Business News - 2019 by Penn State Behrend

Black School of Business NEW S | 2019

LEADING THE WAY Alumna forms nonprofit to mentor youth. Page 8

Student Fund is Thriving_______________ 2 The Business of Engineering___________ 6 Professional Development Program Expanded_____________________________ 7 Automation Will Change Economy______ 10

DIRECTOR’S MESSAGE

In Brief

We’ve launched a new academic year with continued excitement around the programs of the Black School of Business, which now enrolls 2,000 students in resident instrucDR. GREG FILBECK tion and online through Penn State World Campus. In this publication, you will read about our expanded professional development program for students, including the increased role that our Business Advisory Board is playing in efforts to make us a business school of choice for employers looking to hire workforce-ready graduates. We launched a third mentoring program for students this fall geared toward cross-cultural exchanges. Our executive in residence (EIR) program has expanded to involve four professionals this academic year. Steve Bugajski, chief information officer for U.S. Steel; Brad Postema, chief investment officer for Erie Insurance Group; and Dan Levstek, president of MDL International, have joined Ann Scott, community outreach manager for Erie Insurance Group, as EIRs for 2019-20. We also grew our Bloomberg Terminals from one to twelve to meet increased demand for time on the terminals and give students greater access to the Bloomberg system for hands-on, in-class experiences. In addition to enhancing student learning, research conducted on the terminals is integral to management of the Intrieri Family Student-Managed Fund, which has a value of more than $800,000 at the time of this issue of Business News. We hosted a highly successful alumni event at the Bourbon Barrel in Erie in conjunction with Parents, Families and Alumni Weekend. We’re proud of our alumni and appreciate all that they do from participating in professional networking to serving on our advisory boards. Thank you for your support of the Black School of Business and our students.

INTRIERI FAMILY STUDENT-MANAGED FUND THRIVING The Intrieri Family Student-Managed Fund, established in 2012 with a $100,000 gift by Vincent Intrieri ’84 and his wife, Joanne, is now valued at more than $800,000. A portion of that growth has come from additional gifts, although much of it is from the returns on investments made by Penn State Behrend students. “The fund has gained 23.12 percent this year,” said Dr. Timothy Krause, assistant professor of finance and director of the fund. “Its benchmark rose 22.82 percent, so we are now outperforming our benchmark.” About fifty students are participating in fund activities this semester; that includes nine World Campus students. Six student fund leaders recently traveled to Chicago with Krause for the annual Student Managed Investment Fund Consortium Conference. Encouraged by the students’ work, the Intrieri family and Samuel P. “Pat” Black each added $150,000 to the fund in 2017, giving students an additional $300,000 to manage. “When the fund hits $1 million, earnings over that mark will generate scholarship money for students working on the fund,” said Kevin Moore ’85, ’89 MPA, director of development and alumni relations. If you’re interested in contributing to the Intrieri Family Student-Managed Fund, contact Britt Daehnke, associate director, Development and Alumni Relations, at bxd244@psu.edu or 814-898-6383.

MBA STUDENT HONORED FOR ACHIEVEMENTS Penn State Behrend MBA student Kristen Santiago was recently recognized with the 2019 Celebrating Success Award from Junior Achievement of Western Pennsylvania. The award recognizes young professionals who are making a positive social, business, or culture change in their community. Santiago is the owner of a consulting business, Ivy + Atlas, and the president of Erie Clayspace, a ceramics studio in downtown Erie. She has made significant contributions to the arts and culture of downtown Erie while also pursuing her MBA at Behrend.

FACULTY NEWS New Faculty Zachary Williams has been hired as a lecturer in accounting.

Promotions Dr. Mark Owens has been promoted to associate professor of economics. Dr. Sourish Sarkar has been promoted to associate professor of operations and supply chain management. Eric Robbins was promoted to assistant teaching professor of finance. Dr. Val Vlad was promoted to associate teaching professor of economics.

BLOOMBERG TERMINALS ADDED The Black School of Business has added ten Bloomberg Terminal subscriptions to its finance lab in Burke Center. The Bloomberg Terminal provides real-time and historical financial data, analytics, and market news for every asset class. An eleventh new Bloomberg Terminal has been installed in Trippe Hall, the college’s newest residence hall. That brings the total number of Bloomberg Terminals at the college to twelve. “In terms of business data, Bloomberg is the gold standard,” said Dr. Greg Filbeck, director of the Black School of Business. “There is no more comprehensive database of news, market data, and financial information.” Bloomberg was founded in 1981, creating an electronic network long before investors had access to the internet and 24-hour financial news networks. The platform integrates real-time data and research in every market and asset class, from fixed income to equities, commodities and derivatives. Bloomberg’s color-coded keyboard allows users to quickly complete common actions. An early model was included in the “American Enterprise” exhibit at the Smithsonian’s National Museum of American History. Penn State Behrend was the first college in the region to have a Bloomberg Terminal. “It was being used constantly,” Filbeck said. “People were coming in at all hours, including late in the evenings, to have access to it.” The new Bloomberg Terminals will improve student access to the Bloomberg network: Faculty members will now be able to incorporate Bloomberg data in their in-class teaching. Students also can earn a Bloomberg Market Concepts certification by completing an e-learning course.

Accomplishments Robert Patterson, lecturer in management, recently received the Steel Valley Region Chapter Advisor of the Year award from Delta Sigma Pi, a professional business fraternity. Dr. Xianghui (Richard) Peng earned the distinctive CAP Certification. Fewer than 2,000 people world-wide hold this distinction, which requires a deep understanding of business problem framing, analytics problem framing, data, methodology selection, model building, deployment, and model life cycle management. Dr. Jeff Pinto, professor of management, celebrated 25 years of service. Dr. Jessica Zhao has been named cochair of the Samuel A. and Elizabeth B. Breene Professorship in Business.

ON THE COVER: Jacqueline Jackson ’02, right, started the Royalty Project, a nonprofit mentoring program in Harlem, New York, for youth of color. Jackson is pictured with two of the organization’s volunteer mentors, from left, Candice Lawrie and Middle Joy Massingill.

In Brief continued

BEHREND PARTNERS WITH ASSOCIATION FOCUSED ON ALTERNATIVE INVESTMENTS Students in the Black School of Business now have access to programs and curricula developed by the Chartered Alternative Investment Analyst Association (CAIA), the global leader in alternative investment education. Students also will be eligible to apply for scholarships to earn the CAIA Charter designation. CAIA is a global network of 9,000 investment professionals, offering the only credential focused on the alternative investment space, which includes private equity, hedge funds, managed futures, and real estate. To earn a CAIA Charter, candidates must complete two levels of qualifying exams and show relevant professional experience. “Alternative investments are a growth sector in the investing world, and our students will have comprehensive training in those strategies,” said Dr. Greg Filbeck, director of the Black School of Business. “This formal partnership with CAIA enhances our existing curriculum and sharpens our focus on industry-tested best practices. Access to that training will better position our students for success in a broad range of investment products.”

CAIA will annually provide up to eight scholarships to students in the Black School. That funding will cover the cost of registering for the CAIA Charter exams. The organization also will provide one year of free access to the CISDMMorningstar Hedge Fund Database, which tracks qualitative and quantitative information for more than 6,000 hedge funds and commodity trading advisers.

“Gaining access to the database allows our students and faculty members to engage in meaningful research in an area in which data is quite sparse,” Filbeck said. “The database complements the resources available to our students, including our Bloomberg terminal, which provides real-time, professional-grade investing support, and will help guide the investment strategy for our Intrieri Family Student-Managed Fund.”

FEATURED SCHOLARS Support from donors helps our students succeed. Scholarship recipients featured in this publication include: KAYLA FREYERMUTH

Lawrence and Elizabeth Held Scholarship NICK MCKEE

American Production and Inventory Control Society Erie Chapter OLIVIA PUPURA

Lawrence and Elizabeth Held Scholarship; Allyn and Alice Wright Leadership Scholarship; Edward P. and Barbara F. Junker Scholarship; National Bank of North East Leadership Scholarship

Executive In Residence Program Expands Who better to introduce students to some of the realities of the business world than a successful industry insider? That’s the idea behind the Black School of Business’ Executive In Residence (EIR) program, inviting professionals to share their experience with students and faculty members. The school recently named three new EIRs: Steve Bugajski ’94, chief information officer for U.S. Steel; Brad Postema, chief investment officer for Erie Insurance Group; and Dan Levstek, president of MDL International. Appointed by Dr. Greg Filbeck, director of the Black School of Business, the executives bring business and industry perspectives to the classroom environment, research projects, and learning-by-doing experiences. They guest lecture, lead workshops, serve on advisory boards, judge business competition entries, sponsor class projects, and mentor students. The three leaders join Ann Scott ’89, ’99 M.B.A., community outreach manager for Erie Insurance Group, as current EIRs in the Black School of Business. “It’s been a pleasure serving as an Executive in Residence for the Black School of Business,” Scott said. “My focus has been on women in leadership and I’ve thoroughly enjoyed working

with emerging women student leaders who are participating in the new C3W leadership certificate program that we created as part of my EIR experience. Seeing these young women become confident, capable, and connected as they go forward on their career paths has been extremely fulfilling.” In his position with U.S. Steel, Bugajski leads the company’s global IT operation, including the corporation’s digital strategy and cybersecurity. At Erie Insurance, Postema is responsible for all investment activity, including performance and risk on a portfolio that exceeds $18 billion. With MDL International, Levstek has responsibility for direct profit and loss for commercial and supply operations worldwide.

STEVE BUGAJSKI ’94

DAN LEVSTEK

BR AD POSTEMA

For more information on the Executive in Residence program, visit behrend.psu.edu/business.

ANN SCOT T ’89, ’99 M.B.A.

THE BUSINESS OF ENGINEERING Program builds corporate and technical skills When you think of a manufacturing company or technical enterprise, you may think of engineers, scientists, and designers, but these companies are businesses, too, and they benefit from executives who not only understand the business side of things, but also the products and services their companies deliver. It’s a niche that Penn State Behrend fills with its Interdisciplinary Business with Engineering Studies (IBE) program, which is administered by the Black School of Business and the School of Engineering. IBE is one of only a handful of undergraduate business-engineering programs nationwide and the only one within Penn State. In addition to core coursework in business, engineering, engineering mathematics, and science, IBE majors choose a focus module to build knowledge and skill in a targeted sector. Like all engineering students, IBE majors must complete a year-long senior capstone project, typically for a real company. These are often concept projects requiring out-of-the-box thinking and research time that busy companies would like to undertake, but just don’t have the resources to devote to exploring. Such was the case for Kent International, a bicycle design and manufacturing company headquartered in New Jersey. Arnold Kamler, chairman and CEO of Kent, learned about Behrend’s IBE program after

A team of IBE seniors were charged with building a better mobility tricycle for physically challenged users in underdeveloped countries. 6

meeting Dr. Diane Parente, professor of management and IBE program chair, at a manufacturing and technology conference in 2016. “Dr. Parente asked if I’d be interested in working with Behrend students on an IBE capstone project,” Kamler said. “I’ve done several projects with Behrend IBE students since then.” The latest involved Kent’s philanthropic interest in helping to build a better tricycle for mobilitychallenged users in underdeveloped countries. They have been successfully working with a group called Amtryke who introduced the company to Mobility Worldwide. “When you watch the videos on the Mobility Worldwide website, you can see that mobility given to these physically challenged individuals is life changing,” Kamler said. “Suddenly, they are transformed from feeling like a burden on their community to being self-sufficient. Many of them develop their own rudimentary businesses. Of course, Kent Bikes is a for-profit business, but when you see these kind of results, making money becomes a by-product.” Building a better mobility tricycle was a task with unique challenges. The tricycle needed to be sturdy and operable over uneven terrain, and it had to use basic materials, such as wood and steel that could be easily assembled and repaired with rudimentary skills and tools. It also needed to be lighter than 110 pounds and it needed to be weatherproof without using alloy materials. “The goal for Penn State Behrend’s students was to design a tricycle that was better than the current model Mobility Worldwide has,” Kamler said. “Using parts that are very low maintenance and easily assembled and disassembled was key.” Before they graduated in May, IBE majors Jeremy Brosius, Nick McKee, and Olivia Pupura developed three concepts for a tricycle design that emphasized durability and low maintenance. Further research is needed to identify materials and enhancements to determine the best overall design. “I have two employees at our factory in South Carolina who are working on this several hours every day,” Kamler said. “We are confident we can come up with a better product, and we will be able to save Mobility Worldwide a lot of money because of our buying power and economies of scale.”

Pathways to Success PROFESSIONAL DEVELOPMENT PROGRAM EXPANDED, REVAMPED

he bar is set high for today’s business graduates. They must be knowledgeable not only in their area of study, but also have skills in the subtle, but no less important, aspects of business such as communication, leadership, networking, and civic and community engagement. “One can know a lot of information, but being able to communicate, convey, and contribute to using that knowledge in a professional setting is how you get from here to the next level,” said Melanie Deppen, coordinator of the Black School of Business’ professional development program. That’s why the school, with input from members of its Business Advisory Board’s Professional Development Committee, recently launched a revised and expanded professional development program that aligns with curriculum and with the skills students are building during their years at Behrend. “We’ve changed the presentation of the program to a series of pathways that offer an increasing level of engagement,” Deppen said. “By their junior and senior year, students who participate in the program are expected to be self-driven and motivated. They are typically given opportunities to engage with company representatives and network.” Participation in the program is voluntary and free. Students log on to the platform through the Behrend Sync online student portal, browse the professional development activities, opportunities, and suggested tasks that align with their year in school, and record their participation. Those who complete the program reap a few tangible rewards (incentives such as business card holders and professional messenger bags) and, more importantly, plenty of personal and professional growth. “It not only gives students opportunities to network and learn, but the program provides a structure that assures you’ll be in an ideal position by the time you graduate,” said Cody Ritter, a first-year student dual majoring in Accounting and Finance. Mentors are another important resource for Black School of Business students working on professional development. The school recently expanded its two existing mentoring programs and launched a new cross-cultural mentoring experience.

ADVISORY BOARD MEMBERS SPEAK TO VALUE OF PROFESSIONAL DEVELOPMENT The school’s Advisory Board members who volunteer to serve on the Professional Development Committee recognize the importance of helping students acquire the softer skills of business. Business News talked to a few of those members to hear why they make time to help guide students: “I have benefited from others coaching me throughout my career,” said JANA GOODRICH ’95 M.B.A., president and CEO of Seaway Manufacturing, “so I truly enjoy giving back to students, and I recognize the importance of keeping Behrend graduates exceptionally competitive.” “For many students, there is a lot of discomfort in interacting with successful professionals,” said BRUCE GRAY ’80, senior vice president and credit officer at Bank of America. “If they can sit down and be at ease in a conversation with a business leader, they’ll stand out from the crowd.” “The softer skills that are built in the professional development program are things that are definitely going to advance graduates’ careers once they get in the door,” said JOI GOFFUS, recruiter at Bechtel Plant Machinery Inc. “One of the things I hope to emphasize is that business students should value liberal arts and general education courses because it makes them a more well-rounded person,” said ANN SCOTT ’89, ’99 M.B.A., community outreach manager for Erie Insurance Group. “When I first started my career, I remember thinking how appreciative I was that I had taken courses in the arts and sciences because I could talk about a variety of subjects and connect with people on a different level. And, in business, it’s all about connections.” 7

A ROYAL CALLING Alumna forms nonprofit to mentor, inspire youth of color JACQUELINE JACKSON ’02 CAN’T REMEMBER A TIME SHE WASN’T MENTORING SOMEONE. “It’s important because it holds me to a higher standard,” Jackson said. “Knowing there are people who look to me as an example encourages me to push harder.” As a student at Behrend, Jackson, who earned concurrent degrees in Marketing and International Business, served in several leadership roles. She was a resident assistant, president of the Association of Black Collegians, on student government and on the Multi-Cultural Council, among other activities. When she graduated and began her career in corporate retail, she continued reaching back to help others achieve as well. She has a special interest in empowering young people, which is why, three years ago, she formed a nonprofit organization, the Royalty Project, a cultural enrichment initiative in Harlem, New York, serving youth of color ages 10 to 14. “Mentoring kids is the fountain of youth,” Jackson said. “Children are fearless, unbiased, and natural risk takers. They are a huge inspiration to the adults who embrace and engage with them. Mentoring is truly rejuvenating.”

LABOR OF LOVE The Royalty Project is a side venture for Jackson, who has spent the past seventeen years working for retail brands such as The Gap, Ralph Lauren, Coach, and Kate Spade. This year, she pivoted from fashion to home décor, joining West Elm in New York City as director of inventory planning for decorative accessories. She formed the Royalty Project with friends, many of whom serve on the board of directors for the organization. “We had been casually discussing ways to contribute to our community and culture for some time and came up with the idea of a mentor program,” she said. “We developed the idea, branded the concept, solicited community partners, and organized a launch party in less than a year. Fortunately, it was well received and successful even though I was impetuous. We made some rookie mistakes that took years to correct.” Among those mistakes was getting a web address with a dot-com domain instead of a dotorg address—and launching before The Royalty Project, was officially recognized as a 501(c)(3). “All is well now though,” she said. “Mistakes were corrected, and lessons were learned.” Such is life and business—a series of lessons learned the hard way. In any case, who could fault Jackson for her enthusiasm and eagerness to help young people?

ABOUT THE ROYALTY PROJECT “The name was chosen to convey ‘ascension,’” Jackson said. “The painful history of African-Americans has produced a large amount of self-doubt in our community. Considering ourselves royalty conveys that we are called to a higher standard.” The Royalty Project is an eight-week program offered twice a year, in the spring and fall. Students participate in Saturday workshops that include activities and discussions about the history and culture of African descendants. They also go on a group field trip before the class culminates with a graduation ceremony, dubbed “The Crowning.” Both women and men serve as mentors for the Royalty Project. “Everything we do is co-facilitated by a male and female team,” Jackson said. “We partner to prepare for and lead the activity together. It’s a great way to exhibit cooperation between genders.” It’s an important, if subtle, life lesson. It’s just one of many that Jackson and her volunteers hope to convey. “Self-awareness leading to self-esteem grounded in the substance of legacy is the special sauce,” Jackson said. “We work to share and embody the beauty that comes from a painful past by telling our own history. So often, our history and culture are depicted and narrated by people or groups who aren’t a part of it. It’s important that we narrate our own stories.”

Jacqueline Jackson ‘02, second from right, with some Royalty Project mentors and participants.

“Mentoring kids is the fountain of youth. Children are fearless, unbiased, and natural risk takers. They are a huge inspiration to the adults who embrace and engage with them. Mentoring is truly rejuvenating.” JACQUELINE JACKSON ’02

DR. KEN LOUIE

ECONOMISTS URGE LEADERS TO EMBRACE TECHNOLOGY

avigation is made easier by road maps and weather forecasts, and in much the same way, data gathered and analyzed by the Black School of Business’ Economic Research Institute of Erie (ERIE) indicates the direction of the Erie region’s economy. The faculty members and students who work at the institute monitor key indicators of economic health of the region and shed light on how to avoid pitfalls and take advantage of opportunities. Sometimes, the pitfalls and opportunities go hand in hand. Such is the case with rapid technological advances in automation and artificial intelligence (AI), which are likely to have a profound effect on the workplace and our economy. Automation and AI, and the ripple effects they will cause,

were the focus of this summer’s Economic Research Institute of Erie Conference, hosted annually by Penn State Behrend and attended by business, community, and government leaders. According to research conducted by ERIE, in the next ten to fifteen years, 19.2 percent of the occupations in Erie will be at high risk of being replaced by automation, computerization, and AI. “Automation and AI present both a challenge and an opportunity,” said Dr. Ken Louie, director of ERIE and associate professor of economics. “At the conference, we hoped to help leaders understand the challenge and develop means to adapt most effectively to that challenge.” Louie and conference speakers urged executive decision-makers to embrace technology or risk being left behind. “In the past, when we talked

According to research conducted by ERIE, in the next ten to fifteen years, 19.2 percent of the occupations in Erie will be at high risk of being replaced by automation, computerization, and AI. 10

There is a silver lining: Projections by the U.S. Bureau of Labor Statistics indicate that net job growth in Erie is expected to be about 5 percent over the next decade. That growth could help offset job losses due to automation. However, those new jobs will require more education and training than the jobs lost to new technology.

about automation, most of the discussion focused on the production arena,” Louie said. “We would think typically of robots, for instance. But, if you look at the data, increasingly, the impact is spreading across many other sectors. Right now, the impact is less in production, but more in the service sectors: administrative support, clerical, and retail trade.” There is a silver lining: Projections by the U.S. Bureau of Labor Statistics indicate that net job growth in Erie is expected to be about 5 percent over the next decade. That growth could help offset job losses due to automation. However, those new jobs will require more education and training than the jobs lost to new technology. “Unfortunately, the statistics indicate that currently there is

a mismatch,” Louie said. “Our estimates show that the jobs that are being displaced by automation typically involve skills that are at the high-school level or lower, whereas the fastest-growing occupations typically require more advanced training and skills that involve a bachelor’s degree or higher.”

The answer to that dilemma is education and training for workers who are likely to be displaced so that the Erie region is prepared to meet the future head on with a workforce and community ready to embrace automation and artificial intelligence, rather than fall victim to it.

MENTORS NEEDED Would you like to help mentor the next generation of business leaders or share your experiences with students in the Black School’s professional mentoring program? Designed to bring Behrend seniors and juniors together with alumni in their chosen fields, the program encourages participants to meet, on average, seven times between October and May and participate in activities to help graduating students develop their résumés. Through the program, professionals share their knowledge and life experiences with their mentees and provide students with the support to explore career options.

Penn State Erie, The Behrend College Black School of Business 281 Burke Center 5101 Jordan Road Erie, PA 16563-1400

Non-Profit Org. U.S. POSTAGE PAI D Erie, PA Permit No. 1

Contact Dr. Severine Patanakul at ssp15@psu.edu.

REACH HIGHER WITH A GRADUATE DEGREE If you’re looking to take your career to the next level with a master’s degree, Penn State Behrend offers four businessrelated graduate degrees in growing professional disciplines: Master of Business Administration (M.B.A.): Behrend’s 30-credit MBA program emphasizes development of personal leadership style as well critical thinking, planning, and problemsolving skills. Professors shape their courses to meet the demands of a global, technology-driven business environment. Students can pursue Behrend’s MBA full time or part time, primarily online with monthly evening classes in Erie or Pittsburgh. Master of Manufacturing Management (M.M.M.): This 32-credit degree program educates professionals who want to develop in-depth, relevant manufacturing knowledge while also advancing their engineering and management skill sets. The MMM can be pursued on a full- or part-time basis. Program delivery is primarily online with one weekend in Erie per semester for part-time students. Master of Professional Accounting (M.P.Acc.): Most states require 150 credit hours of education for Certified Public Accountant licensure, which the Master of Professional Accounting degree program fulfills. This 30-credit program can be completed in one year of full-time study or two years of part-time study. Program delivery is primarily online with monthly evening classes in Erie or Pittsburgh.

Master of Project Management (M.P.M.): This fully online degree program is offered in partnership with Penn State World Campus. The M.P.M. is a 30-credit interdisciplinary program that uses problem-based learning to provide a thorough understanding of all aspects of project-management theory and practice. It can be pursued as either a full-time or part-time program. For more information about any of these programs, visit behrend.psu.edu/grad, email PSBehrendGrad@psu.edu, or call 814-898-6818.

Black School of Business News is published annually and provided free to alumni and friends of Penn State Behrend Black School of Business by the Office of Strategic Communications, William V. Gonda, wvg2@psu.edu, senior director. Editor: Heather Cass, hjc13@psu.edu. Designer: Martha Ansley Campbell, mac30@psu.edu. This publication is available in alternative media on request. Penn State is an equal opportunity, affirmative action employer, and is committed to providing employment opportunities to all qualified applicants without regard to race, color, religion, age, sex, sexual orientation, gender identity, national origin, disability or protected veteran status. U.Ed. EBO 20-239