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Maryland Governor Robert L. Ehrlich, Jr., Visits Smith

Dean Howard Frank takes Maryland Governor Robert L. Ehrlich, Jr., on a tour of Van Munching Hall, home of the Robert H. Smith School of Business.

Maryland Governor Robert L. Ehrlich, Jr., visited the Smith School on Monday, February 21. Smith School Dean Howard Frank, Arjang Assad, senior associate dean and professor of management science, and Lemma Senbet, chair of the finance department and holder of the William E. Mayer Chair in Finance, led the tour through the Smith School’s Netcentricity Labs for finance, supply chain management, e-markets, and behavioral science. The governor was accompanied by Chip DiPaula, the State of Maryland’s secretary of budget and management, as well as several other staff members. After the tour Ehrlich spoke to a class of first-year MBA students.

Both Governor Ehrlich and Dean Frank said they hope greater partnerships will develop between the Smith School’s thought leaders and the state government.

In one of Smith’s two Netcentric Financial Market Laboratories Russ Wermers, associate professor of finance, described the technical capabilities of the labs as an integral part of the Smith School agenda. “We train students to use the technology they will find in their workplaces, and introduce them to the stresses they will encounter in their careers.”

“I admire the way the real world is being brought into your education,” the governor remarked to a class of first-year MBA students. The governor’s remarks focused on the state’s new budget model, which he described as outcomes-driven, using quantitative measures of performance for state-provided services. When he entered the office, Governor Ehrlich pointed out, he had to cope with a multi-billion dollar structural deficit. This year, he says, the state will end its budgeting cycle with a $690 million surplus. [Full Story & Video Highlights]

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Dr. Russell Ackoff Challenges The Conventional Business Education

On Wednesday, February 16, Smith welcomed Dr. Russell Ackoff, professor emeritus at the Wharton School of Business and an executive fellow at the Smith School.

In his discussion, Ackoff encouraged business schools to change their system of thinking. Ackoff believes that a transformation needs to take place in the teaching process in order to promote creativity. Students need more real life experiences in order to succeed in today’s business world, he said. “Nature and experience are not organized the way universities and colleges are into disciplines,” he said.

He challenged business schools, including the Smith School, “to think outside of the box.” He explained that you cannot make a difference and motivate talent if you’re stuck inside the box. His experiences have found that more students are hired for their experience than education.

“Dr. Ackoff’s experiences, innovative thinking and success as an educator for nearly 50 years serves as a case study of what works and what does not work in business education,” said Scott Koerwer, associate dean for executive education and marketing communications. “It was a great opportunity for all of us in the Smith community to ask ourselves ‘What is the future of business education?’ and ‘What is the role/responsibility of the Smith School?’”

Dr. Russell Ackoff is a professor emeritus at the Wharton School and executive fellow at the Smith School. Ackoff is chairman of INTERACT: The Institute for Interactive Management. Ackoff has written or co-authored 20 books and more than 200 articles for academic journals. He has a BS in architecture and PhD in the philosophy of science, both from the University of Pennsylvania.

▓ Nikia Andrews, Office of Marketing Communications

Roger Barnes Talks Ethics at Smith

If you had to risk your career, your safety, and your reputation to do the right thing, would you? What if you would be giving up a significant amount of money in the process? Then would you?

These questions were the core of Roger Barnes’ speech, on Thursday, February 17, 2005. Barnes, a 'whistleblower' for Fannie Mae, was the second in a speaker series on Business Ethics, sponsored by the Smith School of Business. After a career spanning prominent firms such as Deloitte & Touche, Freddie Mac, and most recently, Fannie Mae, Barnes found himself in a moral and ethical predicament, which would forever alter the course of his life and career. While working with Fannie Mae, Barnes began noticing questionable accounting practices that drastically misstated the corporate finances. Of course, the practices were subtle and explainable by management at the beginning. Yet, over time, Barnes felt a sense of unease with the answers he received and the practices he observed repeatedly. Raised with small town values, and instinctively knowing right from wrong, Barnes gathered information over time to confirm his instincts beyond a shadow of a doubt, took care to ensure his competence could not be questioned, and ultimately took on one of the largest corporations in the United States. Since Barnes’ testimony before Congress, Fannie Mae has been investigated by the SEC, the FBI and the Department of Justice for misconduct resulting in a shareholder loss of over $20B, restatement of financial statements since 2001, increased capital requirements, and resignations of the CEO, CFO, Controller, and multiple Senior Vice Presidents.

Barnes’ key message to the audience was simple to understand, though sometimes difficult to execute: You must start by asking yourself what you will and will not do for money. He explored the ethical and moral questions behind this statement, by stating there is no one definition of ethics and that it is the choice of each individual to act in an ethical manner. Self assessment and integrity, he stated, were the cornerstones of knowing right from wrong. Barnes also mentioned that standing up for what one believes is right can often be a lonely responsibility. One needs courage to be the lone voice saying something differently in an organization used to working a certain way, and one must be willing to bear the consequences of that voice being heard. The impact of Sarbanes-Oxley, he stated, could not be underestimated in changing the American corporate landscape. If a person is aware of wrongdoing and does nothing to stop it, that person can be held liable for criminal and civil misconduct. Openness to investors was more than just a code of conduct, and students should be proactive in understanding the code of conduct at different companies prior to joining an organization.

Barnes had the following takeaways for his audience of faculty and students:

• Establish your own personal values early on in your life
• Be knowledgeable about business culture and technology
• Exercise personal “due diligence” – make sure the job you do is so top notch that no one can accuse you of incompetence or being disgruntled
• Remember the integrity of the first person you see every day (YOU)

When asked about ways in which a company can recover from such a setback as Fannie Mae, Barnes offered the following:

• New senior management for a clean slate start
• New external auditors (Fannie Mae fired KPMG, its external auditors through this process
• Development and rigorous execution of ethics programs and training throughout the company (not just posters on the wall)
• Changes to the Board of Directors

Barnes made a lasting impression on his audience with his message. He took a preacher with him to Congress, offering the audience that without hope there is only despair. His parting comments on what to if faced with such a dilemma was to be safe, keep one’s family safe, do your homework, but know that you have to do the right thing. One has to get through self doubt and recognize that individual integrity truly does make a difference.

▓ Monisha Banerjee, MBA Candidate 2006, Smith Media Group

Smith School in the News

Results from this year’s National Technology Readiness Survey, produced by the Smith School’s Center for Excellence in Service and Rockbridge Associates, Inc., continued to make headlines. Roland Rust, director of the Center for Excellence in Service, appeared in a televised interview with the Anchorage NBC affiliate, KTUU (2/21). Results from the survey were also featured in a tech round-up from Dow Jones (2/16) and television and radio broadcasts that aired across the U.S. including: The Daily Buzz (syndicated television program 2/7), KOVR-TV (Sacramento CBS affiliate), KTVU-TV (San Francisco FOX affiliate), KCBS-AM (San Francisco CBS affiliate 2/3), KOA-AM (Colorado 2/3), WTOP (Washington DC 2/3), WLFL-TV (Raleigh WB affiliate 2/3) and WVTV-TV (Milwaukee WB affiliate 2/3). Peter Morici, professor of international business, was quoted as an economic, trade and steel industry expert in articles that appeared in Investor’s Business Daily (2/18, 2/23), Associated Press (2/14, 2/16, 2/22), The San Diego Union Tribune (2/23) and other leading business news outlets.

For more Smith School media highlights and links to articles, visit Smith School in the News.

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Upcoming Events

Women's Leadership Conference, Friday, March 4

In celebration of Women’s History Month, the Smith Association of Women MBAs (formerly known as the Graduate Women in Business or GWIB) is excited to announce their marquee event – the Women’s Leadership Conference. The event, which will be held on March 4, will bring together full-time and part-time students at Smith, as well as alumni and industry professionals from the D.C. area. The keynote address will be given by Cynthia Flanders ’82, MBA ’88 senior vice president, commercial market executive, Bank of America, and a member of the Smith Alumni Chapter’s Board of Directors. There will also be three discussion panels led by distinguished women from organizations such as Marriott, UBS, Discovery, the Calvert Foundation, Accenture, and many more. A networking lunch will follow, and the afternoon will also include a class led by Joyce Russell, professor of management and organization, on “Salary Negotiation Tips and Strategies for Women.”

Tickets for this exciting event are $5 and will be on sale from February 21 to March 1 in Van Munching Hall's Grand Atrium. The Smith Association of Women MBAs strongly encourages their female classmates to take advantage of this unique opportunity to meet other fabulous women and hear their success stories.

BioTech Conference with Wei-Wu He, Friday, March 11

Please join the Robert H. Smith School of Business’ Graduate BIO|PhARMA Business Association and the Dingman Center for Entrepreneurship for a day of discussion: Venturing into Biotechnology: Strategies for Successful Growth in Maryland

Dr. Wei-Wu He, general partner and co-founder of Emerging Technology Partners, will address students, faculty, and administrators for a very special networking event on Friday March 11, 2005 at 10 a.m. (Room 1528, Van Munching Hall). Two panel discussions will follow to discuss "Maryland resources" and "venture funding for biotechnology companies."

Please RSVP online by Tuesday, March 8: http://ee.rhsmith.umd.edu/ApplicationFiles/web/WebFrame.cfm?web_id=744

A reservation will be required to attend and seating is limited. A networking session with light refreshments will follow. Attire is business casual and there is no charge for this event. Please send an e-mail to Gabriela Tobal at gtobal@rhsmith.umd.edu with any questions.

Other upcoming events:

3/8/05 CFO Panel & Alumni Reception: http://www.rhsmith.umd.edu/alumni

4/29/05 Netcentricity Conference: http://www.rhsmith.umd.edu/netconference

4/30/05 Maryland Day

4/15 & 5/6 Next Faculty & Staff School Assemblies 1:30 p.m., Rouse Room, 1412 Van Munching Hall.

►Smith Calendar of Events

Technology@Smith

Wireless Computing in Van Munching Hall
Everything you need to know -- from purchasing a wireless access card to configuration -- can be found at: http://wireless.rhsmith.umd.edu. Guests visiting campus, who are sponsored by a faculty or staff member, can get wireless access through campus network operations. If you require access for a guest please send an e-mail to wireless@nts.umd.edu with the number of accounts required. In the e-mail please include the duration of access needed as well as contact information for verification. Be sure to request guest accounts at least four business days before you need them.

General Reminder About Classrooms & Labs
Our facilities have been equipped with state-of-the-art technology and security surveillance is present. In order to keep the attractive appearance and functionality of labs and classrooms, we appreciate your cooperation on the following:

• No food or drink is permitted in classrooms and labs. Please discard all food and drinks prior to entering these rooms. Staff members routinely check for food and drinks. Repeating offenses will be taken seriously and will result in the loss of access.
• Building Security is everyone’s responsibility. Please use your campus ID for access to secure areas and do not prop doors open. Report any suspicious behavior immediately to the Campus Police or to Faculty Services.]

New Smith School Screensavers & Wallpaper Available!
Smith School "Leaders for the Digital Economy" screensavers and desktop wallpaper images are now available for download at the Office of Marketing Communications Web site (along with PowerPoint presentation templates). Click on the link below and follow the instructions to install your new screensaver and wallpaper!
http://www.rhsmith.umd.edu/admin/comm/logos.html