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Expanding Support WDI Announces Two New Cross-School Collaborations The William Davidson Institute has significantly expanded its support of international activities at the University of Michigan, agreeing to fund projects at the School of Public Health (SPH) and the School of Medicine. The two cross-school collaborations came about after the Institute’s board of directors asked Executive Director Robert Kennedy about a year ago to reach out to other schools at the university to see if there were high impact international programs the Institute could support. WDI currently funds international activities and research at the Ross School of Business and for several joint degree programs. After discussions with various schools, WDI has selected its first two collaborations: research on global health issues and student internships at SPH; and a clinical and administrative project at a Uganda hospital involving the Medical School. “In response to the board’s request, I spoke with schools across the University,” Kennedy said. “I was looking for programs that fit several criteria. These included a close link to that school’s mission, a focus on development or policy issues in developing countries, and the potential for high impact. “We received a variety of proposals, but these two really stood out. We are delighted to support field research and student experiences at the schools of Public Health and Medicine.” Dean Smith, senior associate dean for administration at SPH, said he was grateful for WDI’s support. Angela Georgopolis (above), a Genetic Public Health student, conducted
“We’re delighted that the Davidson Institute supports these projects in the School of Public Health and are appreciative of their expanding effort to support international work at other schools,” he said.
international research on breast cancer tumors and inflammatory breast cancer at the National Cancer Institute of Cairo University in Cairo, Egypt.
At SPH, WDI will provide funding for three distinct programs. The first is an internship program in the Cancer Epidemiology Education in Special Populations, a training program for master’s degree students with a special interest in research in international settings. The program has partial funding from the U.S. Department of Health and Human Services. The funding from WDI will support expansion of the program.
Molly Hartrich (above right), takes a break from her summer research at the Ocean Road Cancer Institute in Dar es Salam, Tanzania, to visit two children.
“We want to do more,” Smith said. “We have a grant that supports domestic training and brings some international representatives to the U.S. but not the money for our sending students abroad,” he said. Institute funding will also expand an internship program at the school’s Center on Global Health (CGH) and its
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Paul Farmer Lecture 9 PAGE
The co-founding director of Partners In Health entertained a capacity crowd at an event sponsored by WDI and the Ross School of Business. Farmer’s lecture was “Building a Health Care Movement: From Haiti to Rwanda.”
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L E T T E R
F R O M
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Welcome
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to the seventh issue of the Davidson Review, the William Davidson
Institute’s (WDI) semiannual newsletter designed to keep you apprised of our activities and plans, and to encourage you to become involved in our programs. As you may recall from previous issues, for the past several years WDI has organized its activities into four broad areas — research, technical assistance, executive education, and supporting international activities at U-M. All three research initiatives — Globalization of Services, Social Enterprise, and Base of the Pyramid — are on track. All three are focusing on content creation this year. This includes: new MBA courses (Social Enterprise and Globalization of Services); conferences, discussions and summaries; academic research; and work aimed at practitioners. Executive Education and Technical Assistance programs also continue to grow. Executive Education delivered 18 programs to 1,300 participants in 12 countries last year. In the current academic year, we are on track to deliver 25 programs in 14 countries. I am pleased to announce that Technical Assistance has been renamed Development
Table of Contents Globalization of Services Social Enterprise Executive Education Paul Farmer Lecture Development Consulting Services
Consulting Services, and as of Jan. 1 we have a new director — Khalid Al-Naif. (See story on Page 10.)
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I am also happy to announce that WDI is adding two new initiatives. The first is a two-pronged, dramatic expansion of WDI’s support for international activities across the University. About a year ago, WDI’s board of directors asked me to find ways to reach out to other schools at U-M to support their international activities. This led to a series of very interesting discussions with various schools across the UM community. Today, I am happy to announce two cross-school collaborations. In the first collaboration, WDI has agreed to fund research on global health issues as well as graduate student field internships at Michigan’s School of Public Health. The programs will be delivered through the school’s Center on Global Health (CGH) and the “Cancer Epidemiology Education in Special Populations” program. The Institute’s work in Rwanda has highlighted the important role that health programs play in development. This is an exciting undertaking and a good fit with WDI’s focus and approach. The second collaboration involves funding an intensive clinical and administrative engagement for a hospital in Uganda. The program includes faculty and graduate students from both the School of Medicine and the Ross School of Business. The School of Medicine, led by Dr. William E. Chavey of the Department of Family Medicine, will send faculty
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and students to improve clinical procedures at the hospital. The Ross team, led by Professor Paul Clyde, will work with hospital administrators to improve management and planning. The goal is to develop a protocol for health system engagements that can be replicated in other geographies. The second new initiative is the creation of a “Teaching Materials Development Organization” (TMDO). The organization will be headed by John Branch, currently a top-rated faculty member in the school’s strategy and marketing areas. The TMDO’s goal is to assist faculty members in the process of moving their research and other ideas into the classroom in an effective way. We anticipate the organization will work with faculty to develop case studies, videos, simulations, and other teaching materials. The organization will also develop a website and manage the distribution of these materials to other schools, which should help build the school’s brand. (See story on Page 9.) As you can see, we have been busy. We continue creating communities of interest in our focus areas and engaging with leading thinkers globally. If you are already engaged, thank you. If not, we invite you to join us.
Sincerely,
Robert E. Kennedy Executive Director W I N T E R
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G L O B A L I Z A T I O N
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In the past year, the Globalization of Services research initiative focused on carrying out research for a new graduate level business course and a managerial book on the topic, and developed case studies and reports that analyze emerging practices in the field. We built new relationships and reached out to newer geographies, organized a practitioner-focused conference and participated in several international practitioner and academic conferences.
Reports Look at Attractiveness for Offshoring Work
Case Studies Developed for Upcoming MBA Course
WDI is set to publish a series of reports looking at the location attractiveness of China, South Africa and other emerging destinations for the global delivery of business processes.
WDI has developed four new case studies as part of the graduate-level course on the globalization of services that is being developed for Michigan’s Ross School of Business. A total of 12 case studies will be used in the course, which will be taught by WDI’s Sharma and Robert Kennedy, executive director of the Institute.
The three-report series is intended for business audiences and companies that are looking to move some of their operations to countries such as China. WDI researchers spoke to business leaders in each country featured in the reports to get their experiences and also gathered existing research. The reports, each 15-20 pages, look at such things as local talent, infrastructure, government incentives, labor laws, risks and challenges, among other things. The first report is on China, which is gaining momentum as a business process outsourcing (BPO) destination for multinational companies. Another report focuses on South Africa, which currently has mostly call center operations. The final report covers a group of smaller destination countries that are receiving some BPO work, such as those in eastern Europe. “We’re launching this series because this globalization of services phenomenon has spread beyond India to the rest of the world,” said Ajay Sharma, a senior researcher at WDI who directs the Institute’s Globalization of Services research initiative. To read the series, go to: www.wdi.umich.edu/ResearchInitiatives/ Globalization/.
One case focuses on NASSCOM (National Association for Software and Service Companies) which represents and sets the tone for public policy for the Indian software industry. The case looks at what has happened behind the scenes — from policy intervention with the government to capability intervention with companies — to help the industry grow in India. Two cases involve Genpact, a global business process outsourcing (BPO) supplier. One will look at how Genpact emerged from the shadow of its parent company, GE, after it was spun off. The other takes a nuts-and-bolts approach to understanding, from a business manager’s perspective, how to go about deciding what functions to offshore, how to transition during this time, and how to mitigate any risks. The fourth case examines Career Launcher, an online tutoring service catering to clients in the Middle East and U.S. The case will look at how Career Launcher builds its brand in the U.S. and how globalization is coming to the education sector.
Sharma Delivers Keynote Address at Conference in India In October, WDI’s Ajay Sharma gave a keynote address in New Delhi at an international conference on offshoring. His talk was part of the
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International Congress on Trade in Services organized by the Government of India and the United Nations Development Program. His presentation, “Making India A Global Hub For Services,” highlighted the plenary session “Market Access Initiatives — Health, Education & Tourism Sector.” Sharma’s talk analyzed the capabilities built and the lessons learned from the Indian IT and IT-enabled services growth, and explored how some of these could be leveraged in other service sectors. It also identified how the government, corporations and industry organizations could come together to accelerate and broaden exports growth in other sectors of the Indian economy. Sharma also participated in a panel discussion on services exports with the commerce secretary from the Indian government, the deputy director general of the World Trade Organization, and a lead economist from the World Bank. The New Delhi conference attracted Indian and international buyers of services, service providers and exporters, government representatives, academics and international delegations led by investment and trade promotion agencies. It focused on building national competencies and growing exports in newer service sectors.
Blog Redesign Now Allows Anyone To Start Discussions The format of the Globalization of Services blog has been changed to allow anyone to initiate discussions. Previously, a team of leading thinkers would share their perspectives on offshoring and comment on current news and trends to spur discussions. But those who frequently read the blog, which averages more than 4,000 page views a week, expressed an interest in also initiating discussions. The blog brings together a community of academics, business and policy practitioners, journalists, professionals and individuals interested in the phenomenon of increasing global trade in services. You can find it at: www.wdi.umich.edu/blog/.
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S O C I A L
E N T E R P R I S E
The Social Enterprise research initiative spent the past year 4
developing new relationships with and documenting the experiences of innovative social enterprise organizations in Central and Eastern Europe and Latin America; developing several case studies, research surveys and a new course; bringing together our growing communities through two international conferences in Chile and Serbia; and organizing numerous activities and opportunities for students interested in this emerging field.
Social Entrepreneurship Course Debuts At Michigan A growing interest in social entrepreneurship at the University of Michigan has led to the creation of a new course at the Ross School of Business on the topic. “Social Entrepreneurship: Business Tools for Enhanced Social Impact,” an MBA-level course, started in January. It is being taught by Kelly Janiga, manager of the Institute’s Social Enterprise research initiative, and Andy Lawlor, a faculty member at the Ross School.
Kelly Janiga, manager of the WDI Social Enterprise research initiative
The course explores innovative business strategies that domestic and international nonprofits are adopting to enhance their sustainability and social impact, such as launching social enterprises or revenuegenerating enterprises. By participating in the course, students examine the challenges and opportunities nonprofits face when they adopt for-profit strategies. They also gain the practical skills needed to build and manage a high-impact social enterprise. The course uses lectures, cases, guest speakers and a final project to communicate key concepts. It is organized into six modules. They are: ■
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Defining the Social Entrepreneurship Landscape The Social Enterprise Model Adapted Business Tools for Social Change Internal Social Enterprise Challenges External Social Enterprise Challenges Metrics, Replication and Scale
Confirmed participants include representatives from leading organizations such as Ashoka, Aid to Artisans, the Taproot Foundation, Focus:HOPE, the NEW Center, the Social Innovation Accelerator and several University of Michigan faculty. This conference is being funded in part by the European commission. For more information on the conference, go to: http://www.wdi.umich.edu/NewsEvents/ Conferences/Global_Innovations.aspx
“Students who want to be involved here and abroad in the social sector as business leaders, consultants, board members, philanthropists, foundation leaders, managers, or social entrepreneurs will benefit from taking this course,” Janiga said.
Innovations in Nonprofit Sector Subject of WDI Conference WDI will host a conference, “Innovations in the Third Sector” on March 22-23 in Ann Arbor, which will focus on innovations occurring in the nonprofit sector domestically and in EU Accession and new member countries. Nonprofits in both the U.S. and in Eastern Europe are experiencing growing competition for increasingly limited donor funds. One positive development resulting from the intense competition, however, is that it encourages nonprofits to adopt innovative strategies to increase sustainability and independence. Specifically, a growing number of domestic and international nonprofits are realizing the benefits of integrating some appropriately adapted strategic tools from the for-profit sector into their organizations. It is not only a strategy to become more efficient, but also a strategy to enhance their social impact. The WDI conference aims to provide a venue for nonprofit directors, business leaders, foundation representatives and academics operating in the broadly defined social entrepreneurship/enterprise arena to share best practices and to network.
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WDI Expands into Brazil WDI’s presence in Brazil, the largest economy in Latin America and the 9th largest in the world, is growing. This summer, the Institute will partner with the Institute of Social Management (GESC) in Brazil and Microsoft to organize an international conference, “Third Sector Evolution: Innovation and Sustainability” on Aug. 16-18 in São Paulo. The conference will focus on social enterprise, leadership development and IT innovations as strategies to enhance the impact and sustainability of the third sector. It will also examine current obstacles and opportunities for fostering these activities in Latin America. Go to: www.wdi.umich.edu/ResearchInitiatives/ SocialEnterprise as the event date nears for more information. Also, WDI’s Latin America and Caribbean (LAC) NGO Alliance has expanded to include innovative NGOs in Brazil. The Institute has welcomed five new members so far (see box, page 5) and several other organizations have expressed an interest in joining.
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The new members from Brazil COMMITTEE FOR DEMOCRACY IN
(CDI): This is a non-governmental organization (NGO) that fosters the social inclusion of less-privileged social groups by using Information and Communication Technologies as tools to encourage active citizenship.
I N F O R M AT I O N T E C H N O L O G Y
A S H O K A B R A Z I L : This is an organization that aims to shape a citizen sector that is entrepreneurial, productive and globally integrated, and to develop the profession of social entrepreneurship around the world.
(Doctors of Joy): This organization is devoted to bringing happiness into the lives of hospitalized children through the dramatic art of clowning. The objective is to make it possible for children, their families and medical care professionals to experience simple and pure joy while easing the tension of the hospital environment.
DOUTORES DA ALEGRIA
THE INSTITUTE FOR THE DEVELOPMENT
development to rural low-income populations, using high efficiency and low cost technologies in the fields of renewable energy and agronomic science. G E S C I N S T I T U T E (Gestão para Organizações da Sociedade Civil/ Management of Civil Society Organizations): This NGO is dedicated to civil society strengthening through the promotion of good management practices in the third sector.
Full profiles and additional details about new members are available at: http://www.wdi.umich.edu/ResearchInitiatives/ SocialEnterprise/AlianzaONG/Eng/Members The LAC alliance, also known as the Alianza ONG, which was started in August 2005, now has 24 members from 9 countries. Members are innovative non-governmental organizations that have adopted, or are creating strategies for adopting, commercial approaches for their organization to become more sustainable and less dependent on donors. The aim of the alliance is to promote networking opportunities and the dissemination of best practices.
O F N AT U R A L E N E R G Y A N D S U S TA I N A B I L I T Y
(IDEEAS): This group works on sustainable development and environmental conservation in Brazil’s rural areas. Their mission is to develop, install and expand the use of models for sustainable
The Alianza ONG joins the NGO Alliance: Central & Eastern Europe & Eurasia. That alliance currently has 37 members from 16 different countries.
Case Studies from Latin American Social Enterprise Symposium (LASES) Published WDI, together with the Nonprofit Enterprise and Self-sustainability Team (NESsT), recently published the case studies written by practitioners and academics attending the 2006 Latin American Social Enterprise Symposium (LASES). The series includes 10 policy briefs written by attendees about their organization’s social enterprise strategy — their challenges and successes to date. The cases are designed to contribute best practices to the Social Enterprise field, and to encourage replication of successful models internationally. You can read the cases at: http://wdi.umich.edu/ResearchInitiatives/ SocialEnterprise/Resources/Cases.
SE Resources WDI’s website hosts hundreds of resources on Social Enterprise, including business and policy briefs, academic papers, reports from multilateral
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organizations and industry consulting firms, and scores of the latest articles from various media outlets. Go to: www.wdi.umich.edu and click on “Resources” under Social Enterprise in the left-hand column.
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Brazilian children (left, and below) participate in a computer workshop at CDI, a new member of WDI’s NGO Alliance.
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E X E C U T I V E
E D U C A T I O N
In FY 2006, Executive Education continued to expand its 6
geographic reach, furthered its collaboration with other initiatives within the Institute, partnered with new organizations around the globe, and offered international teaching opportunities to Ross
WDI: How can a company join the Network?
School faculty while also expanding its faculty network beyond
Ferencikova: We keep our exclusivity by creating a membership by invitation. Our members can refer another company as a member, someone whom they know professionally. We also identify companies that have a unique approach in some HR functions or in the global HR field, and then we invite them to join.
the Ross School. In all, Executive Education offered 18 programs in 12 countries.
HR Executives Learn from Top Thinkers, Each Other at HRN HRN MEMBERS
Aeroporti di Roma Bank Austria Coca-Cola HBC CSOB Egon Zehnder Eli Lilly Hewlett-Packard Holcim IBM InBev JT International K & H Bank Lafarge Motorola Nestlé Nokia Oracle Procter & Gamble SAP Zentiva
Mintzberg from McGill University. They were talking about relationships between the strategy and the HR fields.
Sonia Ferencikova is director of WDI’s Human Resource Network (HRN), the leading professional forum for HR executives active in Central and Eastern Europe. In this question-and-answer session, Ferencikova talks about the HRN. To view a video interview with Ferencikova, go to: www.wdi.umich.edu/ExecutiveEducation/HRN. WDI: What is the Human Resource Network? Ferencikova: It is a membership
organization for HR executives active in Central & Eastern Europe. They gather for bi-annual workshops, where they network with each other and learn from professors in the areas of HR and strategy. These include faculty from the University of Michigan’s Ross School of Business and other leading U.S. and European business schools such as IMD and the London Business School. WDI: How many members are in the Network? Ferencikova: We have 20 members. It’s
an ideal number for sharing opinions, ideas, experience or talking to the professors who we invite to our events. WDI: How does the Network operate? Ferencikova: We have an official and
unofficial layer. The official layer consists of twice-yearly workshops featuring top speakers from the HR field. The workshops are supplemented by roundtables. If one member has something very specific to discuss with the other members, we organize a roundtable around this topic. The unofficial layer is the platform for our members to network with each other informally throughout the year. The unofficial layer is an additional value that
is very important for every member because it means that they are not alone with their problems. They can share ideas and experiences with their peers.
Participants in a Rwanda training program
WDI: What is “double membership?” Ferencikova: The Network is designed for
HR managers, vice presidents or HR directors regionally responsible for Central and Eastern European operations. With the double membership option, they can invite their local HR managers to our events. Local management wouldn’t normally have the opportunity to meet the speakers we invite to our workshops so it’s a very good tool for local management to be in touch with these stars in their field.
Helping Rwanda Go From “Good To Great” WDI delivered three training programs for government ministers in Rwanda this past fall and in early 2007.
Ferencikova: We’ve had Noel Tichy, who is
The training is part of an agreement reached with the Government of Rwanda to train 100 senior ministry officials. The program began in fall and consists of three modules: leadership and executive skills; strategy and marketing; and financial management and budgeting.
very well known in the worldwide HR community. We also had Wayne Brockbank, who is among the best HR authors, speakers and communicators in the world. Other faculty have come from IMD, INSEAD, and London Business School.
Rob Pasick, a faculty affiliate with WDI’s Executive Education department, made the first trip to Rwanda in September to teach two groups of senior government ministers about leadership and executive skills.
WDI: Are all faculty HR professors?
The theme of Pasick’s two-week training was how to go “from good to great.” The text used was “Good to Great and the Social Sectors,” by Jim Collins.
WDI: Who are some of the faculty who have presented at Network meetings?
Ferencikova: No, because we believe that
there is a strong link between the HR field and the strategy field. So we had C.K. Prahalad from Michigan as our speaker and we also had Henry
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In addition to studying the Collins text, the class also tackled other issues. One was time management, but not the typical conundrum of what task to do first. Instead, the ministers said that they didn’t have control over their schedules. Another theme Pasick talked with the officials about was changing the image of the country from negative to positive. He told them not to dwell so much on where they are lacking and instead focus on what they’re doing well. Pasick spent the last day with the ministers talking about how to set goals and why it is important. Small teams were formed to talk about 90-day goals they could do within their organizations. A byproduct of this exercise, Pasick said, was the building of a team within the government. Many ministers told him that although they all work for the government they rarely talk to each other or work together. In December, 60 Rwandan senior government ministers successfully completed training programs on finance, accounting and budgeting. Professor Robert McGee, a senior accounting and financial sector reform executive with over 35 years of domestic and international experience, taught the two 3-day sessions. McGee said the class would veer off topic occasionally when someone in the group would ask a question and the discussion would shift to that issue. He said most conversations would end up back at the original principle and how best to apply it. “Most of the other groups I have instructed didn’t have a clue about the subject so they just let me teach whatever I wanted and they accepted it without comment,” McGee said. “But these two groups wanted me to focus on applications that they could apply to their jobs. I complied, of course, which made the sessions much more interesting for them and also for me.” In January, Pasick returned to Rwanda to lead a second training program for senior government ministers. His first trip was such a success that they asked him to come back and train a new group of ministers. Amy Gillett, director of WDI’s Executive Education, said the Institute is excited about adapting
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best practices from the business world to government management. “So much from the business world in areas such as strategic management, marketing, financial management and leadership can be applied to the public sector to increase effectiveness and productivity,” she said. “Based on the early success of the Rwandan training program to date, we have already been contacted by other governments and agencies regarding the possibility of replicating this program.”
HR Executives Get New Problem-Solving Tools Human Resource vice presidents, directors and managers from 13 Latin America countries gathered this past fall in Panama City, Panama for WDI’s innovative Strategic HR Executive Program. The three-day program, Oct. 25-27, gave HR executives the opportunity to strengthen and renew their professional expertise. Participants explored the most relevant issues facing their organization’s human resource area and developed some cutting-edge approaches to problem solving. The program was organized in partnership with WDI’s Chile-based training partner, Seminarium International. Kathleen Sutcliffe, Associate Dean for Faculty Development and Research at Michigan’s Ross School of Business and a professor of Management and Organizations at the school, said the group was “enormously curious, energetic and interested in talking and learning from each other about everything related to human resource management.” Sutcliffe said she told attendees how managing in uncertain or dynamic times requires routines and the creation of an infrastructure for trying to help people anticipate events before they occur. Equally important is building people’s resilience and capabilities so that they can deal with problems after they become evident. In addition to Sutcliffe, other instructors included Ralph Christensen, an HR consultant with over 25 years of experience in senior-level HR positions,
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and Bernard Donkerbrook, the principal with Donkerbrook Associates, an HR consulting firm based in Ann Arbor.
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Hernan Scotti, manager of Corporate HR at Volkswagen Argentina, praised the professors and said the modules were of “great value for management.” “They taught strategic issues with high complexity in a simple and practical way,” Scotti said. Jose Maria Rodriguez, a manager at Banco Popular in the Dominican Republic, said he would recommend the WDI/Seminarium program to all senior HR executives. For more information on the 2007 program, please email WDI’s Executive Education department at: wdi_ee@umich.edu.
Sharolyn Arnett
New Program Manager Joins WDI Sharolyn Arnett has joined WDI as Program Coordinator of Executive Education. Arnett is a graduate of Michigan State University with a bachelor’s degree in History. Before joining WDI, she worked as Education Coordinator at the Pilgrim United Church of Christ in Lansing, Michigan, where she directed the congregation in meeting the diverse needs of their refugee and inner-city families. Arnett returned from Gambia in West Africa in June 2006 after working two years with the United States Peace Corps as a Teacher Trainer. In this capacity, she worked with local schools on skills development and resource management. Her desire to fully understand the community where she worked led her to become proficient in the local language, Wolof. She has enjoyed working with education programs both on a domestic and international level.
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Virika will come to Ann Arbor to observe clinical practices at UM Hospital.
Global Health Interdepartmental Concentration (GHIC). The GHIC focuses on public health issues resulting from the globalization of the world’s economy. But Smith said there are too few internships and a lack of resources to fully take advantage of opportunities. WDI will fund five additional internships which will permit greater risk taking and the placement of internships in areas of particular need that currently lack funding, he said. Finally, at SPH and its Center on Global Health, WDI will provide funding to support research that leads to better understanding of global public health interventions and the enterprise solutions that make programs successful. The second collaboration, with the Medical School, involves funding an intensive clinical and administrative engagement at the Virika Hospital in Fort Portal, Uganda. A relationship also will be developed with A Mountain of the Moon University in Fort Portal.
SPH’s Dr. Amr Soliman, second from right, and student Molly Hartrich visit the Primary Healthcare Center in Dar es Salam, Tanzania
The first part of the engagement is a Multidisciplinary Action Project (MAP) with a team of Ross MBA students this spring. The students will develop a business plan to identify potential growth areas for Virika. At the same time, two medical students and a physician from the Medical School will review the clinical practices of Virika and come up with a set of recommended changes. After this initial visit, teams of physicians and students will make three trips per year for three years, focusing on one particular clinical area during each visit. Also, physicians or administrators from
A Mountain of the Moon University will be incorporated in projects related to the management of the hospital. The information developed from Ross School faculty visits, the MAP project and summer internships will provide the material and ideas for curriculum and programs that A Mountain of the Moon could offer to health care provider customers. The hope is that the collaboration between the medical and business schools at Virika could be replicated at other facilities internationally. “It’s pretty unique,” said Dr. William E. Chavey, associate professor in the Department of Family Medicine at the medical school. “I’ve spoken to a lot of people and no one has even seen it done this way. It’s a creative, promising approach.” Chavey said the project could not proceed without the WDI funding.
“The funding allows us to send people over there without penalizing them,” he said. “They can be there short periods without having to take vacation time or losing salary. The same with students; we can cover their costs. We’re really excited.” Paul Clyde, adjunct professor at the Ross School, said he was always interested in developing a program that integrates business practices with the medical side and knew Dr. Chavey was as well. “This is a model that could be extended location to location,” Clyde said. “If successful, it could be a way to develop both education institutions and hospital capacity.” Without WDI’s help, Clyde said “funding would have been a challenge. We would have been doing it piecemeal here and there.” Clyde said he is “very excited” about the Uganda project. “If it works well,” he said, “it could have a significant impact.”
New WDI Initiative Will Develop Teaching Materials WDI is in the process of creating a “Teaching Materials Development Organization” (TMDO) to develop high-quality, business school teaching materials. The TMDO will create course content based on WDI research in international business; support Ross School faculty efforts to move their research and other ideas into the classroom; and provide a forum for academics around the world to share teaching materials. These materials will include case John Branch studies, syllabi, videos, and simulations to provide a one-stop shop for course development. John Branch, currently a highly-rated faculty member at the Ross School of Business and a WDI faculty affiliate, will lead this new initiative. He is currently strategizing the best structure for the organization and recruiting a small stable of case writers. It is likely that by summer ’07 the case writers will be ready to be a resource for the Ross and UM faculty. Part of the initiative will be the “WDI Educators’ Forum,” a website that will distribute teaching materials on international business to other schools.
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Work with authors and teachers to make the “WDI Educators’ Forum” a leading site for information on international business teaching materials.
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Create and manage an organization that will support the teaching materials development needs of WDI and UM faculty.
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Work with UM faculty to support their efforts at developing teaching materials.
“The William Davidson Institute, the Ross School of Business, and the University of Michigan are all brimming with invaluable insights into transition and emerging market economies,” Branch said. “This knowledge, however, is not always translated into materials for use in the classroom. Similarly, there is also a seemingly limitless cadre of researchers and practitioners outside the University, especially in the transition and emerging market economies themselves, whose expertise remains untapped for pedagogical purposes.” Branch said as director of Educational Outreach at WDI, his goal to support these experts of transition and emerging economies by first helping them to translate their knowledge into classroom materials, and secondly, by furnishing them with a means of publishing these materials for widespread use.
Among the initiative’s goals are to: ■
Create, aggregate and disseminate teaching materials on international business topics, with a focus on WDI’s areas of research interest.
He said the new WDI initiative has the potential to have “enormous potential for impact in the world.”
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Farmer Tells How He Built Healthcare In Haiti, Rwanda Paul Farmer charmed a packed Rackham Auditorium Feb. 12, telling funny stories and witty asides while defending the cost of treating HIV patients in Haiti and Rwanda and challenging research universities to do more outreach to communities.
weight and was healthy again. Farmer showed a photo of a smiling Joseph, who now speaks at PIH events about his transformation.
Farmer, co-founding director of Partners In Health, was the special guest at a lecture sponsored by the Ross School of Business and the William Davidson Institute. In addition to filling the 1,100-seat auditorium, Farmer’s talk — “Building a Health Care Movement: From Haiti to Rwanda” — also drew large crowds to eight locations around Ann Arbor, Detroit and on campus to view the live video feed.
He wondered aloud what the cost was of doing nothing. He questioned how the morale of the Haitian and medical communities would be affected if no treatment work was done, if no medication was dispensed.
Farmer, the subject of the New York Times bestseller, “Mountains Beyond Mountains” by Pulitzer Prize-winning author Tracy Kidder, talked first about his work in Haiti. He has worked in the Caribbean island nation since 1983. Partners In Health (PIH), an international charity organization that provides direct health care services and undertakes research and advocacy activities on behalf of those who are sick and living in poverty, now works in nine regions across the country and ranks as one of the largest nongovernmental health care providers in Haiti. It is also the only provider of comprehensive primary care, regardless of ability to pay, for more than half a million impoverished people living in the mountainous Central Plateau. Farmer’s group had been promised some money to rebuild a clinic in Haiti and begin dispensing anti-retroviral (ARV) drugs. But when the money didn’t come right away, PIH took out a bank loan and rebuilt the clinic on time. This decision likely saved many lives, including that of a man named Joseph. Farmer showed a photo of the severely emaciated man, his body wracked with HIV and tuberculosis (TB). Joseph “had given up,” Farmer said. But he convinced Joseph to take the new medicine. Within six months, Joseph had gained
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Farmer took issue with medical journal articles that said it was more cost effective to prevent HIV than treat it.
PIH’s success in Haiti led to invitations from several African countries. “I said we couldn’t in good conscience say yes unless we found partners,” Farmer said. PIH, with help from the Clinton HIV/AIDS Initiative and private donors, began working in two rural districts in Rwanda in April 2005 to launch HIV care and treatment. When they arrived in Rwanda, the first hospital they were sent to had electricity, doctors, an X-ray machine, and was clean. When he told the government health ministry officials that they could handle rougher conditions, the officials found a more dire location for his work. “There are moments where you wish you kept your mouth shut,” Farmer said with a smile. He showed slides of the rundown facility, with blood and graffiti left on the walls from the genocide. He then showed photos of the refurbished clinic, freshly painted wards and a lush green entrance. “Rwanda is a very inspiring place,” Farmer told the crowd. “With the right help we knew what to do. Rebuild this place. Train local people to do the work as we had done in Haiti. Take care of the sick from the beginning and it can’t be for one disease or two like tuberculosis and HIV.” He also had before-and-after photos of a patient they treated for HIV and TB. Like Joseph in Haiti, John’s ribs and bones
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protruded from his skin. A few months after treatment at the PIH clinic, John sported a round belly.
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“He went from Skeletor to someone needing a little Lipitor,” Farmer joked. “I have to talk to him about losing that gut.” But Farmer said even with thousands of great transformation stories like John’s and Joseph’s, some think treating HIV is too expensive and a “gold-plated model.” But he said cost analysis shows it is no more expensive than prevention measures. Farmer then challenged research universities like Harvard, where he teaches, and U-M to do more. He showed how energies and efforts at each university are heavily tilted towards research and teaching. A small sliver is dedicated to service.
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Following his talk, Farmer was besieged by students looking for career advice, wanting his autograph on their Paul Farmer books, or asking to pose for a picture.
“Teaching and research are noble vocations but it’s very difficult to intervene effectively if we don’t have a major service component,” Farmer said. To end his talk, Farmer showed two final images. The first was of schoolchildren in Kenya, most of whom have lost their parents to AIDS. Farmer said a friend asked why there weren’t more AIDS orphans in Haiti. “I said, ‘Because we take care of their mothers,’” Farmer said. The final image Farmer showed was a map of Africa drawn on a chalkboard at the same Kenyan school. Under it the teacher had written “Save” in big letters, which Farmer assumed meant “don’t erase.” “Of course I saw something very different,” he said, “and I’m sure you will too.”
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Farmer speaks at Rackham Auditorium.
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D E V E L O P M E N T
C O N S U L T I N G
S E R V I C E S
New Director; New Name
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Khalid A. Al-Naif has joined WDI as Director of the newly-renamed Development Consulting Services, formerly Technical Assistance. Al-Naif has 25 years of experience in private and public sector business development and marketing at two international banks, the U.S. Agency for International Development (USAID) and several international consulting firms. He has served as Chief of Party for many USAID-funded development projects, most recently for the Iraq Private Sector Growth and Employment Generation Project (IZDIHAR). The project is a $169 million, three-year initiative to assist the Government of Iraq in promoting economic growth and prosperity for all Iraqis by developing a more market-friendly environment for broad-based economic activity and business expansion. In his career, Al-Naif has managed a diverse USAID economic development portfolio that exceeded $1.5 billion. While in banking, Al-Naif
managed a business development portfolio that exceeded $4 billion in the United States, Europe, Middle East and Asia Pacific regions. He also has served as regional economic and finance advisor for USAID in Amman, Jordan, country corporate officer for Arab Bank PLC in Amman and credit and marketing officer at Chase Manhattan Bank, in the United Kingdom and Middle East. He has a bachelor’s degree from Bradley University in Economics. “Khalid brings a wealth of on-the-ground knowledge and experience managing large programs, and he’s extremely well connected across all the development organizations,” said WDI Executive Director Robert Kennedy. “The last several years have shown Technical Assistance is a viable business here. WDI has a chance to build a really special organization and Khalid shares my vision of the potential.” One of the first changes made by Al-Naif was the name of the WDI initiative. Out is Technical Assistance; in is Development Consulting Services. Al-Naif said the new name is more descriptive of where he plans to take the initiative. He also plans overhauling the initiative’s pages on the WDI website to make it an interactive multimedia marketing tool. “We will re-engineer and re-staff to meet our new goals and objectives,” he said. “We will pursue a growth-based strategy over the next two years of operations that will focus on new market development, operational planning, current and future project portfolio, and planning and execution.”
Khalid A. Al-Naif, Director of Development Consulting Services
Al-Naif said the Institute will develop a technical assistance niche in the industry and disseminate its pre-qualifications widely among donor agencies, major foundations and proactive players in the consulting industry. WDI will continue to look to grow in capacity building in higher education and start a new niche in monitoring and evaluation, Al-Naif said.
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Other areas where WDI may expand will be announced later. The Institute will target potential clients such as the African Development Foundation, USAID, U.S. Departments of Commerce, State, Health and Human Services, and Treasury, Millennium Challenge Corp., MEPI, The World Bank, IFC, and major U.S.-based foundations such as the Gates Foundation, the Rockefeller Foundation and the Ford Foundation. “Our initial geographic area of operation will be Africa, Asia and Near East, and thereafter expand to Europe, Eurasia and finally to Central and South America,” he said.
Career Center Part of New Contract in Algeria WDI has been awarded a strategic contract to provide economic reform management training for future economic and business leaders at the Institute of National Commerce (INC) in Algeria. The project was awarded by Higher Education for Development (HED), which is part of USAID’s Bureau of Economic Growth. It is funded by USAID. The partnership, called Educating Managers, Promoting Linkages and Opportunity Integration — or EMPLOI — began in January. Under this two year contract, WDI will: 1) work with the next generation of Algerian business managers to increase their technical skills, enhance their leadership capabilities and develop their practical, analytical proficiency through an enhanced, internationally accepted curriculum; 2) build linkages for partnership between the INC and the Algerian private sector; and 3) provide assistance to business students in understanding their career opportunities after graduation. This partnership will enhance the INC curriculum to meet the changing needs of the Algerian business community, with a particular focus on training managers to understand how to analyze,
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react and lead organizations through change.
The goals of the 18-month project are to:
The Director of WDI’s Development Consulting Services, Khalid Al-Naif, said: “We are excited to be among the first U.S. institutions on the ground in Algeria. This flourishing country is witnessing a gradual transition away from military rule towards civilian governance. WDI’s engagement will not only contribute to development of Algerian human resources but will also provide more leadership from private sector down this important economic reform path for the country.”
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The essence of WDI’s engagement is to link Algeria’s academic community with the private sector and public sector business institutions. WDI’s growth hypothesis is that building national competitiveness through the development of human capital is one of the most important factors for building a private sector in Algeria, for completing the transition to a market-oriented economy, and for creating an environment that generates sustainable economic growth. The Algerian educational system, in particular, will play a key role in ensuring that future Algerian business leaders will possess the knowledge, skills and attitudes necessary to start and manage new businesses. Those future leaders should also know how to privatize and restructure existing enterprises and to regulate business activity effectively.
WDI To Help Establish Marketing Center in Kazakhstan Higher Education for Development (HED) has selected WDI to develop a marketing center at the International Academy of Business (IAB) in Kazakhstan with funds from the U.S. Agency for International Development (USAID). The Institute was one of 10 educational institutions in the U.S. to win one of the “New IDEAS Partnership Program” awards. The WDI project, called the Marketing Education & Research Center Partnership, will build bridges between the private sector and the International Academy of Business.
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Identify the marketing knowledge needs of the business community Give students real-world training; bring the IAB’s marketing curriculum up to international standards Provide relevant courses to address the challenges and issues facing marketers today
The marketing center project, which began in the fall, grew out of WDI’s involvement in the Central Asia Business and Economics Education (B&EE) program, financed by USAID and implemented by CARANA Corp. Under the CARANA project, Aaron Ahuvia, Associate Professor of Management Studies at the University of Michigan-Dearborn School of Management, went to Almaty, Kazakhstan to assist in the development of the center in March 2006.
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Students at the School of Finance and Banking
Rwanda Project at SFB Continues WDI’s contract with the Government of Rwanda (GoR) to provide capacity building to the School of Finance and Banking (SFB) in Kigali continues to progress. Brent Chrite, the former managing director of WDI and currently an associate dean at the University of Arizona, spent two weeks at the SFB this fall looking at several aspects of the school.
Dr. Ahuvia helped IAB craft a more focused strategy for the marketing center by narrowing their focus to providing continuing education workshops for professionals, and creating internship opportunities for IAB students to apply their skills in a real-world setting.
Based on his trip, Chrite produced a tentative curricular outline for both BBA and MBA programs, and an overview of the need to realign the research projects. He also developed templates that could be adopted by the SFB to help them standardize and improve the caliber of the industrial internship experiences for the students.
Based on the foundation for the center that was developed, WDI applied to USAID under the “New IDEAS Partnership Program” for a stand-alone grant to assist the IAB marketing center develop its programs and linkages to the Kazak business community.
In June 2006, WDI signed a five-year agreement to provide capacity building for the school. The government wants to transform the SFB into an internationally accredited, regional center of excellence delivering high quality management education programs.
Soon after the launch, Alyona Penchukova, director of the marketing center, visited Ann Arbor to develop a business plan and financial model.
Among the goals and priorities of the project are:
Also during the first phase of the project, about 100 Kazakhstan businesses will be surveyed about their marketing needs. They will also be asked about their interest in having market research done, participating in executive education marketing courses, and employing an intern through the marketing center and IAB.
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Improving curricular and programmatic activities Creating local faculty development mechanisms and strengthening the school’s academic staff Identifying degree and non-degree educational needs for both the civil and business sectors in Rwanda and positioning the SFB to serve those needs Creating a leadership and management structure to support the school’s mission Working with SFB management to upgrade the school’s physical facilities and technological infrastructure
in Rwanda
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B A S E
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Over the past year, the Base of the Pyramid research initiative worked closely with its practitioner, 12
academic and student partners within its strategic niche of understanding and maximizing the poverty alleviation impacts of BoP enterprises. This included developing several academic and practitioner papers, redesigning the MBA BoP course, authoring a number of new teaching cases, hosting the first BoP conference explicitly targeting the academic community, collaborating with a variety of partner organizations on action-based field projects in Asia and Latin America, facilitating the development of a strong Ross School BoP community of interest, and securing and implementing a new donor agency-funded research project.
BoP Conference Planned WDI, along with the Center for Sustainable Global Enterprise at Cornell University, will bring together some of the leading thinkers for a major conference that builds on the growing global interest in enterprise-based strategies for serving the four billion poor at the base of the economic pyramid (BoP).
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The conference will feature plenary sessions by leading BoP experts that delve into each of these three topics, as well as concurrent sessions that provide an opportunity for participants to engage cutting-edge thinkers on specific issues. Speakers include: ■
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BoP Conference speakers will include C.K. Prahalad, Stuart Hart and Ted London
The conference, “Business with Four Billion: Creating Mutual Value at the Base of the Pyramid,” will be held Sept. 9-11 in Ann Arbor, Michigan. Sponsors include the Ross School of Business and the Erb Institute for Global Sustainable Enterprise, both at the University of Michigan. More than 300 of the leading BoP business managers, policy makers, social entrepreneurs, academics, non-profit experts, and development agency professionals are expected to attend. In particular, the conference will focus on sharing the latest thinking on three of the most intriguing and timely issues facing organizations that are interested in developing enterprise-based approaches to creating mutual value with low-income communities. These are:
Cultivating a deeper awareness of the landscape at the base of the pyramid Understanding the development implications of a BoP approach as compared to other poverty alleviation strategies Developing the new organizational capabilities required to achieve both business growth and poverty alleviation
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Helene Gayle, president and CEO of CARE USA C.K. Prahalad, Paul and Ruth McCracken Distinguished University Professor of Corporate Strategy, Ross School of Business; Distinguished Fellow of WDI Stuart Hart, Samuel C. Johnson Chair in Sustainable Global Enterprise at Cornell University; founder, Center for Sustainable Global Enterprise and the Base of the Pyramid Learning Lab Luis Alberto Moreno, president, Inter-American Development Bank Al Hammond, vice president for Innovations, World Resources Institute Mark Milstein, lecturer of Strategy, Innovation and Sustainable Global Enterprise; director, Center for Sustainable Global Enterprise Robert Kennedy, executive director, WDI Ted London, director of the BoP Research Initiative, WDI
“We are delighted to be organizing this conference with the Center for Sustainable
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Global Enterprise at Cornell University,” London said. “Combining the expertise and reach of our two institutions has allowed us to assemble a terrific set of speakers. The initial response is outstanding, and we believe this conference could be the next watershed event for organizations interested in developing enterprise-based strategies for serving the BoP.”
BoP Community Grows at UM Interest in BoP issues has grown at UM as students have formed a loosely-knit group of more than 50 people dedicated to learning more about this growing phenomenon. The community began to form in September with a few students talking about the idea. Molly Christiansen said there was an ad hoc meeting of some interested students “to figure out what form the student interest should take. We decided to let the group form organically.” Nina Henning said she and fellow students Blair Miller and Aparna Sundaram had discussions on how to leverage the enthusiasm about BoP topics to organize activities like brown bag lunches, a BoP panel at the Net Impact Forum, and opportunities to interact with leaders in the BoP field. “At the first meeting, we discussed whether or not we wanted to form a new official Ross club and decided that was unnecessary at this point and instead decided to call it the BoP Student Working Group, which has informal ties to both the Emerging Markets and Net Impact Clubs,” Nina said. The student group organized activities with
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the guest speakers that Ted London, director of WDI’s BoP research initiative, invited to his MBA class “Business Strategies for the Base of the Pyramid.” These included breakfasts with Farouk Jiwa of CARE Canada and Vijay Sharma of Hindustan Lever, lunch with Marcos Neto and Colin Beckwith of CARE USA, and a wine and cheese event and dinner with Hector Ureta of Cemex. “We also had a nice time celebrating the end of the semester during a holiday party at Ted’s house,” Molly said. “Many of the students from Ted’s class joined us as well as some professors and other students who are a part of the BoP student group.” In January, Blair, Nina and Andy Hastings organized a panel for the 2007 Ross Net Impact Forum called “Progress at the BoP.” WDI Executive Director Robert Kennedy moderated and Mike Hokenson, Founder and Managing Member of Minlam Asset Management, Ben Powell, Managing Partner of Agora Partnerships, and Phil LaRocco, President of E+Co. served as panelists. More brown bag lunches are planned for winter and spring and an interactive website for the group is being developed. Nina has recruited five students from various disciplines across campus with whom she is working with on an independent study project and the interest continues to grow as word spreads about the group.
London Joins UNDP Advisory Group Ted London, WDI Director of the Base of the Pyramid research initiative, has joined a United Nations Development Programme (UNDP) advisory group examining the role that businesses can play in accelerating economic growth and development as part of the Millennium Development Goals (MDG). London, who also teaches at the Ross School of Business at the University of Michigan, participated in a working group which deals with the collection and analysis of case studies — including the identification of trends and themes on how businesses contribute towards the MDGs across geographies and sectors. An earlier group studied data that made the
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case for businesses contributing to MDGs. A third working group will deal with partnership outreach and delivery mechanisms. The result of work, the UNDP “Partnership Report on the Private Sector’s Contribution to the MDGs,” is expected to be published in June. The report hopes to show leading-edge examples and business models of how businesses can contribute to the MDGs through their core competencies.
In addition, London brought his current research into the classroom and has developed, often in collaboration with MBA students, several BoP-oriented teaching cases and associated teaching notes. Two newly-developed cases used were, “CARE USA: Making the Markets Work for the Poor?” and “Scojo Foundation: A Vision for Growth at the Base of the Pyramid.”
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Other members of this UNDP initiative include C.K. Prahalad of the Ross School and WDI Distinguished Fellow, and Stuart Hart of Cornell University and a WDI Research Fellow.
BoP Course at Ross Features Speakers, New Cases Ted London’s MBA course on doing business at the base of the pyramid resumed during fall semester. London last taught the class in fall 2005 when it was 1.5 credits. This year’s course was 2.25 credits and met more often due to the popularity among students interested in studying the growing business phenomenon. London’s class, “BA612 – Business Strategies for the Base of the Pyramid,” integrates concepts of strategy, international business and sustainable enterprise to stimulate the leadership skills and competitive imagination needed to design strategies for the base of the pyramid. Through a combination of cases, readings, lectures, videos and guest speakers, class sessions engage students in discussions aimed at identifying the business opportunities associated with base of the pyramid markets and developing the strategies and business models required to productively explore those opportunities. Four guest speakers — Hector Ureta of CEMEX, Farouk Jiwa of CARE Canada, Marcos Neto of CARE USA, and Vijay Sharma of Hindustan Lever — discussed their real-world experiences in designing and implementing BoP-oriented enterprises. Each brought a unique perspective on the opportunities at the BoP and shared both their successes and the challenges that they faced.
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The CARE teaching case examined issues around whether the nonprofit was a good candidate to implement revenue-generating enterprises for poverty alleviation. The Scojo case looked at how the organization could measure its impact, how it should grow in the future — by supplying more reading glasses or empowering more entrepreneurs — and whether it should transition to a for-profit model.
In Brief Ted London and WDI Research Fellow Stuart Hart authored two articles that were published in the past year. Their article, “Everything You Need to Know About...Emerging Market Strategy,” was published in October in World Business. In April 2006, the pair penned “Do’s and Don’ts in Emerging Markets,” which appeared in the magazine for the IESE Business School at the University of Navarra in Spain...The WDI BoP video library grew in the past six months. Video interviews with Colin Beckwith CARE’s director in Central America, Vijay Sharma of Hindustan Lever, Farouk Jiwa of CARE Canada, and Hector Ureta of the Mexican cement-maker CEMEX were recently added. Those videos are part of a collection that also includes interviews with Marcos Neto of CARE USA, Patrick Donohue of BRINQ, Jesse Moore of CARE Canada, Dr. Jordan Kassalow of the Scojo Foundation, and Stuart Hart of Cornell’s Johnson School of Management.
Hector Ureta of CEMEX visits with two students interested in learning more about BoP issues.
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speaker series This past fall, WDI hosted 10 guest speakers as part of its 14
Global Impact and Social Enterprise speaker series. The Global Impact Speaker Series features leading thinkers who work in S U P P O R T I N G
emerging markets. The goal of the series is to spur discussion
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around development and developing country issues. The Social Enterprise Speaker Series features leading academics and practitioners in the social enterprise field. Visitors discuss the
Tiger said Genpact tells prospective clients to focus on what they do well and do it, then turn over everything else to a firm like Genpact. In 2005, Genpact’s revenues were $493 million. The growth in the BPO market will continue for some time, Tiger said, India demand growing 40 percent and global demand overall increasing 15 percent.
expanding role of NGO’s and corporations in achieving social impact and interact with the growing number of University of Michigan students who are interested in social enterprise. In addition to their talks, the speakers also sat down for one-on-one video interviews which can be found at: www.wdi.umich.edu/Publications/VideoAudio.
Guy Pfeffermann, director of the Global Business School Network at the International Finance Corp. (IFC), outlined the many different economic development approaches that have been tried in Africa. Pfeffermann, who spoke on Sept. 15, said that growth matters because it is good for the poor. But there has been little growth in Africa, and “this is a horrible fact.”
Vodafone. While good, Hart said most companies’ attempts to enter the BoP have failed to hit the mark. Companies must use their imagination and embrace co-creation as the key to its business success. Customers must be viewed as partners and clients as colleagues. “That’s the transition we need to make and it’s not going to be easy,” Hart said.
The IFC is a member organization of the World Bank Group, which promotes private sector investment in developing and transition countries. Pfeffermann, who was the IFC’s chief economist for 15 years, said those interested in spurring economic growth in Africa must look at the successful countries “and dig and find out how they did it.” He said he dreams of a day when Africa no longer needs or wants aid. “It is possible,” he said.
Stu Hart gave a status update on the Stu Hart
base of the pyramid movement to UM students and faculty at his Sept. 21 talk. Hart, the S.C. Johnson Chair of Sustainable Global Enterprise at Cornell University’s Johnson School of Management, said there is good momentum in the BoP space. Some of the companies experimenting with BoP approaches include Unilever, Procter & Gamble, Shell and
Elisabeth Rhyne, senior vice president of International Operations at ACCION International, said the field of microfinance is now a competitive market, giving those in need of loans more choices at lower prices while also presenting micro lenders a new set of challenges. Rhyne, who spoke Oct. 11, said the changes in the field have been staggering. It took ACCION and its partners 20 years to reach 1 million clients. It only took four years to reach its second million. Worldwide, 30 million people currently have services from microfinance providers. One challenge is how to measure success from a social standpoint. Looking at the double bottom line — profit as well as social impact — makes it easy to gauge business success, but “the tools we have to measure social impact is pathetic,” she said.
Wellington Nogueira and Fabio Rosa built their VN (Tiger) Tyagarajan
VN (Tiger) Tyagarajan, executive vice president and head of sales, marketing and business development at Genpact, said the company must be three things to stay one of the world’s leading suppliers of business services and technology solutions. Genpact, a former subsidiary of GE, must be clever enough to discover the next hot destination for offshoring activities, smart enough to realize it and nimble enough to get there quickly, Tyagarajan said at his Sept. 27 presentation.
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organizations on the same foundation, said Nogueira of Doutores da Alegria (Doctors of Joy). He and Rosa, founder and executive director of IDEAAS (Institute for Development of Natural Energy and Sustainability), spoke at WDI on Nov. 8. “It’s all about understanding the needs of the people,” Nogueira said. Nogueira’s group dresses up as clowns to perform in children’s hospitals in Brazil while Rosa’s nonprofit supplies electricity to rural Brazil. Rosa said there are about 25 million people — or about 10 percent — in Brazil who lack access to electricity. Before Rosa started 24 years ago, that number was about 40 percent.
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He said it costs the electric companies and government $8,000 to bring electricity to a farm. Rosa does it for $400. Participants get a solar panel and rent a generator that they are trained to operate. They pay a monthly fee but don’t have to fund the initial investment. His next steps include scaling the project and looking for partners in other countries. Nogueira’s Doctors of Joy has been around for 15 years and has 47 clowns as members. They work in 12 public hospitals — 7 in Sao Paulo, 3 in Recife and 2 in Rio de Janeiro. Healthcare organizations and the Brazil Ministry of Health started to study how bringing joy to hospitalized children can positively affect their stay.
Beth Collins talked to UM students Nov. 15 about how her business background has helped solve social problems in Rwanda. Collins, the country director for Rwanda for the Clinton Foundation (CF) for nearly three years, discussed how she and others were able to streamline and reduce the costs of an HIV/AIDS drug delivery program. The foundation’s initiative, called the Clinton HIV/AIDS Initiative or CHAI, negotiated with drug manufacturers and told them if they dropped their drug prices the foundation’s consultants would find production cost savings. The foundation also teamed with countries to centralize demand. As a result, the foundation was able to guarantee the drug companies volume and payment. In October 2003 before the foundation began its work, the HIV/AIDS drug cost per person per year was $562. CHAI got the price down to $140.
Vijay Sharma, the head of an initiative in India that trains village women to become rural entrepreneurs, said the Hindustan Lever program has impacted the lives of countless women, giving them an income from selling products and a greater self-esteem and sense of empowerment.
Project Shakti started in a few pilot villages in 2000. By the end of 2004 it had grown to over 13,000 Shakti women entrepreneurs covering 50,000 villages in 12 states, selling to 70 million consumers — a 30% increase in rural population reached. There are now 30,000 Shakti entrepreneurs in 15 states representing 40 percent of the company’s rural sales growth.
Marcos Neto
, program director for CARE USA in Central America, talked to UM students Dec. 4 about the progress the nonprofit has made as it ponders the use of revenue-generating enterprises (RGE) as a poverty-fighting tool. More than a year ago, CARE asked WDI to examine whether it could benefit from a more institutionalized approach to supporting the development of RGEs. Neto and colleague Colin Beckwith were back at WDI to tap into UM’s “brain power” to get suggestions on how to proceed.
Beth Collins
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Project Shakti grew out of a realization by Hindustan Lever, Unilever’s business arm in India, that it needed to expand its reach into the country’s smaller villages. The company made presentations at rural self-help group meetings and invited women to become directto-consumer sales distributors. The company trains the women in selling, commercial knowledge and bookkeeping, teaching them to become fully-fledged microentrepreneurs.
Neto said CARE will create 3-5 mixed and for-profit RGEs. There will be a five-year commitment to each pilot and the RGEs will be kept separate from CARE’s social programs.
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In the end, Neto said CARE wants a few things to come out of its use of RGEs. One is to have them advance CARE’s mission. Another is for the RGEs to become self-sufficient. And Neto said that any profits made by an RGE would be re-invested in that and other CARE programs.
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Mark Sutter
Mark Sutter, president and CEO of Terumo Cardiovascular Systems Corp., a subsidiary of Terumo Corporation of Japan, talked about growth of the global healthcare industry at his Dec. 6 talk. Terumo develops and sells medical device equipment. Cardiovascular disease is on the rise, especially in low-income countries with large populations who smoke, have a poor diet and don’t exercise. “All of this creates a big opportunity, unfortunately, for us,” he said. “We’re developing products to save these people. That’s the way our company looks at it.” The U.S., Europe and Japan markets account for most of Terumo’s sales but Sutter said Latin America and Asia represent the best areas for growth.
Marcus Neto
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2007calendar
Big Picture Marketing September 12-14, 2007 | Turkey
Operations Management S P E A K E R S
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July 4-5, 2007 | Costa Rica July 31-August 1, 2007 | Guatemala
C O N F E R E N C E S
Brand Equity
Global Innovations in the Third Sector
April 4, 2007 | Ann Arbor, Michigan
April 23-24, 2007 | Colombia April 26-27, 2007 | Costa Rica July 2-3, 2007 | Turkey July 5-6, 2007 | Croatia
Innovation in the Third Sector: Sustainability and Social Impact
Leadership.
August 16-18, 2007 | Sao Paulo, Brazil
May 10-11, 2007 | Dominican Republic June 25-26, 2007 | Guatemala June 28-29, 2007 | Panama
March 22-23, 2007 | Ann Arbor, Michigan
WDI Global Impact Speaker Series: Theodore Kattouf of AMIDEAST
Business with Four Billion: Creating Mutual Value at the Base of the Pyramid September 9-11, 2007 | Ann Arbor, Michigan
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Strategic Management Program May 21-June 1, 2007 | Latvia E D U C A T I O N
HR Network Workshop
Services Marketing
May 3-4, 2007 | Slovenia October 18-19, 2007 | Czech Republic
April 26-27, 2007 | Mexico June 28-29, 2007 | Chile July 5-6, 2007 | Dominican Republic
Mergers & Acquisitions
Sales Management
Product & Service Management
June 21-22, 2007 | El Salvador September 6-7, 2007 | Costa Rica September 13-14, 2007 | Chile
August 23-24, 2007 | Guatemala
Human Resource Program
Sales Management Congress
General Management Program
May 8, 2007 | Guatemala
October 15-26, 2007 | Croatia
May 24-25, 2007 | Croatia
October 2-5, 2007 | Costa Rica
NON-PROFIT U.S. POSTAGE
PAID
THE WILLIAM DAVIDSON INSTITUTE
ANN ARBOR, MI
AT THE UNIVERSITY OF MICHIGAN
PERMIT NO. 144
William Davidson Institute 724 East University Avenue Ann Arbor, Michigan 48109-1234 Tel 734.763.5020 Fax 734.763.5850 www.wdi.umich.edu
Creating, aggregating and disseminating intellectual capital on important business and policy issues in emerging markets
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