The Darden Report Summer 2019 by Darden School of Business

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UN IV E RSIT Y O F VI R G I N I A DAR D EN S C H O O L O F B U S I N ES S

THE DARDEN REPOR T

Where Is Venture Capital Going Next?

SILICON VALLE Y

Plus Crime and Predictive Analytics Brands Taking Stands Unintended Consequences in Europe

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F UND

DESIGN Y O

THE

POSSIBILITIES

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ENDLESS

Help Darden say “yes” to innovative programs and enrichment of the education experience by making a gift to the Annual Fund today. The possibilities for how your annual gift will move the School forward are truly endless. Support an area of the School that matters the most to you: Area of Greatest Need Scholarships Faculty Excellence Global Impact

Make a gift today at alumni.darden.edu/givenow

T A C

Samantha Hartog Darden School Foundation, P.O. Box 7726, Charlottesville, Virginia 22906 USA hartogs@darden.virginia.edu | +1-434-982-2151

LETTER FROM THE DEAN

THe Blurring of Industry Lines As Darden conferred degrees on 450 new graduates in May, we announced outstanding career outcomes for our newest alumni — with salaries topping last year’s records, which landed Darden third for highest bonus and salary in U.S. News & World Report’s 2020 ranking. (That’s ahead of Harvard and behind only Stanford and Wharton.) In this hot job market, “tech” continues to gain in popularity. Yet “tech” is increasingly hard to define. For example, companies like Amazon — Darden’s new neighbor in Arlington, Virginia — could also be considered a retail company, transportation company and logistics company. Industry lines are blurring, which makes Darden’s strengths in teaching general management that much more valuable. In this issue, we showcase thinking on the use of big data for predictive modeling, as well as venture capitalists’ predictions for the migration of startup activities that have traditionally occurred in Silicon Valley to other U.S. cities. Powering the ideas are some of Darden’s new professors, such as Michael Porter, who holds a joint appointment at Darden and UVA’s School of Engineering and Applied Science, and Davide Tomio of the Finance area, who writes on the European Central Bank. Since I joined Darden as dean in 2015, we have appointed 31 new faculty to full-time roles. Buoyed by incredible philanthropy — including the truly

transformational gift of Frank M. Sands Sr. (MBA ’63) — we are powered by purpose and preparing to launch in October an ambitious fundraising campaign that will shape the School’s future for years to come. I am honored and grateful to serve as your dean for a second five-year term as we work to advance Darden’s mission to improve the world by inspiring responsible leaders through unparalleled transformational learning experiences.

SCOTT C. BEARDSLEY Dean and Charles C. Abbott Professor of Business Administration

SUMMER 2019

11–13 OCTOBER 2019

P OW ER ED BY P UR P O S E The Darden Campaign in Support of the University of Virginia Honor the Future Campaign

Save the Date HONOR THE FUTURE. HONOR THE LEADERS WHO ARE POWERED BY PURPOSE.

n 11–13 October, the University

Save the date to return to Grounds in

Honor the Future campaign, an

School unveils exciting Powered by Purpose

of Virginia will launch its historic

unprecedented $5 billion fundraising initiative commemorating the University’s bicentennial.

During that momentous weekend, Darden will also launch its Powered by Purpose campaign in support of the University’s campaign.

Charlottesville, Virginia, in October, as the progress and updates about the campaign priorities:

• Faculty, Thought Leadership and Curricular Innovation

• Scholarships, Financial Aid and Student Experience

• Darden Grounds Master Plan, and Technology and Innovation

• Darden Annual Fund

The Darden Report is published twice a year by the University of Virginia Darden School of Business Office of Communication & Marketing P. O. Box 7225 Charlottesville, Virginia 22906-7225 USA communication@darden.virginia.edu Scott C. Beardsley Dean and Charles C. Abbott Professor of Business Administration Michael J. Woodfolk President, Darden School Foundation Juliet Daum Executive Director, Communication & Marketing

THE DARDEN REPORT

EDITOR Jay Hodgkins ART DIRECTION & DESIGN Susan Wormington FEATURES DESIGN Ross Bradley WRITERS Michael Blanding Jared Bloom Simon Constable Margaret Y. Hancock Dave Hendrick Caroline Newman CLASS NOTES EDITORS Jenny Paurys Egidijus Paurys Liz Boone

PHOTOGRAPHY Stacey Evans Ashley Florence Avi Gerver Stephanie Gross Sam Levitan Michael Paras Matt Riley Andrew Shurtleff ADDITIONAL PHOTOS Bigstock.com istock COVER ILLUSTRATION Ross Bradley

THE DA R D E N R E PO R T

/ Summer 2019 N Y E C OR W IT K Y

F E AT U R E S 12 Silicon Beyond the Valley

For the better part of a half-century, the epicenter of venture capital in the United States has been located in the heart of California’s Silicon Valley. But Silicon Valley’s grip on startup success is beginning to loosen. Darden alumni venture capitalists say “the universe is expanding.”

CA SILICON VA LLEY

16 The Foreseeable Future

A LU M N I

26 Faculty Spotlight: Justin Hopkins

5 Darden School Foundation News

28 Alumni Spotlight

32 Roger Werner (MBA ’77)

6 Dean Reappointment

30 2019 Reunion Recap

33 Liz Lynch (MBA ’84)

7 Darden Worldwide

31 Abbott Award Winner

34 Valerie Camillo (MBA ’00)

8 A Year Like No Other

42 In Memoriam

45 20 Questions: Dorothy Batten (MBA ’90)

10 Teaching Legends Retire

43 Alumni Leadership Boards

11 Graduation 2019

45 Frank M. Sands Sr. (MBA ’63) donates largest gift in School’s history

20 Questions: Dorothy Batten (MBA ’90)

SCHOOL NEWS

There’s a new type of brand in town: the brand citizen. The role of corporate brands is expansive, as consumer expectations for corporate responsibility continue to rise. Darden professors and alumni explore brands taking stands and the emerging concept of “brand citizenship.”

22 Brand Citizenship

The Europe Central Bank responded to the global financial crisis with a government bond-buying binge. New research shows that strong medicine for what ailed Europe’s financial markets came with strong side effects at the expense of the taxpayer.

20 Unintended Consequences in Europe

Data science is being used to predict everything from potential crimes to Yelp reviews. One Darden professor is not just advancing the practice of predictive modeling but working to benefit society by developing models that can help fight crime and correct for bias in the system.

PROFILES

SILI BEY THE VALL

Darden Dean Scott Beardsley, left, and UVA President Jim Ryan, right, celebrate with Frank M. Sands Sr. (MBA ’63), center, at an event held to honor Sands, whose $68 million gift is the largest in Darden School history.

A Truly Transformational Gift Sands Capital Management Founder Frank M. Sands Sr.’s (MBA ’63) gift will transform Darden through a new institute for lifelong learning, unprecedented faculty support, and world-class facilities in Charlottesville, Virginia, and the Washington, D.C., area.

arden has received the largest gift in its 64-year history. Sands Capital Management Founder Frank M. Sands Sr.’s (MBA ’63) new gift of $68 million will move the top-ranked business school forward in several key areas. The new Sands Institute for Lifelong Learning will enable innovation in the degree, non-degree and online spaces. It will help retain and develop Darden’s world-class faculty. The gift will transform Darden’s educational facilities in Charlottesville, Virginia. Sands’ investment also honors his late wife, Marjorie R. Sands, a lifelong educator. “The Darden School was a transformational experience for me, and I am an ardent supporter of its mission and values,” said Sands. “I am a big believer in lifelong learning and that learning is enabled by great faculty.” Sands’ gift delivers $82 million in total impact, which includes the $68 million new gift and $14 million in matching

THE DARDEN REPORT

funds from UVA’s Bicentennial Professors Fund. The $82 million in funding will transform Darden in various ways: • A $20 million endowment for the Sands Institute for Lifelong Learning will enable Darden to grow impact through innovation in new and existing programs for executive education and lifelong learning. • A $35 million Sands Professorship Fund, comprised of a $21 million donation from Sands plus $14 million in matching funds from the Bicentennial Professors Fund, will create 12 new faculty chairs to bolster excellence and innovation in pedagogy, online learning, and engagement with practice, in support of growth in degree programs for working professionals. • A $20 million fund for the construction of the new UVA Inn at Darden and Conference Center for Lifelong Learning in Charlottesville will jumpstart the estimated $90 million project, which will include a projected 199-room hotel and conference center, feature a five-acre arboretum and connect Darden and UVA’s School of Law. • A $7 million fund for the C. Ray Smith Alumni Hall, which is named in honor of Dean Emeritus C. Ray Smith (MBA ’58), who mentored Sands, will renovate this part of the Inn at Darden into new academic space for Darden. Sands’ gift builds on the joint donation of $5 million that he and his son, Frank Sands (MBA ’94), recently made to build Darden’s new campus in the Rosslyn district of Arlington, Virginia — the UVA Darden Sands Family Grounds.

F RO M T H E DA R D E N S C H O O L F O U N DAT I O N

Your Darden Legacy

Michael J. Woodfolk (TEP ’05)

or 19 years, I have ridden the wave of spring at Darden. After the New Year, there is a slow build toward April: Reunion volunteers are recruited, event venues are secured, board meeting agendas are finalized, anticipation grows. When the final week of April rapidly crashed in this year, the Darden Grounds flooded with more than 900 alumni from the past 60 years. During Darden Reunion, alumni celebrate decades-long friendships and proudly show their children around their alma mater. The dean shares the School’s progress and the board of trustees works tirelessly to ensure that the next generation of alumni will be just as proud. And after reunion, we are energized by the alumni, parents and friends who are newly inspired to participate, to lead, to innovate — Darden’s greatness is built on the legacies of these individual people. On 24 April, the Darden family suffered a great loss. Herb Crowder (MBA ’66), founder of the Armstrong Center for Alumni Career Services, passed away after a prolonged battle with brain cancer. Herb embodies this notion of individual contributions creating greatness for Darden. Herb had a vision for Alumni Career Services and the tenacity to build it and nurture it.

Passing the Baton After three years as chair of the Darden School Foundation Board of Trustees, Grafine Partners Founder and Managing Partner Elizabeth Weymouth (MBA ’94) passes the board chair baton to former Celgene Chairman and CEO Bob Hugin (MBA ’85) on 1 July. Under Weymouth’s leadership, the board of trustees oversaw the rapid buildout of the new UVA Darden Sands Family Grounds in Arlington, Virginia, on the banks of the Potomac River, led the BOB HUGIN (MBA ’85) planning phase of a major upcoming capital campaign, and formalized a strategic plan and vision for the School with Dean Scott Beardsley. Hugin, also a board member of Allergan, takes the reins as chair just ahead of the public launch of Darden’s Powered by Purpose campaign, which is in support of UVA’s $5 billion campaign launching in October.

Decades later, the Armstrong Center for Alumni Career Services is world-renowned and the most valuable complimentary offering available to business school alumni. Herb’s legacy lives on. I invite you to read reflections about Herb at drdn. mba/Crowder, share on your social media pages and include your own remembrances of Herb. If you aren’t familiar with Alumni Career Services, including career coaching (and retirement coaching), please learn more at alumni.darden. edu/acs. I’m reminded often by the legends of Darden (John Colley, Bill Sihler, C. Ray Smith, Alec Horniman, Bob Bruner) that few things have or can ever happen at the School single-handedly. Students need good professors, professors need good administration and the School at large needs lifelong alumni support. The legends have a way of making you think: Nothing happens at Darden without the support of others. Consider your legacy at Darden. It may come in the form of contributing your time and talents or your treasure. Please reach out to me if this is something that we can explore together.

Michael J. Woodfolk (TEP ’05) President, Darden School Foundation

Quite simply, I

believe education is one of

the most significant gamechangers in life. In a world of inequality, education

is an equalizer and opens the door to endless new

opportunities. The power of education — broadly — is

indisputable, and no one can take that away from you.” Elizabeth Weymouth (MBA ’94), outgoing chair, Darden School Foundation Board of Trustees SUMMER 2019

SCHOOL NEWS

Dean Scott Beardsley at the Helm Through 2025

VA this spring reappointed Dean Scott Beardsley to a second five-year term, extending his appointment to 2025. Beardsley assumed the role of ninth dean of the Darden School and Charles C. Abbott Professor of Business Administration on 1 August 2015. Beardsley’s first term has been marked by significant advances throughout the Darden School, with a record of accomplishment in key areas such as student recruitment, faculty hiring, program innovation, infrastructure development, investment in research, global reach and relevance, and fundraising. The School also rose in each of the major MBA program rankings in the 2018–19 academic year and now stands in the Top 10 globally in Bloomberg Businessweek and The Economist.

Recruiting Top Student and Faculty Talent Under Beardsley’s leadership, the academic quality and diversity of MBA students has soared to new heights, including the highest percentage of enrolled women and the highest number of minorities and international students in Darden history. The School has made significant progress in attracting the next generation of top faculty members, with 31 faculty members who have joined or will join the world’s best teaching faculty full time in Beardsley’s first term.

New DC Area Grounds and Programs The reach, breadth and digital innovation of Darden’s academic programs has also expanded under Beardsley. The School successfully executed plans to bring Darden to the Washington, D.C., area, launching a section of the Executive MBA in 2016, the Master of Science in business analytics program in 2018 and dedicating new Grounds in the Rosslyn district of Arlington, Virginia, in 2018.

A New Era of Philanthropy at Start of Capital Campaign The new D.C. area location was made possible in part by a generous gift from Sands Capital Management Founder Frank Sands Sr. (MBA ’63) and CEO and Chief Investment Officer Frank Sands (MBA ’94). The fiscal year ending 30 June 2019 represents the third consecutive year of record-breaking fundraising, positioning the School well to support UVA’s soon-to-launch capital campaign and laying the groundwork for a 10-year Darden facilities master plan, which aims to ensure the School’s infrastructure remains equipped for the educational and programmatic needs of the future.

Leading the Darden School of Business is one of the great honors of my life, and I am humbled to be entrusted to continue to lead the School. I believe we have made great progress on our vision to achieve the full potential of the School’s mission to improve the world by inspiring responsible leaders through transformational learning experiences. I truly believe the best is yet to come for this vital institution.” — S CO T T B E A R D S LE Y Dean and Charles C. Abbott Professor of Business Administration

THE DARDEN REPORT

Putting the

‘Global’ in GLOBAL BUSINESS SCHOOL

Darden full-time MBA and Executive MBA students have the opportunity to travel to more than 50 locations in nearly 30 countries as part of Darden Worldwide courses, executive residencies and consulting projects. The School’s faculty spans the globe speaking at prestigious thought leadership events, roundtable discussions and research symposiums. Explore the map for Darden highlights from around the world.

C H I NA Professor Pedro Matos and lecturer Nick Sargen led Darden’s sixth annual Shanghai Investing Summit, exploring investment hot topics in China, the U.S. and around the world.

NE W Z E A LA ND

I TA LY Professor Luca Cian and Dean Scott Beardsley led a first-time course for full-time MBA students, examining how Italian brands became synonymous with luxury in industries ranging from auto to wine to fashion.

WASHIN GTO N , D.C . World Bank Development Prospects Group Director Ayhan Kose led an Executive MBA class in Darden’s Washington, D.C., area facility on challenges and opportunities in emerging markets.

G U I N EA Mamadi Diane (MBA ’19) helped create and lead a global consulting project with his family’s business in Guinea, where the team of students met with several highranking individuals, including the country’s prime minister.

Led by Professor Alan Beckenstein, a new course allowed full-time MBA students to learn how an isolated island nation collaborates across business, government and other institutions to compete globally.

D U B A I A ND B A H R A I N Led by Professors June West and Yiorgos Allayannis, full-time MBA students explored how these two countries created competitive global economies while preserving their unique cultural traditions and history.

SUMMER 2019

A YEAR LIKE NO OTHER

From Charlottesville, D.C. and Minneapolis to the rankings and Darden mentions in the media, the 2018–19 academic year brought countless highlights.

National Champions Ty Jerome jumps for joy as the UVA men’s basketball team won its first national championship. Darden, UVA, Charlottesville and fans everywhere rallied around the team, creating a festive atmosphere across Grounds throughout March and April. Below: Cav Man stopped by Darden for First Coffee the morning after the championship to kick off the annual GivingToHoosDay.

The New York Times Event: Innovate Like a Boss With Alexis Ohanian

If your goal in some way, shape or form is to change the world, however you see that happening, being able to communicate effectively has to be some part of that.” — ALEXIS OHANIAN, managing partner of Initialized Capital and co-founder of Reddit The UVA alumnus headlined The New York Times’ Get With the Times event held in Darden’s Abbott Center Auditorium.

THE DARDEN REPORT

Rankings: Proof in Darden’s Purpose In its Global MBA Ranking 2019, Financial Times named the Darden MBA program:

No. 1

GENERAL MANAGEMENT

CORPORATE SOCIAL RESPONSIBILITY

in the world for

(for the sixth time in seven years)

Merck CEO to Exec MBAs: How to Create Purpose-Driven Culture

There are a lot of people in academia who don’t want to come over to the ‘cold dark side.’ If they were going to come to the dark side, creating a vaccine for Ebola is a strong statement to them about what the company’s values are.” — KEN FRAZIER, chairman and CEO, Merck, spoke to a special joint session of the Executive MBA classes of 2019 and 2020 at Darden in the Rosslyn district of Arlington, Virginia

Driven by the School’s commitment to be the purpose-driven MBA and teaching on topics including ethical, social and environmental issues, Darden became the first MBA program ranked atop the list for Corporate Social Responsibility — a new component of the Financial Times ranking introduced this year.

U.S. News & World Report

No. 3

reported that Darden’s Class of 2018 ranked No. 3 for highest compensation among all U.S. business school graduating classes, behind only Stanford and Wharton.

Darden rose five spots to No. 12 in the Financial Times ranking among U.S. MBA programs, a number it matched when U.S. News & World Report followed suit ranking Darden No. 12 — up one spot from the previous year.

Darden in the Media Endeavor Returns Money to Saudi Arabia, Protesting Khashoggi Murder

Does Design Pay Off? Yes. (And There’s Data to Prove It.)

Husk Power Bolsters Narendra Modi’s Dream of Power to All

The New York Times

Fortune

The Economic Times (India)

When the talent agency Endeavor severed its relationship with Saudi Arabia’s leaders by returning a $400 million investment from the Saudi government investment fund in the wake of the murder of journalist Jamal Khashoggi, The New York Times looked to Professor Greg Fairchild (MBA ’92) for perspective. There’s a strong argument for corporate leaders to follow Endeavor’s lead, Fairchild said. While it might hurt in the short term, “you can look in the mirror and say, ‘We’re just not involved in that.’”

Professor Jeanne Liedtka was a featured speaker at Fortune’s Brainstorm Design conference in Singapore this spring. She spoke to the mindset corporations need to adopt to empower innovation and creativity. “If we focus too much on revenues and profits, we lose some of the superpower of design,” said Liedtka, who suggested that power can’t necessarily be measured in a short period of time and requires leaders to be open to the unexpected.

With the Indian government now pursuing a massive build-out of renewable energy across the country, Husk Power Systems CEO Manoj Sinha’s (MBA ’09) company is helping fill the gaps in isolated, rural areas. “We filled that gap by providing 100 percent renewable power through the hybrid mini-grid system,” Sinha said. “Combining solar [photovoltaic], biomass gasification and battery banks, rural households and businesses got access to 24/7 renewable power.”

SUMMER 2019

Retiring Legends:

130 Years of Teaching, Thousands of Grateful Students BOB LANDEL

JIM FREELAND

PAUL FARRIS

Henry E. McWane Professor of Business Administration Technology and Operations Management

Sponsors Professor of Business Administration Technology and Operations Management

Landmark Communications Professor of Business Administration Marketing

50 YEARS

40 YEARS

39 YEARS

An operations and supply chain management expert, Professor Jim Freeland taught core and elective courses in the full-time MBA and Executive MBA programs, and played a role in raising the School’s reputation for research. Freeland, who directed the Darden doctoral program for a period in the 1980s, was hired from Stanford in part for his research experience and reputation. After making a name for himself as a researcher and teacher at Darden, Freeland’s next act at the School was likely his most influential. His 19-year tenure as senior associate dean for faculty and research, from 1993 to 2012, coincided with a sharp increase in faculty diversity. When he took the role, the School had 46 faculty members, all white men save for five women and one under-represented minority. The one professor with an international background was from Europe. A concerted effort led to a steady diversifying of the Darden faculty, with the 72 faculty members at the end of Freeland’s tenure as senior associate dean far more representative of global business. The number of women rose from five to 16, for instance. “It’s very gratifying to look at these people we hired and where they are now,” Freeland said. “They are great leaders, and I’m really proud of that.”

Professor Paul Farris enrolled in a doctoral program at Harvard in the mid-1970s, thinking the additional academic bona fides might lead to a career in consulting. Instead, Farris began teaching at Harvard. In one year teaching marketing cases, he said he learned more marketing than in the entirety of his doctoral program. So, when the other case-centric MBA program came calling, Farris traveled to Darden for a week to visit and never left. “We were charmed by the people we met and the Charlottesville community,” Farris said. “My wife and I had just gotten married. We were planning on having children, and we just thought that Charlottesville would be a wonderful place to bring up kids. And that turned out to be true.” In his decades at the School, Farris saw his area of interest change dramatically, with an entirely new category of marketing metrics and practices ushered in by the popular adoption of the internet in the mid-1990s. “At some other places, the nitty gritty of practice is regarded as noise as far as applying the more abstract theory of management,” Farris said. “For me, that nitty gritty is the foundation.” Farris pointed to the current Darden faculty as evidence that the commitment to practical applicability is as strong as ever at the School.

Professor Bob Landel in 1969 joined Darden’s first generation of faculty, a cohort populated with professors who, along with Dean Charles Abbott, were key leaders and major contributors to the School’s formation and growth. The young operations professor quickly took to the classroom experience, crediting Professors John Colley and Professor William Sihler with honing his approach: Ask questions and facilitate, but let the students guide a sizeable portion of the classroom. Landel said he treated teaching and student interaction like a service business, staying focused on the educational promises, fully engaging in the classroom, and “going overboard with energy and enthusiasm” when the opportunity arose to work with students outside of classroom. “People ask how do the faculty and staff create such loving and loyal alumni, and it’s that total engagement in a well-understood learning process,” Landel said. When Landel reflects back on his choice to come to Darden, he has no doubt he made the right decision. “The opportunity to be part of expanding on the core of the School, and to be involved in managing that growth, they were huge opportunities,” said Landel. “This is the ultimate heaven-on-earth experience with regard to career.”

Darden celebrated the careers and accomplishments of three beloved professors who retired at the end of the academic year: Paul Farris, Jim Freeland and Bob Landel. These professors helped secure Darden’s reputation for having the best teaching faculty in the world, and their contributions inspiring future leaders, advancing knowledge and developing the next generation of faculty stars is immeasurable.

THE DARDEN REPORT

Graduation 2019 FACULT Y MARSHALS ELECT ED BY T HE CL ASS OF 2019 Full-Time MBA LALIN ANIK BOBBY PARMAR Executive MBA PAUL SIMKO

448

Honorary Faculty Marshals PAUL FARRIS JIM FREELAND ROBERT LANDEL

IN FOCUS

G R AD U AT E S C O M B I N E D I N T H E F U L L - TI M E A N D E XE C U T IVE M B A PRO G R A M S

15 6

DUAL-DEGREE GRADUATES

ELECT ED SPEAKERS CL ASS OF 2019

PH.D. GRADUATES

S e co n d Yea r Cl a ss Gift

$147,124 FULL-TIME MBA CLASS GIFT 99% FULL-TIME CLASS GIFT PARTICIPATION $45,997 EXECUTIVE MBA CLASS GIFT 92% EXECUTIVE MBA CLASS GIFT PARTICIPATION

ANNE MCKENNA (MBA ’19)

“Change begins not from large, systemic changes, but instead from a collection of many small changes.”

Awards

STUDENTS RECEIVED THE C. STEWART SHEPPARD AWARD RECOGNIZING EXCEPTIONAL SERVICE TO THE SCHOOL OF A NONACADEMIC NATURE Kwaku Adjei-Frimpong William Childrey Kimberly Diaz Hanna Dobbels Terrell Fuller

Jane Hannon Colin Leslie Justin Masters Anne McKenna Johnny Mishu

Amanda Richardson Freyan Soonawalla Caitlyn Unsworth Allison Yarborough

TOM GONZALEZ WAS THE RECIPIENT OF THE FREDERICK S. MORTON AWARD, PRESENTED TO AN OUTSTANDING STUDENT IN LEADERSHIP.

DR. CHRIS THOMSON (EMBA ’19)

“What makes the Darden heart truly beat is the humility to allow a space to materialize, a space where the outcome is uncertain.”

STEVEN NEECE WAS THE RECIPIENT OF THE EXECUTIVE MBA FACULTY AWARD, PRESENTED TO AN OUTSTANDING STUDENT IN THE EXECUTIVE MBA PROGRAM.

SUMMER 2019

CA SILICON VA LLEY

THE DARDEN REPORT

N Y EW C OR IT K Y

SILICON BEYOND THE VALLEY TN

Where is Venture Capital Going Next?

BY JARED BLOOM

A S H V IL LE

SUMMER 2019

or the better part of a half-century, the epicenter of venture capital in the United States has been located about 30 miles south of San Francisco, in the heart of California’s Silicon Valley. In Menlo Park alone, you can find more than 40 venture capital firms scattered along a two-mile stretch of a single street. The concentration of venture dollars on Sand Hill Road is no surprise. After all, if you want to make money investing in startups, then you have to go where the entrepreneurs are. And for decades, this meant proximity to the first generation of successful tech startups — many of which are located between San Mateo and San Jose. Yet Silicon Valley’s grip on startup success is beginning to loosen. Companies like Snap, Flatiron Health, SendGrid, Duo Security, Qualtrics and Shipt have proven that where you put your headquarters does not determine your destiny. Founders are building successful companies — and achieving massive exits — in Los Angeles; New York; Denver; Ann Arbor, Michigan; Provo, Utah; Birmingham, Alabama; and everywhere in between. “The universe is definitely expanding,” says Jonathan Ebinger (MBA ’93), a general partner at BlueRun Ventures. His firm, which made the first institutional investment in PayPal in 1999, now includes Atlanta’s Kabbage, San Diego’s Verve and New York City’s Jackpocket, among its most promising investments.

CAPITAL AND TALENT: A MATTER OF SUPPLY AND DEMAND Last year was a banner one for venture capital, with more new funds raised than in any year in history. But more capital means more competition, which has led to a growing gap between the amount of capital looking to be deployed in startups and the number of investment-worthy companies in Silicon Valley. With too much cash chasing too few companies, founders outside of the Bay Area are gaining attention. “If you raise a venture fund, especially here in the Valley, there are probably five people in the same building who have raised just as much money,” says Ned Hooper (MBA ‘94), managing partner of Centerview Capital in Palo Alto, California. “You need to understand your differentiation as an investor to put your money to work.”

THE DARDEN REPORT

But this decentralization of the startup world doesn’t just create opportunities for founders who don’t want to move out West. It also gives venture investors access to a broad pool of companies with massive untapped potential. “If you look at the metrics, the return multiples for Midwest startups are higher than West Coast startups,” says Nick Moran (MBA ’08), the founder and general partner of New Stack Ventures, a seed fund based in Chicago that invests exclusively outside of San Francisco and New York City. As Moran explains it, focusing on undercapitalized cities like Chicago offers his fund an opportunity to invest in companies at more attractive valuations than you’re likely to find in the hyper-competitive, hypedriven Silicon Valley bubble. “This gives these companies more runway, less pressure, and the ability to achieve higher returns for their investors and their employees, if they end up being successful,” he says. Kristin Gunther (MBA ’09), a principal The key is not to chase the investor at Washington, D.C.-based Revolution ghosts of ’90s Silicon Valley but Growth, which is specifically focused on for these communities to take companies outside of advantage of their own unique the Bay Area, says that a startup located outside assets. There are many reasons of the San Francisco to be optimistic about innovation orbit can actually be a competitive advantage for outside Silicon Valley, as long founders looking to build successful companies. as we’re ready to expect the With less competition for top talent and a lower unexpected. — Jonathan Ebinger (MBA ’93) cost of living, founders in emerging tech hubs often have an easier time building out highperforming teams that are likely to stick around, she says. A founder in Omaha, Nebraska, for example, will likely have her pick of top engineering talent from local universities. “What I hear from some of these companies is that their employee base is more loyal and stable, and that’s a big advantage for them,” says Gunther. “In fact, a number of our companies have been able to convince senior-level people to leave San Francisco and join companies in more affordable markets.”

As for the founders themselves, Moran believes that they, too, give him an edge. Whereas Silicon Valley founders often have high-paying jobs waiting for them if their startups fail, those in nontraditional startup markets are taking a much bigger leap. “We like to fund missionaries, not mercenaries — founders who are tenacious and unyielding in their commitment to make their startup a success,” Moran says of the entrepreneurs he meets outside of Silicon Valley. “They are so dedicated to their mission that they build teams of zealots with an irrational commitment to the task at hand.”

TECH MAY LIVE IN THE VALLEY, BUT ‘TECH-ENABLED’ KNOWS NO BORDERS This trend toward a more distributed tech ecosystem seems likely to endure, but only if entrepreneurs outside of the Valley continue to launch companies and find the support they need. According to Hooper, this shouldn’t be a problem. “A lot of startups being built today are not traditional tech companies; they’re tech-enabled businesses,” he says. “This means that founders’ focus is business-model innovation, and that experience and expertise is more geographically diverse.” This is why, he believes, you’re seeing media and entertainment startups thrive in New York City. Similarly, you might expect to see automotive startups emerge in Detroit or health care startups in Nashville. As these new markets mature, Gunther expects them to be fortified with burgeoning local ecosystems. As soon as one company has success in a particular market, she argues, the next entrepreneur instantly has access to better talent, more resources and deeper networks. And this is how new startup hubs are born. “It’s been really exciting watching these ecosystems mature,” says Gunther. Ebinger, whose investing career dates back to the first dot-com boom, agrees. But he also offers a few words of advice for communities that see themselves as the next great startup hub. “The key is not to chase the ghosts of ’90s Silicon Valley but for these communities to take advantage of their own unique assets,” he says. “There are many reasons to be optimistic about innovation outside Silicon Valley, as long as we’re ready to expect the unexpected.” Which, after all, is what a venture capitalist is paid to do. Jared Bloom is a UVA graduate and co-founder of 4th & King, a fundraising agency based in San Francisco that helps both startups and venture funds to craft and design fundraising pitch presentations.

WHAT’S THE NEXT NEXT THING? We asked four venture investors from the Darden network to weigh in on the big bets they’re making on the future of technology. NICK MORAN (MBA ’08) The Internet of Things (IoT) “IoT is more than just connected devices. It’s about creating feedback loops with hardware and software that allow for on-demand actions and real-time improvements. We are moving toward a world in which everything around us can be an interface. In fact, I don’t think we’ll be referring to IoT by name in 10 years; it will be as ubiquitous as the internet itself.” KRISTIN GUNTHER (MBA ’09) Augmented & Virtual Reality “When you experience what’s possible today with virtual reality, you immediately get it. And with hardware costs going down, content getting better, 5G rolling out and more opportunities for consumers to try it, we’re getting closer to the verge of mass adoption. This movement will be led by gamers at first, but I think it will quickly find traction in entertainment, and then in the enterprise.” JONATHAN EBINGER (MBA ’93) Real-Time Data “When we invested in Waze, it was the first map software to use real-time data to update traffic information for users. Today, we’re seeing financial services companies like Kabbage use real-time data to instantly qualify small businesses for loans. This is incredibly powerful, but it’s amazing how many industries still haven’t come around to this kind of decision-making.” NED HOOPER (MBA ’94) Big Data (for real, this time) “The first generation of big data fell short of its promises and created a lot of challenges for enterprises. But today, we’re starting to see companies successfully bring together all of their data — from thousands of sources — to deploy analytics in a meaningful way. Imagine a hospital system, for example, that can analyze all of its historical data instantly — across all of its facilities — to instantly determine the best course of treatment for any individual patient. This is where we’re headed.”

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THE DARDEN REPORT

THE FORESEEABLE FUTURE Data science is being used to predict everything from potential crimes to Yelp reviews, and a Darden professor is leading the practice of predictive modeling. BY MICHAEL BLANDING

n alert comes in over the scanner of a burglary on the corner of 16th and Washington streets, and police rush to the scene. They get there just in time to apprehend the thief, who is coming out of the house when they arrive. They put him in cuffs and drive him away in the squad car. It’s a scene that happens every day and that’s played out in virtually every police procedural drama on TV. But what if that scene played out another way — powered by data and technology? Take two: An alert comes in over the computer of a burglary that may occur on the corner of 16th and Washington streets, and police drive to the scene. They get there long before the thief does, who sees the police and slinks away empty-handed, burglary averted. The police again check their computer, which is giving them an alert of another possible crime yet to occur, and speed off to a new location to prevent it. The second scenario sounds like something out of science fiction. Indeed, it recalls the premise of the tech noir Philip K. Dick story–turned–Tom Cruise vehicle Minority Report, in which mystical mutants called “precogs” identify people guilty of “precrimes.” But the scenario is playing out in cities across the country, where people are using machine-learning techniques to accurately predict lawbreaking and drive down crime rates. Searching for the Patterns in Data

“What we are really trying to do is find patterns in the data,” says Professor Michael D. Porter, who holds a joint appointment at the University of Virginia’s School of Engineering and Applied Science and the Darden School of Business. Porter is at the forefront of using big data to predict everything from cyberattacks to terrorism to Yelp reviews. “Traditionally, you know what patterns you expect to see based on knowledge and experience. But we have so much data now, we can let the data tell us what the relationship should be.” Police departments have long used data to track crimes, most famously in the CompStat approach to policing pioneered in New York City in the mid1990s, which used geolocated crime statistics to identify crime “hot spots.” Porter’s approach takes that tactic to the next level by using historic data to identify hot spots of the future. “Let’s say we had three car thefts, on the same street in one week,” Porter says. “Past crime patterns might suggest that all streets within five blocks might not only be a hot spot for more car thefts but also a hot spot for burglaries.” The method uses a principle in data science known as contagion, in which a phenomenon spreads and grows, just like an infectious disease. SUMMER 2019

In 2017, Porter used that principle to develop a model with George Mohler, a computer scientist at Indiana University– Purdue University Indianapolis, that they entered into a crime forecasting competition run by the National Institute of Justice. The contest used data of nearly 1 million crime calls in Portland, Oregon, in the five years between 2012 and 2017, and asked contestants to predict hot spots for future periods ranging between one week and three months. Porter’s and Mohler’s team won nine categories and tied for first overall. Mohler has used similar models to create a commercial software called PredPol, which is used by the City of Los Angeles and dozens of smaller cities from Santa

To Work on Predicting the Future, Porter Looks to His Past

Porter did his undergrad work at Purdue University and went back to school at Vanderbilt, where he studied systems engineering and began to use some early big data concepts to analyze technology companies. What set him on his future course, however, was studying for a Ph.D at UVA’s School of Engineering and Applied Science under Don Brown, W.S. Calcott Professor and founding director of UVA’s Data Science Institute. Brown was working on his own methods for predicting crime. “When you go out and buy shoes, you pick a store based on the kind of brands, the cost and location, and criminals do very much the same thing,” Brown says. “Only “Humans are very complex, but we have they are shopping in your house or strong patterns as well — in how we somewhere else they speak, how we engage in social media, are not supposed even how we carry about crime. By to.” Based on those characteristics, one understanding these patterns and how we generate them, we can use them to can determine where a criminal might benefit society.” — Professor Michael D. Porter strike next. Inspired by Brown’s techniques, Cruz, California, to Decatur, Georgia, to Porter used a similar analysis to identify inform where they send their patrols. perpetrators of serial crimes, such as a string “We train the model on their data in of burglaries. “You want to find out if a order to estimate different risk patterns,” collection of crimes was committed by the says Mohler. “It resets itself every night and same offender or possibly a group of cothen, each day, has predictions for every offenders,” Porter says. shift.” The software identifies cells as small To do that, he looked for patterns in as 150 square meters, and determines the elements of the crimes that were both probability of crimes in each cell by time unique and persistent. “If you are looking period. In some cases, those hot spots might for burglary, and you find someone went be consistent — say a certain problem bar through an unlocked door, that’s not very that always lets out at 2 a.m. — while others helpful, but if you have two crimes in which shift from week to week or day to day. In a someone goes through the roof, that’s very peer-reviewed study, Mohler has shown that unique,” says Porter. He proved the accuracy the technique bears fruit in deterring crime of the technique analyzing five years of — with a 7 percent reduction in property burglaries in Baltimore County, Maryland, crime rates for every 30 minutes officers resulting in 91 percent accuracy in the 100 spend in a hot spot. highest-ranked pairs of crimes. In fact, using that technique, Porter

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was able to see patterns in crimes that the criminals might not have known about themselves, which might give police clues for where to look for the next crime to occur. “Offenders may not be making conscious choices to say, ‘I am only going to neighborhoods that have trees and don’t have streetlights.’ They may just see a place and say, ‘this place looks good,’” Porter says. “But if you collect enough data, you can get into the mind of the offender and discover things they may not know about themselves.” It’s these kind of predictions that create uneasiness about data prediction being a form of Minority Report–esque precrime. The difference, Porter says, is causality. “We aren’t saying we know what people will do, and we are going to go out and intercept them,” he says. Rather, the data models create predictions of the probability that crimes may occur. “We are saying that there is an elevated risk of crime at certain locations and times; police can use this information to better schedule patrols.” Accounting for Bias in Data and Predictive Policing

There is a legitimate criticism that predictive policing can lead to racial profiling if the neighborhoods identified by the model tend to be those of a certain racial or ethnic demographic. If police then carry out more arrests there due to racial bias, those arrests could feed into the model and influence future predictions. “You have a loop that starts to overemphasize certain races,” Porter says. One solution to the problem is to routinely allocate patrols to other areas in the city with different ethnic makeups, to make sure that discrimination doesn’t infect the model. A more sophisticated solution is to find a way that the model itself can identify when arrests are due to racial bias, and which fit into larger patterns of crime, so the model itself can become self-correcting.

FIGHTING BACK AGAINST THE DARK SIDE OF DATA Battling data breaches and hacks to make social media a safer place, an alumni led cybersecurity venture has drawn significant funding and high-profile clients.

Applications for Predictive Models Across Industries

Policing isn’t the only area in which Porter and other researchers have used data contagion to predict future events. In other work, Porter and colleagues have applied similar techniques to acts of terrorism in the Middle East. In a paper currently under review, for example, Porter found a relationship between the size of a terrorist attack and the short-term risk of another attack. Attacks in Iraq and Israel that killed a large number of people were followed by a reduction in the risk of future attacks. In Afghanistan, however, he found no such effect. Porter has also applied his techniques to cybersecurity, creating a model to predict whether employees might cause a future security breach. Looking at factors such as an individual’s morality, beliefs and attitudes, he was able to predict with 85 percent accuracy whether an employee would become a security risk or not. In another recent project, Porter applied similar techniques to Yelp reviews of restaurants, examining how current reviews influenced future reviews. He found that reviews were, to a certain extent, selfreinforcing. If a restaurant had a number of five-star reviews, it was more likely to get five-star reviews in the future. However, if a highly rated restaurant suddenly got a one-star review, Porter found, there is a shortterm boost in the frequency of five-star reviews. “There is a self-correction going on,” he says, “as if people are saying, I wasn’t going to make a review, but now that I see there is a one-star review, I want to show this is a good restaurant.” The other possibility, of course, is a bit more nefarious — that the restaurant management itself is orchestrating the five-star reviews in order to offset the effect of the negative rating. Porter is currently working on analyzing word patterns to identify whether that may be the case. The potential for using machine-learning techniques to predict future patterns is still in its beginning stages, and Porter foresees a wide range of possible applications. “What I am really interested in is understanding human patterns and behavior,” Porter says. “Humans are very complex, but we have strong patterns as well — in how we speak, how we engage in social media, even how we carry out crime. By understanding these patterns and how we generate them, we can find ways to benefit society.”

Marriott announces that as many as 500 million guest accounts could be compromised by a data breach. Facebook says a breach may have exposed as many as 50 million account details. Google says the personal data of nearly 53 million users of the now-defunct Google Plus was exposed. One only needs to glance at the daily headlines to see evidence of the growing breadth and depth of hacks, breaches and other technology-enabled attacks. Amid the swirl of breaches and hacks, tech startup veterans Jim Zuffoletti (MBA ’05) and Otavio Freire (MBA ’05) noticed the potentially complicating trend of companies conducting more and more of their business outside the traditional confines of their servers and firewalls, with significant activity on platforms such as WhatsApp, WeChat, Slack and Facebook, among scores of others. The pair launched SafeGuardCyber in 2014, and the Charlottesville-based digital risk protection company has grown at a clip, evidence of the hunger for data security services. “The new reality is business is taking place outside of the walls of the company in all of these different digital and social platforms, and we enable companies to secure them,” said Zuffoletti. Since launching the venture, Freire and Zuffoletti have scaled quickly, employing more than 50 people and recently attracting an $11 million series B funding round from AllegisCyber and NightDragon Security. The company also received venture funding from Harbert Growth Partners, where alumnus Brian Carney (MBA ’07) serves as general partner. Client lists are confidential, but Freire says they include large governments, financial institutions, five of the Top 10 pharmaceutical companies and one “well-known cybersecurity company.”

INSIGHTS FOR CYBERSECURITY AT YOUR ORGANIZATION Freire said business leaders should keep in mind three trends as they consider their cybersecurity positions: 1. Attacks by a range of actors are growing. 2. Businesses’ security teams are probably overwhelmed, with a queue of security issues that grows faster than it decreases. 3. There is a critical shortage of cybersecurity professionals. Zuffoletti said the first step in protecting critical areas of operations may be to fully understand vulnerabilities. “Remember that the crown jewels of your business are not hidden behind a wall. You need to know where they are to protect them,” said Zuffoletti. “Your most valuable asset is your brand, and you need to think about how you protect your brand.”

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FI NA NC PR IE OF R IT S

FR TA OM XP AY PO ER CK ET S

CID

THE EUR EN TA L O PE A NC LY EN RIC ENTR AL HE DA BA NK NE ’S F W INA CL A NC SS IA OF AR L CRI BIT SIS RA RE GE SP UR ON S S

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SI M

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ajor economic problems are often answered in the form of a government response. However, those responses historically come hand-in-glove with unwanted side effects. The medicine doled out by one of the world’s central banks in response to the 2008–09 global financial crisis apparently caused just such side effects, according to new research from four academics, including Darden Professor Davide Tomio.  From 2015–17, the European Central Bank’s (ECB) policies distorted Europe’s bond market and effectively transferred hundreds of millions of dollars from taxpayers to financiers, according to the new paper titled “Central Bank-Driven Mispricing.” Worse still, the distortions reduced the market’s usefulness as a measure of the ECB’s policy effectiveness, the paper says. “[These findings] should concern central banks in particular, and policymakers in general,” the report states. A B O N D-B U Y I NG B I NG E

The ECB decided to buy bonds issued by governments that participated in Europe’s single currency area, the Eurozone. The idea was to hold down longterm borrowing costs and to jump-start the weak European economy.  Tomio and his fellow researchers studied the period of March 2015 through April 2017, when the ECB made monthly bond purchases of between €50 and €80 billion ($57 to $90 billion.) At the time, there were around €10 trillion ($13 trillion) of these securities outstanding in the market. So they could see if the policies altered the markets, the researchers also analyzed data from 2013 and 2014, the two years before the ECB’s bondbuying binge. H OW T HE P RO B L E M S CA ME T O PA S S

The researchers found that the bond market became so distorted that financial institutions could make money easily through trading between the futures market and the bond market.  Typically, bond interest rates should be moreor-less identical to those indicated by the futures contracts for the same bonds. When there is a significant difference, traders can sell a bond and buy a futures contract to make a risk-free profit. In an efficient market, such opportunities tend to be exceedingly rare or nonexistent. However, during the period of the ECB’s market efforts, there were larger-than-usual gaps between the interest rates in the two markets. These differences allowed “traders to profit from selling the more expensive security and contemporaneously perfectly hedging by buying the cheaper security,” the report states. Such trades, which were possible due to the ECB’s policies, were “tantamount to a direct transfer from taxpayers to arbitrageurs.” Arbitrageurs are a type of trader who profits from price differences across separate markets.

The researchers estimate that the total transfer of wealth to speculators was as high as €1.46 billion ($1.65 billion.) Tomio says it’s tricky to get an exact handle on how much money was transferred because the ECB doesn’t provide the necessary data. “It’s hard to know whether we are overestimating or underestimating,” he says. “What is certain is that the ECB paid simply too much for the securities.” MARKE T E FFE CTS OF THE CE NTRAL BANK BOND BUYIN G

The reasons the ECB’s policies caused these problems came from a variety of catalysts, direct and indirect. The bank’s bond buying caused a drop in liquidity “IT’S HARD TO KNOW because there were fewer bonds in the market. It WHETHER WE ARE was also harder for banks to borrow bonds, which typically helps maintain market liquidity. Less OVERESTIMATING OR liquid markets tend to be inefficient compared to UNDERESTIMATING. more liquid ones. WHAT IS CERTAIN IS Another side-effect of the reduced availability THAT THE EUROPEAN of government securities is that it was harder CENTRAL BANK PAID for banks to get the bonds for use as collateral SIMPLY TOO MUCH or to fund their loan operations. Both are vital FOR THE SECURITIES.” for lending institutions, and bond scarcity likely — Professor Davide Tomio stymied loan growth.  UNDE RMINING THE BANK’ S OW N INTE RE STS

$57–90 BILLION

of monthly bond purchases made by the European Central Bank from March 2015–April 2017 led to an estimated

$1.65 BILLION total transfer of wealth from taxpayers to speculators

The distortions caused by the ECB’s actions created two significant problems for the institution. First, the European central bankers use the financial markets as an indicator of how effectively their policies are working. When two markets don’t show the same interest rate (in this case, the futures markets and the bond market), it means the markets disagree on what the bank’s policy has achieved. “The market for interest rates should be informative for monetary policy to be effective, and it is in the policymakers’ interests that the market participants agree on what the ‘correct’ interest rate is,” the report states. Second, the wide difference between the prices of bonds and futures contracts gives speculators a license to print money for themselves in trades that have zero risk. In other words, by following the policies that distorted the markets, the ECB transferred wealth directly from Europe’s taxpayers to traders. Tomio and his co-authors specifically addressed the actions of the ECB in their research. However, Tomio says there are potential implications for the U.S. Federal Reserve, which conducted a similar bond-buying program in the U.S. markets.

SOURCE: “Central Bank-Driven Mispricing,” a Sustainable Architecture for Finance in Europe working paper by Professor Davide Tomio of the UVA Darden School, Loriana Pelizzon of Goethe University Frankfurt and Ca’ Foscari University of Venice, Marti Subrahmanyam of New York University’s Stern School of Business, and Jun Uno of Waseda University.

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THE DARDEN REPORT

‘BRAND CITIZENSHIP’

Consumer Expectations, Brands Taking Stands, Signal a Move Toward

hen the ridesharing company Lyft issued its IPO in March 2019, hitting the public market with a valuation in excess of $20 billion, the company sent an email to its enormous mailing list. The company didn’t crow about its projected growth, valuation or plans for a presumed high-tech, driverless future. Instead, beneath the subject line — “A public company invested in the public good” — the company detailed its commitment to its drivers, customers and the communities. The company claimed: “For once, the good thing, the right thing, the business thing, can be the same thing.” Platitudes? The new normal? Time will tell. What is clear is the role of the brand is as expansive as ever, as expectations for corporate responsibility continue to rise. A 2019 report by Global Strategy Group — one of many recent research reports reaching similar conclusions — shows clear expectations for companies to engage in issues beyond their bottom lines, with 92 percent of survey respondents declaring it important that companies take positions on issues that are in line with their values as a company. In her classes, Darden Professor Lalin Anik traces the recent history of the “brand promise,” during which consumer focus shifted from simply considering products and services to increasingly weighing a brand’s principles and values. Anik, a professor in the Marketing area, notes that the unspoken brand promise between consumer and company in the 20th century typically pertained to the experiences the consumer could expect to receive, most of which were aspirational. In the 21st century, the brand promise is more nuanced, and more complicated. “What we see today is a different version of this promise: Consumers not only want the brands to deliver value for them individually, but they ask brands to be accountable and make life better for others,” said Anik. “I am not confident that marketers would have predicted this shift a couple of decades ago.”

BY DAV E H E N D R I C K

TOWARD THE CONCEPT OF BRAND CITIZENSHIP Anne Bahr Thompson (MBA ’88) began to notice something funny in the consumer data in 2011. Conducting consumer research for her brand consultancy Onesixtyfourth’s annual trend study, Bahr Thompson asked a series of typical questions gauging consumer expectations for the future and sentiment around corporate actions, and the answers painted a stark portrait of consumer expectation. “What happened was completely surprising,” said Bahr Thompson, the former executive director of strategy and branding at the global brand consultancy Interbrand. “People told us that they wanted business to step in and fix the problems that government was no longer dealing with.” SUMMER 2019

The findings, which also showed that people are more inclined to support companies that show they have their customers and the community in mind when making decisions, set Bahr Thompson on a yearslong course of research that culminated in the 2017 publication of the book Do Good: Embracing Brand Citizenship to Fuel Both Purpose and Profit. “The idea of brand citizenship brings together two concepts that historically have sat apart,” said Bahr Thompson. “It embodies the notion that brands, which I think of as the human face of the business, should be active participants in a society. Brands are citizens that have a role and responsibilities beyond creating customer experiences and earning money for their owners.” Bahr Thompson distills brand citizenship, and what consumers said they expected from business, into five steps.

LIFE ON THE INSIDE OF A BRAND CITIZEN Joe Giallanella (MBA ’11) worked at the H.J. Heinz Co. after Darden, working his way up to brand manager of the company’s crown jewel: ketchup. Giallanella helped launch various flavored ketchups, expanded the organic line of sauces and worked on a Super Bowl ad. A great job, Giallanella said, but the product manager couldn’t help but think the company could be doing more than it was, particularly in the areas of health and wellness and by expanding the organic business. “I started recognizing, if priorities aren’t coming down from the top as key areas of focus, it’s going to be a little bit harder to turn that battleship,” said Giallanella. Giallanella began testing the job waters, keeping in mind lessons from Professors Ed Freeman — the world’s foremost authority on stakeholder theory — and Bobby Parmar on the difference between shareholder TRUST: Above all, people require and stakeholder value and how some businesses to deliver on their promises. organizations create value from a bottom-up ENRICHMENT: People demand approach, with the notion of taking care of that brands enhance their lives. employees, the supply chain and community “The idea of brand RESPONSIBILITY: Consumers as foundational to their approach. citizenship brings together expect brands to treat people fairly Through a job transition, Giallanella two concepts that and behave ethically. aligned his personal purpose with a corporate ethos at Seventh Generation, the Vermonthistorically have sat apart. COMMUNITY: Brands can rally based cleaning and paper goods company community in a fractured world, and It embodies the notion that is a founding B Corp, a business that consumers choose to be connected that brands, which I think meets a verified standard of social and through their consumer choices. environmental purpose, public transparency of as the human face CONTRIBUTION: People and legal accountability. of the business, should have a strong bias for buying from Giallanella joined the company in 2015 companies that fulfill pledges to make be active participants to lead its personal care business. Today, a difference in their community and he serves as senior brand manager for the in a society. Brands world. If a brand is improving life on company’s growth incubator. Part of his are citizens that have a the planet, it is thereby enriching the charge is to “democratize” and expand life of its consumer. role and responsibilities products that have largely been consumed by an affluent demographic. For instance, The brands getting this right and beyond creating customer Giallanella has expanded the reach of the speaking to what consumers are clamoring experiences and earning brand by leading the launch of cleaning for, operate the length of what Bahr money for their owners.” products into professional spaces to benefit Thompson calls the Me to We continuum, the health of custodial workforces. delivering value to an individual while also — Anne Bahr Thompson (MBA ’88) Giallanella must also envision what delivering value to society. Seventh Generation’s business looks like Bahr Thompson didn’t set out to coin tomorrow, including asking questions a phrase or document a movement. The about new products: Does it help the company achieve its goal of pillars came up from the mouths of consumers, she said, and if being zero waste by 2025? Can all the packaging be recycled or they seem evident, it may be because the sentiments have been composted? Does it provide value to the consumer while improving mainstreamed in recent years. When Laurence Fink, CEO of the overall community? BlackRock, the world’s largest investor with roughly $6 billion And, when it comes to actually selling the product, can it assets under management, issued an investor’s letter saying truthfully convey the weight of the brand’s intentions to the companies had a responsibility to embrace a higher purpose and customer? help solve the world’s problems, it created headlines, but it wasn’t “It’s more about creating a conversation with consumers, shocking. demonstrating why it’s right for them and why it’s right for society “It absolutely has come to the surface, and the spotlight will shine on how companies are doing good more and more,” said Bahr as well,” said Giallanella. “How do you demonstrate, as authentically as possible, the purpose of your brand and the mission behind the Thompson. “We have people demanding CEOs take stands and brand?” engage employees through purpose more and more.” The company’s name is intended to suggest that every decision 24

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Professor Kimberly Whitler Believes Chinese Companies Are Rewriting the Rules for Marketing

Joe Giallanella (MBA ’11) worked as a brand manager at Heinz and now works for Vermont-based Seventh Generation.

it makes considers the impact on the next seven generations. Giallanella says its part of the company’s brand and marketing and is also an authentic sentiment. “We truly are a triple bottom-line company. Yes, we need to make profit but that isn’t the sole focus of the organization,” said Giallanella. “Our mission is really to transform the world into a healthier, more sustainable and equitable place for all.” The massive, multinational, publicly traded corporation Unilever recently acquired Seventh Generation, and Bahr Thompson believes similar acquisitions will continue. She says large corporations are indeed learning from smaller entities, but stresses that doing good and being truly purpose-driven is not one-size-fits-all. While B Corps show the trend in greatest relief, a range of diverse companies show elements of being good brand citizens, from Google to Trader Joe’s to IKEA.

DARDEN’S OPPORTUNITY As consumers, employees and companies embrace an era of greater corporate responsibility, the Darden School’s opportunity to drive the conversation around and growth of brand citizenship is immense. The School’s foundation in ethical instruction — Darden was the first major business School to make ethics a required core course — is well-documented. Ethics and responsible action inform courses throughout the curriculum, and Darden research centers like the Institute for Business in Society create avenues for positive business impact through the School and the world. One tangible sign of the School’s efforts: In early 2019, Darden was ranked the No. 1 MBA program in the world for corporate social responsibility by Financial Times. Anik said she sees the commitment to corporate responsibility in her students in a variety ways, ranging from how they evaluate businesses in classroom discussions to the companies they choose to work for after school. “It used to be that these values and expectations would surface predominantly in the ethics classes,” said Anik. “Yet now, students question whether companies are driven by and deliver on the right purpose and values in all their classes.” For Giallanella, a strong commitment to doing what’s right keeps him motivated at work in a way that working for a company without a triple-bottom line pursuit never could. “There is a different way, and we are trying to prove this is the better way,” said Giallanella. “Having a strong mission tied to what we are doing and a different mindset about what business can be — using business as a tool for good — is certainly something that motivates me.”

Western marketing approaches have long been treated as universal. Theory and best practices have largely been created by western marketers, identified by western academics and codified by western authors. From text books to managerial books, the way to build brands and market has largely been viewed through a western marketing lens that has simply been adapted to local market conditions. But what if some markets are developed in such a different manner that consumer beliefs, habits and practices significantly differ? Is it possible that not all marketing theory and best practices are universal? Darden Professor Kimberly Whitler, who has worked on global business and traveled in China as both a general management marketer and researcher, reported on the shifting landscape in the May-June issue of Harvard Business Review in the article “What Western Marketers Can Learn From China.” Here, she shares key insights from the article.

4 Key Factors Converging to Make China an Unprecedented New Marketing Frontier • Channel-Straddling Media Giants — Led by Baidu, Alibaba and Tencent, a wave of homegrown conglomerates reach Chinese consumers in countless ways, with a single company often delivering consumers the news, banking, gaming, video and sports. • A World of Closed-Loop Data — Given nearly unbroken engagement with platforms owned by a single company, the new media giants often know exactly how consumers spend their time. This closed loop has huge implications for how a company tailors its marketing to individuals. • A Mobile-First Market Development — Given the primacy of the mobile device for Chinese consumers, Chinese marketers start from a place of creating marketing content that will be engaged with and shared. • Speed — Marketers in China prize speed and growth, while western firms emphasize scale and efficiency. The pace of native companies has significant implications for local units of western firms. Whitler says companies must develop relationships with China’s new media gatekeepers, especially the “big three.” They must commit to a mobile-first mindset and to a social, viral approach. Companies also must figure out true cross-platform integration and consider whether planning is coming at the expense of speed. While marketing theory and practice have largely been created in the West and exported to the East, it may be time for a reversal. Those open to truly learning from a dynamic new culture may be best positioned for long-term success, Whitler says.

Coming soon: Darden will launch a new microsite on WeChat for the Chinese audience. SUMMER 2019

FROM FIELD TO CLASSROOM Accounting Expert Justin Hopkins’ Early Experience in the Peace Corps Foreshadowed a Future Role Orchestrating Darden’s Case Method

THE DARDEN REPORT

BY DAVE HENDRICK PHOTO: MATT EICH

FA C U LT Y P R O F I L E JUSTIN HOPKINS

“It becomes more of a two-way relationship in which you are learning a lot from them and, at the same time, you are showing them a whole new side of thinking and understanding that they have probably never been exposed to,” said Hopkins.

Measuring Risks and Reactions to Financial Misdeeds ustin Hopkins wanted to be a professor for as long as he can remember. He loved reading, discussing big ideas and the university environment. But to be the kind of professor he envisioned, the accounting expert also knew he needed to gain some worldly professional experience before pursuing the dream in earnest. “My goal was to hold a variety of different jobs,” said Hopkins, a professor in Darden’s Accounting area. “Public sector, private sector, internal and external auditing. So that’s what I did.” First up after college: the Peace Corps, where his primary job was to teach rice farmers in the Dominican Republic how to use accounting information to make better informed decisions about their livelihood. “Farmers would take loans in the fall to buy seeds and plant crops and fertilize them, and when the harvest happens in the spring, they would pay back their loans,” said Hopkins. “The goal was to get these farmers to be sustainable so they didn’t need the loans anymore.” Hopkins said he knew little about the Dominican Republic and nothing about rice farming, and was cognizant of avoiding the role of the outsider with all of the answers. “It’s an intimidating thing because you’ve got no idea what their life is like,” said Hopkins. “But once you’ve lived next to them, gone to their birthday parties and their funerals, and helped them plant and fertilize, you get a feel for their lives and their needs.” Hopkins said he realized his job wasn’t to teach people how to do a better job of planting rice, or even how to run their business. Rather, he introduced them to a new set of tools and potentially useful skills, enabling, rather than directing, their approach to financial aspects of their business.

After the Peace Corps, Hopkins sought a variety of accounting experiences, working with Ernst & Young in public accounting, auditing several SEC registrants in a variety of sectors and developing what would be a long-running interest in financial reporting. “As an auditor, you’re hired by a company to audit them, but at same time you’re supposed to oversee and monitor their financial reporting process and opine on their internal controls and the validity of their financial statements,” said Hopkins. “That was a very interesting dynamic to see.” With experience in various aspects of

Hopkins has largely continued down the path of exploring the interaction between legal risk and how laws and regulations affect decision-making. A recent paper co-authored by Hopkins, “Revealing Corporate Financial Misreporting,” looked at companies that materially misstated earnings due to stock options backdating, how few ended up actually restating earnings and why. The authors suggest the findings could have implications for penalizing firms that restate earnings, noting the perverse incentives for companies to refrain from restating, lest they open themselves up to a raft of penalties and litigation.

Connecting Across UVA Hopkins has used connections with colleagues at UVA Law to organize a corporate counsel roundtable, seeking to understand the pressure points and issues facing legal compliance officers at a variety of firms.

A recent paper co-authored by Hopkins, “Revealing Corporate Financial Misreporting,” looked at companies that materially misstated earnings due to stock options backdating, how few ended up actually restating earnings and why. his field, Hopkins put his full attention toward pursuing his academic ambitions, earning a Ph.D. in accounting from the Kenan-Flagler Business School at the University of North Carolina at Chapel Hill. Beginning a theme that would carry over into his career at Darden, Hopkins wrote his thesis on securities class-action suits and financial misreporting, seeking to determine whether the threat of shareholder litigation affects management behavior, especially in the financial reporting context. “I looked at a court opinion that was unexpected and radically changed the threat of litigation for a small subset of firms. I looked at those financial reports before and after the ruling and saw a lot more misreporting after the reduction of litigation risk,” Hopkins said. “It does appear from the data that when litigation risk decreases, the threat of misreporting increases.”

“One of the things I really like about UVA is we have opportunities to interact with people who are in the trenches facing these matters,” said Hopkins. “I take that information, and I build research. I translate that into cases and pass that on to students. It’s a whole process, and I really think that’s the way that scholarship should work.” Returning to the Peace Corps analogy, Hopkins said he doesn’t go into a Darden classroom assuming he knows what information the students need. Initially, at least, he doesn’t know their personal stories or motivations or what they hope to get from an accounting course. Instead, he tries to introduce them to a few tools they may find useful along their professional journeys. “I try to figure out what skills they need, what decisions they are making and what I can do to help get them there,” Hopkins said. SUMMER 2019

Alumni on Career Transitions Darden’s 16,000-plus alumni make their mark as leaders in many companies across multiple industries during their careers, from the world’s largest corporations to early stage startups. Here’s a spotlight of several Darden alumni who recently shared their experiences managing career transitions.

Rea d m or e a t NEWS.DARDEN.VIRGINIA.EDU

From US Consultant to Family Business in India Akansha Jain (MBA ’15) secured a highly desired consulting position with Everest Group in Dallas for her first post-Darden job. But the call of returning to her family business in India proved too great, and she returned to her home country — not without challenges, though. After overcoming initial resistance to her leadership position in the company, Jain offered this advice for other female leaders in business: “Be fierce and go for what you are aiming for. It is good to be aware about the challenges that you might face, but I do not think it changes how you have to conduct yourself. When we have the power, we have the responsibility to exemplify better work places, even if those work places were not perfect when we found them.”

THE DARDEN REPORT

Nasdaq IPO Powers Search for Cure to Alcohol Addiction Adial Pharmaceuticals CEO William Stilley (MBA ’97) recalls one area he scratched off his list of potential careers as a Darden student: life sciences. Too technical, too complex, he thought. Fast forward a couple of decades, and Stilley was ringing the opening bell on the Nasdaq in celebration of the IPO of Charlottesville-based Adial, his latest stop in a career devoted largely to life sciences. “I did say that back in school in 1997,” Stilley said of his career pledge. “Of course, here I am.” The July 2018 IPO — the first IPO of a company based on technology invented at UVA — raised roughly $7.32 million, funding that will be used to support the company’s Phase 3 trial of AD04, a tablet that has shown a promising ability to treat alcohol use disorder by reducing the craving for alcohol for those with a specific genetic makeup.

C-Suite to C-Suite at Two Corporate Giants Scott Price (MBA/MA ’90) left one of the top posts at Walmart to join another Fortune 100 company, UPS, as its chief strategy and transformation officer. After a visit to Darden to lecture in Professor June West’s “Leadership Communication During Times of Disruption and Transformation” course, Price described on his LinkedIn account how he’s grown to value his Darden lessons on communications and organizational behavior as his career has progressed: “I’ve had the opportunity to help shape our strategy and a sweeping transformation initiative that’s touching every part of our business — from leadership and culture to our operations, processes and the way we go to market. But as you ascend the senior ranks, I’ve found that you spend more time leading and developing your team — and then communicating the strategy — so that everyone buys in to the mission.”

SUMMER 2019

For m o r e p h o t o s , v i s i t Darden on Fl i ckr : f l i ckr. com / photos/ darden-uv a

REUNION WE E KEND 26 –28 APRIL 2019 Abbott Society 1959 1964 1969 1974 1979 1984 1989 1994 1999 2004 2009 2014 2018

THE DARDEN REPORT

CH A RLES C. A BBOT T AWA RD

Pictured from left: Darden School Foundation President Michael Woodfolk (TEP ’05), Darden School Foundation Board of Trustees Chair Elizabeth Weymouth (MBA ’94), Mike O’Neill (MBA ’74) and Dean Scott Beardsley

Former Citi Chairman Mike O’Neill (MBA ’74) Honored With Abbott Award Alumnus Mike O’Neill (MBA ’74) was honored with the 2019 Charles C. Abbott Award during his 45th reunion celebration at Darden. The award, which is presented by the Darden Alumni Association Board of Directors, is considered the highest alumni honor presented by the School and recognizes a graduate who demonstrates an exceptional contribution of time, energy and talent to the School. O’Neill, a longtime leader in the financial services industry who recently retired as chairman of the board of Citigroup, is a longstanding member of the Darden School Foundation Board of Trustees, a member of the Principal Donors Society and has remained engaged with Darden through a number of capacities, including as a guest lecturer. In 2017, O’Neill established the O’Neill Marine Scholarship Fund, providing scholarships to First Year students who are members or veterans of the U.S. Marine Corps or Marine Corps Reserves. Accepting the award, O’Neill said he was “flattered and honored” by the recognition. “Still today, I encounter things in business that hearken back to classes and cases I had before,” O’Neill said. “For me, it was truly transformational, and it truly made a difference in my life.”

SUMMER 2019

ALUMNI PROFILE

SAM HOLLENSHEAD

ROGER WERNER (MBA ’77)

The Man Behind ‘The Network’ In the early 1980s, ESPN — then just a few years old — was looking for some leverage over big networks like ABC, CBS and NBC, and college basketball caught its corporate eye. CBS owned the rights to the Final Four — as it does today — but Roger Werner (MBA ’77) and his fellow ESPN executives realized that few were paying attention to the earlier rounds of the NCAA Tournament, the conference championships or important regular season games. Enter “The Network.” The young Entertainment and Sports Programming Network started snapping up early tournament games and conference finals and began hyping regular-season games — shining a national spotlight on stars like UVA’s Ralph Sampson. The efforts worked. ESPN continued to rapidly increase its coverage of regular-season and postseason basketball, and ballooned into the powerhouse it is today. Werner joined ESPN as COO in 1982 following a post-Darden stint at McKinsey & Co. and served as president and CEO from 1988 to 1990. Even bigger than his success growing the network’s college basketball coverage, he pioneered the development of the two-pronged revenue model that allowed the network to make money from both cable companies and advertisers, setting up what would become the go-to business model for cable television.

“When the cable network industry started to develop in the late 1970s, most cable network services were presumed free to the cable distributor. To make our business work, we needed to invert that model and charge distributors a subscription fee for the right to carry ESPN,” Werner said. “We ended up with a two-revenue stream model, with both subscription fees from the cable companies and advertising revenue. It ultimately became the industry standard as special interest channels like MTV, CNN, Turner, Discovery and others adopted.” After ESPN, Werner founded and led several other sports networks and now serves as a director and consultant to the Motor Trend Group, which includes a large portfolio of television shows, apps, websites and other media. And in the current era of rapid technology innovation, Werner has kept a keen eye on the disruption occurring to the cable television model he helped create. “It has held up very well until recent years. Today, the cable industry is losing subscribers to IPTV [internet protocol television],” Werner said. “Cable operators are under new pressure to not raise consumer fees, and are understandably focused on providing internet services and looking at direct-to-consumer service, as well. That is significantly changing the two-revenue stream model we pioneered.” — Caroline Newman

ALUMNI PROFILE

LIZ LYNCH (MBA ’84)

Leadership: It Runs in the Family While she didn’t realize it at the time, looking back, Liz Lynch (MBA ’84) says Darden set her on a path for leadership opportunities. Having spent two years as an investment banking analyst, Lynch came to Darden with her fiancé and was a leader waiting to flourish. Following her two years at the School, she embarked on a 22year career with Morgan Stanley — the first 11 as an investment banker before serving as global head of human resources and then global chief operating officer for the Equity Research business. As she progressed, Lynch was increasingly asked to create and drive a vision while managing and motivating a team. Motherhood called upon some of the same skills honed at Darden that Lynch used in her career, including efficiency and prioritization. “I have been a working mother for 30 years, and the demands on my time, not to mention the emotional ups and downs, make for a stress level that I have always had to manage. Darden taught me how to think about time and how to maximize on many fronts all at the same time. Darden was the beginning of my learning how to take care of what is most important to me and to my family, while finding a way to manage my own as well as others’ expectations of me.” With her husband graduating in the same class, their daughter a member of the Class of 2017 and their son a rising Second

Year, Lynch has additional reference points for the power of the Darden experience. Each family member’s Darden trajectory is personal and individual, Lynch says, but there are consistent themes around perspective, acumen and the strengths that rise from Darden’s purposefully intense learning experience. “At Darden, you assess yourself at every turn. In having such an intense experience, both academically and personally, it transforms you both as a person and through skill development. The experiences of our family members span almost 40 years, and each one is a very powerful, life-changing one!” At the center of the experience, Lynch says, are the Darden faculty members who serve as the cultural heart of the School. “The faculty is excellent and so very committed. And, I would argue, more student-focused than at any other MBA program. It is these factors that differentiate Darden and help create its competitive edge.” For Lynch, her leadership continues to benefit the finance industry and the Darden School. She currently serves as the senior managing director and head of the Human Capital Group at Evercore, one of the world’s fastest-growing independent investment banking advisory firms. She is also a trustee for the Darden School Foundation and a vice chair for Darden’s upcoming Powered by Purpose campaign. — Margaret Y. Hancock

ALUMNI PROFILE

VALERIE CAMILLO (MBA ’00)

From the NBA to MLB to NHL: A Darden Pro Helps Top Sports Franchises Outperform Valerie Camillo’s (MBA ’00) rapid rise in the sports world, with leadership positions in the National Basketball Association (NBA), Major League Baseball (MLB) and now the National Hockey League (NHL) in the span of a decade, has been due in part to her ability to bring innovation to a tradition-bound industry. A double Hoo and lifelong sports enthusiast, Camillo, now president of business operations for the Philadelphia Flyers and the Wells Fargo Center, long dreamed of a job in the industry but couldn’t find a pathway. “Sports teams couldn’t project my skill set into one of their existing roles,” said Camillo, who grew up in Northern Virginia and holds an undergraduate degree from the McIntire School of Commerce. “At my level, team sports executives were mostly experienced sales and marketing professionals — not business strategists or analysts.” Then, fortuitously, teams’ emerging needs began to match her background. Camillo recalled receiving an unexpected call from Chris Granger, who was running the NBA’s internal consulting division. Teams were trying to become more data-informed and analytical in their decision-making, and there might finally be a role for her in the industry. Was she interested? Camillo got her break. She worked for the NBA’s Team Marketing and Business Operations group for nearly four years. The position led to a more senior role with the Washington Nationals, where Camillo was responsible for all revenue and marketing for

one of professional sports’ most visible franchises. After five years with the Nationals, Camillo accepted her biggest role yet, taking charge of all business operations for the Flyers and their arena. Camillo described her responsibilities as “end to end,” including ticketing, food and beverage, and retail operations; corporate partnerships; and broadcast relationships. “It’s an awesome opportunity, and it’s a whole lot of fun, too,” said Camillo, who also oversees the $250 million renovation of the arena. “In this industry, it can be kind of taboo to be perceived as a fan, but you have these moments, whether it’s standing on the sidelines at the Super Bowl, or a major concert comes through and you get to meet a childhood idol like Bruce Springsteen, or you’re in the clubhouse when your team clinches a playoff berth and you’re getting drenched in champagne. These unbelievable moments happen,” said Camillo. “And every one of us goes back in our minds to that little kid we once were, that sports fan, and for that instant, you can’t help but feel incredibly blessed.” Camillo’s success in the sports world came about because someone took a chance on her. For other women to follow in her footsteps, there needs to be multiple, more formalized paths available, she says. It’s important that women can see themselves at every rung of the ladder within organizations, Camillo said. There are a lot of great jobs in professional sports — many of which would benefit from diverse perspectives — and the field can be uniquely rewarding. — Dave Hendrick

THE DARDEN REPORT

irginia

To update your contact information, call +1-434-243-8977 or email alumni@darden.virginia.edu.

The River

625 acres on the Rapidan River between Orange and Fredericksburg. $2,991,000

Quarles Road

Timberpeg home on 33 acres along the Rivanna river mins from Charlottesville. $1,150,000

The Rock House

Eclectic and one of a kind, updates include geothermal HVAC and a great kitchen. Complete privacy on 8+ acres in Orange. $665,000.

The Meeting Place

12,000 + s.f. for B&B or resort with 16 + acres along the Brew Ridge trail near Wintergreen. $1,975,000

Jos. T.

Cowherd Mtn. Farm

In a private valley near Somerset and James Madisonâ&#x20AC;&#x2122;s Montpelier 231.68 acres $1,785,000

Williston Late 19th century Italianate on the Natâ&#x20AC;&#x2122;l Register with 28 + acres in Orange. $875,000

Rock Creek Farm

162 acres of fertile pasture & mature forest with beautiful views of the Blue Ridge &Southwest Mountains in Green County $1,300,000

Chester

Mid 19th century manor on 6 + acres now a B&B but suitable for a country manor. REDUCED: $785,000

SAMUELS Over 100 Years Of Virginia Real Estate Service

Charlottesville, VA u www.jtsamuels.com u (434) 295-8540

SUMMER 2019

401 Park Street Charlottesville, VA 22902

434.977.4005 lwoodriff@loringwoodriff.com

DRAMATIC YET WELCOMING IN FARMINGTON

320 FARMINGTON DRIVE $5,495,000 Located at the quiet end of Farmington Drive & fronting the 17th fairway is this classic, c. 1953 Milton Grigg residence. The current owners have expanded the original brick home so that the floor plan balances entertaining with casual modern living. The kitchen is open to 2 sitting/family room areas & a dramatic, vaulted dining room. Other additions made in 2011 include a home office or pool house with full bath & 3-car garage with large studio apartment above. MLS# 585422

ON 24 ACR ES MOMENTS TO TOW N

1720 AMBROSE COMMONS DRIVE • $1,469,000 Sited on an elevated parcel with panoramic views is this dazzling custom built by Peak in 2016. Sunny apt over the 3-car garage. Wonderful natural light enhances striking finishes at every turn. Outdoor fireplace, flagstone terrace, sand area with play structure, chicken coop & 10+ acres of mature hardwoods. MLS# 588334

CLASSIC 5 BEDROOM WITH VIEWS

MANICURED 120 ACRES 5 MINS TO TOWN

360 VIEWS - RENOVATED COTTAGE - W. ALBEMARLE

515 ROCKS FARM DRIVE • $1,519,000 This Baird Snyder-constructed home offers Blue Ridge views in coveted Western Albemarle mins from UVA & Downtown. Understated yet sophisticated interior design incl’ tasteful, on-point stone, tile & paint color selections. Screened porch off family rm & 1st flr master suite overlooks private garden & expansive, level lawn. MLS# 588820

ROUND HILL FARM • $5,900,000 Stately c. 1940 brick residence shaded by massive hardwoods & sited magnificently to enjoy Blue Ridge views. Pristine 120 acre country property with extensive frontage on the Rivanna Reservoir only 5 minutes to conveniences & under 10 to UVA & Downtown. Pool overlooking the views, gardens. MLS# 572196

7284 BLACKWELLS HOLLOW ROAD • $1,400,000 Gorgeous 360 mountain views on 109 acres of rolling, open land w/ pasture, hay fields, & 5 streams fed by underground springs & from the adjoining Shenandoah National Park. Completely restored 2 BR cottage, add’l outbldgs. Horse & walking trails. 25 mins to Charlottesville. Marcela Foshay (540) 314-6550. MLS# 582532

23 ACRES IN FREE UNION HUNT COUNTRY

COVETED UNIVERSITY LOCATION

CUSTOM CONTEMPORARY WITH INDOOR POOL

2437 CHAPEL SPRING LANE • $1,595,000 Set in absolute tranquility and privacy yet with panoramic Blue Ridge views, this dramatic Georgian has been updated and expanded brilliantly. Russell Skinner designed the stunning great room addition & Charles Stick, the arresting landscape design. 2 large covered porches. Formal gardens, tennis court. MLS# 567008

1888 WESTVIEW ROAD • $1,565,000 Character-rich, light-drenched home at the end of a quiet, dead-end street in the Venable school district. Screened porch, covered front porch and private, rear bluestone patio provide abundant outdoor living space. Gourmet chef ’s kitchen with commercial 6-burner range. Reidar Stiernstrand (434) 284-3005. MLS# 587531

906 FENDALL TERRACE • $1,675,000 One-of-a-kind Jay Dalgliesh-designed custom contemporary on a private acre in one of Cville’s favorite University neighborhoods. 4000+ sf open floor plan w/ soaring ceilings, natural light, 2-level covered porches, oversized garage, elevator & indoor heated pool. Joan Jay (434) 906-1806 or Inessa Telefus (434) 989-1559. MLS# 585390

18TH CENTURY CHARM ON 3 ACRES IN OLD IVY

699 IVY DEPOT ROAD • $925,000 Tucked away amongst other character-rich homes in the Murray School district, this c. 1790, 3 bedroom home & charming guest cottage sit on 3.2 acres dotted w/ mature native specimens. Ivy Creek meanders along the rear property line. Adj. properties in the $2$3M range speak to this property’s endless potential. MLS# 588543

121 BLOOMFIELD ROAD $2,595,000

COVETED IVY ADDRESS & SENSATIONAL VIEWS

Sited on 21 acres to enjoy stunning mountain views, this distinguished yet welcoming brick home is located in the Western school district w/ fast access to Charlottesville. 11 ft ceilings & natural light from French doors & floor-to-ceiling windows enhance 1st floor living & entertaining spaces. Adj. acreage & views permanently protected by conservation easements. Add’l attributes incl’ 3-car garage, herringbone brick porches & walkways, rear terrace & screened porch, 3 fireplaces. MLS# 587603

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To update your contact information, call +1-434-243-8977 or email alumni@darden.virginia.edu.

401 Park Street Charlottesville, VA 22902

434.977.4005 lwoodriff@loringwoodriff.com

DRAMATIC & PRIVATE FARMINGTON RESIDENCE

680 IVY LANE $2,950,000 This refined 1-level Farmington residence combines dramatic entertaining spaces with intimate casual living spaces. No expense was spared when this home was custom built in 1998, from custom milled siding to 14 ft coffered ceilings in the living room, to oversized Mahogany doors & antique marble fireplaces. The private 2 acre parcel is dotted with extraordinary specimens & expansive outdoor living spaces. Wonderful apartment above 2-car garage. Reidar Stiernstrand (434) 284-3005. MLS# 586393

STUNNING FREE UNION PARCEL - REDUCED

1 NW WESLEY CHAPEL ROAD • $1,645,000 47 acres of open, gently rolling fields are embraced by staggering Blue Ridge views, bordered by privacy-enhancing woodlands, and traversed by a year-round stream. Under conservation easement with no further divisions. An opportunity to create a jaw dropping country estate 15 minutes to town via paved roads. MLS# 582710

CHARMING BELLAIR MID-CENTURY CLASSIC

FREE UNION HORSE PROPERTY WITH VIEWS

TUCK ED AWAY OFF RUGBY ROAD

41 CANTERBURY ROAD • $1,250,000 Magical setting on 1.7 private acres. French Country Style Home bursting w/ character & original details! 1st floor master w/ dressing room & 2 full baths. Fabulous gunite pool & patios overlooking gardens & sunny lawn. Punkie Feil (434) 9625222 or Elizabeth Matthews (434) 284-2105. MLS# 587699

5789 FREE UNION ROAD • $1,095,000 An ideal contemporary on 17.6 park-like acres in Free Union and Farmington Hunt Country. Spectacular vineyard and mountain views. Fabulous 1-level living with addition by Greer & Associates. High ceilings, hardwood floors. 5-6 Paddocks, updated 8-stall barn. Liz Raney (434) 242-3889. MLS# 586030

1861 FIELD ROAD • $1,150,000 Immaculate university home in the Venable School District! Fantastic kitchen w/ high-end appliances & seeded glass cabinetry. New wing features office w/ built-in desk & shelves. 2 Master Suites, 1 w/ wet bar & both open to roof deck. Basement w/ rec rm, fireplace, bath & office. 3-car garage. Kristin Streed (434) 409-5619. MLS# 585604

36 ACRES BORDERING THE MECHUMS RIVER

IDEAL FLOOR PLAN 5 MINS WEST OF TOWN

R EMODELED DOW NTOW N GEM

6008 MIDWAY ROAD • $1,190,000 Classic 1800’s Farm House in the heart of Crozet. Southwest mountain views, picturesque fields, bridle trails & walking paths. Family rm w/ coffered ceiling, sky lights, heart pine floors & beams was designed & built by Barry Easter. Punkie Feil (434) 9625222 or Elizabeth Feil Matthews (434) 284-2105. MLS# 585490

1255 INGLECRESS DRIVE • $1,279,000 Tucked off a quiet cul de sac, this stone & stucco home w/ copper roof offers plenty of level lawn & privacy. Light-drenched, eat-in kitchen opens to large deck. Terrace level incl’ private office w/ maple builtins, guest suite, theater room, wine cellar & amazing bar. 1st floor master. Ivy Creek traverses the back of the 3 acres. MLS# 582614

501 LEXINGTON AVENUE • $1,195,000 Elegant Downtown home filled w/ sunshine & warmth. Spacious bonus room w/ full bath off the gourmet eat-in kitchen. Stunning master w/ walk-in closet & ensuite w/ shower, soaking tub, his & her sinks. Outdoor entertaining space, stone patio w/ fireplace & fenced yard. Marcela Foshay (540) 314-6550. MLS# 588148

IMMACULATE 157 ACRES WITH STRONG VIEWS

3396 FOX MOUNTAIN ROAD • $2,195,000 Residence reconstructed of c. 1800 materials on stunning homesite: high ceilings, wide plank pine floors, antique mantels, wainscoting abound and enhanced with additional guest suites, modern systems. Remarkable barn and log guest cabin. Absolute privacy with sweeping Blue Ridge views. MLS# 581764

2340 HOMESTEAD FARM ROAD $1,745,000

VIEWS & ENDLESS ECO-FRIENDLY FEATURES

5 bed, 4.5 bath home on 5 acres in the MeriwetherLewis district boasts Pearl Gold Certification w/ Geothermal HVAC, solar panels & other environmentally sensitive features. Wonderful Blue Ridge views from front porch, rear bluestone terrace & screened porch. Noteworthy attributes incl’ 1st/2nd flr masters, 3-car garage w/ charging stations, raised bed garden & addition by Alexander Nicholson. In the Burruss Branch neighborhood, 15 mins west of Barracks Road conveniences. MLS# 587025

SUMMER 2019

WWW.LORINGWOODRIFF.COM

◆ EDGEMONT ◆

Nestled in the foothills of the Blue Ridge Mountains is this Palladian inspired masterpiece called Edgemont. Surrounded by 572 acres of rolling Virginia farmland, with the Hardware River running through the lush fields, is a home whose design is reputed to be the only complete remaining private residence attributed to Thomas Jefferson. Great location just 25 minutes south of Charlottesville. MLS#576150 www.HistoricEdgemont.com

MOUNT SHARON ◆ $18,500,000

Brilliantly sited on second highest point in Orange County lies one of Virginia’s most magnificent historic estates showcasing panoramic views of the Blue Ridge and Coastal Plain. 560+ acres with c. 1937 brick residence, world-renowned gardens, farm improvements and dependencies. MLS#577900 www.MountSharonVa.com

CABIN AT TURTLE CREEK ◆ $4,475,000

Beautiful country home set on 39.6 acres at the foot of the Blue Ridge. The main house includes formal and informal living rooms, library, and spacious master suite. Grounds feature beautiful gardens, pond and panoramic mountain views. Property includes a c. 1790 cabin which has been meticulously restored into a 1-BR guest house. MLS#587914

◆ EMERALD HILL ◆

Luxurious 140-acre estate property located within minutes of the University of Virginia and 9 minutes to airport. Dramatic entry leads to 60 room brick manor home, Palladian in style, offering superior quality and details throughout. This magnificent estate property includes multiple residences, pool, formal gardens, brick walkways, pavilion, tennis court, barn and several ponds. www.EmeraldHillVa.com

◆ LEWIS MOUNTAIN ◆

Circa 1900 National Historic Register home is situated on the most visible and spectacular 42-acre knoll in Central Virginia and offers a 360 degree view overlooking the UVA, City of Charlottesville and the Blue Ridge Mountains as far as the eye can see. Stone manor home with pool, carriage house and guest cottage. www.LewisMountainVa.com

◆ NORTH WALES FARM ◆

Historic, 1,471± acre Virginia estate with c. 1776 stone manor home, 2-story Georgian Revival-style stone carriage house, extensive farm and equestrian improvements, a guesthouse, additional residences & shooting preserve. All improvements have been carefully restored and placed on the Historical Register. MLS#587418 www.NorthWalesVa.com

WWW.MCLEANFAULCONER.COM

WATERFRONT HOME ◆ $1,895,000

Rare opportunity to own a spectacular 5,000± sf home on 18+ acres with extensive frontage on the Rivanna Reservoir. Tranquil, private setting yet located within minutes to town and the airport. Gorgeous rear patio area with pergola and a guest cottage overlooks the pool, reservoir and expansive lawn. www.TuckahoeFarmVa.com MLS#585560

BLOOMFIELD ROAD ◆ $2,495,000

Beautifully renovated, 4,000 square foot, onelevel home in desirable close-in neighborhood only minutes west of town. Sited on over 18 acres with pool, barn and garage. Open land for horses and other animals. Under Virginia Outdoors Foundation conservation easement with the possibility to build a second home. MLS#583224

503 Faulconer Drive Charlottesville, VA 22903 434.295.1131 homes@mcleanfaulconer.com

MCLEAN FAULCONER INC. Farm, Estate and Residential Brokers BRAMBLEWOOD

ARCOURT ◆ $2,345,000

Long after other homes have crumbled, the stone walls of ARCOURT will remain-a testament to the superb quality construction used to create this one-of-a-kind French-inspired estate on 22 acres in Keswick Hunt Country, Completely fenced for horses, 3-stall stable, guest quarters. Beautiful mountain and pastoral views. MLS#588398

THE GLEN ◆ $3,695,000

400 acre country estate in private pastoral valley next to Blue Ridge Mountains in Madison County, VA. Circa 1899, 5 bedroom farmhouse completely renovated and enlarged, all up-todate systems and fixtures, but retaining character. Superb property, beautiful views, low maintenance. MLS#585345

Stunning, 522-acre private sanctuary in the Southwest Mountains and heart of Keswick—a renowned estate area just east of Charlottesville. Property features: impressive grounds, farm and manor home built circa 2008 with the highest quality craftsmanship and unique materials, with great attention paid to every detail. Over 14,000 finished square feet of elegant living space, with two other large homes and a barn. MLS#586571 For full details, visit: www.BramblewoodVa.com

IVY AREA ◆ $1,480,000

Exceptional, European-style manor home of 6,500 square feet with a guest cottage with conference room, and a 3-bay garage with upstairs office, on a 22-acre private and elevated setting boasting panoramic Blue Ridge views, river frontage, and a large pond. Only 10 miles out from Charlottesville. MLS#588270

WALNUT HILLS ◆ $3,900,000

Georgian Revival mansion built in 1878 by VA Governor James Kempe on 373 acres with guest cottage and a complement of farm buildings. Has 6 bedrooms, 4.5 baths, and 9 fireplaces. The estate offers panoramic views of the Blue Ridge Mountains in a private setting 3 miles from the town of Orange. MLS#574009

GARTH ROAD ESTATE $2,495,000

First time on market, magnificent brick Georgian residence, with copper roof, over 5,400 finished square feet, superb quality details throughout, expert craftsmanship offering gracious lifestyle on 21 acres in quiet pastoral setting, just 5 miles from town. Features include: 10 ft ceilings, heart pine and hardwood floors, custom cabinetry by Jaeger and Ernst, 5 large en suite bedrooms, main level master. Private setting, Blue Ridge Mountain view, salt water pool and lake, fabulous offering. MLS#586392

TOTIER HILLS FARM ◆ $2,880,000

Exquisite brick mansion, superb quality construction and features in over 9,000 finished square feet, on 98 gently rolling acres with total privacy, a stream and pond. Only 5 minutes to shops, 15 miles to UVA. MLS#587385 For full details, visit: wwwTotierHillsFarm.com

WWW.MCLEANFAULCONER.COM

VERULAM - Exquisite country estate situated on 500+ beautifully maintained acres only minutes from Downtown Charlottesville. This classic, Georgian, manor home boasts 10’ ceilings, 5 bedroom suites, an open floor plan with a gracious kitchen and living area. Not to be missed, are the extensive grounds and Gillette gardens, a pool with pool house, guest cottage, and state of the art equestrian facilities. Lastly, a dairy barn converted for hosting events (with significant income producing opportunities). With stunning mountain views, this private and elegant equestrian estate is only 4 miles from UVA! MLS 583494. $15,800,000. Frank Hardy 434.981.0798

ROUNDAWAY FARM - An exquisite equestrian property! 10 Stalls, automatic water, wash/tack/ring, paddocks, run-ins. Stocked pond. Main residence includes walnut floors, coffered & vaulted ceilings, custom woodwork, 5 fireplaces, 6bdrm. Apartment, office/cottage. Pool/pool house. MLS 588688. $4,950,000. Liza Payne 540.270.8590

STONE’S THROW - Exceptional Country residence only a short drive from Charlottesville. The 6-bedroom residence has an open floor plan. 1st floor Master, office, exercise room, media room, infinity pool, hot tup and pavilion, gardens and lawns, stable and riding ring, pond. Immense privacy with extraordinary views. MLS 585648 $3,250,000. Murdoch Matheson 434.981.7439

FAIRVIEW - c. 1856 brick Georgian manor home. 9,000 s.f. with 10’ ceilings and heart pine floors. Fireplaces, original moldings and woodwork. 5 bedrooms and guest cottage. Formal gardens and rose garden, Farm managers house, horse facilities and equipment barns. Located in beautiful Somerset VA. MLS 585034. $2,975,000. Murdoch Matheson 434.981.7439

HIGHLAND ORCHARD - Nearly 1,000-acres in Albemarle. 20 min from Charlottesville and UVA. Situated among the headwaters of the Hardware River, pasture and woodland, with contemporary residence. Guest house, farm managers cottage, pool and farm buildings make this an extraordinary offering. MLS 580935. $9,500,000. Murdoch Matheson 434.981.7439.

Charlottesville Brokerage 417 Park Street Charlottesville, VA 22902 Tel: 434.296.0134

Piedmont Brokerage 151 West Main Street Orange, VA 22960 Tel: 540.672.1100

© MMXVIII Sotheby’s International Realty Affiliates LLC. All Rights Reserved. Countryside used with permission. Sotheby’s International Realty® is a licensed trademark to Sotheby’s International Realty Affiliates LLC. An Equal Opportunity Company. Equal Housing Opportunity . Each Office Is Independently Owned And Operated.

LIVE CHARLOTTESVILLE

GALLISON HALL - Charlottesville’s premier property, located in one of the most exclusive neighborhoods. A landmark on the Virginia and National Registers. Built in 1931-33, this elegant Georgian home sits on approximately 43 acres of parkland. Complete privacy in a prime residential location, minutes to the University and downtown. Maintained with the utmost care, improvements were added to the property to include an indoor tennis/racquet ball facility and indoor pool. Three apartments & charming log cabin. MLS 583485. $14,495,00.Ann Hay Hardy 202.297.0228

419 NE 2ND ST - Wonderful Downtown c. 1920s house impeccably maintained. 5-bedroom with gracious master and includes a 2 bed walkout garden apartment with excellent light and lovely rear yard. Covered porches are private. Easy walk to the downtown mall. MLS 588413. $1,750,000. Murdoch Matheson 434.981.7439.

COBHAM CREEK FARM - 26 acre equestrian farm just 20 minutes from town. The main residence, once a barn, was restored and expanded. Formal living room, conservatory and sunroom opens to flagstone terrace with Koi pool. Stocked pond. MLS 587685. $1,995,000. Frank Hardy, Rob Nelson, Katherine Leddginton. 434.296.0134

FOX MOUNTAIN ROAD - Just under 450 acres in Free Union with mountain views, rolling pastoral hills, and streams. An untouched parcel ready for improvements. Elevated building site with unobstructed sight lines. Mixture of open and wooded land for recreational activities. Can be divided. MLS 587818. $1,900,000. Ann Hay Hardy 202.297.0228

1108 HILLTOP RD - Period Georgian designed by Marshall Wells, built in 1930’s. Flemish Bond with slate roof,copper gutters and downspouts. Master suite with renovated bath. 4 addtl bdrms. Contemporary kitchen, 4 fireplaces and outdoor fireplace. Gardens and private lawn. Close to UVA. MLS 588265. $2,600,000. Murdoch Matheson 434.981.7439

frankhardy.com

CLASS NOT E S

In Memoriam The Darden School offers its condolences to the families of the following individuals whose deaths have been reported to us in the past six months.

William J. Arthur (DBA ’57) Martin L. Ball III (MBA ’76) Robert E. Clay Jr. (MBA ’62) Marion E. Costello Jr. (MBA ’64) Wellington W. Cottrell III (MBA ’81) Brian J. Cowan (MBA ’91) W. Herbert Crowder III (MBA ’66) Henry S. Daniel IV (MBA ’69) Owen W. Harrison (MBA ’66) Laurence O. Howard Jr. (MBA ’66) Donald W. Howes (MBA ’80) John C. Matthews (MBA ’65) Patricia J. Meyering (MBA ’84) Winston Tyree Shearon Jr. (DBA ’74) Justin Shein (MBA ’00)

F I N D Y O U R P U R P O S E . R E F I N E Y O U R W H Y. Personalized, complimentary career coaching from Alumni Career Services · Job search · Encore career · Career management · And more

Every career stage. Every career issue. Free of charge. Forever.

The Armstrong Center for Alumni Career Services

alumnicareerservices@darden.virginia.edu +1-434-924-4876

DARDEN LEADERSHIP BOARDS

The five leadership boards of the Darden School of Business are composed of more than 150 distinguished leaders who collectively serve as an innovative force in the advancement of the Darden School throughout the world. (Listing as of 30 June 2019)

DARDEN SCHOOL FOUNDATION BOARD OF TRUSTEES

John C. Jeffries, Jr. University of Virginia

ALUMNI ASSOCIATION BOARD OF DIRECTORS

CHAIR Elizabeth K. Weymouth (MBA ’94) Grafine Partners

Robert L. Huffines (MBA ’92) JPMorgan Chase

CHAIR Warren F. Estey (MBA ’98) Deutsche Bank

VICE CHAIR Robert J. Hugin (MBA ’85) Retired, Celgene Corp. IMMEDIATE PAST CHAIR James A. Cooper (MBA ’84) Thompson Street Capital Partners Kirby C. Adams (MBA ’79) Retired, Tata Steel Europe J. Michael Balay (MBA ’89) Wiswell Advisors LLC Scott C. Beardsley University of Virginia Darden School of Business W. L. Lyons Brown III (MBA ’87) Altamar Brands LLC

Martina T. Hund-Mejean (MBA ’88) Retired, MasterCard Worldwide David B. Kelso (MBA ’82) Retired, Aetna Rosemary B. King (MBA ’91) K&B Fund Mark J. Kington (MBA ’88) Kington Management LLC Naresh Kumra (MBA ’99) JMATEK Ltd. Lemuel E. Lewis (MBA ’72) LocalWeather.com Jeanne M. Liedtka University of Virginia Darden School of Business

PRESIDENT Patrick A. O’Shea (MBA ’86) ICmed LLC Kristina M. Alimard (MBA ’03) University of Virginia Investment Management Co. Yiorgos Allayannis University of Virginia Darden School of Business Keith F. Bachman (MBA ’89) Bank of Montreal Christine P. Barth (MBA ’94) Harren Equity Partners LLC Mary Buckle Searle (MBA ’86) Strategic Thought Partners

J. Andrew Bugas (MBA ’86) Radar Partners

Nicole McKinney Lindsay (MBA ’99/JD ’00) MasterCard Worldwide

Susan J. Chaplinsky University of Virginia Darden School of Business

Elizabeth H. Lynch (MBA ’84) Evercore

Andrew G. Crowley (MBA ’11) Markel Corp.

Jonathan D. Mariner

Richard P. Dahling (MBA ’87) Fidelity Investments

H. William Coogan Jr. (MBA ’82) Retired, Firstmark Corp. Charles R. Cory (MBA/JD ’82) Retired, Morgan Stanley & Co. Inc Robert G. Doumar Jr. (MBA/JD ’88) Park Square Capital LLP Frank S. Edmonds (MBA/JD ’95) Panning Capital Managment LP Richard C. Edmunds (MBA ’92) Strategy& PwC Karen K. Edwards (MBA ’84) Boyden Global Executive Search Warren F. Estey (MBA ’98) Deutsche Bank Arnold B. Evans (MBA/JD ’97) SunTrust Bank John D. Fowler Jr. (MBA/JD ’84) Wells Fargo Securities LLC Catherine J. Friedman (MBA ’86) Independent Consultant John W. Glynn Jr. Glynn Capital Management Kirsti W. Goodwin (MBA ’02) Gordon Grand III (MBA ’75) Retired, Russell Reynolds Associates Inc. Peter M. Grant II (MBA ’86) Anchormarck Holdings LLC

Carolyn S. Miles (MBA ’88) Save the Children J. Byrne Murphy (MBA ’86) DigiPlex Group Cos. Michael E. O’Neill (MBA ’74) Retired, Citigroup Inc. Patrick A. O’Shea (MBA ’86) ICmed LLC Zhiyuan “Jerry” Peng (MBA ’03) Sands Capital Management Alex R. Picou (MBA ’89) JPMorgan Chase James P. Ryan University of Virginia Frank M. Sands Jr. (MBA ’94) Sands Capital Management Frank M. Sands Sr. (MBA ’63) Sands Capital Management Henry F. Skelsey (MBA ’84) 3QU Media LLC Erik A. Slingerland (MBA ’84) EAS International SA Shannon G. Smith (MBA ’90) PointGuard Bruce R. Thompson (MBA ’90) Bank of America William P. Utt (MBA ’84) Retired, KBR Inc.

Jerome E. Connolly Jr. (MBA ’88) Carolina Financial Securities

Christian Duffus (MBA ’00) Vite.money LLC Michael J. Ganey (MBA ’78) GaneyNPD

Richard J. Parsons (MBA ’80) Elvis Rodriguez (MBA ’10) Bank of America Nancy C. Schretter (MBA ’79) The Beacon Group David A. Simon (MBA ’03) SRS Capital Advisors Inc. Jason Sinnarajah (MBA ’07) Ziff Davis Henry F. Skelsey Jr. (MBA ’15) GroundTruth David L. Tayman (MBA/JD ’99) Tayman Lane Chaverri LLP Lowell Simmons Ukrop (MBA ’89) Shaojian Zhang (MBA ’99) Haier IEP Business

CORPORATE ADVISORY BOARD CHAIR J. Michael Balay (MBA ’89) Wiswell Advisors LLC VICE CHAIR Richard C. Edmunds (MBA ’92) Strategy& PwC Danielle Eesley Amfahr 3M Company Stuart C. Bachelder (MBA ’06) DaVita Kidney Care

Thomas Gonzalez (MBA ’19) Darden Student Association

Joseph P. Balog (MBA ’88) PwC

Ira H. Green Jr. (MBA ’90) Simmons & Company International

Mazen G. Baroudi EY

Owen D. Griffin Jr. (MBA ’99) OSHAKits.com

Kelly Becker (MBA ’08) Schneider Electric

Evan A. Inra (EMBA ’08) Amazon Web Services

Helen M. Boudreau (MBA ’93) Bill and Melinda Gates Medical Research Institute

Kendall Jennings (MBA ’12) Accenture Bruce D. Jolly (MBA ’67) Lighthouse CFO Partners Harry N. Lewis (MBA ’57) Retired, Lewis Insurance Agency Inc. Kristina F. Mangelsdorf (MBA ’94) Visa Douglas T. Moore (MBA ’80) Med-Air Homecare Betsy M. Moszeter (EMBA ’11) Green Alpha Advisors Nikhil Nath (MBA ’00) Standard Chartered Bank

Mark S. Bower (MBA ’02) Bain & Company Kevin C. Clark (MBA ’01) Ergobaby William S. Cohen (MBA ’07) U.S. Trust Robert E. Collier (MBA ’10) Danaher (McCrometer) D. Lynnette Crowder (EMBA ’10) WestRock Paul H. Donovan (MBA ’95) Microsoft Daniel A. Dougherty (MBA ’94) Barclays

SUMMER 2019

Sarita T. Finnie (MBA ’01) Johnson & Johnson

DEAN’S DIVERSITY ADVISORY COUNCIL

Wei Jin (MBA ’99) Prudential Financial Corporation

Joseph B. Folds (MBA ’91) The Campbell Soup Company

CHAIR Alex R. Picou (MBA ’89) JPMorgan Chase

Shawn Liu (MBA ’05) Shanghai Cura Investment & Management Co. Ltd.

VICE CHAIR Nicole McKinney Lindsay (MBA ’99/JD ’00) Mastercard Worldwide

Richard K. Loh (MBA ’96) Ploh Group Pte. Ltd.

Nicola J. Allen (MBA ’10) Danaher Corp.

Todd R. Marin (MBA ’89)

Theresa O. Frankiewicz (MBA ’87) Crown Community Development Ivy L. Ghatan (MBA ’09) LinkedIn Sunil K. Ghatnekar (MBA ’92) Prescient S. Caribou Honig (MBA/JD ’96) QED Investors Michelle B. Horn (MBA ’95) SoftBank Group Kecia E. Howson (MBA ’99) SunTrust Robinson Humphrey

Tawana Murphy Burnett (MBA ’04) Facebook Paige T. Davis Jr. (MBA ’09) T. Rowe Price Teresa A. Epperson (MBA ’95) A.T. Kearney Inc.

Elie W. Maalouf (MBA ’89) InterContinental Hotels Group Rajan J. Mehra (MBA ’93) Nirvana Venture Advisors Agustín Otero Monsegur (MBA ’06) OM Invest Pascal Monteiro de Barros (MBA ’91) Stirling Square Capital Partners

Marcien B. Jenckes (MBA ’98) Comcast Cable

Ray R. Hernandez (MBA ’08) Asurion

John B. Jung Jr. (MBA ’84) BB&T Capital Markets

Antonio U. Periquet Jr. (MBA ’90) Pacific Main Holdings, Campden Hill Group

Andrew C. Holzwarth (EMBA ’09) Stanley Martin Cos.

Hagen Radowski (MBA ’91) MHP Americas Inc.

Harry A. Lawton III (MBA ’00) Macy’s

Octavia G. Matthews (MBA ’89) Aramark Uniforms

Vincent M. Rague (MBA ’84) Catalyst Principal Partners

Jason P. Lund (MBA ’06) Fortive (Global Traffic Technologies & ANGI Energy Solutions)

Willard L. McCloud III (MBA ’04) Pfizer

Fiona Roche (MBA ’84) Estates Development Co. Pty. Ltd., Adelaide Development Co.

Bonnie K. Matosich (MBA ’92) Submittable H. Whit McGraw IV (MBA ’07) S&P Global Market Intelligence

Michael A. Peters (MBA ’09) Comcast Corp. Reynaldo Roche (MBA ’07) Delta Air Lines Inc. William B. Sanders (MBA ’06)

Fernando Z. Mercé (MBA ’98) Nestlé Waters North America

Rhonda M. Smith (MBA ’88) Breast Cancer Partner

L. Michael Meyer (MBA ’92) Middlegame Ventures

Jeffrey W. Toromoreno (MBA ’06) Citigroup

Diem H. D. Nguyen (MBA ’01) PPD LLC

Daniele M. Wilson (MBA ’11) Google

Ann H. S. Nicholson (MBA ’01) Corning Abby A. Ruiz de Gamboa (MBA ’04) Deloitte Consulting LLP Kleber R. Santos (MBA ’01) Capital One

GLOBAL ADVISORY COUNCIL CHAIR Rosemary B. King (MBA ’91) K&B Fund

Colin P. Smyth (MBA ’04) MetLife

VICE CHAIR Naresh Kumra (MBA ’99) JMATEK Ltd.

Thomas J. Steenburgh University of Virginia Darden School of Business

Marcos P. Arruda (MBA ’02) Topico

Scott A. Stemberger (MBA ’04) The Boston Consulting Group

James Su-Ting Cheng (MBA ’87) New Richmond Ventures, Blue Heron Capital, Lee & Hayes PLLC

Katherine Vega Stultz Celgene

Vidyanidhi (VN) Dalmia (MBA ’84) Dalmia Continental Pvt. Ltd.

Eric M. Swanson (MBA ’08) Amazon.com

Louis G. Elson (MBA ’90) Palamon Capital Partners LLP

Edward W. Valentine (MBA ’93) Harris Williams & Co.

David R. Frediani Ironshore Inc.

Gerrud Wallaert (TEP ’18) E.ON

Anthony J. Hobson (MBA ’74) James Dyson Group Ltd.

Steven D. Williams (MBA ’06) Delta Air Lines, Inc.

Clelland Peabody Hutton (MBA ’75/JD ’77) Orion Partners Holdings Ltd.

Gary R. Wolfe (MBA ’92) Wells Fargo Securities LLC 44

THE DARDEN REPORT

Arpan R. Sheth (MBA ‘96) Bain & Co. Inc. Nishal Sodha (GEMBA ’17) Global Hardware Ltd. Ichiro Suzuki (MBA ’84) George S. Tahija (MBA ’86) PT Austindo Nusantara Jaya (ANJ) Alok Vaish (MBA ‘97) Yatra.com Jing Vivatrat Angel Island Capital Baocheng Yang (MBA ’04) Huanghe Science and Technology College Jeffrey J. Yao (MBA ’01) Profision Shipping Capital Management Ltd.

THAN K YO U

to our alumni and volunteer leaders for a record year of support for Darden.

SUMMER 2019

Questions With DOROTHY BATTEN (MBA ’90)

orothy Batten (MBA ’90) is a philanthropist, conservationist, designer, mother and nonprofit founder. With so many hats to wear, she experiences the value of her Darden MBA and the courage it gives her to confront new and unknown experiences every day. That courage has become particularly relevant since she founded iThrive Games, which works to benefit teens at the intersection of game development, education and mental health. It’s an area Batten identified as a new purpose in her life after going through a series of life crises, including the loss of her father and a shattered leg that left her unable to walk for nearly two years. But it’s a purpose she knew little about when she first conceived of launching the nonprofit. Today, the daughter of legendary Landmark Communications Founder and UVA philanthropist Frank Batten Sr. says iThrive Games is the thing she is second most proud of (behind her children). And while the nonprofit and her other roles ensure she is never standing still, her ability to take on all challenges drives her passion for advancing human thriving through emotional and social support. 1. What was your first job? Insurance broker in Lloyds of London 2. What’s the best advice you have ever received? “People will forget what you said, people will forget what you did, but people will never forget how you made them feel.” — Maya Angelou 3. Do you prefer numbers or words? Actually, I prefer images — I am a visual person — and then numbers. 4. What motivates you? Travelling to new places and cultures, especially places where there are animals, natural beauty and interesting architecture 5. When and where do you do your best thinking? Outside in nature 6. What’s your current state of mind? I am grateful for all the abundance and opportunity that this life has offered me. 7. What are you reading these days? Becoming by Michelle Obama and Where the Crawdads Sing by Delia Owens

8. What technology can you not live without? My coffee maker and microwave; I’m not much of a cook. 9. What’s your motto? Keep Calm and Carry On 10. How do you deal with conflict? I have had a lot of experience with conflict, and although I was slow to learn how to deal with it, conflict has been a great teacher. I think it is very important when someone presents you with a crisis that you simply listen, make them feel safe in confiding in (or venting to) you, allow them to express their full emotions, and don’t try to solve the problem for them. Most people just want you to be a sounding board, or for you to validate that they have been heard correctly and that you understand. Conflict usually arises when there is bias, misunderstanding and a lack of empathy. 11. What characteristics do you look for in people? Honesty, humility and kindness 12. How do you unwind? Walking on my farm, being with animals, listening to books on tape and designing buildings (I also went to design school at UCLA after Darden).

young, Lynda Carter sat down next to us at lunch, and I almost fainted. 17. Which class at Darden impacted you the most? Paul Farris’ First Year marketing class. 18. Describe a moment when you realized the true value of your Darden education. When I decided to launch iThrive Games and venture into an industry that I knew nothing about and had no experience, Darden gave me the courage to trust in myself. 19. Why is it so important for today’s Darden students to see the world as part of their academic experience? I had the opportunity to study and travel abroad during college and work in London after I graduated, and those were transformative years. The ability to step out of one’s box and visualize things from an outsider’s, or unbiased, perspective is an essential skill for life and a catalyst for creativity. 20. You have shared that pursuit of purpose was critical in your father’s life, which inspired you to find your own meaningful path. What advice would you offer others seeking to pursue their purpose? 1. Don’t allow others to prescribe what your purpose should be.

15. What do you lose sleep over? My children and sleeping past my alarm.

2. Your purpose may change its course unexpectedly after some sort of adversity, so learn to expect change. My purpose materialized after a fluke accident, which shattered my leg and left me with limited mobility for two years. During that time, I went back to school for a degree in counseling, and then my father (and my dog) died, and I got a divorce. Soon after, I conceived the idea for iThrive Games, which would never have happened if I did not have those experiences.

16. Who’s your favorite action hero? Wonder Woman, of course! Once, when I was skiing with my dad in Colorado when I was

3. Be patient, be open-minded, and allow the toughest moments in your life to be your greatest source of growth and inspiration.

13. What is your favorite cause? It’s a tie between saving African elephants and helping teenagers through the nonprofit I started, iThrive Games. 14. If you could live anywhere, where would it be? My fantasy island retreat would look like New Zealand and have elephants, gorillas, African large cats and wild dogs.

SUMMER 2019

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The Darden Report Summer 2019

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The Darden Report Summer 2019