Georgetown

Business SPRING / SUMMER 1999

t h e r ob e rt e m m e t t mc d on o u g h s c ho ol of b u s i n e s s
volume 11 number ii

Fueling an Entrepreneurs Dream

The Future of Online Privacy
Managing Knowledge
Georgetown Business is
published during the academic
year by The McDonough School
of Business for alumni, parents,
friends, and business colleagues
Dean
Christopher P. Puto, Ph.D.
Senior Associate Dean
William Droms, Ph.D.
Editor
Elisabeth Liptak g98
Associate Editor
Elizabeth Shine g99
Contributing Writers
Bindu Vaswani b00
Cheryl Arndt mba99
Leigh Jackman mba00
Nan Wang mba00
Designer
Nancy Van Meter
Photographers
Evan Shephard
Keith Tishken

Inquiries and updates should

be sent to:
Georgetown Business
deans office
georgetown university
the mcdonough school
of business
old north building
washington dc 20057

phone: 202-687-4080
Georgetown Business
welcomes opinions and comments
expressed by its readers. Letters
should be addressed to:

the editor
Georgetown Business
deans office
georgetown university
the mcdonough school
of business
washington dc 20057
 LETTER FROM THE DEAN

WELCOME
A
s the school year and my first year as dean draws to a close, I want to take

this opportunity to give you a progress report on initiatives taking place

throughout the McDonough School of Business.

The past year has been a whirlwind of activity, beginning with the announcement of Bob

McDonoughs unprecedented gift to the school. It has been gratifying to travel around the

country and meet alumni, parents, and friends who have generously made a commitment

to the future of this business school. And that future looks quite bright.

In the fall, we implemented a vastly new MBA curriculum that has received high marks

from students and recruiters. Modules of varying lengths have replaced traditional

semester-length courses and are timed to provide the academic support required for sum-

mer internships. The modules were interspersed with two weeklong integrative courses

focusing on the energy and global telecommunications industries. Next year, a required

international experience will be implemented, providing us with a real advantage over

other MBA programs.

A task force has been meeting throughout the spring to assess the quality of the under-

graduate experience, both academic and co-curricular. We have recently completed a cur-

riculum comparison with 10 undergraduate business programs. Current undergraduate

students participated in focus groups this spring; alumni and employers will be contacted

in the summer. The aim is to ensure that our undergraduate program is considered among

the very best in the country.

The growth of our MBA program in recent years has pushed our facilities to their limit.

I am pleased to report that renovation has started on the second floor of the Car Barn,

which will be known as the Graduate Business Center (see p.6). When students arrive on

CONTENTS campus in the fall, a state-of-the-art facility will await them. We are excited to be able to

offer students a modern facility as an interim step before our new building is complete.

Inside Information . . . . . . . . . . . . . 2
On a final note, our MBA program ranked 26th in the latest US News & World Report rank-

A Program on the Move. . . . . . . . . 6 ing. We are up from our 30th place ranking last year and showed improvement in two par-

ticular components the survey of corporate recruiters and deans of business schools.
Fueling an Entrepreneurs Dream 8
I expect that future rankings will positively reflect the continuous improvements we are

Securing the Future of undertaking throughout the School.

Online Privacy . . . . . . . . . . . . . . . . 15
Christopher P. Puto
Faculty Forum: Dean
Managing Knowledge . . . . . . . . . 16

Faculty and Staff News . . . . . . . . 19

Alumni Notes . . . . . . . . . . . . . . . . . 23

Spring / Summer 1999 1


Leader of the Pack
PricewaterhouseCoopers
(PWC) remains the prima-
ry corporate recruiter of
McDonough MBAs this
year, with 17 hires from
the Class of 1999, and
eight internship offers
to the Class of 2000.
PWC received the
Employer of the Year
award in 1997 and 1998,
and has recruited MBA
students on campus
since 1983.
PWC sponsored this
years Graduate Women
In Business conference
and the Consulting Clubs
annual case competition.
PWC also supports
research at our Capital
Markets Research Center.
Dean Christopher Puto
(far right) with Jim Lafond
and Raymond Ranelli of
PricewaterhouseCoopers.
2 The McDonough School of Business
Inside Information
1999 MBA Career Trends
T he MBA Class of 1999 is reaping the benefits
of a strong economy, with a 22 percent increase in
the number of students reporting accepted offers at
graduation. The Class of 1999 had a median start-
ing salary of $75,000, an increase of $5,000 from
last year.
Consulting and finance continues to attract the
majority of students. PricewaterhouseCoopers, McDonough Hosts National
American Management Systems, Arthur Andersen GWIB Conference
and KPMG are among the top consulting firms
F
recruiting McDonough MBAs, while Citibank,
Chase Manhattan, Merrill Lynch, and CS First
ive hundred students from over 30 MBA
Boston are among the top finance firms.
programs across the country traveled to Washington
McDonough MBAs are enjoying tremendous
on February 6 for the 1999 Graduate Women in
success in the marketplace, says Jackie Wilbur,
Business (GWIB) National Conference.
director of MBA career management. The fact that
Dr. Mary Mattis, vice president of research and
we have firms like PricewaterhouseCoopers (PWC)
advisory services for Catalyst, a leading research firm
recruiting multiple graduates reflects the maturity of
on womens leadership development in business and
the McDonough MBA in the marketplace. In
professional organizations, gave the keynote speech.
addition to the 17 MBAs hired by PWC, six stu-
She spoke about the inequities that still exist for
dents were hired at each of the following compa-
executive women at Fortune 500 companies.
nies: Citibank, Intel and Enron.
Overall, panelists sought to explode myths of
The technology sector continues to hold appeal
gender disparities in the workplace, emphasizing
among MBA graduates. In addition to Intel, corpo-
that both men and women need to be flexible in
rations including IBM, MCI and Oracle recruited
dealing with perceived gender differences, whether
from the class of 99. Ten students will join the
real or imagined. One piece of advice preached by all
entrepreneurial ranks, mostly in technology-related
panelists was applicable to members of both sexes:
businesses.
find a career about which youre passionate.
The conference exceeded all of our expec-
tations, not only in terms of attendance but in the
quality of the discussion that took place, said confer-
ence director Mary Ryan (M99), who along with co-
director Stephanie Paul (M00) and GWIB president
Betsy Eisenberg (M99), organized the conference.
Speakers and participants alike were energized by
the high level of interaction and learning that
occurred. It was extraordinary to have such a diverse
array of professionals gathered in one location.
Tuning In To The Global Telecom Industry

F irst-year MBAs were wired about the

opportunity to focus on the global telecommunica-
Global Commuting

Cultivating a global per-

tions industry during the final integrative course
spective is natural when
of the year.
Students were divided into teams representing you commute halfway

companies in the telecom industry, including MCI across the world for class.

Worldcom, AT&T, Nippon Telephone & Telegraph, Mounir Ayntrazi, owner

Deutsche Telekom, and Sprint. The teams were Gates Offers Future Vision of Business of Pumpkin Candies, has
asked to identify strategic partners through alliances,

I
been traveling from
joint ventures or mergers, and then negotiate a deal.
Lebanon to the U.S. two
Results of the negotiation efforts were presented to a
f the 1980s were about quality and the 1990s weekends a month since
team of judges, including MCI Worldcom corporate
about re-engineering, then the 2000s will be about February to earn a certifi-
executives and McDonough faculty, on the last day
velocity, Microsoft founder Bill Gates said while
of the week-long course. cate in international busi-
promoting his book, Business @ the Speed of Thought,
The regulatory, business and technical climate ness offered by
during a March 25 address to McDonough students.
of the telecom industry allowed students to experi- McDonoughs Executive
Business is going to change more in the next 10
ence business decision-making in a market charac- Programs.
years than it has in the last 50, Gates told the Gas-
terized by immense change, says Professor John
ton Hall audience. Wearing a McDonough sweat- I wanted to study
Mayo, who designed and led the course. The team
shirt, Gates shared the stage with big screen moni- business at Georgetown
exercise gave students practical experience with real-
tors showing his talking points. The audience reacted because of its great brand
world data, and provided an ideal platform for stu-
favorably to a three-minute video presentation that
dents to integrate analytical skills in accounting, name, but I didnt want
featured Gates in a takeoff on Saturday Night Lives
marketing, finance and strategy. to be tied down by
Night at the Roxbury skit, Jay Leno doing man-
Scott Schein (MBA00) liked the practical focus earning an MBA, says
on-the street interviews, and a cameo by George
of the course. You can have the greatest plan in Ayntrazi. The certificate
Lucas.
the world for a venture, but if you cant sell the idea
Gates suggested that he was a little nervous is a great gateway into
and understand the potential partners needs, the
speaking to college students because he said, Im a U.S. business.
deal is dead, says Schein. This can get lost in all
dropout. Gates left Harvard during his junior year Ayntrazi graduates in
the theories, but it was a main point in negotiating
to found Microsoft. He is now the wealthiest man in
partnerships during the course. June. He wont miss the
the world. He said, however, that we dont hire
commute.
many dropouts at Microsoft.

Spring / Summer 1999 3


Measuring Up
The McDonough School
of Business ranked 26th
in the latest U.S. News
& World Report survey
of graduate business
schools, up from its 30th
place showing last year.
The school improved
substantially in its repu-
tation among corporate
recruiters.
The Financial Times
entered the rankings
business for the first
time, rating MBA pro-
grams on a worldwide
basis. The London-based
newspaper put the
Georgetown MBA
program as 34th in
the world.
Forbes magazine
may jump on the
rankings bandwagon
later this year.
4 The McDonough School of Business
A CEOs Primer
Y
ouve just been named president of a small to
mid-sized industrial firm and want to immerse
yourself in must reading for CEOs. Who better to
consult than your former b-school professors? An
undergraduate alumnus who found himself in this
very situation polled his mentors and received the
following advice.
Not surprisingly, three Harvard Business Review
articles made the list. The ground-breaking article
on strategy, The Core Competence of the Corporation
(HBR May/June 1990) by Gary Hamel and C.K.
Prahalad was cited along with Strategy and the New
Economics of Information by Evans and Wurster
(HBR, September/October 1997), a look at the
strategic use of information in an increasingly
information-based economy.
What Makes a Leader? by Daniel Goleman, was
noted for its discussion of emotional intelligence
(HBR, November/December 1998).
The concept of knowledge management
appears in two recommended management classics:
The Fifth Discipline: The Art and Practice of the
Learning Organization by Peter Senge (Doubleday,
1990) and Intellectual Capital: The New Wealth of
Organizations by Thomas Stewart (Doubleday,
1997).
Robert Buzzell, a visiting professor from Har-
vard, considers Peter Druckers tome, Management, a
book all CEOs must have and consult occasionally.
However, he adds, no one can sit down and read
it front to back.
For those CEOs wishing to sharpen their nego-
tiation skills, Getting to Yes by Fisher, Ury and Patton
(Houghton Mifflin 1991) comes highly recom-
mended.
The most interesting recommendation? Ayn
Rands Atlas Shrugged, called a philosophical must
read for any manager.
Trust, but Verify
A
s President Reagan discovered during
arms control negotiations with the Russians during
the Cold War, a little bit of ambivalence in inter-
personal relationships is a good thing. And perhaps
more common than previously thought. According
to research conducted by Professors Robert Bies
and Daniel McAllister, human beings both trust and
distrust one another at the same time, whether in the
workplace, personal relationships, or foreign policy.
Bies and McAllister, along with Professor Roy
Lewicki of Ohio State University (a former visiting
Connelly Center scholar), propose a new theoretical
framework that takes into account the inherent
tensions and multidimensionality of relationships.
Their work was published in Trust and Distrust
in the Workplace: New Relationships and Realities,
in the July 1998 issue of Academy of Management
Review.
To assume that individuals either trust or dis-
trust one another is a false dichotomy. People seg-
ment their relationships all the time, trusting in one
area, but not in another, says Professor Robert Bies.
How much trust people have depends upon the
issues and the stakes involved. In joint ventures and
alliances, business competitors must decide how
much information to disclose to each other. When
Boeing entered into an agreement with Japanese
engineers to produce its 777 airplane, corporate espi-
onage and the loss of technical and proprietary
knowledge concerned them. Borrowing from the
militarys need to know dictum, Boeing limited the
access of the Japanese engineers to secure areas
within the company.
Driven by the uncertainty of corporate reorga-
nization and competition from a global marketplace,
distrust and ambivalence may be on the rise. Bies
and McAllister believe that it has always been there,
but past research has focused on the positive aspects
of organizational behavior. The good news is that
individuals can balance trust and ambivalence in the
workplace.

Checking the Nations Economic Pulse
H
ow healthy are the finances of U.S. house-
holds? The Credit Research Center (CRC) is pro-
viding a diagnosis.
Using anonymous credit data, CRC is analyz-
ing consumers credit use and debt burdens to pro-
vide geographic profiles of the nations fiscal habits
that can be used to predict economic performance
and consumer credit patterns.
Credit bureaus are sitting on a goldmine of
consumer information, says Michael Staten, CRC
director. Were tapping this information to provide
a snapshot of the whole economy.
In partnership with Trans Union, a leading
credit information company, CRC is publishing
their research results in Monthly Statements: A Profile
of Consumer Borrowing and Payment Behavior. Trans
Union also provides credit data from their national
database that CRC analyzes.
Trans Union began compiling their national
credit database in 1992, the beginning of the current
economic expansion. Once we go through a down-
turn, well be able to provide a snapshot of economic
behavior under a range of conditions, says Staten.
Because credit use has never been analyzed
geographically before, Staten believes there will be
a strong demand for CRCs analysis, especially from
the risk management industry and marketers. He
also foresees using this data to develop hypotheses
about other economic trends, such as analyzing
consumer spending to gauge average income in a
particular region. State governments could use this
analysis to predict potential tax income. Theres
enormous potential to mine this rich data, says
Staten.
How Do Firms Know What They Know?
I f the 1980s was about squeezing productivity out
of the assets of firms, the 1990s has increasingly
Slamdunking
the Hoyas
focused on knowledge as the underutilized asset of
The McDonough invest-
the firm. With the shift to an information-based
ment team (Class of 99
economy, management strategists such as
members Melissa Lucas,
McDonough Professor Robert Grant have been
studying the role of knowledge in the production of Courtney Droms, Chris
a firms goods and services. Grant is currently look- Kenny, Jude Gorman
ing at the organizational capabilities within the and Mike Salemi) took
semiconductor and oil industries to see how firms third place in the Tucker
organize to exploit knowledge within their firms.
Anthony Big East Stock
While much of the research literature to date
Challenge.
has focused on how firms learn, Grants research
The team scored big with
focuses on capturing the know-how that already
Amazon.com and Yahoo
exists within firms. Articulating firm knowledge is
often the key challenge, as well as knowing what stocks, and was leading
knowledge is important, he says. He cites the dilem- the pack during the
ma faced by companies that try to integrate special- eighth week of the Chal-
ists knowledge in a way that benefits the firm.
lenge. They finished the
Many companies bring engineers and marketers
contest with 53.44% of
together to learn what the other does. This may not
total return. First place
be an efficient way to exploit knowledge because it
went to the University
can undermine the benefits of specialization.
Grant distinguishes between explicit knowledge of Pittsburgh.
something that can be put into data form, such as The McDonough team
a treasury management system and tacit knowl- won $7,500, which will
edge something that cannot be easily quantified or
support athletic schol-
extracted. Tacit knowledge includes information
arships. They also beat
such as that which sales personnel gather intuitively
the other Hoyas,
and on an informal basis. This hard-to-measure
who placed 10th in
information may be more important to firms,
according to Grant. the Big East.
His article, Toward a Knowledge-Based Theo-
ry of the Firm, appeared in a special issue on
knowledge management in the Winter 1996 edition
of the Strategic Management Journal, which he co-
edited with J. C. Spender.
Spring / Summer 1999 5
 The McDonough MBA:

W ith its turreted red brick,

heavy glass and brass doors, and green
marble tile foyer, the entrance to the Car
Barn on Prospect Street doesnt immedi-
ately call to mind academia. Despite its
historic past, its entrance more closely
resembles that of a corporation.
But in the fall, the majority of men
and women streaming through the Car
Barns doors wont be reporting for work.
At least not in the corporate sense. Theyll
come to the Car Barn to learn the lan-
guage of business, to earn their MBAs. On
September 1, the McDonough MBA pro-
gram including classrooms, program and
administrative offices, and student facilities
will open for business in the new Gradu-
ate Center on the Car Barns second floor.
Designed by RTKL, a leading Wash-
ington, D.C. architectural firm, emphasis
was placed on creating a professional envi-
ronment with the technological capabilities
to equal or exceed those of any leading
MBA program. The Graduate Center is an
interim facility until construction can begin
on the new business school building.
Within its 32,000 square feet area,
it has four case-style classrooms, each with
tiered seating for 65, Ethernet connections
at every seat, and dual overhead digital
projectors. A computer lab accommodates
50 students, and the eight new student
breakout rooms will also be equipped
with networked computers. The student
lounge is configured with 100 Ethernet
ports to connect laptop computers to the
McDonough network. The Career Center
features video conferencing capabilities for

Entrance to the new Graduate Center on Prospect Street.

6 The McDonough School of Business

A Program On The Move
long-distance interviews, as well as a pro-
fessional environment for on-campus
recruiting.
Coming on the heels of Bob McDon-
oughs $30 million endowment gift to the
business school, the Graduate Center sym-
bolizes the forward thrust of the program.
Last July, Christopher Puto became dean
of McDonough after an extensive interna-
tional search, bringing a decade of corpo-
rate executive experience as well as aca-
demic experience at Duke University, the
University of Michigan and the University
of Arizona. In the fall of 1998, McDon-
ough instituted its new integrated MBA
curriculum.
Puto feels the synergy that comes
from having the MBA program housed as
Construction in progress on the Graduate Center.
a unit in one building is vital. The Gradu-
ate Center will substantially strengthen the
MBA students strong sense of communi- Associate dean for graduate programs Tobin Richardson (MBA00), presi-
ty, and will have a positive effect on their Lamar Reinsch believes that the new dent of the MBA student government,
education, says Puto. Its a tremendous MBA curriculum has also placed greater believes the interim facility marks the pro-
boost to our continued, upward movement demands for new technology and space. grams progress towards the top tier of
as a program. This isnt a luxury, its a necessity, says global business education. The Graduate
Reinsch. Center marks another milestone in reach-
Understanding the connection ing that goal, says Richardson.
between space and growth, and recogniz- Plans for a new, permanent business
Donors to the Graduate Center ing that a rising MBA program raises all facility are also gaining momentum.
Thomas Bindley B65 areas within the school, twelve undergrad- Fundraising for the new facility is at
Jerome Claeys B65
uate business school alumni provided the approximately $19 million, almost halfway
majority of the $4 million to make the towards the $40 million dollar goal. The
William Divane B64
Graduate Center a reality. MBA candi- new facility will house all McDonough
John J. Fauth B67
dates are the ultimate value-driven con- programs-undergraduate, graduate and
Robert Flynn B65
sumers, notes Mark Frantz (B69), a executive programs-under one roof. Puto
Mark Frantz B69 Graduate Center donor. McDonough anticipates architectural design parameters
Paul Kelly B70 must provide state-of-the-art facilities to to be established in the next 18 months.
Gerry Kenny B71 maintain its recent momentum in the Which will provide more momentum
Allen Merritt B62
competitive marketplace. for a program thats already on the move.
Charles Trunz B75 Elizabeth Shine
Anonymous

Spring / Summer 1999 7

Fueling an Entrepreneurs Dream
If
at first you
dont succeed...
you just may
have what it
takes to be an
entrepreneur.
Spring / Summer 1999 9
 N otwithstanding
the spectacular success stories of a Bill
Gates or Steve Jobs, most entrepreneurs
experience setbacks and some outright
failures along the way. But they all pos-
knowing a business inside and out, says
Romanelli. I dont think business schools
can instill a personality trait, but we can
teach students how to start a business.
A donation in 1994 from Jan and
A student-run club, the Georgetown
Entrepreneurs Association (GEA), supple-
ments the classroom experience through a
monthly luncheon series and a twice-yearly
forum, Entrepreneurial Edge, that gives
sess one trait in abundance persistence. Tom Phillips of Phillips Publishing Com- early-stage entrepreneurs an opportunity to
For five members of the MBA class pany, and Tom McGeary, founder of practice their pitches and receive feedback.
of 1998, persistence seems to be paying MagTek, turned the goal into a reality. Typically half of the attendees come from
off at last. Their gift established the Global outside the university.
A second-year elective course in Entrepreneurship Studies Program, which Kit Cooper (MBA 99), president of
entrepreneurship required them to con- Romanelli directs. In addition to teaching GEA, presented his and classmate Alberto
ceive a new business venture and write a students the art of entrepreneurship from Fernandez company idea a Mexican-
business plan. The result is two technolo- practitioners in the field (see sidebar), the based call center servicing the US Hispan-
gy-driven entrepreneurial ventures. Pangea program links students to the local ic market at the April forum. The pan-
Limited, an alternative fiber optic network entrepreneurial community through field elists we assemble have read and know the
provider in northern Europe was hatched work and networking opportunities. An business plan in advance, so it is a great
by MBA classmates Matt Carlson, added bonus for Georgetown students is opportunity to learn from others and not
Stephanie Adams, and Christian Jepsen, location Washingtons technology corri- be defensive, he says. After Coopers pre-
along with Niklas Munck, an exchange dor exposes them not only to a wealth of sentation, one of the panelists a partner
student from Sweden who took the course entrepreneurs, but also to the larger com- from KPMG invited him to meet some
with them. Peter Mellen and Scott Mitic munity of venture capitalists and consul- of his partners. They have agreed to pro-
created headlight.com, an e-commerce site tants, who provide invaluable advice to vide tax and audit advice free for a certain
that sells units of learning via the internet. budding start-ups. period of time.
The push to turn their ideas into
action came from an energetic
entrepreneur-turned- adjunct professor
Tom McKnight. Tom was definitely a
rah-rah, you-can-do-it kind of guy. His big
thing was that he wanted to see businesses
pop out of the class, says Matt Carlson.
The entrepreneurship program at
Georgetown focuses on just that teach-
ing students how to turn their ideas into a
business. Program director and Professor
Elaine Romanelli views entrepreneurship
as a disciplined skill set that can be learned
and mastered. It is not magic, it is about
doing the hard work of networking, of

Scott Mitic (MBA98) and Peter Mellen (MBA98)

(top row, second and third from left)
with headlight.com employees.

10 The McDonough School of Business

P angeas founders went through
a similar process of soliciting feedback
from as many sources possible, including
local telecom stars, faculty, and students.
One thing I think we did well was to be
aggressive in seeking out feedback and to
expand our network of contacts, because
we really wanted a bullet-proof business
plan, says Carlson.
Feedback is essential to would-be
entrepreneurs, but it can also be brutal,
ranging from nay-sayers to prominent
executives who tell you how bad your idea
is. Weve had a number of experiences like
that and they are incredibly bruising, says
Peter Mellen of headlight.com. But they
are also useful because we wouldnt have
taken the quantum leaps otherwise.
Mellen looks back on these experiences as
turning points in helping refine and
improve their business plan.
Entrepreneurship has captured the
imagination of business students across the
United States in recent years, fueled by the
rise of the internet, more and better-coor-
dinated sources of capital, and a desire
among students to forge a different career
path from their parents, who faced the
uncertainty of corporate downsizing in the
1980s. A survey by the Graduate Manage-
ment Admission Council of MBA stu-
dents revealed that 22% of the class of
1998 planned to launch a company within
five years.
But the Georgetown entrepreneurs of
the MBA class of 98, as well as the class of
99 (who number ten aspiring entrepre-
neurs) are part of a larger trend of students
starting businesses right out of business
school. It used to be common for students
to go to business school and get some con-
sulting or industry experience before
launching a business.
That was Scott Mitics plan. What
surprised me was that I crossed the barrier
from wannabe entrepreneur to action-ori-
ented entrepreneur. I think the catalyst was
Tom McKnight and meeting Peter, who
was like-minded and driven to make
something happen now rather than later,
he says.
Still, taking the leap while in business
school is no mean feat, requiring steely
determination and hours of work outside
of regular classes on phone calls, meetings,
and refining the business plan. For the
founders of Pangea and headlight.com, the
work began in earnest after the fall
semester of their second year. Both walked
out of their entrepreneurship course with
the semblance of a business plan, but with
much work still to be done.
We went home over Christmas and
each of us decided to think about whether
we really wanted to be doing this, says
Christian Jepsen, one of the four Pangea
founders. Everyone came back saying
they wanted to make a go of it.
Mitic and Mellen vowed to start a
business together over lunch in the sum-
mer after their first year marked by a
symbolic burning of their resumes but
the process was still difficult. As classmates
cycled into the job search and successfully
landed plum jobs in consulting or finance,
they wondered whether trading their
MBA training and a prestigious job for
something so uncertain was worth it. A
walk past the career center and even a sin-
gle job interview seemed out of the ques-
tion. There is an incredible psychological
momentum that a class of bright, over-
achieving students create towards one idea
of success. We defined success in different
terms, but it was daunting to break from
the traditional path, admits Mitic.
Mellen recalls a critical turning point
in their decision to make the leap into
entrepreneurship. I walked into Elaine
Romanellis office around Christmas and I
told her that I didnt think this online
learning thing was going to happen. She
just said, No. You cant do this, your idea is
too good. That was a crucial conversation.
If Elaine had not been there to support us,
Im not sure we would have had the
strength to stay the course, says Mellen.
Since leaving Georgetown, Mellen
and Mitic have set up shop in San Francis-
co, built a large library of learning content,
and redirected their business strategy to
focus solely on individual customers who
are seeking skills to succeed on the job.
Scott Mitic (MBA98) and Peter Mellen (MBA98) ,
co-founders of headlight.com.
Spring / Summer 1999 11
 There is an incredible

psychological momentum

that a class of bright,

overachieving students
create towards one idea
of success. We defined
success in different terms
Scott Mitic (MBA 98)
A presentation before Silicon Valleys
Band of Angels, ground zero for internet
investing, yielded significant funding and
marked the companys first key milestone.
They now employ a staff of 10 and expect
to be up and running in the summer on
the website www.headlight.com. Their
goal is tens of thousands of transactions
per month. If all goes according to plan,
they look to raise additional financing
by year-end for branding and audience
outreach.
Pangeas founders are also in the
building phase, literally speaking, con-
structing a 5500 kilometer fiber-based net-
work that they plan to sell to carriers such
as MCI Worldcom and France Telecom.
Along the way, the original plan of using
submarine-based technology shifted; sub-
marine cable will make up only a quarter
of the network now. With the build-out
estimated at $400 million, funding was
critical. Matt Carlson moved to the
New York area to oversee that aspect of
the business. In November, they struck
gold, receiving $100 million in equity
financing from the New York based
Dolphin Communications. A deal with
a major investment banking firm is cur-
rently in the works.
The rest of the team works out of an
office in Amsterdam. Stephanie Adams
concentrates on the complex European
license and regulatory issues, while Chris-
tian Jepsen, an engineer by training, han-
dles network development. Niklas Munck
is busy making contact with potential cus-
tomers who will buy or lease marketing
capacity on Pangeas network.
If If all of this sounds a bit intimidating
to the non-entrepreneur, Matt Carlson
seems unphased. I never thought of this
as an enormous risk. The scale was big, but
we face the same challenges as other
entrepreneurs. It basically comes down to
the same thing, convincing somebody that
your idea is going to work and then
putting it in place, he says.
The entrepreneurs lifestyle may not
be every business students dream, but for
those with the drive, it is a career choice as
surely as consulting, finance, or marketing.
Aspiring entrepreneurs can take heart
from Scott Mitics advice. The only thing
stopping students from being
entrepreneurs is the belief in their ability to
go out and take the chance. There are a
thousand and one reasons why not to take
the chance. But there is one really good
reason and that is the opportunity to be an
entrepreneur.
Elisabeth Liptak

12 The McDonough School of Business

 THE NEW BUSINESS MENTORS
Jonathan Silver advises MBA students about entrepreneurship
at the fall Career Extravaganza.
S
ome say entrepreneurs are born and
not made. Dont tell that to Jonathan
Silver and Paul Centenari. The two
adjunct professors not only bring real-world
entrepreneurship to the classroom, but also
enthusiasm and encouragement for their art.
Some personalities may be better suited to
starting a business, but the process of building
a company can definitely be taught and
improved upon. There is an experience curve
in entrepreneurship and this helps students
get a leg up, according to Silver.
By day, Silver is a managing partner in Com-
monwealth Holdings, a private equity partner-
ship that invests in and acquires small to mid-
size operating companies. Since 1997, he has
been exposing business school students to the
realities of running a business developing
ideas, finding capital, positioning the product,
and building a management team. tial in future ventures. The MBA students from
Ive seen hundreds of (start-up) com- his fall class are a different story. At last count,
panies and thousands of business seven of his students plan to launch companies
plans and I know what is likely to when they graduate. In addition to Kit Cooper
work, he says. and Alberto Fernandez service call center,
Juliana Lutzi has launched online training
Paul Centenari has spent hundreds, if
courses for the financial industry. Abraham
not, thousands of hours writing those
Chehebar and Luis Gajate have started a bot-
plans. A Harvard MBA, he and his
tled water company. Alberto Rios and Fernan-
brother left the investment banking
do Betancor will be owner/operators of a box
business in Denver to buy Atlas Con-
business affiliated with Atlas Containers. Other
tainers, a corrugated box company in
entrepreneurs from the class of 99 include Chris
Severn, Maryland. The two have been
McLaughlin (JD/MBA 99), who has started
on a buying binge, snapping up seven
SmartPortfolio.com, a company that provides
allied companies in the last 10 years.
investment analysis and advice via the web,
In one of those deals, we were buy-
and Karen Williams, who launched KR Informa-
ing a company losing a great deal of
tion Services, Inc., an online art gallery.
money. We spent 400 hours doing the
business plan, presented it to 18 bankers and Who says entrepreneurship cant be taught?
16 turned us down, he says. Students like
these kinds of stories. They like to hear how
what they study has a real-life component.
It is no surprise, then, that Centenaris
entrepreneurship course focuses on how to
write a successful business plan. Described by
students as intense, hes been known to
meet with student groups for hours at a time.
Paul is one of those guys who cant do some-
thing less than 150%, says Kit Cooper (MBA
99), who took his class in the fall. He brings
the same drive that makes him a success in
business into the classroom.
Centenari has been teaching entrepreneurship
to undergraduate and graduate business stu-
dents at Georgetown since 1997. Although
undergraduates are less likely to start compa-
nies right away, he definitely sees their poten-
Spring / Summer 1999 13
 A Back-Saving Business
rofessionals who sit at a Enterprise Fund (HAEF), Mazlish
P
desk all day can actually opened the first Healthy Back Store in
be engaged in backbreak- Rockville in 1994. Today, the Healthy
ing labor. Tony Mazlish Back Store has locations in Washington,
(MBA91) may have DC, Virginia, North Carolina, and
the cure. California.
Mazlish, founder and owner of the Like most entrepreneurs, Mazlish
Healthy Back Store, wagers its your didnt hit success with his first business
ergonomically incorrect office chair that is idea. In college, he launched a business
causing you pain. A lot of people try to called No Sweat, marketing designer
use the 10-year old clunker chair until it sweatpants. After college, he started a
hurts, says Mazlish. Hurts is the opera- business selling products to college stu-
tive word-the Bureau of Labor Statistics dents that flopped pretty quickly,
states that work-related musculoskeletal Mazlish recalls. He then opened up The
disorders account for approximately 34 RayBan Man, a sunglass store, but ran it
percent of occupational injuries with days into the ground after a year and a half.
away from work. I didnt understand the financial side
A search for a good office chair to ease of business, says Mazlish, who studied
his own painful back alerted Mazlish to art history in college. This led him to
the entrepreneurial opportunities in selling Georgetowns MBA program, which he
ergonomic products. Leaving his job at the credits for developing his accounting
venture capital fund Hungarian American and financial skills.
Tony Mazlish (MBA91)
14 The McDonough School of Business
Although he worked for HAEF after
earning his MBA, Mazlish was infected
with the entrepreneurial bug, and his expe-
riences at HAEF only reinforced his desire
to be in business for himself. At HAEF, I
helped a lot of people start their own busi-
ness, recalls Mazlish. And I knew I want-
ed to be on the other side of the desk, run-
ning my own business.
While Mazlish enjoys being his own
boss, he advises would-be entrepreneurs to
know themselves before they sink money
into a venture. I think the biggest chal-
lenge in starting your own business is stay-
ing out of your own way, says Mazlish.
Everyone has their glaring weaknesses,
and the trick is figuring out what they are,
not letting them sink your business, and
hiring people to complement your weak-
nesses. To save him from himself, Mazlish
appointed a board of directors to strength-
en his own accountability.
Entrepreneurs are notorious for serial
startups, selling a business after developing
it from its embryotic stage in order to start
another one. Does Mazlish see this in his
future? Entrepreneurs dont become rest-
less, says Mazlish. They are restless. Ive
been restless since day one. I dont envision
doing this forever, but having said that, I
have the worlds greatest job. I love it.
Securing the Future of Online Privacy

ost Internet

M
surfers do not
scrutinize a web
sites fine print
for their privacy
policy what
information the site collects about them
and how they use it. Professor Mary Cul-
nan is the exception. A highly regarded
expert on information privacy at The
McDonough School of Business, Culnan
recently conducted a survey of more than
300 consumer-oriented web sites in the
United States to see how many disclose
their information practices.
Privacy watchers in business, govern-
ment, the media, and consumer advocacy
groups eagerly awaited the results of the
Professor Mary Culnan
study, released in mid-May (available on
www.msb.edu/faculty/culnanm/gipp-
shome.html). After all, it was just one The 1998 FTC study conducted a Out of the 364 companies eventually
year ago that a Federal Trade Commission random sample of all commercial web surveyed, the researchers found that 65.7%
(FTC) study reported to Congress that sites, while Culnans study focuses on sites of the Web sites posted at least one type of
private industry was doing a vastly with the heaviest consumer traffic. The privacy disclosure either a notice of their
inadequate job of posting their privacy sample was culled from an initial list of the privacy policy or a statement about how
policies on the Internet. At the time, 7500 most frequently visited web sites pro- the information they collect on their site
only 14% posted any privacy disclosure vided by Media Metrix, a web audience was used. The study also found that 92.9%
on their web sites. tracking company. Each site visited had a of the sites collected at least one type of
The FTC essentially told business to minimum of 32,000 users during the personal information, such as name, email
do it on their own or there would be a law month of January. Twelve Georgetown or postal address, while 56.9% collected at
requiring it. Because the Internet is a glob- MBA students helped gather the data least one type of demographic information,
al medium, there were potential trade from the sites during spring break in such as gender, preferences, or zip code.
issues with Europe, where privacy disclo- March. The findings seem to show that com-
sure is required. There was also growing The web surfers noted which sites panies have worked to develop privacy
concern about collecting information on collected personal information and policies since the FTCs report last year,
children, says Culnan. whether the company stated its privacy says Culnan. There was a hope that the
Six months after the FTC report was policy or information practice, such as We industry would self-regulate, and it appears
released, The Direct Marketing Associa- have a secure server. In analyzing the pri- that is happening.
tion approached her to do a study for them. vacy disclosure statement further, they
But the Online Privacy Alliance, a large looked for how sites notified consumers, if
industry group, convinced her to do a consumers had a choice in whether infor-
broader study. The FTC endorsed the plan. mation was collected about them, whether
they had access to the information, and
whether the information was secure.

Spring / Summer 1999 15

 FACULTY FORUM
Managing Knowledge: The Real Challenge
Knowledge-management is
a buzzword1
The definition of the term is imprecise, its
application is uncertain and its utility is
questionable. Yet numerous articles on
knowledge-management appear every
month in academic and business periodi-
cals and the phrase knowledge-manage-
ment is on the lips of every management
consultant. So, will knowledge-manage-
ment soon slip quietly away like so many
business buzzwords of the past? Perhaps
not.
Beneath the hype of knowledge-man-
agement lies a very real challenge for
todays firms. Firms are crucibles of knowl-
edge - managerial, operational, and techni-
cal. They exploit this knowledge to com-
pete successfully, gain profitability and
grow. Yet, which firm can claim to harness
its knowledge fully and effectively? Which
organization does not re-invent the wheel
almost on a daily basis? Which organiza-
tion thoroughly exploits its best practices
or rejects its worst practices? Which firm
can always find (within the organization)
all the knowledge needed for decision
making? Few, if any. That is why there will
always be opportunities for firms to
increase their operational efficiency, man-
age risk and learn by better exploiting the
resources and capabilities within the orga-
nization or within their external environ-
ment. The opportunities to gain a compet-
itive advantage through managing
knowledge are many, even if the precise
solutions of knowledge-management are
still unclear.
16 The McDonough School of Business
The Wonders of Information
Technology
The current emphasis on knowledge man-
agement owes much to the recent advances
in Information Technology (IT). In fact,
the terms knowledge management and
information technology are often used
synonymously. In his new book, Business
@ the Speed of Thought, Bill Gates says that
companies ...need to respond quickly to
emergencies and opportunities, to quickly
get valuable information to the people in
the company who need it, and to quickly
make decisions and interact with cus-
tomers. Indeed, in many companies today,
computer-based information systems are
increasingly used to transfer electronic data
and effectively link suppliers, customers
and organizational units. Wal-Mart, a firm
hardly prone to extravagance, invested ear-
ly and heavily in a sophisticated computer-
based information system to help track
sales, inventory, and supplies. The instant
and reliable information from this system
contributed in an important way to the
firms lower operating costs vis-a-vis its
competitors. Today, Wal-Mart employs
nearly 1500 computer professionals to run
its information systems. Similarly, FedEx
takes pride in its advanced IT systems that
it views as critical to customer service.
COSMOS, the firms multifaceted track-
ing system, is continuously upgraded and
seen as a major source of competitive
advantage. Recently, the versatility of com-
puter-based information systems has been
greatly enhanced through groupware,
intranets and a range of user friendly soft-
ware, making IT the backbone of most
firms knowledge management systems.
The Challenge of Transferring
Tacit Knowledge
Though IT has proved extremely useful to
companies in facilitating the flow of data
across organizations, these computer-
based information systems also have limi-
tations that arise from the nature of orga-
nizational knowledge.
Recent research in the area of knowl-
edge management has shown that knowl-
edge is sticky and remains localized with-
in firms and regions. For instance, firms in
the semiconductor industry find that they
need a physical presence in Silicon Valley
to keep abreast of the fast-paced changes
taking place in the field. Why doesnt this
regional knowledge flow to firms all over
the world in this very global and techno-
logically sophisticated industry? My
research shows that part of the answer lies
in the fact that knowledge is embedded in
people, and the regional mobility of engi-
neers and conversations between industry
insiders have much to do with the flow of
knowledge. This regional flow of knowl-
edge arises from the tacit nature of knowl-
edge. Tacit knowledge is by nature difficult
to articulate (for example, try to verbally
teach someone to swim or ride a bicycle), is
often accumulated through experience and
is inherently uncodifiable. IT systems are
not always useful in the transfer of tacit
knowledge.
Tacit knowledge exists not just at the
level of the individual but at the organiza-
tional level too. Take the example of a
prominent semiconductor firm that decid-
ed to move a wafer fabrication plant from
Silicon Valley to Arizona. To avoid losing
any of the knowledge embedded in the
organization, the firm transferred most of
the personnel involved in the facility, along
with the plant blueprints, the machinery
 By Paul Almeida, Assistant Professor, The McDonough School of Business
and instrumentation. Though the firm
transferred all the codifiable knowledge
and through the replication of the original
facility in the new location, much of the
more tacit knowledge, it took the plant
many years to reach the original level of
productivity. The knowledge embedded in
the fabrication plant was more than any
individual or group could point to or iden-
tify. By changing their location, the firm
lost some of the know-how that it previ-
ously possessed! IT systems can provide
only partial solutions for the transfer of
organizational know-how.
Complementary Mechanisms of
Knowledge Transfer
Electronic information systems may per-
mit low-cost knowledge dissemination
across many individuals, but they permit
only limited complexity of language, flexi-
bility of format, degree of personalization,
and interactivity. Thus lean IT based
mechanisms, while suited to the transfer of
highly codifiable knowledge, become less
efficient as knowledge becomes more tacit
and complex.
In many semiconductor companies,
managers view richer communication
media including voice media (telephone),
combined video-voice media (video-confer-
encing), and written media (fax, paper
reports) as important complements to com-
puter-based information systems. For
example, telephone communication is
viewed as a highly interactive bilateral
medium permitting clarification and inter-
pretation of electronic data and problem-
solving activity; video-conferencing is useful
in building consensus; faxes permit easy and
quick communication of graphic sketches;
written memos and reports provide authori-
ty and authenticity to support electronic
communication. The most tacit knowledge
can be transferred only by the rich mecha-
nisms - by moving individuals and teams
who possess the requisite know-how.
Scientists in the biotechnology indus-
try acknowledge the value of electronically
transferred data but emphasize its depen-
dence upon the credibility of the source
and the ability to query, discuss, and verify
the data. This broader trust building is
facilitated by a variety of richer communi-
cation modes, such as telephone conversa-
tions and face-to-face meetings. Thus, to
facilitate the transfer of broader organiza-
tional knowledge, firms need to use com-
plementary mechanisms simultaneously.
The Cornerstones of Knowledge
Management
While companies are increasingly intro-
ducing formal systems of knowledge trans-
fer discussed above, they also rely on infor-
mal systems as well. For example,
knowledge is the basic currency for a man-
agement consulting firm like McKinsey.
The firm has a number of IT based sys-
tems to facilitate the flow of data and facts
from one consultant to another.
However, McKinseys most powerful
knowledge management systems are its
informal ones. Consultants point to the
utility of networks of personal acquain-
tances and the common culture of giving
and asking for help as being the most use-
ful knowledge management systems. For a
global company like McKinsey, the com-
mon organizational culture of shared val-
ues, heritage, and behavioral norms helps
overcome many of the barriers posed by
different national cultures and systems.
Knowledge-Management and
Sustainable Advantage
Knowledge management systems based on
IT alone are likely to lead to only a fleeting
advantage, since they can be easily imitat-
ed. Wal-Marts recently settled lawsuit
against Amazon.com is an example.
Firms, however, have a tremendous
capacity to manage knowledge through a
variety of mechanisms by standardizing
procedures and formats, issuing directives
to administer coordination between units,
setting policies to influence inter-personal
relationships between employees, and pro-
viding a common culture to facilitate com-
munication and cooperation. While firms
have made huge strides in the use of IT to
transfer information worldwide, the next
challenge of knowledge management lies
in the design and operation of organiza-
tional structures, management systems,
and shared culture that can facilitate the
movement of both information and tacit
knowledge.
As businesses globalize, firm advan-
tages arising from traditional sources such
as the unique access to capital, labor or
markets can expect to decline. Corre-
spondingly, a firms ability to develop,
access, integrate, and deploy knowledge
across its worldwide system is likely to
grow ever more critical. Only by integrat-
ing their information technology with
their organizational structure, systems and
culture can firms achieve a sustainable
competitive advantage through the man-
agement of knowledge.
1 This article is based in part on research conducted
jointly with Professor Rob Grant and Jaeyong Song
in the semiconductor industry and Susan Bartholo-
mew in the biotechnology industry.
Spring / Summer 1999 17
Dividends
Undergraduate Financial Aid
Continues To Draw Support
Commitments to McDonough undergraduate financial aid
continue to grow.
Stephen M. Paluszek (B79), a member of Georgetown
Universitys Board of Regents and the Alumni Associations
Board of Governors, has given $350,000 to establish an
endowed scholarship fund in honor of his parents. The Jean
and John Paluszek Scholarship Fund will provide financial
aid to middle-income families of undergraduate business
students with demonstrated financial need.
Georgetown opened me up to opportunities I may not
have otherwise pursued, says Paluszek, a principle with
PRB Advisors LLC, an investment management firm. Id
like others who may not be able to attend Georgetown to
have that opportunity.
Paluszek has offered to mentor scholarship recipients
and hopes they will consider contributing to the fund after
graduation. I want students to learn that as alumni they can
make a difference, says Paluszek. They wont realize that
unless we tell them. If everyone gives a little, collectively,
thats very powerful.
The estate of John Garrity has given $108,600 to the
John T. Garrity Fund, which will provide international study
scholarships for undergraduate business students. Garrity,
who was a member of the business school faculty, had a
strong interest in international business. From 1990 to 1995,
he ran the Advanced Management Institute, a Georgetown-
affiliated program that trained managers making the transi-
tion from state-run to privatized industries in the Czech
Republic and Slovakia.
John was profoundly committed to helping the less
fortunate help themselves, said Professor Dennis Quinn.
The program for management education in the Czech and
Slovak Republics was his way of helping the citizens of these
economies help themselves make a transition to a democrat-
ic market economy.
Paluszek and Garritys significant commitments bring
the total Third Century Campaign fundraising for business
school financial aid to $2 million. The Campaign has allot-
ted a $17 million goal for business school financial aid out of
the $100 million McDonough goal.
To sustain a diverse, academically rigorous, student
body, we must continue to enable every student who is quali-
fied a chance to pursue admission to McDonough, regard-
less of resources, said Dean Christopher Puto. The schol-
arships endowed by our alumni, faculty and friends
emphasize our commitment to a student body that reflects
American and international business.
McDonough Annual Fund donations experienced a 9.6
percent increase over last year, bringing the total raised to
date for FY99 to $1,403,288. Fundraising for the 1999
MBA Class Gift to date stands at $196,000, with more
funds expected from matching gifts. Eighty-four percent of
the gift will go towards the new business school facility and
16 percent to scholarships.
Several business school undergraduate alumni con-
tributed funding for the interim Graduate Center in the Car
Barn (for more details, see page 6).
Faculty and Staff NEWS
McDonough MBAs
Have The Edge On
International Careers
M any U.S. MBA pro-
grams characterize themselves
as international without
defining what international
really means.
In the fall, a task force was
formed to examine aspects of
international business at
McDonough in comparison
with other leading internation-
al business MBA programs,
including internationally-qual-
ified faculty and their research,
and international job place-
ment for MBAs.
A look at McDonough
MBA career placement statis-
tics shows that graduates of the
program are in fact seeking
and finding international
careers.
Approximately seventeen
percent of McDonough MBAs
find employment internation-
ally, according to a survey of
placements from 199698
conducted by the MBA career
management office. This
includes U.S. students
employed abroad, and interna-
tional students employed out-
side their home countries.
In 1999, half of the corpo-
rations recruiting at the school
were seeking students for
international placement.
McDonough has a growing
strength in international job
(OPIC), is responsible for
Professor Stan Nollen
placement that appears to be
superior to peer MBA pro-
grams, according to Professor
Stan Nollen, co-chair of the
international business task
force.
The task forces findings
also indicate that McDonough
appears to have a more inter-
nationally experienced faculty
than other top U.S. schools.
We have to work con-
tinuously at maintaining and
improving our strength in inter-
national business says Nollen.
It wont happen by itself. are competing for attention
The task force will contin-
ue its research on ways to fur-
ther incorporate global educa-
tion and research at
McDonough. People have
different ideas, concepts and
plans, but there is no model for
international business educa-
tion, says Nollen. We have to
make our own way.
Investing In
Emerging MBAs
G eorge Munoz, presi-
dent of the Overseas Private
Investment Corporation
helping U.S. companies invest
in emerging markets. This
semester, he was responsible
for helping McDonough
MBA students understand
those investments.
Its important for stu-
dents to realize that globaliza-
tion will improve the standard
of living for people around the
world, says Munoz, explain-
ing his desire to teach at
Georgetown. But there is also
a risk of harm if we are not
thoughtful and knowledgeable
about how to do it.
Throughout his course,
Munoz focuses on the impor-
tance of development strategy
and the challenges in establish-
ing stable economies that are
equitable. So many countries
curriculum provides students
and development that the
challenge is ensuring that the
countries have a thoughtful
strategy that brings economic
development but also ensures
people locally are not left
behind, says Munoz.
George Munoz
He gave us frameworks
that are applicable to foreign
investment regardless of loca-
tion, says Laura Mendelson
(MBA99), one of the students
in the course. Because he has
worked in both the public and
private sectors, he can antici-
pate the foreign countrys gov-
ernmental concerns while
addressing the needs of an
American business person
looking to invest.
Munoz believes that
McDonoughs international
an edge in an increasingly
global economy. McDonough
has the reputation of attract-
ing globally diverse students
that are self confident, says
Munoz. They are sophisticat-
ed enough to know that the
business of tomorrow will
require international transac-
tions, activities, and profits
that will impact Americas
success or failure.
Spring / Summer 1999 19
 Faculty and Staff NEWS
Putting Service Industries
on the Operation Line
W hen asked to
recommend must read mate-
rial for a CEO, Professor Joe
Mazzola suggests Intellectual
Capital: The New Wealth of
Organizations by Thomas
Stewart. It reflects my belief
that managing intellectual
capital is one of the primary
missions of a business.
Managing and training
people so they can produce
effectively and efficiently
across manufacturing opera-
tions is the focus of his
research. Mazzola has exam-
ined the flexibility of using
employees in more than one
stage of the production pro-
cess. He finds that, if done
judiciously, cross-training each
worker to perform a small set
of activities can capture a large
percentage of the benefit that
Professor Joe Mazzola
20 The McDonough School of Business
would result if they had been
IN THE MEDIA
trained to do everything, often
a costly and problematic pro-
cess. He is also exploring ways
in which manufacturing pro-
cess innovations can be applied
to service industries.
Professor Scott Whisenant was quoted in a February 19th front-
page story in The New York Times (Melody Petersen) on the shortage of
students studying accounting.
Professor Jim Angel was quoted on the Dow breaking 10000 in
The operations of service
Richard Waters comment and analysis section of the March 17th edition
companies are fascinating
because of the human interac- of The Financial Times, and the March 17th edition of Investors Business
tion and intangibility that are Daily (Loren Fleckenstein).
unique to services, and yet
Microsoft CEO and co-founder Bill Gates spoke in Gaston Hall on
their operations can benefit
from the strategic transfer of March 25, promoting his new book Business @ The Speed of Thought.
manufacturing technology, The event was featured in or on: The New York Times; The Toronto Star;
says Mazzola. The Scotsman (England); AAP Newsfeed; InfoWorld Daily News (Patrick
Mazzola comes to Thibodeau); News & Observer (Raleigh, NC); The Cleveland Plain Dealer
McDonough from Duke Uni-
(Andrew Glass/Cox News); CNBC; The Los Angeles Times (Jube Shriver);
versity, where he taught for
the Nightly Business Report; TechWeb News (Mary Mosquera).
over a decade. He will teach a
new MBA course in the fall on The new McDonough MBA curriculum was featured in the April 5th
managing service operations.
edition of BusinessWeek (Nadav Enbar).
He expects it will draw stu-
dents interested in consulting Professor Mary Culnans survey of online privacy practices for the
and investment banking the Federal Trade Commission was covered in May 13th editions of The
kind of students who will be
Washington Post (Robert OHarrow, Jr.), The New York Times (Jeri Claus-
managing intellectual capital in
ing) and The Wall Street Journal (John Simons).
the future.
The Dynamic Duo
Ricardo Ernst and Ken Homa Bring the Academic and Actual Together in POM

T alk about a management

turnaround. Production and
operations management,
(POM) the course that many
MBA students might rather
skip, turns out to be the course
they most value, thanks to Pro-
fessors Ricardo Ernst and Ken
Homa. The two made the list
of favorite professors of the
MBA class of 1998 in the last
Business Week survey.
Last spring, Ernst and
Homa decided to experiment
by teaming up to teach the
required POM course. The Professors Ricardo Ernst (left) and Ken Homa engage students in class.

experiment was such a success

that future MBA students will
be able to benefit from the dif-
ferent perspectives each brings
to the classroom.
Ernst, an academic known
for his research in global logis-
tics, has been teaching at the
business school since 1987.
Homa was an operations and
marketing executive at Black
& Decker, who joined the
Georgetown faculty in 1997.
Their paths first crossed when
Ernst was conducting research
at Black & Decker. Ernst later
helped Homa teach his first
graduate POM course at
Georgetown.
We began to see that we
had an overlapping philosophy
and approach to the content of
our courses, says Homa. One
day, we were looking at the fol-
lowing year schedule and
almost instantaneously we
both said, Wouldnt it be nice
if we could teach this together;
then we said, why cant we?
We couldnt think of any rea-
sons why we couldnt and so
we did.
The plan was to teach on
alternate weeks, although they
ended up visiting each others
classes to get a sense of conti-
nuity. They also got together to
teach both the first and last
class of the semester.
It ended up being a
learning experience for us as
well as the students, says
Ernst. We were sharing infor-
mation all the time as to what
worked and what didnt. It def-
initely showed up in the class-
room, says Ernst.
Ernst and Homa push
students hard on quantitative
analysis and rigorous case work
that students describe as
intense, but a great learning
experience. The course also
emphasizes useful tools that
students will be able to imple-
ment on the job, such as orga-
nizational flow charts.
I came to business school
with an engineering back-
ground and thought about
going into operations, but did-
nt know what that meant,
said Roshena Ham (MBA
00). Like many students, I
was surprised at how widely
you apply operations. I thrived
on the class. Ham and class-
mate Karin Toth were inspired
by their classroom experience
to start a POM club where
operations practitioners can
share their real-world experi-
ences with business students.
Ernst attributes the
courses popularity to changed
expectations. Students come
to the class thinking that oper-
ations is going to be boring.
Then they discover that it is
not boring and even useful. I
have received e-mails from stu-
dents doing internships who
tell me that what they learned
is relevant, says Ernst.
Homa agrees. Operations
is the class everyone dreads. So
our job is to breathe life into
it, demonstrate the relevance,
and get students energized
toward the area. Our greatest
thrill is converting students
who hadnt thought of opera-
tions as a career and suddenly
decide to pursue it.

Spring / Summer 1999 21

 Faculty and Staff farewells
Martha DeSilva
Fare Thee Well
The Bard of the business
school has departed.
Martha DeSilva (G89),
associate director of student
services and local playwright,
left McDonough in November
after 13 years here.
Marty cared about your
life both as an MBA student
and as an individual, notes
David Gee (MBA94). She
always had her finger on the
pulse of student life.
Her ability to connect with
people did not go unnoticed.
Mike Carlo ( MBA94) felt she
would be perfect as a human
resources manager at Pricewa-
terhouseCoopers, where he
works, and recruited her.
The corporate world isnt
stifling Martys creative urges.
She is currently working on a
play, and recently received an
award from the Maryland
Community Theatre Festival
for outstanding original script.
22 The McDonough School of Business
From First to Last
Communications professor
Annette Shelby was the first
woman to be granted tenure by
the business school in 1986,
and became the schools first
female full professor in 1992.
But this spring was her last
semester teaching. After 20
years at Georgetown, Shelby
will retire from the classroom.
Shelby arrived at George-
town after serving as a profes-
sor at her alma mater, the Uni-
versity of Alabama. When the
MBA program started, Shelby
responded to students requests
for much-needed communica-
tion skills by designing and
teaching the first business
communication core class.
Annettes extraordinary
skills and unwavering determi-
nation have been the driving
force behind our communica-
tions curriculum, says Dean
Christopher Puto.
Shelby still maintains con-
tact with several former stu-
dents, and has randomly
Professor Annette Shelby
encountered students in such
diverse places as Turkey, Rus-
sia, Poland and Hong Kong.
More traveling is part of
Shelbys retirement plans, in
addition to completing some
research products, reading, and
enjoying her family.
I will certainly miss
much of what I do here, but I
truly believe there is a time for
all things, and the time just
seems right for me to see what
lies around the corner. And
Im really looking forward to
those challenges.
But those challenges can wait.
Says Shelby about her retirement:
The first thing Im going to do is
take a very long nap.
It Takes Two to
Replace Reinsch
When communications pro-
fessor Lamar Reinsch ends his
appointment as the associate
dean of graduate programs this
June, it will take two people to
replace him. His position will
be split between the associate
dean of graduate programs
and the chair of the graduate
curriculum and standards
committee.
The time commitment
has been the biggest chal-
lenge, says Reinsch. The job
has evolved over time, and the
responsibilities have grown.
The design and imple-
mentation of the new MBA
curriculum consumed much of
Reinschs tenure. It was a pro-
Professor Lamar Reinsch
ject whose magnitude he did
not entirely anticipate when he
first became the graduate dean.
Soon after he started,
Reinsch was forming a task
force to study the MBA cur-
riculum, gathering evaluations
from alumni and corporate
recruiters, and setting plans in
motion to form the current
curriculum.
Lamars accomplishments
are nothing short of heroic.
Under his leadership, our
MBA curriculum has moved
from 'good to leading edge,
says Dean Christopher Puto.
Reinschs position afforded
him insights into the adminis-
trative side of running an aca-
demic enterprise. But he looks
forward to returning full-time
to his first calling, teaching.
Ive missed my twin pas-
sionsteaching and research,
says Reinsch. Im feeling a lit-
tle rusty, but it will be a delight
to be back in the classroom.
 Alumni NOTES
UNDERGRADUATE
64 Barbara Durham was
nominated for a federal bench
position on the Court of Appeals
for the Ninth Circuit in January
1999. Barbara has served as the
chief justice with the Supreme
Court of the State of Washington
since 1995.
65 John Perez retired from
the U.S. Air Force in December.
His final assignment was as com-
mander of the 105th support
group at Stewart Field, New-
burgh, N.Y. Upon retirement, he
was promoted to brevet Brigadier
General and was awarded the
Legion of Merit. John and his
wife, Ascension, live in Campbell
Hall, N.Y.
71 L. Mark Winston is prac-
ticing law with Negroni & Win-
ston in Maryland and Washing-
ton, D.C. He was recently
appointed chairman of the Mary-
land Transportation Commission
by Governor Parris Glendening.
72 Chris Klein is senior vice
president of ATM systems at
BankAtlantic Bancorp, in Fort
Lauderdale, Fla. Since Chris
joined the institution in August
1997, BankAtlantic has tripled its
ATM base.
Please e-mail your alumni notes
to shinee@gunet.georgetown.edu
or call Elizabeth Shine at
202-687-4080.
76 Edward J. Wehrner was
appointed CEO of Wintrust
Financial Corporation in Lake
Forest, Ill., on May 22, 1998.
Edward has been president of
Wintrust since its formation and
has also assumed the role of chair-
man of Lake Forest Bank & Trust,
one of Wintrusts six community
bank subsidiaries in suburban
Chicago.
77 George C. Yeonas was
promoted to CEO of The Fortress
Group, Inc. in McLean, Va, on
March 25, 1999. He previously
served as the groups president
and COO.
78 Theodore C. Burns was
appointed senior vice president
and CFO of Phoenix Internation-
al Ltd., Inc., in October 1998.
Phoenix, headquartered in Orlan-
do, Fla., is a world leader in
installed client/server retail bank-
ing management solutions. Ted
was previously director in the
financial advisory services group at
PricewaterhouseCoopers LLP in
Washington, D.C.
78 Lee D. Gottesman is
serving as first vice president of
Congregation Bnai Israel in Toms
River, N.J., and will be starting his
second year as president of the
Interfaith Hospitality Network of
Ocean County, Inc., a non-profit
consortium of local churches and
synagogues. Lee has maintained
his law offices in Toms River since
1992, with an emphasis on
bankruptcy law. He also recently
celebrated his tenth wedding
anniversary with his wife, Joy, and
children, Sydney and Adam.
79 Edwin G. Davila-Bloise
(L84 & LLM88) was reappoint-
ed for his fourth term as chair of
the estate and gift tax committee
of the Greater Washington Soci-
ety of CPAs. Edwin works at
Ober, Kaler, Grimes & Shriver,
one of the nations oldest, full-
service law firms. His practice has
focused on estate planning, trust
administration, tax, and general
business planning.
79 Paul J. Kinyon has joined
the board of directors at Techni-
source, Inc., a national provider of
information technology services.
Paul is currently vice president at
AEGON USA Realty Advisors,
Inc., in Cedar Rapids, Iowa.
80 Kumar P. Barve was
reelected for a third four-year term
in the Maryland House of Dele-
gates in November 1998. He was
also reelected chairman of the
Montgomery County House Del-
egation and continues to serve as
chairman of the subcommittee on
science and technology. Kumar
welcomes any comments or ideas.
E-mail him at delbarve@aol.com.
80 Peggy (Daly) McCrary
and her husband, John, are pleased
to announce the arrival of their
triplet daughters. The girls, Ava
Caroline, Ilsa Juliet, and Ingrid
Christine, were born on October
7, 1998, and join their four-year-
old sister, Laura Catherine. The
family now resides in Tallahassee,
Fla., where Peggy and John are
both CPAs.
Spring / Summer 1999 23

80 Scott Perry was named
director of marketing and research
by the Greater Tampa Chamber of
Commerce in November 1998.
Previously, Scott has worked with
the Ybor City (Fla.) Chamber of
Commerce, AAA Auto Club
South, Lebhar-Friedman and the
A.C. Nielsen Company.
81 Christopher P. Franco
recently formed CapeSuccess Inc.,
a marketing and communications
firm that uses Internet and inter-
active technologies, based in Lake
Success, N.Y.
82 Miriam McCarthy Sadler
and her husband, John, gave birth
to their third child, John Francis,
on July 1, 1998. Miriam is a senior
vice president and manager of the
corporate and specialty lending
division at Crestar bank in Wash-
ington, D.C.. The family resides
in Silver Spring, Md.
84 Jim Selvaggi oversees
operations for Tremont Interna-
tional Insurance Ltd., a Cayman
Islands company that he helped
form. Jim lives in Hamilton,
Bermuda, but still makes frequent
visits to the Washington area.
85 Susan Kreusch, and her
husband, Kevin Smead (F83),
welcomed the birth of their son,
Spencer Frederick Smead, born on
November 9, 1998. The family
resides in Wilmington, Del.
24 The McDonough School of Business
85 John B. Wood was fea-
tured in The Washington Post on
November 30, 1998. He is presi-
dent and chief executive of Telos
Corp., a provider of computer net-
working products and services.
John lives in western Loudoun
County, Va., with his wife, Portia.
86 Greg Mazur graduated
from Harvard Business School in
May 1998, and has since been
involved in the start-ups of several
companies. He and his wife,
Kathy, have two children, Michael
and Natalie, and live in Hopkin-
ton, Mass.
87 Mary Keller Giemek and
her husband, Thomas (C86), wel-
comed the arrival of their first
child, Alexander John, on Novem-
ber 2, 1998. Mary is currently a
vice president for NationsBank in
Baltimore, Md.
90 Richard O. Leggett works
at Friedman, Billings, Ramsey
Group, Inc., and recently pub-
lished a report on IT services, pre-
dicting a strong 1999 for the sec-
tor. He has also been quoted in PR
Newswire in January 1999.
90 James Quick and his wife,
Melinda, welcomed the birth of
their first child, Elise Alexandra,
in October 1998. The family
resides in Reston, Va. John also
ran the Marine Corps Marathon
last year.
ALUMNI NOTES
92 Michele G. Di Peitro left 94 Mark M. Wiedmer has
public accounting to pursue a joined the New York office of Ful-
career in the food industry. She bright & Jaworski LLP as an
graduated in January 1999 as salu- associate. Mark will focus his
tatorian of her class at The practice on corporate law.
Restaurant School in Philadel-
phia, earning a degree in the culi- 97 Carlo Saba is with the
nary arts. She currently lives in loans syndication group at Bar-
Cherry Hill, N.J. clays Capital in New York.
92 Jason L. Rottenberg and 98 Jeffrey David Blumberg
his wife, Stephanie Renee, are now is now a first-year student at
residing in Cambridge, Mass., Dickinson School of Law in
where Jason is finishing his first Carlisle, Pa.
year at Harvard Business School.
Previously he was a manager with
Arthur Andersen LLP in Silicon
Valley, Calif.
93 Joseph E. Culleiton
recently joined the Pittsburgh
office of Reed Smith Shaw &
McClay LLP as an associate after
passing the Pennsylvania state bar
exam.
93 John F. OBrien, Jr. was
married to Melissa Pray on
November 14, 1998 in Birming-
ham, Mich. The couple resides in
Chicago, where John is a vice
president at Everen Securities.
94 James P. Doherty, III has
joined the Lafayette, La. law firm
Voorhies & Labb as an associate,
where he will focus on admiralty/
maritime law.
94 Trisha Teale was married
to Scott Bonilla on February 20,
1999, in Coral Gables, Fla. The
couple also resides in Coral
Gables, where they are both CPAs
for large corporations in Miami.
MBA
85
Linda Anderson co-founded a
consulting firm, Anderson Strick-
ler, LLC, last year. The firm is
located in McLean, Va., and pro-
vides real estate consulting ser-
vices for colleges and universities.
Linda recently hired fellow Hoya
alum, Michael Oliphant
(MBA98). She lives in Frederick,
Md., with her husband, Henry
Nino, and their two daughters.
87
Sari M. Anabtawi is running his
own investment consulting com-
pany, Sivana International, based
in London. The firm specializes
in raising funds for private U.S.
companies that are two to three
years away from going public. Sari
also sits on the board of three pri-
vate companies in the U.S.:
www.learningbyte.com,
www.webrfp.com and Century
Offshore Management. He is
married and has three children.
90
Class Agent: Lorraine Herr
(cmputrilit@aol.com)
9 South 021 Skyland Drive,
Naperville, IL 60564
George Coundouriotis and his
wife, Valerie, celebrated the birth
of their son, Alexander Coundou-
riotis, on September 14, 1997. Val
left her position at Ford to be a
full-time mother, while George
celebrated eight years there, most
recently interviewing for strategic
management positions. George
reports that Bernard Poncelet
also is in Fords employ in London.
Obviously, Ford knows where to
source great management talent!
Jason Wu is with Coca-Cola
in Shanghai.
As this update goes to press, I
received a call from my sister, who
is in law school, asking if I knew
of a William Kummel. She was
reading an article about law firm
economics in the Columbia Busi-
ness Law Review written by this
illustrious Georgetown MBA.
I am training to run the Chicago
Marathon (again) this year and
would love to share tips and com-
miserate with other runners in the
class. (Tell me your secrets, Jane
Ashton Hawes.) My maternity
leave ends in May, so I will be
returning to AT&T and working
with the consumer market. My
husband, Mike, is gearing up for
another summer of competitive
skydiving and our little Emerson
is learning to crawl. Please write
with news.
91
Class Agent:
Mary Pat Blaylock
(mpblay@hotmail.com)
Bob Karig has retired to his home
in Mount Vernon, N.H. Before
his retirement, he was the manag-
er of a consortium doing research
in advanced telecommunications
and information distribution.
THE WAR OF THE ROSS
Selling the French on Californian wines
may sound akin to selling coal to the
natives of Newcastle. But its all in a
days work for Mike Novy (MBA98).
Gallo Winerys sales director
for France, Novy was recently fea-
tured on the front page of The Wall
Street Journal for his ambition to
Michael Novy (MBA98)
crack the French wine market. And
not go cracked in the process.
This job is an absolute roller coaster, notes Novy. Its either an
extremely great day or a really terrible day.
Approximately 98% of wine purchased in France is French wine.
Which means making Californian wines stand out in a 2% market share
that also features such notable wines as those produced by the Italians
and Germans. Novys marketing strategy is to coax the French into dis-
covering Californian wines. The last thing you want to do is challenge
the quality of French wines, because the French feel pretty strongly
about their wine, says Novy. So were trying to make California a
region of choice for French consumers.
Since entering the French market a year ago, Gallo has sold
20,000 12-bottle cases annually, and its premium Turning Leaf Vintners
Collection can be found in a handful of leading Parisian restaurants.
Novys cultural challenges also extend to managing a pan-Euro-
pean salesforce, including Americans, French, Germans, Italians, and a
Luxembourgian. He believes their various cultural perspectives strength-
en Gallos mission, although he acknowledges that managing across cul-
tures has caused the biggest challenge in the job. The international per-
spective thats part of the McDonough MBA has been really helpful in
dealing with a multinational sales organization.
Henri IV, the first Bourbon king, dreamt of a chicken in every
French peasants cooking pot. Novy dreams of a bottle of Gallo on every
French dinner table. Sacr Dieu! His dream may yet come true...
Spring / Summer 1999 25
 Alumni NOTES
Janis (Tindal) Gray was married
to Josh Gray in October 1998.
Congratulations Janis! After hon-
eymooning in Hawaii and San
Francisco, Janis returned home to
Reston, Va., and to her job as a
senior market analyst for Sprint.
She does strategic planning for
Sprint business products.
92
Class Agent: Jon Gafni
(jngafni@cwix.com)
1311 Ozkan St., McLean, VA
22101
The overriding theme for the Class of
92 is my employer just got bought.
Jon Gafni left Qwest Communi-
cations after their acquisition of
LCI. He is now manager of
investor relations for Global
TeleSystems Group, a leading
independent owner and operator
of telecommunications companies
throughout Europe. Jon is living
in McLean, Va.
Thanks to SBC Communications,
Inc.s acquisition of Pacific Bell,
Vanessa George is now working
(really hard) for SBC Internet
Services in San Francisco, where
she was recently promoted. She
also recently moved to Oakland,
Calif.
Niels Nielsen is at EDS working
on projects for The Washington
Post that should keep him ridicu-
lously busy until Y2K. Although
hes been at this position for a
while, his employer keeps getting
bought. Systemhouse was bought
26 The McDonough School of Business
by MCI, which was bought by
Worldcom, which then sold the
business to EDS.
Glenn Hodges got his Ph.D.
from the Technical University of
Berlin. Hes spent the last couple
of years as director of motorsports
and trade shows for Chrysler
Europe, and has just moved back
to the Detroit area with his wife,
Silvia, to join the post-merger
integration team of Daimler-
Chrysler.
Maureen Clyne received a one-
month residency at the Cill Rialaig
Project Artists Retreat in County
Kerry, Ireland for March 1999.
Maureen spent the month continu-
ing work on her landscape series,
Gothic Novels. Her work has
been featured in six solo and 41
group exhibitions, and is included
in over 20 private and corporate
collections. Maureen lives in
Arlington, Va., and her studio is
located in Washington, D.C..
93
Class Agent: Jordan ONeill
(Jordan_ONeill@riggsbank.com)
Elizabeth Holley Darden is
working at the Nature Conservan-
cy in Arlington, Va., and is living
in McLean, Va.
Melissa Donovan is with the
corporate finance division at Walt
Disney after leaving Arthur
Andersen earlier this year. She also
does a comedy routine at several
Los Angeles nightclubs and was
recently on Hollywood Squares
where she won $2000!
John Judge and his wife, Jill,
have moved from Virgina to
Akron, Ohio. John is director of
strategic integration for FirstEn-
ergy, the nations 12th largest elec-
tric utility. On July 21, John and
Jill had their first child, Isabella
Hope.
Elizabeth Milly is now back in
the U.S. with Goldman Sachs,
working in the healthcare group
and eagerly awaiting their IPO.
Taylor Simmons resigned as
president of Simmons Associates
and accepted a position as senior
manager of market development
for Winstar in Tysons Corner, Va.
94
Class Agent: David Gee
(dgee@fr.ibm.com)
By the time you read this, we will be
out of school for five years. We should
be thinking about our ten-year
reunion any volunteers?
David & Michelle Gee moved to
Paris from Silicon Valley for the
next three years. David has taken
an international assignment with
IBM, which covers Europe, Mid-
dle East and Africa Headquarters.
It works something like this: you
get the call on January 3rd, 1999
in Calif. and youre at your new
desk in Paris on January 24th.
Their furniture is now very well
traveled, having taken six weeks to
arrive in Paris on a ship through
the Panama Canal. If anyone is
passing through Paris, please let
David know.
Laura Rodman was recently pro-
ALUMNI NOTES
moted to senior manager at Price-
waterhouseCoopers. She now gets
to work with Marty DeSilva
(G89), who many of you probably
remember as associate director of
student services. Lauras husband
Rick recently returned to KPMG
from Stamford Research Institute
Consulting. The couple bought
their neighbors house in George-
town and plan to put their current
home up for rent (hopefully to
McDonough MBAs!) in late
August. Laura must really be
working too hard since the only
person she sees is David Gold-
berg they work in the same
building!
Holly Fulgum has left her family
business to join her father-in-law
in the residential real estate devel-
opment business.
Sue Benveniste, bucking the
MBA trend, is still at Mars, her
first job after business school. Sue
is now a senior franchise manager
(a.k.a. senior brand manager)
on M&Ms. Shes having lots
of fun and good (tasty) perks.
The M&Ms Crispy launch was
her baby.
95
Class Agents:
Lisa Bell
Martina Ehlers
(mehlers@ACNielsen.com),
Kelly Reed
(kreedDC@aol.com),
Scott Shore
MBA

96 Creek Club in Vail, Colo. The Liza (Betts) Wallace is still with Stephen Gaull is working in pri-
wedding will take place in Wash- MCI WorldCom in partner mar- vatized infrastructure project
Class Agents:
ington, D.C.. A wedding date has keting, and she just had a baby development and finance for the
Leslie Blair
not been set. boy on February 11th. His name Bechtel Group and has been liv-
(leslie.blaire@spcorp.com),
is John Gordon Wallace III, but ing in So Paulo, Brazil, for the
Tim Doyle
Joseph Kane left U.S. Airways everyone calls him Jack. last two years. It is a big challenge
(tdoyle@washington.palisades.org),
after three years to join Micro- given the economic/financial
Julie Jaoudi (jaoudi@aol.com),
Strategy in a consulting role. He Dwight Gibbs is still the chief environment, yet lots of fun as
Jill Kianka (jillk@fool.com),
also ran in the Boston Marathon techie geek at The Motley Fool well. Stephen has seen Mariano
Miriana Martinova
on April 19th. (http://www.fool.com) where he de Beer a few times. He also
(martinom@lci.com)
runs a group of techies. He spends worked on a project with San
John and Aimee (Laman) Sut- much of his time ensuring that Francisco-based Georgetown
Michael Maier is director of
ton moved from Manchester, UK FoolMart (http://www.foolmart. MBA Ramiro Sanchez-Gutier-
logistics and planning for Rusch
to Hoboken, NJ, in April 1999. com) gets plenty of techie lovin rez, who spent several months in
International, a medical device
John was transferred by his current (read: trying to keep Jill Kianka So Paulo. If youre interested in
manufacturer located in Stuttgart,
company, Sutton International, to happy). visiting, please e-mail Stephen at:
Germany. He recently completed
develop business in the Americas. sgaull@ben.bechtel.com.
a successful SAP implementation
for this company. Michael can be They are looking forward to see- Ron Rosier is working at
ing everyone. PricewaterhouseCoopers in At this years Ultimate Four,
contacted directly via email at
Arlington, Va. Georgetown Legends Durga
Michael.Maier@rueschag.de.
Tammy Maddrey works as a Bobba, Ken Cruse, Clay Buck-
senior consultant for a work-life Between various business ven- ley, Bob Ryan,Andy Libuser
Tim Doyle is enjoying his first-
consulting firm called Managing tures, Constantine Potamianos (MBA95), Chris Tiscornia, Razi
year as a law student in George
Work & Family, Inc. The firm is busy pushing the limits of sleep Karim, and Mike Hawk won
Washingtons evening program.
helps companies understand the deprivation and general business two straight games before expiring
challenges their employees face in decorum. Constantine spends of sheer exhaustion in the third
Theresa Preslik and Sonny
balancing their work and family most of his time in New York as a game. The Georgetown Legends
Bhatia are engaged and recently
conflicts. They also help senior corporate and securities attorney were led on the court by Clay and
purchased a house in Gaithers-
executives understand the drastic with the law firm of Greenberg off-court by Durga and Kens
burg, MD.
economic repercussions of not Traurig. He also recently helped HUGE corporate contributions
focusing on the needs of their form the corporate finance group from Host Marriott and Merck,
Carole Banks joined the public
employees, particularly in this com- of Chicago-based McDonnell bringing in over $10,000 for the I
relations, issues management, and
petitive job market. Finally, they Inc., where he and the other prin- Have a Dream Foundation. They
event marketing firm of Barksdale
help companies implement family- cipals advise and raise financing look forward to making the Leg-
Ballard & Company (Vienna, Va.)
friendly programs that are catered for emerging companies, primari- ends the conduit for everyones
in February as corporate sponsor-
to their needs and constraints. ly in the technology sector. He contributions in the future.
ship manager. The largest event
With a 14-month old daughter continues to manage The
put on by the firm is the wine fes-
and a husband who travels 75% of Gryphon Group Ltd., as well as This past November, Joe Mohan
tival Vintage Virginia, which will
the time, Tammy is living the life his new company, Gryphon married Maria de Leon in
be held on June 5 & 6 this year in
about which she consults Telecommunications, Inc. Con- Buenos Aires. Over 20 of
Great Meadow, Va. In other
stantine would love to hear from Georgetown MBAs finest were in
developments, Carole was
friends in the New York area and attendance, partying till 7:30 a.m.
engaged to Anthony Russo, a sys-
would also enjoy speaking with at the reception, holding their
tems consultant with Noblestar
any alums who are involved in own, and doing our reputation
Systems, in March at the Game
emerging companies. E-mail him proud across the globe!
at: PotamianosC@gtlaw.com.

Spring / Summer 1999 27

 Alumni NOTES

97 In March, Phil Cefaratti, Scott Class graduation speaker, Simon Chris Davies works in Moscow

ALUMNI NOTES
Humphrey, Scott Williamson, Hitzig, and his wife, Gayle for ICN Pharmaceuticals as a
Class Agents:
Max Smith, Dan Smink, Todd Nathanson, have relocated back director for strategic marketing for
Andrea Alexander
Corley, Megan Mulvihill, to Toronto, Canada - their home- their eastern European operations.
(alexander.ah@pg.com),
Andrea Gothelf, Rosemary town. Simon is now working for
Jane Oyugi
Baisch, and Tom Javitch met in Dundee Funds. He and Gayle Luis Miguel Diaz-Llaneza is in
(Joyugi@dutts.com),
Phoenix for their 4th Annual were in D.C. in January, and they Mexico working for Booz-Allen
Megan Mulvihill
Georgetown MBA Fantasy Base- got together with former group- Hamilton. He and his wife Moni-
(memulvihill@leggmason.com),
ball draft. Rosemary is now living mates Chris Skelly, Molly ca had a baby girl, Natalia, in
Rochelle Cheng
in Portland, Ore., and is working Moosbrugger, Fernando Tur- December.
(Rcheng36@aol.com)
for Labtec, Inc. Phil is back in the mo and his wife, Sarah Luckam,
D.C. area; and Tom and his wife, and Megan Mulvihill. Chris has Mitchell Fenster works for The
Mollie Dougherty and Tanguy
Michelle, are enjoying their baby bought a house in D.C. and will Barents Group, the emerging
de Carbonnieres proudly wel-
daughter, Megan Cecilia Javitch, now be living in Georgetown, just markets consulting arm of
comed their son Jacques into the
who was born in July. a few blocks from campus. KPMG. His work includes valu-
world on December 27, 1998. He
weighed 8 lbs. 1 oz. and is a healthy, ing soon-to-be-privatized compa-
Andrea Gothelf and Meg Mul- Grace DeFries and her husband, nies in Mongolia.
wonderful addition to the family.
vihill have been travelling a lot. Stephen Aroesty, are the proud
They also went to New Orleans in parents of Margaret Anastasia, Carlos Fonseca works for Citi-
Kelly Taylor is manager of the
February for a mini-reunion with born March 26. group in their global management
specialized program recruiting and
Karri Ludwick, Tara Scalia, Kel- program. His assignments have
development at Deere & Compa-
ny (essentially the MBA recruiting
ly Brighton, and Isabel Mar- 98 landed him in Turkey, India and
ques. While she was there, Meg Class Agent: Brian Knox Brazil.
and development program). Itll
had dinner with Greg Adams (bnox@hess.com)
be an interesting change of pace
and his wife, Julie. Greg continues Chris Gergen started up his own
for her to go from schmoozing
to work for Entergy in their Marcio Avillez works in strategic company, TeachLink, a new edu-
with the companys units, dealers
finance department. planning for U.S. West in Denver, cation technology company that
and customers in developing mar-
kets like Latin America to Colorado. He reports that he and provides on-line teaching assis-
Continuing a tradition that began Doug Beeman have worked tance services to post-secondary
schmoozing with the executive
while students at Georgetown, together on a number of invigorat- students (www. Teachlink.com).
management team and top MBA
another trip is planned for Nags ing assignments. He is also writing a book on social
schools. Kellys address: K. L. Tay-
Head, N.C. Andrea Gothelf, entrepreneurship.
lor, Overseas Parts Marketing,
Meg Mulvihill, Rosemary Ali Bastani has completed his
Deere & Company, (309) 765-
Baisch, Tara Scalia, Kelly training with Goldman Sachs and Kris Hammargren has joined
4691, kt63763@deere.com.
Brighton, Karri Ludwick, Isabel has moved to San Francisco to Prentice Hall Direct in Paramus,
Marques, Rob McDonald, join the private client group at N.J., as associate marketing man-
Megan Mulvihill relocated with
Rusty Heffner, Andreas Suma, Goldman. He reports that he ager for business and professional
her company, investment bank
and Brian Mannle expect to misses living in New York but publications.
Legg Mason, to Chicago, where
spend Memorial Day weekend looks forward to the shorter hours
she has seen Matt Anderson
together in the Outer Banks. Once in California. Antwone Harris left his job with
and Laura Ferris. Meg and Laura
again, Jeremy Akel will be flying Bell Atlantic and is now working
will soon be neighbors, living
in from Dubai for the occasion. Peter Brown works in Washing- at home as a broker.
in the same apartment building
in Lincoln Park. ton, D.C. for Arthur Andersen in
their global telecommunications
practice.

28 The McDonough School of Business

 MBA
Kristen Hinrichs works as a
quantitative analyst for C&R
Research, a market research com-
pany based in Chicago.
Rene Houle is on assignment in
Hawaii working in Pricewater-
houseCoopers government con-
sulting practice. He notes that he
is now an expert on submarines
and surfing.
Nicole Kinnan works as a food
and beverage product manager for
Marriott International. Her job
responsibilities include analyzing
the financial performance and
strategic goals of all the restau-
rants within the Marriott family.
Kristen Klemperer has joined
the Central and Eastern European
department of the International
Finance Corporation (a section of
the World Bank).
Shalini Lal has joined Convene,
an on-line educational company,
in San Francisco as a product mar-
keting manager.
David McCarthy left his job with
PricewaterhouseCoopers to take a
position with GE Capital. He
notes that he enjoys living in Con-
necticut and wants many George-
town MBAs to come visit him.
Bill McDonald works for IBM
Corporations strategic consulting
practice. He keeps busy by
playing lots of golf and reports
that he recently broke 100 for the
first time.
Peter Mellen and Scott Mitic
are in the process of raising signif-
icant venture capital for their
start-up company, Visiq. They will
soon be launching their e-com-
merce web site for training (www.
Headlight.com).
Stacy L. Meyer, now a project
manager at CarrAmerica Develop-
ment, Inc., married Thomas (Tom-
my) L. Hazel on December 18,
1998. Tommy owns and runs a
patent research and services firm in
Arlington, Virginia. Tommy and
Stacy live in Fairfax County, Va.
John Olmstead will be entering
his chief residency year in general
surgery at Georgetown starting
this summer. He and his wife
Katie had a baby boy, Aidan
Maguire, in February.
Andrei Pogudin works for
Deutsche Bank in London. He
recently completed his training
program and now works in the
derivatives section for Deutsche
Bank.
Alan Randolph works for Ernst
& Young in their supply chain
management practice.
Patrick Rau works in the energy
marketing department for Amera-
da Hess Corporation, a leading,
fully-integrated oil company.
Rowshan Sagynbekova works
for AES Corporation in the
Republic of Georgia. She has been
involved in the debt restructuring
efforts of AES after a recent
acquisition.
OPERATING AT THE CENTER OF IT ALL
As an MBA student in Professor
Kasra Ferdows international
productions and operations
class, Michael Maier (MBA 96)
visited BMWs manufacturing
plant in South Carolina for a
case study he was writing on
the companys globalization
strategy with three classmates.
The experience came in handy
Michael Maier (MBA96)
just a few years later when he
recommended that his company,
medical device manufacturer Willy Rusch AG, move one of their produc-
tion units to Northern Ireland.
Most everything I learned in POM and global logistics I am now
applying on the job, says Maier.
As logistics manager for Rusch in Stuttgart, Germany, Maier over-
sees customer service, an automated warehouse, and a global dealer dis-
tribution network that supplies anesthesia, urology, and surgical equip-
ment to hospitals in Germany and around the world. Being in operations
exposes him to all aspects of the business. Logistics gives you a great
perspective on the sales, marketing, and manufacturing functions and
provides a gateway to the international markets, says Maier.
A German citizen with a background in mechanical engineering,
Maier found the MBA programs in Germany too theoretical. The expo-
sure to experiential learning as well as students from diverse back-
grounds attracted him to Georgetowns MBA program. Students appre-
ciate the international diversity and perspectives in class discussions and
group work. I dont think the international aspect of Georgetowns MBA
program can be stressed enough, he says.
With a long-term career goal of becoming a general manager in a
global company, Maier embodies the mission of the Georgetown MBA
program to produce students with a functional skill strength and a
strategic perspective of the global marketplace who are poised for gen-
eral management.
Spring / Summer 1999 29
 Alumni NOTES
Juan Trevino works as a brand
manager for Dos Equis Beer in
Mexico.
Jennifer Ullyot works for AOL
in their interactive marketing
group. She reports that Scott
Lush and Melissa Flemings
were married in February. Besides
Jen, Ana Martinez, Rob Dyer,
Mary Jo Lock, Yasemin Yuce-
lik, Marcio Avillez, Mary Sue
Farley, Heather Hunt, Sabrina
Cellarosi and David Evans
attended the wedding.
Jiahong Wu works for the invest-
ment-banking group of Donald-
son Lufkin Jennrette in the Hong
Kong office. He hopes many
Georgetown MBAs will come vis-
it him there.
In Memoriam
Gary Maher (MBA85),
a consultant with the
RONCO Group, an
international consulting
group, died on January 6,
1999 at his home in
Washington, D.C.
He had a heart attack.
Survivors include his wife
Maggie and his parents.
30 The McDonough School of Business
IEMBA
96
Class agent: Thom Arnsperger
(tarnsperge@aol.com)
Ben Cass reports that he has sub-
mitted his resignation to Pricewa-
terhouseCoopers consulting in
Florida, and will be taking a posi-
tion with a small technology firm
in Richmond, Va. According to
Ben, I believe this will be an
interesting and professionally
enriching career move. As most of
you know, Bethanne, Andy, and I
moved to Orlando, Fla. for 14
months for Bethannes job. We
have recently relocated to
Annapolis, MD and I will be
working in Richmond Monday
throughFriday.
Chip Christian was appointed
senior vice president for human
resources and public affairs at the
Rocco, Inc.s board of directors
meeting in March. Chip will be
reporting directly to the CEO,
and will have responsibility for the
following areas: human resources,
public relations, total quality
assurance, regulatory and environ-
mental compliance, and govern-
ment affairs.
Gloria Garcia reports that class-
mate Susan Bernhardt and her
husband Tam are the proud new
parents of their first baby, Elisa
Kiera Bernhardt Bayoumi. Elisa
was born on March 29th, and
weighed in at 7 lbs. All are doing
well.
As a representative for Swiss tele-
vision, Pietro Gerosa recently fin-
ished making a presentation in
Prague to the 700 members of
Promax Europe, the association of
media marketing executives,
regarding the links and opportuni-
ties between sponsorship and TV
programming. Pietros wife, Terri
Frick, continues to learn the pri-
vate banking business as a resident
vice president in the Lugano office
of Citibank Switzerland. Accord-
ing to Terri, Learning how to
work with and manage a private
banking client in Switzerland is an
interesting counterpoint to 13
years of working with American
department store customers at
Macys. Its a whole different
world! On the home front, the
Gerosas will be welcoming little
Gerosa number 2 who is due to
arrive in September.
Richard Vinci sent in the follow-
ing news: I have taken the posi-
tion of senior vice president and
private equity group head of Dai-
wa SB (Sumitomo Bank) Securi-
ties on Wall Street. Daiwa SB is
the largest investment bank in
Japan and one of the preeminent
financial institutions in the world.
I am focused on global pre-IPO
and M&A private equity opportu-
nities based in New York City,
London, Singapore, Hong Kong
and Tokyo. Our focus is on tele-
com, datacom, electronic com-
merce, Internet and software tech-
nology companies. Richards wife,
Jackie, has resigned her job in
Washington and we are finally
moving to the New York City area.
We are building a home in Pelham
Manor, Westchester County
ALUMNI NOTES
on Long Island Sound. We are
keeping our home in Northern
Virginia.
97
Class Agent: Lynn Miller
(mllemiller@aol.com)
Paula Coes family moved to
England this year. Although Paula
is still working for Fuller, Coe &
Associates, she has started teach-
ing classes through Embry-Riddle
Aeronautical University as well.
Nicholas Davidson writes that
after six month back in the UK,
the Davidson family is fully adjust-
ed to the damp and drizzle, but
still missing the Washington sun-
shine. Nicholas is back in the
Department of Trade and Industry
working on an interesting mixture
of telecommunications, broadcast-
ing and Internet policy, under the
title of head of infrastructure and
convergence policy. Nicholas says
he would be happy to hear from
any IEMBA alums via e-mail, or
to meet anyone passing through
London for a glass of warm beer.
98
Class Agent: Debbie Weil
(debbie@wordbiz.net)
Michele Franck is traveling and
working in exotic places. Based in
Munich, she enjoys weekends in
Switzerland. She also travels to
Turkmenistan, where she is
involved in a complicated financ-
ing project.
 IEMBA
Erik Gaull announced that he and
Karen Severy will marry on June
19th, followed by a two-month
honeymoon to Hawaii, Japan,
Bali, Vietnam, Cambodia, India,
Paris, Turkey, Greece, Italy, and
Morocco.
Dale Howell reports that he has
recently accepted a new position
within Raytheon as the director of
finance of the strategic systems
division of the company. This divi-
sion does about $1 billion in
annual sales. Dale reports that the
job is already quite challenging
and he expects it to remain so in
the foreseeable future.
John Justino announced that he
has accepted a new position with
Population Services International
(PSI). He writes: I will be taking
a new job with PSI as a program
manager/country representative
starting in late May. PSI, a non-
profit organization, is one of the
premier social marketing groups
in the world.
Maureen Lalor is enjoying
maternity leave with new baby,
Annie, and Jack, now 2. She will
soon be moving on from her busi-
ness development position with
CrossMedia.
After five years as vice president of
a mid-sized wireless telecommu-
nications consulting firm, Alan Li
has formed his own company,
Acumen Consulting LLC. This
new firm has already signed three
substantially sized contracts with
major financial institutions to pro-
vide executive level expertise in
complex loans deals to wireless
telecommunication companies.
Kamran Sistanizadeh was one
of three inventors of record for an
important patent for Bell Atlantic.
The patent stemmed from Bell
Atlantics pioneering work with
digital subscriber line (DSL) tech-
nology which makes it possible to
change the rate of a DSL trans-
mission on the fly. The enhanced
flexibility extends the effective
reach of the technology, increasing
the number of households that can
be provided a high-speed link. It
also expands the range of commu-
nications services that DSL can
support, such as accessing the
Internet and telecommuting.
Dennis Wilson wed Vanina
Debled on April 3, 1999, in
Alexandria. Va. Dennis profes-
sional life is also going well - he
recently returned from a business
trip to Melbourne, Canberra and
Sydney, Australia to call on
prospective clients for his law and
consulting practice.
Debbie Weil reports that shes
working at Network Solutions
(the dot com people) as a consul-
tant in the marketing department.
Debbie reports that its a lively
place, as competition opens up to
register dot com, dot net and dot
org, and that shes having a great
time - even getting used to the
drive out to Herndon, Va.
Spring / Summer 1999 31
 Georgetown...The Way it Was
W
as the School of
Business founded
in 1957 or 1958?
University archives
show that both
dates have merit. The business school
gradually evolved out of the School of For-
eign Service. Business courses were intro-
duced into the SFS curriculum as far back
as the 1930s. However, the School of Busi-
ness Administration was not launched
until the fall of 1957. But it was not until
the following spring of 1958 that the Uni-
versitys board of directors voted to insti-
tute the change formally.
The exact date of the business schools
founding may be open to interpretation,
but there is no disputing that Joseph
Sebes, S.J., played the most influential role
in the schools early history. A native of
Hungary, he left his home country at the
outbreak of World War II to serve the
Fr. Sebes as he appeared in an early
Hungarian passport photo.
32 The McDonough School of Business
Jesuit mission in China. After the war,
during which he was under house arrest of
the Japanese army in Peking, he returned
to Rome to pursue studies at Gregorian
University. The Communist takeover of
Hungary in 1956 led him to the United
States, where he pursued his interest in
China through a doctoral program at
Harvard University.
In 1964, a few years after he began
teaching at Georgetown, Fr. Sebes was
recruited by Father Edward Bunn, then
president of the University, to serve as act-
ing dean of the business school. Although Fr. Joseph Sebes, who served as acting dean
he protested that he was an unlikely person of the School of Business Administration, 196466.
for the job, Fr. Sebes ended up being a
strong advocate for the School at a time
when the existence of separate schools
within the university was being questioned.
Fr. Sebes turned around the fate of
the school and changed the thinking of
other Jesuit administrators, including Fr.
Bunn. He was very persuasive, a natural
salesman, said Othmar Winkler, professor
emeritus at the McDonough School of
Business.
In a speech celebrating the business
schools 25th anniversary, George Houston
(B 61), currently the president of Mount
St. Marys College, said that, ...if it were
not for the dogged determination of Fr.
Sebes, we might not be celebrating this
anniversary today. He noted that Fr. Sebes
was the first person to serve the school
directly as a representative on the Universi-
tys board of directors.
Although Fr. Sebes had to be per-
suaded to serve as dean of the business
school, it was he who ended up persuading
Fr. Bunn and the University that a separate
business school was worth preserving.
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