Georgetown

Business FALL / WINTER 2000 volume 13 number 1

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

Taking Stock
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
John Mayo, Ph.D.
Editor
Elizabeth Shine g99
Contributing Writers
Tom Price
Susan Price
Elaine Ruggieri, APR
Designer
Nancy Van Meter
Photographer
Keith Tishken
Bob Llewellyn
Georgetown Business
welcomes inquiries, updates,
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
old north building
washington dc 20057

phone: 202-687-4080
www.msb.edu
 LETTER FROM THE DEAN

WELCOME
R egular readers of Georgetown Business should begin to note a pattern as we

describe the McDonough Schools performance and discuss our prospects for the future.

Throughout the past three issues, we have chronicled a series of changes designed to

place us firmly among the worlds elite academic business programs.

A leader can only reflect the accomplishments of those he leads, and in this issue we

reflect upon some early indications that we are moving in the right direction. On page 6,

Taking Stock reports on the progress of our MBA program, including its placement in

this years Business Week ranking of the nations top MBA programs. Credit for our

progress goes appropriately to the faculty who are the driving force behind our creative

and value-laden curriculum, to the staff who recruit, counsel, and direct a talented group

of MBAs, and to the students themselves, who believe in what we are doing and who

work so hard to fulfill our expectations.

While we are pleased with our progress, we must continue the momentum. Other perhaps

more valid indicators of our advancement include the emerging plans for our new facility

(page 16) and the scholarly achievements of our faculty. In this issue, you will learn about

real options, an alternative method of evaluating potential projects that is gaining

increased recognition by corporations. The McDonough School is one of the few business

schools in the U.S. to offer a course on real options.

These articles highlight the McDonough Schools developments. Let us hear yours, so we

can continue to keep our finger on the pulse of progress.

Christopher P. Puto, Ph.D.

Dean

CONTENTS

Inside Information . . . . . . . . . . . . . 2

Taking Stock . . . . . . . . . . . . . . . . . . . 6

Faculty Forum . . . . . . . . . . . . . . . . 10

Dividends . . . . . . . . . . . . . . . . . . . . 16

Alumni Notes . . . . . . . . . . . . . . . . . 21
1
Inside Information

McDonough School Adds New Joint Degrees in Physics Corporate Representation which the students presented
eorgetown Universitys graduate physics department is at MBA Recruiting Event themselves, Hoose says, not-

G joining with the McDonough School to create joint

degrees in physics and business.
Doubles
ore than 70 corpo-
ing that a lot of schools dont
let first years meet with
Beginning next fall, students can complete a joint masters
degree in physics and business administration in 33 months. A
joint Ph.D./MBA will take six-and-a-half years and require a 12-
M rate representatives
flocked to campus
for the Sept. 8 Careers Extrav-
employers, fearing the new
students havent yet absorbed
the proper etiquette for deal-
month apprenticeship in industry. The joint degree programs will aganza, up from 30 last year, ing with MBA recruiters. We
prepare students to meet the high demand for scientists who also making it the schools largest say you need to start from day
understand business, especially in new high-tech companies. Stu- recruiting event to date. one to plan your career,
dents taking conventional physics graduate degrees will take four Several improvements ini- Hoose says.
business school courses. tiated by Darnell Hoose, new Hoose also initiated a
We believe this new industrial physics program represents assistant dean of MBA career new panel that focused exclu-
the most significant overhaul of graduate physics training in the management, gave first-year sively on marketing in the
nation, and that our graduates will be better prepared for careers in students more opportunities to technology and telecommuni-
industry, says James Freericks, director of Georgetowns physics interact with corporate repre- cations industries. Representa-
graduate programs. sentatives so they get an under- tives from AOL, IBM, and
We wanted to focus a graduate program that would help stu- standing of what the worlds like Nextel participated.
dents make the transition from the academic world to the business for MBAs, Hoose says. Growing corporate
world. The effort to give individ- recognition of Georgetowns
Freericks says many graduates of physics programs say they ual students more visibility MBA program is reflected in
had trouble understanding how their company worked, the role with the corporate representa- last years recruiting statistics.
they played, how to work in the teams most industrial projects tives paid off. They were Ninety-six percent of the
require. Those are the extra skills weve designed into this pro- impressed with the substantial Class of 2000 received a job
gram. questions the first-years asked offer by graduation, up from
The degree programs will appeal not only to students inter- them, and the manner in 88 percent the previous year.
ested in traditional physics careers in systems engineering, indus-
trial science and technical management, but also to those who
want to pursue administrative positions in finance, marketing and
research, or entrepreneurial roles in high-tech start-ups.
The new physics and business program will be guided by an
industrial advisory board of business and education leaders. One of
the board members, William Graver, vice president of Science
Applications International Corp. in Northern Virginia, says
Industry needs more independent problem solvers, and the indus-
trial physicist is the obvious answer.

McDonough Hosts International Forum

David A. Walker, director, Capital Markets Research Center; the Honor-

able Mary Schapiro, president, NASD Regulation, Inc.; and Professor

Reena Aggarwal at the sixth annual Alternative Structures for Securities

Markets conference. Ms. Schapiro was the keynote speaker at the con-

ference on Georgetowns campus, September 2122, 2000.

2 The McDonough School of Business
 Leonsis, Gardner, The career fair features
to Address Tech 2001 representatives from over 100
Conference mid- to large-size technology
lans to turn the and new media companies,

P McDonough School
MBA annual technol-
ogy conference into a regional
tech event are underway, with
the addition of a career fair
and invitations extended to
students at 17 leading MBA
Going Global With the Job Search programs to participate.
whirlwind schedule of meetings with companies in We want to expand the
and venture capital and con-
sulting firms. Organizers
expect the combined summit
and career fair will attract up
to 500 students from leading
universities with technology-
based graduate programs.
There is a growing desire
by MBAs to work in the D.C.

A Munich, Germany, marked the first EuroTrek for

McDonough School MBA students Sept. 27-Oct. 2.
A dozen second-year MBA students from the Georgetown
conference because the Wash-
ington, D.C., area is second
only to Silicon Valley in its
area, and the tech industry has
a real need for skilled employ-
ees Szahun says. Were
campus, plus two studying in Italy this term through an exchange number of technology compa- providing a forum for them
program, flew to Munich and went immediately to their first cor- nies, says organizer Sandra to connect.
porate visit at Allianz Asset Management. Other stops during the Szahun (MBA 01). We want The summit will also
five-day trip included the offices of Deutsche Bank, Booz-Allen to showcase whats going on feature panels exploring cur-
Hamilton, Siemens and Hypo Vereinsbank. regionally and give students rent technology issues, such
EuroTrek 2000 was sponsored by the Georgetown MBA and area employers an oppor- as Internet policy, broadband
European Business Association, a graduate student club. The orga- tunity to interact. and marketing.
nizations mission is to provide students with career opportunities in Keynote speakers for the
Europe as well as to develop an alumni network there. More than Capital Technology Summit
40 percent of the schools MBA students come from countries out- (formerly Tech 2000), to be
side the United States, and 30 percent of those come from Europe. held Jan. 2627, 2001, are
EuroTrek Director Alexander Fuerst (MBA 01) calls the trip Tom Gardner, co-founder of
a total success, in terms of fostering good relationships with the The Motley Fool, a financial
companies. Fuerst, a German native, says the company representa- website, and Ted Leonsis
tives were impressed with the Georgetown students and want to (C77), president of AOL
participate in future recruitment. Some people on the trip already Interactive Properties Groups.
have job offers, Fuerst adds. And they asked us to send additional Companies represented
resumes of promising candidates who werent on the trip. include Network Solutions,
The invitations for companies to participate netted more than The Washington Post News-
the students had time to visit. The organizers had to pare a list of week Interactive, IBM and
25 firms down to five. The number of student participants was lim- American Management
ited, too, with only half the applicants selected. Students who could Systems.
speak at least some German and plan to work in Europe upon
graduation were given preference.
Because of the high student interest in EuroTrek and the suc-
cess of the first venture, Fuerst says more are planned, including one
in January in London.

Fall / Winter 2000 3

Inside Information
McDonough School Offers
First E-Commerce Seminar
he McDonough
T School launched its
first e-commerce
executive education program
this fall. The five-month cer-
tificate program is designed
to meet the needs of managers
of well-established businesses
seeking a presence in the
e-commerce world as well as
entrepreneurs in technology
start-up companies.
Michael P. Ryan, associate
professor of strategy and policy
and one of the programs orga-
nizers, says a recent speaker
showed the enrollees a list of
350 promising dot.com com-
panies that had failed in the
previous six months.
Often, they had good
ideas, but they were technol-
ogy driven, not management
driven, Ryan explains. There
must be analysis of why so
many people are failing. Our
thinking is the time is right for
a program based on manage-
ment principles.
The course is taught by
McDonough School faculty
as well as practitioners from
area technology-related
companies. One of the practi-
tioners, Damian Saccocio,
senior strategic analyst at
AOL Technologies, helped
design the program.
4 The McDonough School of Business
We have a locational
advantage, Ryan notes. The
greater Washington area is a
real center for e-commerce
technology and thinking.
Among the first group of
enrollees were managers from
Lucent Technologies, Bechtel,
Raython, and the U.S. Export-
Import Bank. Several of these
managers want to provide
technology services and con-
sulting to the federal govern-
ment. Ryan says this interest
will lead us to create new pro-
grams that specifically address
the business-to-government
sector.
Enrollees attend sessions
two Friday nights and two
Saturdays a month. Each
month covers a different topic
as it affects e-commerce:
strategy, marketing, intellec-
tual property, supply chain
management and customer
satisfaction. Enrollees can sign
up for the individual topics
or all five.
They also are invited to
join the Georgetown E-Com-
merce Network, a group of
faculty, practitioners and pre-
sent and former enrollees who
meet for Saturday morning
breakfasts to hear a speaker
and discuss the topic of the day.
Information on enrollment
can be found at www.msb.edu/
dept/execed/.
Motley Fool Co-Founder
Shares Entrepreneurial
Strategies with MBAs
I
n a knowledge-based economy,
valuing the intellectual capi-
tal employees provide and
emphasizing continual learning
are important components in
growing a business, Motley Fool
co-founder Tom Gardner told
MBAs in Professor Elaine
Romanellis entrepreneurship
seminar October 5.
Gardner, who started the Motley Fool personal finance web-
site with his brother David in 1993, stressed that a clear mission
statement at the outset is especially valuable, because it can attract
good personnel and foster the development of critical relation-
ships. Writing a strong mission statement, infusing the enterprise
with core values, knowing the market and developing a sound eco-
nomic game plan are also important, he said.
Entrepreneurs with flourishing businesses also understand
how to balance conflicting goals.
Balancing both company value and customer value is criti-
cal, said Gardner. Noting that a company should simplify services
for customers, he added, But, to sustainably please customers, an
entrepreneur must have a business that scales, an economic model
with merit. Too many Internet ventures have been built on cus-
tomer, but not company, value.
Gardner believes it is important for entrepreneurs to be pas-
sionate about their business. You have to be able to answer the
question Do I really love this? he said.
A successful entrepreneur may one day have to decide whether
to take the company public or remain private. Gardner noted that
sustainability is a critical ingredient before going public. Once a
company goes public, its leaders have a responsibility to shareholders
to expand that business, limitlessly. Most Internet companies have
not entered the public markets with that sense of duty, he said.
MBAs Calculate Costs of
Failed Searches for AOL
team of six
A McDonough School
MBAs is helping
America Online solve a vexing
problem. The first-and second-
year students are trying to
identify and quantify the costs
resulting from a failed search
on the Internet.
When your search does-
nt return what you expect it
to, you might go to a competi-
tor search engine or you might
buy a product from someone
else, says Chris Hergesell
(MBA 01), who is director of
consulting projects for the
Graduate Student Consulting
Club. The team members,
who were selected from more
than 30 applicants, hope to
complete their work by
Christmas.
Hergesell says that work-
ing with AOL provides a big
opportunity to develop a
tighter relationship with one
of the areas leading technol-
ogy companies.
Marketing professor Ken
Homa, who will be grading
the students end product for
course credit, says such con-
sulting projects not only teach
students about the content of
the problem they work on, but
are a terrific opportunity to
see inside the workings of a
company. The tasks tend to be
tough problems and as close to
the real work environment as
students can get. They receive
their direction from real man-
agers who will interrogate
them on their findings and ask
them to defend their solu-
tions, just like employees,
Homa adds.
Some consulting projects
have led to jobs. Homa cites
the example of Procter &
Gamble, which used George-
town students to produce a
major study for their new
business development group.
They wanted a bunch of
smart people to work on the
problem in a focused way,
Homa says. P&G later hired
some of the team members
upon their graduation. Other
students use their consulting
project experiences as a
springboard to talk to
recruiters about what theyve
accomplished, Homa adds.
McDonough School MBA Program Ranks 26th in
Business Week
he McDonough School of Business has joined the top tier
T in Business Weeks annual ranking of the nations best
MBA programs. McDonough ranked 26th in the maga-
zines top tier of 30 programs, which was published in September.
This years No. 1 ranking went to the University of Pennsylvanias
Wharton School.
Dean Christopher P. Puto called the showing a defining
moment in the schools history. It will serve as a motivator to
push our MBA program to higher levels, he said.
Business Week compiles its rankings primarily from surveys of
graduates and corporate recruiters, which it describes as the business
schools customers. This year, for the first time, it based 10 percent
of the rankings on what it called the schools intellectual capital
how often each schools faculty published in the most influential
scholarly and professional journals and how often their books
appeared on the Business Week bestseller list and were reviewed in
Business Week, The New York Times and The Wall Street Journal.
While such rankings are controversial, they do testify to
McDonoughs quality and they will help the school continue to
improve in the future, according to Puto and Associate Dean
Lawrence Abeln, director of graduate programs.
The Business Week ranking establishes our external credibility
and says the things we have been doing are viewed positively,
Puto said.
Abeln said high rankings have a significant impact on
prospective students, current students, corporate recruiters, alumni,
faculty and our ability to attract all of the above to our institution.
Fall / Winter 2000 5
 Taking Stock
ver the last two years, a series
O of initiatives to improve
the McDonough School
have been implemented.
What has been the payoff?
One professor describes the changes
as a virtuous circle of improvement that
is carrying the institution into the elite of
U.S. business schools.
Im not sure where one enters the cir-
cle, says Professor Joseph B. Mazzola,
chair of the graduate curriculum. He
points to Georgetowns implementation of
the revised MBA curriculum as a major
stimulant, along with the arrival of Dean
Christopher P. Puto and the $30-million
gift from the schools namesake, Robert
Emmett McDonough (F49)all of which
occurred in 1998.
Its a number of factors, says Maz-
zola. The combination of a high-quality
undergraduate program thats been in
place, together with the excellence of
Georgetown University, the revision in the
MBA curriculum, Mr. McDonoughs gen-
erous gift, a new dean, some strategic hires
on the faculty and staff, and it seems weve
obtained the critical mass necessary, Maz-
zola says.
6 The McDonough School of Business
Once the circle is spinning, he added,
the school advances on the momentum.
You get an improved curriculum,
which becomes of interest to potential
applicants, so the quality of the students
goes up, he says. The student body then
becomes more attractive to faculty, so were
able to retain good faculty and hire new
faculty from the top schools. With more
and better professors, youre able to offer
more and better courses. That then
improves the overall reputation of the
school, and potential applicants see that
and the quality of the pool of applicants
increases.
Evidence abounds that all this is hap-
pening, the most recent and prominent
being McDonoughs inclusion in Business
Weeks ranking of the top 30 U.S. MBA
programs in September. McDonoughs
placement at no. 26 followed top-30 rank-
ings earlier in the year by Financial Times
and U.S. News & World Report.
One professor describes the
changes as a virtuous circle
of improvement that is carrying
the institution into the elite
of U.S. business schools.
By Tom Price
The average starting salary for this
years McDonough MBA graduates was
$80,912, a seven percent increase from
1999. Total average compensation for the
class, including starting salary, signing
bonus and other guaranteed compensation,
was $117,000. Ninety-six percent had job
offers at graduation, up from 88 percent the
year before. The number of companies
recruiting on campus increased to 119 from
108 in 1999. And in its January 2000 rank-
ing of top ten-schools in each category, the
Financial Times ranked McDonough
MBAs as fourth in the salaries in finance
category and sixth in the salaries in infor-
mation technology category.
While applications for admission to
top MBA programs declined last year,
according to a New York Times report,
MBA applications to McDonough rose 50
percentto 2,875 this spring from 1,923 in
1999. Selectivity heightened, as 19 percent
of MBA applicants were admitted, com-
pared with 34 percent in 1999. The yield
rate also rose, with 44 percent of admitted
applicants enrolling, up from 35 percent
the year before. The enhanced quality of
the entering class was demonstrated in
higher average GMAT scores (655, up
from 641) and average GPAs (3.4, an
increase from 3.2).

When asked in a survey to rate their
overall satisfaction with the MBA program
on a 0-to-10 scale, this years graduates
awarded an average score of eight.
Dean Puto sees the recent achieve-
ments as identifying an institution thats
building on a rock-solid base.
One of the reasons I was attracted to
Georgetown was the tremendous opportu-
nity for rapid, sustainable progress, he says.
Georgetown University not only
enjoys an international reputation for aca-
demic excellence, Puto says, it also adheres
to the Jesuit tradition of teaching values as
well as skills, which helps McDonough to
distinguish itself from many other business
schools.
Were in the business of creating
highly-principled leaders of the global
economy, he says. Were teaching them
the tools that everyone learns about how to
maximize profit. Were adding a layer that
enables them to see more deeply what the
role of business is in the greater society.
Similarly, Washington is an ideal labo-
ratory for business studentsnot just because
it is the U.S. capital and the most important
political city in the world, but also because of
its proximity to Northern Virginias leading-
edge technology companies.
The new MBA curriculumdesigned
to give students practical experience in
globalism, teams, technology and other
essentials of 21st century businesswas
ready for implementation when Puto
arrived. Among its innovations are intense,
multi-disciplinary, reality-based learning
experienceseach a week long, with a
mandatory one-week residency overseas.
McDonoughs physical resources did-
nt match the turn-of-the-millennium cur-
riculum, however. Puto set a goal of mov-
ing the entire business school into a new
building by 2005. And he instituted a
8 The McDonough School of Business
quick temporary fix for the MBA pro-
gram, renovating a floor of the historic Car
Barn into a state-of-the-art facility in just
nine months.
Puto also appointed a faculty-staff
committee to conduct a nationwide search
for a full-time MBA director. The com-
mittee recommended Lawrence S. Abeln,
director of the MBA program at MITs
Sloan School of Management, who
became both a contributor to and evidence
of McDonoughs growing quality.
That a dean from a perennially top-
rated business school chose to come to
Georgetown is a compliment to
McDonoughas are the decisions of sev-
eral faculty to come to Georgetown from
highly-regarded institutions recently (see
pages 1819). And Abeln brought a valu-
able new perspective with him, Puto says.
Welcoming different perspectives is
important when you have an institution
thats been around for over 200 years,
Puto says. You have some extraordinarily
strong and wonderful traditions after 200
years. But the way you exist for another
200 years is by building in the ability to
continually broaden your vision.
Like Puto, Abeln says he was drawn
by McDonoughs potential and George-
towns Jesuit tradition.
McDonough can be agilea valuable
attribute in the modern business world
because it is relatively small and young,
Abeln says. Of almost any business school,
Georgetown had the most underutilized
brand name and there are great opportuni-
ties to be successful here, notes Abeln.
A business school should apply busi-
ness principles to its own operations,
Abeln believes. The institutions stake-
holdersstudents, faculty, staff, alumni,
the business communitymust feel
involved. Students and potential employers
Georgetown University not
only enjoys an international
reputation for academic
excellence, Puto says, it also
adheres to the Jesuit tradition
of teaching values as well as
skills, which helps McDonough
to distinguish itself from many
other business schools.
of graduates must be viewed as demanding
customers. Potential students must be sold
on the schools value to them.
Abeln has initiated surveys to measure
student opinion and meets regularly with
student government officers. An advisory
board supplies input from alumni and
business executives. To upgrade the quality
of incoming students, the school has
increased the pool of applicants by making
repeated recruiting pitches to potential
students who have indicated interest in
McDonough.
To upgrade academic life, the school
is deploying technology to minimize stu-
dent and faculty distractions that interfere
with education. Students now can change
schedules online rather than by standing in
line, for instance.
Students and faculty have noticed the
progress.
I think it is growing from being the
offspring of a great institution to becoming
one of the pillars of the institution, says
Tobin Richardson (MBA00), former pres-
ident of the MBA student government.
Richardson, whose class learned in
both the old and new MBA facilities, calls
the Car Barn terrific in different ways.
 Its a lot more comfortable, he says.
It provides a lot more functional room for
work to get done. The technology is state
of the art.
Jason Barker (MBA01), current MBA
student president, says he and his class-
mates feel progress all around us.
We see it in the curriculum, the facil-
ities, the atmosphere, the recruiting on
campus and the quality of the incoming
students as well, he says.
The school helps students achieve a
global perspective, which is a very good
thing given the global nature of business
today, Barker says. That occurs not just in
class but also through interaction among
the MBA students, about 40 percent of
whom come from more than 30 countries,
he says.
The new curriculum, new facilities
and growth all are important components
of the improvement, according to Profes-
sor Reena Aggarwal.
You need to have a sort of critical
mass, in terms of both students and fac-
ulty, she says. As faculty size has grown,
were offering lots of interesting courses to
the students and we have become a very
good research faculty also.
The international residencies are a
notable aspect of the new MBA curricu-
lum, she says, and the curriculum has
become much more flexible. As a result,
were able to address current business
issues far more rapidly.
Puto says he is extraordinarily
pleased, but hardly satisfied, with progress
at McDonough to datebecause we have
to keep moving.
In the media rankings, he says, were
in the lower end of that top tier, and we
want to be in the middle to upper range of
the top tier.
Were working to continue to
improve the quality of both the student
and faculty experience, Puto says.
A new undergraduate curriculum is
being implemented. The school will
expand its mid-career programs for execu-
tives and its cooperative programs with
other academic entities at Georgetown.
Puto is committing resources for studying
how to be a leader in the use of technol-
ogy to improve the quality of the educa-
tional experience.
The school is providing more support
for faculty development, both in research
and teaching. One initiative for facilitating
research will enable faculty to schedule
larger exclusive blocks of time for focusing
on research or teaching.
Puto wants to add about 15 full-time
faculty positions, including scholars with
expertise in e-commerce, information
Welcoming different
perspectives is important when
you have an institution thats
been around for over 200
years, Puto says. You have
some extraordinarily strong
and wonderful traditions
after 200 years. But the way
you exist for another 200 years
is by building in the ability
to continually broaden
your vision.
technology and entrepreneurship. The size
of the support staff also must be increased,
Puto says, noting that administrators have
been achieving improved results with less
staff. Compared to similarly ranked
schools in the 1999 U.S. News and World
Report MBA rankings, each McDonough
admissions staffer processed two to four-
and-a-half times more applications and
each placement staffer worked with up to
twice as many students.
Plans are being developed for the
school to move into a new, 200,000-
square-foot, $75-million, technologically-
sophisticated building on the main campus
within five years.
If you go to business schools around
the world these days, Aggarwal notes,
they all have state-of-the-art buildings.
Theyve done it, Dean Abeln
explains, to attract students, to attract fac-
ulty, and to incorporate technology.
Mazzola views the planned new
building as one more contributor to
McDonoughs virtuous circle. Already, the
new Car Barn facility gives the school a
psychological boost, he says.
It shows first hand the 21st century
strides this business school has taken, nes-
tled within this historic 200-year-old cam-
pus, Mazzola says. That contrast is a
sign, not of conflict, but of an institution
with a tremendous history that is surging
forward into the future.
Fall / Winter 2000 9
 FACULTY FORUM
Valuing Flexibility as Option Prices
I
n June 1998 electricity prices for
parts of the Midwest jumped from
an average of $40.00 to approxi-
mately $7000.00 per megawatt
hour. Our purpose here is not to
address the reasons for such a stratospheric
price shift. Rather, we will address how the
existence of managerial flexibility in the
face of uncertainty (e.g. price volatility) can
provide additional value to an investment
project.
Nonetheless, this price surge, in com-
bination with various industry specific fac-
tors including but not limited to deregula-
tion, non-storability, weather, and capital
intensity, have resulted in a consequential
increase in electricity price volatility.
While the majority of utility compa-
nies quiver at the very thought of price
volatility, Enron has transformed it to a
profitable opportunity. Enron capitalized
on price volatility by exercising the flexibil-
ity furnished through its peaker plant
option strategy.
In the summer of 1999, Enron
opened up three gas-fired electricity-gen-
erating facilities (peaker plants), licensed to
operate only 1200 hours annually.
Although peaker plants are much cheaper
to build, the cost of producing electricity at
these plants is, on an average basis, some
60% higher than the most efficient pro-
duction facilities in the industry.
10 The McDonough School of Business
Located strategically along its supply
chain (electric grids and gas pipelines),
peaker plants are fired up when electric-
ity prices peak out. In effect, peaker
plants supply needed electricity during
temporary shortages in a manner analo-
gous to a manufacturer drawing from its
inventory: a just-in-time supply.
What led Enron to realize that the
operating flexibility furnished through its
peaker plant option strategy is more
valuable than the cost of operating rela-
tively inefficient plants? The answer? The
real options approach to the analysis of
investment opportunities. A real options
approach is able to value the operating
flexibility that is furnished through man-
agerial alternatives. For Enron, its peaker
plants indeed serve as an option. They
provide the flexibility and not the obliga-
tion to produce electricity. Given this per-
spective, a real options approach simply
states that the true value of an investment
project is equal to the value of the project
without its real options plus the flexibility
premium (value) arising from the real
options associated with the project.
Companies in various industries are
increasingly adopting this approach in
valuing contingencies and opportunities
inherent in capital investment projects. In
the pharmaceutical industry, for instance,
alliances and joint ventures have now
become a common business practice due
to the risks involved. In the case of Merck
and Biogens joint venture to develop and
market a new asthma drug, the agreement
between the two companies reflected a
contingent contract based on development
and market uncertainties. The option-like
features of this contract could not have
been valued through traditional methods
and were effectively evaluated using a real
By Bardia Kamrad
options approach. (See M. Amram and N.
Kulatilaka, Harvard Business Review,
Jan./Feb. 1999, for further examples.)
The potential for real options analysis
to become a business breakthrough is
noteworthy as various industries, compa-
nies and consulting firms are embracing
the approach as a decision-making tool.
For example, Applied Decision Analysis,
LLC, a new, wholly-owned subsidiary of
PricewaterhouseCoopers (PWC), has
armed PWC with its needed real options
expertise since 1998.
Essentially, where a high degree of
uncertainty and managements strategic
response to changing market conditions
affect investment opportunities, real
options provide a robust investment valua-
tion framework when compared to the
more traditional tools. In most investment
projects, real options arise due to uncer-
tainty in costs, benefits and the opportu-
nity to favorably alter the projects course
contingent on future information. The
flexibility provided by these options can, in
some circumstances, result in significant
risk truncation.
Examples of real options are vast and
typically include: differing initial invest-
ment outlay (option to wait), altering
input rates, changing production rates
(volume flexibility), expanding or con-
tracting capacity (capacity flexibility),
varying the product mix (product flexibil-
ity), switching technologies (option to
switch), outsourcing or subcontracting
opportunities, temporarily shutting down,
and abandonment (for or without salvage
value).
 On the other hand, the strategic
aspect of real options tends to affect future
and follow-up investments. For instance,
in opting not to commit to a current pro-
ject, other future opportunities may be
blocked off or at least delayed. Indeed, the
value of retaining options to other future
projects is clearly embedded into the value
of these strategic options.
There are several advantages to using
a real options approach to evaluate invest-
ment opportunities in the face of uncer-
tainty. First, the methodology requires
minimal data forecasts. Specifically, the
valuation mechanism does not depend on
the forecast of prices into the future, nor
are risk-adjusted discount rates required.
Second, the approach is not static.
That is, the real options approach is able to
value the operating flexibility and strategic
options within an investment project. The
operating flexibility refers to the additional
project value that is derived from the fact
that management can revise operating and
tactical decisions in response to market
conditions. The strategic options associ-
ated with an investment project result from
its interdependence with other future and
follow-up investment opportunities.
Third, real options methodology not
only values an investment project, but also
can be used to determine value maximiz-
ing policies for managing the project.
Fourth, the real options approach can
distinguish between good risk and bad
risk. Specifically, the existence of manage-
rial options in any project or venture pro-
vides decisionmakers with the needed tools
to adapt its future actions such that the
upside potential can be improved (run
with the winners) while the downside
losses can be limited (cut your losses).
Viewed in this light, uncertainty, or
large volatility, can be advantageous since it
expands the upside potential without dam-
aging the downside (as protected by real
options). By ignoring the fact that man-
agerial decisions can result in truncating
risk of a project, traditional valuation mod-
els have typically penalized risky invest-
ment opportunities by assigning higher
discount rates to them. (Keeping All
Options Open, The Economist, August 14,
1999, for further elaboration.)
A major disadvantage of the real
options approach, however, results from the
immense mathematical and computational
complexity inherent in the structure of the
models that often makes it difficult for
managers to grasp. Also, the approach can-
not be used to solve all classes of invest-
ment problems. Perhaps, its best applica-
tions occur in situations where the major
sources of uncertainty associated with the
future cash flows of an investment oppor-
tunity can be traced back to two or three
primary sources. Yet, given the state of the
art in computing, these shortcomings are
diminishing with the passage of time.
Regardless, the undeniable popularity of
the approach is a tribute to its potential.
Professor Bardia Kamrads
research in real options has
been published in a variety
of academic journals. The
McDonough School is one of
the few business schools in
the U.S. to offer a course on
real options, which Professor Kamrad teaches.
Fall / Winter 2000 11
 RESEARCH AND ACTIVITES
Faculty
Associate Professor Reena Aggarwals
Price Discovery in Initial Public Offer-
ings and Role of the Lead Underwriter,
co-authored with Pat Conroy (Foliofn)
appears in the December 2000 issue of
Journal of Finance. She collaborated with
Assistant Professor Sandeep Dahiya on
Capital Formation and the Internet,
published in the Journal of Applied Corpo-
rate Finance, Spring 2000. Aggarwal pre-
sented her paper, Allocations of Initial
Public Offerings and Flipping Activity, at
the Securities and Exchange Commission
in October 2000. In July 2000, at the invi-
tation of the Peruvian Minister of Finance,
she presented strategies for Peruvian capi-
tal markets in Lima.
Professor Alan Andreasans Social Mar-
keting Institute hosted the second Non-
profit Managers Summit conference in
Atlanta, in conjunction with the American
Cancer Society, in November. He also
hosted a week-long workshop on social
marketing in Africa at the University of
Cape Towns School of Business Novem-
ber 13-17. Participants completed first
drafts of 23 cases, which will be the basis
for the first case-study text on social mar-
keting in the developing world.
Associate Professor Robert Bies presented
Procedural Justice and Interactional Jus-
tice: Different or Equivalent Constructs?
written with Ramona Bobacel (University
of Waterloo, Canada) at the annual meet-
ing of the Academy of Management in
August 2000.
Correlates of Intellectual Property Viola-
tion by Associate Professors Jose Luis
Guerrero Cusumano and Ilkka Ronkainen
will appear in Multinational Business
Review, Spring 2001. Guerreros article,
East Meets West: Weaving the Threads
12 The McDonough School of Business
of Deming, da Vinci and the Tao Te
Ching, co-authored with Douglas A.
Hensler (University of Colorado at Boul-
der) and Rick L. Edgeman (Colorado
State) appeared in Total Quality Manage-
ment in July 2000. In November 2000, he
was the keynote speaker at the Interna-
tional Conference in E-Commerce at the
University of Rio de Janeiro.
Assistant Professor Sandeep Dahiya pre-
sented The Dynamics of Debtor-in-Pos-
session Financing: Bankruptcy Resolution
and the Role of Prior Lenders, co-
authored with John Kose (Stern School of
Business, New York University), Manju
Puri (Graduate School of Business, Stan-
ford University), and Gabriel Ramirez
(School of Business, Virginia Common-
wealth University) at five conferences in
2000, including the Changing Financial
Industry Structure and Regulators confer-
ence at the Federal Reserve Bank of
Chicago, May 2000.
Associate Professor Willis Emmons book,
The Evolving Bargain: Strategic Implications
of Deregulation and Privatization, was pub-
lished in November 2000, and provides an
in-depth look at the impact of deregula-
tion and privatization on managers strate-
gic agendas in global industries.
Visiting Professor Susan Heckler will co-
chair the national conference of the Soci-
ety of Consumer Psychology with Stewart
Shapiro (University of Delaware) in Ari-
zona in February 2001.
Instructor Jeffrey Macher published
Organizational Learning in Economics,
with C.S. Boerner and D.T. Teece (both at
the Hass School of Business, University of
California, Berkeley) in the Handbook of
Organizational Learning and Knowledge.
His analysis of Review of Capital for Our
Time: The Economic, Legal and Management
Challenge of Intellectual Capital, appeared
in the Journal of Economic Literature in
September 2000.
Professor Marcia Micelis paper Benefit
Satisfaction, with P.W. Mulvey (North
Carolina State University) and C.
Dawkins (Ashland University) was pre-
sented in November 2000 at the annual
meeting of the Southern Management
Association.
Assistant Professor Sandra J. Milbergs
paper, Brand Extension Versus New
Brands, Attitudes Versus Choice: Experi-
mental Evidence for Both Theory and
Practice, co-authored with Michael S.
McCarthy (Richard T. Farmer School of
Business, Miami University, and Timothy
B. Heath (Katz Graduate School of Busi-
ness, University of Pittsburgh) will be pub-
lished in a forthcoming issue of Marketing
Letters. She has published the following
articles: Asymmetric Competition in
Choice and the Leveraging of Competi-
tive Disadvantages, co-authored with
Timothy B. Heath, Gangseog Rya (Katz
Graduate School of Business, University of
Pittsburgh), Subimal Chatterjee (Bing-
hamton University, NY), Michael S.
McCarthy, David L. Mothersbaugh (Uni-
versity of Alabama) and Gary J. Gaeth
(University of Iowa) is published in the
December 2000 issue of the Journal of
Consumer Research; Information Privacy:
Corporate Management and National
Regulation in Organization Science co-
authored with H. Jeff Smith (Babcock
Graduate School of Management, Wake
Forest University) and Sandra J. Burke
(University of Sydney, Australia) vol. 11
(2000) of Organization Science; and The
Differential Processing in Price in Gains
and Losses: The Effects of Frame and
Need for Cognition, co-authored with
Subimal Chatterjee, Timothy B. Heath,
and Karen R. France (School of Business,
University of West Virginia) appears in
Journal of Behavioral Decision Making.
Assistant Professor Marlene Morris pre-
sented The Effect of Individual Differ-
ences in Consumer Trust on Internet Mar-
keters and chaired the session Consumer
Trust in an Internet Environment at the
Association for Consumer Research Con-
ference in October 2000.
Professor J. Keith Ord published Eco-
nomic Process Control Under Uncer-
tainty, with Felicien Kanyamibwa (Pru-
dential Insurance Company of America),
in volume 9, 2000 Production and Opera-
tions Management. In November, he pub-
lished Automated Neural Network Meth-
ods for Forecasting, in International
Journal of Forecasting with S. Balkin (Ernst
& Young). He presented Guidelines or
Roadblocks? at the Making Statistics
More Effective in Schools of Business
(MSMESB) conference in June 2000. At
the June 2000 International Symposium
on Forecasting in Portugal, he co-pre-
sented with S. Balkin, A Structural Mod-
eling Approach to Assessing the Impact of
Speed Limit Increases on Fatal Interstate
Crashes, and also presented Forecasting
for Inventory Control with Exponential
Smoothing, co-authored with A. B.
Koehler (Miami University of Ohio) and
R. D. Snyder (Monash University, Aus-
tralia). He will assume the chair of the
American Statistical Associations Business
and Economic Statistics section in 2002.
Professors N. Lamar Reinsch and Annette
N. Shelbys paper Persuasion Strategies of
Nonprofessional Advocates: A Study of
Letters to a Senator, has received the
2001 Irwin Distinguished Paper Award
from the Southwest Federation of Admin-
istrative Disciplines.
Assistant Professor Glen M. Schmidt pub-
lished The Impact of an Integrated Mar-
keting and Manufacturing Innovation,
co-authored with Evan L. Porteus (Stan-
ford Business School) in the fall 2000 issue
of Manufacturing and Service Operations
Management. Schmidt and Porteus also
collaborated on Sustaining Technology
Leadership Can Require Both Cost Com-
petence and Innovative Competence,
published in the winter 2000 issue of
Manufacturing and Service Operations
Management. Schmidt presented How
Paranoid Should You Be? Innovative
Competence and Cost Competence Levels
Required to Insure Technology Leader-
ship, at the May 2000 Institute for Oper-
ations Research and Management Science
meeting and The Impact of an Integrated
Marketing and Manufacturing Innova-
tion at the June 2000 Manufacturing and
Service Operations Management meeting.
Professor Edward Soule published
Assessing the Precautionary Principle in
the October 2000 issue of Public Affairs
Quarterly, and presented this paper at the
Conference on Biotechnology and the
Precautionary Principle at Harvards
Kennedy School of Government in
September 2000.
Professor Michael E. Statens study, The
Value of Comprehensive Credit Report-
ing: Lessons for the U.S. Experience (with
John M. Barron, Krannert School of Man-
agement, Purdue University) was cited in
the September 2000 issue of National Jour-
nal. The article explored the economic cost
of safeguarding privacy.
Assistant Professor Catherine H. Tinsleys
paper Intervening Fairly in Disputes
Amongst Nationally-Different Employ-
ees-Is This Possible? co-authored with
Debra L. Shapiro (Kenan-Flagler Business
School, University of North Carolina) has
been accepted for publication in a forth-
coming issue of Research in Social Issues in
Management. Psychological Normative
Contracts of Work Group Members in the
U.S. and Hong Kong, co-authored with
Cynthia Lee (Northeastern University in
Boston) and Xhou Chen (Hong Kong
University), was published in International
Psychological Contracts. Her article, Man-
aging Workplace Conflict in the U.S. and
Hong Kong, co-authored with Jeanne M.
Brett (Kellogg Graduate School of Man-
agement, Northwestern University), will
appear in an upcoming issue of Organiza-
tional Behavioral Human Decision Processes.
Assistant Professor Jeanine Turners
Developing an Optimal Match Within
Online Communities: An Exploration of
CMC Support Communities and Tradi-
tional Support, will appear in the fall
2001 edition of Journal of Communication.
Her book chapter, Telemedicine: Expand-
ing Healthcare Into Virtual Environ-
ments, will be published in the Handbook
of Healthcare Communication in 2001. In
2000, Turner also published the book
chapter, Generating the Virtual Office
Visit, in Managing Healthcare Information
Systems with Web-Enabled Technologies. The
MITs Sloan School of Management
invited her to Boston to present her
research presentation, Becoming
Telecompetent: Exploring the Phases of
Virtual Organization Development in
October 2000. At the 2000 annual confer-
ence of the Academy of Management,
Turner presented her paper, Communica-
tive Implications of Telemedicine on the
Doctor and Patient Encounter.
Assistant Professors Rohan Williamson
and Lee Pinkowitz won the Jensen Best
Paper Prize for 1999 in the Journal of
Financial Economics for their paper, The
Determinants and Implications of Corpo-
rate Cash Holdings. Their second paper,
Bank Power and Cash Holdings: Evi-
dence from Japan, will be forthcoming in
the Review of Financial Studies.
Assistant Professor Bennet A. Zelner will
publish The Institutional Environment
for Telecommunications Investment, co-
authored with Witold J. Heinsz (Wharton
School of Business, University of Pennsyl-
vania), in the spring 2001 issue of Journal
of Economics & Management Strategy.
Fall / Winter 2000 13
 Honorable Mention
MCDONOUGH STUDENT SCHOLARSHIPS AND AWARDS
Venture Capitalists
Challenge MBAs For
Winning Plans
E
ight venture capital-
ists and CEOs of
leading area start-ups
converged on Georgetowns
campus Oct. 1920 to judge
the MSB Challenge, a compe-
tition among first-year MBAs
to present a business plan for a
dot.com enterprise.
A joint course project of
the Organizational Behavior
and Strategic Management
faculties, the MSB Challenge
involved 250 Georgetown
MBA candidates divided into
32 teams. The business plans
covered both the external
environmentsuch as poten-
tial size of the market, key
success factors, competition
and internal issues, including
what capabilities and resources
the e-business would need.
Participants in the MSB Challenge
(l to r) Brenda Kissane, Bor-Weei Yang,
Aaron Bearce, Ryan De Leon,
Pia Cyrus Vachha; (second row) Juan
Pablo Crane, Janice Del Aguila.
All Class of 2002.
14 The McDonough School of Business
One judge told the stu-
dents that successful e-business
entrepreneurs sometimes write
20 to 30 business plans before
coming up with a winner.
We want our students to
be creating business ideas and
looking at business from all
different angles, says Profes-
sor Robert Bies, one of the
faculty coordinators of the
MSB Challenge. Too often,
people get into a silo mental-
ity. They say its an account-
ing problem or a people prob-
lem or a strategy problem.
But a business issue
encompasses all of these, Bies
explains. Students confirmed
they used knowledge from all
their core courses to develop
their plans, not just the two
for which the project was
required. Other faculty made
their content more relevant
to the students projects, Bies
says.
The winning team
consisted of first years Wyatt
Crosswhite, Randall Davis,
Jennifer Folsom, Ranjan
Hullengalle, Michael Haley,
Tee Pneh, Jeremy Seiferth
and Omar Tapang. They pro-
posed a company called
NetLifeManager.com, which
would connect several differ-
ent platformsPCs, wireless
phones, and so forthso users
could keep track of their
appointments and other infor-
mation from several sources.
Five MBAs Garner Texaco
Scholarships
ive second-year MBA
F students have been
named the second
annual Texaco/McDonough
School of Business scholars.
Sadri Ben Youssef, Edwin
Tockman, Jason Kuuskraa,
Renato Beltran and Teseo
Bergoglio will each receive a
$3,000 scholarship. Winners
must have majored as under-
graduates in engineering,
computer science, geo-sci-
ences or accounting/finance
and have a minimum 3.5
grade point average.
Andersen Consulting
Awards Two MBA
Scholarships
A
ndersen Consulting
Endowed Scholar-
ships have been
awarded to John Pribenow
(MBA01) and Christopher
Chazin (MBA01), who
receive $500 each in scholar-
ships. The awards recognize
academic excellence and inter-
est in consulting.
Pribenow, a former Army
officer, is concentrating his
studies on strategy and
finance. I had no business
education prior to coming
here, Pribenow says, and
came to Georgetown to pre-
pare to enter the private sector
work force.
Chazin is on the board of
the InterAmerican Business
Association, a graduate stu-
dent club, and worked for
Dow Jones newswires prior to
enrolling in the MBA pro-
gram.
My interest is in the
telecommunication industry,
Chazin says. He plans to seek
positions in strategic planning
or business development.
Both winners served
internships last summer at
PricewaterhouseCoopers.
MSB Challenge Participants include (l to r) Hyung Choi, Marlene Devotto, Jason Claire, Elizabeth Maurer, Ates Celep, Michele Konrad, Ryan Connors. All Class of 2002.

Fall / Winter 2000 15

 Dividends
G
eorgetown Universitys Board of Directors has
voted to extend the Third Century Capital
Campaign until June 2003. The campaign
extension allows the McDonough School of
Business to further focus on fundraising for a
new business school facility. Fundraising for this facility has been
a part of the campaign since its inception in 1996, and to date
$20.8 million has been raised.
A new, state-of-the-art facility is essential to advance the
goal of becoming a world-class business school. In addition to
providing the physical infrastructure needed for first-rate pro-
grams at every level of business education, this 200,000 square-
foot facility will make it possible for the McDonough School to
bring all of its programs under one roof for the first time in the
history of the School.
The new facility will be constructed at the heart of George-
town campus, signaling the Schools key role in the Universitys
academic mission. The cost of the facility is estimated to be
between $60 million and $75 million. The new facility will
house the undergraduate, MBA, IEMBA, and non-degree exec-
utive education programs, and feature state-of-the-art class-
rooms, increased and improved career services offices and inter-
view rooms, and high-quality space for student services and the
Schools research centers.
A critical component to all levels of business education
today is the integration of technology in the classroom. The
McDonough School plans to provide the best possible technol-
ogy to enhance the academic experience. This new building is
also planned to rival the facilities at peer institutions, as more
prospective students report facilities to be a factor when deter-
mining what top business school to attend.
Following is a proposed timeline for planning, fund-raising
and completion of the new facility. Naming opportunities for
the new facility will be formally developed in early 2001. To
make contributions to the new building, or to learn more about
the new facility plans, please contact the McDonough School of
Business development office at (202) 687-0179.
16 The McDonough School of Business
Proposed Timeline for New McDonough School Facility
The assumption is that 75 percent of the $60$75 million
fundraising goal, or $42.3$56.3 million, will be committed by
October 2001 in order for ground-breaking to occur and con-
struction to proceed in January 2003.
November 2000: Presentation of initial renderings to Major
Gifts Committee and Board of Advisors. Beginning of increased
development efforts to ensure that all necessary funding will be
in place by the time the University Board of Directors approval
is sought to begin construction.
December 2000: Initiate process for internal project approval
through Georgetowns Capital Planning Committee and Execu-
tive Cabinet.
January 2001: Architectural programming and design proposal
to be submitted by Robert A.M. Stern Architects.
May 2001: After completing the internal approval process,
seek Board of Directors approval to begin official design devel-
opment, schematic design and construction documents (one
year). During this year, complete all zoning requirements and
end with a completed bidding process resulting in a guaranteed
maximum price.
May 2002: The McDonough School of Business announces that
the fundraising required to finance the building is substantially
completed. Board of Directors approval for construction is
sought (assuming that the fundraising is significantly complete).
Bid is approved and ground-breaking is scheduled (twenty-four
to thirty-month construction period).
November 2002: Site work begins (thirty-month construction
period).
January 2003: Construction on new facility begins.
January 2005: Building is scheduled for completion and some
programs begin moving into the facility.
September 2005: The building is fully occupied and functioning
as the new home of the McDonough School of Business.
Fall / Winter 2000 17
 Faculty NEWS

New Professor Probes Citizens can pressure gov-

the Politics of Business ernments to re-regulate dereg-
Regulation ulated industries if they dont
rivatization and dereg- like the way the industries per-

P ulation arent distinct

events that occur once
and stay set for all time.
Instead, they are living rela-
tionships between businesses
and governments that are in
constant states of evolution.
Business executives who fail to
recognize this can suffer frus-
tration and diminished success.
So states Associate Pro-
fessor William M. (Willis)
Emmons in his new book, The
form, Emmons explained. Pre-
viously unregulated industries
can come under government
scrutiny if markets change, as
Microsoft has learned, he
added.
Corporate executives must
recognize that the ultimate
source of regulation is not a
power-hungry government
bureaucrat but the broader
societyconsumers, competi-
tors and would-be competi- Associate Professor Willis Emmons

Evolving Bargain: Strategic tors who become concerned

Implications of Deregulation and
Privatization, published by
Harvard Business School Press
in November 2000.
I think a number of folks
these days see endless opportu-
nity from the changed role of
government in deregulation
and privatization, Emmons
said.
To an extent, its true.
But what many people dont
fully appreciate is how signifi-
cant the ongoing role of gov-
ernment is. Companies need to
have an understanding of the
ongoing political dynamics.
about concentrated private
control of such essential goods
and services as energy, water,
health care and now computer
operating systems.
Emmons, whose research
focuses on international politi-
cal economy and the eco-
nomics and politics of business
regulation, interviewed nearly
200 corporate and government
officials around the world
while preparing the book. He
wanted it to have global scope
and to be accessible and of
practical value to decision-
makers in business and gov-
ernment.
Emmons came to
McDonough in January after
spending his previous aca-
demic career at Harvard. He
earned his B.A., MBA and
Ph.D. in business economics
there, then taught at Harvard
Business School, where he
attained the rank of associate
professor.
At McDonough, he
teaches strategy management,
international business and the
strategic implications of
deregulation and privatization.
A primary attraction of
McDonough, Emmons
explained, is the opportunity
to make an impact. After
Harvard, its exciting to come
to a younger school, he said.
The atmosphere is a bit more
entrepreneurial. You can make
a difference here.

18 The McDonough School of Business

High-tech Research and
Tough Love Teaching
Style Define New
McDonough Professor
ntegrated companies are
I more effective than spe-
cialized firms when work-
ing at the leading edge of
technology, Assistant Professor
Jeffrey T. Macher discovered
during his study of innovation,
organization and performance
in the global semiconductor
industry. The opposite is true
after industry standards
become established, however.
Integration trumps spe-
cialization at the cutting edge
because its very difficult for
two parties that are separate to
communicate about issues at
the technology frontier,
Macher said. Its much better
to be integrated because the
exchange of ideas occurs much
easier and you can more
quickly understand the prob-
lems that exist on one side or
the other within the single
forum.
After standardization,
the design engineer (in one
company) can design a chip to
the standard, and the manu-
facturing engineer (in another
firm) can design the produc-
tion line to the same stan-
dard, Macher said. This is
advantageous because of the
economies of specialization in
the firm that does one thing
and does it well, he explained.
Macher conducted the
research for his dissertation at
the University of California at
Berkeleys Haas School of
Business, where he will receive
Assistant Professor Jeffrey Macher
his Ph.D. this year. His
research focus continues to be
on high-tech industries, par-
ticularly semiconductors,
biotechnology and pharma- Macher now teaches
ceuticals. Currently, with courses on microeconomics
scholars from Berkeley and and strategy to undergradu-
the University of Texas, he is ates and MBA students at
investigating the economics of McDonough.
the semiconductor industry in He describes his teaching
the 21st century. style as tough love.
Macher earned a bachelor I tell them right away
of science in engineering at that I will give you 75 minutes
the University of Michigan of my best effort and in turn I
and became a software engi- expect 75 minutes of you, he
neer at Motorola. He then said. I work extremely hard
earned his MBA at Dart- for my students, and I expect
mouths Tuck School of Busi- the same in return.
ness Administration. His
engineering education, his
employment at Motorola,
Berkeleys location near Sili-
con Valley and its center for
the study of the semiconduc-
tor industry made semicon-
ductors a likely area of interest
for him, he said.
Fall / Winter 2000 19
 In the Media
I dont believe the income statement until
I see the cash-flow statement, said Profes-
sor Patricia Fairfield in a November 29,
2000 feature on corporate cash-flow in the
In the Money Dow Jones Newswires
column.
Leadership in part is a set of skillsyour
ability to prioritize, your ability to inspire,
your ability to build common ground. You
can teach those kinds of skills, said Pro-
fessor Bob Bies in Carnegie-Mellon
Broadening Instruction To Create Better-
Rounded Students (Bill Schackner) in the
November 12, 2000 issue of the Pittsburgh
Post-Gazette.
Georgetown McDonough School alumnae
Tracy Lloyd-McRae (MBA00) was fea-
tured in a roundtable discussion on the
impact of business school rankings in the
November 2000 issue of MBA Jungle.
Georgetown McDonough School student
Dan Goldblum (MBA01) commented on
Internet radio in the October 23, 2000
article Web Radio Offers Listeners a
Wide Range of Alternative Sites in the
Wall Street Journal.
20 The McDonough School of Business
Professor Jim Angel warned that the Mid- In the September 1, 2000 Business Wire
dle East tensions could put an end to the article ExecCard Teams with Georgetown
bull market on its 10th anniversary in MBA for Record Year, Associate Dean
Smartmoney.com Oil Crisis 2000 and Director of Graduate Business Pro-
(Rebecca Thomas) October 13, 2000. grams, Larry Abeln noted that the use of
multimedia presented an opportunity for
My intuition is that over time there will
us as an institution to better project some
be many more stock splits, reducing the
of our unique characteristics of the
average share price dramatically, but it will
Georgetown MBA experience and culture.
probably take 10 or 20 more years to get
The distribution of the card to the poten-
there, predicted Professor Jim Angel in
tial candidates had a very positive impact
the October 3, 2000 issue of The Wall
on our applications.
Street Journals Getting Going: The Pros
and Cons of Doing the Splits ( Jonathan Deregulation and privatization were sold
Clements). implicitly on the assumption that every-
body can win from free markets, but Im
Professor Jose-Luis Guerrero Cusumano
hard pressed to find an example in the real
appeared on The Newshour with Jim
world where that has happened, said Pro-
Lehrer on September 22, 2000, to discuss
fessor Willis Emmons in the August 27,
efforts to revive the sagging euro.
2000 New York Times article One Choice
The New York Times quoted Professor Too Many in Electricitys New Free Mar-
Ronald Goodstein on the possible effects ket (Kirk Johnson). Maybe somebody is
of subliminal advertising in Democrats winning, but it isnt the consumer, said
See, and Smell, Rats in G.O.P. Ad Emmons.
(Richard L. Berke) on September 12,
2000. Seeing the word Rats could make
people more negativebut there is no way
that people are going to switch votes
because of it, said Goodstein.
Professor Reena Aggarwals research on
the American Stock Exchange was fea-
tured in the September 11, 2000 Business
Week article Has the Curb Market
Moved into the Gutter? (Gary Weiss).
The September 1, 2000 issue of The
Washington Times featured the success of
Georgetown McDonough School MBAs
in helping a local business owner win a
contract with the Federal Emergency
Management Agency in Washington-
Area University Students Help Business in
Exchange for Class Credit (Dipka
Bhambhani).

We encourage all business
school alumniundergraduate,
MBA, and executive MBA,
to send us class notes. Please
contact Elizabeth Shine at
202.687.4080, if you would
like to become a class agent.
To send notes, please call,
fax them to 202.687.2017,
or e-mail the notes to
Shinee@georgetown.edu.
Alumni NOTES
UNDERGRADUATE
1963
Charlie J. Wolf II is president
and CEO of Payroll Network,
Inc., located in Kensington, Md.
Charlie has recently been elected
to the Sovereign Military Order
of Maltas Camera Dei Conti
(Financial Committee) in Rome
for a five-year-term.
1968
Gina Wentzel Wolfe is associ-
ate professor of theology at the
School of Theology Seminary at
St. Johns University in Col-
legeville, Minn. In September,
she and Professor Jane Kathman
gave a presentation on The
Ethics of Accountable Leader-
ship at the 13th annual confer-
ence of the European Business
Ethics Network held in Cam-
bridge, England. She is currently
on sabbatical and, with a grant
from the Louisville Institute, is
examining Mission Integrity
and Organizational Ethics in
Catholic Higher Education.
1969
Richard C. Valerian is a manag-
ing attorney at Farmers Insur-
ance Group.
1970
Robert J. Dunbar is president
of Doran Manufacturing Lim-
ited Liability Corporation,
which recently merged with
Torrington Metal Products to
form a large precision sheet
metal manufacturing company.
1979
Samuel Kubiak was appointed
as an investment officer for the
AFL-CIOs building invest-
ment trust corp in March 2000.
He earned the Certified Com-
mercial Investment Member
real estate designation in
November 1999. Samuel is also
a project director for his com-
munity association and is
precinct captain for the Arling-
ton, Va. Republican Party.
Samuel enjoys spending time
with his 2 1/2-year-old son and
16-year-old daughter.
1983
Michael G. Hogan is controller
at Best Doctors, Inc. in Virginia.
1986
Ashley Tagatac and her hus-
band Chris are living in New
York with their two children,
Madeline (2 years) and
Cameron (7 months). Ashley
has just completed her 12th year
at Morgan Stanley Dean Witter
sales and marketing and recruit-
ing. She will be recruiting at
Georgetown this fall.
1987
Michael Paolillo is vice presi-
dent, legal counsel at GE Capi-
tal Markets Services.
1989
Richard Cooney II has joined
the New York headquarters
office of the Greenwich Group
International as a director.
1990
Will Caperton y Montoya has
assumed a new position as
director of brand marketing at
CareerPath.com, one of the
leading career management sites
on the Internet. In addition to
building the CareerPath.com
brand, Will is in charge of
directing all television, radio,
print, and outdoor advertising
for the company. Prior to joining
CareerPath.com, Will was a cre-
ative marketing consultant for
clients in the entertainment,
new media, toy, fashion, and
publishing industries. He
received an MBA in marketing
and entertainment management
from the Anderson School at
UCLA in 1995. Will remains
active in the Georgetown
alumni interview program and
splits the rest of his free time
between his homes in New
Mexico and Los Angeles.
Peter E. McGratty is the direc-
tor of business development at
Lenox Inc., an online market-
place for corporate equipment.
1992
Amy Hentges Holtz is contin-
uing her volunteer work at the
Bethesda/Chevy Chase Rescue
Squad as a firefighter/emer-
gency medical technician. She
recently married Christopher
Holtz.
1993
Brett Michael Gottlob, a cor-
porate audit manager at Sprint,
was married on June 5, 1999.
1995
David Hulme, a captain in the
U.S. Army, is working as an
Apache pilot. He is attending
the aviation captains course at
Ft. Rucker, Ala. In December
2000, he reports to Korea for a
one-year tour of duty. In his
Fall / Winter 2000 21
 Alumni NOTES

spare time, David is volunteering

ALUMNI PROFILE
at local blood drives and for
Habitat for Humanity.
Laurie Johnson has recently Making VitalContact with Venture Capital
joined Account Pros, a head-
hunting firm, as an associate in Michael Appelbaum (B00) started his first Internet busi-
executive searching, specializing
ness at age 15. During his years at Georgetown, he and
in accounting and finance pro-
fessionals. Laurie recently a classmate created a software firm, called Illumix, from
moved to Hoboken, N.J. their dorm room. Now at the ripe age of 23, the recent

graduate has moved to the big leagues. Hes secured the

1996 backing of a leading venture capitalist, started his next
Lisa Fiorito is an MBA student
Internet company, VitalContact, and been profiled in
at the University of Virginias
Darden School of Business. the Washington Post Magazine.

David Welch is working at Gold- Appelbaums career as high tech entrepreneur began at
man Sachs in New York City.
age 7, when his parents bought him his first computer.
Natalie Wolf is a second-year
Ive loved computers ever since, he says. In 1994, the
MBA student at the Harvard
Business School. teenager signed up 200 customers in the area around his

Boston home, providing them with e-mail service before

Mark Vlasic graduated from
Georgetown Law in 2000 and is AOL got really big. Appelbaum used guerilla marketing, going to computer shows and sticking promotional
now studying in Holland on a fliers on car windshields. With his application to Georgetown, he included a presentation on his company.
Dutch foundation grant through
Maybe that was why they let me in, he speculates.
the Fulbright Scholar program.
He has also accepted a position
It was in his college computer science class that Appelbaum met Jeffrey Garvett (B00). They both had ideas for
as an associate at the law firm of
Gibson, Dunn & Carter. Any- software applications and decided to team up on a project that eventually filled all their hours outside of class.
one passing through Holland Sometimes even in class I was writing programs in my notepad, Appelbaum admits. The result was Illumix, an
can contact him at markvlasic
Internet research tool bought by such companies as American Express and Microsoft. Some of VitalContacts
@hotmail.com.
software is based on that product.
Kristen L. Zarenko is a corpo-
rate associate at McGuire Woods
Were providing companies with technology that lets them alert the people that matter when important infor-
Law Firm.
mation changes anywhere and then allows people to act on that information, Appelbaum explains.

1999 Just a few months ago, Appelbaum, VitalContacts CEO, and Garvett, the chief technology officer, were working
Rebecca Velez is an associate
out of an apartment they share in Georgetown. Now they have offices in Rosslyn, Va. and are hiring several
consultant with financial advi-
sory services at Pricewaterhouse employees, thanks to the capital and mentoring theyve received from Steve Walker Associates. So far, theyve
Coopers. She is planning to raised $300,000 from Walker and other investors, and now are seeking an additional $1 million to grow their
enter an MBA program in the
company.
fall of 2001.

22 The McDonough School of Business

 MBA
1987
The Class of 1987 is soliciting
a new class agent. Please
contact Elizabeth Shine at shi-
nee@georgetown.edu if interested.
Henry Bose, Jr. started a hotel
and management firm, Ivy Hos-
pitality Inc., in June 2000 with
help from a group of Silicon
Valley angels.
1989
The Class of 1989 is soliciting
a new class agent. Please
contact Elizabeth Shine at shi-
nee@georgetown.edu if interested.
Hiroshi Asada joined Ameri-
can International Group, an
insurance company, in June
2000. He is a regional market-
ing manager. He will soon cele-
brate his tenth wedding
anniversary with his wife, Hit-
omi. His two children, Megumi
and Ken, will be 5-and 3-years-
old, respectively, this September.
Hiroshi and Hitomi have begun
to play golf.
1990
Class agent: Lorraine Herr
Cmputrilit@aol.com
Shaul Berechman was in
Washington for our ten-year
Georgetown MBA class
reunion. Currently, Shaul is
managing the members savings
plan of his kibbutz, as well as
running member meetings and
other finance and business-
related community activities.
While in town for the reunion,
Shaul stayed at Shulie and
Jonathan Madnicks home in
Reston, Va.
Rich and Lisa Carlson live in a
golf community in Texas with
their four children.
Paul Fields and his wife, Jane,
ran the Dublin, Ireland
marathon on October 30, their
first wedding anniversary. So,
Paul and Jane, for your second
anniversary, Everest? The Mat-
terhorn? The Fields ran the
marathon with Joints in
Motions, a fundraising event
sponsored by the Arthritis
Foundation.
Jane Ashton Hawes was at
daughter Emmas dance recital
the weekend of the George-
town MBA reunion. Jane and
her husband vacationed in
Long Island and Maine this
summer, with a quick trip to
Chicago in August for a
triathlon. Janes freelance writ-
ing keeps her busy with a smor-
gasbord of subjects, including a
how-to primer on building per-
mits, murder cases and organic
beef profiles.
Lorraine Herr, when not writ-
ing notes for her Georgetown
class, works three days a week
for AT&T, follows a rigorous
weight-training program,
designs custom window treat-
ments, and teaches her son
Broadway show tunes.
Bill Kummel also attended the
reunion and reported visiting
with Mohab Khattab, Monte
Carlo, Eileen Utter, Scott
Handel and Alan Lawhead.
Bill moved back to Washing-
ton, D.C. this summer and
claims to see Monica Lewinsky
every so often at a breakfast
place he frequents.
Jonathan Madnick is still with
American Management Sys-
tems and was recently in Israel
working on a telecommunica-
tions project.
C. Whitney Mandel is still sta-
tioned in Baltimore. He has just
started with a consulting firm
and is enjoying his new work
experiences.
Eileen Utter spent most of her
six-week sabbatical from
Charles Schwab in France this
July, first attending cooking
school, then exploring the Bor-
deaux and Dordogne regions
and finally ending up in Paris.
Lorraine Herr joined Eileen at
her country chateau (complete
with a pool) for a week in the
Dordogne.
Kitty Swenson continues to
work at Wasatch Advisors. She
and her husband, Steve, are busy
with their two daughters, Scout
and Sara.
1991
Class agent: Mary Pat
Blaylock
mpblay@hotmail.com
Mary Pat Blaylock is very busy
with her two children and help-
ing to plan the class ten-year
MBA reunion.
Rob de Ocampo is working at
Bighorn Cellars, a Napa Valley
winery that specializes in
chardonnay and cabernet sauvi-
gnon. He began his work there
in 1997, when he was brought
on to develop a financing plan
for the winery. His duties have
expanded to include winemaking
management, marketing and
brand management and vineyard
operations.
1993
Class agent: Jordan ONeill
jordan@chevychasebank.com
Tim Becker was admitted to
Andersen Consultings partner-
ship in September 2000. He pro-
vides strategy consulting to the
utility industry, focusing on e-
commerce and growth strategies.
Steve and Susan Fortier (for-
merly Susan Aiken) are new,
proud parents. Their daughter,
Hannah Elizabeth, was born last
August. Steve is a partner at
KPMG and Susan is still at Leo
Burnett.
David Liebreich has moved to
Japan and started e-Crossing, an
incubator company designed to
build a number of Internet busi-
nesses in Japan.
Chris Melley and his wife Anne
celebrated the birth of their
daughter on May 5, 2000.
David Roover continues to
compete with Jordan ONeill
and Terry McDermott for
the lead in the most-jobs-after-
business-school competition.
His fourth position post-
Georgetown is with a company
he co-founded in Boston, Pci
Commercial, Inc. Pci is a start-
up that develops enabling tech-
nologies and a net-market
for commercial loans. He has
responsibility for the development
of the loan market. Though
thinking he had hit the jack-pot
by catching the B2B wave, he
now realizes that B2B means
back to banking, which he just
left. David and his wife,
Michelle, have a son, Ben.
Eileen Schjelderup recently
relocated to Denver. She has
changed careers from the non-
Fall / Winter 2000 23
 Alumni NOTES
profit arena, accepting a job with
Marisco Capital Management.
In her spare time, she enjoys ice
climbing and snowshoeing.
Also, Eileen spent a month trav-
eling around Australia.
1994
Class agent: David Gee
david.gee@sun.com
Manish Agarwal is living and
working in Calcutta with his
wife of two years, Aparna. He
has moved into the processed
foods industry from the tea
industry.
Chris Bahr and his wife Paget
welcomed the arrival of their
first child, a son, on July 31,
2000. Hazard Gage was born at
Stanford University hospital.
Chris continues to enjoy his
work for IBM in Silicon Valley.
Francisco Barriocanal has a
baby daughter, Ines.
Sue Benveniste was married
September 23, 2000, in Seattle
to Keith Walter from New York.
Georgetown MBAs Ashley
Lowe, Kristin and Matt
Carcieri were in attendance.
Andrew Dyer is back in his
native Australia, where he works
for McKinsey in Melbourne.
Dave Egan was married during
Labor Day weekend in Chicago.
Eric Saucedo, John Jacobs and
Evan Flinn were in attendance.
Melissa Guerin Escajadillo is
still living in Peru with her hus-
band, Gonzalo. They are raising
two girls, Mila (2 years old) and
Cristina (3 months). Melissa
recently left IBM and joined
Sun Microsystems.
24 The McDonough School of Business
Margot Jacobs is living in
London.
Paddy McGee was married in
August 2000 in Donegal, Ire-
land. Those in attendance
included Marc Gross, his wife,
Louise, and their daughter, 8-
month-old Aurelia. Alona
Ponomareva was also there.
Paddy is still with J.P. Morgan,
working on U.K. mergers &
acquisitions.
Lisa Mitiguy is still a senior
manager at Ernst & Young in
Washington, D.C.
Paul Murphy and his wife Jane
are moving back to New York
City. Paul has a new job as a
principal at Sentinel Capital
Partners.
Brad Norton and his wife, Deb-
bie, are proud parents of triplet
daughters, Anna, Sydney and
Taylor, born March 2, 2000. Brad
and his family live outside Cleve-
land, Ohio, where he is working
in the equity investment research
group at Keybank.
Dave Petroni joined onDisplay,
a web infrastructure business, in
late 1990. OnDisplay was
acquired by Vignette earlier this
year and Dave is managing the
transition.
Mike Piwowar and his wife,
Eileen, became proud parents of
Sean Raymond on March 20,
2000. Mike is also having his
academic journal article (coau-
thored with Chris J. Muscarella)
published in a forthcoming Jour-
nal of Financial Markets. Mike is
an assistant professor of finance
at Iowa State University.
Kristen Staples is working as a
part-time Internet consultant for
the Morino Group, and is rais-
ing her two childrenHaley (4
years) and Jack (18 months).
Kristen sees Robyn Carton,
Adrienne Cox, and Jen
Anthony from time to time. Jen
Anthony visited Ashley Lowe
recently in Michigan.
Matt Tucker is currently run-
ning RightFreight, a company
offering global airfreight
exchange for forwarders, ship-
pers and carriers.
Heather Weaver (nee
Mitchell) is living in Washing-
ton, D.C. with her husband,
Mike, and son, Grant. She
works at AOL.
1995
Class agent: Scott Shore
scott.a.shore@us.pwcglobal.com
Claudia Kern has been living in
the Washington, D.C. area since
1999. She was married to Javier
in Venezuela in 1995. The two
lived in New York from 1995 to
1999. While living in New York,
Claudia worked for A.T. Kear-
ney and then decided to start her
own jewelry business, C&G
Designs Corp. The company
specializes in unique sterling sil-
ver pieces and semi-precious
stones. The main market com-
prises of small boutiques in the
New York and Miami areas, as
well as in Venezuela and Mex-
ico. Javier works for Capital One
as director of retail deposits,
while Claudia is still managing
her own business.
Andris Levensteins recently left
General Electric Plastics Busi-
ness Development to move west
to Denver, Colo. with his wife,
Ingrid, and baby son, Niklavs. He
is enjoying skiing and fishing in
the Rocky Mountains.
Ashley Lowe married Rob
ALUMNI NOTES
Shaya over Labor Day weekend
in Sedona, Ariz.
1996
Class agent: Leslie Blair
leslie.blair@spcorp.com
In March, 2000, Mustafa
Abdel-Wadood and a group of
partners launched an investment
bank that focuses on mergers
and acquisitions, advisory work,
placements, securities brokerage
and venture capital. The bank
has grown to over 50 employees.
A lot of his work is focused on
technology and high-growth
opportunities in the Middle
East and North Africa region.
His company also launched
Egypts first on-line trading site
and is developing a regional
financial portal. In the way of
personal news, Mustafa has been
married since September 1999.
Antonio Belaustegui was mar-
ried on June 23, 2000, in
Logroo, Spain. Ramiro
Snchez and Alejandro Garca
came to the wedding; they had
an incredible time.
Sibel Berzeg was recently pro-
moted to regional director for
Internews Network, responsible
for offices/projects in five coun-
tries: Ukraine, Belarus, Azerbai-
jan, Georgia and Armenia. She
also sits on the executive com-
mittee that manages the organi-
zation worldwide. Sibel has been
living in Tbilisi, Georgia since
July 2000, and loves it. She is
speaking pretty decent Russian
these days, though Georgian is
another story completely.
Georgetown MBA 96 alumni
visitors always welcome!
MBA
Michael Bress is working for
Andersen Consulting in Reston,
Va., structuring private equity
transactions with his clients. He
moved back to Washington a
year ago, and has a 3-month-old
Jack Russell terrier.
Helen Chen started a company
in Taiwan, manufacturing per-
sonal computer peripherals.
Helen does original equipment
manufacturing for several large
Japanese companies and in Tai-
wan she markets under her own
brand, H2O. Helen is seeking
distribution in the U.S.A., if
anyone has any tips for her.
Sara Conner had a baby girl on
August 9, 1999. Her name is
Abigail Beach. Sara recently
moved to North Andover, Mass.
She is taking a break from the
business world to be a mother,
which has been quite an adjust-
ment but worth it.
Tim Doyle switched jobs in
March 2000. Hes now at
Sterne, Kessler, Goldstein &
Fox, a mid-sized intellectual
property law firm in Washing-
ton. Tim is on track to graduate
from George Washington Law
School in 2002. Hes happy to
talk to anyone working for a
company that needs intellectual
property protection (or any other
Georgetown MBAs for that
matter).
Mark Drexelius is now the
manager for applied information
with Brown and Williamson, a
tobacco manufacturer, in
Louisville, Ky. He will be
responsible for managing the
flow of all marketing informa-
tion to B&Ws brand and retail
marketing groups in the U.S.A.
This will include retail segmen-
tation, performance scorecards
ALUMNI PROFILE
Navigating Cyberspace to Find Success at AOL
and aspects or category manage-
ment. Marks wife Candace has
Its hard to realize that it was only in the mid-
rejoined the work force as a
graphic designer with Doe 1990s that consumers started using the Inter-
Anderson, an ad agency in net. Before most of us could imagine the Nets
Louisville, and Marks daughter
enormous impact on our lives, John Ayers
Lexi will celebrate her fourth
birthday in October. (MBA/JD89) was sensing the potential and
pointing his career toward cyberspace.
Bob Gabriel joined a dot.com
in McLean, Va., in March 2000,
One of only a handful of students in his class
called IXI Corporation. He is
still living in Georgetown with who earned both a law degree and an MBA,
wife Megan and their three chil- Ayers, 37, is vice president of AOL Anywhere & Navigation Services at
dren.
America Online. His route to AOLs senior management began at a major
John Loncto just finished his
New York law firm, where he worked on mergers and acquisitions.
first year at UCLA Law School.
Stephen Gaull will be leaving He quickly learned that young lawyers had to do a lot of drudge work
Brazil and moving back to the before they could step up to key roles in important cases. So he jumped
Washington, D.C. area immi-
to a smaller, more entrepreneurial firm that advises venture capitalists as
nently. He has an appointment
as an executive fellow with the well as handles mergers and acquisitions. It gave me an opportunity at
U.S. Export-Import Bank. This a young age to be involved in the structuring of deals, Ayers says.
is a one-year position, and he
will be working in the asset When AOL, which had recently gone public, decided to acquire Redgate
management and structured
Communications, owned by Georgetown alum Ted Leonsis, Ayers law
project finance divisions with the
CFO. firm worked on the deal. As he helped AOL acquire more businesses, it
made me aware of how powerful this medium was going to be. At the
Dwight Gibbs is still (six years
and counting) the chief techie same time, he decided he wanted to stop practicing law. In 1995, he
geek at The Motley Fool, a pop-
joined AOL, where he spearheaded the evolution of AOL.com from a
ular personal finance website.
marketing site into a full service Web portal offering instant messaging,
Apparently the only person with
a similar tenure in the Internet e-mail, chat, search and other features.
space is Dave Filo at Yahoo.
Objects at rest stay at rest? Although he had to learn the technology on the job, he credits his busi-
Dwights latest tasks are putting
ness school courses with giving him the ability to be a strategic thinker
together a customer relationship
and to understand business and markets, which are the same principles
management tech strategy and
an international tech operations in the online and offline world.
plan for the U.S.A., U.K., Ger-
many and Japan. When not Ayers believes the young Internet industry offers new MBA graduates
working, Dwight spends time
more risks but also endless possibilities. Even with the tremendous
with his wife, Amanda, and
daughter Thora (who turned growth of the Internet in the last three or four years, its still early in the
one on September 20, 2000). He game, he stresses.
recently played the role of single
parent while Amanda was in
South Africa for ten days and
has newfound respect for single
Fall / Winter 2000 25
 Alumni NOTES
parents everywhere. Other than
that, Dwight is putting together
a CD with his band N8.
Michael Hawk and Michael
Maier preceded Mariana Marti-
novas wedding weekend with a
rafting trip on the Gauley River
in West Virginia, followed by
mountain biking in Moab, Utah.
Julie Jaoudi recently moved to
Boston, Mass., with her husband
Davehe is pursuing his Mas-
ters in Public Administration at
Harvards Kennedy School of
Government. She is still work-
ing with AOL in business devel-
opment. She would love to know
if there are other Georgetown
MBAs in the area!
Michele Joseph is a proud
mother of a 4-year-old
preschooler named Austin. She
is also building a marketing con-
sulting firm with a social respon-
sibility twist: Klick Consultants,
Inc. She is actively recruiting a
virtual team of consultants and
seeking investment opportuni-
ties.
Scott Keough is still with
MicroStrategy as a senior man-
ager, running partner marketing.
Timarie Kilsheimer was
recently promoted to manager of
channel development at Digex
in Bethesda, Md.
Lisa Klepper (nee Comparato)
and her husband Carl had a
baby boy, Carl, Jr., on July 31,
2000.
Tammy Maddrey and husband
Greg had their second child,
William, in January 2000. Their
first daughter, Catherine, is
almost 3 years old. They recently
moved to Denver, Colo., where
Greg is a director for Channel-
26 The McDonough School of Business
point, Inc. Tammy is taking
some time off to be a mom for a
while.
Miriana Martinova wed Kevin
Smith in Denver, Colo., on
September 16, 2000. Mirianas
wedding was attended by Maria
Antoinetta de Icaza and Nora
Rivero Hudec. Also attending
the ceremony were Michael
Maier, Michael Hawk, Jill
Kianka, and Leslie Blair
Alvarado. Miriana and Kevin
both work for Qwest in Denver.
They honeymooned in Hawaii
for two weeks before returning
to Denver. Everyone had a blast
catching up and dancing the
night away at the beautiful
Brown Palace Hotel. Four years
goes by quickly!
Wendy Moe just moved to
Texas and is now a professor at
the business school at the Uni-
versity of Texas at Austin, teach-
ing e-commerce. Wendy also
started a company with a couple
of Wharton MBAs. The com-
pany is based in Seattle, Wash.
Joe Mohan is the proud father
of Francis Joseph Mohan, born
in Panama at the end of May.
Within a week, Francis had
three passports and during his
first 3 months, he has traveled to
Argentina, Guatemala, Miami,
Cuba, New York City and eight
other flights in between! Joe is
doing well with his new job,
sales director of Copa Airlines.
In between trips, they are hitting
the rain forest and visiting the
20 countries he manages.
Wendi Norris has been working
feverishly at a hot new San
Francisco-based company, Scale
Eight (www.s8.com). As vice
president of marketing, Wendi
recently launched the company
in the U.S.A. and will soon
debut it in both Europe and
Japan. In her spare time she is
also an active board member for
the Bay Area YMCA, where she
focuses on developing programs
for at-risk youth in San Fran-
cisco.
Sandra Nouhra (married name:
Hoffman) recently had her sec-
ond baby boy, Marc Angelo,
born on July 5, 2000. His older
brother Julian will be 2 years old
in February 2001. Sandra is still
living in Dubai (since 1999),
working as an export manager.
She has done a lot of traveling,
especially in Africa. Sandra is
looking forward to limiting her
traveling to vacations only!
Richard Oren recently left The
Jim Henson Company to
become director of licensing for
HBO Properties. He is respon-
sible for the merchandising of all
HBO programs, including The
Sopranos and Sex and the City.
Richard and fellow Georgetown
MBA alumnus Michael
Berman get together regularly
for mind-numbing games of
Scrabble.
Colleen Parent and her hus-
band Al had a baby in June
2000, Katherine Grace Zarate.
Shes been a wonderful addition
to their family.
Christian Preuss has been liv-
ing in Guyana since March
1999, working for British Amer-
ican Tobacco, as the general
manager for the Demerara
Tobacco Co.
Wil Priester and his wife Pam
had another baby girl in March
2000Katherine Elizabeth
(Kate). Big sister Lindsey has
learned to share Mommy and
Daddy and is particularly effec-
tive at making Kate giggle.
ALUMNI NOTES
Judy Renfrew was promoted
to development manager at
CarrAmerica, a real estate com-
pany. She had another baby,
Elinor Renfrew Berger, born
August 6, 2000. Elinor joins
big sister Alexandra, who is 2
years old.
Allen Wang was promoted to
brand manager at Procter &
Gamble in June 2000. He is now
managing all coffee (Folgers and
Millstone brands) for away-
from-home opportunities (i.e.
anywhere you find yourself
drinking coffee, but not at
home). Allen and his wife also
had a new son, born on July 12,
2000. His English name is
Alexander, but they often call
him by his Chinese name Jia-
long, which means good
dragon, as he was born in the
Year of Dragon.
David Wigglesworth and his
wife Laura are the proud parents
of a baby boy, Ryan, born in
March 2000. David recently
changed jobs and now works at
NetEx in Herndon, Va., which
provides encryption, protection,
control and administration of
Internet-delivered content and
e-mail.
1997
Class agent: Rochelle Cheng
rcheng1@cisco.com
Greg and Julie Adams are the
proud parents of daughter Lucy
Campbell Adams, who was born
on August 24, 2000.
Svetoslav Nikov is working as
an associate at J.P. Morgan in
New York City.
Tod Reinert published an arti-
cle, Practical Active Currency
Management for Global Equity
 MBA
Portfolios in The Journal of
Portfolio Management (Summer
2000). The article leverages ear-
lier work of Georgetown profes-
sor Richard Sweeney and
demonstrates the effectiveness of
an active currency hedging strat-
egy in improving risk-adjusted
return of globally diversified
equity portfolios, relative to
unhedged and passively hedged
benchmarks. Tod can be reached
at reinert@marketweb.net.tr.
Christopher Skelly and Molly
Moosbrugger were married in
Washington, D.C. on August
12, 2000. The wedding was
attended by many Georgetown
friends, including Kelly
Brighton, Marty Brennan,
Grace De Fries, Todd Gareiss,
Rusty Heffner, Simon Hitzig,
Brian Mannle, Megan Mulvi-
hill, Jane Oyugi, Fernando
Turmo, and Mark Wilcox.
Susan Thompson-Hoel is
enjoying her new job as a stay-
at-home mom with her son,
Jackson Nicholas Hoel. Susan
and her husband, John Hoel,
welcomed Jacks arrival on July
2, 1999.
1998
Class agent: Brian Knox
bknox@hess.com
Several members of the Class of
1998 recently attended the Fall
2000 Virginia Gold Cup. Many
thanks to Jane Dwyer and
Heather Hunt for organizing
the event and the perfect
weather for current students,
alumni and friends (no small
task). Attendees included
Andrea Stueve, Lisa Price, Li
Fan, Corina Ploscaru, Nicole
Flavin, Steve Woo, John
Stokes, Mitchell Fenster and
Rene The Bookie Houle.
James Anderson is working as
a principle at American Man-
agement Systems, Inc. in Wash-
ington, D.C.
Michael Canzian, lives in
Arlington, Va., and was recently
promoted to the senior manage-
ment team responsible for
worldwide revenue operations,
at BAE SystemsRegional Air-
craft, Inc.
Nicole Flavin recently left Pepsi
to pursue a new career in grass-
roots marketing to college stu-
dents with The Varsity Group,
based in Washington, D.C.
Rich Garodnick has been work-
ing as a consultant at Kurt
Salmon Associates (KSA) in
New York. The majority of his
work focuses on IT/merchan-
dizing projects for clients in the
apparel industry. In addition to
these job responsibilities, he also
recently became the national
staffing director for his firm.
Chris Gergen is now CEO of
Smartthinking, a provider of
online tutoring for college stu-
dents. The company recently
announced that it has raised $5
million in funding to enhance
educational technology. Smart-
thinking offers real-time support
in mathematics, economics,
accounting, statistics and psy-
chology.
Ana Martinez left her job at
LOreal in New York to join
Procter & Gambles fine fra-
grances division in Washington,
D.C.
Mark Maruszewski recently
joined Pomona Capital, a private
equity firm based in New York.
He and his wife, Alexandra,
were married in Nantucket in
May 2000.
Reed Meyer has joined another
telecom startup company in
Denver, Colo.
Carolynn (McMeekin) Puffe
now works as an associate for
the investment banking firm of
Robinson-Humphrey, an
emerging growth arm of
Salomon Smith Barney. She
specializes in the healthcare
industry. Carolynn and her hus-
band, Michael, were married in
May 2000 in Jamaica.
Patrick Rau moved from big
oil and Amerada Hess to join
ING-Barings Bank as an equity
research analyst in the chemicals
division. He has also begun tak-
ing skating lessons to fulfill a
lifelong dream of learning how
to play hockey.
Kamran Sistanizadeh is
involved with an emerging
Internet company, Yipes.com,
which provides customers with
increased bandwith between the
Internet and their local area net-
works.
Jeffrey St. Claire is continuing
his work for the technology
investment banking practice at
investment bank Robertson
Stephens in San Francisco. He
reports he recently learned how
to play the banjo.
Robert Walley works in Char-
lotte, NC, for American Man-
agement Systems, focusing on
the Internet-banking industry.
He and his wife, Cindy, were
married in July 1999.
1999
Class agent: Mike Pastore
pastmike@yahoo.com
Erik Gaull joined the adminis-
tration of Washington, D.C.
Mayor Anthony Williams in
July 2000 in the operational
improvements area.
2000
The Class of 2000 is soliciting
a new class agent. Please con-
tact Elizabeth Shine at
shinee@georgetown.edu if inter-
ested.
Amy Galgon and her husband
have recently opened a restau-
rant, Grapeseed, in Bethesda,
Md.
Patrick Hanley is a member of
the key management team at
Next Wave Innovations.
Jenn Johnston, Vickie Koro-
godon and Marco A. Gonzalez
have combined efforts to start
Buck42.com. They are featured
in the October 2000 issue of
Washington Business Forward.
The article is about the Draper
Atlantic/Netpreneur.org Fast
Pitch, which was won by Buck42.
com. They have launched a pro-
motional web site and announced
a partial list of their board of
directors.
Kenneth Starr has started his
job as the e-commerce manager
of product development at Fan-
nie Mae. He and his wife, Olga,
are moving into a new apartment
in Arlington, Va.
Dale Tzeng has recently changed
jobs. He is now a product man-
ager at Claritas in Rosslyn, Va.
Fall / Winter 2000 27
 Alumni NOTES
IEMBA
1996
Class agent: Thom
Arnsperger
tarnsperge@aol.com
Congratulations to Guy Abramo,
who was recently appointed to the
newly-created position of chief
strategy and information officer
for Ingram Micro Inc. (the largest
global wholesale provider of tech-
nology products and services).
Ingram Micro combined infor-
mation technology, and corporate
marketing and strategy into a sin-
gle function that, under Guys
leadership, is responsible for the
companys strategic business
direction.
Thom Arnsperger has been busy
writing this year; he co-authored a
chapter in McGraw-Hills Hand-
book of Airline Operations titled:
Ready or Not, Here We Come:
Airport Infrastructure and the
Transition to Regional Jets.
Additionally, his work on airline
avionics user equipage cost was
presented to (and published by)
the Airline Group of the Interna-
tional Federation of Operational
Research Societies at their 39th
annual symposium.
Bhavana and J.C. Boggs are the
proud new parents of a little girl,
Kate Boggs.
Bill Oetgen went back to school
and will earn a B.S. in Account-
ing from the University of
Maryland in December (I guess
well need to add C.P.A. to
M.D.). Dr. Bill is still very active
at Georgetown, where he has
been teaching a course to MBA
students for the past three years
titled: The American Health-
care Marketplace.
28 The McDonough School of Business
In September Terri and Pietro
Gerosa set up a new residence
in Geneva, Switzerland. Terri is
now heading up the support
team for Citigroups private
banking business in Europe.
Pietro is head of general affairs
for Swiss Broadcasting.
Some of the previous moves we
missed include: Marie Royce is
with Marriott International, the
Marketplace, as their senior
director, sales; Greg Spierkel is
living in Brussels and is senior
vice president & president,
Ingram Micro Europe; Gene
Waldenmaier in now with Car-
olina Phone as their vice presi-
dent of network operations; and
Felicia Wilson is a senior man-
ager at AOL.
1998
Class Agent: Debbie Weil
Debbie@wordbiz.com
Class agent Debbie Weil has
started her own business. Word-
biz.com is a marketing and con-
tent firm that helps startups and
fast-growing companies tell
their story.
Michele Franck is now first
vice-president at Bayerische
Landesbank, working on financ-
ing of oil and gas projects in the
Caspian region.
Mary Rose Szoka de Val-
ladares was recruited as director
of business development devel-
opment and government rela-
tions for DCH Technology, a
public company that produces
fuel cells and hydrogen sensors.
1999
Class Agent: Alphonse
Iudicello
a:iudicello@worldnet.att.net
The IEMBA Class of 99 had
their first official happy hour in
October at Muralis Restaurant
in Washington, D.C..
Brenda Lang is living in Cleve-
land, working for Pinkerton,
a security company, and likes
her job.
On October 16, 2000, Christo-
pher Ford started his new posi-
tion as senior director of lodg-
ing finance at Marriott, Inc.,
working in the asset manage-
ment and development finance
areas, and participating in con-
tract assessments and analysis
and valuation work on new unit
development and acquisition
projects.
John Nishimoto is closing
some other business and book-
ing crazy revenues, accounting
for just under 30% of the entire
companys revenues. Needless to
say, things are going well.
Seth Grae and Jon Miller got
together in Amsterdam, just after
Jon got back from visiting Cyn-
thia Loa in Brussels, where
Susan Klumpp was also visiting.
Karl E. Williams left Lockheed
and has joined Vodium as the
COO. Vodium is a streaming
media services company that
helps clients publish interactive
audiovisual events on the web.
Richard Engh is having a blast at
Lucent coordinating among
R&D, engineering, product man-
agement, and manufacturing.
ALUMNI NOTES
Speaking of waiting and raising
money, Liz Blankenship and I
are still looking for a lot of money
to recapitalize our company.
Jon Miller writes the following:
I feel that I am perhaps rested
enough to proceed with my next
endeavor, embarking on my next
career. I have a multitude of
Internet listings, as well as exec-
utive search service, at my dis-
posal here. Anybody doing busi-
ness in the EU is here in the
Netherlands and that in itself
provides many possibilities. Jon
will be in the U.S. with wife
Katina over the holidays, and
were planning a get together on
December 28 for anyone thats
interested. Watch your e-mails
for the time and place.
2000
Class agent: Lynn Miller
lmiller@ti.com
Nicholas Davidson has joined
McKinsey & Co. in London.
Lucy Fitch is now at BAE Sys-
tems North as a vice president,
in acquisitions and strategy. She
and Dennis Morris are now with
the same firm.
Shawn Greene left Entremed,
where he was director of gene
therapy, to found LabBook, Inc.
His firm makes software that
allows researchers to manage and
analyze large amounts of raw
biological information.
Eric Sklar has left Silicon Val-
leys Technet to devote himself
full time to the launch of his
newest company, Infohaze.
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