Haas NewsWire - June 11, 2007
IDEO's Tom Kelley Named First Haas School Executive Fellow
Tom Kelley, MBA 83, the general manager of the design firm IDEO, has been named the first-ever Haas School Executive Fellow.
The new position has been created for respected executives and thought leaders in a variety of fields. Executive Fellows will serve as advisors to the dean, faculty, and staff. Students also will gain exposure to these top thinkers and their trailblazing ideas as they participate in events and programs throughout the school year.
"This is an honor and I'll do my best to give meaning to the new role," says Kelley. "And although the dean has warned me that there may be other executive fellows in the future, I've lived in the Silicon Valley long enough to understand the concept of first-mover advantage."
The school plans to appoint a handful of Executive Fellows over the coming year. Kelley will focus on helping the Haas School further strengthen its Leading Through Innovation initiative. He brings with him two decades of experience helping to build IDEO, one of the world's most innovative design firms.
"We're thrilled to honor Tom Kelley as the first Haas School Executive Fellow," says Dean Tom Campbell. "His deep insights about innovation are certain to inspire students and faculty alike and advance Haas even farther as an innovator in business school education."
Together with his brother David, Kelley has managed Palo Alto-based IDEO as it has ballooned from 20 employees to more than 500. He also has written two influential books on innovation: The Art of Innovation (2001) and The Ten Faces of Innovation (2005).
Berkeley MBA Class of 2007 Salaries, Job Offers Up
Graduates of the Full-time Berkeley MBA class of 2007 have received more job offers and are earning higher base salaries than last year, based on preliminary statistics available from the Haas School's Career Center.
By graduation 87% of the class received or accepted employment offers, compared to 86% of last year's class at graduation. The median base salary for new Berkeley MBA graduates this year was slightly under $103,000, compared to $100,000 in 2006. Early data shows students are receiving a mean signing bonus slightly under $21,000.
Graduates joined 140 different organizations. More than half went into the technology and financial services industries, and 19% entered the consulting field. The top hiring firms this year are Google, Bain & Company, Deloitte Consulting LLP, Abbot Laboratories, Apple, Archstone Consulting, Autodesk, Bank of America, and McKinsey & Co. In addition, 16 graduates fulfilled their entrepreneurship dreams and are launching their own companies.
In the Evening & Weekend Berkeley MBA Class of 2007, 18% of the graduates accepted new jobs with 39 firms, including JP Morgan, Nokia, eBay Inc., and Oracle Corp. An additional 12 Evening & Weekend MBA students accepted internship positions with industry leaders such as Intel, Goldman Sachs, Dow Chemical Co., and Prudential Capital.
Students from the Full-time Berkeley MBA Class of 2008 also enjoyed a strong summer internship season with students joining 120 companies, including Amazon.com, Genentech Inc., Chevron Corp., SunPower Corp., Wells Fargo, and and Yahoo!
Overall on-campus recruiting rose 23% this year, and the number of students receiving multiple offers also increased. The Haas School ranks number one among recruiters from the technology sector in the United States, according to The Wall Street Journal recruiter survey. Last October, The Princeton Review named the Berkeley Full-time MBA Program the third best business school in the country for career prospects.
Two Berkeley MBA Alumni Awarded Kauffman Fellowships
Michael Madison, MBA 06, and James Vuong, MBA 06, were awarded fellowships by the Kauffman Fellows Program at the Center for Venture Education in Shawnee Mission, Kansas, this May. They are the first Berkeley MBA students to be honored with Kauffman Fellowships.
The two-year fellowship, which is awarded to 36 individuals worldwide, features a structured educational curriculum with an individual development plan, development coaching, facilitated mentoring, peer learning, and networking.
As part of training, Madison joins Halo Fund and The Angel's Forum, a group of private equity investors. Before receiving his fellowship, Madison worked at Tellme Networks. He also founded Noble Science, Inc., a virtual surgery company.
Vuong joins IDG Venture Vietnam, the first technology venture capital fund in Vietnam. Prior to earning his Berkeley MBA, Vuong managed a product line at Formfactor, a MEMS-based semiconductor equipment company, and founded two consumer Internet businesses.
Both Vuong and Madison participated in activities and coursework offered through the Haas School's Lester Center for Entrepreneurship & Innovation, including the "Venture Capital & Private Equity" course taught by Lester Center Executive Director Jerome Engel; Lecturer Sean Foote, partner with Labrador Ventures; and Lecturer Terry Opdendyk, founding partner of Onset Ventures.
Ninety fellows have graduated since the inception of the Kauffman Fellows Program. During the first ten years of the program, Kauffman Fellows led investments of more than $3.6 billion in 417 companies, sparking $10.8 billion in annual revenues and the creation of 42,000 jobs.
Berkeley MBA Students Return from Overseas Business Development Projects
Berkeley MBA students have returned from overseas, where they helped create, among others, an information technology strategy for the Macedonian government and helped Nokia develop commercialization strategies for new technologies as part of the Haas School's International Business Development (IBD) course.
From May 19 to June 9, 72 first-year MBA students consulted in 13 countries on five continents. Students began the projects during the academic year when they were divided into eighteen teams of four, assigned clients seeking to resolve real-world challenges, and tasked to work together to develop solutions before going abroad to complete the on-site segments of their work.
Three teams traveled to Ghana, for example, to expand and evaluate the Ghana Feeding School Program, a school lunch effort focused on boosting agricultural economies and enticing children to attend school by providing nutritious meals made from locally grown foods. Elsewhere in this African nation, another team surveyed job recruiters, graduates, and parents to devise a branding strategy for Ashesi University, which was founded by Haas alumni Patrick Awuah and Nina Marini, both MBA 99.
Students also worked with the Wildlife Conservation Society in Zambia, Tanzania, Belize, Nicaragua, Brazil, and El Salvador on rural development projects aimed at creating sustainable industries and eliminating poaching of endangered species.
MBA students helped develop sustainable business strategies for wildlife reserves in Belize and Brazil's Amazon, defined a certification process for eco-tourism and establishments such as hotels in El Salvador, identified alternative industries for sea turtle hunters in Nicaragua, and assisted the College of African Wildlife Management in Tanzania with improving its programs.
The IBD program is operated by the Clausen Center for International Business and Policy and has assigned teams of MBA consultants to projects for 17 years. Haas School Adjunct Professor Sebastian Teunissen is executive director of the Clausen Center. For more information, visit http://www.haas.berkeley.edu/HaasGlobal/IBDindex.htm.
Berkeley-Columbia Executive MBA Program Welcomes its Sixth Class
Sixty-six professionals that comprise the sixth class of the Berkeley-Columbia Executive MBA Program have begun their studies at the Haas School, starting with an orientation on May 22.
The class members bring with them a wealth of expertise from companies that range from Google to Goldman Sachs. Accenture, Cisco Systems, Hewlett-Packard, IBM, KLA-Tencor, Microsoft, Nitinol Devices and Components (a Johnson & Johnson company), Oracle, Pacific Gas & Electric, and Synopsys all have two students in the program.
Students in the class possess an average of 13 years of work experience. Twenty percent work in high technology, 12% work in consulting, 11% work in biotechnology and pharmaceuticals, 9% each work in finance and in computer-related services, 6% each work in telecommunications, retail, and in education/government/nonprofit, and 5% each work in real estate and consumer products. The program welcomed a manager of the bands Xzibit and Blackalicious, a southern California clothing designer, and a director from the famed Powell's Books in Portland, Oregon.
The students range in age from 29 to 55, with a median age of 36. Among the group of 49 men and 17 women, 32% already hold advanced degrees. More students (11%) are traveling from Southern California for their studies than in previous years. They are among the 23% coming from outside the Bay Area, with students joining the program this year from Colorado, Oregon, Texas, Utah, and Washington.
For the second year in a row, the new class will have a joint block of study with the current Berkeley-Columbia class, allowing both classes additional networking opportunities.
For more information on the program, visit http://www.berkeley.columbia.edu/.
Prof. Nancy Wallace Warns of Risk in Real Estate Securities
Having successfully predicted the importance of house price movements on mortgage default and prepayment, Haas School Professor Nancy Wallace now predicts that limitations with risk-management methods in the securitized commercial mortgage market may lead to turmoil in that corner of real estate.
"This is a wake-up call," Wallace says of the subprime mortgage collapse. "Banks became overly sanguine about the risks of these mortgages based on short-term performance measures without appropriate controls for the longer-run cycles and price volatility of real estate markets."
Wallace, the chair of the Real Estate Group, has spent 18 years studying real estate price dynamics. In the past 12 years, she has expanded her research into options markets, particularly mortgage- and asset-backed securities. She has recently found that Wall Street banks and bond-rating agencies underestimate the risk of many of these new securities.
In her latest research paper, Wallace examined the $478 billion commercial mortgage-backed security market, which has grown an average 18% per year since 1997. Mortgage-backed securities are bond-like assets that are created by bundling residential or commercial loans and selling them on the secondary market.
Working with Haas Associate Professor Richard Stanton and Rice University Assistant Professor Christopher Downing, Wallace developed a new way to calculate the implied volatility of the return on properties underlying commercial mortgage-backed securities. The trio was the first to provide an empirical test of such a model, using a sample of 14,000 properties in 206 deals between 1996 and 2005. They found that the return volatilities by property types are substantially larger than those calculated by either rating agencies or investment banks.
Wallace believes the models used by banks, Wall Street, and bond-rating agencies to estimate default risk and to price mortgage-backed bonds rely too heavily on aggregate indexes based on short-term performance without accounting for long-run real estate cycles.
"The banks and rating agencies have been lulled into a sense of complacency about how volatile real estate returns are," she says.
To read more about Wallace's research, visit http://www.haas.berkeley.edu/news/faculty/Wallace.html.
Haaski Open Raises over $100,000
This spring's fifth annual Haaski Open golf tournament on May 14 at the Claremont Country Club in Oakland brought in over $100,000 in support of the Haas School Annual Fund.
More than 115 members of the Haas community played golf and participated in various contests, raffles, and auctions throughout the day. Ed Arnold, BS 40, received the Haaski Leadership Award for his longstanding support of the Haaski Committee.
Tournament winners in the first flight, from the Reed Smith, LLP Foursome, were John Siamas, Don Rubenstein, Mike Anderson, and Ken Philpot. In the second flight the Leibowitz Foursome, David Leibowitz, Matt Leibowitz, Rich Barrett, Jason Jones, and Kit Tuveson finished first.
The event's corporate sponsors included PricewaterhouseCoopers, Reed Smith, Tatum, LLC, McKinsey, Morgan Stanley, Greyrock Capital Group, and Merador Investments.
Faculty Members Receive Cheit Awards for Excellence in Teaching
In addition to the faculty members who received Cheit Awards for Excellence in Teaching at the Dean's End of the Year Party on May 4, two awards were announced for faculty at their respective degree program commencement ceremony.
Jennifer Chatman, the Paul J. Cortese Distinguished Professor of Management, received the award for her teaching in the Berkeley-Columbia Executive MBA Program.
Francis Longstaff, a UC Los Angeles professor who teaches in the Master's in Financial Engineering Program won the award for that program.
At the End of the Year Party, Assistant Professor Johan Walden received a Cheit award for his teaching in the evening cohort of the Evening & Weekend Program. Suneel Udpa, a lecturer, received the award for the weekend cohort of the same program.
Lester Center Honors Four Berkeley MBA Students with Entrepreneurship Awards
The Lester Center for Entrepreneurship & Innovation honored four Berkeley MBA students this spring with fellowships and awards that support entrepreneurial aspirations and leadership.
Tony Mak and Danae Ringelmann, both MBA 07 and students in the Full-time MBA Program, were each awarded $5,000 fellowships from the Price Institute for Entrepreneurial Studies. The Institute was founded in 1979 by Harold Price, a leader in the foods industry who later became a consultant to Consolidated Foods and Sara Lee.
Michael Black, MBA 08, a student in the Evening & Weekend Program, received a $5,000 Turner Fellowship. The fellowship is sponsored by Dan Turner, founder of Montreux Equity Partners and chairman of TransOral Pharmaceuticals.
Lawrence Chang, MBA 07, a Full-time MBA student, is the winner of this year's Appel Award. Chang was honored for his work in building the Entrepreneurs Association and for his leadership in establishing the Paul Rogers Memorial Fund and Scholarship in honor of the late Haas entrepreneurship lecturer by the same name. The $5,000 Appel award is funded by an endowment from the Louis and Harold Price Foundation in honor of Gloria W. Appel, the late president of the Price Institute for Entrepreneurial Studies and a great benefactor of the Lester Center.
Discounted Bears Season Tickets Available to Faculty and Staff
Discounted Cal Bears season tickets are now available to Haas School faculty and staff for $266, a savings of $54 off the $320 full price. The discounted tickets are for reserve seats.
There is a limit of two tickets per person. A CalNet ID is required to be eligible to purchase. To order, visit http://calbears.com.
Haas in the News
Pete Johnson, director of admissions for the Full-Time MBA Program, was quoted in a June 5 Wall Street Journal article titled "Playing on a Bad Basketball Team May Be the Ticket to an M.B.A." about the importance of various admissions criteria. For the full article: http://online.wsj.com/article/SB118100134038124370.html
Abby Scott, director of MBA Career Services, was quoted in a June 3 Financial Times article titled "Corporate recruiters go back to school" about increased recruiting efforts at business schools. For the full article: http://www.ft.com/cms/s/003a2dec-105e-11dc-96d3-000b5df10621%2Cs01%3D1.html
Jack Fuchs, a lecturer in entrepreneurship, was quoted in a June 3 Wall Street Journal article titled "Starting a Business? Don't Do This" on common pitfalls of entrepreneurs. For the full article: http://startup.wsj.com/runbusiness/failure/20070605-coombes.html
Severin Borenstein, the E.T. Grether Professor of Business Administration and Public Policy, was quoted in several news outlets regarding the price of gasoline:
+ June 3 Sacramento Bee article titled "Governor ignores gas price climb, critics say." For the full article: http://www.sacbee.com/111/story/203801.html
+ May 31 Sacramento Bee article titled "Foreign refineries will supply more U.S. gas." For the full article: http://www.sacbee.com/103/story/200013.html
+ May 18 Marketplace Money segment titled "Summer gas pains: Who to blame?" For the full story: http://marketplacemoney.publicradio.org/display/web/2007/05/18/gas_prices/
+ May 16 Oakland Tribune article titled "Gas prices, anger rising." For the full article: http://findarticles.com/p/articles/mi_qn4176/is_20070516/ai_n19114687
Andrew Isaacs, adjunct professor and Executive Director of the Management of Technology Program, was quoted in the June issue of Business 2.0 in an article titled "Product Design, Nature's Way" about innovations aimed at mimicking Mother Nature.
Laura Tyson, Professor in the Business and Public Policy Group, was mentioned in a May 30 Financial Times article titled "Laura Tyson joins BPO group." For the full article: http://www.ft.com/cms/s/7b40e5d6-0dc9-11dc-8219-000b5df10621,dwp_uuid=4dce8136-4a24-11da-b8b1-0000779e2340.html
Priya Raghubir, Associate Professor in the Marketing Group, was quoted in a May 25 San Francisco Chronicle article titled "Tasting fee tyranny" about one winery's on-premise consumption fee. For the full article: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/05/25/WIG9OQ0ETO1.DTL
Catherine Wolfram, associate professor in the Economic Analysis and Policy Group, was quoted in a May 24 Oakland Tribune article titled "Gas prices outpacing crude prices." For the full article: http://www.insidebayarea.com/ci_5975032?source=rss
Raghubir was also quoted on a May 23 NPR segment titled "Barber Goes Beyond a Shave and a Cut" about a new upscale barbershop that is also a hip downtown bar. For the full story: http://www.npr.org/templates/story/story.php?storyId=10347850
Revolution Foods, a company started by Kristen Groos Richmond and Kirsten Tobey, both MBA 06, was featured in a May 22 Oakland Tribune article titled "Bay Area firm serves students healthy fare." For the full article: http://www.insidebayarea.com/business/ci_5957408
The BUILD Youth Business Plan Competition, which took place at the Haas School, was mentioned in a May 19 Oakland Tribune article titled "Oakland teens majoring in business world savvy." For the full article: http://www.insidebayarea.com/oaklandtribune/ci_5936477
Johnson was quoted on CBS' The Early Show on May 18 regarding the full-time program's application verification and background check procedures.
Carl Shapiro, the Transamerica Professor of Business Strategy, was mentioned in an April 18 Washington Post article titled "For Consumers, the Raw Deal" about a paper he wrote with Jonathan Baker of American University on antitrust enforcement. For the full article: http://www.washingtonpost.com/wp-dyn/content/article/2007/04/17/AR2007041701820.html
Happening at Haas
BAY AREA ALUMNI - State of the Valley VC Panel Discussion
June 26, 2007
6:30 p.m. - 9:30 p.m.
Palo Alto Sheraton
625 El Camino Real
Bay Area alumni are invited to a venture capital panelist discussion regarding titled "State of the Valley: Trends for Venture Capital and the Next Tech for Silicon Valley." The panelists include Ken Elefant, Opus Capital; Brent Ahrens, Canaan Partners; and Marianne Wu, Mohr Davidow Ventures. Angelos Kottas, of Woodside Fund, will moderate. For more information, contact Adint at firstname.lastname@example.org. To register, visit http://www.acteva.com/go/SBHaas.
SOUTH BAY ALUMNI - Welcome Party
July 28, 2007
12:00 p.m. - 3:00 p.m.
Haas alumni, new graduates, current students, and newly admitted students are all invited to this unique event. To RSVP, contact David Hansen at email@example.com.
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