Jones Journal - Fall 2007

J e s s e H . J o n e s G r a d u at e S c h o o l o f M a n a g e m e n t / R i c e U n i v e r s i t y / Fa l l 2 0 0 7

A Tribute to the Life of Gil Whitaker, Jr. 1931-2007

Boundless Energy

Shop Talk

After School Special

Former Enron Executive Vince Kaminski speaks out on energy’s future

Professor Amit Pazgal maps out the marketplace

Healthcare professionals add to repertoire through Executive Education

Different Degrees of Success Doctors pursuing more than a medical degree

DEAN’s Welcome The excitement and vitality throughout McNair Hall is palpable with the start of the new academic year. The Jones School is continuing an upward trajectory, building upon the successes set by those in the past and those made today with increases in applications, enrollments, admission standards, placements, course evaluations, research productivity, Executive Education, Jones Partners, and alumni participation rates in the Jones Fund.

As the Jones School moves forward, we are guided by our mission and goals outlined in the strategic plan.

Two years ago we started the process to create and deliver the Rice MBA for Professionals. With the arrival of the second class for this program, we are pleased to report that the Rice MBA Class of 2009 (all programs) has grown by 50 percent over the Class of 2007.

In addition to welcoming new Rice MBA students this fall, we are opening our doors to Rice undergraduate students thanks to the newly-approved business minor. Eight new faculty members in a variety of disciplines and new staff in the Career Management Center and other areas have been recruited to better serve all Jones students during this growth period. Rice Executive Education continues to grow with open enrollment and custom programs and the Jones Partners has several new corporate and individual members. Part of the story in the current issue of the Jones Journal is about exciting developments in two of the strategic areas of excellence for the school, Healthcare and Energy. One of the articles highlights a recent faculty hire, Amit Pazgal, who strengthens our excellence in the core discipline of marketing.

As exciting as it is to look forward, our story merits a look at the past to recognize those that have contributed immensely to the school’s success — like that of our beloved dean, Gil Whitaker, who passed away in June. Gil revived and catapulted the Jones School into prominence when he transformed the curriculum, student services, and the building both internally and externally. Outwardly, he built an exquisite state-of-the-art facility, but internally, he created a foundation for growth by achieving accreditation for the school, doubling the number of alumni, students, and faculty, creating the MBA for Executives program, strengthening the Executive Education program and building long term relations for the Jones School’s future.

Gil’s work is a powerful example of dedication, and a story that accomplished great success — through the generous support from our alumni and from the Houston business community who recognize the importance of having a first-rate business school at Rice University.

We thank you for your contributions, then and now, as we continue to excel in developing principled, innovative thought leaders in global communities. I encourage you to continue your relationship and commitment to the Jones School by participating in our events and lecture series, reconnecting with fellow alums and professors, or just dropping by McNair Hall. We look forward to seeing you.

22 On the Cover: Gilbert Whitaker, Jr. former dean of the Jones Graduate School of Management.

26 30

Jones Journal

34 Columns 02 Around the School Undergrad Business Minor | Rice Business Plan Competition | Cerebration Case Competition

EDITOR + DIRECTOR OF JONES JOURNAL JULIA NGUYEN DIRECTOR OF MARKETING COMMUNICATIONS LAURA HUBBARD EDITORIAL CONSULTING SERVICE THE POHLY COMPANY JAN HESTER

14 New Faculty 16 New Appointments 18 A Tribute to the life of Gilbert Whitaker, Jr.

features

Warm regards,

Bill Glick Dean H. Joe Nelson III Professor of Management Jesse H. Jones Graduate School of Management Rice University (713) 348-5928 Bill.Glick@rice.edu

PHOTOGRAPHY GEORGE WONG JEFF FITLOW TOMMY LAVERGNE DOLORES THACKER PRINTING Western Lithograph jonesgsm.rice.edu

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Boundless Energy | 22 | By Chris Warren | Once a voice of dissent at Enron, Vince Kaminski now speaks out for carbon trading and emission credits Shop Talk | 26 | By Ann S. Boor | Associate Professor of Management Amit Pazgal conducts retail research to map out the marketplace

ART DIRECTION + DESIGN BUTLER DESIGN INC.

| Jones Partners | Career Management Center | Jones Fund update | NSHMBA 18th annual conference | Fulbright & Jaworski Energy Board Directors Conference | Rice Summer Business Institute

After School Special | 30 | By Michele Meyer | The Jones School’s Executive Education Program helps busy professionals add skills and knowledge to their repertoire without taking time away from the job

Different degrees of success | 34 | By Jenna Schnuer | Medical students have begun pursuing MBAs in addition to their MD degrees

39 Investiture 2007 award winners 40 Media Mentions 41 Class Notes 45 Alumni President’s Letter Jones Journal / Fall 2007

AROUND THE SCHOOL

Around the School

New Business Minor Rounds Out Undergraduate Education Beginning this fall, the Jesse H. Jones Graduate School of Management and Rice University will offer undergraduates an opportunity to gain a basic knowledge of business through the recently approved business minor program.

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jonesgsm.rice.edu

Bill Glick, dean of the Jones School

The business minor also broadens the university’s appeal to prospective undergraduate students. In an increasingly competitive environment, many top universities are offering similar business programs to round out their students’ undergraduate education.

The program comprises six threehour core courses:

Business Basics

Financial Management – provides students with a basic understanding of corporate financial management and the analytical tools needed to make finance and investment decisions

Creating Well-Rounded Students Rice is recognized for providing an exceptional undergraduate education, and the new business minor enables students to complement their traditional majors with an educational overview of the world of business.

Currently, Rice offers a Managerial Studies program that introduces students to the academic disciplines of business, primarily economics and psychology. The new business minor’s curriculum, by contrast, takes a more applied-knowledge approach, emphasizing practical business knowledge and core functional skills applicable to a variety of technical and artistic disciplines.

“Our aim is to introduce Rice’s outstanding undergraduates to the language of business and to help the university prepare students to lead and excel in a complex global society,” Jones School Dean Bill Glick said of the program.

“ Our aim is to introduce Rice’s outstanding undergraduates to the language of business and to help the university prepare our students to lead in a complex, global society.”

The coursework for the new minor focuses on the core functional areas of business education: communications, globalization, innovation, leadership, teamwork, and technical knowledge.

All courses are taught by high-caliber Jones School faculty — experts actively engaged in business management research and teaching who draw insights from many different disciplines and examine critical business issues from an integrated and hands-on perspective.

“We have designed the business minor to provide personal and professional development for students of all majors at Rice, whatever their career or educational goals may be,” said Rick Schell, director of the new program.

“By completing these courses, students will acquire knowledge and develop skills necessary to function effectively in a variety of social, cultural, economic, and civic organizations.”

Business Communications – emphasizes the strategy and practice of effective individual and team-based written and oral communications in business situations

Financial Accounting – covers financial statements, asset and liability valuation, income determination, and other issues related to financial information Leading People in Organizations – examines leadership, team processes, change management, innovation, job-related attitudes, work motivation, organizational culture and climate, and cross-cultural issues Marketing – introduces the role of marketing in business by examining strategy, planning, buyer behavior, product and service management, branding, distribution, promotion, and pricing

Strategic Management – explores the strategic issues involved in managing a business, including competitive and industry analysis, strategy formulation and implementation These courses are open to all Rice undergraduates, not just those enrolled in the program; however, some courses require prerequisites in statistics and economics.

This new program will provide added educational value and enhance the careers of current and future Rice students. “By making this program available through the Jones School, we assure the curriculum will reflect the mission of the school — to develop principled, innovative thought leaders in global communities,” Glick said.

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The Jones School and Rice University are offering funding opportunities to recognize supporters of the program’s exceptional quality and vitality. Prominent naming opportunities for the undergraduate business program include faculty chairs, professorships, and the Dean’s Fund. If interested, please contact Bridgette Miller at 713.348.3857 or Bridgette.E.Miller@rice.edu.

Jones Journal / Fall 2007

AROUND THE SCHOOL

AROUND THE SCHOOL

Rice Business Plan Competition: Experiential Learning for Entrepreneurs

Since the inception of the Rice Business Plan Competition seven years ago, more than 30 new companies have been launched, according to the Rice Alliance.

Standards are high, just like they are in the real world. The Rice University

Winners’ Circle

Legacy of Success

Business Plan Competition (RBPC),

Over the years, RBPC entry concepts have ranged from high-tech medical devices and treatments to long-haul fuel efficiency. This year’s submissions focused on biotechnology, life science, energy, information technology and sustainability.

The 2007 grand prize, valued at over $205,000 — including a $100,000 equity investment, $20,000 cash and more than $85,000 worth of business services — went to ResuRx Pharmaceuticals from Johns Hopkins University. ResuRX reduces the cost and time for drug discovery by determining new uses for existing drugs and re-introducing them to the market.

SteriCoat from the Massachusetts Institute of Technology took second place with their creation of the first implantable antimicrobial coating for medical devices.

The third place winner was Brigham Young University’s Precision Surveying Solutions, a company that sells a high-productivity, user-friendly data collection instrument to control robotic measurement tools and Global Positioning Systems (GPS) equipment for civil engineers and land surveyors.

Sponsoring the RBPC requires a significant financial commitment. The Grand Prize of a $100,000 equity investment comes from The GOOSE Society of Texas, six successful entrepreneurs committed to showcasing Houston as a friendly place for start-ups.

This group includes Jones School faculty members Leo Linbeck, III and Jack Gill, along with Rod Canion, Arthur Ciocca, Terry Giles, and Michael Holthouse.

Other cash prizes came from Shell Technology Ventures, The Dow Chemical Company, Finger Interests, Murphree Venture Partners, Austin Ventures, Palo Alto Software and more. In-kind prizes were donated by the Houston Technology Center (HTC), Silver Fox Advisors, Brand Extract and The Padgett Group, Bank of America, Continental Airlines, and InfoVine Interactive.

hosted by the Rice Alliance for Technology and Entrepreneurship and the Jones School, amounts to a true-tolife simulation of what it takes to move a great idea from concept to business reality — invaluable experience for any budding entrepreneur.

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This year, the RBPC received about 150 business plan submittals from some of the most prestigious MBA/graduate programs around the world. The on-site competition, which began March 22 and progressed over three days, represented the final round for 36 finalist teams for the coveted award of being recognized “best of the best.”

More than $345,000 in cash and prizes is guaranteed to winning teams — a 33 percent increase over last year’s awards. This increase reinforces RBPC’s position as the largest and richest intercollegiate business plan competition in the world.

Learning from the Experts Each year, the RBPC selects a judging panel of more than 150 venture capitalists, investors, and business executives who are considered experts in early-stage investing. Their mission?

To decide which business venture they would be most likely to fund. jonesgsm.rice.edu

The opportunity to interact with this group of experts is one of the many benefits for participants. Teams also receive invaluable feedback on their ideas and presentation skills during the course of the competition.

“The Rice Business Plan Competition was the single most powerful experience of my first year in the MBA program, and it really became an obsession during my second year,” said Robert Norsworthy, Rice MBA ‘07 and CEO of the student venture, Cateko Diagnostics. “The challenge is to bring a real company with real potential to the event — nothing else has a chance.” Norsworthy and the Rice MBA team submitted a business plan built around two medical tests designed to predict a woman’s risk of pre-term labor.

At the RBPC, they saw an opportunity for the firm to secure funding and go to market in three years. “Part of the excitement of the competition is that there are a lot of investors here,” he added.

Rice MBA team Cateko Diagnostics submitted a business plan built around two medical tests designed to predict a woman’s risk of pre-term labor. From left, Robert Norsworthy, CEO of the student venture, Heather Borders and Michael Lowe, all class of 2007.

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Investing in the Future Since the inception of the Rice Business Plan Competition seven years ago, more than 30 new companies have been launched, according to the Rice Alliance. Looking to the future, there’s every reason to expect that the next RBPC, set for April 3-5, 2008, will continue to attract top talent, provide unique opportunities to MBA students from around the world, and encourage the development of exciting Houston-area start-ups.

Jones Journal / Fall 2007

AROUND THE SCHOOL

AROUND THE SCHOOL

Rice MBA Students Place Third in Global Business Challenge Rice MBAs ‘07 Kianti Brown, Anna Reeve, Jon Surratt, and Jay Pertuz placed third among 568 teams from around the globe at the second annual Cerebration 2007, a global MBA challenge organized by the National University of Singapore (NUS) Business School. The prestigious competition, held in Singapore March 28-31, judges participating teams on their ability to develop a business plan for a major corporation interested in expanding their business internationally.

“I think I speak for all members of the Rice team when I say that this was an exciting experience for us all,” said Jon Surratt. “Although the process was very intense, we were able to work together to create a thorough, actionable plan for our case sponsor. We took what we learned in our courses and effectively applied that knowledge to a real-world globalization effort.”

Teams were given three case companies from which to choose: OSIM, a branded healthy

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lifestyle products company; ThaiExpress, a Thai restaurant chain; and internationally recognized customer service speaker and master trainer Ron Kaufman’s UP Your Service!

College. They then had to select a target market for the case company’s proposed expansion. Judges evaluated the plans through a three-phased process and provided detailed feedback.

The Rice MBA team — “Illuminate” — designed a strong business plan for Kaufman’s UP Your Service! College which presented strategies for expanding the business to meet global demand while addressing the need to maintain the high level of service expected from certified UP Your Service! College course leaders.

In the final round of the competition the six finalist teams — including the Rice team — presented their business plans to a panel of leading industry experts and high-level management of their chosen company.

“The favorable responses of both the judges and the case sponsor were a great reward for all our hard work,” Surratt added. “We’re all proud of this accomplishment.”

jonesgsm.rice.edu

A Year of Success for Jones Partners Jones Partners Opening Doors

Rice MBAs ‘07, Kianti Brown, Anna Reeve, Jon Surratt, and Jay Pertuz, secured third place among 568 teams in the second annual Cerebration Global Business Challenge.

The Jones Partners corporate membership program is in full swing.

Corporate membership offers companies an opportunity to partner with the Jones School and provides corporate members with benefits such as multiple employee attendance at Partners events, discounts for lifelong learning in open enrollment courses and increased visibility within the Jones School community, including students and the Career Management Center.

We are pleased to welcome our new member companies: National Oilwell Varco Universal Weather & Aviation Baker Hughes Incorporated Global Geophysical El Paso Corporation Current member companies include: FMC Technologies Oceaneering International Stewart Title Company Shell Lehman Brothers To learn more about this program, visit jonesgsm. rice.edu or email corporate. relations@rice.edu.

The Jones Partners opened 2007 with a Thought Leadership Series featuring Stewart Morris, Jr., president and co-chief executive officer of Stewart Information Services Corporation, and Anthony Gorry, the Friedkin chair of management at the Jones School. Dr. Gorry outlined the impact information technology has on organizations and society, noting barriers one faces in today’s electronic environment.

Stewart Title is committed to a future of electronic real estate closings, which will streamline the buying and selling process, enhance customer service and ultimately, increase shareholder value.

Student officers of the M. A. Wright Fund presented to the Jones Partners and members of the financial community insightful messages regarding their management of more than $850,000 in Fund assets. The group shared the strategies, methodologies, and decisions that enabled them to post returns of 1.96 percent.

At the recent Partners Hot Research Topics breakfast, the keynote presentations demonstrated the range of research by our faculty. Margarethe Wiersema, professor in management presented on “CEO Dismissal — Hard Times in the Executive Suite” and Seethu Seetharaman, associate professor of management gave a lecture on “Optimal Pricing Strategies for an Automotive Aftermarket Retailer.”

On March 22, the Jones Partners were honored to host French Minister of Foreign Trade and Investment

Christine Lagarde, who presented her insights in “Toward a Responsible, Fair, and Sustainable Globalization.”

Subha Barry (’85), managing director, Global Head of Diversity & Inclusion at Merrill Lynch, and Larry Stuart, adjunct professor of management and partner at Legge, Farrow, Kimmitt, McGrath & Brown LLP, were guest speakers for “Leadership in Global Diversity and Inclusion — Why it Matters,” the final topic for the 2006-2007 Thought Leadership Series.

The Jones Partners closed the year with Mike Alsup and Dr. Madeleine Duvic hosting an end–of-year celebration in their home. Recognizing a year of impressive growth, the group celebrated the dedicated efforts of its board, members, Jones School Faculty and Rice and Houston community.

“Diversity is much more than just a business imperative; it’s a mindset that guides your life.”

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Subha Barry (’85), managing director, Global Head of Diversity & Inclusion at Merrill Lynch

Jones Journal / Fall 2007

AROUND THE SCHOOL

AROUND THE SCHOOL

Career Management Center: Helping Students Get Careers on Track The CMC Mission As a top-tier business school that attracts students from all over the world, the Jones Graduate School of Management distinguishes itself by one of the key services, its career management services.

Formerly known as the Career Planning Center, the Career Management Center (CMC) changed its name to more accurately reflect the services provided.

“The CMC serves an integral role in aiding students define their unique career visions and goals,” said Deanna Fuehne, director of the CMC. “We provide a range of services such as securing an internship or full-time job placement, and counseling alumni on career progression.”

Before a candidate interviews for a position, a CMC counselor will guide the student through a career discussion to help

Filling the Need As student enrollment increases across programs, the CMC has added new key staff to keep pace with the growth.

Expected enrollment for the Full-time MBA class of 2009 is approximately 128 students, a 22 percent increase from the previous year. About 113 students will comprise the MBA for Professionals program class of 2009, a 58 percent increase from last year. Rice undergraduates participating in the newly-

Attracting the Best With the help of the CMC, the Jones School continues to attract a diversified group of top employers. A large proportion of the class of 2007 students, 72 percent, obtained full-time employment through the activities generated by the CMC. At

Employment by Industry

44 percent of the Jones School’s top recruiters represented Fortune 500 companies: AIG

Ernst & Young

Lionstone

Alvarez and Marsal

Exxon Mobil

Lyondell

AT&T - SBC

FMC Technologies

McKinsey & Company, Inc.

BearingPoint

Goldman Sachs

Merrill Lynch

BMC Software, Inc.

Hanover Company

Morgan Stanley

ChevronTexaco Corporation

Hewlett Packard

PepsiCo/Frito Lay

Citi

Hines Interests

Rackspace

ConocoPhillips

Imperial Sugar Company

Shell

Continental Airlines, Inc.

Intel

TXU

Cooper Industries

JP Morgan Chase

UBS

Deloitte

KPMG

UHY

Deutsche Bank

Lazard

Weingarten, Realty, Inc.

Direct Energy

Lehman Brothers

Yum! Brands

jonesgsm.rice.edu

growing, dedicated alumni base, to create networking and career opportunities for students.

This year 81 percent of our graduates secured employment at graduation, compared with 69 percent last year. As of July 3, for graduates of the Full-time MBA class of 2007 the average base salary was $89,430*, with an average signing bonus of $18,440**.

align his/her career goals with the right company and functional area.

In addition to career counseling, the CMC provides a variety of workshops and professional development seminars. Events such as on-campus information sessions, employer and national organization conferences, treks to Wall Street or other industry sectors, and club networking events provide additional opportunities for students to network, gain exposure and refine their career goals.

Top Recruiters jj/

its recent recruitment fair, the CMC hosted 52 companies and posted nearly 150 fulltime positions. More than 200 companies accessed the online resume book. The CMC also draws from the Jones School, with its

Employment by Function

approved business minor program will also have access to CMC services.

Maya Nandakumar, ’07, who currently works for FMC Technologies said, “The Career Management Center played an important role in my job search. They have the right human resources, databases, and career tools to guide a candidate to find the right job.” She added, “Marie Bergeron, my counselor, helped me hone my career interests, refine my list of companies and alumni contacts. It was just as important to her to help me with interviewing skills and provide me with the confidence and ability to negotiate my salary and position. This helped me leverage my work experience which actually resulted in my company offering me a higher position and an increase in my starting salary.”

*As of May 23, 2007; baseline salary only; excludes annual and signing bonuses and overtime **Average signing bonus and average guaranteed bonus calculated according to figures reported by those students accepting jobs that included such bonuses.

Data prepared according to CSC standards.

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Jones Journal / Fall 2007

AROUND THE SCHOOL

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AROUND THE SCHOOL

Jones Fund 2007 Campaign Receives Unprecedented Support

2007 Class Gifts Show Excellent Participation

Thanks to contributions from our alumni and loyal friends to the Jones Fund, for 2007 we raised a record-breaking $616,519 in gifts, pledges and intended matches. Of the total amount, gifts accounted for $350,284. The Rice MBA and MBA for Executives classes of 2007 also contributed to the Jones Fund by designating their class gifts and pledges to the annual fundraising effort.

Overall pledges and gifts to all Jones School funds this year were $8.28 million, with 19 percent of alumni making contributions.

Alumni participation continues to be an important ranking metric

The Jones School marked a milestone at Investiture on May 11 when 2007 Rice MBA and MBA for Executives classes showed their support by giving more than $300,000 to the Jones Fund through the class gift program.

Jennifer Hatten and Mike McLaughlin, leaders of the MBA 2007 class gift committee, presented a check to Dean Bill Glick in the amount of $151,145.

This represented gifts, pledges, and corporate matches from an overwhelming 95 percent of their classmates.

MBA for Executives 2007 class gift committee leaders Samantha Ehlert and Rauli Garcia offered a check of $163,570, representing gifts, pledges, and corporate matches from 81 percent of their classmates.

The Jones Fund, the Jones School’s annual giving priority, supports student scholarships, faculty assistance, technology, competitions, and other key program elements. We are deeply grateful to our loyal students, now alumni, who gave so generously to their new alma mater.

for business schools. Additionally, the Jones School receives 56 percent of its funding from degree-program tuition. Jones Fund gifts, revenues from endowment, and other sources, provide the remainder of the funding. Jones Fund gifts are crucial for recruiting and retaining top talent, particularly for scholarships and key professorships. Innovative programmatic elements, such as the new undergraduate business minor, the proposed Ph.D. in business, and the areas for excellence in energy, health care, real estate, entrepreneurship, and banking and financial services also benefit from Jones Fund donations.

The new 2008 giving year began in July, and we look forward to an even more successful year. We hope to exceed $400,000 in gifts to the Jones Fund and reach an overall giving participation level of 25 percent. With your help, we can achieve these goals.

On behalf of Jones Fund co-chairs Subha (’85) and Jim (’84) Barry and all of the Jones School community, we would like to thank everyone who generously donated to the Jones Fund last year and ask for your support again this year.

To contribute online, please visit www.giving.rice.edu and select the Jones Graduate School of Management as your designation.

To make a gift via mail or phone, please make checks payable to Rice University and send to: Bridgette Miller Rice University Jones Graduate School of Management, MS 531 P.O. Box 2932 Houston, TX 77252-9900 713.348.3857

jonesgsm.rice.edu

National Society of Hispanic MBAs 18th Conference Held in Houston The Jones Graduate School of Management will be the inaugural lead academic sponsor for NSHMBA’s 18th Annual Conference and Career Expo, “Leading With Influence” happening October 4-6 at the George R. Brown Convention Center in Houston.

NSHMBA, a nonprofit organization dedicated to fostering Hispanic leadership through graduate management education and professional development, will provide MBA students and business professionals from across the nation prominent access to professional development seminars, events for networking and more.

The national conference has grown every year — last year’s conference held in Cincinnati, Ohio attracted a record of 6,700 attendees. The attendance at the Houston conference is expected to exceed 8,000. Please visit www.nshmba.org for more information.

Rice Launches Unique Educational Program for Energy Board Directors On October 9 and 10, Rice University and Fulbright & Jaworski L.L.P. will introduce the inaugural Energy Industry Board Conference, a directors educational program designed for board members of energy and chemical companies. Corporate governance experts and premier industry leaders from international energy companies such as Anadarko, Halliburton and Shell will be on hand at the Jones School to discuss today’s unique challenges that face board members of the energy industry.

Conference speakers include Kurt Eichenwald, best-selling author; Former President of Rice University S. Malcolm Gillis; Anadarko Petroleum Corporation President and CEO James T. Hackett; and Justice Jack B. Jacobs, Delaware Supreme Court, among others. To register or learn more visit: jonesgsm.rice.edu/boardconference.

The program is accredited through Institutional Shareholder Services (ISS).

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Jones Journal / Fall 2007

AROUND THE SCHOOL

AROUND THE SCHOOL

Training Future Leaders

Rice Summer Business Institute Opens Eyes and Doors

RSBI Sponsors

Money & Business 101 Speakers

The 2007 Rice Summer Business Institute was underwritten by Merrill Lynch. Corporate sponsors are AIM Investments, Bridgeway Capital Management, ConocoPhillips, the El Paso Corporation, and the Robert and Janice McNair Foundation. Proceeds from the 2007 MBA and MBA Professionals Spring Formal also benefited the Institute.

Jones School faculty and administration join representatives from the Institute’s partners as guest speakers.

This year’s presentations included: Dean Bill Glick – Welcome/Leadership/Being the JGSM Dean Professor Gustavo Grullon – The Free Enterprise System n Professor Barbara Ostdiek – The Financial Markets n Associate Dean Bill Lee – How Businesses Work n Professor Douglas Schuler – Business Ethics – A Case Study n Professor Andrew Perkins – Marketing/Brand Management n Professor Kim Kehoe and Teaching Assistant Kenitra Brown (Rice ’07) – Leadership n Assistant Dean Sean Ferguson (JGSM ’01) – Rice MBA Programs n Audrey Fersten (JGSM ‘02) of Bridgeway Capital Management – Equity Investing n n

Mark Cory (RSBI Instructor ’05, ’06) of Protiviti – Negotiation Tamara Siler (Rice ’87) of Rice Office of Admissions – The College Admissions Process n Deanna Fuehne of JGSM Career Management Center – The World of Business Careers n Andrea Hodge of Management Leadership for Tomorrow – Tools and Networking for Future Minority Business Leaders n n

Students With Promise

Before participating in the third annual

Expanding Horizons

Rice Summer Business Institute (RSBI)

Money & Business 101 is hosted by the Jones School, in collaboration with Project GRAD, a nonprofit organization dedicated to increasing high school and college graduation rates in under-served communities. Money & Business 101 students spend 70 intensive hours over their summer break analyzing stocks, learning about the world of energy, and connecting with some of the most prominent names in Houston business.

The two-week curriculum was designed

by Professor Jill Foote, Money & Business 101 director and director of the El Paso Corporation Finance Center. Professor Barbara Ostdiek serves as the Institute’s executive director, and Professors Gale Wiley, Kim Kehoe and Beth O’Sullivan joined Foote as Institute instructors.

The RSBI’s main goal is to expand its students’ horizons in terms of possible career paths and thus sow seeds for Houston’s next generation of diverse business leaders.

“Money & Business 101” program this past summer, Raymond Arevelo, a Jefferson Davis High School student, didn’t have much understanding of the stock market. How does it operate? jj/12

When should you invest in a stock?

Two weeks later, Arevelo knew more than just stocks. He and 46 other junior and senior high school students from Houston’s low and moderate income communities also gained an introduction to the world of business. The topics varied and included corporate organization, stock and lending markets, business strategy and planning, business leadership and ethics, and new production information. After completing the program, Arevelo and five of his classmates earned competitive internships at Merrill Lynch, the Money & Business 101 underwriter, working in the commodities and global private clients’ divisions.

jonesgsm.rice.edu

In order to be selected for the program, students must complete an application, write two short essays, and receive a strong recommendation from their high school counselor or college coordinator. The Jones School works closely with its feeder schools — Davis, Reagan, Sam Houston, Yates, and Wheatley high schools and Chinquapin, KIPP, and YES preparatory schools — to identify the brightest and most ambitious students for the Institute.

Hands-On Learning

The Money & Business 101 instructors included Professors Beth O’Sullivan and Gale Wiley, Teaching Assistant Kenitra Brown, Program Director and Professor Jill Foote, and Professor Kim Kehoe.

The education that students receive through Money & Business 101, however, is not purely academic. Students dive into the curriculum with hands-on exercises focusing on business communications and business cases like a stock market trading simulation in the El Paso Corporation Finance Center.

The program also places heavy emphasize

on communication skills, calling for Money & Business 101 students to perform public speaking exercises and presentations, refine PowerPoint skills, and enhance their professional etiquette.

Field trips to the program’s underwriter and sponsors provided an important glimpse into “the business world.” Money & Business 101 students were treated to custom tours of Merrill Lynch and ConocoPhillips, and Jones School alums hosted tours at AIM Investments and the Houston Texans front office.

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One Step Closer The benefits of attending Money & Business 101 are long-lasting — after successfully completing the Rice Summer Business Institute, HISD students are one step closer to obtaining a $4,000 college scholarship from Project GRAD. In addition, students develop a relationship with the Houston business community and the Jones School through ongoing educational and career planning information and a mentoring program.

Jones Journal / Fall 2007

AROUND THE SCHOOL

AROUND THE SCHOOL

Jones School Welcomes New Faculty To meet the demands of a growing student base, the Jones School has added eight new professors to the teaching faculty. These individuals, with research interests in an array of disciplines, bring an even greater level of experience and expertise to our programs.

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teven S. Crawford has joined as assistant professor in Accounting. His research interests lie in financial reporting, international accounting, and financial analysis. Professor Crawford holds many awards and fellowships, including the Deloitte & Touche Foundation Doctoral Fellowship and the Charles T. Horngren Fellowship and Doctoral Fellowship from the University of Chicago.

Professor Crawford has served as a lecturer at the University of Chicago, where he earned an MBA and Ph.D. in Accounting. He also taught at Brigham Young University, where he earned his B.A. and Masters in Accounting.

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rik Dane joins the Jones School as assistant professor in Organizational Behavior. His research, which has appeared in the Academy of Management Review, focuses on how professionals leverage their experience and intuition to make decisions and solve problems.

Professor Dane is currently engaged in several research projects examining conditions that foster effective intuitive decision-making. He holds a B.A. and MBA from Tulane University and a Ph.D. in Organizational Behavior from the University of Illinois.

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aren M. Donges has joined the Jones School faculty as lecturer in Business Communications. Professor Donges brings a wealth of teaching and corporate experience. Previously, she taught at the University of North Florida, Northern Kentucky University, Thomas More College, Miami University, and University of Cincinnati. Before embarking on her teaching career, she worked in a variety of capacities including consulting, development and managing.

Professor Donges earned her M.A. in Communication and a B.S. in Organizational Behavior at Miami University.

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rashant Kale has joined the Jones School as associate professor in Strategy. He previously served on the faculty of the University of Michigan, where he held an excellent teaching and research record. Professor Kale has been recognized both nationally and internationally for his work that shows how companies can enhance their competitiveness or growth through alliances, joint ventures or acquisitions. His research has garnered many awards and has been published in top-rated journals such as the Strategic Management Journal (SMJ), Harvard Business Review, Managerial and Decision Economics, MIT Sloan Management Review, California Management Review, and European Management Journal.

Professor Kale holds an MBA from the Indian Institute of Management Ahmedabad, a M.A. in Managerial Science & Applied Economics, and a Ph.D. in Management from the University of Pennsylvania.

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ishad Kapadia, assistant professor of Finance, comes to the Jones School after completing his Ph.D. at the Kenan-Flagler Business School, University of North Carolina at Chapel Hill.

Previously, Professor Kapadia worked at KPMG Consulting in London and Bombay on projects that included business strategy, technology selection and risk management for financial services firms. His research is focused on empirical asset pricing and has appeared in the Journal of Financial Economics. Professor Kapadia holds a Ph.D. in Finance from the University of North Carolina, an MBA from the Indian Institute of Management Bangalore, and a B.S. in Mathematics at St. Xavier’s College.

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ikas Mittal has been named the J. Hugh Liedtke professor in Marketing. Prior to his appointment at Rice, Professor Mittal was the Thomas Marshall professor of marketing at the Katz Graduate School of Business and an associate professor of psychiatry at the School of Medicine, University of Pittsburgh.

Professor Mittal has received many awards for his research, including the O’Dell Award for an article published in 2001 in the Journal of Marketing Research. He has published extensively in leading marketing journals, including Journal of Consumer Research, Journal of Marketing, Journal of Marketing Research, and Marketing Science, and his research related to healthcare also has appeared in top medical journals. In 2003, due to his research productivity and impact, he was selected to be one of 20 participants worldwide in the Young Scholars Program sponsored by the prestigious Marketing Science Institute. Many organizations have sought Professor Mittal to deliver customized management courses, and he has helped several firms develop service strategies for improving customer satisfaction and profitability.

He currently serves on the editorial review boards of seven journals.

Professor Mittal holds a B.A. in Business Administration from the University of Michigan, Ann Arbor and a Ph.D. from the Temple University.

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cott Sonenshein has joined the Jones School as assistant professor in Organizational Behavior. His research is focused on how to make change more effective. One stream examines how individuals/groups interpret, influence and communicate about the strategic change process. Another concentrates on tactics individuals use to sell social change at work and manage intractable issues such as those surrounding the natural environment. His research, for which he has been awarded several grants, can be found in many of the field’s premier journals like the Academy of Management Journal, Academy of Management Review and Organization Science. Sonenshein currently serves on the editorial board of Management Communication Quarterly. Professor Sonenshein holds a B.A. in Business Ethics from the University of Virginia, Charlottesville, Masters in Philosophy, Management Studies from the University of Cambridge, and Ph.D. in Management and Organizations from the University of Michigan, Ann Arbor.

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avid Tobin returns to teaching as a lecturer in Business Communications at the Jones School. After teaching English at both Colorado State and Emory Universities, he spent 25 years in advertising and media, first with Ogilvy & Mather and then as creative director and senior vice president at Richards/ Carlberg. Professor Tobin has written and co-produced national television commercials, managed speechwriting for C-level executives, and developed multimedia advertising campaigns for high-profile clients such as Shell Oil, IBM, the Nuclear Energy Institute, the Houston Chronicle, Central Market, METRO, the Houston Texans, the Museum of Fine Arts Houston, and more. He holds a B.A. from the University of Michigan and an M.A. and Ph.D. from Princeton University. Tobin has published two books, Teaching as Performing and The Presence of the Past: T.S. Eliot’s Victorian Inheritance.

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Jones Journal / Fall 2007

AROUND THE SCHOOL

AROUND THE SCHOOL

New Appointments in Administration

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ean Ferguson, MBA ’01, appointed Assistant Dean for Degree Programs Sean O. Ferguson, MBA ’01, has recently been named assistant dean for degree programs at the Jones School. In his new position, Ferguson oversees the administrative activities of the School’s three MBA programs, the admissions office and the career management center. He is focused on three major areas: metrics-based process improvement, promoting one culture across the MBA programs, and working with internal and external stakeholders to help grow and develop the Jones School degree programs.

Before joining the Jones School as MBA program director in 2005, Ferguson spent several years in management consulting and the software industry, at Cap Gemini Ernst & Young in its transformation consulting practice and with PROS Revenue Management as the product manager for its analytics and execution software products. Before getting his Rice MBA, Ferguson was a business line manager for Procter & Gamble’s Bounty brand.

He received his B.S. in Engineering from the University of Michigan, Ann Arbor.

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ean Burnett, MBA ’06, named Director of the Rice MBA and MBA for Professionals Programs Sean Burnett, MBA ‘06, has returned to the Jones School as director of the Rice MBA and the MBA for Professionals programs. Burnett is responsible for leading the activities of the MBA program office, administering academic policy matters, counseling students on academic and professional matters, and working to build and maintain Jones School relationships within the Rice community and with all of its stakeholders.

Burnett comes to the Jones School from Yum! Brands International in Louisville, Kentucky, where he worked as a senior strategic finance analyst in the corporate finance division. Prior to receiving his MBA, Burnett was a managing partner for Outback Steakhouse, Inc., working in operations management and human resource development for 10 years. He also has experience in leading advertising agencybased account service positions for firms in the Greater Houston Area. Burnett received his B.A. in Advertising from the University of Texas at Austin.

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elissa Blakeslee named Rice MBA Director of Admissions Melissa Blakeslee has returned to the Jones Graduate School of Management admissions office as director of admissions for the Fulltime MBA and MBA for Professionals programs.

Previously, she served in the office as an associate director of admissions from 2004 to 2006. In her new role, Blakeslee is responsible for recruiting and talent acquisition, developing and implementing initiatives to improve admission processes and procedures, and engaging in corporate admissions development activities that attract world-class applicants and students to the Rice MBA programs.

Blakeslee rejoins the admissions team after spending the past year working as the marketing director for the Rice Alliance for Technology and Entrepreneurship.

Prior to joining the Jones Graduate School of Management, Blakeslee worked in brand management at Coca-Cola where she led the launch of a new line of fruit drinks. She also worked at Ford Motor Company, performing investment analysis as part of a product development team. While employed by Ernst & Young, she worked in assurance services and obtained her C.P.A. Blakeslee holds an MBA from the Kellogg School of Management at Northwestern University and a B.B.A. from the University of Michigan.

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en Williams, joins as Director in Energy Executive Education Kenneth M. Williams is the new director of energy in Energy Executive Education at the Jones School. In this role he is responsible for the development and expansion of strategic growth initiatives that include relationships with major energy and Oil & Gas companies.

Prior to assuming his responsibilities at Rice, Williams concluded a distinguished career in the banking industry including serving as executive vice president in the Houston region at Frost Bankers and prior to that, 14 years at Texas Commerce Bank in Houston (now J.P.Morgan Chase.)

Williams has been active through board positions or memberships with the Association for Corporate Growth, MIT Enterprise Forum, Energy Finance Group, the Independent Petroleum Association of America, Rice Alliance for Technology and Entrepreneurship, the Jones Partners, and Greater Houston Partnership.

He earned a B.B.A. degree in Marketing and MBA degree in Management at Texas Christian University and a degree with distinction from the SMU Graduate School of Banking in Dallas.

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on-Paul Estrada named Web Manager for Jones School Jon-Paul J. Estrada will assume the role of web manager for the marketing communications department at the Jones School in mid-August. In this position, Estrada will oversee, maintain and develop the school’s website, bringing emphasis in the areas of: web-based marketing, functional design, multimedia interactivity, statistical site analysis, accessibility and project management. He was recently honored with a 2007 IABC Bronze Quill Award of Excellence for the interactive media design, Houston: It’s Cooler Than You Think.

Before joining the Jones School, Estrada spent the last seven years as the web production coordinator for Public Affairs at Rice University. He also has successfully partnered in a local media firm, Mackenzie Media, as the director of web and new media since 2003. Before he came to Rice, Estrada was the webmaster for Metricom, Inc., a pioneer in high-speed, wireless internet solutions. He received his Bachelor of Fine Arts in Advertising/Graphic Design from Sam Houston State University in Huntsville and is a graduate of the prestigious High School for the Performing & Visual Arts in Houston.

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Jones Journal / Fall 2007

A Tribute to the Life of Gilbert Whitaker, Jr. (1931-2007) To the Jones School community, Gilbert Riley Whitaker, Jr., Rice alumnus ‘53, will best be remembered as a leader whose influence continued to reverberate even after he completed his tenure as dean.

Rice alumni, academic and business leaders, and friends of the Jones School admire and praise him for creating the solid foundation that has led the school’s continued success. Gil found great joy in interacting with students and faculty, advising them and taking pride in their growth and accomplishments. He was a lifelong student of economics, history, and leadership, gleaning ideas from biographies and scholarly articles as well as from his colleagues. jj/18

Ruth and Gil’s first date was in December of 1952. The happy couple 47 years later, December 1999.

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A Leader in the Making “But of a good leader, Who talks little, When his work is done, His aim fulfilled, They will say, We did it ourselves.” Lao Tsu, Chinese All who have worked with him experienced his embodiment of this philosophy.

At a young age and throughout his distinguished career, Gil’s sense of leadership was shaped by various mentors and teachers. His father, Gilbert Riley Whitaker, Sr., was one of the most influential persons in his life. As a child, Gil observed his father working as an electrical engineer, supervising

and directing crew members in critical situations. Young Gil was deeply impressed by the confidence and trust his father placed in his colleagues and the loyalty which he received in return. His father’s staid and professional leadership style influenced Gil’s idea of what creative leadership meant.

In 1949, Gil left his native Oklahoma to study electrical engineering at Rice University. His professors at Rice had a profound effect on the direction of his education and eventually, his career. When his lack of aptitude for engineering became evident, he followed his fascination with economics and history. As a junior, he switched his studies to economics.

While at Rice, Gil was a member of the Naval ROTC. Upon graduation in June 1953, he was commissioned an ensign in the United States Navy and assigned to the destroyer U.S.S. Isherwood, serving in both the Mediterranean and Pacific for the next three years. He served as an officer in anti-submarine warfare and in gunnery, but he especially enjoyed his collateral stint as an education officer, helping crew members find ways to continue their education.

Gil’s relentless commitment to see the institution designated as a top-tier business school invigorated the spirit of the Jones School and remains a large part of his legacy.

Newlyweds Ruth and Gil Whitaker, Jr. met in Anderson Hall at a Rice fellowship of the Presbyterian Student Association (PSA) as students at Rice University.

Love for Education Even before graduating from Rice, Gil knew he wanted to be a university professor. He began studying for his academic career at Southern Methodist University in Dallas and continued at the University of Wisconsin at Madison. His first teaching job was as professor of economics at Northwestern University.

Although Gil enjoyed teaching, he became more interested in administration, where he could witness first-hand creativity blossom in people.

Gil served as associate dean and professor of business economics at the Washington University Graduate School of Business Administration in St. Louis. Karl Hill, dean of the business school at Dartmouth College and Washington University in St. Louis, was also an important force in Gil’s life. Hill, whose style resembled Gil’s father’s, was a major factor in his development as a leader and in following his administrative career path. After Washington University, he moved on to serve as dean and professor of business economics at the M.J. Neeley School of Business at Texas Christian University. He then joined the University of Michigan’s Ross School of Business as dean and professor of business economics and later as provost and executive vice president for academic affairs.

While serving on the faculty of other universities and bringing business schools such as the University of Michigan’s to prominence, Gil remained a devoted alumnus of Rice, taking a special interest in the growth of its business school.

Twenty years after the Jones School’s 1977 inception, he was called upon to serve as dean. In 1997, with great enthusiasm and support from the Rice community, he took the helm as dean of the Jones School.

A New Era During his eight-year tenure, Gil brought success and revival to the Jones School.

By encouraging aggressive recruiting efforts, he oversaw expansion of the faculty, staff and student population. He also saw the MBA program through accreditation by the Association to Advance Collegiate Schools of Business (AACSB) and greatly enhanced the program by incorporating experiential education like the Action Learning Project. He established the MBA for Executives program and began laying the groundwork for the undergraduate business minor, which commenced fall 2007.

With the support of the Rice administration, Jones School support groups, and the Houston business community, Gil sought and ultimately secured funding to construct a new home for the Jones School, the 167,000-square-foot award-winning Janice and Robert McNair Hall. To demonstrate their commitment to the future of the Jones School, in 1998 he and his wife, Rice alumnae Ruth Tonn Whitaker ‘68, made a generous contribution towards construction of the new building. The Business Information Center is named in their honor.

Ten years after Gil’s return to campus, the Jones School continues on its trajectory of growth and recognition, built on a community that inspires students to achieve success through learning and collaboration. This may be Gil’s greatest legacy — instilling passion for lifelong learning that will produce the next generation of principled, innovative thought leaders in global communities.

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Jones Journal / Fall 2007

Remember our former dean Gilbert Whitaker, Jr.

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“Gil’s commitment to Rice and the Jones Graduate School has heightened the quality of leadership, instilled ethical business practices, and nurtured the entrepreneurial spirit throughout the business community.

He was a valued adviser and I am deeply grateful for the guidance he provided me and to the many people he influenced at Rice and throughout the world.”

Bill Glick, dean Jesse H. Jones Graduate School of Management and H. Joe Nelson III professor of management

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new life into the Jones School and made it the pride not only of Rice but of Houston.

Beyond those great contributions, he was a valued counselor to me, the Rice Board of Trustees and academic leaders across our campus and beyond.”

David Leebron, president, Rice University “Gil was always a wonderful ambassador for the Jones School, but also a great person to be around and learn from. He taught by example — he showed that you could have very high standards and demand excellence without being demanding in demeanor.

A firm and confident approach with a big smile went a long way.”

“Gil was a wonderful person in addition to being a great dean. He was so unassuming in the pursuit of his goals that it was disarming, yet he had the persistence of an Edison.

His leadership of the Jones School, taking it from an undistinguished place to being one of the best in the southwest, was truly remarkable. He earned the confidence of the Board of Trustees that led to increased investment in the School allowing the expansion of the school and attraction of a distinguished faculty.

He will be missed but not forgotten for the mark of excellence he placed on the Jones School and Rice University.”

Robert C. McNair, founder, chairman, and CEO, Houston Texans; chairman, McNair Foundation “Gil Whitaker’s leadership led a transformation of the Jones School of Management. He did so by energizing the entire faculty; securing the support of the Houston business community; and making this task a priority of the entire Rice community. In the process of doing so, he also became a de facto adviser and mentored much of the Rice leadership and thereby influenced almost every new Rice initiative during a period of extraordinary

Lynn and John Elsenhans, president and CEO, Shell Oil Products, U.S. and president, Shell Oil Company, Shell U.S. Country Chair Background: Melodese Kilpatrick Whitaker and Gil Whitaker in Stillwell, Oklahoma, February 1932.

Left: Gilbert Riley Whitaker, Sr. and Gil in Stillwell, Oklahoma, February 1932.

activity. By the time of his death, he had earned the enormous respect and affection of all who knew him.”

“I believe there has never been a more exciting time to be at the Jones School.

In my opinion, the school has been monotonically improving from the start — sometimes at a faster pace, sometimes at a slower pace, but always improving. And no one had more to do with that trajectory than Gil Whitaker. His leadership was extraordinary.

Gil was fond of quoting Lao Tsu: “But of a good leader, Who talks little, When his work is done, His aim fulfilled, They will say, We did it ourselves.” Perhaps it is ironic that, although this was the way Gil would have preferred to have had us think about things, no one — and I mean no one — would make that mistake.”

E. W. Barnett, Board of Trustees, Rice University and Baker Botts L.L.P.

Randy Batsell, Ph.D., Jesse H. Jones Distinguished Associate Professor of Management

“Rice has had no more loyal graduate and visionary leader than Gil Whitaker.

When you look at the stunning building that houses the Jones School of Management, you see just one manifestation of the impact Gil Whitaker had on the business school and Rice. His influence is also reflected in the quality of the faculty, in the growth of our MBA programs and in the school’s first accreditation during his tenure. Gil breathed

“Dean Whitaker meant a lot to his students and my class of 1999, his first class at the Jones School, which certainly had a special devotion to him. But Dean Whitaker earned our admiration for more reasons than being “in the right place at the right time.” As MBAs, we have an explicit interest in leadership, creativity and cooperative enterprise. We have a sense of our careers and the arc that they take. Dean Whitaker

showed himself to be a visionary leader.

Above all, he listened intently. He openly encouraged initiative, contributions and participation by others.

It is hard to juggle between appellations like “Dean Whitaker” and “Gil.” “Gil” seems to fit the man who forfeited a leisurely retirement and, instead, returned to his and his wife’s alma mater (Rice) to make something wonderful happen with the school of his youth. It seems that “Dean Whitaker” had genuine optimism and a pragmatic understanding of possibilities that could be realized with cooperative enterprise. He extended and strengthened our collective and personal identities as a school community. In Dean Whitaker, we discovered a leader — a man full of career accomplishments — coming around for “one more round” — another endeavor. We discovered a fun, lively, bright person with a sense of humor and a work ethic.

While most of us will probably not pursue careers in academia, we will hope to emulate Dean Whitaker’s commitment to leadership and action on a professional level.

Patrick Van Pelt, MBA ’99 and general manager, The Mid Continent Companies, Ltd. “I’ve been on the Deans Council since it was first formed more than twenty years ago. I think that Gil was among the strongest two or three deans in that distinguished group.

He brought a fine inquiring mind, a wealth of administrative and academic wisdom, a great sense of humor, and a collegial manner. All of us who served with him as deans will miss him — especially the light in his eyes and his booming laugh when something amused him.”

importantly to think about the inevitable problems encountered along the way.

His gentle ways and deep insights are missed among us.”

Kathleen S. Matthews, Dean of the Wiess School of Natural Sciences and Stewart Memorial Professor of Biochemistry and Cell Biology “Gil was one of the great leaders I have known. He combined experience, integrity, warmth, vision and great interpersonal skills. I think it was his absolute dedication and genuine values that made other people with similar interests want to follow him. He will be greatly missed but many of us have him in our minds and hearts almost every day.”

L. E. Simmons, director, L.E. Simmons & Associates, Inc. “Gil and I became good friends and I asked him to address my company at a global meeting that we held in Houston.

He was the hit of our conference and was kind enough to distribute his speech to our attendees. He received a standing ovation and Gil was excited to see how we transformed our business.

He was soft spoken, charismatic, and a true thought leader when it came to building an MBA program.”

Robert H. McNabb, CEO of Futurestep and executive vice president of Korn/Ferry International jj/21

Mary B. McIntire, Ph.D., Dean, Glasscock School of Continuing Studies, Rice University “Gil Whitaker was capable of making a profound connection to almost everyone he encountered. He lived and breathed the academy and cared deeply about higher education — and not only at Rice.

His instincts were well honed to achieve goals, to move a school forward, and most

Gil Whitaker took the post as dean of the Jones Graduate School of Management in 1997 until 2005.

Jones Journal / Fall 2007

Vince Kaminski would love it if he never,

Once a voice of dissent at Enron, Vince Kaminski now speaks out for carbon trading and emission credits

Boundless Energy

By Chris Warren

ever had to utter the word Enron again. It’s not because Kaminski, who was a managing director in charge of research at the energy company, did anything wrong — far from it, actually.

Kaminski, who is now an adviser to the dean at Rice University’s Jesse H. Jones Graduate School of Management, vociferously and openly objected to the off-balance-sheet partnerships and unethical practices that ultimately led to the company’s spectacular collapse. Standing up and protesting in the face of the criminal activities he saw earned Kaminski credit as one of the few good guys to come out of the Enron debacle.

But it’s not a reputation he either embraces or feels he deserves, particularly since Kaminski believes 99.5 percent of the employees at Enron were honest and hard working. “I don’t think I deserve this designation more than the thousands of other people who worked for Enron,” he says. “I would gladly give up my designation as a good guy if I did not have to talk about it again.”

But Kaminski is eager to talk about the lessons, some in the realm of ethics, that two decades in the energy industry taught him.

His move to Rice from the corporate world allows him to do that. In the professional world, he woke up at 4:30 every morning and spent his days on the energy trading floor, a place he calls one of the most difficult work environments in U.S. business. Not surprisingly, much of what he shares with students and people outside the university through books and articles are his experiences witnessing a fundamental change in the energy trade. “The industry I entered 16 years ago was an industry dominated by engineers, and most problems the energy companies were trying to solve were engineering in nature,” he says.

Today, however, the industry is far different, with engineers now sharing duties with what Kaminski refers to as “financial engineers.” He explains: “Modern energy companies require, in many cases, a unique combination of skills. They require people who understand the physical

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Jones Journal / Fall 2007

Kaminski is eager to talk about the lessons, some in the realm of ethics, that two decades in the energy industry taught him. layer of the energy markets, and at the same time people with strong financial skills and risk management skills.”

Globalization and integration, too, have fundamentally altered the business. “One could work in the coal business without worrying too much about electricity markets or natural gas markets,” Kaminski says. “Today all the energy markets are integrated, and shocks are transmitted from one part of the energy complex to another at a great speed.”

Power to Change the World Understanding modern energy markets also requires a grasp of the impacts of global warming, Kaminski says. The industry he started in didn’t dwell on the societal impacts that energy production and consumption created — they were merely labeled with the antiseptic economics term negative externalities. “The producers and end users of energy in many cases didn’t have to pay for the cost they were imposing on the rest of society.” Kaminski says that has changed over the past decade or so, and

the result, at least when it comes to efforts to reduce carbon dioxide, is the creation of a cap-and-trade system to reduce emissions.

This sort of system, which provides economic incentives to achieve emissions reductions, has tremendous potential benefits for developing countries, says Kaminski. Perhaps the biggest plus is that the problems created by global warming get addressed, he says, which is of paramount concern to poorer countries because most studies indicate that they will likely be hit the hardest if nothing is done. But a capand-trade system can give poorer countries more direct economic benefits as well. “In many cases the reduction in the level of greenhouse gases can be accomplished through investment projects undertaken in developing countries, and those investment projects create emission credits that can be monetized and can produce a revenue stream for developing countries,” he says.

Kaminski is optimistic about the potential of market-based solutions like this. But he can’t help but put his risk manager’s hat on when he assesses the future of the energy industry, which is not only characterized by efforts to reduce emissions, but also faces the dilemma of hugely increasing demand in countries like India and China. It’s something to be concerned about. “I always think in terms of probability distribution,” he says. “My expected outcome is positive, but there is a huge downside risk that we will have, at some point, a major international confrontation over the access to energy sources. This can become very nasty and dangerous.”

Given Kaminski’s efforts to derail the malfeasance that ultimately ruined Enron, it’s hardly a surprise that he is often sought out to speak on the importance of business ethics. Kaminski believes it wasn’t just Enron that acted unethically; competitive pressures to produce short-term financial results have prompted many companies to cut corners or

act improperly over the past 10 or 15 years, he says. But the problem, so aptly illustrated

by Enron, is that doing the wrong thing never works out in the long run. “It makes no business sense to violate the law or to violate moral and ethical standards,” he says. “From time to time you may get lucky, but violating the law or violating ethical standards is as smart as investing in lottery tickets for your retirement.”

Kaminski is dubious about the role business schools like Jones can play in teaching ethical business behavior. Students who arrive at business school, he points out, are mature, and their ethical standards have already been formed. “If we have to start teaching ethical behavior to people over 25 years old, it’s a lost cause,” he says. But what business schools can do is show just how counterproductive it is from a career and business point of view to do anything unlawful or unethical. “What business schools can do is appeal to the students as rational decision makers and bring home the message that a violation of ethical standards is a very poor business strategy,” he says.

Although he sometimes misses the constant flow of information on the trading floor, Kaminski enjoys sleeping in until 7 a.m. and having the time to think deeply about where the energy industry is headed. He enjoys his interactions with students and the chance to impart some things he’s learned from his years in the corporate trenches. He’s still as fascinated with the business as when he started, and he hopes that through his writing he can help educate people about how the industry can adapt and meet the needs of an increasingly energy-hungry world.

“The ability to mange energy consumption and production and the ability to manage risk are very critical,” he says. “I think that being in energy trading and marketing doesn’t have to be a predatory occupation. It can be a way to make a real contribution to society.”

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Jones Journal / Fall 2007

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Jones Journal / Fall 2007

Walk into any department store and under the fluorescent lights, among the mannequins and the Muzak, you become part of a complicated game between consumers and retailers. Amit Pazgal, associate professor of management at Rice University’s Jesse H. Jones Graduate School of Management, says that as consumers grow more sophisticated, retailers will have to work even harder to figure out how to get more of their money. Pazgal studies behaviors and strategies influencing traditional and Internet shopping and is the author of numerous papers on pricing, inventory, and advertising in the consumer marketplace.

So how does a retailer determine if and when the price is right?

Sophisticated consumers are willing to forgo immediate purchases because they think it will give them a better deal in the future or it will somehow force the retailer to change.

It’s a behavioral trend that’s been getting stronger over time. Since retailers operate on such tiny margins, they have to pay attention to this.

It’s a complicated process because pricing is not just a tool for retailers to get revenue; it’s also a tool to learn about demand. If I price high and very few sell, I don’t know if it’s because very few people are interested in this product or if the prices are just too high. Would consumers have bought the item if I priced it lower? On the other hand, if demand is good and customers really like it, I can’t go back and increase the price.

The interesting part to me is that most retailers observe how many people buy, but they don’t observe how many show up and decide not to buy.

Where does this new sophisticated behavior come from?

Are there any unique inventory and pricing challenges?

Some attribute it to Internet price searching, but it’s more than that. It actually started with retailers trying to get the last penny out of consumers. Enough consumers have realized this and changed their behavior. At the same time, though, you have consumers who will always be risk averse, who don’t want to take the chance that three months from now they’ll still have it in my size or in that color. It’s a game that consumers play with themselves and retailers — now or wait?

Anything with seasonal demand — it’s not like you can order new bathing suits later in the season; it takes too much time to get new ones and you cannot sell swimsuits in August for the price you can get in May. There’s also a big pricing and inventory challenge associated with items like toys connected to a movie. There’s great uncertainty as to the demand and how long it will last, but you want to get the maximum amount of money from the consumer.

You say consumers are becoming more sophisticated. What do you mean by that?

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If it’s a game, how are retailers changing their playbooks?

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Better segmenting is one thing that helps retailers get smarter about pricing. Also, some retailers have started adopting dynamic pricing like the airlines have. But with airlines, it’s more straightforward: the closer to flight time, the fewer the seats, the higher the price. If the plane takes off and seats are still empty, there’s nothing they can do about that. For retail, it’s not so simple.

Retailers can always do something with the merchandise. So they are starting to adopt more sophisticated pricing mechanisms.

My colleagues and I have developed a model for retailers. It’s purely mathematical, but the idea behind it is that consumers come to the store with different degrees of willingness to pay different prices at different times. In the mix is the fact that consumers are heterogeneous in their evaluation of a product. Those who value a product a lot may be very risk averse and not wait until the end of the season to buy.

But sophisticated consumers will wait for the sales that they know are coming in one form or another.

So a “clearance sale” sign is not a sign of desperation?

No, it’s part of the plan. Of course, retailers would rather not have clearance sales and sell it all up front. But they know there will be people who go for the cheaper price. So, it’s not, “Oh, we made a mistake and ordered 100 units and only 80 were bought.” It’s, “I bought 100 units so that I could try and sell them at the higher price, because that could happen — even though I’m pretty sure I’m going to sell only 80.”

It’s worthwhile to take that risk because the original price is set to take later discounts into account. Sophisticated shoppers know the retailers are doing this. You get into some complicated mind games.

Can a retailer price items too low?

If it’s the end of the season, no — that’s the only exception. Otherwise, the price can appear too cheap because it serves as a signal of quality to a consumer. So if I see this fabulous dress being sold at a very cheap price, something must be wrong with it. Stores try to avoid that type of thinking.

This plays into the whole idea of how you announce sales. Do you indicate the original starting price on the tag and let them know what a good deal they’re getting? Or do you take the markdown at the cash register?

There are different schools of thoughts for different stores and customers.

How does the Internet enter into the game?

There was a very strong prediction when the Internet started that prices would converge to a low price across stores — online and in malls. It couldn’t be more different. We see lots of price dispersion, especially online, although some stores clearly go after the price conscious.

For some consumers, the trusted relationship trumps price; service is still important. Yet, even those stores that provide service will have to be very conscious about the price of that service and what it buys. It won’t be service just for the sake of service; they need to do something with their pricing, inventory, and service to get those consumers to buy sooner rather than later.

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Jones Journal / Fall 2007

line: “Bottom gram the pro t h g u o h It e ors wer t c u r t s and in ific.” ely terr absolut

Moise Lev y

By Michele Meyer

The Jones School’s Executive Education Program helps busy professionals add skills and knowledge to their repertoire without taking time away from the job.

A

s dermatology chief for Texas Children’s Hospital, Moise Levy already rose before dawn and worked past sunset — and that was before the hospital decided department heads should also assume administrative duties as well. Fortunately, Rice University’s Jesse H. Jones Graduate School of Management had the prescription Levy needed, a program that helped him acquire business skills without having to abandon his patients in pursuit of a full-time degree.

It’s one thing to understand finance, and another to be bedside delivering care at two in the morning,” says instructor Jay Morris (MBA ‘00), M.D, J.D., and vice president and market medical director for UnitedHealthcare. Morris’ executive education classes address the legal and regulatory environment of health care administration and information technology in health care administration. “As more physicians move into managerial roles, it’s very important for them to have exposure to business concepts – an area that was not addressed in medical school,” Morris says. “They learn a new vocabulary and become a more valuable asset for their employer. They also learn to make better business decisions and leave the course with an appreciation for the bigger picture.”

Held on Fridays and Saturdays, the Jones School’s 14-week Executive Education courses help a wide range of professionals continue to learn while carrying on with their work. For example, doctors and health care administrators learn the inner workings of marketing, negotiating, cost accounting, team management, presentation skills, information technology, and legal and insurance questions — all issues related to health care administration — without missing a beat on the job.

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Jones Journal / Fall 2007

“If you

took a financ course e as an u n d ergrad you wo , uldn’t g e t the sa bang f me or buc k as yo with th u woul d is cour s e , which is dire ctly ap plicabl clinica e to l medic ine.”

Inside Info

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Not only was the health care executive education program created with health care workers in mind, it was actually planned by them. Focus groups consisting of doctors with MBA degrees helped shape the agenda, says Nancy L. Glass (‘02), a program instructor and director of anesthesia education. “If you took a finance course as an undergrad, you wouldn’t get the same bang for buck as you would with this course, which is directly applicable to clinical medicine,” adds Glass, who is the director of pediatric pain service at Texas Children’s Hospital.

The program also offers excellent synergy — after all, Rice is across the street from one of the world’s largest medical centers.

To take advantage of this proximity, most sessions are team-taught. “The combination of a Jones School faculty member with discipline expertise and a physician with context expertise is very powerful,” says Bill Lee, the Jones School’s associate dean for Executive Education.

The program’s teacher-to-pupil ratio is ideal; in many classes it’s one instructor for every 10 students. “I always learn more than I teach – always,” says Glass. “It’s fun to be around people who are successful, demand a lot of themselves, and love medicine. They’re like sponges for something new that will enhance their skills.”

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“It ga ve ins ight in admin to how istrat ors ap things proach and it t a ught m manag ea ement s t y le tha more t’s inclus ive than d omine ering.”

Olutoye Oluyinka O.

Nanc y L. Glas s

A Broader View For some, the biggest lesson is that practicing medicine can be more than just doling out prescriptions. “Doctors arrive with one viewpoint,” says Lee. “Their own. What they don’t generally see is the complexity and different objectives of not only physicians, but the nursing staff, the hospital, and the insurance system. Most students say, ‘I should’ve had this years ago.’ ” Already, Levy and fellow service chiefs at Texas Children’s Hospital have implemented their new knowledge since assuming greater administrative responsibility.” As certain issues come up, I find I’m pulling some of the readings that were pertinent, and sharing them with administrators and fellow physicians,” says Levy. “It’s a year and a half later and I still have the course materials right in front of me.”

Oluyinka O. Olutoye, M.D., Ch.B., Ph.D., assistant professor of surgery and pediatrics at Baylor and co-director of the Texas

Students leave not only as better doctors, but also better leaders. “Bottom line: I thought the program and instructors were absolutely terrific,” says Levy, who is also a dermatology and pediatrics professor at Baylor College of Medicine.

Levy took the course last year, but it remains fresh in his mind. “It was surprising to me that so much of business practice is intuitive. In addition to the nuts and bolts of generating budgets and business plans, I found simple exercises regarding leadership skills particularly useful in helping me relate to the people with whom I work.”

“A physician may have all the medical skills, but make blunders in communicating,” adds Glass, who is also a professor of pediatrics and anesthesia at Baylor College of Medicine. “Institutions often aren’t forgiving, and it’s hard to recover from those mistakes. You can be a highly qualified physician but know nothing about how hospitals are financed, how you sort out reimbursement, or how your hospital’s treasurer decides whether or not you can buy new equipment.”

Jay Morris (MBA ‘00), M.D, J.D., and vice president and market medical director for UnitedHealthcare

Children’s Fetal Center at Texas Children’s Hospital, also realized he was applying new business tools before his sessions ended last March. “It gave me an opportunity to delve into different ways of attacking issues and made me use part of my brain that I didn’t use typically as a clinician,” says Olutoye.

“It gave insight into how administrators approach things and allowed us all to speak the same language, and it taught me a management style that’s more inclusive than domineering.”

But for many, like Olutoye, the course finished too soon. “It was so much fun that [when it was over] I missed the sessions,” he says. “It felt like an anticlimax to end it.”

The good news for Olutoye and others is that they can return to pursue a master’s degree at the Jones School, as several course graduates have. “For anybody involved in health care delivery who wants a role in leadership or administration, and thinks they might go back for a master’s in business, this would be a good proving ground,” says Morris. “We’re bringing highly qualified, very respected professionals to Rice. This can only serve the Jones School in a positive way in the future.”

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Jones Journal / Fall 2007

Business school. Medical school. Each is such an intensely focused program that it seems impossible to imagine any student purposely choosing to go after degrees from both at the same time. But every year for the past decade, a small group of students at Houston’s Baylor College of Medicine have set their minds to doing just that. Between their second and third years of medical school, they take a two-year break to add another degree to their list of accomplishments: an MBA. Their program of choice? The Joint MD/MBA between Baylor and Rice University’s Jesse H. Jones Graduate School of Management.

“It allows you to be very flexible,” says Diana Anukwuem Stewart, an MD/MBA candidate who will graduate in 2008. “There are many reasons a doctor can do it. They [may] want

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to be an entrepreneur and go into medical devices or design drugs, or they can choose to go into industry. Some other options are to choose to be a physician leader, where you can work in the government arena or an academic setting. Or [it can just help you] make better decisions for your practice.”

Regardless of where their careers head, the added study has paid back in spades. We spoke with a current student in the program, a successful graduate, and an experienced physician currently working toward his MBA. All three bring unique perspectives to their studies and have different reasons for pursuing the dual degrees. They also have distinct opinions on what the trend means for the future of medicine.

Jones Journal / Fall 2007

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By the time Stewart entered Baylor in 2003, she had already drawn quite a bit of blood. A 1999 graduate of Houston’s Michael E. DeBakey High School for Health Professionals, she always had an interest in medicine, but going to DeBakey cemented it. She had also considered the idea of getting an MBA early in her career, but saw a good opportunity to expand her knowledge earlier than expected by signing on with the joint program with the Jones School after enrolling at Baylor.

“I did a lot of leadership stuff and was interested in pursuing that a little bit more, but I was interested in talking to people who had done it in the past to see if it was the best thing for me,” Stewart says. After hearing about the program from other MD/MBA candidates, she decided it was the right direction for her education. “I always had an interest in public health and helping those who were underserved, and an interest in international medicine,” she says. She was conflicted over pursuing a master’s degree in public health or getting her MBA. “I chose the MBA [because] it gives me a little more flexibility. It provided me with a skill set that would allow me to go into any position, and [because the program encourages teamwork] it allows you to work better with people from different mind-sets.”

Having completed her MBA coursework, Stewart began her third year of medical school in January. The business degree has not only helped Stewart feel more in control of her financial future, it also provided her with lessons she can put into practice in the hospital. “In medical school, much of [the work] is independent study,” says Stewart. “But in business school it’s all teamwork and group work. It was one of the best opportunities I’ve ever had, since it’s a

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reflection of what’s really going to happen when I get a job.”

She also says that business school helped her figure out how to cut the fluff out of her study habits. “It makes you a better person. It makes you adaptable. Business school gives you the skill to focus on what’s important.”

While Stewart is still focused on public health, her MBA from Jones helped her figure out that, unlike the medical students who all follow single-file down the same path, she now sees that there are multiple roads she can go down. “You’re not limited.

Your horizon is so much bigger,” she says.

“You can be creative and make of your life what you want it to be.”

In three to five years, Eric Tait hopes that medicine will be his hobby. That’s because the MBA program at Jones provided the primary care physician with the tools he needed to start amping up his financial portfolio.

“You realize that the amount of energy and effort and work you put in, while rewarding from a standpoint of helping patients, makes it very difficult to be able to meet your overhead and pay your bills and pay your loans,” says Tait, who was a member of only the second class of students to sign on for the MD/MBA program. “The amount of energy you’re putting out on the medicine side — if you put it out on the business side you would get a much higher return.”

The program has given Tait not only a different perspective, but another vocabulary for describing it. “It’s made me shift my paradigm to other investment options so I can really practice medicine as a hobby,” he says. Once the investments start paying the bills, Tait hopes to spend more time with each

patient, and that the insurance companies and the overhead will no longer dictate how his practice is sometimes run. He adds that, as his reliance on paying the bills with medicine drops, his passion for his practice grows.

The program suited Tait, he says, because he has always had an entrepreneurial nature. “I always liked the business side of life as well [as the medical one],” he says.

“And as the bottom line became more and more a fixture of medicine, to me it just made perfect sense to understand the forces and the trends that are shaping how health care is delivered in this country.”

But that doesn’t mean he believes every MD candidate should automatically pursue an MBA too. “If you want to go out and practice medicine, you have to have a very good reason as to why you want to spend $50,000 more to get an MBA,” he cautions.

“You need to have an overarching goal above and beyond just wanting to practice medicine.”

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Jones Journal / Fall 2007

Jesse H. Jones Graduate School of Management Investiture 2007

The year was 2000 and Wayne J. Riley, M.D., a longtime staff member at Baylor College of Medicine, was restless and anxious, he says, to learn “more about managing and leading in the health care arena.” While he says the life of a physician is very fulfilling, he noticed that health care is in need of people who understand the difference between management and leadership. With a career trajectory that was clearly on the rise, he decided that an MBA was a necessary part of the toolkit he needed to get more significant management and leadership positions in healthcare.

But not every medical student, or doctor for that matter, believes that MD/MBA

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programs are a worthwhile pursuit. When Riley, now president and CEO of Meharry Medical College in Nashville, announced his plans to add an MBA to the medical degree he had collected nine years earlier, he says his colleagues’ first concern was that he was going over to the “dark side.”

“We have a term for physicians who become totally administrative and don’t engage in patient care — we call them ‘suits.’

I did get a little needling from colleagues that I had become a suit. My response to them was that I was pursuing an MBA not because I’m running away from patient care, but because I wanted to make patient care better and lead health care organizations.”

Over the following 21 months, Riley pursued his MBA coursework through the Jones School’s Executive MBA program, and though it was “very rigorous,” the program started paying off immediately. Like Stewart, Riley found that the emphasis on teamwork was a huge benefit when he went back to the hospital.

HONORS, PRIZES, AND AWARDS Jones Graduate School of Management Dean’s Award for Academic Excellence Erik Linus Bernhard Claire Renee Harvey

Jones Scholars

professor of management at the Jones School, has helped many other MDs and students figure out if an MBA is the right direction for their career. And since he received his MBA, many of the same colleagues who questioned his decision have pursued their own business degrees. As the new leader of Meharry Medical College, he intends to put some of the lessons he learned to work in the medical school setting.

“You have to make very sure you’re not doing it because you want to run away from patient care. I’m very transparent about that with folks who come to me,” says Riley.

“Your legitimacy as a physician manager is enhanced not only by your ability to pursue an MBA and to understand budgets and so forth, but by remaining as much as humanly possible in the trenches. Even in my role here as president of a medical college, I still intend to teach. I still intend to lecture. I still intend to be involved in patient care, albeit in a much more limited way. The beauty in being a physician manager is that you can do both.”

Shilpa Amaram Gregory Bernard Bass Erik Linus Bernhard M. Chris Doyle Luka Erceg David Eric Friedman Gregory Dean Givens Claire Renee Harvey Zhenhua He Sarah Nalini Joseph Sean Yoon Sung Kim Roderick Allen Larson Michael Kenneth Lowe Rory Madden John V. Marymont, M.D. Jagadish Mendu Robert S. Norsworthy Matthew C. Schaefer Yulia Shuvalova Nigel N. Singh Carmen Thompson Jeffrey Wade Unruh Lingna Wang

Jones Citizenship Award Shilpa Amaram Kianti Chablis Brown Joelle Dick Samantha Lyn Ehlert Rauli E. Garcia Joseph Landon Gullion Claire Renee Harvey Liana Michelle McDonald Ryan Scott Reichert Dean L. Saghier Jonathan Curtis Surratt Laura E. Wright Daniel Fogarty

Alumni Award for Excellence in Teaching James P. Weston

Jones Student Association Award for Excellence in Teaching Shannon W. Anderson

MBA for Executives Award For Excellence in Teaching H. Albert Napier

Lorane T. Philips Award for Excellence in Writing Sarah Nalini Joseph

M.A. Wright Award Claire Renee Harvey

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M.A. Wright Award (MBA for Executives) M. Chris Doyle

Robert E. Philips Award for Excellence in Presentation Liana Michelle McDonald

Over the years, Riley, also an adjunct jonesgsm.rice.edu

Jones Journal / Fall 2007

MEDIA MENTIONS

This is a partial listing of the Jones School community appearances in the media. For a more detailed report of international, national, and local media coverage, please visit our website at: www.jonesgsm. rice.edu/news. n In January, Financial Times’ Global MBA 2007 ranked the Jones Graduate School of Management program the best in Texas. The survey also reported that the Jones School is ranked among the top ten business schools in the world for finance and among the top 30 U.S. business schools. In salary averages three years after graduation, Rice MBA graduates ranked 20th nationally.

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n The research of Jennifer M. George, the Mary Gibbs Jones professor of management and professor of psychology, and Jing Zhou, associate professor of management, featuring creativity and moods in the workplace have garnered coverage in dozens of international, national, and local articles including the Vancouver Sun and Houston Chronicle, Jan. 17; Financial Express (Bombay), Jan. 27; The New York Times, March 11; Entrepreneur, June edition; NBC’S The Tonight Show with Jay Leno, April 12; and New York Post, May 29. n Adjunct Professor and former risk management executive at Enron Vincent Kaminski mentioned that Rice University is working on an energy specialization for its MBA program. He said, “Houston has an entrepreneurial spirit and risk-taking culture that is a good fit for emissions trading.” The article appeared in Houston Chronicle, Jan. 19 and Midland Reporter-Telegram, Jan. 27.

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MEDIA MENTIONS

n In the article, The 100 Best Companies to Work For, Fortune magazine, Jan. 22, profiled five companies who make an effort to keep their stars happy including Julian Duncan, ‘06, an assistant brand manager for Nike and recent Rice MBA graduate. Duncan is enrolled the training program moves him through six marketing assignments in 24 months, with perks like access to senior-level management. Duncan said, “I can see myself working here a long, long time.

Nike is good at finding ways to keep things exciting.” n Rice MBAs Luis E. Miguel, ’05, and Federico Muyshondt, ’07, are expanding with a second Chicken Kitchen, a restaurant franchise in the Houston area according to an article in the Houston Business Journal, Jan. 22. The opportunity, which started out as a class project, will include a fourth location by the end of the year, and 24 total locations in the Houston area over the next seven years. The West University Examiner, Feb. 20, also reported the expansion. n Bloomberg.com, Feb. 12, Adjunct Professor Vincent Kaminski cited that major oil producers will increasingly dominate energy trading because they have better access to information that affects commodities prices. According to the article, Kaminski helped introduce credit-risk management to the energy industry and evaluated deals at Enron, once the world’s largest energy trader. n In a story about Bank of America’s controversial credit card program, Paul Dholakia, associate professor of Marketing, was quoted on ABC’s KTRK-TV, Feb. 14, about how it is very difficult for banks to find

new customers in today’s world.

Dholakia explained, “It’s very rare an opportunity comes when, really, a new customer comes and the customer doesn’t have a product, and you have this huge potential segment of customers.” n Houston Business Journal, Feb. 23, reported that a presentation given at Rice, which focused on the digital future of real estate, is part of the Thought Leadership Series sponsored by the Jones Partners.

Stewart Morris Jr., president and CEO of Stewart Title Co., spoke to business leaders at the Jones School about the mortgage industry moving to paperless methods. The article also noted that Anthony Gorry, who holds the Friedkin Chair of Management, gave a lecture on his current research concerns about the impact of information technology on organizations and society. n In March, U.S. News & World Report released its 2007 rankings for the best U.S. business schools, and the Rice MBA program continued to be ranked among the top 50. The Jones School placed 25th among the top 50 programs for “average starting salary and bonus” for its 2006 graduates. n In an article about businesses that are seeking to lessen their impact on the environment, Duane Windsor, the Lynette S. Autrey professor in Strategy-Environment, explained that most companies joining the environmental movement today have mixed motives. The article ran in the Baltimore Sun, March 11. n Houston Business Journal, March 19, featured the 2007 Rice Business Plan Competition, profiled the Rice MBA student team, Cateko

Diagnostics, which is composed of Robert Norsworthy, Heather Borders and Michael Lowe, all class of ’07. They presented a case for two novel products to predict preterm labor, based on groundbreaking research conducted by the University of Texas Medical Branch at Galveston.

News surrounding the competitions and its winners received local and national coverage including Houston Chronicle, March 22 and KUHF.com, March 19. n The Washington Post, March 20 and the Canton Repository (OH), March 20, announced that Knowledge Is Power Program (KIPP), the largest U.S. charter school organization has raised $65 million to create 42 schools in Houston.

Adjunct faculty Leo Linbeck III, who helped to conceive the expansion said, “As long as KIPP continues to produce results in the classroom, it will continue to grow.” n The Herbert S. Autrey Professor of Accounting Stephen Zeff is quoted in The Wall Street Journal, May 12, about major changes in accounting rules and reporting by accounting-rule makers in the U.S. and internationally. Zeff said that net income is the basis for bonuses and judgments about what a company’s stock is worth. “I just don’t know what the markets would do if companies stopped reporting a bottom line somewhere.” n Shannon Anderson, associate professor of management, commented on US Airways fliers feeling the impact of labor woes, calling the labor negotiations the most critical event at US Airways at the moment. “That is going to be the straw that either breaks the camel’s back or lets them move forward to

remedy some of their operational problems,” she said. The article appeared in Arizona Republic, May 13 and USA Today, May 14. n Professor of Marketing Seethu Seetharaman conducted an extensive study on the strategies behind locating gas stations in Singapore.

The article, which appeared in the Vancouver Sun, May 18, mentioned that average retail margins for Singapore gas pumps is 21 percent, an unexpected result of the study. “I don’t know if you call it collusion, but it certainly is not fierce competition,” Seetharaman said. n Reuters, June 1, Bala G. Dharan, the J. Howard Creekmore Professor of Management, is quoted in an article on the current standard accounting practices and contractual terms used to create the securities that leave little room for banks to modify portfolios with rising defaults and delinquencies. n The New York Times, June 10, profiled Mitch Bainwol, chairman and CEO of the Recording Industry Association of America. In the article, he mentioned that Rice University had given him a “generous ride to attend an MBA program in business management and public policy,” thereby returning to Washington with “analytical skills I hadn’t had.” n Norman Hackerman, a noted chemist and a former president of both the University of Texas at Austin and Rice University, died June 16 in Temple, Texas. The article, which was published in The New York Times, June 23, and Houston Chronicle, June 18, noted that as the president of Rice University, Dr. Hackerman started the Jones Graduate School of Management and the Shepherd School of Music.

n Houston Chronicle, June 23, an obituary of Gilbert Whitaker Jr., who died of complications from bile duct cancer, highlighted his tenure as the dean of the Jones School, leading the school to high rankings among the nation’s business schools. n Rice MBA graduate Kevin Cumming (‘08) is interviewed extensively in Ottawa Business Journal, July 11, in an article about 20 American MBA students from across the U.S. visiting political and business leaders in Montreal and Ottawa, and taking part in discussions on North American integration. n Houston Business Journal, July 27, reported that the El Paso Corporation Finance Center is one of two organizations using the latest blade-based technology by HewlettPackard Co. The technology used on Rice’s simulated trading floor is similar to what NASA uses to talk to the Mars Rover. Jill Foote, director of Center and lecturer of Finance said the trading floor uses software for the analysis of a wide range of financial products, energy assets and real estate to “bridge the gap between the classroom and the real world.” n Bill Lee, associate dean of Executive Education co-wrote an article about the difficulty in replacing talented baby-boomer generation workers in the Oil & Gas industry.

To bridge the executive gap, some companies are turning to education like on on-the-job training or an MBA or executive leadership program. The article highlights Rice and Ernst & Young’s Energy Executive Education program which begins Sept. 5. This special article was featured in the Houston Business Journal, July 27.

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Jones Journal / Fall 2007

CLASS NOTES

CLASS NOTES 6

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1970s/1980s Robert (Chip) Matthews (‘75) and his partners in Horn Murdock Cole have sold their practice to Accretive Solutions, Inc. Chip, who is “semi-retired” in Lake Conroe, has joined the faculty of the College of Business Administration at Sam Houston State University in Huntsville.

Carol Der Garry (’85) is managing director at FTI Consulting in Los Angeles, in the Forensic/Litigation Consulting group, helping public companies with internal fraud investigations and the defense of SEC investigations.

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Lynne Campbell Saporito (’85) wanted to update fellow alums that the baby she delivered a week before the class graduated, has graduated in May from Texas A&M and started graduate psychology studies at St. Edwards University in Austin. Her younger daughter, an upcoming junior in high school, is ranked second in a class of 311. She was recently in Japan as a youth ambassador and spent two weeks studying at Cambridge in England. Lynne is a successful private investor, thanks to her Jones School education and subsequent investment banking experience.

1990s Tarig Anani (‘92) was recently promoted to president of P2ES Holdings, Inc., a company dedicated to serving the software and data needs of the upstream Oil & Gas industry and its software subsidiary, P2 Energy Solutions, Inc. Tarig has worked for P2ES since May of 2002 and previously served

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as president of international operations and chief legal officer, and was appointed to the board of directors in 2004.

Caroline Caskey (’92) sold her company, Identigene, after 14 years as founder and CEO, to Sorenson Genomics out of Salt Lake City. The company will continue to operate in Houston with all the same staff. She started a new business, MendelWorks, providing mouse genotyping services to scientific researchers, and moved it to Austin where she and her family, husband Sam Goodner, son Sam Jackson, 4, and daughter, Catherine, 2, have lived since 1994.

Tory Gattis (‘93), founder of Houston-based technology startup OpenTeams, announces the launch of the webhosted collaborative software product. OpenTeams was selected by Information Week as one of five Enterprise 2.0 startups to watch and has received a positive review by ZDNet. Learn more at www.OpenTeams.com.

Trent Aulbaugh (’94) joined the Houston Office of Egon Zehnder International.

Amy Downey ( ‘94) and her husband, Phil Gartner proudly announce the birth of their daughter, Anna Elizabeth Gartner, who was born on Mother’s Day, May 13, 2007.

Heather Carroll (’95) moved back to Houston from New York City and works for MasterCard as vice president, Travel & Entertainment Industries.

P. A. Weber III (Andy), (’96), started Corner Capital Partners, LLC, a boutique merchant banking company providing full services to mid-market sized companies with a focus in specialty retailing. The company performs M&A,

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recapitalizations, portfolio optimization, capital raises, and distressed advisory to its clients, and will utilize its capital fund for opportunistic investments. The company would love to work with any Jones School graduates.

and established companies to identify key market opportunities, align their business processes to achieve greater revenue growth and with overall organizational effectiveness.

Jeff Jung (’97), left his job as director of marketing for KCI in San Antonio in August 2006 to travel the world for a couple of years. To catch up with Jeff and his travels, visit www.umwhynot.com.

4 Jolie Stinneford (’01) proudly announces the birth of her second son (and second child), Ryan Alexander Stinneford, born on Nov. 6, 2006.

1 Alejandro Feldman (‘98) proudly announces the birth of his second daughter, Sasha, who was born on April 3, 2007.

2 Parents Krishan (‘98) and Anjili Sabharwal welcome the birth of their daughter, Maya Sunvi Sabharwal, born on Feb. 5, 2007.

3 Proud parents Jeff Windsor (’99) and Ellie added a baby boy, Joaquin William Windsor, to their family on Oct. 9, 2006. He entered the hospital in January for open heart surgery to correct a Super-Crystal VSD and is now completely healthy.

2000s Daniel H. Cotlar (’00) now leads the marketing efforts at Blinds.com, the largest online seller of window coverings in the world.

Russ Waddill (’00) has joined as a partner of Neos Marketing, a Houston-based partnership that helps entrepreneurial and technology-driven companies to increase revenue and expand their strategic alliances through marketing. Waddill specializes in helping new

Anne Culotta (’02) just celebrated her five-year anniversary with Halliburton. She formed and ran the Intellectual Asset Management group at Halliburton, and now assists in the company’s growth strategy both organically and through acquisition. She recently completed her first year at the University of Houston Law Center.

5 Renee O’Neill (‘02) and her sons, Lucas Conner, 3 and Dylan Matthew, 2, welcome a baby girl to the family, Elise Gabrielle O’Neill on May 30, 2007.

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6 Nelrose Viloria (’02), her husband, Christopher, and two boys, Aden, 3, and Roman, 1, have relocated back to Houston in July 2006, joining Hewlett-Packard as business operations marketing manager in Enterprise Storage and Servers Software. She would love to reconnect with former Jones School classmates via email: nelrose_v@hotmail.com.

7 Sarah (‘02) and Scott (‘04) Rosenberg announce the birth of the daughter Claire Noel Rosenberg, March 14, 2007.

8 Kathryn Lee Bragan (‘03) and husband Billy are the proud parents of a little boy, William Stockard Bragan, III (Stockard) who was born on March 16, 2007.

Jones Journal / Fall 2007

CLASS NOTES 11 New Board Members David Case MBA ‘05 JP Morgan Securities, Inc.

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Mark Courtney, MBA ‘94 Director CIMA Energy, LTD

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14 15

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Ted Dimitry, MBA ‘02 Director GEM Insurance Agencies, L.P. Carolyn Galfione, MBA ‘ 97 Financial Advisor & CFO Linscomb and Wlliams Priscilla Plumb, EMBA ‘01 Director Hewlett-Packard Company

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Board Officers for the 20072008 term

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9 Kirby A. Brendsel (‘03) was admitted early this year into Deloitte’s elite Management Development Program working with the Corporate Energy & Resources Group on a two year rotation in Deloitte’s McLean Virginia office. He is the first representative from Consulting to be awarded the honor of this opportunity.

Gerhard Golden (’05) has accepted a promotion to join the marketing team for Johnson & Johnson at the European HQ in Belgium on a three-year contract. Gerhard will continue to work with Cordis Endovascular (Johnson & Johnson) and will be responsible for a product portfolio in Europe, the Middle East, and Africa.

Tracie Hall (’03) moved to Dallas-Ft. Worth as director of HR Client Consulting at Capital One Financial Services. She would like to hear from other fellow alums in the DFW area at tracie.hall@alumni.rice.edu.

12 Dan Purvis (’05) recently sold the company he started after graduation, vibDaq, LLC, which was created to serve the predictive maintenance industry. On a personal note, his wife Julie and he adopted their first son, Bennett Joseph, last fall.

10 Jesse Santos (’03) moved into a manufacturing plant leadership role after completing an Operations leadership rotation program at Honeywell International. Also, he and his wife Susan and daughter Graciela Julia, their first daughter, would like to announce a new addition to the family, a baby girl, Arabella Elise Santos born on Aug. 1, 2006.

Kathy Felker (’04) was promoted to managing consultant at IBM Business Consulting Services in the Customer Focused Strategy practice.

11 Daniel Fu (‘04), Irene Chang (‘07) and their son Matthew welcome Allison Irene Fu, born on July 3, 2007, to the family.

Kyle Johnston (‘04) finished her second year at Tulane Law School and was elected to the Tulane Law Review and the Moot Court Board. She was working as a Summer Associate in Mountain View, California at Fenwick & West LLP.

13 Michael Reid, (‘05), shares a photo of his daughter Alexa Rose Reid, born Sept. 22, 2005.

14 Harold Bernard (‘06) and his wife introduce son Ignacio Andreas Wijatno born on June 26, 2007.

15 Brian “Joshua” Haynes (’06) and Donna Michelle Dupree Haynes were married May 26, 2007 in the groom’s hometown outside of Atlanta, Georgia. Donna, a native Houstonian and UT grad, works for Introgen Therapeutics in Houston, and Joshua works for Powell Electrical Group in Houston.

Lavon Washington (’06) is a senior strategy consultant for IBM in the Strategy and Change Practice - Public Sector.

She consults primarily for the education industry and is currently assigned in Puerto Rico with the Puerto Rico Department of Education.

President Mike Andries, EMBA ‘02 Principal Consultant mABC LLC Management Consultants President Elect Erich Bell, MBA ‘03 Manager, Financial Reporting BMC Technologies Past President David VanHorn, MBA ‘00 Director Archstone Consulting

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Board Members continuing from last year Ray Bowen, MBA ‘84 Consultant Silver Point Finance Joe Branch, MBA ‘04 Nike, Inc. Chris Burkard, MBA ‘93 President & CEO Krescent Energy Co. Kelly Enos, MBA ‘84 VP Business Development Ypone, Inc. Landy Haile, MBA ‘03 Triad Real Estate Consulting Group, LLC Lisa Kudchadker, MBA ‘02 Materials Manager BP Robert Lesnick, EMBA ‘00 Manager ConocoPhillips Crystal Maxwell, MBA ‘03 Vice President - Investments UBS Nkem Ogbechie, MBA ‘03 Investment Advisor Goldman, Sachs & Co. Bob Parkey, MBA ‘88 President & CEO ICO, Inc.

jonesgsm.rice.edu

Dear Fellow Alums, It is my honor to serve you as your next president of the Jones Graduate School Alumni Association (JSSAA). As I enter this role, I can tell you first hand about the array of opportunities we offer you to enhance your relationship with the school.

An important purpose of the JSSAA is to grow a strong alumni network from the current student base through programs that encourage interaction with alumni and students. To accomplish this, we sponsor events and programs that connect alumni with the Jones School community. JSSAA also develops Rice MBA alumni groups outside Houston so that we can keep in touch with each other, network, participate in and support the school through our involvement.

We continue to build upon past successes of the association and look ahead to new objectives this school year: Strengthen JSSAA — Expand the JGS alumni network within and across classes; strengthen member relationships by recognizing and promoting JGS alumni honors and accomplishments; and offer greater opportunities for alumni living outside of Houston to become involved Expand Professional Growth Opportunities — Increase and create more continuing education and career development opportunities for alumni Recruit New Members — Continue to foster member goodwill through student-alumni activities and relationships, particularly working to integrate graduates of the MBA for Executives and the MBA for Professionals programs into the alumni association Strengthen the Rice MBA Brand — Actively support the Dean’s strategic plan and mission of building excellence into the school’s programs Connect with Business Leaders — Strengthen the Jones School’s and Rice University’s relationship with the business community We need your help to accomplish these goals. Your time, expertise, and energy will benefit the Jones School, Rice University, and the community as a whole.

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Please contact me or any Board member to discuss these projects or other ideas you might have for improving the association.

I would like to take this opportunity to personally thank Brian Spector, Al Danto, Maury Bronstein, Heath Rothman, and Tammy Smithers for their service and contribution to the Jones School and the Alumni Association. Through their effort and leadership, the Board and Association successfully refocused their activities to reflect member interest and suggestions.

Thank you for giving me the opportunity to serve JGSAA. Mike Andries, ‘02 Principal Consultant mABC Management Consultants Jones Journal / Fall 2007

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