Spring 2006 - Eller College of Management - University of Arizona

EllerE LLER C OLLEGE OF M ANAGEMENT S PRING 2006Advancing Eller:The NewExecutive MBAand OtherInnovationspage 12Schramm CoachesEller Entrepreneurspage 5CEO Terry Lundgrenon Changepage 24

FROM THE DEANWhen I first visited the EllerCollege a year ago, I immediatelyhad the impression that this is aplace where exciting thingsare happening.That impression has only grownstronger in the months since Ijoined the College as dean in July.2005 was a remarkable year forthe evolution of the College, with major advances in the Eller MBA,Undergraduate Programs, the McGuire Center for Entrepreneurship,and more. And while 2005 was a great year, we can all look forward toeven better things to come.I'm honored to be a part of Eller’s continuing growth and thankfulto all of the dedicated faculty and staff, alumni, and friends of theCollege who have made Eller what it is today.Paul PortneyDeanDean Paul PortneyEllerPROGRESSELLER COLLEGE OF MANAGEMENTSpring 2006FEATURE12 Bolder, Brighter & Better PreparedInnovation at the Eller College takes studentsto new heights in experience, confidence,and expertise.BRIEFINGS2 Salter Gift Merges Management and Technology3 Muzzy Chair Deepens Eller Entrepreneurship4 Exceptional MIS Faculty5 Carl Schramm Coaches Eller Entrepreneurs5 Graduate Seminar Explores Practical Ethics6 Eller Hosts Student Empowerment Conference7 Brint Milward Named NAPA Fellow7 U.S. Treasury Honors Lillian MillsCONNECTIONS8 Eller Collaborations Promote Public Servicewith a Management EdgeGATHERINGS10 Economists Forecast Smooth Sailing in Arizona10 Save the Date: Upcoming Eller Events11 Honoring Achievement where ScienceMeets BusinessALUMNI NOTES & PROFILES20 Alumni Notes21 Lew Murphy Remembered22 Alumni Profiles:Albert Makkay, BSBA Marketing ‘61Tamsin Campbell, MBA ‘92Augusto Sasso, MBA ‘98LAST WORD24 Last Word on ChangeTerry Lundgren, CEO, President, andChairman of Federated Department Stores, Inc.Let Us Hear from YouPlease e-mail comments, questions, orfeedback to progress@eller.arizona.edu.On the CoverParticipants in the inaugural Eller Executive MBA programgather for a class photo.Director of Marketing and Communications: Julie KrellEditor: Eric Van MeterPublications Manager: Marsha DeanPhotography: Thomas Veneklasen (unless otherwise noted)Design and Production: Shevon Johnson Graphic Design© 2006 The University of ArizonaSPRING 20061

BRIEFINGSWhere Leadership and Innovation UniteEller sharpens its focus on merging leadership and scientific expertise withthe Salter Distinguished Professorship in Management and Technology.In recent years, the Eller College haspartnered with other colleges and theprivate sector to champion a growingclass of graduates skilled in businessand leadership as well as scienceand technology.The Salter DistinguishedProfessorship in Management andTechnology adds new vitality to thatinitiative with support for research,programming, and scholarly activitiesthat will encourage more students tobridge the gap between these historicallydisparate worlds.UA alumnus Peter W. Salter, ’64,president of the Peter and Nancy SalterFamily Foundation, funded the professorshipin the spirit of an initial 2004gift to the Eller College and the Collegeof Engineering to support their burgeoningcollaboration. His interest insupporting that partnership grew outof his experience working with internsfrom both colleges at Salter Labs, thecompany he founded in 1975.Salter’s belief in the marriage ofmanagement and technology alsoreflects his own success story. As presidentand CEO of Salter Labs, he hascaptained the creation of more than150 medical care products and expandedthe company’s operations to aninternational scale.Salter holds 15 U.S. and worldwidepatents and has additional patentspending. In addition to his ventureinto medical technologies, Salter builtsuccess as one of the founders ofSierra National Bank, which latermerged with Bank of the Sierra andtoday has branches throughout theSan Joaquin Valley in California.A Management and Technology Model of SuccessMohan Tanniru (center), management information systems department head, holds the SalterDistinguished Professorship in Management and Technology created with a gift from Nancy andPeter Salter (pictured above). Peter graduated from The University of Arizona in 1964. He foundedSalter Labs in 1975, a company that thrives on innovation by “Engineering Tomorrow’s Ideas intoProducts Today.” His accomplishments earned him the UA's Distinguished Alumni Award in 2002.The Peter and Nancy Salter Family Foundation has given generously to the Eller College, as has Peterpersonally, serving on the College’s National Board of Advisors, teaching courses, and providinginternships and full-time positions for Eller MBA students and graduates.Salter Professorship Recognizes MIS LeadershipMohan Tanniru heads the Department of Management InformationSystems, which has maintained an unbroken top-five position in thenational U.S. News & World Report rankings. Since joining the EllerCollege in 2002, Tanniru has championed a new master’s degree concentrationin MIS and entrepreneurship and launched the “MIS FuturesCouncil Conferences” and “Shaping the Future of IT” conference tofoster nationwide collaboration among science, law, engineering,medicine, and other disciplines.Tanniru is leading much of the UA’s IT-related economic development,workforce development, and interdisciplinary outreach activities in partnershipwith UA Computer Science, BIO5, the Arizona TelemedicineProgram, and other organizations.Ed Stiles photoElevating EntrepreneurshipThe Jim and Pamela Muzzy Chair will helpcombine world-class research with a top-rankedprogram to take Eller’s entrepreneurshipdistinction to the next level.The McGuire Center for Entrepreneurshipstands as one of the best in the nation,most recently ranked eighth by U.S. News &World Report and second by Entrepreneurmagazine’s highly focused evaluations.Now, through an endowment fromJim Muzzy, MBA ’63, and his wife, Pamela,Eller entrepreneurship is preparing toclimb to the next level of influence andaccomplishment.In January, the Eller College and TheUniversity of Arizona began a nationwidesearch to appoint the Jim and PamelaMuzzy Chair in Entrepreneurship. A tenuredfaculty member, the Muzzy Chair will serveas the executive director of the McGuireCenter for Entrepreneurship at the EllerCollege and a leader in the College’s entrepreneurshipresearch.Targeted research areas for the Centerinclude knowledge transfer, venture capitalfinancing and small business lending,entrepreneurial law, and intellectual property,to name just a few. Overseeing a combi-nation of world-class instruction andresearch, the Muzzy Chair holder will helpthe Eller College become an even greaterleader in the teaching and application ofentrepreneurship.Expanding that leadership role includesenhancing the way existing organizationscan grow and operate entrepreneurially —an objective very much in line with Mr.Muzzy’s thoughts on the role of entrepreneurshipin today’s economy. Pointing outthe success of General MotorsCorporation's European operations —smaller, younger, and more agile than thecompany’s struggling U.S. operations —Muzzy underscores the importance of anentrepreneurial approach in any organization.“If an entrepreneur comes into acompany and it’s too bureaucratic orregimented, that entrepreneur is going toleave,” he explains. “If you’re not entrepreneurialin today’s world, you’re going tobe an albatross.”Building CommunityJim Muzzy and his wife Pamela bothmajored in business at The Universityof Arizona. Jim is a founder and managingdirector of PIMCO, operatingout of the company’s Newport Beach,Calif. offices. With more than $500billion in assets under managementand 800+ employees, PIMCO is one ofthe largest fixed-income managersworldwide. The company prides itselfon staying at the forefront of theindustry, pioneering solutions, andmaintaining a management structurethat allows it to respond quickly to anever-changing global environment.While the couple gives generously toeducation, they also direct their charitablesupport to other areas: the arts,healthcare, and programs for thehomeless and underprivileged. All ofthese, Pamela explains, are essential.“My husband and I have been veryfortunate, so we feel it’s important togive back in ways that make our communitybetter for future generations.”Jim Muzzy photo2 ELLER PROGRESS THE UNIVERSITY OF ARIZONAWWW.ELLER.ARIZONA.EDUSPRING 2006 3

BRIEFINGSProgram PreeminenceFaculty in ManagementInformation Systems drawnational and international honors.At both the undergraduate and graduatelevels, U.S. News & World Reportranks Eller College programs in managementinformation systems (MIS) fourth inthe country. Eller is among only fiveschools to maintain this top-tierstatus since U.S. News began ranking thediscipline in 1989. With that track record,it’s not surprising that the work ofour MIS faculty draws recognition fromfar and wide.The Association for InformationSystems recently published a study ofresearch productivity between 1999 and2003. The study ranked the overallresearch record of the MIS Departmentat #4 and identified the UA as the onlyuniversity with two MIS professors — JayNunamaker and Hsinchun Chen — rankedamong the top 10. Professor Leon Zhaoearned recognition from IBM, and theNational Science Foundation selectedassociate professor Daniel Zeng toparticipate in the World Science Forum.Jay NunamakerRegents and Soldwedel Professor of MIS,Computer Science, and Communication, and directorof the Center for Management of InformationRanked 6th in research productivity by AISNunamaker founded the MIS program at The Universityof Arizona in 1974. In 2004, he received a $1.25 milliongrant from the U.S. Department of the Interior as principalinvestigator researching systems for extractingmeaning from gestures and body movements.Hsinchun ChenMcClelland Professor of MIS and director ofthe Artificial Intelligence LabRanked 8th in research productivity by AISIn January, Chen was elected an IEEE Fellow for “anextraordinary record of accomplishments” in the developmentof medical, intelligence, and security informatics.IEEE — the Institute of Electrical and ElectronicsEngineers, Inc. — is the world's leading professionalassociation for the advancement of technology.Leon ZhaoHoneywell Professor of MISRecipient of the IBM Faculty AwardZhao recently received an IBM Faculty Awardfor collaborative research in services computing andbusiness process management. The highly competitiveaward carries a $30,000 gift recognizing outstandingresearchers and faculty worldwide.Daniel ZengAssociate Professor of MISSelected for participation in the World Science ForumThe National Science Foundation selected associateprofessor Daniel Zeng to participate in the WorldScience Forum and its Young Scientists satellite forumin Budapest, Hungary in November 2005. Zeng'sareas of expertise include security informatics,complex systems analysis, and agent-facilitatedauctions and negotiations.Kauffman Leader Coaches Eller Students as Entrepreneur-in-ResidenceCarl J. Schramm, president and CEO of the EwingMarion Kauffman Foundation, gave a public talk on“Stimulating Entrepreneurial Growth and Opportunityin U.S. Universities” at The University of Arizonain January.The event marked Schramm’s appointment as the2006 Anheuser-Busch Entrepreneur-in-Residence forthe McGuire Center for Entrepreneurship and thebeginning of two days at the Eller College, meetingwith each new venture team to review business conceptsand plan development.Before his current role leading one of the mostinfluential organizations in the study, support, andadvancement of entrepreneurship, Schramm foundedThe Center for Hospital Finance and Management atJohns Hopkins University and a number of companiesin the healthcare and information technology sectors.His accomplishments have made him a Batten Fellowat the University of Virginia, a past Robert WoodJohnson Fellow at the National Academy of Sciences,and two-time recipient of the National Institutes ofHealth Career Science Award.Neil Vance, senior lecturerin the School of PublicAdministration and Policy,takes a practical approachto applied ethics in a newgraduate seminar.Carl J. Schramm, president and CEO of the Ewing Marion KauffmanFoundation, visited the UA in January as the McGuire 2006 Anheuser-Busch Entrepreneur-in-Residence.Ethics Courses Go Beyond “Right and Wrong"to Tackle “Hands-On"After years of working in criminal justice, Neil Vance, senior lecturer in the School of PublicAdministration and Policy (SPAP), saw cracks in the usual line of ethical analysis that focusedon individuals.“I really started to see that there was a lot that an organization could do to eliminate unethical conductthat didn't require that they change the people,” he explains. That stance formed the basis of theundergraduate Ethics in Public Administration course that Vance has taught for several years and nowa new graduate seminar, Ethics in Organizations, created to achieve a closer integration between SPAP,the Eller MBA, and other programs throughout the College.Be clear: These classes don’t dabble in philosophy. They focus on management. Vance works withstudents to make them recognize their own “ethical screens” — values they’ll apply in the workplace —and looks at practical steps that organizations can take to rein in bad behavior. “Think of ArthurAndersen doing Enron’s accounting and their auditing,” he points out. “It’s like having Colonel Sandersguarding the chicken house.”In the end, there aren’t clear-cut right and wrong answers in the courses. “We’re not here to ‘teachethics’ to these young leaders,” Vance explains, “but we can call on them to become aware of how theycurrently think so that they can anticipate how they might respond later, and we can show them, asmanagers, ways they might reduce misconduct in their organizations.”4 ELLER PROGRESS THE UNIVERSITY OF ARIZONAWWW.ELLER.ARIZONA.EDUSPRING 2006 5

BRIEFINGSStudent-Driven ChangeThe Student EmpowermentConference taps the nation’s topachievers to brainstorm solutionsto challenges in education.Seventy students and administrators from15 of the highest-ranked public undergraduatebusiness programs collaborated at the EllerCollege in November to create initiatives totake back to their schools.2005 marked the first year that the EllerCollege hosted the event, which has alwaysconvened at McCombs School of Businessat The University of Texas at Austin, whereit originated.Marketing seniors Jordan Miller and SarahArmand co-chaired the conference committee.Miller lauded participants for their level ofinvolvement. “The students all seemed togenuinely want to make a difference in theirschools,” Miller said. “They had real concerns,but also great ideas to improve their colleges.The conference was successful not onlybecause of the content of the program, butalso because the delegates were truly excitedto be a part of it.”While the attendees looked at a number ofchallenges in education, they identified buildingbetter relations between students and facultyas a top priority. Initiatives the students andadministrators brainstormed to address thischallenge — for example, competitions involvingboth faculty and students — will be pilotedat schools across the country this semester.Participants in the StudentEmpowerment Conference brainstormsolutions to problems facing businessand leadership education.Terry Lundgren ContributesExecutive ExpertiseTerry Lundgren (right) — UA alumnus and president,chairman, and CEO of Federated DepartmentStores (Macy’s, Bloomingdales, and others) — gavethe keynote talk at the Student EmpowermentConference in November. Lundgren addressesinnovation, growth, and change in this issue’sLast Word feature on page 24.The Eller College thanks thesponsors of the StudentEmpowerment Conference:Federated DepartmentStores, Vanguard, EnterpriseRent-A-Car, GEICO, Cintas,Pepsi, and StarbucksNational Academy of Public Administration Inducts Brinton MilwardBrinton Milward, recently elected afellow of the National Academy ofPublic Administration, was foundingdirector of Eller’s School ofPublic Administration and Policy.IRS Honors Lillian Mills forContributions to Tax ComplianceAssociate dean and director of Eller’s School of Public Administration and Policy, H. BrintonMilward, McClelland Professor of Public Management, was recently elected a fellow of theprestigious National Academy of Public Administration (NAPA).NAPA provides advice on issues of governance and public management to governmentleaders at every level domestically and internationally. As part of its 1967 congressional charter,it conducts in-depth research, forums, congressional testimony, and executive briefings. Theindependent, non-profit corporation’s current work includes initiatives related to HIV/AIDSin Sub-Saharan Africa, homeland security, and a potential restructuring of the NationalScience Foundation.Milward is best known for his research on the “hollow state,” circumstances in which extendednetworks of private firms and nonprofit agencies jointly deliver social services. His recentresearch on “dark networks” has been widely cited for its applications to understanding thenetwork qualities of terrorism, human trafficking, drug smuggling, and other illegal activities.This spring, Milward will give talks on dark networks at the University of Southern California,Harvard University, and the Naval Postgraduate School.Lillian F. Mills, associate accounting professor and Stevie Eller Accounting Fellow,was recently presented with the Commissioner’s Award from the Internal RevenueService Large and Mid-Size Business Division, the highest award the Division bestows.The honor recognizes Mills’ work on the task force that created Schedule M-3, theIRS tax form aimed at greater transparency in reporting the differences between taxableincome and financial accounting income for large domestic corporations. TheM-3 debuted last August, replacing the M-1 form for these organizations.Mills became involved in the joint IRS/Treasury task force on the heels of researchthat earned her the Deloitte Wildman Medal from the American AccountingAssociation. Her award-winning paper, co-authored with George Plesko of theUniversity of Connecticut, detailed the inadequacies of M-1 for large companies andthe disparity between their book and taxable incomes.Mills has consulted with the Treasury since 1997. In addition to appearing in academicand industry journals, her work has been reported in The Economist, Forbes,and The Wall Street Journal. Before joining the Eller College, Mills was a tax seniormanager with Price Waterhouse.Public Administration EventsThe School of Public Administration and Policy at the Eller College will host the ExecutiveCouncil Meeting of the National Association of Schools of Public Affairs and AdministrationMarch 31 to April 1. The School will host the bi-annual conference of the Public ManagementResearch Association in 2007.Chris Taylor, U.S. Treasury photoLillian Mills at the U.S. Treasury in Washington, D.C.,where she is spending a year-long sabbatical.6 ELLER PROGRESS THE UNIVERSITY OF ARIZONAWWW.ELLER.ARIZONA.EDUSPRING 2006 7

CONNECTIONSCollaborations and Community Education PromotePublic Service with a Management EdgeEfficient and Effective GovernmentWhen you think “government,” what do you picture? Black-suitedmen and women racing about Capitol Hill?In fact, 53 percent of government employees are at the locallevel, and they almost all have one thing in common: “Everywherein the country we're hearing the same call,” says Paul Melendez, lecturerin Eller’s School of Public Administration and Policy (SPAP) andSouthwest Leadership Program director, “the need for efficient andeffective local government.”“Effective” and “efficient” are adjectives more often associatedwith business management than public service, a fact that ideallypositions SPAP — housed within the Eller College of Management —to play a leading role in broadening the skill sets of public administratorsthrough the College's Southwest Leadership Program forpublic-sector and non-profit professionals.With a newly revised curriculum and format, the Program stilldraws on both academic experts and experienced practitioners forfaculty, but now delivers their combined knowledge in a single,concentrated week of learning.Changes in the curriculum also reflect the fact that the publicsector operates more and more like the private sector. The newprogram adds modules on strategic planning and dealing with themedia to a core body of information on leadership and team building,negotiation, human resource management, and communication.For information on the Southwest Leadership Program, visitwww.executive.eller.arizona.edu/southwestleadership.Albert Elias photoAlbert Elias, director of Tucson’sDepartment of Urban Planning andDesign and a recent graduate of theSouthwest Leadership Program, admitshe was initially skeptical about the valueof the program. Once there, however, hewas impressed by the quality of presenters,who transformed what at firstseemed like it might be familiar subjectmatter. The caliber of his classmatesadded a whole other dimension to theprogram, Elias notes. “I knew right awaythat these were all experienced, highperformingpeople,” he explains. “Therelationships you develop with the otherparticipants are among the best aspectsof this program.”Wider Networks, Broader KnowledgeThe U.S. justice system doesn’t work. At leastnot well enough, according to Roger E. Hartley,assistant professor in the School of PublicAdministration and Policy: “There are a number ofalternative justice programs entering our justicesystem right now because judges, attorneys, andothers feel the current system is ineffective withcertain offenders.”Working with a grant from the National ScienceFoundation, Hartley has partnered with Linda G.Mills, vice provost and professor of social work atNew York University, to explore the outcomes ofone of these alternative systems: peace circles.While traditional systems rely solely on the governmentfor “corrections,” the peace circle modelcreates a group of volunteers in the offender’simmediate community — family, religious leaders,friends, doctors, etc. — to work with the offender,victims, and a supervising public official to determineappropriate sentencing. Their goal is not onlyto make the offenders atone, but also to reintegratethem into society. Each circle relies on awide variety of organizations — public, private, andnon-profit — to accomplish these objectives.“What this program does is widen the networkof justice to community resources,” Hartleyexplains. And there’s the rub. Public administratorsin this kind of model need a number of skills ontop of public policy expertise. They need to be ableto identify and leverage resources, build partnershipsacross organizations, manage funding, andmore. In short, they need to be expert managers aswell as expert public administrators.“These programs require something other thantraditional judges or prosecutors,” Hartley pointsout. “Our students will be dealing with courts thatare much more connected with other agencies.They need to be prepared to operate effectively inthat environment.”Keith Provan partnered with MarkVeazie of the Indian Health Servicein Flagstaff, Ariz. and UA College ofPublic Health professors Lisa K.Staten and Nicolette I. Teufel-Shone to study health servicesnetworks in border communities.Their research was honored withthe 2005 Brownlow Award.Nurses and other healthcare professionals throughout Arizonasharpen their management skills at the Arizona HealthcareLeadership Academy.Award-Winning Research Analyzes Networks in Border Health ServicesPublic service agencies seeking grants today need to do more than show how well theirorganizations perform.They also need to show how well they cooperate.The change in grant requirements reflects a broad, ongoing trend — government, the privatesector, and non-profit agencies working together more and more to jointly deliver services.“The environment has changed,” explains Keith Provan, Eller professor in the Department ofManagement and Policy and the Mel and Enid Zuckerman College of Public Health. “The goal isto increase community capacity. Resources are scarcer and the demand for services is greater.There’s outside pressure to collaborate.”That need to collaborate is at the heart of the study that recently earned Provan andco-researcher Mark Veazie of Indian Health Service in Flagstaff, Ariz. the 2005 BrownlowAward from Public Administration Review for the best article by a practitioner or practitioneracademicteam.In the article, “The Use of Network Analysis for Strengthening Community Partnerships inHealth and Human Services,” Provan and Veazie use network analysis tools to illustrate howSouthwest border communities and organizations tended to overestimate their collaborations.Giving these communities a realistic snapshot of their current networks is a first step in identifyingways to make those networks stronger.Partnering to Advance Healthcare LeadershipThe outstanding success of the flagship Arizona HealthcareLeadership Academy program has led the Eller College, theCollege of Nursing, and the Arizona Nurses Association tolaunch a second-tier advanced program.With funding from a second Arizona Hospital andHealthcare Association grant, the tier-two initiative has beendesigned for more experienced healthcare professionals andthose currently working as managers and administrators.Focus groups involving HR directors from the state’s majorhospitals guided development of the curriculum.“Many healthcare professionals in management have greatexperiential training but little or no formal education in fundamentalmanagement skills,” explains Keith Provan, professorin the School of Public Administration and Policy, whopartnered with Gerri Lamb of the College of Nursing to createthe original Academy. “The Academy’s training creates moreeffective operations. Not only does that make for happieremployees, it leads to better patient care.”For information on the Arizona Healthcare Leadership Academy, visitwww.azhcleadership.org.8 ELLER PROGRESS THE UNIVERSITY OF ARIZONAWWW.ELLER.ARIZONA.EDUSPRING 2006 9

GATHERINGSEller Economists Forecasta Booming 2006Boom. That’s the word Marshall Vest, director of theEconomic and Business and Research Center (EBR), usedto describe Arizona’s current economy to more than 700people at the twenty-fifth annual Economic Outlookluncheon in December 2005.Joined by Dean Paul Portney and Gerald Swanson,Thomas R. Brown Chair in Economic Education, Vest predictedthat consumer spending will scale back in 2006,but losses will be offset by increased corporate spending.Meanwhile, Arizona’s housing economy continues asteady climb, with Phoenix and Tucson scoring some ofthe highest growth rates in the country.EBR’s outlook also indicated growth in manufacturingand noted that recent investments in biosciences have putArizona “on the map” in this coveted field.So what should Arizonans worry about? Beyond thestate’s borders, the same economic monsters loom on thehorizon: the solvency of Social Security, Medicare, andMedicaid; ballooning federal budget deficits and healthcare costs; and dependency on foreign money to financeAmerica’s debt. None of these issues will be solved easily,but Arizonans can be thankful that — at least in the nearfuture — they’re relatively free of local economic snags.Save theHome Price AppreciationD AT EArizona Housing Prices Play Catch-UpHousing prices continue their upward surge in Tucson andPhoenix, both riding the wake of preceding swells in Los Angeles,then Las Vegas.The University of Arizona Executive of the Year Award LuncheonFriday, March 10, 12 p.m. at The Westin La Paloma Resort & Spa, TucsonThe University of Arizona honors James E. Press, President and COO of Toyota Motor Sales, U.S.A., Inc. as oneof the nation’s most exceptional business leaders. Driving U.S. operations for a primary force in automotiveinnovation, Press is taking Toyota — and the auto world at large — to new horizons. Guests may purchaseindividual tickets for $60 or a table of 10 for $600 and may choose to donate seats for student attendees.For information, visit www.eller.arizona.edu/eoy.Leadership Speaker Series5 p.m. at McClelland HallMarch 23: Patrick Khuse, Business and Ethics Speaker/ConsultantMarch 30: Lloyd Sydney, Director of Human Resources, Bourne Partners, LLCApril 7: Mark Lapman, President and CEO, Independence InvestmentsApril 13: Jay Geldmacher, President, Astec PowerMid-Year Economic UpdateWednesday, June 7, 7:15 a.m. at the Doubletree Hotel, TucsonPresented by the Economic Business and Research Center, this annual event offers amid-year look at Arizona’s economy. Reservations required.For information, visit www.eller.arizona.edu/outlook.Eller and Engineering ExemplarsThe Eller College and College of Engineering honorleaders in management and technology.Left to right: Tom Peterson, dean of the College of Engineering; Paul Portney, dean of the Eller College; UApresident Peter Likins; William Mensch, Jr., J. Steven Whisler, Bruce Halle, J. Burgess Winter, and Donald Budinger.With greater collaboration every year, TheUniversity of Arizona’s College of Engineeringand Eller College of Management are shapingthe next generation of leaders, a cadre ofmanagers and scientists with both businessacumen and technological expertise.In December, the Colleges for the seventhyear honored individuals who exemplify thepotential of enterprise built on these combinedskills at the 2005 Technology andManagement Awards Luncheon.J. Steven Whisler was recognized as TheUniversity of Arizona’s Technology Executiveof the Year. Chairman and CEO of thePhoenix-based Phelps Dodge Corporation,Whisler leads a Fortune 500 company thatemploys 15,000 people in 27 countriesand produces some 2.5 billion pounds ofcopper annually.The awards ceremony at The ArizonaBiltmore Resort & Spa also recognized fiveother outstanding role models for students ofbusiness and science.J. Steven WhislerChairman and CEO of Phelps Dodge CorporationThe University of Arizona Technology Executive ofthe YearDonald V. BudingerChairman and Founding Director of The RodelFoundationsCollege of Engineering Distinguished Service AwardPatricia WinterFormer President of The MagheramorneFoundationJ. Burgess WinterFormer CEO of Magma Copper CompanyEller College Distinguished Service AwardWilliam D. Mensch, Jr.President of Western Design CenterCollege of Engineering Lifetime Achievement AwardBruce T. HalleChairman of Discount TireEller College Lifetime Achievement AwardEd Stiles photos10 ELLER PROGRESS THE UNIVERSITY OF ARIZONAWWW.ELLER.ARIZONA.EDUSPRING 2006 11

FEATUREA YEAR FOR GROWTHBolderBRIGHTER&BetterPreparedA year of evolutionat the Eller Collegetakes studentsto new heightsIn the last issue of Progress, Patrick Jones,director of The University of Arizona Officeof Technology Transfer, ended the magazinewith a pointed summation of what it takesto succeed in technology transfer: It's evolveor die.The same can be said for colleges anduniversities, and 2005 was a year of remarkableevolution at Eller. The College launchedthe Eller Executive MBA to serve the fastestgrowingsegment of graduate managementstudents. At the same time, Eller forgednew dual-degree programs combining anMBA with graduate degrees in scienceand technology.Undergraduate Programs piloted a seachangein the curriculum for first-year professionalstudents with the Core Projectrequirement, integrating coursework in linewith real-world business challenges. TheHonors Program also ratcheted up curricularreturn on investment with MBA-likefield projects.Add to these innovations the College'sfirst national case competition, new courses,new conferences, and more, and you have ared-letter year of educational change fromwhich students emerge bolder, brighter, andbetter prepared.in experience,confidence, andexpertise.Eller junior Cleveland Miles, IIIpitches the concept for his BookXchange venture plan atUndergraduate Programs’ firstCore Project Expo.12 ELLER PROGRESS THE UNIVERSITY OF ARIZONAWWW.ELLER.ARIZONA.EDUSPRING 2006 13

FEATUREA NEW WAY TO AN MBAWith a curriculum constructedfrom the ground up, the EllerExecutive MBA offers regionalleaders a distinct choice ingraduate management education.What it Takes to SucceedEverywhere in the world firms compete like neverbefore. To succeed, organizations need to be smarter,faster, and more agile than ever. Within those companies,executives had better clear that same bar if they’re goingto effectively lead the legions of eager and educated professionalswho are today’s rank and file and tomorrow’stop brass.Add to this the fact that many professionals are unwillingto take two years off from their careers and it’s easy tounderstand why executive MBA programs have becomethe fastest-growing segment of graduate managementeducation. Organizations and individuals are recognizingthat while it’s impossible to overvalue years of experience,formal management education matched with years ofexperience builds potential in a way that isn’t just attractive,it’s imperative.To help meet the need for this specialty segment ofMBA education, the Eller College launched the EllerExecutive MBA program in 2005 — a program unlike anyother in the region. Several elements set the Eller EMBA ina class apart. The most easily recognized is program length— just 14 months as compared to the standard 24 months.While the shorter program length is appealing to busyexecutives, it’s the story behind that accelerated timeframe that truly distinguishes the program.Accelerating a Two-Year Degree to 14 MonthsTo achieve a 14-month span, the Eller Executive MBAbypasses some of the most basic components of the MBAknowledge set. It also packs an extra eight hours of classinto the month as compared to the full-time program,even though EMBA classes meet only every other Fridayand Saturday. An intensive international trip (to China forthe 2006-2007 EMBA) completes the acceleration, condensinginto just ten days the equivalent of three monthsof course hours in the full-time program.“One of my responsibilities is lookingat new products that the marketingdepartment has come up with,assessing their market potential. Partof that process is financial analysis.I’m asking new questions about thatprocess, where they get theirnumbers, and we’ve already madechanges to how they do their projections.I can look at this informationin a way that I couldn't before.”— Stephen Sundstrom, InternationalSales and Marketing Manager forRain Bird International and participantin the inaugural Eller ExecutiveMBA programA Curriculum Mapped to NeedsBut the heart of the program — the innovation thattruly sets the Eller EMBA apart from other EMBA degrees— is the curriculum. In creating the Eller EMBA, theCollege’s leadership identified critical management knowledgesets. Next, they looked at the MBA body of informationand broke it down to its fundamental elements —units of knowledge from all the traditional MBA disciplines,like finance or marketing. Finally, they combinedthose fundamental elements not into courses mappedto departments, but mapped instead to those criticalmanagement knowledge sets.The resulting modules deliver information in the waythat working executives need and use it — exploring howto build knowledge management into business processes,for example, or grow an enterprise through a customercentricapproach. At the same time, they more efficientlyintegrate that knowledge, pushing participants to learn asmuch or more compared to other programs, but in ashorter amount of time.Learn MoreProfessionals interested in the Eller EMBAcan learn more and register for informationsessions at www.EllerEMBA.com or by calling(888) Eller-MBA (355-3762).Casting a Wide NetIn January, billboards, newspaperarticles, and radio spots announcedthe Eller Executive MBA’s move intoPhoenix, Ariz. Viable participants —professionals in high-level leadershiproles — are dispersed throughout theSouthwest, explained associate deanBrent Chrite, director of Eller MBAprograms. Offering the Eller EMBA inPhoenix creates a more accessibleeducation option for this distributedtalent base — an option distinct fromother programs throughout theregion. The Eller EMBA begins inPhoenix this August.THE ELLER EMBA AT A GLANCEWHO:Designed to serve high-level leaders and accomplished professionalsWHAT:An Executive MBA program delivering two years of management knowledgein just 14 monthsWHERE:Phoenix yearly; Tucson every other yearWHEN:The program starts at the end of August and continues through the beginningof November, approximately 14 months; classes typically meet Fridayand Saturday every other week with participants staying on site overnightWHY:To support national growth and leadership in an increasingly competitiveglobal economyHOW:Through a distinctive, integrated curriculum taught by experts from both theacademic and experiential worlds; unlike other programs, the Eller EMBAdeconstructs the traditional MBA curriculum and combines its vital elements,not into courses built on topics like “marketing” or “accounting” but intomodules around real-world issues like "The Competitive Landscape andFundamentals of Strategy”Julie Krell photoBillboards, news articles, radio spots, and print ads announced theEller Executive MBA’s arrival in Phoenix.Innovation ProjectThe Innovation Project marks anotherdistinctive element of the Eller EMBAcurriculum. Think of it as the entireEMBA faculty and class acting as anextended consulting team for a companyproject you spearhead.All EMBA participants define significantprojects to complete for theirorganizations — objectives on the scaleof creating a merger and acquisitionplan or analyzing the profitability of abusiness unit. They then completethose projects within the program,applying relevant knowledge as theyprogress through the curriculum modulesand drawing on the experienceand expertise of not only faculty, butalso class peers.14 ELLER PROGRESS THE UNIVERSITY OF ARIZONAWWW.ELLER.ARIZONA.EDUSPRING 2006 15

FEATUREDUAL DEGREES PREPARE GRADUATES TOCHANNEL KNOWLEDGE INTO GROWTHTom Peterson, dean of the College of Engineering,with Kate O'Toole, one of the first students in thenew MBA + Science dual degree program.The Eller College has long recognized the value of combining businessand management studies with other fields. Increasingly, theCollege has focused growth in this area along paths of science andtechnology as the basis of corporate value shifts from tangible propertyto intellectual property.In 2005, the Eller College launched the first of a series of dualdegreeofferings forged under the direction of Amar Gupta, Thomas R.Brown Chair in Management and Technology, aimed at creating businessleaders with a deep understanding of technology and the managementskills to effectively leverage knowledge assets in that area.IBM and other organizations will sponsor participants in the programbeginning in 2006.The first three of these dual degrees combine an MBA with master’sdegrees from the Colleges of Science, Engineering, and OpticalSciences. Kate O’Toole had already enrolled to pursue a master’s inElectrical and Computing Engineering (ECE) when she signed on for theMBA + ECE dual degree. As an intern, she had observed managers whosupervised scientists but lacked science expertise themselves. “There area lot of good engineers who are bad managers, and good managerswho don’t manage engineers well,” she explains. The problem: businessleaders who couldn’t distinguish the most vital contributors, assess thecomplexity of technological issues, or reasonably project the time andresources needed to overcome them.At the highest level, the dual-degree program aims to accelerateinnovation. In a knowledge-based economy, successful organizationsbuild on intellectual property the way industrial-era giants combinedmortar and steel. That means recognizing new applications for technology,assessing their viability, and taking them to market. These aren’tskills you learn in the lab. But then again, not many VPs can unravel aDNA sequence or talk computational linguistics over lunch.ENTREPRENEURSHIP COMPONENTWith the big-picture goal of accelerating innovation, the new MBA +Science dual degrees are the first worldwide to incorporate entrepreneurshipeducation as an integral part of the program.Students complete part of their entrepreneurship education in theclassroom. Extensive feasibility analyses on the technologies exploredin their theses serves as the second part of the entrepreneurship experienceas students spend a summer exploring ways in which thosetechnologies could be applied in business ventures.For the final component of the experience, each student spends 100hours evaluating an entrepreneurial firm along 12 business dimensions.Uniting Management and TechnologyFor information on the Eller MBA + Science dual degrees, contactDualMastersMBA@eller.arizona.edu.ELLER ENTREPRENEURSHIPTAKES INNOVATION IN-HOUSEEntrepreneurship is fundamentallyabout recognizing and capitalizing onopportunity. So when Sherry Hoskinson,director of the McGuire Center forEntrepreneurship, saw an opportunity tomake an already top-rated program evenbetter, she seized it, evolving a new modelfor Eller entrepreneurship.With a changing economic environment,the outside professionals who traditionallytaught curriculum and mentored teamswere increasingly active in concurrent ventures,unable to give the time and commitmentneeded in their critical program role.At the same time, the roles of developingcurriculum and teaching it wereeffectively separate.“Every year we were adding programmanagement to stay in that modelbecause that's how entrepreneurshipeducation had always been done,”Hoskinson explains.Not any more. Evolving the entrepreneurshipprogram beyond tradition,the McGuire Center model is built onthree foundations:Mentors-in-ResidenceThis new role integrates the two simultaneouspaths of the program: classroomlearning and venture development. Now,the faculty who develop curriculum teachit, and so know it inside and out. They alsoserve as primary mentors for all the ventureteams, bringing in outside mentorsfor niche roles in technology, communication,and investment. One of the biggestchallenges of entrepreneurship educationis that all ventures are different and allprogress at different rates at differenttimes. Because the faculty who developthe curriculum now teach it and mentorthe teams, they can calibrate class work toeach team’s current progress and movethose teams forward effectively.The Idea PathBecause every venture is different,teaching entrepreneurship by conventionalmethods would require a different textbookfor every team. Hoskinson and theMcGuire Center team now meet thischallenge with The Idea Path, a constructfor the phases of any innovation, newbusiness, or otherwise. Serving as aroadmap to venture development, TheIdea Path ensures that ventures matureconsistently even while they mature atdifferent rates.Venture BenchmarksTen benchmarks identified by theMcGuire Center team function as buildingblocks that combine to create the stagesof The Idea Path. Teams must “test out” ofeach phase before moving to the next.They pass that test by having met thebenchmarks relevant to that stage of theIn 2005, Sherry Hoskinsonbecame director of the McGuireCenter for Entrepreneurship,advancing from her former roleas associate director whenGary Libecap stepped downafter 21 years of leadership. TheEller College is actively seekingan executive director — see thestory on the Muzzy Chair onpage 3 — who will bringresearch expertise to Ellerentrepreneurship.process. No team can begin, for example,the Validation Phase of The Idea Path —identifying competitive advantages, barriersto entry, etc. — before they meet thethree benchmarks of the Innovation Phase:identifying a concept and its opportunities,demonstrating knowledge of relevant markets,and understanding competition theventure would face.Not every innovation succeeds, but if it’sdeveloped through the phases of The IdeaPath, chances are good that it will. Withdue diligence behind it, the new model forentrepreneurship education created in2005 was, indeed, successful. “Entrepreneurshipis a highly ambiguous disciplinewith a lot of opportunities for disconnects,”Hoskinson says, adding with asmile, “This model sews up all the gaps.”16 ELLER PROGRESS THE UNIVERSITY OF ARIZONAWWW.ELLER.ARIZONA.EDUSPRING 2006 17

FEATUREPUTTING KNOWLEDGE TO WORKCore Curriculum Integration and Honors Field Projects give Ellerundergraduates new opportunities to put their education to the test.Connecting the Dots in Business EducationRemember word problems from high school math? You have$20 and need to get across town 20 miles as quickly as possible.Taxis cover half a mile a minute at $1.50 per mile, while shuttlesaverage 15 mph at $1.00 per mile. . . Most students groaned, butword problems operate on a basic tenet of education — we learnbetter when we see how that knowledge applies in a meaningfulcontext, connecting the dots between school and life.In 2005, Undergraduate Programs expanded that conceptbeyond a single assignment, even beyond a single class. The CoreCurriculum Integration Project connected learning from requiredcourses in accounting, business communication, management andpolicy, and marketing.Working in cross-class teams for the span of the first semesterof their senior years, students created new venture business plans.The projects culminated in not only the written plans, but alsoposter displays for the Core Project Expo and competitive oralpresentations to panels of judges from outside the College playingthe roles of investors.The Core Project was the result of feedback from students askingfor ways to better integrate their studies. A team of facultyworking with learning technologies manager Veronica Diaz identifiedbusiness plan development as a process that links critical elementsfrom various disciplines.Thus, the marketing component of the project was evaluated, inpart, on tasks such as identifying target markets, detailing a strategyfor segmenting those markets, and reporting on marketresearch. Creating pro forma statements drew on accounting skills.Organizational charts and leadership strategies pulled managementand policy into the mix. Business communication instructorsevaluated the plan itself: the logical development of information,organization and clarity, style and tone.The excitement of 400 juniors filled McClelland Hall as theypresented their semester-long work at the Core Project Expo inDecember. “This is the culmination of student initiative and facultycollaboration,” said Pam Perry, associate dean and director ofUndergraduate Programs. “The student enthusiasm and the qualityof these projects suggest that course integration is working.”Mentors AddReal-World InsightThe first Core CurriculumIntegration Project didn’t just linkup classes to give students a senseof how what they’re learning mightapply in the real world. It went astep further and secured professionalmentors to work with all the teams.The Eller College sends a specialthanks to Sharon O’Brien and these12 alumni— brokers, teachers, entrepreneurs,company presidents, andmore — for volunteering their timeand energy with 95 teams!Jennifer Andrews MBA ‘02Marisa Aragon MBA ‘05Steve Erickson ‘05Kevin Fechtmeyer ‘05Travis Hannon ‘02Clayton Hubbs ‘05Carolyn Kraus MBA ‘04Lea Marquez-Peterson ‘92Matt Mertel ‘97Jason Nolander ‘85Troy Ruboyianes ‘00John Sparks ‘03Honors Consultants Wow Real-World Clients“This is the first class where we’ve been able to do this. To me, this is asgood as any internship I’ve had — probably even better because of the creativepower you gave us.”Those were the words of Daniel Shlossman, marketing senior, addressingthe leadership team of Solar Industries, one of the companies that hostedstudent consultants during Eller’s first semester of Undergraduate HonorsField Projects last fall.Solar Industries is a growing manufacturer of skylights and mirrored doors.The students’ challenge: to redesign a box for one of its products. Soundsimple? It’s not, something the team members quickly learned as theybalanced issues concerning the size of the box, how it’s displayed in stores,how different distributors’ racks are designed, how easily the product can betransported, and whether or not it will get mashed in transit. Then there arecosts — costs that fluctuate widely based on small design details. And thereare the design details themselves — some vendors recognize value inpackaging design and will pay for it. Others won’t.The challenges didn't daunt the Eller Honors students. They energized them.That energy and enthusiasm, as much as the marketing skills the studentsbrought to the table, made the project an incredible success, according toBrad Thompson, national sales manager for Solar Industries. “The companywas founded on youth and energy — we’re getting old,” Thompson joked.Kidding aside, Thompson and the rest of the Solar Industries team, includingowner Don Medoff, took the project — and the students — very seriously.When the students and the Solar Industries team had finished discussing thefinal box design in the project’s culminating presentation, Medoff took thediscussion to the next level. “I’m looking to build a bigger relationship,” hesaid. “I know that the key to business is young people like this.”Core Project ExpoThe entire class of first-semesterjuniors — some 400 students — proudlypresented months of work at the firstCore Project Expo in December. Thebusiness plans on display — rangingfrom multi-functional ATMs to aPhoenix-Tucson light rail system —were the culmination of a pilot tomake core education more meaningfulby connecting elements from multipleclasses in a broad, long-term challengelike those that students will face intheir careers.Honors Field ProjectsLeft to right: Honors students JenniferLipski and Christina Andrews (seniors)with Jessica Hardee and Brett Major(juniors) at a booth showcasing outcomesof the pilot Honors Field Projects.Second-year MBA students — who hadalready completed their own field projectconsulting — mentored each of the12 teams. Randy Accetta, businesscommunication adjunct instructor,conceived the projects and collaboratedwith Eller Exchange program managerTammy Farris to recruit local organizationsfor the consulting projects.18 ELLER PROGRESS THE UNIVERSITY OF ARIZONAWWW.ELLER.ARIZONA.EDUSPRING 2006 19

FEATUREALUMNI NOTES &PROFILESINTEGRITY ON A NATIONAL SCALEEller’s 2005 National Ethics Case Competition challenged studentsfrom 13 U.S. universities to integrate principles and profit.News from AlumniUpdate your contact information and tell us what’s new:www.eller.arizona.edu/alumni/updatesIt’s true that “integrity” was the wordmost looked up on Merriam-Webster’sOnline in 2005. But with executives fromWorldCom and Tyco convicted and awidening wake of unease rippling fromthe guilty pleas of Capitol Hill’s leadinglobbyist, it’s easy to believe that ethicalleadership is just a quaint idea, long deadif it ever existed.The Eller College is working tochange that.In October, the College hosted theNational Ethics Case Competition — theevolution of last year’s regional competitionand a new high point for theCollege’s E-tegrity (Eller Integrity) initiative,which promotes ethical business,decision-making, and personal conduct.Competing students took on the rolesof executives at a construction companyfaced with an all-too-common dilemma:whether or not to follow the competitionand use illegal labor to lower costs.Ingenuity was pushed to the limit asteams weighed social, legal, and politicalheat against a seemingly fatal competitivehandicap.Judges gave top honors to Eller undergraduatestudents Julia Joens andSpencer Mosness, both economics seniors,outperforming co-finalists from OregonState. Their winning solution eschewedusing illegal labor and focused on cultivatingan alternative labor force frommarginalized populations, tapping governmentgrants for training programs andgovernment-funded business developmentincentives to offset extra costs.“We wanted to find a way to avoid takingthe easy way out,” Joens said,explaining the extensive research that laidthe foundation for their catalog of creativesolutions. “It wasn’t an option tobankrupt the company, so we had to finda complete and viable solution.”Next year, the growth of the eventcontinues as Eller expands the Ethics CaseCompetition to include internationalteams. “Our namesake, Karl Eller, hasalways emphasized the importance ofintegrity in business,” said Dean PaulPortney. “That legacy has become a definingelement of our programs, so it’s fittingthat we take a leading role in educationwith this competition.”Joining The University of Arizona, 12business schools sent teams to theNational Ethics Case CompetitionArizona State UniversityBrigham Young UniversityOregon State UniversityPennsylvania State UniversitySan Diego State UniversitySeattle UniversityUniversity of MinnesotaUniversity of Southern CaliforniaUniversity of Texas at AustinUniversity of UtahUniversity of WashingtonUniversity of WyomingCity of Tucson photoIn MemoriamLewis C. Murphy, former mayor of Tucson, died onDecember 1, 2005, at the age of 72.Murphy graduated from The University of Arizonawith a bachelor’s degree in business administration in1955. Completing three years as a pilot in the U.S. AirForce, he returned to the University to earn a lawdegree in 1961. After successful careers as a privatelawyer and then trust officer, Murphy became Tucson’scity attorney in 1970.Murphy will be remembered as a model statesmanand effective leader, presiding over the City of Tucsonas mayor from 1971 to 1987, during which time thecity swelled by some 120,000 residents and nearlydoubled its area. Murphy’s tenure as mayor saw himtenaciously pursue and succeed in passing many initiatives,not least of which was his leading role inestablishing Tucson’s permanent Community FoodBank, an organization to which he continued to givehis time and energy for 12 years on the Board ofDirectors after leaving city government.Legislators and council members who worked withMurphy have described him as “a force of nature” —politically moderate, but bold, driven, and devoted tothe city he dearly loved.1970sTom Nelson ’72 BSBA Accounting. After 25+ yearsworking at Tucson Electric Power Company inaccounting, internal audits, and human resources,Tony uses his experience and knowledge to consultwith companies throughout Arizona, New Mexico,and Southern California with Resources GlobalProfessionals, in Phoenix, Ariz. twinelson@aol.com1980sTom Russell ’81 BSBA Finance. Tom is a golfprofessional in charge of operations at Rivers EdgeGolf Course in Needles, Calif. ndlsgolf@citlink.netTony Lonigro ’86 BSPA Health ServicesAdministration. Tony was promoted to colonel in theU.S. Air Force Medical Service Corps and is commanderof the 325th Medical Support Squadron atTyndall Air Force Base in Panama City, Fla.alonigro@comcast.netJohn Hajny ’88 BSBA Marketing. John is regionalmarketing director for Regional Lincoln FinancialGroup, a financial services company in Philadelphia,Penn. jchgatsby@aol.comPete Pasquale ’88 BSBA Business Administration.Pete conducts national defense strategic and operationalplanning and execution as a U. S. Navy commander.trumpet305@hotmail.com1990sBryan Smith ’90 BSBA Marketing. As a seniorbusiness analyst, Bryan designs natural gas rates andbudgets in Georgia and Alabama with Municipal GasAuthority of Georgia in Kennesaw, Ga.bsmith9958@hotmail.comJoshua Jacoby ’92 BSBA Accounting and Finance.Joshua is operations delivery leader for FidelityInvestments in Marlborough, Mass.jmj@joshuajacoby.comAlexander Price ’97 BSBA ManagementInformation Sysytems. Alexander is a vice presidentwith JPMorgan Chase, working in asset andwealth management in San Francisco, Calif.Stephen Avila ’98 BSBA BusinessManagement. Stephen is director of retail servicesfor the retail support division of FederatedDepartment Stores, working on all aspects offinance, administration, and credit services withFACS Group, Inc. in Tempe, Ariz.sjavila113@cox.net2000sJohn Rothstein ’00 BSBA BusinessManagement. John is beverage manager for theStarr Restaurant Organization in Philadelphia,Penn. johnrothstein@gmail.comBrad Tuffs ’00 BSBA Marketing. Brad is healthservices manager for Concentra Medical Centerin Cave Creek, Ariz.Eric van Leeuwen ’03 BSBA Accounting. Aftergraduating from the UA, Eric moved to NewYork City to pursue a master’s degree atFordham University. He finished his degree inDecember 2005 and expected to begin work inNew York’s financial district at the beginning of2006. vanleeuwen.eric@gmail.comFred Hamilton ’03 BSBA Marketing. Fred is asupply specialist for the U.S. Army in Fort Hood,Texas. fham78@aol.comDave Cowen ’04 MBA. Dave is a controller forUSI Affinity - Bertholon Rowland InsuranceAgency in New York City, N.Y.dmcowen@optonline.netCrystal Espinoza ’05 BSBA Public Managementand Policy. Crystal is a contract specialist for theU.S. Department of the Army: C-E LCMCAcquisition Center Sierra Vista, Ariz.Espy1441@aol.comMichael Arnold (left) and Michael Sturnfrom Oregon State University finishedsecond in the 2005 National EthicsCase Competition.20 ELLER PROGRESS THE UNIVERSITY OF ARIZONAWWW.ELLER.ARIZONA.EDUSPRING 2006 21

ALUMNI NOTES &PROFILESA Legacy of LoveAlbert Makkay, BSBA ’61,MarketingALUMNIprofileFrom Marshmallows to MarsTamsin Campbell, MBA ‘92ALUMNIprofileUA Alumni Association photoThe UA Alumni Associationpresented Albert Makkay with theLeo B. Hart Humanitarian Awardin November 2005. The award —named for the UA alumnus whohelped secure education forchildren of the Great Depression’smigrant workers — honorsMakkay’s lifetime of work in socialjustice and welfare.When dean Paul Portney announced that Al Makkay would receive the Leo B. HartHumanitarian Award at the 2005 Homecoming alumni awards ceremony, he expressed ahope that students in the audience might go on to become the Al Makkays of the future.Certainly the world will be a better place if that hope is realized.Makkay’s legacy began humbly. Lacking money for college, he joined the service to takeadvantage of the G.I. Bill. It helped, but he needed to work to make ends meet. Despite twojobs and a heavy course load, Makkay still made time to give back to his community: As astudent, he became involved with the Beacon Foundation and helped build the first BoysClub of Tucson.That effort was an early indicator of what would become a lifetime of service. For years,Makkay has worked with Korean War and Vietnam veterans, efforts that earned him theCrystal Award, the National Association of Broadcasters’ highest award for community service.But Makkay’s work on behalf of veterans makes up only a part of his and his wifeMaureen’s philanthropy, which includes building playgrounds for children, establishing highschool scholarships, and giving to hospitals. More recently the couple has worked to changelives in Honduras where children were unable to attend school for lack of proper clothing.The Makkays bought the families sewing machines and fabric so that the mothers could sew.“The more you give, the more you get back.”Facing the next hurdle, lack of transportation, they bought buses. When the distance provedtoo far for all students to travel, they built a dormitory. Other efforts in the communityhelped forge a soymilk cooperative and establish programs to improve diet and nutrition.Despite the magnitude of the transformation, Makkay references it unpretentiously. “Themore you give, the more you get back,” he says. “I honestly believe that.” That same modestysurfaces when asked what in his life he is most proud of. His answer isn’t any of the aforementionedaccomplishments. It isn’t launching the first rock station in Cape Cod and goingon to build a broadcast network that pulled in $32 million when sold two years ago. It isn’this world travels covering now 135 countries, nor his and his wife’s recent induction into theSovereign Order of Malta, an ancient Catholic organization comprised of only 12,000 membersworldwide, all working for social justice and aid.Instead, he answers without hesitating, “My family.”Maureen Makkay, a teacher, joined her husband in radio when they moved to Cape Cod.The couple met in Tucson in 1962 and were married five months later. They raised a familyof three, and while many kids prefer to keep a time zone or two between them and theirparents, the Makkay’s children — Allison, Albert, and Colleen — all decided to leave successfulcareers and bring their MBAs to work with their parents in building their broadcastingdream. Even today, the entire family lives in a few-mile radius, ensuring that Al and Maureenhave plenty of time with their six grandchildren.“I’m very thankful to have the family I have,” Makkay says. “My wife moved around a lotas I went where the jobs were. My kids were ‘radio brats’ — always moving like a militaryfamily. And when they decided to join the business, they were potentially giving up a lot.”The secret of their achievement working together as a family? With candor and sincerity,Makkay sums it up simply: “It’s a lot of love.”To microbes, a few molecules of H 20 look like a great place to raise a family. It’s aspirations likethese that keep Tamsin Campbell in business.As president and CEO of Decagon Devices, Inc. — a company her father launched in 1983 —Campbell, MBA ’92, helps steer the technology that has won the company the business of 80 of thetop 100 food companies when it comes to ensuring that products are safe from bacterial growth.Decagon’s edge in the market stems in part from their focus on measuring “water activity” infoods — jerky, marshmallows, bread, or just about anything that isn’t powder dry — rather thanwater content. Think of water activity as bachelor and bachelorette water molecules. While somewater molecules are bound to salts and chemicals, others fly solo. It’s these freewheeling water molecules,the ones that microbes need to grow, that matter. Thus, every food recipe has a differentlevel of safe moisture content, but every recipe has the identical level of safe water activity.Decagon’s instruments that quickly and accurately measure the latter help companies save big ontime and money in food development and quality control.While Campbell lives and works in Pullman, Wash. in the beautifully idyllic region known as ThePalouse, Decagon has its sites on a distant target. The company will travel to Mars with a speciallydesigned probe incorporated into the Phoenix Mission rover that will land on Mars in 2007. Stuckinto a scoop of Martian soil, the probe will report any presence of unfrozen water. If found, it wouldbe the first indicator that Mars could potentially sustain organic life — and that’s the kind of workthat doesn’t just go down on a resume, it goes down in history.Augusto Sasso with two goodreasons for not working 120hours a week: daughtersGeorgia (left) and Caroline.Augusto Sasso photoAs president and CEO of DecagonDevices, Inc., Tamsin Campbellmay play a role in one of themost important discoveries inspace exploration.Getting What You Want, And Wanting MoreAugusto Sasso, MBA ’98A job in investment banking is no easy score. But when Augusto Sasso set out to get a jobwith Donaldson Lufkin & Jenrette, Inc. (DLJ), the company was in the middle of an acquisition.He worked out his own financial model for the transaction and made repeated trips to DLJ toget it seen. He loitered by elevators. He tracked down e-mail addresses. He was, he admits, astalker, but it worked.For the next six years, Sasso lived his dream career from DLJ’s Los Angeles offices. But 120-hour weeks and traveling 300,000 miles a year didn’t lend itself to a growing family, a fact thatultimately led Sasso to Manhattan Beach, Calif. to become a founder and managing partner ofPreservation Partners Development (PPD). He still flexes his finance prowess, but now for lowincomefamilies. PPD buys and rehabilitates affordable-housing properties, and that’s where hisexpertise comes into play — creatively building finance packages that rival what “open market”developers can pay.His passion for meaningful action has also led Sasso to create the non-profit Santa’s Truck,which provides gifts to low-income families. He recalls how, in the organization’s first year, heparked a Ryder truck full of gifts in a family’s driveway. A six-year-old boy, eyes wide, said,“Wow, Christmas presents! Is that Santa’s truck?” The name stuck, as did the memory of theboy's happiness, erasing any doubts Sasso might have had about stepping away from the careerhe fought so hard to win. “That’s exactly why I left,” he says. “If I can affect someone that much,I did the right thing.”Tamsin CAmpbell photo22 ELLER PROGRESS THE UNIVERSITY OF ARIZONAWWW.ELLER.ARIZONA.EDUSPRING 2006 23

LAST WORDLast Wordon Changewith Terry Lundgren,CEO, President, andChairman of FederatedDepartment Stores, Inc.PROGRESS: How big of a role does innovation play at Federated? How is it builtinto operations?Terry: Certainly, innovation plays a major role in our company. The consumer is changing,and we need to change along with our consumer to stay ahead of our competitors.While we talk about the bigger, sweeping changes in our corporate strategy group everyweek, innovation also lives and breathes throughout the organization. Many times ideascome bubbling up to us from individuals who are on the front line. I also think peopleappreciate it when those ideas are communicated back to them, so whether an ideadidn’t quite work out or it did get accepted, we communicate that back to make surethat they’re in the loop.PROGRESS: When you first started at the U of A, you wanted to play basketball. Whenthat didn't work out, you went into pre-veterinary medicine, then switched tracksagain. How did your college experiences help shape who you are now?An alumnus of The University ofArizona, Terry Lundgren was thekeynote speaker at the StudentEmpowerment Conferencehosted by Eller in 2005 (see storyon page 6). He presides overFederated Department Stores,Inc., one of the nation's premierretailers, encompassing theMacy's and Bloomingdalesbrands as well as many otherwell-known names in retail. Thecompany operates some 1,700stores in 49 states, the Districtof Columbia, and Puerto Rico.Terry: To tell you the truth, I was really pretty nervous at that point. It was the end ofmy sophomore year, and I didn’t have a clue about what I was going to do. I was in afraternity house, having a great time, then I got this dire phone call from my father: Wewish you well, son, but we can’t continue paying your way through college. My fathercouldn’t afford it — he had six kids and was working two jobs. When I got that call, Ithought my life was over. But I finally just picked myself up and said, “Wait a minute,I’m not going to give this up. I love my college life. I’m going to figure this out.” While itseemed like a very difficult and chaotic time, when I look back, it’s the absolute best andperfect thing that could have happened to me at that time. It forced me into evolvingas a person, getting serious about my education and my future.PROGRESS: Anytime we make a change there’s the chance it will turn out to be a badmove. How do you temper that risk?Terry: I know that as long as I’m doing the right thing and continue to work very hard,listen to smart people around me before I make decisions, and surround myself withstrong, talented, bright leaders, I’m not going to get too far off track. I think people alsohave to measure risk against the status quo. A lot of times people are more comfortablewith not making a change, but when they look back, the status quo was, in fact, a muchbigger risk and what ultimately hurt them.PROGRESS: In your experience, what’s the biggest obstacle to change?Terry: I think one of the biggest obstacles is success. If you feel like you’re already successful,you might say to yourself, “Why does the company need to change?” I wouldargue that in most businesses, true success is measured not in a moment in time butover time. And to have success over time, you need to continue to grow as a leader.When I came to Federated, we were at $7 billion in sales, and this year, 2006, we’ll see$28 billion in sales. If I was the same leader today that I was back when I was runninga $200 million business or even a $2 billion business, I wouldn’t have the chance ofsuccess that I believe I have now.24 ELLER PROGRESSTHE UNIVERSITY OF ARIZONA

The Eller College ofManagement honorsJAMES E. PRESS2006 EXECUTIVE OF THE YEARPresident and COOToyota Motor Sales, U.S.A., Inc.AWARD LUNCHEONFriday, March 10, 2006 • 12:00 to 1:30 p.m.The Westin La Paloma Resort & Spa • Tucson, ArizonaToyota’s Secret WeaponWith the announcement of the long-anticipated hybrid evolutionof the United States’ best-selling car, the Camry, Toyotais poised to surge ahead of the automotive pack. Leading U.S.operations for one of the most innovative automakers in history,James E. Press is taking Toyota — and the auto world at large —to new horizons. The Eller College of Management is proud tohonor the man whom Fortune magazine has called Toyota’s“secret weapon,” someone with “as much influence over thecourse of the American auto industry as anyone else alive.”

EllerPROGRESSELLER COLLEGE OF MANAGEMENTUndergraduates fromamong the top 20business schoolsconvened at the EllerCollege for the 2005Student EmpowermentConference. See storyon page 6.WWW.eller.arizona.edu • Email us at progress@eller.arizona.eduEller College of ManagementPO Box 210108Tucson, Arizona 85721-0108NONPROFIT ORG.U.S. POSTAGEPAIDTUCSON, ARIZONAPERMIT NO. 190Change Service Requested