Erb Institute Report No. 121
Sustainable Enterprise Careers Of Erb Institute Alumni Vision, Impact, Commitment
• Team leader of the largest combined wind-solar energy development project in the US • Director of Johnson Control’s Green Building Institute • Founder of Wello, giving women in developing countries a cheaper and faster way to meet their families’ drinking water needs • Managing partner of the private equity firm financing the biggest residential roof top solar program in the world
This diverse group shares one formative experience: they are alumni of the Erb Institute for Global Sustainable Enterprise at the University of Michigan. Equipped with dual master degrees in business administration and natural resources and environment, Erb alumni anticipate social and environmental constraints and opportunities shaping the future of business, and lead their organizations to provide the market-based solutions our world needs.
AN INCUBATOR FOR VISIONARY BUSINESS LEADERS
T
he Erb Institute is committed to creating a socially and environmentally sustainable society through the power of business. Building on nearly two decades of research, teaching, and direct engagement, the Institute has become one of the world’s leading sources of innovative knowledge on the culture, technologies, operations and governance of business in a changing world. The Institute’s impact is realized most powerfully through our vibrant global network of students and alumni who are the transformative change agents in business, government and the non-profit worlds. Students in the three-year program earn two degrees—an MBA from the Stephen M. Ross School of Business and a Master of Science from the School of Natural Resources & Environment (SNRE). With 100 students, Erb is the largest dual-degree graduate
sustainable enterprise program in the country. Erb’s large cohort size creates a strong academic and cultural presence in both Ross and SNRE; reflects a broad range of sustainability topics, industry and functional; and attracts project, internship and job opportunities from organizations drawn by Erb’s large talent pool. As of Summer 2011, the Erb MBA/MS alumni body reached 250 graduates spanning 17 graduating classes. Our large and fast-growing alumni base offers students a unique learning resource and network for professional opportunity and growth. For employers, the alumni base provides access to a broad range of sustainability professionals and a direct link to cutting-edge research and training.
JENNIFER LAYKE (MBA/MS 1997) is Director of the Institute for Building Efficiency at Johnson Controls where she leads the Institute’s global research initiatives in commercial building efficiency, smart buildings and the smart grid, green building design, and renewable energy technologies. MARK THOLKE (MBA/MS 2003) is a VP and Director for Enxco Development Corporation, a utility-scale project developer for renewable energy (primarily wind, also solar). In 2011, Mark’s team broke ground on the largest wind-solar hybrid project in the US, ten times the scale of the next-largest project.
A Sampling of Erb Alumni Employers Adidas Group American Chemistry Council Boeing BP Business for Social Responsibility Cisco City of Portland DTE Dow Ford GE GM Great Lakes Commission Interface McKinsey Company Waste Management U.S. Forest Service The World Bank The Packard Foundation...
CHANGE AGENTS IN DIVERSE INDUSTRIES & FUNCTIONS
A
ccording to our 2011 survey, 63% of Erb alumni work in for-profit corporations, 19% work for start-ups, and the remainder for government and educational institutions. The energy and raw materials sector employs 25% of our respondents, followed by management consulting (20%), retail consumer goods (11%), and electric utilities (7%). Broken down by industry distribution about 50% of Erb alums work in Energy/Raw Materials, Utilities or Consulting. Consulting is drawing a growing proportion of Erb alums, with at least 33% of the class of 2012 entering the management consulting
Sector
Industry
Non-Profit 11% Government 4%
High-Tech/ Telecom Services 5%
Energy/Raw Materials 25%
Start-up 19%
For-Profit Corporation 63%
Other 18%
Educational Institution 3%
Func on
Retail/Consumer Goods 11% Transportation 6% Financial Services 8%
Consulting 20%
Utilities 7%
Consulting 17%
General Management 17% Marketing 4%
Business Development 18% Corporate Sustainability 13%
Strategic Planning 4% Operations 5% Finance 10% Other 12%
industry based on acceptances as of February 1, 2012. By function, Erb alumni report working in a business development (18%), general management (17%), or consulting (17%) function. The next most common functions are corporate sustainability (13%) and finance (10%). Least common are marketing, operations, and strategic planning.
DEEP IMPACT, HIGH SATISFACTION
E
rb alumni give top priority to the potential for social or environmental impact in career selection. Alumni report spending approximately 60% of their time on sustainability projects while at work, demonstrating their ability to make a social and environmental impact in their careers. Greater than 90% of Erb alumni are either very satisfied or satisfied with their level of involvement in sustainability topics at work. More generally, 100% of reporting alumni are either very satisfied or satisfied with the work they are doing. 2011 Erb Institute graduates commanded salaries comparable to Ross MBA graduates entering similar fields, and earned significantly more on average than 2011 SNRE MS graduates. For example, Erb MBA/MS alumni entering consulting fields reported a mean base salary of $131,000 ($125,000 for Ross) plus signing bonus and other guaranteed compensation totaling $51,000 ($50,000 for Ross MBAs). The average total compensation for Erb 2011 alumni accepting privatesector jobs was $128,000, again roughly comparable to Ross MBA grads, but with too few in industries (other than consulting) to allow for meaningful averaging and comparison. Erb graduates entering for-profit corporations commanded higher salaries than those entering start-ups, non-profits, government entities, and educational institutions. Consistent with the relatively greater emphasis they put on environmental and social impact, versus financial gain, in their job choices, Erb grads are somewhat more likely to take jobs with non-profit organizations and startups than are Ross single-degree MBA graduates.
JON KOCH (MBA/MS 1996) is co-founder and managing director of U.S. Renewables Group, one of the largest private equity funds focused solely on renewable energy. In 2011, USRG announced that it will provide financing for the largest US residential solar PV program, with a goal of installing systems on 160,000 rooftops on 124 military bases across 33 states. CYNTHIA KOENIG (MBA/MS 2011) is founder and CEO of Wello, a social venture with a bold mission: to deliver clean water to a thirsty and impoverished world. The innovative WaterWheel alleviates the obstacles associated with transporting clean water while empowering individuals to use it as an income-generating tool.
Top Reasons Erb Alums Accept Positions Ross 2011 MBA Graduates 1. 2. 3. 4. 5.
Positioning for the future Intellectual challenge Geographic location Financial gain Lifestyle
Erb Alumni 1. 2. 3. 4. 5.
Potential Social/Enviro Impact Intellectual Challenge Positioning for the future Geographic location Variety of responsibilities
This report was co-written by Allison Shapiro (Erb MBA/MS 2011), 2010-11 co-president of the Erb Student Advisory Board (SAB) and Rachel Smeak, 2011-12 SAB co-president. Rachel Smeak and Rich Grousset (Erb MBA/MS 2013 and 2010-11 SAB VP of Careers) led the 2011 Erb alumni survey. Sustainable Enterprise Careers of Erb Institute Alumni: Vision, Impact, Commitment Š 2012, the Erb Institute / erb.umich.edu This report is printed on 100% post-consumer, FSC certified conservation paper using vegetable-based inks. Please recycle.