THE POWER OF DATA REIMAGINED BY HUMANS - SPRING 2022 - Carnegie Mellon University
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Tepper School of Business | Carnegie Mellon University SPRING 2022 T HE P OW E R OF DATA REIMAGINED BY HUMANS
DE A N ’ S LE T TER // IS A BELLE BA JEUX- BESN A INOU TE PPE R DI G E S T NEWS FROM THE TEPPER SCHOOL OF BUSINESS READ MORE @TEPPER D I G I TA L MAGA ZINE Dean’s Letter Tepper School Current and Former Faculty and Ph.D. s we usher in a new year, we find ourselves contending with old challenges that we had hoped to leave behind. COVID-19 and Graduate Win Review of Asset its variants are still surging, supply chains remain disrupted, Pricing Studies Award and the labor shortage continues to impact our daily lives. Indeed, the past two years outlived their trite description of “unprecedented” Former Assistant Professor of Finance, Emilio Osambela, long ago. Still, within our shared struggles, lie many lessons. After all, and Steve Baker (Ph.D. 2013) co-authored their paper, history shows that adversity is often where imagination, innovation and “Preventing Controversial Catastrophes,” with Professor education begin. Burton Hollifield, PNC Professor of Finance; Professor of Financial Economics; Associate Dean, Undergraduate With this idea in mind, I am more optimistic about the future of the Programs. The paper was awarded 2020 Best Paper Award Tepper School than ever before. Every year, our faculty, alumni, and from the Review of Asset Pricing Studies (RAPS). Their students push forward to intelligently respond to the global challenges research covers different constituencies that disagree beyond our campus. Your commitment is impressive. Our momentum regarding the likelihood of economic disasters. is palpable. The Review of Asset Pricing Studies is a prestigious scholarly In this issue of the Tepper magazine, you will read about Tepper’s efforts journal that strives to publish the highest quality research to empower students to meet complex, real-world challenges. Learn how in asset pricing. RAPS evaluates papers based on their our new brand positioning—The Intelligent Future—shines a spotlight substantive original contribution to the understanding of on Tepper’s unique value proposition and unites our community around pricing assets. a common vision. By taking a collaborative, data-informed approach to business, we are well positioned to make sense of a world that is puzzled by an overabundance of data. Technology and information are intrinsic to finding solutions, but the human mind and its sound judgment can never be replaced by mechanics. You will also learn about the progress Tepper is making toward building Professor Weingart Receives “Most Influential a more engaging and agile learning environment. Collectively, we Article” Award in Conflict Management by AOM garner far more intelligence when each of us feels secure and confident to express our varied opinions and different perspectives. With The Academy of Management (AOM) has named the 2015 paper by that knowledge at the forefront of our minds, we will soon release a Laurie Weingart, Richard M. and Margaret S. Cyert Professor of Tepper School of Business | Carnegie Mellon University comprehensive diversity, equity, and inclusion (DE&I) strategic plan, that Organizational Behavior and Theory at Carnegie Mellon University’s Tepper reflects and activates our core values. School of Business, titled “The Directness of Oppositional Intensity of Conflict Expression,” as the recipient of the Conflict Management Division’s Most We may not know what the future holds, but we are determined to Influential Article Award published between 2013 and 2016. educate and motivate tomorrow’s leaders so they are prepared to shape our future in ways we have yet to imagine. We could not accomplish any The Conflict Management Division’s Most Influential Article Award is a of these goals without you and your support. I personally thank you for prestigious designation, only given to one article each year and reflects all that you do for our school. And on behalf of all of us at Tepper, I wish the importance and influence of the published work. A committee of you all a happy, healthy and prosperous 2022. conflict management experts scanned the literature for all CM-related papers published between 2013 and 2016 and judged Weingart’s paper With gratitude, to be the most influential in light of its high quality, important findings, and many citations. cmu.edu/tepper Her new book called “The No Club: Putting a Stop to Women’s Dead-End Isabelle Bajeux-Besnainou Work,” with three coauthors (Linda Babcock, Brenda Peyser, Lise Vesterlund, Dean, Tepper School of Business and Laurie Weingart) will be published by Simon and Schuster on May 3, 2022. 4 5
TE PPE R DI G E S T NEWS FROM THE TEPPER SCHOOL OF BUSINESS B Y S A L LY PA R K E R TRENDING TOPICS Dr. Robert M. Dammon, Professor of Financial Economics, has been awarded the Richard C. Green Professorship in Financial Economics Dr. Robert M. Dammon, Professor of Financial Economics, has been awarded the Richard C. Green Professorship in Financial Economics. Dr. Dammon has been a faculty member at the Tepper School since 1984. In addition to his research accomplishments, he has been an extraordinary educator—including being a three-time winner of the Tepper School’s George Leland Bach Teaching Award. He served as Associate Dean of Education from 2009 to 2011 and the ninth dean of the Tepper School from 2011 to 2020. Dr. Dammon made important contributions in the finance profession prior to moving into the dean’s office. He served as Secretary-Treasurer of the Western Finance Association for several years and an associate editor for several professional journals, including Financial Management (2002–2008), Management Science (1993–1997, 2001–2003), and the Review of Financial Studies (1996–1999). The Richard C. Green Professorship in Financial Economics was established by the Tepper School, in collaboration with alumni, colleagues, and friends of the late Richard C. Green, former Richard M. and Margaret S. Cyert Professor and Senior Associate Dean at the Tepper School. hen the COVID-19 pandemic So says Andrea Shiah (IM 1986, MSIA 1991), In September, over 40 percent of U.S. Class of 1975 Gift Provides Masters Career Center with hit in spring 2020, the global head of talent strategy and transformation workers—twice the 2019 rate—were actively Interview Rooms to Enhance Student Experience job market grew silent. For professionals plotting a move to a new at Eightfold AI, who made a big switch herself last year after 25 years at American Express. searching for a new job or planning to look soon, according to a survey report from the company, the door slammed shut. For some Society for Human Resource Management. The Class of 1975 dedicated interview rooms to the Masters Career Center Tepper MBA students—those still seeking To say employers are having a hard (MCC) to provide students with an upgraded virtual experience. The upgraded opportunities via the typical “just-in-time” time filling open positions would be an Forty-nine percent of U.S. executives said at rooms are being used for virtual interviewing and networking purposes by the recruiting cycle—interviews all but stopped. understatement, she notes. The rate at which the time that in the last six months, turnover students served by the MCC. Since recruiting has been nearly all virtual since jobs are being posted relative to the size of at their organization was higher or much March 2020, the upgraded technology in the rooms permits a state-of-the-art When the market goes cold, people stay the workforce was 6.6 percent in November higher than usual. Workers who were most Tepper School of Business | Carnegie Mellon University experience for students. The trend toward virtual interviews began before where they are. The pandemic has caused 2021 for a total of 10.6 million openings, likely to say they were looking for a new job COVID, and this change is something that the MCC believes is here to stay. massive changes in the job market and according to the Bureau of Labor Statistics. were Millennial, Gen Z, Black, and Hispanic The interview rooms keep students in a competitive position when recruiting the workplace—from how employees are The number of voluntary resignations—a workers; those in professional and business virtually alongside other students in programs that have invested in recruited to how often they have to work in good measure of workers’ willingness or services, technology and administrative upgraded technology. the office—giving Tepper alumni caught in ability to leave jobs—rose to a high of roles; and those in operations, customer the pause of 2020 a chance to reassess what 4.5 million. service, and logistics. The upgraded technology permits a highly improved audio and visual they want in a career and an employer. experience, which results in fewer disturbances that can impact a virtual The term “Great Reassessment” may be In addition to better compensation and interview conducted at a student’s home or in a regular meeting room. Fast forward to summer 2021, when pent-up more on point, Shiah says, “because it tells benefits, the most common reasons for Students also have the ability to virtually whiteboard ideas. demand for new hires hit like a tidal wave, you a little bit more about what’s actually leaving were career advancement, better and job seekers’ phones rang with multiple happening in people’s minds and in the work/life balance (excluding remote work, as Originally, the Class of 1975 wanted their 40th Reunion fundraising to directly recruiting calls and offers. minds of many workers.” the option is available to only 47 percent of support students. Their gift would have funded more in-person student cmu.edu/tepper the workforce, report authors noted), and a events. However, after the pandemic hit and the university went virtual, they became interested in directing their funds to more immediate student needs. “ THERE ARE PLENTIFUL “People are really thinking about their work,” she says. “They’re looking at relocating, career change prompted by “Covid clarity.” “Increased flexibility is now table This pivot led to the creation of the MCC interview rooms. The effort for the JOBS AVAILABLE. IT’S A ” working remotely, having more time to spend stakes. Coming out of COVID, it is just an Class Gift was headed by committee members Marc Allinson, Mac Chiulli, WORKER’S ECONOMY. with their family, more flexibility, and even expectation. But that alone is not enough Marc Onetto, Steve Rothman, Hemant Sanghvi, and John Schiller. more meaningful career paths.” 6 7
BEFORE THE GRE AT RESIGN ATION, THERE WA S THE GRE AT FREE ZE TRENDING TOPICS because everyone is offering it,” says accuracy the likelihood that someone can “And don’t be afraid to dust off and shine up In early 2020, such a demand would have environment, he adds. While MBA recruiting FEATURED IN THIS STORY Julie Murphy (MSIA 1991), Vice President learn other skills. It’s another way to broaden that prebreak experience,” she adds. “It may seemed impossible. Recruiting at the Tepper was trending toward virtual before 2020, it and Chief Human Resources Officer at ANSYS the pool of potential candidates—giving job have been 10, 15 years ago, but there are School and peer institutions was slow. exploded during the shutdown. “The trend Inc. In the software company’s most recent seekers who want to leap to another industry some great skill adjacencies in there relevant Fortunately, most students had secured across all industries is to embrace the exit survey, high-value employees heading more opportunities. to today’s job market needs.” full-time jobs or summer internships before virtual recruiting landscape, and we’re ANDREA SHIAH for the door said what mattered most was the shutdown, but those students who were seeing some benefits.” (IM 1986, MSIA 1991) building a career path and compensation. Many candidates, particularly in high-tech Some companies have set up special still seeking were digging deep, learning Head of Talent Strategy areas, are receiving multiple attractive offers. programs to reach this segment, Shiah says. how to learn in a new way—all while One of the biggest benefits: Recruiters and Transformation, “That goes against conventional wisdom, To help you decide, return to the basics, nervously preparing for what looked like Eightfold “ COMPANIES accustomed to conducting in-person especially for those of us in HR. We always Murphy says: What will you be doing every a bleak job market. interviews at only a handful of schools say it’s never about compensation; it’s day? What kind of work lights you up? UNDERSTAND THE have had more time to meet virtually with always something more. Well, in the software “I’ve been in career services during two JULIE MURPHY industry, where equity ownership tends “Really go back to where your passion is, POWER AND VALUE OF major recessions and as a working adult for candidates at more schools. It has leveled (MSIA 1991) the playing field, with more emphasis on to run pretty deep, wealth creation and what gives you energy, because that’s where THESE RETURN-TO- three. This was really unlike anything I’ve individual talent and less on the school on a Vice President and Chief compensation are key drivers for retention. We’re looking very creatively at how we you’re going to be happiest,” she says. WORK EMPLOYEES. ” experienced in the past,” Rakas says. student’s resume. Human Resources Officer, ANSYS Inc. extend equity. It drives a deep sense “When you’re passionate about something, it The pandemic brought some new twists to But this time the chances of landing a plum Rakas and his peers at other business of ownership.” tends to be an area you’re strong in, and that the networking and interviewing process flexible work arrangement are indeed schools expect big, popular companies to helps you be successful and happy,” that everyone—from workforce returners very good. Despite persistent economic remain largely remote, while companies EMPLOYMENT REPORT Another big reason people are moving to Shiah adds. to careerists—is adjusting to. Some clients disruptions, the demand for workers never that benefit from the in-person marketing CLASS OF 2021 new jobs is to deepen their experience, are networking over Zoom instead of in- really went away and is more robust than opportunity, such as regional and midsize 96% Shiah adds. For people seeking to re-enter the workforce person coffee. They’re making more use of ever, making all sorts of things possible. The firms, will eventually return to recruit Nearly 96 percent of after time away, such as stay-at-home moms, LinkedIn to deepen connections. And they’re Tepper employment report for the Class of on campus. graduates had received offers Her company’s customers use Eightfold’s it’s never been a better time, Murphy notes. perfecting their Zoom presence for remote 2021 shows the highest employment rate AI technology to predict with 95 percent interviews, dressing as if meeting in person since before the Great Recession: Nearly 96 “Companies are using this period in time to “ PEOPLE ARE MAKING CHANGES BECAUSE “Own it, put it out there, don’t hide it. You took time off to manage other important projects in your life,” she points out. “Tell recruiters about the problems you and limiting background distractions as much as possible. If the dog starts barking in the next room, they’re learning to take it in stride. For most of us, it is just part of the percent of graduates had received offers, and 95 percent had accepted. (Four to five percent less still would be considered a successful year, Rakas says.) Average salaries explore ways to cast a broader net and move away from traditional recruiting models,” Rakas says. 95% 95 percent had accepted THEY REALLY WANT “ THIS PERIOD $10,000 Average salaries solved, such as organizing an initiative new work reality. rose $10,000 from before the pandemic, and TO CONTINUE TO that addressed a specific need in your graduates were earning an average $135,000 rose $10,000 from IS GOING TO before the pandemic DEVELOP THEIR SKILLS community. You may not have gotten paid for MBA students in the hunt for a job are across all industries. BE PIVOTAL IN AND THEIR CAREERS. ” them, but you got terrific results. also seeking work-life balance, says $135,000 Stephen Rakas, executive director of the “This is evidence that the job market is WHAT GRADUATE Graduates were earning an average Masters Career Center. He calls it a striking strong, and the need for talent is strong. As BUSINESS SCHOOL new trend: Many students are earnestly we’re working with changing dynamics, it’s $135,000 across RECRUITING IS all industries seeking companies that offer flexible, really encouraging to see how successful our remote, or hybrid options. students are being in the job market,” GOING TO LOOK LIKE. ” Tepper School of Business | Carnegie Mellon University he says. “That mindset, to have to start a career at corporate headquarters, is changing,” It’s also evidence that companies, he says. schools, and students have adjusted to a virtual recruiting Rakas concedes that younger workers, especially those who worked closely in an MBA cohort, often want the camaraderie and networking advantage of an office. “Working together on a project and then hanging out afterwards, or meeting in the hallway—this is how you make friends and network in an MBA program,” Rakas says. cmu.edu/tepper “But I’m really intrigued with the balance between the greater desire for flexibility and work-life balance while still growing a career as a young professional. We’ll see how that unfolds in the next few years.” 8 9
BY SEB MUR R AY A BOLD NEW VISION FOR B U S I N E S S E D U C AT I O N Tepper School of Business | Carnegie Mellon University ever before has the business world seen change at such a rapid pace, thanks to the latest developments in technology, digital tools, and the global disruption caused by COVID-19. This “new normal” is forcing business schools to respond with structural changes that will play an important role in shaping the business leaders of the future—a future that continues to be informed by vast quantities of data and new technology. One that calls for human judgement, intelligence, and leaders who ensure diversity, equity, and inclusion are foundational considerations in everyday decision-making. cmu.edu/tepper As business is redefined, business schools are charged with instilling the next generation of leaders with the right balance of analytical skills to manage copious amounts of data, and human skills—such as intelligence and empathy—to embrace challenges, assess risk, and make more prudent decisions. 10 11
THE INTELLIGENT FUTURE The Intelligent Future is underpinned Carnegie Mellon that are truly ground- Ravi highlights the potential for by the Tepper School’s rich history of breaking—departments that are interdisciplinary perspectives to catalyze delivering interdisciplinary education. advancing fields like machine learning, innovation, noting that the Tepper Founded in 1949 by William Larimer robotics, statistics, decision-making, and School is deeply intertwined with centers Mellon as the Graduate School of the performing arts,” said R. Ravi, the of entrepreneurship, incubators, and Industrial Administration, connections Andris A. Zoltners Professor of Business, accelerators at Carnegie Mellon. across the Carnegie Mellon University Professor of Operations Research and campus are imbued in the culture of Computer Science, and Director of Throughout the Tepper School’s 72-year the institution. Analytics Strategy. “This is a huge draw for history, it has not only kept pace with “ students, professors, and researchers.” business practice, but also charged ahead Partnerships among Tepper School of the curve with a rigorous approach to students, professors, and cross-campus leadership and analytics. researchers in the fields of engineering, robotics, biotechnology, and life sciences In fact, the school pioneered management would be considered unconventional at science, which at the time was a new T HE T EPPER SCHOOL OF BUSINE S S IS MOV ING TOWA R D T HIS MOR E IN T ELLIGEN T F U T UR E THE BUSINESS SCHOOL W I T H A F O R W A R D -T H I N K I N G B R A N D I N G I N I T I AT I V E T H AT S E E K S T O P R O M O T E A N E T H I C A L , other schools, yet they are ubiquitous at approach to decision-making. Powered ITSELF HA S A STRONG D I V E R S E , A N D D I S R U P T I V E N E W M O D E L F O R M A N A G E M E N T E D U C AT I O N . the Tepper School. by analytics, the Tepper School integrated ENTREPRENEURIAL scientific methods into complex problem- Interdisciplinary initiatives that unite S P I R I T, A N D A solving. It combined Carnegie Mellon’s T H E I N I T I AT I V E — C A L L E D T H E I N T E L L I G E N T F U T U R E — U N D E R P I N S C R E AT I V E C O L L A B O R AT I O N , P E R S O N A L L E A D E R S H I P D E V E L O P M E N T, A N D T H E T E P P E R S C H O O L’ S the Carnegie Mellon community in a WILLINGNESS TO strengths in business management, L EG AC Y OF COMBINING SCIEN T IF IC ME T HODS W I T H HUM A N IN T EL L IGENCE. spirit of innovation are advancing our EMBR ACE DISRUPTION computer modeling, organizational understanding of important topics that AND DESIGN BOLD behavior, and economic theory. shape business and society—initiatives SOLUTIONS FOR THE The branding has been a year in The new Intelligent Future branding that cover blockchain, health care, FUTURE OF BUSINESS “In the 1950s the trend was to teach development and is the result of deep heralds big changes to the portfolio of sustainability, and inclusive growth business using war stories which were A N D E D U C AT I O N . engagement with the Tepper School’s degree programs at the Tepper School, and prosperity. converted into case studies,” said Ravi. faculty, staff, students, and alumni. including the MBA curriculum and What started as a new brand positioning methods of delivery. Bajeux joined the Tying these different disciplines together is “Our school took a different approach: It is R. Ravi evolved into a strategic anthem for school during the coronavirus pandemic the David A. Tepper Quadrangle—home of known as the birthplace of management Andris A. Zoltners the school, amplified by Dean and presided over a shift to online the 315,000-square-foot Tepper Business science. And now, the model we created is Professor of Business, Isabelle Bajeux-Besnainou, who joined learning and communication, which she School building—which links students to deployed in curricula all over the world.” Professor of Operations the school in October 2020 from the believes will hold firm in the future of the other six Carnegie Mellon colleges, Research and Computer Desautels Faculty of Management at management education. such as the College of Engineering and the If case studies are like looking in the rear- Science, Director of “ McGill University. School of Computer Science. view mirror, management science is about Analytics Strategy “It’s no longer going to be an all in-person “The business world is changing at an experience; it will be about finding the Tepper School of Business | Carnegie Mellon University It is the physical embodiment of the incredible pace,” she said. right blend between online and in-person Tepper School’s vision for business —a hybrid model,” Bajeux said, noting the education that connects teaching, school has a head start with its Part-Time learning, and innovation. Business AC ADEMIA , BY CONS TRUC TION, IS MORE Online Hybrid MBA, currently ranked the students study side-by-side with O F A S L O W M O V E R B E C A U S E I T I S B U I LT O N top online MBA programs by U.S. News engineers, computer scientists, SHARED GOVERNANCE AND PROCESSES TO and World Report. roboticists, actors, visual artists, M A K E S U R E T H AT W H AT W E ’ R E D O I N G I S and students from other fields. This W E L L T H O U G H T O U T. W E N E E D T O F I N D A Another big change in store is the school’s collaboration promotes knowledge W AY F O R B U S I N E S S S C H O O L S T O B E M O R E increasing emphasis on experiential, or discovery, a diversity of perspectives, RESPONSIVE TO BUSINESS CHANGES. WE practical, learning. and enriches learning through group CAN BE A LOT MORE AGILE. discussion and joint innovation. cmu.edu/tepper “We want to partner more with the corporate world, and for students to solve “One of the most exciting aspects of Isabelle Bajeux-Besnainou current business problems,” the Dean The Intelligent Future is the ability to Dean, Tepper School of Business said. “We will be developing more of more deeply engage with other parts of those experiences.” 12 13
“ A B O L D N E W V I S I O N F O R B U S I N E S S E D U C AT I O N thinking ahead. It enables students to In their paper, the researchers highlighted forecast, predict, and model answers to when the use of an algorithm applied for business problems. recidivism prediction was biased against African Americans, incorrectly suggesting This analytical toolkit has never looked they were at higher risk of reoffending than THE INTELLIGENT more relevant than it does today. white defendants. FUTURE IS NOT Business leaders of the future will need these tools for economic understanding, ABOUT ADOPTING “This example underscores a limitation of optimization, and predictive and O N E I N N O VAT I O N relying solely on data and highlights the prescriptive modeling to respond to A N D S TAY I N G need for a human lens and accountability increasingly uncertain and complex S T A G N A N T; I T ’ S T H E to eliminate already stark inequalities in business challenges. A B I L I T Y T O TA K E I N society,” said Justin Kaufman (MBA 2004), N E W I N F O R M AT I O N , who serves on the Tepper School Thanks to rapid advances in digital A N A LY Z E T H A T D A T A , Alumni Board. technologies, organizations are A N D U N D E R S TA N D capturing, storing, and managing vast H O W T O R A P I D LY “When it comes to technology and data, reams of data from a wide array of A N D C O N T I N U O U S LY a human-led, tech-enabled approach is internal and external sources—now advantageous,” said Kaufman, Pittsburgh A D J U S T CO U R S E T H AT measured in zettabytes. This gives Office Managing Partner, PwC. C O U N T S I N T O D AY ’ S businesses far easier access to a rich I N C R E A S I N G LY set of valuable information about their The Tepper School’s new approach is customers, suppliers, and rivals than D I G I T A L E C O N O M Y. fueled by data, powered by technology, they ever had before. and reimagined by human intelligence. By equipping future leaders with these The challenge facing company abilities, the Tepper School can empower executives is how to turn that data into Cindy Padnos (MSIA 1980) them to not just respond to—but shape— meaningful and actionable insights. Tepper School of Business the rapidly changing business landscape “ This process relies on understanding Business Board of Advisors and lead what will be the intelligent future. and channeling the most valuable information from a sea of data, as well as strong data management and “Business leaders must also have governance to control risk and the skills to assess the quality of the meet regulation. data they receive, and then work with BUSINESS LEADERS people to implement change,” said Cindy Padnos, Founder and Managing WHO ARE BUILDING A Many businesses face a yawning gap C U LT U R E O F B E L O N G I N G Tepper School of Business | Carnegie Mellon University between the demand for the right mix Director of Illuminate Ventures, a of skills to turn data into value, and venture capital firm. “That human AND WHO ARE ALL IN their actual capabilities. The dearth of aspect is equally important—the O N D I V E R S I T Y, E Q U I T Y, talent underscores the role of human judgement and intuition and ability to AND INCLUSION, WILL judgement in the process of converting collaborate and lead people into an I N H E R E N T LY B E B E T T E R data into actionable insights, and then uncertain future.” P O S I T I O N E D T O U S E DATA using the insights to drive I N A W AY T H AT W I L L business results. Padnos highlights the risk of human HELP BUILD TRUST WITH bias being translated into algorithms. T H E I R S TA K E H O L D E R S A N D The Intelligent Future takes a human- A recent study by several academics at DELIVER RESPONSIBLE, centered approach to management Carnegie Mellon found that although S U S TA I N E D O U T CO M E S . education, imbuing business students artificial intelligence and machine cmu.edu/tepper with the ability to analyze data, learning are widely used throughout while also imparting behavioral skills the global economy, algorithmic bias that focus on creativity, emotional can have far-reaching consequences Justin Kaufman (MBA 2004) intelligence, and empathy. It’s a powerful for employment, education, access to Tepper School of Business combination of analytics and leadership. credit, and more. Alumni Board 14 15
GOOD A DV ICE // C Y RUS FREIDHEIM (MSI A 19 6 3) BY TRICIA MILLER KLAPHEKE ADVICE Cyrus Freidheim (MSIA 1963) was in the room when the U.S. government decided to bail out Chrysler in 1979. He was in the room to chart the future of Booz Allen Hamilton and other corporations across the world, as well as cities GOOD like Chicago and organizations like the Brookings Institution, the Thunderbird Graduate School of International Business, and the Chicago Symphony Orchestra. The room was the inner sanctum where key decisions were made by the board, the executive committee, and the CEO’s trusted inner circle. Freidheim recounted lessons from his storied 55- year career as a management consultant, CEO, and board member in his new professional memoir, “Commit & Deliver: On the Frontlines of Management Consulting,” published in October 2021. A DIVERSE CAREER Early in his life, Freidheim realized that he always Tepper School of Business | Carnegie Mellon University wanted to be in on the important decisions. He constructed an imaginary ladder which would get him to that goal: to build the foundation and obtain the experience and skills necessary. In his new book he describes how the process played out for him. Freidheim grew up in Chicago and studied chemical engineering at the University of Notre Dame before serving four years in the U.S. Navy. He needed a broad foundation so he pursued a liberal arts education. At the Naval Language School he became a cmu.edu/tepper Russian interpreter. His formal education culminated with a graduate degree from the Carnegie Institute of Technology’s Graduate School of Industrial Administration (now Carnegie Mellon University’s Tepper School of Business). 16 17
GOOD ADVICE C YRUS FREIDHEIM (MSIA 19 63) Freidheim claims three careers over his Sick, a GSIA grad who became an Chrysler. Freidheim followed, outlining the CEO AND BOARD MEMBER the Chicago Sun-Times and community “Commit & Deliver” and “Notes From lifetime. “The common denominators and important mentor and friend. After three gravity of Chrysler’s condition but offering Freidheim began serving on a number newspapers. The newspaper industry Grampa” were only part of his growing core of my careers have been problem- years at Ford—a masterclass in financial some hope. of not-for-profit and a few corporate was in a tailspin as the internet was career as a writer sharing the wisdom solving and service. By service, I mean planning and analysis—came Booz Allen. boards while still working with Booz Allen. taking over its role as a primary source learned over his long career in business. helping others to bring out the best in “I said there was a solution, but it was These boards gave him an extraordinary of news. This crisis was accompanied by In 2000 he published “The Trillion-Dollar themselves and their organizations,” he MANAGEMENT CONSULTING draconian,” he wrote in the book. “I network of top executives, many of whom the 2008–09 financial meltdown. Because Enterprise: How the Alliance Revolution said recently. “A key to any success that “While I loved my time at Ford, it would explained the recommendations we made became Booz Allen clients. They also of his experience with turnarounds, the Will Transform Global Business,” and next I had was marrying the right partner, take years to get to the inner circle, and to the management team and added that gave him opportunities to give back to his board asked Freidheim to take on the Sun- year he plans to publish his first novel, my wife Mitzi. She made every move an it was far from certain. Consulting and implementation would be difficult, and the community, reflecting his conviction that Times as CEO and publisher. He led the “The Star of Africa: From Dictatorship to exciting new adventure for the family and Booz Allen provided a unique opportunity risk of failure was high.” everyone is obligated to contribute their restructuring and outsourced distribution Democracy.” Like “Commit & Deliver,” the raised three almost perfect children.” to become involved in major corporate skills to improving society. Eventually, he and printing to its arch competitor, the new book will have an important purpose: decisions almost immediately.” In his book Ultimately, Freidheim and Booz Allen served on fifteen corporate boards and Chicago Tribune. Nevertheless, the decline to demonstrate how the human spirit can While he was in the Navy, Freidheim met he describes what a consultant does, worked with Chrysler and CEO Lee Iacocca over twenty not-for-profit boards, five in the industry erased any gains. Like lift a struggling nation. Robert Trueblood, a senior partner of and how they must perform, with case for the next two years to get congressional as chair. many newspaper companies, Sun-Times Touche Ross (a predecessor of Deloitte & examples. He worked with CEOs from approval of a $1.5 billion loan guarantee Media Group declared bankruptcy but sold Touche) and visiting professor at Carnegie day one. and to execute their plan under close Upon retirement from Booz Allen in 2002, its newspapers, so the Sun-Times remains Tech’s GSIA, on the first tee of the Monte scrutiny from the government, the Freidheim was elected CEO of Chiquita a vibrant voice in Chicago. Carlo Country Club. During a round of Booz Allen took Freidheim and his family media, and the public. Chrysler repaid Brands International as it was coming golf and lunch, Trueblood described his from Chicago to São Paulo, Paris, New 100 percent of its guaranteed loans with out of bankruptcy and needed a fresh AUTHOR firm’s move into management consulting York, and back to Chicago. He worked interest seven years ahead of schedule, approach. The transition from consultant As Freidheim approached 80, his and explained what GSIA was doing to with close to 100 CEOs in 20 countries and the government made $300 million to CEO proved easy for Freidheim, though children told him that his nine young prepare the new generation of corporate on a wide range of problems and retired on Chrysler warrants attached to dealing with shareholders presented grandchildren wouldn’t get to know leaders. He described Carnegie Tech as the 35 years later as vice chairman of the the guarantees. interesting challenges. For example, him, so he wrote “Notes From Grampa: tip of the spear in research and teaching firm. He experienced and wrestled with certain shareholders demanded a stock Preparing for Your Tomorrows.” His goal where the business world was going with different cultural and economic systems, “The Chrysler experience in 1979–81 buyback and sold their stock when was to pour everything he could into computers, information technology, and the technology revolution that Trueblood was for me a stellar example of what a Freidheim refused, driving the stock down the minds of the most important clients analytics. To be part of the inner circle, and Carnegie predicted, the globalization management consultant actually does,” from $16 to $8 per share. Freidheim held in his life to give them the benefit of his Freidheim realized he needed to bring of everything, and corporate transitions he wrote. “Business at the top level is as his ground and restructured the company. experience and mistakes. something special. Trueblood was so for both successful and failing companies. compelling, challenging, and satisfying a Chiquita sold off a third of its revenues, compelling that Freidheim turned down His job was to advise companies and their career as there can be.” gave its plantation in Panama to its Freidheim realized a much broader Harvard Business School to go to CEOs on how to improve their businesses. employees with the help of the president audience could benefit from those Carnegie Tech. He loved the auto industry, and many of Panama, cut costs by $100 million, and lessons. “I no longer have clients, but Chrysler was a good example. The of the clients he worked with were car entered two new, fast-growing businesses. I do have an opportunity to adopt secretary of the Treasury had called companies grappling with evolving Debt was cut in half. The stock rose to $30. grandchildren who have no grandfathers AT CARNEGIE, I WAS Freidheim’s boss at Booz Allen Hamilton, technologies and markets. He also found to guide them. Thus, “Commit & Deliver” BLESSED WITH TWO Tepper School of Business | Carnegie Mellon University CEO Jim Farley, to ask him to assess that the auto companies were leaders in A year after retiring again, Freidheim is intended to be a mentor in book MENTORS AND A whether a large cash infusion from the manufacturing, product development, and joined the board of Hollinger International, form,” he explained. government would enable Chrysler financial planning, and provided him with DOZEN OUTSTANDING which was then the holding company for to survive as the car company neared a laboratory of best practices. PROFESSORS . bankruptcy. Farley chose Freidheim to lead the team. In all but a few cases, his clients acted Freidheim recalls, “Hal Leavitt, a on his recommendations, and he had MORE ADVICE from “COMMIT & DELIVER” management psychologist, opened my Four weeks after the Treasury called, the satisfaction of seeing Booz Allen’s mind to management consulting. He Freidheim, Farley, and three other positive impact on many companies thought Booz Allen Hamilton would be a partners met with the secretary, his team, and countries. “Our gospel that ‘good Surround yourself with In life, you are your Do what you love, good fit for me—a sink-or-swim culture and the Chrysler board at the Department management enables prosperity’ was top talent. The team with most important project. love what you do. and a hard analytical edge. Leland Hazard of the Treasury in Washington, D.C. Booz proven almost everywhere we worked,” the best players and coaches cmu.edu/tepper taught me to think about the role of Allen’s plan required deep cuts and he wrote. “While the U.S. certainly did not almost always wins. business in society and planted the seed restructuring at Chrysler and did not have all the secrets to effective corporate Understanding is crucial Treat everyone with that service was crucial to a leader’s have the support of management. The management, U.S. management consulting for a consultant and respect, but choose Sometimes the best deal success.” They also demonstrated the CEO of Salomon Brothers, Chrysler’s firms did spread the gospel and practice of essential to mutual trust your friends and is the one left undone. value of mentors. Freidheim’s first job was investment banker, led by stating that the good management principles throughout with a client. associates carefully. with Ford Motor Company working for Bill government’s money would be wasted on the world.” 18 19
READ MORE @TEPPER enterprising leaders D I G I TA L A L U M N I S TA R T U P S // B E G I N N I N G S A N D B A C K S T O R I E S MAGA ZINE H. JACOB HANCHAR (MBA 2013) JODY MADALA (MBA 2021) CHRIS BELL (MBA 2009) BARATH SHANKAR SUBRAMANIAN (MBA 2011) CEO, DIGITAL DREAM LABS CEO AND CO-FOUNDER, CULTURORA CEO, PERCH PARTNER, ACCEL Jacob Hanchar (MBA 2013) knows that starting a new Jody Madala (MBA 2021) is a recent Tepper School Chris Bell (MBA 2009) and his company, Perch, are devoted Barath Shankar Subramanian (MBA 2011) has faced his business is no easy feat. Overcoming challenges from the graduate who wasted no time in launching her company, to acquiring great brands, improving them, and putting them share of challenges and setbacks during his entrepreneurial pandemic, Hanchar’s company, Digital Dream Labs, has Culturora—right in the middle of a pandemic. But for on the map. Using a self-built technology platform, Bell helps adventures. Inspired by Professor Sridhar Tayur, Subramanian continued to grow. Being an entrepreneur is not for the faint Jody, the timing could not be better. The pandemic has build and scale micro-brands, making them available across took the path less traveled and began to explore non- of heart, and Hanchar attributes his success to the people drastically changed how we work, and employees now face the globe. With the pandemic forcing many brick and mortar traditional career options. Returning to India to join Accel around him. He explained his company’s mission, the challenges previously unimagined. Culturora facilitates work stores to close or limit hours, Perch and Bell were in the was no easy decision but one that has greatly paid off. Barath support he had on his way to launch, and what he hopes connections to help employees fight isolation, burnout, perfect position to provide retail on an online platform. Chris explained the successes he found along the way, how he to achieve next. ― and disengagement. Culturora is invaluable to human recently let us know what it took to get Perch launched, how ended up as a Partner at Accel, and what he hopes to resources personnel who are extremely concerned about he has taken advantage of changing retail trends, and where achieve next. ― Q What is your elevator pitch? high burnout and low retention, and desire to create a he hopes to take Perch next. ― supportive and interpersonal environment for employees Q What is your elevator pitch? My elevator pitch for Digital Dream Labs is ever evolving during remote and hybrid work. ― Q What is your elevator pitch? depending on the market or our circumstances; however, the I’m very excited to partner and work with founders who are key points that have been immutable for several years are: Perch acquires great brands and we make them better. Perch exploring technology ideas from a very early stage and work Q What is your elevator pitch? is building the next-generation consumer products company, with them on building out exciting companies. 1. That we are an “edtechtainment” company that leads with Culturora is a Human Resources tech company. Our building a technology platform that enables us to build and fun and teaches inadvertently. connection engine and user experience help employees scale the micro-brands that consumers love and scale them Q Why CMU? fight isolation and burnout and proactively build a strong across channels and geographies. I visited several campuses before deciding on CMU—the 2. We are poised to be the most influential makers of robot sense of belonging to their company. HR departments Tepper School of Business | Carnegie Mellon University things that stood out to me where the collaborative attitude companions that not only teach coding and robotics but care because the pandemic has shifted work to a remote Q Why CMU? on campus, the compact class size, flexibility offered with teach us more about ourselves and the human condition. and hybrid experience, and talent retention and happy I came to the Tepper sell weekend, and I was so impressed selecting courses and pursuing areas of passion. I felt like employees are critical priorities. Unlike lightweight or static with how smart and down to earth everyone was. There these were very important aspects of decision making. The 3. And, of course what investors want to hear is we expect to tools like Donut and LinkedIn, Culturora connections are was no pretense or ego, just smart people with analytically oriented teaching methodology is also a very lead the way in the market as a billion-dollar company and highly personalized and actionable. interesting backgrounds. powerful toolkit that students get to build on. be the dominant player in this space for years to come. Q Why CMU? Q What big ideas will you pursue next? Q How did the Tepper School help to shape your path? Q Why CMU? I came to Pittsburgh in 2017 to work at UPMC Enterprises Right now, all I can think about is making Perch the best it The flexibility that Tepper offers really stood out to me and The initial reason I chose Carnegie Mellon was because of its as a product manager in health technology. I was busy, but can be. I truly believe we can redefine an industry if we do helped me navigate through the complex and difficult process reputation for analysis and critical thinking when it comes still itching for something else. I decided to round out my this right, but it will be a lot of work over many years (likely of figuring out a career shift. The ability to design your courses to management. I have a scientific background and a Ph.D. skills in marketing and strategy and try to build more of a cmu.edu/tepper decades), so I don’t want to be distracted anytime soon. I do and continually keep exploring new ones (including the from UCLA. It also helped that CMU was within walking community for myself here. I applied and got accepted to enjoy helping other entrepreneurs where I can so when I have flexibility to do cross department courses) was helpful. The distance from my house! Eventually the value I discovered at CMU’s Tepper School of Business. CMU has been such a spare time, I like to pay back the advice and kindness that was Tepper network is also very diverse and global. I’ve had the the University extended beyond book learning. The network champion for Culturora. I can’t wait to be able to give back shown to me along the way back. Between family, Perch, and luck of bumping into and meeting several alumni across the and the band of brothers turned out to be one of the most to the university. It’s coming! helping others, I have a full plate for the foreseeable future. globe that have helped in my career journey. enduring contributions CMU made to my life. 20 21
GOING , GOING , GONE // A LLIS GHIM (BS 19 95) BY SEB MURRAY Allis Ghim (BS 1995) does not come from the glamorous world of fine art. Masterpieces change hands for hundreds of millions of dollars at the very top end of the market. Ghim has a humbler origin and purchased Tepper School of Business | Carnegie Mellon University her first works at flea markets growing up in Boston and while on vacation in her native Korea. “It’s the thrill of the hunt that attracts me,” she says. “It’s that auction mentality, when you find a treasure and you bid on it. I love the dynamic between buyer and seller.” Her values are perfectly aligned with her current role as Chief Executive cmu.edu/tepper Officer for Bidsquare, an upstart on- line auction house which has raised $1.5 million in seed funding on its mission to democratize high-end fine art and design. 22 23
GOING, GOING, GONE ALLIS GHIM (BS 19 95) New York-based Bidsquare is rewriting reckon NFTs can tap into a broader scholarship, but what set the institution At that time, the beauty industry was More than $500 million worth of bids the rulebook and helping to bring about audience, improve transparency, and apart was the school’s prowess in science slow to embrace e-commerce, but Ghim have already been placed through the CEO sounds like a fancy a long-awaited digital transformation raise royalties for artists. “We’re definitely and technology, Ghim says. in the art market. The startup offers looking into the NFT market, as it has foresaw the sector’s impending digital platform, which has attracted 100 premier title, but for a startup makeover. When a job offer came up at auction houses and dealers along with live online auctions for rare and definitely come to the forefront of the art “All majors, even liberal arts, had to learn eBay, then a pioneering internet darling, a truly global audience. The platform it really feels like you authentic art, antiques, jewelry, world, but it’s still early days,” Ghim says. programming. Those classes helped me furniture, and collectibles. develop my problem-solving skills and the she jumped at the opportunity to recently sold an oil painting worth a record are a Chief Everything She got the CEO job through no small way I think about tackling problems today. become a Category Manager for Health $850,000. But lower-priced lots have Officer more than a Chief and Beauty. proved to be the strongest draw, with It’s one of a new breed of digital degree of courage. Having read about It’s a very rational and logical mindset that the majority of goods changing hands for Executive Officer. newcomers that have emerged to Bidsquare in the news, she immediately served me well even after I graduated.” “At the time, people doubted whether below $15,000. challenge the supremacy of traditional, fired off an email to a generic company consumers would ever buy beauty venerable auctioneers such as Sotheby’s address, not expecting a response. To her She looks back with fond memories of not products online, but it was exciting for me While the Sotheby’s and Christie’s of the and Christie’s. Bidsquare competes with surprise, Ghim received a warm reply from just the rigorous academic curriculum, to join a company that was really pushing world have been adapting to e-commerce online players Artsy and Invaluable, but one of Bidsquare’s founders the very taught by world-leading faculty, but a go- the boundaries of the retail landscape and with their own live online auctions, Ghim the USP is a curated platform with vetted next day. getting cohort of her peers, says Ghim. changing the way people shopped,” says she’s competing more with midsize, sellers. “We are addressing a problem “It makes for a unique experience.” she says. regional auction houses that don’t have of authenticity that has been around for The move speaks to Ghim’s character. the capital or know-how to build their years in the online art market,” Ghim says. A former Fulbright Scholar in Korea and You are expected to work hard, She learned to navigate the world of cross- own digital platform. Goldman Sachs alumna, her career path Covid-19 has delivered a huge boost to has taken many twists and turns. She and the people around you are border business, including the language barriers, taxes, and shipping challenges “The cost to build the technology is a the sector. According to insurance group urges others to make bold career choices: just as smart and ambitious as that are part and parcel of connecting barrier to entry,” she says, adding that Hiscox, online auction sales by Christie’s, “I have taken a lot of risks over my career, Sotheby’s, and Phillips reached $1 billion in and it’s always scary to venture into you are, but the culture is very buyers and sellers who are in different Bidsquare provides a valued service countries. “You’re dealing with layers of with a qualified audience and online 2020, up 524% from 2019. More than three something that is unfamiliar, but I think supportive and collaborative. complexity,” she says. marketing. Moreover, last year the quarters of new art collectors bought that’s the only way that you can push company launched Bidsquare Cloud, a works online last year, compared with just yourself and learn new things and grow. I Shortly after graduation in 1995, she lived The role took her across the world, but it software that allows third parties to run 36% in 2019. don’t have any regrets.” in Korea for a year on the prestigious was in Tokyo—where she exported high- auctions on their own Fulbright worldwide exchange program end health and beauty products to the websites, syncing all “A lot of people were thinking I could It has not been all plain sailing, however. that fosters multilateralism. She returned U.S. and Europe—that she found a passion bidding activity with the spruce up my space now that I’m spending The switch from large, structured com- to the U.S. with a global mindset that was for the business of luxury. Bidsquare marketplace. a lot more time at home,” says Ghim. panies with well-established infrastructure highly prized by employers: In 1996, Ghim and resources to a smaller, scrappy landed a job at the storied investment Yet Ghim gave up her globetrotting career With this software, So the appetite for online startup proved to be her toughest bank Goldman Sachs, where she worked and moved back to the U.S. to be closer to Ghim sees a bright challenge yet. as an analyst in the private wealth bidding increased during the management practice. her loved ones after a family bereavement. future ahead for pandemic, and we have not seen a “I was ill prepared for how much I would She kept working, though, and made yet the company—and another career move, this time into the a potentially bigger Tepper School of Business | Carnegie Mellon University slowdown since the reopening need to roll up my sleeves,” she says, After five years, though, she left to online luxury marketplace. business opportunity noting that she’s had to get stuck into explore more creative pursuits. “I wasn’t outside the world of The company turned cash flow positive customer service as much as board passionate about financial services,” In 2012, she joined 1stdibs.com—an online art. She is plotting an during the pandemic as sales more than meetings. Ghim explains. An MBA program at the marketplace which sells high-end furniture expansion into new doubled at one point this year. NYU Stern School of Business provided for interior design, along with fine art and categories, such as She says it has been a humbling the space to think about her next move, jewelry—as Vice President of Global Sales cars and industrial At the same time, NFTs (nonfungible experience. “I thought being CEO was and she decided to make a fresh start in and Operations. It was while in this role, equipment. tokens) are taking the art world by storm. having all the answers when in fact consumer product goods. based in New York, that Ghim first heard These lines of code, locked into the your job is to learn and gather as much about Bidsquare and made her audacious, “Bidsquare will always blockchain, exploded in popularity this information as possible so you are able She joined, as Brand and Product Manager, unsolicited approach. be focused on antiques year after a digital artwork by Beeple to develop a clear vision and plan. I wish the leading beauty brand Revlon and then and art, but Bidsquare sold for $69.3 million in an online someone had told me that before.” L’Oréal in 2001 and 2004, respectively. cmu.edu/tepper She joined the company as its first Cloud is helping us auction at Christie’s—the same fetch “The beauty industry touches the lives President and CEO in late 2014. Since to expand into other as a good Picasso. It was a formal business education that of people every day, particularly women. then, Bidsquare has flourished into a verticals that are bigger seeded her professional success. She It’s something that has a huge emotional thriving community of auction houses, in terms of the market While critics discount NFTs as pure was an undergraduate business major benefit,” says Ghim. “I felt there was a antique dealers, and collectors hoping to opportunity,” she says. financial speculation, its proponents at the Tepper School of Business, on a purpose-driven role for me.” modernize the once staid worlds of art 24 and auctions. 25
WH AT TRUE PA RTNER SHIP A ND FRIENDSHIP IS A BOUT // C A RNEGIE TIES BY TRICIA MILLER KLAPHEKE BY SEB MURRAY JAKE VACHAL (BS 2007) AND PATRICK CAO (BS 2006) MET AT THE TEPPER SCHOOL SINGAPORE NEW JERSEY UNDERGRADUATE BUSINESS ADMINISTRATION PROGRAM AND HAVE CONTINUED MENTORING AND SUPPORTING EACH OTHER FOR OVER 20 YEARS. THE FRIENDSHIP HAS GROWN FROM MUTUAL STRUGGLES, VALUES—AND A SHARED WISDOM GATHERED STUDYING AT ONE OF THE WORLD’S BEST BUSINESS SCHOOLS. CARNEGIE TIES Tepper School of Business | Carnegie Mellon University Tepper School of Business undergraduates, And yet, considerable crossovers exist. As friends, Jake’s still known as ‘handsome Jake Vachal (BS 2007) and Patrick self-defined self-starters, both share (and Jake,’” Cao laughs. Cao (BS 2006) might appear as unlikely honor) values around hard work, family, friends. Vachal hails from New Jersey lifelong learning, and risk-taking. They This easy friendship flourished throughout and embraced a traditional business also put a premium on clear and effective their studies, and (which both agree) path all the way to managing director communication and providing support defined their careers—and lives. Their of the Raine Group, a global merchant when needed. communications coaching and training bank focused on technology, media, and through Professor Claudia A. Kirkpatrick, telecommunications (or “TMT”). Cao grew The 20-year friendship, so the story then professor of Business Management up in Indonesia and returned to the region goes, began on a 100-degree August Communication, became a shared and to pursue advisory, investments, and Pittsburgh day. As new dormitory mates, memorable legacy. cmu.edu/tepper then entrepreneurship, most recently as Cao remembers Vachal’s car ownership President of GoTo, the largest technology —and his stature—as a stand-out feature. “We learned that ‘people’ problems are ecosystem in Indonesia combining the Meanwhile, Vachal defined Cao as the communication problems and the power national champions Gojek and Tokopedia. likeable, “magnetic” guy with the only of writing effective CVs,” Cao recalls of this functioning AC. “With family and among vital training. Kirkpatrick converted 26 27
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