managed in a coherent and strategic fashion. There are five arguments-both old and new-which make the case for why shareholder value maximization should be the preferred goal in corporate decision-making. First, it is the only rule that increases the size of the pie for everyone, and it is thereby manifestly pro-stakeholder as well. Why? Shareholders are residual claimants-i.e., they get paid only after all the fixed and contractual claimants are paid. It is only when we manage on behalf of residual claimants that we have the incentive to increase the size of the pie, since fixed claimants (such as creditors and employees) have no incentive to increase value beyond the point where their claims are assured. Second, managing on behalf of stakeholders leads managers to assume too Iowa level of entrepreneurial risk. The basis of this argument is the notion of "total" versus "systematic" risks in the field of finance. Fixed claimants worry about total risks and will, therefore, be too risk-averse; diversified shareholders, on the other hand, care only about a portion of the total risks, known as systematic risks, and are less prone to risk aversion. They are more likely to invest in new growth opportunities, in new markets and products, in cutting-edge technologies and so forth, all of which are imperative if a firm needs to enhance its competitive position in today's globalized economy. It is perhaps no wonder that firms in shareholderoriented economies such as the United States are far more innovative and lead in the industries of the future, compared to firms in stakeholder-oriented economies such as Germany and Japan. Third, having more than one objective function is a recipe for confusion and paralysis in managerial decision-making if those objectives conflict with each other. While it might be easy to say "stakeholder management," the question of which "stakeholder" is not at all clear. For instance, managing on behalf of employees could make non-employee stakeholders worse off; indeed, managing on behalf of particular types of employees (say, unionized) could make other employees (non-unionized) worse off. It is wishful thinking to assume that "stakeholders" represent an undifferentiated, homogeneous group. In real-life, goals among multiple stakeholding groups often are in conflict. Fourth, while it is easy for stakeholders to become shareholders, the reverse is just not possible. For instance, just because we own shares in a firm, we cannot demand to become an employee or supplier. But nothing prevents concerned stakeholders from buying shares and demanding a seat at the shareholder table. In the process, stakeholder governance will necessarily leave out a key constituency while shareholder governance need not. Finally, the law is good at filling judicial voids for stakeholders, since their relation with the firm is usually covered by contract law, tort law and regulation-for instance, employees have contractual provisions in their favor covering antidiscrimination, workplace safety, pensions, health and much more. Courts will step in when contracts are violated. But the shareholder's relation with the firm is in the form of an "implicit contract" and under the prevailing corporate governance norms in the United States (which rely on a principle known as the "business judgment rule"), courts rarely will second-g
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