Director's Message: Johnson School travels to Asia

In March, Dean Robert Swieringa and Professor Hal Bierman, together with Dean Stewart Schwab of the Cornell Law School, will be meeting with alumni in Shanghai, China; Seoul, Korea; and Tokyo, Japan, to provide an overview of current developments at the Johnson School, Law School, and Cornell, and to provide what is sure to be an engaging and informative presentation by Professor Bierman on "Financial Strategies for Increasing Shareholder Value."

Shanghai, Seoul, and Tokyo are centers of international commerce, and Asia continues to be a growing and important source of high-quality candidates for admission to the Johnson School, as well as home to an increasing number of enthusiastic and wonderful Johnson School and Cornell University graduates. We are greatly looking forward to meeting with alumni in these communities, and to bringing them the good news about all of the positive developments at the Johnson School and elsewhere on the Cornell campus.

The Shanghai alumni event, which is being co-sponsored by the Cornell Club of Shanghai, will take place on March 19. The Seoul alumni event, which is being sponsored by the Cornell Club of Korea, will take place on March 21. Our Tokyo event, jointly presented by the Johnson School Club of Japan and the Cornell Law Society of Japan, will take place on March 23 at the Hotel New Otani. The Johnson School gratefully acknowledges the support of our co-sponsors, and of our alumni leaders, in helping to plan these three exciting alumni events.

All Johnson School alumni in Asia will soon be receiving invitations to these three events. In addition, any Johnson School graduate who will be in Asia for business or pleasure on the week of March 19 is cordially invited to join us at any or all of our Asia alumni events. Please contact the alumni office to be added to the invitation list.

Risa M. Mish '85, JD '88
Director, Alumni Relations

Financial Times ranks us #16 in U.S.

The Financial Times (FT) last month released its annual assessment of full-time MBA programs. The Johnson School's overall ranking in this poll is #16 among U.S. schools (over the last three years we have averaged a rank of #14 among U.S. schools). Among all schools worldwide, the FT this year ranked the Johnson School #24. The FT survey uses 20 criteria in its ranking methodology. Although most of these criteria carry little weight individually, three of the criteria together count for 50 percent of the overall result:

• Alumni salaries (the weighted average of the last three years of salaries for the Classes of 1999, 2000 and 2001) count for 20 percent of the ranking. The Johnson School is 13th among U.S. schools on this criterion.
• Salary percentage increase—that is, the increase in salary from date of graduation to three years later—counts for 20 percent of the ranking. The score is based on a weighted average of responses from the classes of 1999, 2000, and 2001. On this score the Johnson School is 38th among U.S. schools—likely a strong factor in the final result.
• Faculty Research counts for 10 percent of the overall rank. This ranking is based on faculty publications in 40 top journals, and is adjusted for faculty size. We rank 16th among U.S. schools (#17 worldwide).

While media rankings are an imperfect measure of a school's value or performance, the Johnson School's long-term goal is consistent recognition as a top-10 business school. One way in which we can make further progress toward that goal is to encourage strong participation by our alumni in these business publication surveys. If you are invited to participate in a business publication survey, we encourage you to take the time to do so, as response rate can have a significant effect on the results.

As the Johnson School continues to build on our positioning and program enhancement/development outlined in our five-year plan, and as our alumni continue to enjoy significant post-graduation career success, we anticipate that our Financial Times ranking results will improve in the future. Details on the survey can be found at http://news.ft.com/home/us.

Panelists scrutinize Sarbanes-Oxley

On January 20, the Johnson School Club of New York, together with Ernst & Young LLP, presented a panel discussion entitled "Sarbanes-Oxley—Two Years Later" to an audience of between 150 and 200 Johnson School students and alumni, Cornell Law School alumni, and clients and friends of Ernst & Young LLP, which housed the event at its New York headquarters. The panelists were Dean Robert J. Swieringa, Stewart Schwab, dean of Cornell Law School, Abby Joseph Cohen, '73, managing director of Goldman Sachs, and Gary Kozlowski, '89, a partner of Ernst & Young financial Services. This event marked the successful launch of the Johnson School's new "Business Of…" forums. Future events will cover a range of current business issues and will take place in locations throughout the United States and abroad.

Sarbanes-Oxley was passed by Congress in 2002 in response to high-profile accounting scandals like those at Enron and WorldCom and represents the most sweeping reform in corporate governance legislation since the 1930s. The discussion covered several areas, including the high costs of compliance, the unintended consequences of the legislation and corporate ethics. Moderator Jim Horton from RMA Associates asked the panelists if the high cost of complying with Sarbanes-Oxley has been worth it.

"I would say it probably, on balance, has been worth it, particularly for large companies," responded Dean Swieringa, who noted that CEOs and CFOs have more confidence in the certifications they have to make because they know the internal control and documentation processes have been strengthened. Investor confidence has also been enhanced because investors know there is more scrutiny and report monitoring inside the corporation, which has boosted the value of firms, he said.

Meeker addresses Wall Street trekkers

Mary Meeker, MBA '86, shared her views on how to identify winning technology companies at a reception for Johnson School students at Morgan Stanley's midtown Manhattan headquarters in January. Meeker, who is a managing director, equity research at the blue-chip investment firm, also advised her audience on the ingredients for career success. Meeker's address was the keynote of this year's Week on Wall Street, the annual trek to New York by the school's finance students.

Among Meeker's checklist of 20 attributes of winning technology companies were having passionate, "manically-focused" founders and technology magnets, such as Jim Clark, who founded several transformational companies, including Silicon Graphics and Netscape Communications.

Along with an ability to lead change and embrace chaos, winning companies should also have a leading market position with first-mover advantage; weak competitors are a plus, the analyst noted. An annuity-like business with sustainable operating leverage, assisted by barriers to entry is also a good indicator of success, she said. In terms of the income statement, the company should enjoy high gross margins, be on a clear path toward improving operating margins and have a low-cost infrastructure and development effort. Acknowledging that many of the attributes on her checklist "sound cookie-cutter," Meeker pointed out "it is extraordinary how often they are not in place."

Meeker's advice to the students for developing their own careers included following one's passion and instincts and that failure is okay because you can learn from it. "Get as many experiences as early as you can," such as spending time abroad or in politics, law or manufacturing, she told the audience. At the same time, one should strive to be the best at something. "Be an expert first, a generalist later," she said. Honesty is a must, and if you don't know the answer to a question don't fake it, Meeker warned—or else your credibility will be lost. Nothing is more important to the soul of business than integrity, even if it means making tough calls, she said. "Only work at places where the good guys win," she counseled. "If that doesn't happen, leave."

Annual Predictions are cast on West Coast

In January, Dean Swieringa and Professor Stuart Hart were special guests at two well-attended West Coast alumni events. The 2005 Predictions Dinners, hosted by the Johnson Club of Southern California—the club's first—and the Johnson School Club of the Bay Area, welcomed Johnson School staff, students, and alumni. The dean and Professor Hart were able to update those at each event on news from the Johnson School.

According to Southern California club president Scott Taylor, MBA '90, "Over 50 Cornellians representing several schools came to the Peninsula Hotel in Beverly Hills to make their predictions about rainfall, the Dow and Best Picture Oscar." The dean gave an update on the school and brought down the house by playing the Alma Mater on the grand piano. Said Taylor, "He also confessed to playing the Hammond B-3 organ, and we're looking for a suitable venue for an extended concert including the Rhapsody in F(ASB)." Thanks to Dori Berlin, MBA '97, and Scott who organized the event.

The Johnson School Club of the Bay Area held its 11th annual dinner at San Francisco's Fairmont Hotel on January 12. Over 100 attended what is effectively the annual Bay Area reunion and to make predictions for 2005," said club president Sarah Brubacher, MBA '99. Thanks to Predictions Dinner founder Bill Rusitzky, MBA '90, who managed the predictions process, and to Sarah, who presided over the evening.

Fried Fellows announced

Dean Swieringa has announced recipients of the Johnson School's most prestigious award, the Fried Fellowships. This year's recipients, all from the class of 2005, are Paul Donato, Brendan Farley, Michael Lee, Nnamdi Njoku, and Amanda Soule. The Fried Fellowships were established in 1989 by a generous endowment gift by a distinguished Cornell alumnus, Albert Fried Jr., '52, MBA '53. The fellowships are awarded to five second-year students each year solely on the basis of leadership potential and academic achievement. The award includes a stipend and requires that the recipient work with a faculty member on a project of mutual academic or professional interest. Please join us in congratulating these outstanding students for their achievements.

Finance professor's paper is honored

Johnson School's assistant professor of finance Yaniv Grinstein has received the Best Paper in Corporate Finance Award, for the paper "Corporate Governance and Firm Value – The Impact of the 2002 Governance Rules" (jointly written with PhD student Vidhi Chhaochharia). The award, which includes a $1,000 prize, was given by the Southwestern Finance Association. Congratulations to Professor Grinstein!

EVC Symposium set for February 25

The Entrepreneurship and Venture Capital Club presents "Managing the Entrepreneurial Lifecycle," the fifth-annual Entrepreneurship and Venture Capital Symposium, held Friday, February 25, at Sage Hall. Panels include commercializing campus technology; corporate partnerships and venture capital; and exit strategies vs. operating strategies.

Don't miss this opportunity to learn from and network with entrepreneurs, industry professionals, venture capitalists, and private equity professionals. For further details and for registration, visit http://www.evcclub.com/ or contact Swati Kaura or Justin Grimm.

Save the date for Power Lunch series

March is Women's History Month and the Johnson School's Office for Women and Minorities in Business, with sponsorship from JP Morgan Chase, invites you to celebrate with us. On March 31 we will host a luncheon for alumni, students, faculty, and staff. The luncheon coincides with the spring meeting of the President's Council of Cornell Women (PCCW), 300 of Cornell's most prominent alumnae. Our topic is the representation of women on boards of directors. We hope to welcome you back to campus for this opportunity to meet the current generation of women MBA students, as well as some of your fellow alumnae! For more information, contact the Office for Women and Minorities in Business at 607 255-1437.

Thanks to survey participants

Many thanks to all who participated in the recent Web survey regarding managerial credit-taking and credit-sharing. The results are currently being examined and will be combined with another study that is being run this semester. We look forward to sharing the findings with you in the next few months. If you have any questions please e-mail Matt Rodgers .

Featured alumni

Recent Media Hits
Since early December of 2004, members the Johnson School community have been found in many different media outlets including the Financial Times, Marketplace on National Public Radio, The Toronto Sun, BusinessWeek and BusinessWeek online, the International Herald Tribune, Associated Press, Reuters, Hedgeworld, Barron's, The New York Times, The Economist, The Wall Street Journal and PBS Newshour. Dean Robert Swieringa and professors Robert Frank, Stuart Hart, John Nesheim, Maureen O'Hara and Yaniv Grinstein have all been cited as have student groups BR Ventures and the Cayuga MBA Fund. The Boardroom Executive MBA program and alumni Rich Eisinger, MBA '97, Michael Masnick, MBA '98, Grier Graham, MBA '98 and Dave Titus, MBA '04, all appeared in different media outlets.

For more Johnson School media hits, see Johnson School in the News.

SageConnection Events/other:

February 8
San Francisco
CEN Silicon Valley presents Art Gensler ARCH '57 in "Conversation with Mohsen Mostafvi", Dean of the College of Architecture, Art & Planning. Location: The Fairmont Hotel, 950 Mason St. Time: 6:00 to 8:30 p.m. Cost: $30 includes reception and presentation. RSVP at http://www.cen.cornell.edu/

February 10
Ithaca, NY
The Cornell Alumni Association of the Ithaca Area and the Johnson Club of the Fingerlakes present an exclusive presentation by notable Johnson School alumnus, John Alexander '74, MBA '76, founder and chairman, The CBORD Group, Inc. Location: Dyson Atrium, Sage Hall. Time: 5:30 to 7:00 p.m. RSVP: Natalie Whelan '03 at nmw22@cornell.edu or 607.254.7182.

February 16
Atlanta, GA
Cornell University Real Estate Council presents its Annual Atlanta Regional Luncheon featuring Mark Woodworth, executive vice president, PKF Consulting, speaking on "Hotel Trends & Investment Opportunities". Location: Villa Christina, 4000 Summitt Blvd. Time: 11:30 a.m. Cost: $40 (CREC dues members, $35). RSVP: recouncil@cornell.edu or Dorothy Vanderbilt at 607.255.8962.

February 24
West Palm Beach, FL
The Johnson Club of South Florida presents Jay Russo, the S.C. Johnson Family Professor of Management, in "The Confidence Game." Professor Russo will demonstrate how confidence, or over-confidence, in one's own judgment can affect the quality of managerial decision making. Location: Marriott West Palm Beach, 1001 Okeechobee Blvd., West Palm Beach. Time: 7:00 to 9:00 p.m. Cost: $15.00 (includes hors d'oeuvres and presentation). RSVP: Call 607.255.9437 or https://www.johnson.cornell.edu/alumni/events/registration/participant_frm.cfm

February 24
Seattle, WA
CEN Presents "Obesity in America: Understanding Weight Management from a Consumer Perspective" featuring Laurie Demeritt '92, president and COO, The Hartman Group. Cost: $20 Location: Voyager Capital, 719 2nd Ave, Ste 1400, thanks to Bill McAleer '73, MBA '75, managing director, Voyager Capital. RSVP (required for security purposes and no walk-ins will be accepted).

March 5
San Jose, CA
The Johnson School Club of the Bay Area presents its second annual community service event. Let's gather (bring the entire family!) and stock a food warehouse for Second Harvest! For organization information, see http://www.2ndharvest.net/ Location: Second Harvest Warehouse, 750 Curtner Ave. Time: 8:45 a.m. to 12:00 p.m. RSVP (so we know how many people will attend): alumni@johnson.cornell.edu

March 16
Atlanta, GA
CEN presents "Rebuilding a Global Brand" featuring Jack Ward, HOTEL '65, MBA '66, chairman and CEO, Russell Corporation. Location: Atlanta Buckhead Club. Time: 6:30 to 9:00 p.m. Cost: $30 (all inclusive). For more information and to RSVP: http://www.cen.cornell.edu/

March 19
Shanghai, China
Save the date! Details are being finalized for a visit from Dean Robert J. Swieringa, Johnson School, Hal Bierman Jr., the Nicholas H. Noyes Professor of Business Administration & Professor of Finance, and Dean Stewart Schwab, Cornell Law School.

March 21
Seoul, Korea
Save the date! Details are being finalized for a visit from Dean Robert J. Swieringa, Johnson School, Hal Bierman Jr., the Nicholas H. Noyes Professor of Business Administration & Professor of Finance, and Dean Stewart Schwab, Cornell Law School.

March 22
Boston, MA
Save the date! The Johnson Club of Boston presents its third annual spring breakfast presentation. Speaker(s) are being finalized, but hold the date! We'll be at the Langham Hotel again this year.

March 22
Ft. Lauderdale, FL
Save the date! The Johnson School Club of South Florida will presents "Into Thin Air: The Collapse of Enron" by Tom Dyckman, the Ann Whitney Olin Professor of Accounting at the Johnson School. We are currently still completing venue logistics. Look for more information to come soon!

March 23
Tokyo, Japan
The Johnson School Club of Japan, together with the Johnson School and the Cornell Law School present "Increasing Shareholder Value," a Financial Strategies Presentation by Harold Bierman Jr., the Nicholas H. Noyes Professor of Business Administration and Professor of Finance. Opening remarks will be given by Dean Robert J. Swieringa, and closing remarks will be given by Dean Stewart J. Schwab, Cornell Law School. Location: Hotel New Otani, the Mainoma Room, 4-1 Kioi-Cho, Chiyodaku, Tokyo, Japan. Time: 19:00 to 22:00 p.m. Cost: 9,000yen, payable at the door which includes presentation and post-presentation reception. RSVP to http://www.johnson.cornell.edu/alumni/events/. For questions, please contact Hiro Yamaguchi, MBA '94, or alumni@johnson.cornell.edu.

Johnson School specific events appear in red.