DIvIDEnD - Stephen M. Ross School of Business - University of ...

elow: photo by steve kuzma
Remaking the American dream From physicist
foreign investment in the united states may provide
the country with jobs, economic stimuli, innovation, and
competition. But it still “touches a raw nerve,” according
to award-winning journalist Micheline Maynard, adjunct
lecturer at Ross and senior business correspondent for
The New York Times. During a recent presentation at Ross,
maynard detailed some of the trends and consequences
Micheline Maynard
covered in her new book, The Selling of the American
Economy: How Foreign Companies are Remaking the American Dream.
while many foreign investors are looking to the u.s. as a way to skirt high taxes
and unions at home, most companies simply are hoping to tap what is still a huge
consumer market, recession or no recession.
maynard says one consequence of increased foreign investment is the incentive
bidding wars that emerge among the states hoping to land a big operation. Results
are mixed: ohio’s courting of honda in the late 1970s resulted in 25,000 jobs, but the
jury is out on how well incentives have worked to lure toyota’s truck plant to san
antonio. and while michigan has had some success attracting foreign investment,
state officials should better leverage its natural resources and engineering expertise,
maynard says.
the growth of foreign investment in the united states always runs the risk of
being stymied by protectionism, especially in a recession. But maynard sees signs
this won’t happen on a big scale. she cites the cash for clunkers program, which
applied to all vehicles, not just american brands.
she also takes heart in the can-do attitude she perceives in today’s business
students. “i’m very encouraged when i talk to business students by how much
entrepreneurial spirit is out there,” maynard says. “People aren’t just waiting
to be rescued.” —Terry Kosdrosky
Political Satirist Mo Rocca Brings Insight,
Fashion Sense to Reunion Weekend
As quirky media personality mo Rocca prepared to deliver the Ross
School’s Reunion lecture in September, Dean Robert Dolan posed this
question: “Why would a business school invite a speaker who might show
up in pink pants?” Answer: To demonstrate the value of good storytelling.
Rocca is a regular panelist on NPR’s Wait Wait ... Don’t Tell Me! and a
contributor to CBS’ Sunday Morning. He also has been a contributor to
The Daily Show with Jon Stewart.
He may not know much about business school, but Rocca does know
just about every world capital. “When I moved to New York to get into
show biz, I worked at Macy’s selling fragrances, and I operated on commission.
A lot of diplomats would shop at Macy’s, and it was a great way to
Mo rocca
ingratiate myself,” he said.
Mo rocca
Rocca’s capacity to establish common ground with foreign diplomats demonstrates his motto to “know a
lot of stuff [but] act like you know even more.” To that end, he encouraged audience members to follow his
example and always exude confidence. Sage advice from a man in pink pants. —Leah Sipher-Mann
to Financier
As CEO of the famed specialist
insurance market Lloyd’s, Richard Ward
deals daily with the risk-reward calculation
of business. But it’s on the personal
career track that he’d like to see a little
more risk-taking.
Ward, a scientist by training, shared
tales of his “slightly strange” career
trajectory as part of the Leaders in
Thought and Action speaker series
at Ross in December. He holds a
PhD in physical chemistry from Exeter
University and was doing research
in academia when he decided to go
corporate. He convinced British
Petroleum (BP) that much of what he
did as a scientist applied to business.
BP followed his logic, ultimately tapping
Ward to move to London to trade in oil
derivatives. It was a risky move: Ward
had no experience in financial markets
or commodities trading.
“My plea to all employers is to give
those types of opportunities to their
employees when they see it,” Ward says.
Eventually he left BP for the International
Petroleum Exchange, ascending
to COO in 1999. There he led a
hard-fought conversion from open-pit
outcry trading to electronic trading.
In 2006 Ward joined Lloyd’s, barely
settling in before the 2008 financial
crisis hit. The firm is coping by investing
mostly in bonds and cash. The returns
aren’t spectacular, but neither are the
losses, Ward says. “We’re taking risk in
places where we want to take risk, such
as David Beckham’s kneecaps.”
The big risks now come from
ongoing uncertainties on the financial
horizon. “What I’m faced with, and
what we’re all faced with, is restoring
confidence in the financial services
sector,” Ward says. “But you can change
perceptions by getting your business
model right.” —Terry Kosdrosky
spring 2010 DIvIDEnD 9