Make It Happen by Harvard Undergraduate Women in Business

Make It Happen 3rd Edition, Fall 2008

A Closer Look at Finance

Inside the life of an investment analyst & the Global Head of Soverign Risk

Ashley Paige Q&A with the fashion designer, philanthropist, & CEO

Is an MBA in your future?

Find the best B-school for you, stateside or abroad

BOBBI BROWN Exclusive Interview with the Brains Behind the Brand A Publication of Harvard Undergraduate Women in Business

HUWIB Editor-in-Chief: Winnie Liu

2008 HUWIB Executive Board President Seema Amble

Managing Editor: MacKenzie Sigalos

Vice President Kara Culligan

Design Editors: Tessa Lyons-Laing Winnie Liu Christy O’Neil MacKenzie Sigalos Staff Writers: Victoria Alleyne University of Waterloo, Canada Madeleine Bennett Rika Christanto Harvard College Investment Magazine Correspondent Polina Dekhtyar Harvard College Investment Magazine Correspondent Shikha Dilwari University of Western Ontario, Canada Megha Doshi University of Berkeley Haas MBA Aylin Erman Christina Hagner Esther Han Ewha Women’s University, South Korea Windsor Hanger Freeze Magazine Correspondent Marykate Jasper Mika Kasumov Harvard College Investment Magazine Correspondent Rosemary La Prairie University of Cambridge, England Sarah Landsted Copenhagen Business School, Denmark Winnie Liu Tessa Lyons-Laing Scottie McQuilkin Lehman Brothers Christy O’Neil Alison Occhialini Julia Ponce University of Berkeley Haas MBA Alison Ryu MacKenzie Sigalos Dmitri Smirnov Harvard College Investment Magazine Correspondent Nathalie Tadena Northwestern University Saron Tesfalul Maeve Wang Jane Wooder Maxwell Young Harvard College Investment Magazine Correspondent Contributors: Paul Gediman University of Michigan Ross School of Business Dan Gong Harvard College Investment Magazine Correspondent Corinne Kang University of Berkeley Haas School of Business Soojin Koh University of Michigan Ross School of Business Ainsley Parker University of Pennsylvania Wharton School of Business Partners: Freeze College Magazine Harvard College Investment Magazine

Make It Happen 3rd Edition

Secretary/Treasurer Nandini Nair Business Education Chair Nimi Katragadda Corporate Development Chair Meicheng Shi External Communications Chair MacKenzie Sigalos Fundraising Chair Alison Ryu Intercollegiate Business Convention Chair Ami Nash Internal Events/Recruitment Chair Neagheen Homaifar Outreach Chair Roberta Steele E-mail Make It Happen at info@HUWIB.org Visit HUWIB at www.huwib.org.

Photo Credits:

Page 1: Photo courtesy of Bobbi Brown Cosmetics 5-7: Photos courtesy of Erin Dugery; 8: Photo courtesy of Adobe; 8-9: Photos courtesy of Rosemary Stasek; 10: Photo courtesy of Stock.XCHNG; 12-13: Photos courtesy of Georgia Lee; 15: Photos courtesy of Bari Schwartz 15: Photo courtesy of Jessica Gelman; 16: Photo courtesy of WikiMedia.org; 17: Photo courtesy of Tate Museum; 18-19: Photos courtesy of Stock. XCHNG; 20: Photo courtesy of Theresa Moore; 21: Photo courtesy Crystal Johns; 22-23: Photos courtesy of Dorian Caster; 24-26: Photos courtesy of Bobbi Brown Cosmetics; 28: Photo courtesy of Stock.XCHNG; 29: Photos courtesy of Rose La Prarie; 30: Photos courtesy of Mercedes Bent; 31: Photos courtesy of Katie Gunn and Tessa Lyons-Laing; 33: Photo courtesy of Stock.XCHNG 34: Photos courtesy of Gap Inc. and Ann Doyle; 36-37: Photos courtesy of Stock.XCHNG; 42-43: Photos courtesy of Corinne Kang; 43: Photo courtesy of Julia Ponce; 44-45: Photos courtesy of University of Pennsylvania Wharton School of Business; 46-47: Photos courtesy of Paul Gediman; 48-49: Photos courtesy of Esther Han; 51-52: Photos courtesy of University of Waterloo; 53: Photo courtesy of Copenhagen Business School; 54: Photos courtesy of Sarah Naegele; 55: Photos courtesy of Scottie McQuilkin and Stock.XCHNG; 59: Photo courtesy of Stock.XCHNG; 60: Photo courtesy of MacKenzie Sigalos Published by: Harvard Media Ventures Harvard name and/or VERITAS shield are trademarks of the President and Fellows of Harvard College and are used by permission of Harvard University.

Make It Happen 3rd Edition

The Business Side of the Industries You Love

Tools for Success

International Business

5 SAVING SECOND BASE

27 SECOND STEPS IN FINANCIAL FREEDOM

By Maeve Wang, Harvard College

By Shikha Dilwari, University of Ontario

46 BREAKING THE BARRIERS & BRIDGING THE GAPS IN SOUTH KOREA

8 THE KABUL BEAUTY

29 WORK WARDROBES FROM AROUND WORLD

By Esther Han, Ewha Women’s University

SCHOOL By Marykate Jasper, Harvard College

By Tessa Lyons-Laing, Harvard College

10 THE BIG PICTURE

32 TIPS ON SCORING THE PERFECT SUMMER INTERNSHIP

By Dmitri Smirnov, HCIM Correspondent

12 THE LENS ON LEE

By Nathalie Tadena, Northwestern University

By MacKenzie Sigalos, Harvard College

14 GET IN THE GAME By Christy O’Neil, Harvard College

16 FINANCING THE FINE ARTS By Alison Occhialini, Harvard College

17 THE BUSINESS OF BLING By Rika Christanto, HCIM Correspondent

20 NO BUSINESS LIKE SHOW BUSINESS

By Tessa Lyons-Laing and Madeleine Bennett, Harvard College

22 A PASSION FOR FASHION Successful entreperneur and animal advocate Ashley Paige

48 DEBUNKING THE SECOND YEAR INVESTMENT CRAZE IN CAMBRIDGE By Rosemarie La Prarie, University of Cambridge

49 EARNING A BUSINESS DEGREE IN CANADA By Victoria Alleyne, University of Waterloo

33 THE FLUENCY FACTOR By Aylin Erman, Harvard College

50 IS ANYTHING EVER REALLY FREE?

34 FROM THE FLOOR TO THE BOSS

By Sarah Landsted, Copenhagen Business School

The two-tier corporate hierarchy

The Business Guide

By Christina Hagner, Harvard College

36 WAGE NEGOTIATION By Jane Wooder, Harvard College

36 INDUSTRY ADVICE Affordable city-living By Windsor Hanger, Freeze Correspondent

52 THE WORLD OF RISK FROM THE CIA TO WALL STREET Q&A with Jami Miscik By Alison Ryu and Saron Tesfalul, Harvard College

55 WORKING AT LEHMAN BROTHERS

38 INDUSTRY ADVICE Networking 56 TEAM MANAGEMENT AT By Tessa Lyons-Laing, Harvard College BAIN & COMPANY

By Polina Dekhtyar and Mika Kasumov, HCIM

By Winnie Liu, Harvard College

The Business School Guide

Feature

40 HAAS SCHOOL OF BUSINESS

24 BOBBI BROWN Q&A with the

57 UNDERSTANDING THE HEDGE FUND INDUSTRY

42 WHARTON SCHOOL OF BUSINESS

By Winnie Liu, Harvard College

entrepreneur, makeup artist, and CEO of Bobbi Brown Cosmetics

44 ROSS SCHOOL OF BUSINESS

Correspondents

58 THE GHOST OF CRISIS PRESENT

By Maxwell Young, HCIM Correspondent

Make It Happen 3rd Edition

HUWIB

Letter from the Editor We improve by learning. In its young existence, Make It Happen has introduced its readers to the business world as it pertains to women. Armed with knowledge of consulting, investment banking, entrepreneurship, and the confidence to break barriers, young women are setting out to explore and succeed in internships, business schools, and lifelong careers in areas of business formerly exclusively for men. The great thing about Make It Happen is that each year the magazine grows with its readers. Young women have looked to our magazine in the past as a handbook to entering the business world. In this issue, you will find tips on financial independence, summer internships, and the corporate hierarchy. You will also learn about interesting and unexpected business careers in the industries we all love: film, sports, and luxury goods to name a few. For those who have already ventured into the business world, this year’s issue features advice about how to expand your career and give back to your community through your success. In this issue, you will read about how the business savvy of Deborah Rodriguez, who moved to Kabul, Afghanistan to open a beauty school, facilitated her in helping women become financially independent. Entrepreneur Ashley Paige has used her trendy swimwear collection to raise awareness about animal rights. I hope you enjoy reading this year’s magazine. I would like to thank everyone involved in the production of Make It Happen. The magazine truly reflects the hard work of our staff, contributors, and the inspiring businesswomen we interviewed. My wish is that each reader walks away with a little more confidence in her career from sharing the experiences of others, whether she is a novice or a seasoned connoisseur.

Winnie Liu, Editor-in-Chief

Our Mission Statement Harvard Undergraduate Women in Business (HUWIB) seeks to empower a dynamic group of enterprising young women by uniting them through business education and experience. HUWIB offers a unique opportunity for undergraduate women at Harvard to expand and sharpen their knowledge of business opportunities, giving them the skills they will need to become future leaders in the corporate world. Serving the entire female Harvard undergraduate population, HUWIB is overseen by an executive board and six committees. Through panels, conferences, outreach initiatives, skill-building workshops, leadership projects, mentorship programs, and social events, HUWIB seeks to expose undergraduate women to a variety of business careers. HUWIB’s unique blend of professionalism, pragmatism, and entrepreneurial spirit allows us to develop programs that are informative, effective, and diverse. Over the years, we have cultivated close relationships with many organizations in different sectors of the business world, including investment banking, consulting, financial services, software technology, entrepreneurship, and marketing. Membership in HUWIB requires completion of the “WIBternship,” in which prospective members attend informational business panels and collaborate on skill-building projects. Associates enjoy the opportunity to gain a variety of management and organizational skill sets, from finance and development to marketing, design, and production. Much of HUWIB’s success comes from the creativity and dedication of its members who are constantly seeking to expand the organization’s influence both on campus and off. Through annual events such as the Intercollegiate Business Convention, HBS Day, and outreach trips, HUWIB seeks to broaden its reach and influence, sharing our ideals nationwide while staying true to our ultimate mission of empowering young women to pursue careers in business. Harvard Undergraduate Women in Business… Make It Happen! 4

Make It Happen 3rd Edition

The Industries We Love The Business Side You’ve Never Seen

Saving Second Base

Financing the Fine Arts

The Kabul Beauty School

The Business of Bling

10 The Big Picture

No Business Like Show Business

12 The Lens on Lee

A Passion for Fashion

14 Get in the Game

Saving

Second

Base

By Maeve Wang Harvard College Perched above a garage in Philadelphia rests a cozy, carpeted loft. It’s modest enough, with angled ceilings, a desktop PC, a few phones, and tables lining both walls. Stacked along them, neatly folded T-shirts anxiously wait for their turn to be distributed. There’s no restroom, no fax machine. When someone asks Erin Dugery, “Can you fax that?” she’ll reply with a “Sure!” before dashing to the neighborhood Kinko’s. So it’s hard to believe that this small space could even possibly be the headquarters for the internationally recognized, breast cancer awareness t-shirt company, Save 2nd Base. Yet it wasn’t too long ago when no one, not even Dugery herself, could have guessed that she, a former pre-school teacher, along with Kelly Day, a single mother and waitress, would be commanding a global business. “If you told me ten years ago that I’d start up a company for breast cancer, I’d be like, ‘What are you talking about? I don’t know anyone who has breast cancer,’” says Dugery. That was before July 2006, when her sister and mother of five, Kelly Rooney, lost her 4-year battle with the

disease when she was only 43. Along with the non-profit founded in her name, Rooney left Dugery and her friend, Day, determined to creatively transform her quirky catchphrase, “Save 2nd base,” into a means of eradicating breast cancer in young women, as a tribute to her sense of humor and spirit. The company’s grassroots beginnings were as humble as its headquarters. Still grieving the loss of a close friend, and with absolutely no

experience in business, Dugery and Day relied on word of mouth as they sold their t-shirts out of trunks and at tables in front of sports stores. The women each donated $5,000 to trademark the euphemism and the humorous t-shirt design with two baseballs on the chest of a t-shirt out of their own pockets. As of 2007, Save 2nd Base’s shirts have hit each one of the fifty United States as well as 5 different foreign countries including countMake It Happen 3rd Edition

The Industries We Love less provinces in Canada and servicemen and women in Iraq. In that short time-span, the limited liability company– run by Dugery and Day – has donated $21,000 to the Kelly Rooney Foundation, which funnels money into the Abramson Cancer Center at the University of Pennsylvania to support research into women under 40 at risk for breast cancer. Donating 50% of its profits, Save 2nd Base has already fulfilled one-fifth of its $100,000 pledge to the non-profit foundation. How the two previously inexperienced businesswomen turned their germ of an idea into an international phenomenon is a wonder. With no business degrees, PR courses, or communications courses, Dugery and Day approached the t-shirt industry with only their instincts and willingness to learn. Surprisingly, their inexperience has proven to be an asset instead of a handicap. “Our lack of business experience helped us because I think if we were really jaded and experienced, we would have said no to many opportunities,” Dugery explains. “It’s kept us fresh. We met people in the business who said, ‘Oh, you shouldn’t do anything like that,’” referring to the baseball place6

INDUSTRY JARGON DECODED

hat is a Limited Liability Company (LLC)? A noncorporate business that acts like a partnership, where owners actively manage the organization and are protected against personal liability for company's debts.

Perks of an LLC include… • Limits personal liability for debts of entire company • Provides management flexibility, flexible income distribution, and pass-through taxation • Requires a simple start-up process ments on shirts. “In the screening industry, it’s a cardinal rule that everyone knows not to do that. But it’s our best-selling shirt so obviously something is working. If we had listened to them, we wouldn’t have gotten as far as we are.” A secret to Dugery and Day’s swift success has actually been their lack of secrecy. Manipulating their natural instinct for mar-

keting and being very transparent about their donations have propelled Save 2nd Base beyond the suburbs of Philadelphia and even beyond the borders of Pennsylvania. Very conscious about not “pink washing” (in which companies exploit breast cancer to sell products while really donating only a trivial percentage), the partners have made Save 2nd Base transparent about how much of its

the pair has learned to balance their intense profits go directly to devotion to customer service with their need the nonprofit organito think reasonably about their business and zation – a whopping themselves. “We’re doing a great thing by 50%. raising a lot of money, but when it comes to Tossing the www, business decisions, you have to think clearly, the duo secured their think ahead, and also think of yourself. I wish domain name, savI had just listened to myself and said, ‘It’s e2ndbase.com. Printokay that there is money being exchanged on ed on the back of an emotional project. That’s alright.’” every shirt, the webStarting out as a cocktail of business and site has become their philanthropy, Save 2nd Base will remain that most vital marketing Founders of Save 2nd way. Although maintaining a balance betool. “Someone can Base Erin Dugery (left) tween work and emotion has been difficult look at the shirt, point and Kelly Day (right) at times, the duo to the website on the plan on keeping up back, and boom – we the company’s moget an order from that mentum in the comstate,” said Dugery. ing years ahead. “I’m The partners also lucky because I’m practice their “pay it uccess is keeping your eyes open and grabbing opportunities passionate about my forward” methodolwhen they come. And if they don’t come you have to create cause,” Dugery said ogy, where customers your own opportunities. You have to make it happen.” gratefully. dissatisfied with a shirt With seven chilfor whatever reason, dren between the Erin’s Advice: will have it replaced two of them, Dug1. Follow your instincts. for free if they simply ery and Day continue 2. Don’t waste energy trying to please everybody – you will always pass it on to someone on with their “little have critics. who would wear and ma and pa shop” in 3. Be proud of your idea. enjoy it. the little workspace 4. Admit when you need help. “People love that. above Dugery’s ga5. Most importantly: be honest. Before you start a partnership, be We think it’s so great rage. They still do all honest about your strengths, weaknesses, and what you’re willing because it’s a win-win of the shipping and to learn to do. for us. We’re just tryorders themselves, ing to get the shirts out with the help of and the word out about our foundation,” Dugery explained. Her atYet Dugery and Day have encountered volunteers during October, which is Breast tention to customer service occupies the many challenges upon their entrance into Cancer Awareness Month, when they receive heart of the company. “We are very aware the business world. Still grieving and wor- over 400 orders a day. “People want to go to work, make money, that this is a product that is tied to a very ried about tarnishing Rooney’s memory, they emotional issue. People are buying this for made the rookie mistake of reacting to the and be successful, but at the end of the day, if their mother, their friend, their aunt. There emotion attached to their product by priori- it’s a good cause, it makes people feel good,” are countless walks and races that people do tizing customer service above the business’s says Dugery. Now, the company is large so whole teams want to wear their shirts to- economic and their own physical well be- enough where the two may look into dropgether.” Dugery will also often leave person- ing. “We needed to stop being so reactive. shipping the shirts from a distribution house, alized notes with t-shirts. We were so focused on pleasing our cus- but that prospect isn’t concrete yet. Dugery “Even if you do have a business degree, tomers that we didn’t want them to wait for worries about not being able to slip in her each industry has its own inside scoop into the shirt.” But not having backorders hurt handwritten notes, because it’s this dash of how things work.” Figuring out that “inside her company as static inventory would have customer service and drop of personal touch scoop” requires what Dugery deems as “sub- been better invested elsewhere. At one point, that makes the work so worthwhile – on top tle networking” – a way of finding the right more money was spent on shipping than on of signing that $21,000 check to her sister’s people to help you. “Fit into the conversa- the actual shirt. “But we were so intent on nonprofit at the end of the year. tion that you have this idea for a business and getting the shirt out there that it was worth let people know.” Some people will have no it for us.” interest, some will be supportive, and those Their sensitivity to customers’ needs and who are truly interested will network on your feelings is a product of how passionate they behalf without you even knowing. “It’s like are. Knowing that both of them were not in throwing fishing line to people.” Following the business for the money, Dugery and Day this method Dugery found all the help she struggled to give themselves the credit and needed from family and friends. payback they deserved. Since then, however,

BUSINESS ACCORDING TO ERIN

Visit Save2ndBase.com and support the fight against breast cancer! Make It Happen 3rd Edition

The Kabul Beauty School Not your everyday salon The Industries We Love

By Marykate Jasper Harvard College Deborah Rodriguez, a hairdresser and mother of two, originally traveled to Afghanistan as a volunteer in the medical sector, moved by the plight of this ravaged country. She then transitioned into the coffee shop business, attempting to convince the “Prevention of Vice, Promotion of Virtue” police force that her syrups really were not whiskey. Eventually, she found a way to combine the independence that business provided with the charity that Kabul needed. She wound up trimming hair in a brightlypainted salon school, instructing the underprivileged women of Kabul. What changed her goals? How and why did she move halfway across the globe to teach at a beauty school? “Well, because I’m a hairdresser!” she answers with a warm laugh. “For me, it was just practical: there’s women, there’s hair…These young girls who can’t read and write can still do hair, and you can never take hairdressing away from anybody. Once you know it, you know it forever.” Of course, the Kabul Beauty School was by no means identical to its Western counterparts. The dangers of fundamentalism and extremism precluded anything other than an all-female environment, and the only men involved in the operation were the guards. This “girls only” arrangement protected the female students from harassment and violence, but Rodriguez believes it was also a blessing for the men. In today’s Afghanistan, many males still espouse the sexist views of the Taliban. To them, women are inherently inferior and they believe that no amount of education or training will change that. The beauty school guards were no different than Kabul’s average male, but they were not dealing with average Afghani females. “My girls fought with my guards all the time,” Deborah explains, “They knew that they were smarter than these men, and that they were making a hell of a lot more money than them, and yet these men would try and tell them what to do!” She laughs heartily, “Not 8

good, not good.” education as her older brother. When RoHowever, this confidence did not come driguez told her that she ought to finish her naturally to the girls. Afghan culture is decid- education, she begged, “Please. My brother edly male-oriented. “When a boy is born, the won’t let me go to the real school, but he’ll let parents are so happy, and it shows,” Rodriguez me go here.” Her brother did not want her to explains, “Then the girls see how when sisters learn more, because he had not been able to are born, their mothers will cry for months finish his education. And so beauty school ofand months and months. It’s in them from fered this young woman a way out – a path to birth that they are of no worth.” self-sufficiency. This was the purpose of the The beauty school experience slowly Kabul Beauty School. chipped away at this misogyny. As her students gained confidence from their financial independence, as they discovered that they could not only pick up hairdressing skills but also manage a business, something clicked. They realized that they were capable, accomplished, and intelligent. And they realized that the guards to whom they once kowtowed were, in Rodriguez’s blunt words, “dumb as rocks.” While other relief projects work with grand visions and wide-scale efforts, the Kabul Beauty School Ms. Rodriguez in a traditional headress addressed practical business needs on a smaller scale. Its first graduating The business dynamics of the beauty class contained a mere twelve women, but the school are just as practical as its goals. The school soon had more applicants than it could school itself catered to Western women, the handle. wives of ex-pats who could pay the higher sa“Everybody wanted to be a hairdresser,” lon prices needed to keep the school going. Rodriguez remembers, “It was like when I However, once the graduates founded their was growing up and every young girl wanted own shops, they catered to Afghanis. This to be a flight attendant.” However, it was im- arrangement eliminated any potentially diportant to her that the school first accepted sastrous competition between the school and those women who absolutely needed to be its alumnae. After all, the requirements for a hairdressers – not just those who wanted the Western beautician are very different from training. Widows and illiterate women are those needed to be successful in Afghanistan. the first priority, as their survival options are “If you’re doing Afghan stuff,” Rodriguez the most severely limited in Afghani society. explains, “You’ve got to do three things really Rodriguez usually encouraged younger girls well: updos—big updos, really good wedding to finish their education and then reapply to makeup, and eyebrow threading.” Her graduthe beauty school, but family issues occasion- ates relied on the gold standard of Afghani ally interfered with this arrangement. One advertising: word-of mouth. If you can prosixteen-year-old applicant, for example, was duce one beautiful bride—a fabulous updo, only allowed to receive the same third grade sculpted eyebrows, and movie star make-up—

the 800 wedding guests will provide you with free publicity for weeks to come. Of course, the gossip flies both ways. If you do one bad bride, your career might be over. Because of the constant flutter of unofficial feedback, a beauty school graduate needed both talent and consistency to survive. In Rodriguez’s opinion, however, cleverness is the true predictor of survival in the business world. “They had to be clever. I think that’s a word we don’t use [in the U.S.] a lot, but over [in Afghanistan] they use it a lot,” she observes. “A clever woman goes a lot further than an intelligent woman. Book smart doesn’t cut it there. You have to be slick; you’ve got to learn how to play that game. It’s a war zone, man – may the best man win. You’ve got to outsmart everybody.” And the beauty school did just that. In the fundamentalist environment that still pervades post-Taliban Kabul, all-female businesses are simply not allowed to put signs out. Even a windowed storefront is forbidden

struction. She not only taught her students the secrets of hairspray and up-dos, she also initiated them into the logistics of running a business. She had never earned a business

degree herself, instead gleaning her knowledge from practical experience. She’d worked for the family business at her mother’s salon, and had run kiosks at the mall when she was younger. Using what she had—experience over theory—she taught her students in the hands-on way. “I would tell each girl ‘This is your month to run the salon,’” Rodriguez explains. “Therefore, they had to be trusted with

“So when I asked for a receipt they gave me this chunk of wood,” Rodriguez remembers with a chuckle, “and the people at the funding place were getting really snippy with me. I don’t know what country they thought they were working with – but they wanted formal receipts, so I just got snippy right back and gave them this piece of wood!” “Bread-man” aside, the concept of receipts proved essential for the girls’ empowerment. Receipts are taken for granted by Westerners, but for the women of Afghanistan, they were revolutionar y. Households in Kabul rarely contain a single family; in-laws often live together under the same roof, and sisters-in-law do not always like one another. Many of the students were being cheated by their sisters-in-laws on the grocery budget, but receipts provided them with a way to take back control. Here, even for women who were not allowed to work outside the home, the business basics Rodriguez in-

“Using what she had—experience over theory—she taught her students in the hands-on way. ” for fear that a passing man will look in and see the women at work. Combined with the city’s lack of street signs, these restrictions severely impeded the school’s ability to attract clients. How can customers find the shop without any signs? There was only one solution to this problem: get clever. Rodriguez and her students coated the school’s exterior with outrageous murals – pink and purple and polka-dotted camels in the brightest shades available. They decked out the guardhouse— an ugly cement staple of every Aghani business— with leopard print. Obscurity would no longer present a problem for the Kabul Beauty School. Once they addressed the issue of visibility, Rodriguez set to work on the actual in-

the money, and I let them do all of it in Farsi. I made them keep books and keep receipts.” It was this last concept that would prove both the most difficult and ultimately, the most rewarding. Three times a day, Rodriguez’s guard would purchase fresh bread from a small local shop for the students’ meals. Of course, the relief agencies who provided funding for the school wanted formal receipts of these purchases, but the “bread-man” was illiterate. He could not even read his own name, much less write out quantities and dates. So these business women simply innovated. They carved the guard’s name and the name of the school across a piece of wood and asked the “bread-man” to notch it every time they made a purchase.

troduced were able to change lives. Sadly, the Kabul Beauty is no longer offering classes, but Rodriguez has not given up on the school, the city, or her dream. “We actually had to – I don’t want to say close it – put it on pause,” Rodriguez admits resiliently. “Security is horrible there right now. Taliban insurgency is just really, really bad.” Rodriguez is not easily discouraged in any of her endeavors, and this project is no different. She hopes to re-open soon, but in the meantime she also has some other projects in mind. “We’re trying to put a school in Iraq right now, and we’re working on some funding with an organization,” she says. “If not there, we might even go into Somalia…I just can’t imagine not doing this.” Make It Happen 3rd Edition

The Industries We Love

The Big Picture: Freeze Frame of Film Industry in Flux By Dmitri Smirnov Harvard College, HCIM Correspondent Glamorous and prestigious, the movie industry remains a business. Worldwide revenues of the filmed entertainment business reach $65 billion; the industry has been steadily growing at 10% per year, a rate that few other businesses can boast. The $9.2 billion 2006 domestic box office saw an increase of 4.2% compared to the previous year, while the number of movie theater screens has been consistently increasing since 2001. The number of pictures released in the U.S. grew by 9.7% compared to the previous year to 606 in 2006. Another factor signifying the current strength and prospective financial gains of the film production business is the records: last year, “Spider-Man 3” grossed the highest opening-weekend revenue of all time. Naturally, not every film results in such large box office receipts. Even prior to release, films can be distinguished between those that will produce gigantic revenues with little profit margins on huge budgets and those low-budget pictures that may bring good profits on smaller grosses: the former are referred to as “studio” productions, while the latter are called “indepen10

dent” films. What are the main differences yielding such different financial results? Hollywood studios with deep pockets, such as Warner Brothers, Disney, and Paramount, finance studio productions, while the independents are funded by investors unrelated to studios. Most studios today are subsidiaries of multinational conglomerates, such as NBC Universal, owned by General Motors, or Columbia, owned by Sony. Moreover, most studios have their own independent divisions, like Sony Picture Classics or Warner Independent, leaving “true” independents competing for arthouse audiences. Studio Productions The studios do not stop at financing, instead taking a firm grip on the production and distribution processes of the picture. The script is acquired or developed by a studio with studio screenwriters revising it until it is ready to go into production. Once the picture is greenlit, the budget is decided on; the average is about $60 million. The film is then cast, and director, producer, editors, art directors and other production team members are assigned, after which the principal photography begins. In 6 months to a year, the filming and editing stages of production are completed, and the film is ready for distri-

bution. With the average of $40 million marketing and advertising expenditures, the studio promotes the picture with TV, newspaper and other traditional forms of advertising, in addition to reliance on actor and director name recognition. Primetime cast interviews and critical reviews are arranged. Following North American theatrical run, the film is released abroad, with DVD and other home video to complete the film life cycle. By the time we see a movie on an airplane, the studio is deep into the next production. Independent Productions The independents command a much lower budget. From the “micro” $500,000 productions, to low-budget $1 million to rarely $20 million, the independent productions pursue an overall different business model. Attracting investors – frequently friends and family – with a business plan, the production functions outside the Hollywood studio system. The producer responsible for attracting the funds for the picture has the ultimate power over the production of the film; he also has the responsibility to find a distributor willing to cover the marketing costs when the film is complete. As the low budget may not be sufficient to cover the costs, frequently a part of the personnel compensations are agreed to

be paid from the revenues of the film. This is also the most frequent form of payment to the producer who attracts the funding, since it signals to the investors the producers’ belief in the project’s success. In addition to less eminent actors, the tighter budgets force independents to use cheaper sets and modest special effects. Although acknowledged actors sometimes appear in lower-end independent films, they do so for artistic reasons rather than monetary gain. Art Form Implications of Financing Independent productions are granted more freedom in two ways. On a work-ethic

And although people employed in the independent sector of the industry are often less experienced, some acknowledged filmmakers like Jim Jarmusch choose to remain independent in order to retain their creative autonomy. Affecting Both? Certain trends have evolved over the past twenty years and have an immediate effect on every movie production, independent or studio. For example, only about one-quarter of a film’s total revenues come from the domestic box office. While a record number of films, including “Pirates of the Caribbean: At

more important, however, are ancillary markets, such as DVD sales, which easily account for over half of total revenue. Apart from major industry transformations and technological developments, most of which are favorable, a recent event undermines the maturity of the industry. The recent Writers Guild of America strike, involving 12,000 screenwriters, affected both the independents and the studios, although differently. The writers demanded increases in minimum pay and residuals for uses of their products online from the Alliance of Motion Picture and Television Producers. This situation reflected the realities of the Digi-

“[T]he industry has been steadily growing at 10% per year, a rate that few other businesses can boast.” level, production executives and participants have much more artistic liberty in exchange for mild monetary limitations. The director can choose the cast, and the rest of crew, including the editors. Under the Hollywood system, even though the director, if acknowledged, may have the freedom to choose the people he works with, he virtually has no control over how the film is edited and is subject to the studio’s “final cut.” This has compelled even eminent filmmakers like Alfred Hitchcock, who worked under the Hollywood system, to plan the shooting of his films meticulously so as to leave the editor without parts to cut out. An independent film allows the director to create a more personal work, while the rest of the crew benefit from association with a more prestigious project. In addition, independent films allow for a greater degree of experimentation for the artists involved. Because the budgets are much lower, the movie has to attract fewer viewers in order to cover the costs, resulting in bold yet inventive creative choices that do not limit the low-cost film’s profit opportunities. Rather, they are signals that target a narrower audience and offer a more engaging experience. As a result, independent films are often more critically acclaimed than typical studio fare, with films such as “Pulp Fiction,” “The Blair Witch Project,” and “Napoleon Dynamite” generating buzz and enviable profits. The stylish nature of independent films trickles down to the roles played by the crews in the process; every member gains more freedom of experimentation, such as the ability to use unconventional lighting. This emancipation circumvents as well as results from the lower budget under command.

World’s End” and “Transformers,” grossed over $300 million domestically in 2007, the increasing importance of the foreign box office cannot be underestimated as it affords unsuccessful domestic releases with the ability to break even or profit. Moreover, movie theaters take half of a film’s box office off the top. The distribution agreement usually requires that first revenues be sent over to cover the distribution costs. Thus the domestic box office might not cover the costs of theatrical exhibition and advertising. Inter national distribution occurs typically after a film has been released in the U.S. market. The increase in overseas box office receipts can be attributed in part to the growth of foreign countries’ economies, which has resulted in more people willing to pay the price of a movie ticket. Consequently, international revenues have trumped domestic ticket sales by a two-toone ratio. Even

tal Age and adversely affected the industry with losses estimated at $1 billion. Still, the recent hedge fund and private equity investment boom in Hollywood signifies the overall strength of the movie industry, especially as investors diversify amidst the subprime mortgage crisis, testifying to both the volatility and vitality of global filmmaking, both studio and independent.

Make It Happen 3rd Edition

The Lens of Lee: The Industries We Love

An Interview with

GEORGIA By MacKenzie Sigalos Harvard College Graduating from Harvard College with an Honors Degree in Biochemistry, Georgia Lee has

since excelled as a McKinsey & Company analyst, as an apprentice for Scorsese on the set of “Gangs of New York,” as a student at the Harvard Business School, and as the 2005 Tribeca Film Festival winner for her first feature length film, “Red Doors.” She is now combining her love of science and storytelling by developing a television drama about neurology for NBC. In an interview with Lee, she shared with us the challenges, the choices, and the changing passions, which defined the course of the past ten years of her life.

tor was, what the process of filmmaking involved. I think that’s when I consciously fell in love with film.

HUWIB: When did you first realize that you possessed such a strong passion for film? G.L.: I can’t quite place the exact moment. I think it’s been a building lifelong passion. I’ve always loved storytelling and the moving image. Going to the film archives as an undergrad and being exposed to such a fascinating breadth of films prompted me to really think about what the role of the direc-

HUWIB: How were you able to balance your work at McKinsey, while also continuing to pursue your passion for film? G.L.: You don’t have much of a social life! When you have a full-time job that is pretty demanding, and you also have this other, all-consuming passion, you have to learn to prioritize and manage your time. There are only 24 hours in a day, and we all have to eat and sleep, so it’s a lot of juggling.

HUWIB: Considering the fact that you majored in Biochemistry while in college, how did you find the transition from studying science to then working in the film industry? G.L.: I always thought I was going to be a doctor. It was either off to medical school or to pursue a Ph.D. program in biochemistry. While I still love science, I realized that the the art of taking a story on paper and translating it visually onto the screen is what excites me the most and what I’d like to spend the rest of my life doing.

HUWIB: Have you found that being a female director in Hollywood makes it easier to stand out, or does it act as more of an obstacle? G.L.: Because “Red Doors” was independently financed and made outside of the Hollywood system, I didn’t encounter any

of the gender issues sometimes faced in Hollywood. It’s an interesting topic. Maybe it’s a naïve, meritocratic point of view, but I like to believe that if the work is good, the writing is strong, and the directing is inspired, then it doesn’t really matter. That being said, only 5% of movies directed in Hollywood now are directed by women. Are there historical biases against female directors? I think there might be. Who you typically picture to be a director is a guy in

a baseball cap and Converse sneakers. Directing is an especially tough role since it can be a very military-like command-andcontrol position. It’s very possible that people are not as comfortable yet with a young woman running a film set of 40-100 crewmembers. That being said, it’s been very encouraging to see more and more women venture recently into cinematography, writing, producing, and directing. I think we need to keep on charging the

gates so to speak. HUWIB: Now that you are a student at Harvard Business School, do you see yourself potentially transitioning into the more business-centered role of producing? G.L.: I will be happy as long as I can remain a part of the creative process. I do, however, deeply love directing - taking words on the page and figuring out the most effective way to translate them on the screen. I think I just love too many things! There’s the McKinsey part of my brain that loves strategy, efficiency, and the problem-solving involved at a business level. Then there’s the geeky, crazy, filmmaker side of my personality. I always just tell everyone I’m a little schizophrenic. Depending on the day, I might be wearing a business suit or I might be wearing my baseball hat and converse sneakers! HUWIB: How do you see all of these different interests coming together in the next 5-10 years, or do you see yourself specializing in only one of these areas? G.L.: Ideally, I would like it all to come together. I would love to have my own production company, which would create entertaining stories that hopefully make people look at their lives, and at the world around them, in more interesting and thoughtful ways. That is, at a philosophical level, what I’d like to do. What does that mean practically? It would be a content

company that develops and produces film, television, animation, and graphic novel work.. The business side of me would love to create and run that company, and the creative side of me would love to be involved with writing and making some of these stories come to life. Of course, that might mean that I need to clone myself three times. This is the entertainment business, and it’s very important to understand the economic dimension of Hollywood. At the same time, you don’t want to compromise and sacrifice any part of your creative vision to the mandates of the market. The people who do it well, balance both of these forces. HUWIB: For those of us who are soon to enter the job market as we finish our undergraduate study, do you have any final key pieces of advice? G.L.: Having now been out of college for ten years, I would just say to relax! None of these initial choices you make are going to be life or death decisions. You can change course multiple times, double back, and even switch over. What’s important is to constantly be taking your own pulse, and at each decision point, to consciously make choices that are mindful of what you want and where you think you’re going. It’s a much more nuanced answer. I used to say, my god, if you have a passion, just chase it, and don’t worry about any of the consequences. As I have gotten older, I’ve realized that I truly do believe it’s the process of the journey that teaches you the most. For those of us who want to be artists, you need to live life in a very self-aware and conscious way. Frankly, going to McKinsey or Goldman Sachs for a year or two isn’t going to kill you, and it might even help you. What you don’t want is to be trapped. You want to be able to hear your own voice. It doesn’t really matter immediately what you do; what matters is that you’re constantly honest with yourself. You have to make sure that with each new step along the way, you’re getting closer to what it is you want to do. There are life lessons I learned at McKinsey about people, relationships, and how the world works that have helped me become a better filmmaker and storyteller. In the long run, even the process of grappling with these career choices feeds into better characters and storytelling. Your soul will find its way. The trick to life is not to muffle the soul. Make It Happen 3rd Edition

The Industries We Love By Christy O’Neil Harvard College

“Don’t be afraid to write a letter and make a call to follow up, you need to be persistent.”

will go to any lengths to be a part of the game. Some dedicate themselves to grueling practices and constant traveling in order to play the game they love; some follow every play from the sidelines, their emotions rising with every touchdown and falling with every foul; and some are so committed to sports that they build a career out of helping the industry succeed.The business operations that underlie the sports industry involve experts in finance, law, retail operations, community outreach, and marketing. These functions are not unique to the sports industry. Bari Schwartz, one of the former Business Affairs and Development Fellows for the Boston Red Sox, describes her role for the baseball team as “internal consulting.”Similar to consulting jobs in other industries, Schwartz’s job was to develop strategies to improve the organization’s business. Another businesswoman with an established career in the sports industry, Jessica Gelman, has a similar career with another Boston sports organization, the

New England Patriots. She is the head of Business Development and describes her responsibilities as falling into four categories. Her first role is “the glue between departments,” doing strategic planning to coordinate and improve the operations of the different parts of the organization. The second component of her dynamic job involves implementing direct marketing campaigns to customers and evaluating their results. In her third role, Gelman does a great deal of market research, both about customer behavior and preferences and about best practices in the industry. She is also in charge of developing new areas of the business. How did sports-loving Schwartz and Gelman score their homerun jobs? Schwartz emphasizes that the first step to a business career in sports is to “articulate to yourself before you even talk to anyone what it is about sports that draws you to it.” In an industry with so many different areas of business, it is extremely important to know what function within the sports industry you want to pursue. Once you know what role interests you, Schwartz says, “Be confident!” If the sports industry is where you want to be, you have to go after it without being discouraged when the job search proves to be difficult. Unlike some other

jobs, sports careers are not usually found through on-campus recruiting. Gelman admits having tried several times to get into the sports industry before landing a job with the Patriots and she asserts that “you have to make your own luck” when beginning a career in this industry. “Find something you’re really passionate about and go for it. Don’t be afraid to write a letter and make a call to follow up, you need to be persistent.” Once you’ve landed that dream job in sports, one of the best things about it will be your co-workers. “The people who go into sports are fun, interesting people who all love it,” says Gelman, and they are “great role models in the work ethic that you need in order to be successful.” The industry requires a lot of hard work and sometimes it’s “not glamorous” says Schwartz. But because of the demanding nature of the sports industry, no one in the business is less than passionate about their jobs. Although most of their co-workers are male, Schwartz emphasizes her comfort working in the industry. However, Schwartz notes that women are “precluded from some social opportunities and the professional opportunities that come out of them,” but she stresses again that the key ingredient for success in a sports career is confidence. Despite the challenges imposed by the sports industry, Schwartz encourages young women to go ahead and step up to the plate. You might strike out a few times, but keep swinging. Passion for the game and a lot of hard work drives the business which keeps the sports industry running. Gelman adds that since it is a relatively young industry, there are “opportunities for growth and change you wouldn’t have otherwise.” “You are never too young, and it doesn’t matter if you are a woman,” says Schwartz. There are few other industries where loving what you do is as important as it is in the sports industry. If you love sports, then suit up, step onto the field, and start calling the plays to drive your career straight into the end zone.

Jessica Gelman

Bari Schwartz Make It Happen 3rd Edition

Financing the Fine Arts

By Alison Occhialini Harvard College

The Industries We Love

We entered through the back door, and as I followed my guide through two iron gates, past a surly security guard, and into an antiquated two-person elevator, I could not help but feel like a character in a Dan Brown novel. Wooden crates lined the stonewalls of the basement corridor, and as we marched past I wondered what treasures they might hold. Art museums, as temples of culture and beauty, present commanding and colonnaded façades, pristine interiors, and galleries filled with unique masterpieces. Perhaps their focus on outward appearances makes the bowels of such sanctuaries and those who manage what lies within all the more intriguing. For Virginia Anderson, Assistant Curator of American Art at Harvard University’s Fogg Museum, the walk past crates of priceless works of art is as banal as another’s daily winding through a labyrinth of cubicles. In her of-

literally lead to a multitude of different avenues. “There is teaching, there are curatorial jobs, art museum administration, and galleries.” When Gallery NAGA offered her a job following graduation, she followed her instinct and accepted. Working at a smaller gallery, Anderson had the opportunity to meet with the artists in their studios, and talk with them about

departments. “The success of fundraising programs and efforts has a direct impact on whether or not the department is funded to do what we want to do.” For Dawn Ades—professor at the University of Essex, published author, and trustee of the world-renowned Tate Museum in London—passion and love for art similarly began at an early age and flourished while she was a student at Oxford University. Ades is one of the most renowned Dali scholars in the art world. She has organized many influential international exhibitions and published multiple works on Surrealism, Dada, photomontage, women artists, and Mexican muralists. It was during her time as a graduate student

“The buying and selling of art is after all, the buying and selling of assets—just particularly beautiful ones.” fice above hundreds of wide-eyed visitors, she sits surrounded by shelves of books bearing titles such as Whistler’s Nocturnes and the Poetry of Color, written in elegant script. Museums serve as a place for most to spend their leisure time, but Anderson has the unique privilege to spend everyday studying the works she finds so incredibly endearing. As a Government concentrator at Harvard in the early nineties, Anderson spent almost all of her electives in the Art History Department. When she called her parents to tell them of her newly found enthusiasm for another section of the Harvard coursepack, she remembers, “an audible gasp on the other side of the phone.” “They said, ‘No, no, no, you’re never going to get a job.’” Studying in Paris during her junior year, she realized how a background in art could 16

their current work. Meeting with clients, she also had the opportunity to work on her sales skills in her particular area of interest. “I loved it,” Anderson says definitively. Anderson also found that work at a small gallery meant having a significant influence on the business of the organization within the art market. Meeting with potential buyers, she found herself “calculating the potential worth and current taxes on a work of art in her head while telling buyers the significance of that painting.” The buying and selling of art is after all, the buying and selling of assets—just particularly beautiful ones. “In the end I was managing a lot of spreadsheets and taxes while continuing to work with clients.” In both small galleries like Gallery NAGA and larger museums, more and more curators are involved in fundraising and promotions

that Ades met prominent surrealist artist, Salvador Dali, who had an incredible impact on her developing career. “Being a grad student, I didn’t really know a lot about him or how one should go about understanding his art. I just knocked on his door and asked to come in,” she recalls of her first encounter with the artist in the late 1960’s. “He waved me in, and thought that I was the model for the painting he was doing.” “I had some wonderful conversations with him,” Ades remembers. “He was an immensely charming friend—intellectual and private, a very different person in private than in public.” Ades wrote multiple article and books Salvador Dali, which led to a string of research on the entire Surrealist movement itself and her first exhibition in 1978, Dada and Surrealism Reviewed. Ades was asked to be involved as co-

curator of the huge exhibition at the Hayward Gallery in London since the organizers of the show were so impressed by her recent book of same title. In the best exhibition space in London outside of the Tate, the exhibition looked at the movement of surrealism in the context of magazines. “I love doing exhibitions,” she says simply. “Teaching, writing and curating all come together. And I really do enjoy the art. I am lucky indeed to be able to spend my working life with things I enjoy—works of art and writing.” Anderson similarly relates her love for a field that merges so many different facilities and delights in the opportunity to both engage with art objects directly and help students at the same time. “Working at a university museum as opposed to a public institution, I am doing administrative work in addition to giving lectures, tours, and working with students.” Anderson particularly enjoys the collaborative atmosphere at the university level between faculty and students and her place in the museum as an intermediary. Careers in the field of art history are certainly not as widely talked about on campus as other better trodden paths. “When I was an undergraduate, the arts binder was this small,” Anderson describes while holding her thumb a half inch away from her first finger. “You have to have a lot of initiative, creativity and patience

with yourself.” Anderson also remembers the challenge

The Business of Bling

Can luxury survive the masses?

By Rika Christanto Harvard College, HCIM Correspondent

The traditional consumers of luxury are bored. Luxury fashion has seeped into every sphere of our consumer society; it has become the norm to aspire towards owning products from exclusive brands like Louis Vuitton, Gucci, and Dior. The sheer proliferation of luxury goods and online shopping has made luxury accessible and affordable to millions. The unprecedented rise on global wealth creation, however, has not only commoditized haute couture handbags and custom-made yachts. A new niche investment class has also been fashioned from the fortuitous confluence of sociological, demographic, and economic change, which has made luxury brands the domain of the masses.

Growing market demand for luxury goods companies’ stock has reflected the growing importance of market differentiation, particularly as consumers turn away from generic products. The industry has also learned from past mistakes by relinquishing management to the professionals, limiting licenses, and improving services, marketing, and logistics. But what accounts for the appeal of these luxury stocks? Why are equity investors becoming more accepting of the luxury goods business model, despite their limited growth potential? After all, not everyone will or can have a Cartier watch or a Tiffany diamond. Beyond Toilets and Toyotas It would be wrong to consider luxury as the purview of merely the fashion houses. “Luxury is a necessity that begins where ne-

of being patient while her friends had already signed early with large companies in popular industries. “The art world doesn’t move as quickly as the big businesses,” she explains. “So you may not have a job lined up in the fall of your senior year.” Both women emphasized the point that there are so many different opportunities available in the art world. “Small galleries are booming right now,” comments Ades. “There is a lot of room for young curators.” For those interested in Marketing and PR, jobs in the membership and development departments of institutions make greater salaries. There is also museum education programming, administration, and teaching. “You have to decide that the financial compromises are worth it,” says Anderson. Being honest with yourself and your passions it the most important step in the path to making a career decision. But if the passion is there, like in these two talented and accomplished women, the compromise is absolutely worth it. cessity ends.” This quote from Coco Chanel has never rang truer than in Japan, which has a closely held monopoly of the world’s market on luxury toilets. An obsession with technology and hygiene has produced the ultimate bathroom accessory replete with a selfcleaning bowl, and devices to check vital signs, finely adjust seat temperature, play tunes and deodorize the air. The US$600 million toilet market in Japan is seeing ever-growing sales, with the most luxurious of luxury toilets selling at US$5,000. The bourgeoning luxury toilet market has been a response to Japan’s aging demographics; toilet companies have had no choice but to go up-market. While Japan grapples with its graying population, the newly affluent in the developing world has fueled consumer demand for expensive handbags, watches, jewelry, and other indulgences. The booming Chinese market was one of the catalysts for this vibrant performance. Luxury cars are booming in China, with the world’s top luxury-auto makers viewing the country as an increasingly important market. China imports more than 200,000 cars every year, most of which cost more than half a million, according to customs figures. While Make It Happen 3rd Edition

The Industries We Love

only an estimated 5% of the Chinese population can currently afford private cars, that still translates into 65 million people. The unprecedented surge in global wealth has driven the buoyant luxury goods market. According to the 2007 World Wealth Report by Merrill Lynch and consultancy Capgemini, there were 9.5 million millionaires worldwide, double the figure from a decade ago. Shares of “luxury” stocks like Christian Dior, Cart-

traction of the product and the exclusivity the price engenders, the bottle is literally a work of art, created from Venetian pearls and fashioned by artisans who usually make stained glass for cathedrals. The demand for unique items is a high growth sector. Luxury is unashamedly elitist in which owning luxury items is not a mere question of affordability but a sign of class and social status. Prices for limited edition items

thodical manner. Customer genders and age are tracked to build greater customer value. Understanding the customer allows for better and more customized designs as well as more efficient replenishment of inventories. The Balancing Act – Catering to the Hoi polloi The ultimate irony of the luxury industry’s explosion is that in its success are the seeds of

“Luxury is a necessity that begins where necessity ends.” - Coco Chanel ier and Chloe have soared past 200% in the past five years. Banks have capitalized on this opportunity by launching global luxury indexes and creating “luxury” stocks as a new investment class. BNP Paribas and the Deutsche Börse launched the world luxury index, a collection of 20 luxury-goods purveyors from Hermès to LVMH, while Merrill Lynch tracks 50 similar stocks on the Merrill Lynch Lifestyle Index. However, there is reason to approach these indexes with caution. Some indexes include non-traditional luxury brand stocks. The Claymore/Robb Report Global Luxury Index, an exchange-traded fund (ETF) launched in July 2007, for example, include investment banks like Goldman Sachs. The Dominion Chic Fund has its largest investments in mass brands like L’Oréal and Nike. While these indexes have beaten the S&P 500, their long-term performance is debateable. Nevertheless, the competitive advantage of these luxury lines is unquestionable. How does one rationalize a US$10,000 dress? How do they compete, if not on price? One Plus One Equals Three At the top of the luxury pyramid are the traditional European luxury businesses depending on their standards of craftsmanship, design and exclusive distribution lines to justify exorbitant prices. Discounts and mass retail are never considered in their business model; brand reputation is the ultimate priority. Even when brands like Ermenegildo Zegna, diversify from its traditional men’s wear line into cologne and sunglasses, the mystery of the brand that sells US$ 3,000 dollar suits remains intact. Brand management is bolstered by clever packaging. The spirits company, Hennessy, is selling a limited edition of 100 bottles of cognac for $200,000 a bottle. Besides the at18

are sometimes no longer disclosed. With luxury brands continuously testing the limits of their brand, even five star hotels are no longer enough; seven is the luxury standard. An illuminating example of the appeal of luxury brands is Japan. Despite its economic problems, Japan remains a healthy market for high-end goods. Hermes, the French accessory retailer of prestige scarves and handbags, reaps 25% of its sales from Japan. For Louis Vuitton, another Parisian luxury retailer, that figure is 50%. Moreover, homegrown brands like Toyota introduced its luxury line, Lexus, into the local market in 2006 with great success. The key to the continued appeal of luxury goods is not merely its stamp of status and taste, but something more basic: service and supply chain management. Buying a car in Japan is a drawn-out ceremonial process. Moreover, Japanese retailers have refined their supply chain operations and developed close marketing ties to their customers. Customer preferences are closely monitored and analyzed in a scientific, me-

its own undoing. As luxury brands promise growth of at least 10 % a year and open shops not only in emerging markets, like Russia and China, but also in backwater towns of Western Europe and Australia, they blur the line delineating the exclusive and the mass market. With the chicest of French designers advertising on freeways, have common commuters and truck-drivers become the new target audience? Brand image has become endangered. The traditional high ground of luxury is being eroded by a drive for greater market share Nevertheless, brands like Hermès in the US is unconcerned, having doubled the size of its U.S. business in the past five years as the company branches out into Phoenix, Denver and Seattle. This “mass” strategy has also worked for Louis Vuitton. Industry lore has it that 60 % of young Japanese women own one of their trademark printed handbags. The Louis Vuitton flagship store on the Champs-Elysées reports that Chinese consumers are buying at the same rate as the Japanese. Meanwhile, China has become the brand’s third largest consumer after Japan and the U.S. Moreover, in 2006, Gucci had 11 stores in China, and made its debut in Ukraine. For others, catering to the masses has not worked as well. Take Burberry as an example. The British company’s trademark plaid has graced not only the traditional trench coats,

but under the guidance of CEO Rose-Marie Bravo, also patterns undergarments, baby clothes, and a range of other familiar products. While this campaign served to boost the bottom line, it hit a road block when the Burberry plaid was adopted by soccer hooligans and B-list actresses. Even nightclubs in Britain refused entry to people wearing the Burberry signature pattern. A backlash against mass marketing is ensuing. Tom Ford, the former Vice-Chairman of Gucci group has launched a luxury men’s line catering to the ultra-exclusive. Brand protection has become a priority. To guard against the cheapening of a brand’s image while broadening sales to the masses, luxury goods companies have introduced greater product differentiation. For example, Gucci has developed its jewelry line, which caters specifically to the ultra-rich. Bags and dresses at Louis Vuitton and Alexander McQueen can be made-to-order to offset more accessible designs. The pressure faced by large luxury conglomerates to expand their sales has come from the public listing of these companies, many of which had formerly been private family-owned businesses. With increased demands to please shareholders, the bottom line has become more important than the aura of exclusivity. Luxury is no longer a privilege; it is a classification for a business. The IPO Bandwagon The Italian fashion house, Prada, is the most recent luxury business to join the IPO bandwagon, having selected Goldman Sachs, Intesa Sanpaolo, and UniCredit to broker their public listing expected in 2008. Although Prada has made efforts to go public five times since 2001, the group’s solid financial performance in 2007 boosts prospects for a successful IPO. The few luxury houses that have held out include Chanel, Armani, and Versace. According the Bloomberg, Prada’s IPO will be the largest IPO in the luxury goods industry at 5 billion euros (US$ 7.2 billion). Two kinds of luxury goods houses go public. The first is the large, diversified conglomerate like LVMH, which owns such design houses as Givenchy and Marc Jacobs, controlled by professional managers. The second is the family-run companies like Hermès, whose voting stock is closely guarded by the Hermès family. Prada is of the latter type. A public offering provides both these types of companies with the financial capital to drive further expansion and diversification. There are alternatives to going public. Other design houses like Valentino and Tommy Hilfiger have opted to use

private equity to finance their growth. Nevertheless, the increasing number of fashion houses seeking to go public indicates the rising costs of operating a luxury goods company. Entering new markets to cater to the neuvo riche in China, India, and other developing countries is expensive. However, going public exposes the luxury goods sector to the vicissitudes of the market. Of particular concern now to European luxury brands is the weakening dollar relative to the euro. Many companies have artificially suppressed prices to keep American consumers happy. However, greater discounts mean lower margins. Is the Bling Devaluing? Even the rich are not immune to the economic downturn. According to the Chicago Tribune, the average amount spent by affluent consumers on luxury dropped 21% to US$12,142 in the third quarter of 2007 from an average of $15,283 in the second quarter. With luxury items bearing the brunt of the decline in spending, the balance may tip towards catering to the masses instead of the exclusive rich. A few years ago, UK head of Cartier Arnaud Bamberger noted: “The purchase of a luxury good is no longer the ordinary privilege of exceptional people, but also the exceptional purchase of ordinary people.” Now, it is rapidly becoming apparent that luxury items are becoming the ordinary purchase of ordinary

people as well. The commoditization of luxury has resulted from the fine adjustment of prices, such that items were expensive enough for the middle-class to take pause before purchase, but priced low enough to be affordable to more than just a select few. While buying luxury items retains its exclusivity for the majority of people, investing

in luxury stock is not a luxury purchase. The appeal of investing in luxury stocks is considerable. The fundamentals appear outstanding as the number of consumers in much of Asia and the emerging markets wanting to buy Western luxury brands is rising every day. The luxury product business generates strong liquidity and most companies have very little indebtedness. The operating margin is often over 15 %, with the companies able to dictate prices on their goods, depending on their success in brand management and marketing. The significant financial cushion luxury goods firms are reaping from IPOs and private equity funds translate to expansion and growth. Large sums of money are being spent to enter new markets and large luxury companies have the advantage of economies of scale. Several risks remain. Aggressive diversification into developing markets exposes luxury companies to unexpected events such as the outbreaks of bird flu and other crises. This would lead to short-term collapses in sales in the luxury goods industry. Another aforementioned risk is the growing strength of European currencies against the dollar and Asian currencies. The old-line European luxury goods companies maintain their prestige and tradition through their in-house design and continue to manufacture the majority of their products in Europe. Outsourcing the fine leather stitching of Gucci shoes to China would undermine any brand credibility. Nevertheless, the demand for luxury stocks does not appear to be diminishing in the near future with growing world affluence, despite the recent stock price decline in the latter half of 2007. Luxury goods are still in vogue as the rich get richer. Exchange-rate fluctuations can be compensated for through price adjustments over the long term, however. Given the promising fundamentals of the luxury goods industry, common investors have shattered the highly coveted exclusivity of LVMH, Hermès and Bulgari, once the sole preserve of the aristocracy. Make It Happen 3rd Edition

No Business Like Show Business

to facilitate networking among women in the industry, supporting their endeavors and promoting their projects. Important work since, as Lawler emphasizes, there is a changing dynamic Theresa Moore has a quote on her desk, in the field as many new jobs are being created “Make visible what without you might perhaps to produce content for new platforms, like small never have been seen.” It is a fitting quote for a personal devices. According to Moore, this new dynamic has woman who started her own production comcreated a more level playing field, in which “no pany, T-Time Productions, in order to have one has the advantage.” She has seized the opmore control over her professional life. Yet in portunity to establish herself in the industry. the course of interviewing five women from After working at Coca Cola in Olympic Operadifferent parts of the media industry, we have tions and Marketing, and later at ESPN, Moore come to see it is a fitting quote for each of them. began to feel that she was not getting the chalIt captures the spirit they embody, and the drive lenges that she wanted in her professional life. that has made them successful. “Rather than complaining about what was not In many college surveys, the media ranks as being done, it was time to go out on my own,” the industry that the greatest number of recent she explains. graduates aspire to work in. But unlike medicine, Her initiative paid off. This past year, Moore’s law, or teaching, there is no degree or career multi-media content creation company propath that guarantees success (or even employduced License To Thrive: Title IX at 35, which aired ment). In an industry that is ever changing, how on ESPN networks. She now has a multi-media can young women break in and establish themmotion comic, 101 Ways to Die, in production selves? According to the professionals we spoke along with numerous other projects. to, being successful in the media is all about beAccording to Lawler, Moore’s entrepreneuring self-motivated and taking risks. ial path is the best approach. “Women have to The media is not only one of the most detry to make their own work in order to break sirable industries; it is also one of the most diinto the larger industry,” she explains. Despite verse. As technology changes the nature of the industry, reducing the dominance of television significant progress, there is a shortage of womand film and introducing other mediums, such en in creative positions (only 28% of writers are women, acas online and cording mobile conLicense to Thrive: to Lawler) tent, there are Title IX at 35 tells and at the “endless ophighest levthe unique history of portunities,” el of execsays Moore. the Title IX legislautives the Terry Lawltion and its role in white, aller, the Execushaping generations male suite tive Director of female leaders. You can view the project is still the of New York standard. website at www.licensetothrive.org. A copy of Women in Film Thanks to and Television the License to Thrive television documentary, organiza(NYWIFT), which aired on the ESPN networks, is curtions like describes the rently available on DVD. NYWIFT media as a conand the eftent delivery forts of countless individuals, women are helpindustry; “the content has to be created and deing each other to succeed. “There are women livered. You need to find and create the material, involved in so many facets of media,” says finance it, make the deals, get the talent, then Moore. “We are always trying to figure out how produce and distribute it.” NYWIFT is helping By Madeleine Bennett and Tessa LyonsLaing Harvard College

Tools for Success

Theresa Moore, founder of T-Time Productions. For more information about her company, visit www.ttimeproductions.com. we can partner and help each other.” Recognizing that her own success is in part due to the support she had from a number of women in her life, Moore has wholeheartedly adopted the role of a mentor. “We have the next generation on our shoulders,” she says. In order to overcome the challenge of a glass ceiling, “we need to make sure that young women are in the pipelines.” Suzanne Lyons, Executive Producer and founder of Snowfall Films, takes Moore’s vision for women in the industry a step further. Lyons gave up an unprecedented career as VP of Marketing and Promotions at a major Canadian television network to pursue film in Los Angeles. In response to the disillusionment she experienced during her first years in southern California, Lyons co-founded the Flash Forward Institute with the mission of “nurturing enterprising talent.” She has led hundreds of seminars promoting mentorship and collaboration in entertain-

ment internationally. “Get educated,” remarks Lyons, “Get mentors, then become an enroller. You have to be a generator.” Lyons echoes the sentiments of Lawler and Moore, valuing self-motivation as a key to success in the entertainment business; “People are quick to blame the industry. No negativity. You have to put yourself in the script.” As we move into the new millennium, Lyons, Moore, and Lawler see women as a driving, creative force that will bring progress and new perspective to media. Lyons emphasizes the compatibility of the female character with the cooperative demands of a job in corporate media; “Flexibility, lack of ego, and honesty. In this industry the laws are changing all the time and the woman’s foot is less nailed to the ground.” Patricia Quinlan, Production Manager at the Boston Artists Reparatory Theatre and founding member of the Boston Shakespeare Company, understands better than most the importance of flexibility in media. With the emergence of film and television, theatre has entered a re-inventive era in which collaboration and

write.” Considering the breadth of the industry, the question of course of study is a difficult one to answer. While some schools, particularly at the graduate level, offer programs that focus on production, journalism or other media-related fields, many students attend colleges where such degrees do not exist. Yet, it is generally felt that a liberal arts education can serve as a strong foundation for many careers in media.

important thing is to get experience in first hand production. You need to understand production to understand why the business works the way it does.” She suggests contacting independent film companies and volunteering for producers who will give you responsibility and expose you to the production side. The National Alliance of Media Arts and Culture, an alliance of non-profit media organizations, provides a great resource for contacting organizations in your area (for more information, visit http://www.namac. org/). Although networking, education, and experience can give young employees a head start in the industry,

“You [have] to make yourself valuable and make yourself marketable. It’s how you own it and what you bring to it.” risk-taking are essential. Quinlan acts as a bridge between the creative and corporate worlds and is constantly adapting. “It is an ever changing job in that the product is always different. We put budgets together before we know what the end product will be. As the vision unfolds we have to adapt.” As media and technology grow, women in different areas of the industry face unique challenges. Like Quinlan, Crystal Johns must constantly respond to changes in the industry. In her case, globalization provides the impetus. As The Director of Talent Development & Diversity Recruiting at CBS, Johns explains, “We’re becoming a global marketplace. The Hispanic and African American markets are both growing.” Johns believes that a diverse workforce is crucial in such a dynamic market. “Companies need to know who their viewers are since advertising drives the business and the buying power is shifting. You need to have people covering and producing stories that have diverse perspectives. And you need them at all levels.” How does one prepare for a career in the broad industry of media where the path is undefined and the boundaries are redrawn daily? When asked what she looks for in potential candidates at CBS, Johns responds, “We look for people who are bright, well-read and who can

Moore, who concentrated in history while she was an undergraduate at Harvard College, believes that her education prepared her well. “Production is all about great content and great story telling,” she says. “Having a history degree very much helped with that, I knew how to research, how to do homework behind the scenes and delve into stories.” Quinlan, who received a B.A. from Tufts in English and Theatre and an M.F.A. in Theatre Production from Boston University, values a directed course of study, “It is important to have a liberal arts education with a focus in arts or language.” However, in the early stages of a career in arts media, “there is no reason to see your abilities as too finely defined,” says Quinlan, “You may as well feel that you can do anything.” “The more you know, the more you can do,” adds Johns who double majored in Business Management and Communications as an undergraduate at Simmons College. She also stresses the importance of internships, “Really be looking ahead in your Junior year. Have a sense of what you want to do and what your strengths are, and then package yourself like you did for college.” Regardless of the area of media that you hope to work in, Lawler emphasizes, “The most

a career in media requires more than a resume. When she first graduated, Johns held a series of jobs in PR and Production. In many of these early positions there were no real job descriptions, “You had to make yourself valuable and make yourself marketable”, she explains. Johns became CBS News’ first-ever Director of Talent Development & Diversity Recruiting in 2006 and although she is now an established professional in the industry, her drive and initiative are just as relentless. “It’s how you own it and what you bring to it,” she says. Initiative is a key ingredient to success in any industry. But the media, more so than others, is continuously evolving and demanding new creativity. The women that we interviewed each had a unique path, yet they share a common willingness to seek out risks and capitalize on new developments. “You have to realize that your fate and your destiny is a lot in your own hands,” Moore tells me as our interview ends, “create your own opportunities.”

For more information on the CBS News Internship Program visit www. cbsnews.com! Make It Happen 3rd Edition

A Passion for Fashion

Entrepreneur & Animal Advocate Ashley Paige The Industries We Love

By Winnie Liu Harvard College Ashley Paige has been hailed as the newest “it girl” in fashion. She has forever changed swimwear with her unique, handknit bikinis, which have appeared in countless magazines including Vogue, InStyle, and Elle. In addition, Paige’s talent for innovation and design has been featured in a reality television show on TLC. Despite these tremendous achievements, managing her career in the fashion industry, Paige is the first to admit that she never imagined herself owning a business. She struggles daily as Chief Financial Officer of her company, but her passion for design is what keeps her going. Paige attributes her drive and commitment to the challenges she faced growing up. She was raised in an underprivileged Florida neighborhood by her grandmother. Her resentment of growing up on the wrong side of the tracks would plague her for years. “I wanted to get out of a small town and I thought I knew everything. I wasn’t doing what I should do with my life.” With three hundred dollars in her pocket, an 18-year-old Paige moved to San Diego by Greyhound bus, but the change of scenery did little to change her lifestyle-she continued to spend her days partying. Paige attributes the ultimate turnaround in her life to a spiritual epiphany in which she realized that she was not taking advantage of her potential. Deciding to get her life in order,

she often feels that her father and boyfriend are with her. “We have miracles all the time. The IRS payment is due and I won’t have the money to pay it, but all of a sudden someone will come in and buy a bikini.” She reflects, “Miracles have kept me going. What adversity can do for you is amazing.” Paige’s story is certainly one of perseverance. True success for Paige is when you “just keep going, getting up everyday, and going to work.” “If you run into a brick wall, personal or financial, channel it and go the right way.” The shocking loss of her boyfriend and father solidified Paige’s drive. She realized that life could be taken away at any moment, and that she had no more time to waste. Having chosen to turn her life around, Paige decided to pursue fashion design. She had been interested in fashion ever since she was young, working her first job at the retail-clothing store Contempo Casual. A career in fashion made perfect sense. “I asked myself, what am I going to be? Fashion school sounds like something I could do.” Although she knew that fashion was her calling, Paige was not always a swimwear designer. She tried designing dresses and fashion wear but felt that she did not fit into the corporate design industry. “At school, I would take drawing classes and I would draw bikinis. I thought to myself, either I can’t draw or it is my destiny to do bikinis.”

After six months of research and development, Paige saved up enough money to show her bikinis at a trade show. She still clearly remembers the moment that would ultimately change the course of her career. “I had one little booth all the way in the back and all the fashion editors took pictures. I had a niche product which was different and focused and my product got great exposure.” That year (2002) Paige’s bikinis landed eight magazine covers. Although Paige has found success as an entrepreneur, not having a business background makes her job as CEO challenging. She says, “I think the hardest thing was not

“Ashley Paige is on the diving board about to do a triple back-flip and she just needs someone to fill the pool.” Paige took out a student loan with the help of her boyfriend so that she could go back to school. Just as Paige began to take charge of her life, she faced more hardship. During her first semester at school, her boyfriend passed away, and shortly after, her father suffered a fatal heart attack. Rather than allowing feelings of resentment to overwhelm her again, Paige tried to remain optimistic. Even today, 22

She also attributes fate, creativity, and her other interests to her decision to design swimwear. Paige sold some of the bikinis she designed to her classmates, but she knew that she would have to better develop her designs in order to form a collection. To make her product stand out from other swimsuits, Paige decided to produce bikinis using handknitting looms. She thought, “No one else is doing knit bikinis which are water friendly.”

having gone to business school. In this business, you get beat up a lot emotionally and financially. You have to sacrifice a lot. You kind of go blow to blow.” Paige has struggled to find a large-scale investor to support the mass production of her collection. She adds, “I’ve never heard of anyone who has ever started their own business and it was all roses.” Although her establishment in the fashion world proves that Paige has excelled as CEO,

she downplays her achievements. “I’m a tactical person who does the travel. I need to go to tradeshows and fashion shows. That is what the designer should be doing and not worrying about the shipping date.” Paige’s marketing and entrepreneurial skills have been indispensable in her rise in the fashion industry, but in the future she recognizes that to expand her business she needs help managing its finances. She says, “Ashley Paige is on the diving board about the do a triple back-flip and she just needs someone to fill the pool. The CEO is the water and the pool, the team. I’m ready with the press, product, and demand.” Paige knows that she cannot be designer, CEO, and CFO at the same time. She hopes to stick to what she is best at: the marketing and design of her product. Confident, she says, “I’m good at turning out products. It’s a lot of seasons: spring, summer, back to school, winter, cruise. I can show a great line but then the next six months are hard because I have to figure out how to ship products.” Despite the challenges that lay ahead, Paige will continue to “live fashion show to fashion show, bikini to bikini, dollar to dollar.” Her acclaimed TLC reality television show, Ashley Paige: Bikini or Bust, has helped publicize her company. Hopeful, she says, “People see the potential to make money. They like my designs and my drive.” Since the show began, her business has received thou-

doing in the 60’s and doing business. It’s an added challenge to add to all the other challenges of being a businesswoman.” Learning from her past, Paige uses the adversity as an incentive to work harder. She says, “Being the woman that I am, I am stubborn, I will fight and fight to prove them wrong. So I think a man in my position may not have had as

pay off the charity’s veterinarian bills. One day she would like to build an animal sanctuary, but until then she will continue to raise awareness through in-store adoptions and billboards. So how does entrepreneur Paige juggle so many roles so successfully? She believes that incorporating her personal philosophy into everything she does has given her the extra drive and passion she needs. Her devotion to her business and charity is obvious-“It makes it fun. A lot of people think that they have to do charities later in life, but life is short-we never know when it is going to be our time to go.” In addition to incorporating one’s personal philosophy into your career, Paige advises aspiring businesswomen and fashion designers to start early, do research, and never give up. She recommends that you pursue internships at as many fashion houses as possible to learn the ropes of the industry. For anyone who is trying to sell a product, Paige

“What adversity can do for you is amazing.” - Ashley Paige sands of phone calls and custom orders. The show has also opened up the teen market for her swimwear. In addition to the everyday struggles of an entrepreneur, Paige has also faced many challenges as a woman in the fashion industry. She described this industry as a “boy’s club filled with money and mean Garmentos.” As a self-proclaimed “hippie artist girl” who is trusting and sensitive, Paige does not quite fit in. In addition, many international partners are not used to doing business with women. Paige realized that she was being defrauded by a factory in China when she accidentally received an e-mail from the factory which revealed it was secretly selling her swimsuits without her consent. “Oversees there is still this mindset that women can’t do it.” She adds, “Women are the breadwinners, and we are the ones who have our own businesses and are raising our families (in my case dogs). We are doing all the things we were

many obstacles. It gives you this fight…I have to make it.” One would think that battling the challenges of the fashion and business world would leave Paige with little energy to do much else. However, Paige is not only an entrepreneur as the designer and CEO of her own business, but she is also a philanthropist. Her charity, Ruff Houzen, is devoted to finding safe homes for rescued dogs. “I think the most important thing is that when I decided to do my own thing I decided that my philosophy would be environmental welfare and animal rights.” She adds, “I just started rescuing dogs and I have my store, so I do pet adoptions at my store. I bring dogs on the runway.” Paige pledges to never use fur in her collection and is optimistic that people are trying to change. Recently Paige’s charity saved nine dogs from being euthanized. She hopes to use the influx of donations she has received since the show began airing to

says to make sure that the market is not saturated and to “be really honest to yourself.” She adds, “You can’t have an ego. Get rid of it right off the bat.” Her best piece of advice comes from singer Loretta Lynn- “You either have to be first, best, or different.” Always insightful, Paige says, “If you are the best or the first you will succeed.” Paige’s bikinis may not be the first, but their revamped style certainly makes them unique. As one of the most popular designers in the world, Paige is surprisingly modest and down to earth. Anyone who speaks with her can instantly tell that her confidence is genuine and not overbearing. She is an inspiring entrepreneur as an established philanthropist, designer, and businesswoman. Never ceasing to reach for success, Paige wants her company to be “the next American luxury brand with a heart.” Many would argue that Paige has already accomplished that feat. Make It Happen 3rd Edition

The Industries We Love

Bobbi

Brown Q&A with the revolutionary makeup artist and CEO of her own company Growing up in Chicago, Bobbi Brown was always fascinated by her mother’s makeup. She pursued this passion earning a degree in theatrical makeup from Emerson College. Throughout her career, Brown has always believed that makeup should be natural and allow women to feel more confident. Teaming up with a chemist, Brown created her first product, a lipstick which was both flattering and natural. As a mother of three and CEO of Bobbi Brown Cosmetics, Brown has expanded her makeup collection to include skincare and fragrance. Brown’s products are regularly featured in beauty magazines including “InStyle”, “Elle”, and “Glamour.” In addition to running her company and creating new products, Brown has supported Dress for Success, a charity which helps underprivileged women prepare for the workforce. She has also written numerous Bobbi Brown beauty guides including Living Beauty, Makeup Manual, and Beauty Evolution. From the first lipstick she created to the establishment of her makeup empire, Brown has revolutionized the industry while staying loyal to her philosophy of natural confidence. 24

HUWIB: When did you realize you wanted to make a career out of your passion? B.B.: I was in college when I realized I could turn my love of makeup into a career. I majored in theatrical makeup and in my senior year I read an article about a freelance makeup artist named Bonnie Maller. Her job was all about freedom and creativityexactly what I wanted in a career. HUWIB: How did you face insecurities when you were growing up?

B.B.: I dealt with insecurities the same way every other girl does. As a young freelance makeup artist I was always surrounded by models that were rail thin and 5’11 - and standing just 5 feet tall I couldn’t help but feel insecure. After a few years working in the fashion and beauty industries I realized that I had a choice. I could either feel bad about what I wasn’t or accept myself and feel good about what I had. I’m 51 and feel better then I’ve ever felt in my own skin... HUWIB: Did you ever dream that you

would be a businesswoman and the owner of a multi-million dollar company? B.B: No! When I created my first 10 Lipsticks I just wanted to give women options that were flattering. HUWIB: How do you come up with ideas for new products like your fragrance and your line of baby products? B.B.: Almost all of my products are inspired by a personal need-or the needs of the women around me. Other products are inspired by things or places that I love. Beach fragrance was inspired by my favorite place in the world-the beach. The “juice” smells like the Coppertone sun block that I wore as a child. I developed my baby line when I became a mom and couldn’t find baby products that weren’t overly scented. HUWIB: What is your favorite Bobbi Brown product at the moment? B.B: My favorite product is concealer. A creamy, yellow-toned concealer is the best way to cover dark circles and it instantly makes you look refreshed and well rested. HUWIB: When you unveiled your first line of lipsticks at Bergdorf Goodman you only expected to sell 100 in your first month. What was it like discovering that you sold that many in the first day? B.B: I couldn’t believe it. All I wanted to do was create lipstick that looked like a woman’s lips. HUWIB: How have you combined your personal philosophy with your business philosophy? B.B.: I approach work the same way I do my personal life. I keep things simple, real and approachable. When I create a product, I always ask myself: “Is this something

“You can have all the book smarts in the world, but if you’re not hardworking and passionate, you won’t succeed.” Make It Happen 3rd Edition

“I was once told by one of the biggest photographers in the industry that I would never make it unless I ditched the natural look and started to follow trends, now look where I am.” The Industries We Love

that women need? Is it going to make things and better for women?” I know what my priorities are-my family-and that guides all the decisions I make.

ers succeed was inspiring. HUWIB: How would you advise other businesswomen who would like to give back to their community through their passion? B.B: Find a cause that means a lot to you and make it your priority to provide to it in any way you can. Don’t get overwhelmed thinking that you have to start off big. Anything you do to help others makes a difference.

HUWIB: In your opinion, how much of success is a result of intelligence and how much of it is motivation? B.B.: You can have all the book smarts in the world, but if you’re not hardworking and passionate, you won’t succeed. HUWIB: What is the most fulfilling part of your job? What is the most challenging? B.B: The most fulfilling part of my job is helping women. I love when women tell me how pretty they feel and how much more confidence they have after they use my products-that means more to me than anything else. My biggest challenge, as it is for many workingwomen, is balancing my work and the rest of my life. HUWIB: Do you ever find it hard to juggle being a mother, makeup artist, and CEO of your own company? B.B: Yes of course, but I am a firm believer that family comes first. There are certain days that I work from home and I do not let anything in my career conflict with those days. It’s important to strike a balance and keep your priorities straight. HUWIB: What made you decide to partner with Dress for Success New York? B.B.: I first decided to partner with Dress for Success when I heard its founder, Nancy Lublin, speak at a luncheon I attended. She started the foundation with a $2,000 inheritance she got from her grandfather. Her passion and willingness to help oth26

HUWIB: What advice would you give to young women who want to pursue a career in business? B.B.: Don’t ever give up. Continue to try your hardest no matter what obstacles come your way. Also, always follow your gut. I was once told by one of the biggest photographers in the industry that I would never make it unless I ditched the natural look and started to follow trends, now look where I am.

The Bobbi Brown Lifestyle

Bobbi’s philosophy is about finding balance and cultivating a positive outlook – it’s a way of life. 1. Always be on time. 2. Look people in the eye. 3. Tell the truth. 4. Don’t smoke. 5. Drink lots of water. 6. Exercise. 7. Eat healthy. 8. Read. 9. Be nice. 10. Never give up.

HUWIB: What is your biggest regret? B.B.: I don’t have any. HUWIB: Where do you expect to be in five years time? B.B.: Relaxing on a beach!

Tools for Success

The survival guide for your business career 27 Second Steps in Financial Freedom

34 From the Floor to the Boss

29 Work Wardrobes from Around the World

36 Wage Negotiation

32 Tips on Scoring the Perfect Summer Internship

36 Industry Advice for Affordable City-Living 38 Industry Advice for Networking

33 The Fluency Factor

Second Steps in Financial Independence

How to continue managing your finances

By Shikha Dilwari University of Western Ontario, Canada Throughout life, everyone is devoted to overcoming one obstacle or another. As a child, you worked towards liberating yourself from your parents’ clothing choices. As you got older, you try to make a specific team, or join a certain club. Most recently,

does change. Surrounded by an everadvancing market, as time passes, new desires surface, and therefore additional means of spending result. From past challenges, you probably have had to learn the craft of self-control and have learned to exercise it successfully. However, as put forth by Freudian thought, it is in human nature to act on instinct, without consid-

ing your spending will allow you to identify why you may have exceeded your budget. By increasing your awareness of where the money goes you will be better able to prioritize and monitor your spending. You will be able to reduce expenses where possible and see when and how often you can indulge in the spontaneous sushi dinner or the more luxurious Prada pumps. While

“[F]inancial freedom is not something you just acquire as you get older. Whether you are 18, 35, or 60, debt does not discriminate.” you have worked to get into the college of your choice. However, one of life’s most daunting challenges is learning how to appropriately manage the money you earned on your own- financial freedom. Unlike some of life’s earlier obstacles, financial freedom is not something you just acquire as you get older. Whether you are 18, 35, or 60, debt does not discriminate. Therefore, it is never too early to begin protecting yourself from financial instability. Saving vs. Human Nature The principle of saving seems simple enough to understand: as your income increases, your savings will also increase as long as your consumption does not change. The trouble is that consumption

ering the long-term consequences of our actions. While to suggest that humans are invariably unable to exert self-control is to underestimate human nature, slipping up is not uncommon. And so it happens, and unfortunately these slip-ups tend to be on big-ticket items. Constantly restricting yourself would ruin the excitement of seizing the day. However, while spontaneity is fundamental to some of life’s most memorable experiences, it is not the key to financial freedom. What you must strive for is balance, and the best way to achieve this is by establishing an effective system of checks and balances. By keeping a consistent account of your spending, no matter how insignificant, you will be capable of more effective money management. Additionally, examin-

the concept of keeping track of how you spend your money seems simple, the key to a successful system of checks and balances is consistency. If you make a habit of recording your expenses, you will be poised for financial stability. Be Aware vs. Beware of Technology Today, the internet has made your finances accessible anywhere and anytime. By logging onto the Internet you can transfer money from one account to another, just as common as the Internet nowadays is the credit card. Although they may not seem like the latest innovation, credit cards have made it possible to furnish a whole home with just a swipe. The progression of technology provides many useful tools for managing finances. However, while Make It Happen 3rd Edition

Tools for Success

some tools such as online banking have generally positive effects on money management, other tools have the tendency to generate a sense of false optimism and thus, can cloud the reality of your financial situation. Overspending, unpaid bills, and bad credit are common results of credit card overuse and unfortunately, overuse is quite common. Credit cards can lead people to believe that they will always have a backup method of payment in case they find themselves in a financial rut. Credit card debt is often considered inevitable for college students that will be paid off once they are fulltime members of the labor force. However, accepting this state of debt can have serious implications on your credit history. Similar to a student’s grade point average, credit must be looked upon as a running tally. Therefore, the diligence with which you pay your credit card bills today will affect your financial freedom in the future. Your credit history affects whether creditors will agree to loan you money. Consequently, misspending today may affect your ability to establish your preferred lifestyle after you receive your diploma. Equally as detrimental as the consequences of credit card debt are the implications of prolonged mismanagement on your spending habits. By consistently defaulting on credit card bills, or using your credit card as a fallback method of payment, you are more prone to continue this behavior in the future. Therefore, the time to create good spending behavior is now. While to stop using your credit card completely would be extremely unrealistic, you must be very conscious of how you manage your bills. One alternative to tossing out your credit cards is to increase your awareness about your credit status by using beneficial tools such as online banking. Don’t let credit cards scare you! There are tools available to help improve money management, but you 28

must be careful with how you use these innovations in order to avoid misspending. To Buy or Not To Buy: Using Opportunity Cost Many college students are financially dependent on their parents. Most students have

also held some form of employment and understand that making an honest dollar is not easy—in the least, it involves getting a stubborn child you have been babysitting all evening to obey his or her bedtime. However, their appreciation for money will only grow after they become full-time members of the labor force. Consequently, opportunity cost can be a useful determinant for students when deciding whether to buy something. Opportunity cost is the value of the next best alternative forgone when you make a financial decision. It reveals other ways of allocating your money that you have given up by making a given purchase. For example, if you bought a $30 shirt, you could have bought six $5 magazine, or fifteen cups of $2 dollar coffee. By referring to opportunity costs when spending, you will be more aware of what you are giving up with each decision you make, therefore increasing your appreciation for money. Even when it comes to less substantial purchases, opportunity cost should be considered, because small-scale spending can

add up. For example, if you buy one specialty drink from a coffee shop at $4 each day, your monthly spending on these drinks will sum to $120, and your yearly expenditure will be $1440. While your caffeine fix may be important to you, considering other ways this amount of money could be spent, and the

benefits of saving it, may lead you to reconsider your daily latte. If you decide you cannot live without your coffee, you will at least be aware of what you are forgoing for your decision. Taking Advantage of Your Clean Slate The financial obligations of students are negligible compared to what they will be as their responsibilities inevitably increase. Students must take advantage of their clean slate by experimenting with various financial tools and different methods of managing their finances now. This way, when your financial situation becomes more demanding, you will already be familiar with the approach that suits you best. Essentially, the key to overcoming the lifelong challenge of managing financial freedom successfully is to establish favorable spending and money management habits early on in life. By taking pre-emptive measures, you can not only overcome, but also avoid financial volatility, giving you the ability to focus on some of life’s more compelling challenges.

Work Wardrobes from Around the World This summer four of our writers report on workplace wardrobes from the cities in which they were studying or interning. What did we find? London is a bit trendy, Shanghai quite conservative, Paris is feminine, and Tokyo simple. But overall, the norms for appropriate work-attire cross borders. By Tessa Lyons-Laing Harvard College

Pooja Dewan, 20 Lehman Brothers, Summer Analyst Career goal: Build my own empire Wearing: Dress from French Connection, Dolce and Gabana bag, Primemark blouse Work appropriate is... I think for women there are a lot more options. The one thing I would say is that a shirt always needs to be ironed.

London Michelle Jacob, 21 Citi, Summer Analyst Career goal: Fulfill my potential Wearing: H&M shirt and cardigan, belt from River Island, skirt from Miss Selfridges Work appropriate is... no really low-cut tops, no t-shirts, no over the top make-up. Make It Happen 3rd Edition

Shanghai

Esther Chen, twenties Hay Group Shanghai, Administration Manager Career goal: To continue with the Hay Group What she’s wearing: Casual sweater over a knitted top with a pencil skirt and heels Work appropriate is... business casual. Typically women wear a button down shirt, a sweater, or a nice top with a skirt or pants. Shoes are usually closed toe and flip flops are not permitted.

Tools for Success

Sunny Tang, 22 China Universal Asset Management, Fixed Income Trader Career goal: To get an MBA in America and return to China to work. What she’s wearing: A purple silk blouse with a gold belt, grey kneelength shorts with gold buttons, blue, closed-toe pumps. Work appropriate is... business casual to business formal, typically the men wear business formal while the women wear business casual.

Nishimura Midori, 22 Jinzai, Saleswoman Career goal: To move up in the company What she’s wearing: Skirt and shirt in neutral shades with closed-toe flats Business appropriate is… a simple style that looks professional.

Paris Amélia Bandera, 24 BNP Paribas, Marketing Intern Career goals: Continue to work in marketing What she’s wearing: Knee length skirt and black silk scoop neck top Work appropriate is... comfortable and classic.

Sandra Duval, 26 Ernst & Young, Financial Analyst Career goals: No idea. For now, I am happy where I am. Later, we will see. What she’s wearing: Knee length skirt with belted bow, light blouse, and open-toed shoes Work appropriate is... conservative but feminine.

Tokyo Chihiro Fujita, 21 Cabinet Office of Japan, Public Relations Career goals: To work in management for a clothing retailer What she’s wearing: Knee length shorts and a bright knit sweater, which she spices up with a Miu Miu bag and heels Business appropriate is… suits that can take her from the office to press conferences. Make It Happen 3rd Edition

Tips on Scoring the Perfect Summer Internship! By Nathalie Tadena Northwestern Univeristy

it differs from company to company, business internship recruiting cycles typically begin in January. However, communications internships generally begin recruiting in March, though some larger firms will start in February. Many non-profit organizations will start recruiting in the spring, but larger organizations may have earlier deadlines. After identifying a target area, the next

cus on the skills you offer that would be most beneficial to that particular industry. Be sure to apply to as many internships as you can. Even if you think a certain internship is perfect for you, keep an open mind and consider also applying for other related internships. In cover letters, as well as interviews, it is important to show that you are not only well-versed about the position you are applying for, but also well-versed about the company’s hierarchy, what the company does, who the CEO is, and other pertinent information specific to that company or industry. Be sure to send in your completed materials in advance of the internship application deadline. After reviewing hundreds of resumes, companies will select some of the applicants

Tools for Success

Whether the panic sets in early or at the last minute, every undergraduate has experienced the panic of realizing that they have not obtained the crucial summer internship. Aimee Florez, an internship specialist at Northwestern University, encourages students to start the search early, perJuly-August: Start thinking about what January-April: Although it differs from orhaps even a year industries or areas you are interested in. before they hope ganization to organization, this is generally Do as much research as you can about to assume a fullwhen the business industry recruits summer specific industries and companies you time position. employees and interns. “The less dewould like to work for. cided about what a student wants to January March May July September November do after graduation, the more necApril February June August October December essary it is that they begin their search very early, even as soon as the spring Fall: Attend as many informational meetings, before the summer campus events and job fairs where there may be in which they are recruiters of companies you are interested in. hoping to get an internship,” Florez said. “This will ensure that they have time step is to consider specific companies or or- for interviews. Your answers should reflect for self assessment, career counseling, build- ganizations that fit your interests or values. something positive about yourself. You should ing networks and networking, informational Make a list of criteria you are looking for in never say anything negative either about your interviews, industry research, and preparing a company or internship position. You should own qualifications or about the actual job poand targeting their application materials.” attend as many campus events, information sition. The business sector is a very broad sessions, career building workshops and job During the interviews, recruiters often field—if you are looking for a “business in- fairs as possible, in order to meet a variety ask you to elaborate on experiences and skills ternship,” one of the first things you should of emoloyers.If you meet recruiters at these listed on your resume. Make sure to review do is to consider what area of business you events, it is important to keep in contact with concise summaries of your accomplishments are interested in, whether it be finance, mar- them in order to show a continued interest prior to the interview. Employers expect you keting, public relations, information technol- in their organization. Also, take advantage of to be knowledgeable about the companies ogy or management. It is important to do the resources you have, such as career service you worked at in the past. “You have to be this early since narrowing your focus takes offices or contacting people from your own able to back everything up on your resume,” a “good amount of time” according to Flo- network, school alumni or other professional Ahuja said. renz. Beginning the process of the intern- associations associated with the industry that Once you’ve secured an internship or job, ship search as early as possible helps you to most interests you. Additionally, Florez said use that experience to build relationships with identify your interests and build relationships that you should “learn everything you can employers and other leaders in the industry. without missing any important application about your industry.” Try consulting intern- Although the internship search and applicadeadlines. ship books or reading about specific compa- tion process may be long, putting the time Once you have narrowed your area of nies. and effort into preparing your materials and interest, you should do further research to Once you’ve done your research, you can researching the industry will definitely pay off get a sense of what recruiting cycles look start preparing targeted application materials, when you walk into the office of your dream like and when to expect deadlines. Though namely a resume and cover letter, which fo- internship. 32

The F lu ency Factor By Aylin Erman Harvard College It seems that with the unceasing wave of globalization and the fluid transfer of goods across national borders, there would be an alarmingly high expectation among Americans to acquire foreign language skills. Foreign language skills allow businesses to effectively communicate in global markets, as well as to show respect for cultural nuances and corporate practices abroad. However, there is no sense of urgency among Americans to learn new languages. English has established itself as the unofficial language of the world, and many firms have taken this for granted, ultimately deeming foreign language skills secondary to other skills. Multinational corporations have suffered the repercussions of such assumptions and now realize the importance of multilingualism in the global market. In fear of losing respect from foreign businesses, American firms are beginning to value foreign language skills in prospective employees. Learning another language is conducive to cultural sensitivity, which is vital to successful communication between firms of different countries. So when job searching, keep in mind the added advantage you may have by knowing at least one foreign language. Be careful when claiming proficiency in a foreign language. You should not allege competency if you cannot confidently vouch for it. Professing fluency in a language will booster your candidacy but do consider the added responsibility involved in the work environment when required to practice that particular language. Falling short of your claim could cost you a job. Levels of competency, from “beginner” to “advanced,” are loose terms, and because it is difficult for even you to evaluate your own skills, let alone an employer, it is important to have evidence to substantiate your claims. At most colleges, students have many options when considering acquiring a foreign language. Some colleges offer language citations to students who take the same language above the first-year level as long as two of them are at the third-year level or beyond. Often approved courses are listed on departments’ websites. A Language Citation acts as proof of high competency in a foreign language and can complement your resume. Plan your courses in

advance, trying to take them consecutively so as to maintain your speaking skills. Also, use your summers wisely, and consider spending them abroad. Although you may think that learning another language is futile in your industry of interest, doing so may give you an edge when applying for a job or a promotion. Furthermore, you never know where your job may take you, especially in an gual employees, learning a foreign language is era of globalization. The ability to perform in a life skill that reaps both public and personal a foreign context opens the door to jobs over- benefits. Regardless of what you do with your sees. Even within the U.S., many corporations skills, you can only benefit from understanding value multilingualism. Most large, multina- and communicating in a foreign language! tional firms have stations abroad, and knowing a foreign language puts you in the position to travel to these locations and either work in these international offices or to act as a communicator between the American and foreign sites. If you have taken the Three billion times a day, P&G brands time to learn a foreign touch the lives of people around the world. language, be sure to let your prospective emARE YOU INTERESTED IN: ployer know. When being interviewed, note any  Entrepreneurship? experience you have had  Marketing? abroad in a foreign coun  Leading Multi-Functional Teams? try and also any language  A Fortune 100 Company’s Resources? skills you have picked up  All of the Above? as a result. Do not be EXPLORE P&G BRAND MANAGEMENT! afraid to mention these skills—inter viewers BRAND MANAGEMENT is the moving force behind will only be impressed our business. At P&G, you will receive immediate reby your multilingualsponsibility and own building your part of the business. ism. Foreign language knowledge will make you ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ an asset to many firms, P&G at Harvard: so don’t hide your abil• Fall Presentation (10/22, 8pm) – Faculty Club • Full-Time Application Due (10/29) – eRecruiting ity. Whether you plan on • Spring Presentation (1/30, 5pm) – TBA working abroad or for a • Intern Application Due (2/4) – eRecruiting firm that needs multilinQuestions? Contact decaro.gm@pg.com Make It Happen 3rd Edition

From the Floor to the Boss How Ann Doyle, Harvard class of ‘86 and current Vice-President and General Manager at Gap Outlet, Climbed the Corporate Ladder…and How YOU Can Too! By Christina Hagner Harvard College

Tools for Success

Nearing the end of a student’s college years, the inevitable question is: what should I do next? For those who decide to venture straight into the working world, anxiety and confusion are common side effects. The myriad of potential career options can make it challenging to find a path suited to your interests and future goals. Even once you have decided on a direction to pursue, the struggle is far from over. Getting a job right out of college usually means starting at the bottom of a company amid a sea of other talented, hardworking recent graduates all striving for the same goal of getting promoted. So how do you separate yourself? How do you stick to what you decide to pursue and make it to the top? According to Ann Doyle, it is all about having passion and persistence. Doyle’s progression from a Russian History and Literature concentrator to the current Vice President of Merchandising at Gap Outlet is a real life example of someone who was able to turn a hobby into a thriving career by working her way up a corporate hierarchy. The pursuit of her passions started in her years as an undergraduate at Harvard. Having taken an inspirational Russian studies course in high school, Doyle chose to follow this interest as her major in college. Doyle also continued her passion for clothing design by becoming very involved in theater costume designing. However, nearing the end of her college years, Doyle began to question if her passion-led college philosophy would work in the “real” world. She ventured to the Office of Career Services to explore her op34

tions but found that she did not have the same enthused interest that her peers exhibited for popular fields, like investment banking or law. Realizing that she would only be satisfied by a career she was not passionate about, Doyle decided to pursue clothing design by attending the Fashion Institute of Technology in New York. After fashion school and jobs as an Assistant Manager at Lord & Taylor and Assistant Buyer for handbags at I. Magnin, Doyle was recruited to be a store manager at Gap. Doyle recalls the difficulties she faced as a Store Manager; while she remained stuck on the first rung in a huge corporation, it seemed like her friends in Finance and Law were moving quickly through their first few years out of school. However, reflecting further on the experience, Doyle realizes that her entry-level jobs gave her inside knowledge about the retail business that would become highly useful in her later positions. In addition to the advantages of working directly with the customers and clothes, “being willing to do the dirty work” quelled the unfavorable stereotypes that her skeptical employees had for an Ivy League graduate. Doyle emphasizes that despite the frustrations of starting at the bottom, it is important to be tenacious and never lose site of your end goal. Doyle’s own patience and persistence paid off when the Regional Director came to visit her Gap store and

asked why a plaid blazer was not selling. Doyle articulated that the buttons and design of the blazer did not match today’s female customer. After hearing her response, the Regional Manager told Doyle she would be a great asset in their Merchandising Division. Within a month, Doyle became an Assistant Merchandiser in Gap Women’s Outerwear. After two years of working on the retail floor, Doyle landed her first merchandising job and began her quick ascent up the Gap corporate hierarchy. Feeling that she had finally found her career match, Doyle thrived in the Merchandising Department at Gap. Throughout her time in the Merchandising Department, she slowly moved her way up the ladder holding multiple positions including Manager of Women’s Denim, Divisional Merchandising Manager for the Gap Boys, Global Divisional Merchandising Manager for Kids’ Accessories, and Divisional Merchandising Manager for Women’s Bottoms and Denim. Only one year after being promoted to Divisional Merchandising Manager at Gap Body, she was appointed Vice President of Gap Body, and three years later, she was promoted to VP of Merchandising for Gap Outlet. Recently, Doyle’s climb up the ladder progressed further as she was promoted to VP

and General Manager of Gap Outlet. Doyle’s experience illustrates the advantages of navigating a career within a large corporation. “Even though there are many layers at Gap, I never felt like Gap was a big company.” She adds that she “always had exposure to people at high levels.” A big company with a hierarchical structure allows its employees more opportunities to move vertically within a division or occasionally to move horizontally across different departments within the company. It also offers the benefits of an established infrastructure and an existing network of people. However, it is important to remain wary of the common problems associated with the corporate hierarchy structure, such as heightened bureaucracy and little access to top executives. Doyle emphasizes the importance of finding “a company that you can believe in and can be passionate about. It’s okay then if you don’t

have a twenty-year plan for your life because things will follow through.” As a working mother of two, Doyle has climbed the corporate ladder without compromising her family life. Doyle never felt penalized for her absence and contributes much of her success as a working mom to her company’s strong support for women in the workplace. Gap has a 70% female workforce and has had female presidents at each of its brands. Doyle says she feels fortunate that she has never had to make the choice between having a family and having a career. When asked about the role luck has played in her career, Doyle replies, “Though there is an element of being in the right place at the right time, it is important to never get fixated on the titles. The promotions will come if you love what you’re doing.” It is more important to show that you are willing to work hard and

The Two-Tier Corporate Hierarchy The Roles and Responsibilities of the Key Players: Chairman/Chief Executive Officer (CEO): leader of the corporation, elected from the board of governors; responsibilities include running the board of directors smoothly, maintaining good communication with high-level executives, formulating the company’s business strategy, and representing both the management team and board to shareholders and the general public

Shareholders: any person, company, or other institution that owns at least one share in a company, elect members to the board of directors; profit when the company does well, lose money when the company does poorly

that you have the business acumen and intellectual skills to succeed. Doyle’s progression from Gap store manager to the VP and General Manager at Gap Outlet shows that there often is not a direct path to one’s dream job. Rather, it’s about feeling your way through the job hunt to determine what you like and don’t like. It’s about sticking through the hard times and always keeping your eyes and ears open for new opportunities. For Doyle, having a successful career means that “you are able to learn and grow in your career, work with great people, work for a company that you are proud of, and have fun doing what you’re doing.” While cynics often contend that following your passions is too cliché and unrealistic in a competitive job economy, Doyle’s rapid climb up the corporate ladder shows that there is a genuine truth to finding success when you pursue a career in something you enjoy.

Sample Corporate Hierarchy

Tier One

Chairman Board of Directors Inside Directors

Chief Operations Officer (COO): senior manager responsible for managing the company’s daily operations in marketing, sales, production, and personnel

Board of Directors: consists of inside and outside directors, monitors the managers, acts as an advocate for stockholders, elected by the shareholders; responsibilities include determining the strategic direction and the corporate policy of the company

Chief Financial Officer (CFO): senior manager responsible for overseeing the financial activities of an entire company; analyzes financial data and reports the company’s financial performance to the board of directors, shareholders, and corporate regulatory bodies at regular intervals

Inside Directors: members are either shareholders or high-level executives from within the company, provide internal perspectives on the company to other board members

Vice President: head manager of one of the various key divisions of a company, such as marketing or production

Outside Directors: members are not directly part of the management team, provide an unbiased and impartial perspective on issues brought to the board

General Managers: oversees a firm’s marketing and sales functions as well as the day-to-day operations of the business; Specific duties vary by industry and company but usually the general manager has the authority to hire, fire, or pro-

Outside Directors

Tier Two CEO CFO COO Vice Presidents General Managers Supervisors Employees

mote employees. Managers: have fewer responsibilities and less authority than the general manager Supervisors: most junior management position that is responsible for the day-to-day performance of a small group; guides the group towards its goals, ensures that the group is productive, and resolves any problems that arise Employees/Associates: hired by an employer to do a specific job; the work of the employee is directed and controlled by the employer under a contract of hire Make It Happen 3rd Edition

Wage Negotiation How to get what you deserve

By Jane Wooder Harvard College

Tools for Success

Although today’s glass ceiling is more permeable than it was a decade ago, the salary gap between men and women persists, with women earning on average only 76 cents for each dollar earned by males. Additionally, although women comprise nearly 50% of the US labor force, women run only 4 of the top 125 companies on the Fortune 500. While many social factors contribute to the limits faced by women in climbing the proverbial business ladder, successful salary and wage negotiation by women is a vital element not only in bridging the salary gap but also in gaining respect in a male-dominated environment. Linda Babcock and Sara Laschever’s 2003 book, Women Don’t Ask: Negotiation and the Gender Divide provides provocative statistics regarding women and negotiation: • When asked to pick metaphors for the process of negotiating, men picked “winning a ballgame” and a “wrestling match,” while women picked “going to the dentist.” • Men initiate negotiation about four times more than women do.

• Women who consistently negotiate their salary increases earn at least $1 million more during their careers than women who don’t. Negotiation Tips Prior to negotiation, write down your answers to the following questions. What are your Goals? • What do you want from the negotiation? • What are your cut-offs or limits to agreement? • What specifically does the other side want? • What strategies do you anticipate from them? What are your Trade-offs? • What is the maximum you are willing to give up for the agreement? • What do you anticipate the other side is willing to give up? What are your Assets? • What value do you offer the other side? • Will your relationship with the other side affect the nature of the negotiation? How can you use this to your benefit? • Could the negotiation affect future opportunities with the other side? How will you ensure

the agreement ends cordially? Who Holds the Position of Power? • Which side loses more if the negotiation falls through? During Negotiation Keep these key points in mind during the process of negotiation. Make The Value of Your Proposal Clear • Ensure the other side realizes what they will gain from you. • Transfer power to your side of the table by making clear the loss the other side faces without the assets you offer. Utilize Your Resources • Use any past support or written recommendations to advocate your position. Don’t Hesitate to Say No • Don’t be a “people pleaser” during negotiation. • If a proposal offered by the other side is unsatisfactory, say no, but be diplomatic rather than aggressive. Consider the Other Side • Although your own goals are most important, ultimately, negotiation is a compromise; the agreement will fall through if the other side is dissatisfied. • If the negotiation is stalling, find out the needs of the other side in order to reach a middle ground.

Industry Advice for Affordable City-Living By Windsor Hanger Harvard College, Freeze Correspondent The Experts: Ellen Smith lives in Brooklyn and is a full time nanny for a family with two children. Nikki Johnson, Harvard GST Class of ’08, lived and worked in the City for a year and a half. Kameron Collins, Harvard Class of ‘09, lived in New York during the Summer of 2007, working as an intern for CollegeOTR. Every summer hoards of undergraduates pack their bags and move to New York City – referred to as “The City” by those in the know. For some, the trek to The Big Apple is a return home; for others, it’s a repeat of 36

the summer before; but for many, the experience is brand new. To a seasoned veteran, NYC is exciting and fun, but to the newcomer, the thought of living in “The City” alone can be daunting and overwhelming. First off, stay safe. Always be aware of your surroundings - not only will this keep

you from getting lost, but it will also prevent you from getting robbed. Try not to look like a tourist if you want to avoid undue attention. If you need to look at your map, step inside a restaurant, coffee shop, or gift store in order to do so. Trust your instincts: if you feel like someone is following you, stop in a place with a lot of people around you and wait for the person to pass. Anyone behind you will have an inherent advantage over you, so try to avoid these types of situations. Always make sure to carry cab fare – at least $20 cash with you at all times. This way, in case you get completely lost, you can always hop in a cab and have the cab driver take you somewhere familiar. Cab drivers know the city inside and out. It’s their job. Now that you know how to stay safe, you will need to find a place to live. If you’re going to the city for a short period of time, less than a month for example, an interesting housing option is an apartment sublet. Because of the expensive nature of rent in NYC, many people sublet their apartments when they go on vacation. Sublets are cheaper than a hotel and give you access to the amenities of a full apartment, including a kitchen, which can make eating much cheaper. One useful resource for finding sublets is Craigslist.com. Search under “NYC” then “sublets and temps.” The safest, although not necessarily cheapest, neighborhoods to live in are Chelsea, Midtown, the East Village, and the Upper West and East Sides. If you find an apartment near the L Train, avoid it – the L train is extremely slow and commuting anywhere will take a long time. Another popular place to sublet is Brooklyn. Not only

is Brooklyn trendy, as a rule, the apartments you will find will be much cheaper than those in Manhattan. Some of the best neighborhoods in Brooklyn include Williamsburg and Fort Green. If you don’t mind the commute, Hoboken, New Jersey is also a great place to find an affordable apartment. The best way to

very expensive in Manhattan and generally not worth the price. It usually takes longer to take a cab than to walk or take the subway within the city because of heavy traffic congestion. The subways are dirty but convenient. They run 24 hours a day although much less frequently at night than during the day. Also – try to avoid taking the subway at night for safety reasons. No matter where you’re coming from and no matter what mode of transportation you’re using, make sure to leave plenty of time for your commute! F i n a l l y, we come to a favorite topic of many – food. In New York, you will find some of the best pizza in the world, so eat up! Little Italy has some of the best pizza in town and is located next to Chinatown, which is also a good place to find some cheap eats. If you’re on a schedule or a budget, avoid eating in Times Square. New York is also the home of amazing cheesecake. One of the best places to get a piece of true NYC Cheesecake is a place called Juniors, with locations in Brooklyn and Times Square. If you are looking for a healthier alternative, Smoochies on 23rd and 6th serves up a fat free, sugar free, dairy free, kosher soft-serve that is just as tasty. At the beginning of your stay you should also locate a neighborhood grocery store. They can be hard to find, but believe me when I say that it’s worth it. Lastly, when purchasing groceries, avoid gourmet corner stores where groceries are overpriced. Regardless of what you’re doing, where you’re working, or when you go, have fun and be safe in “The City” with these great tips!

“No matter where you’re coming from and no matter what mode of transportation you’re using, make sure to leave plenty of time for your commute!“ commute from Hoboken is the Port Authority Trans-Hudson train (PATH), which goes directly from New Jersey into Manhattan. The PATH train is efficient and safe, though not any cleaner than the subway and just as crowded. In order to save money on transport aboard the PATH train, purchase a large pass at the beginning of your stay, allowing for at least two trips per day. Although the best place to find a sublet is online, it is still incredibly important to travel to New York to check out the apartment in person prior to sending in a down payment. To continue on the topic of transportation, Metrocards (NY’s version of the CharlieCard) can be purchased individually or as 1 day, 1 week, 2 week, and month long unlimited passes. The month long pass costs $81 and is well worth it if you plan on taking the subway at least twice a day. It is absolutely vital to purchase a pocket-sized subway map and to carry it with you everywhere. Taxis are

Make It Happen 3rd Edition

Industry Advice for Networking A self-professed introvert, Diane Darling has built a highly successful company on the belief that networking skills can be learned and crafted. With two widely acclaimed books, Networking for Career Success and The Networking Survival Guide, a monthly column in the Boston Business Journal, and countless speaking engagements, Darling and her company, Effective Networking, are helping individuals and organizations to expand and strengthen their networks. Below are Darling’s expert answers to our networking questions. By Tessa Lyons-Laing Harvard College

Tools for Success

HUWIB: What is networking? Darling: When people hear the word networking, many think of a boring cocktail party where you spend hours schmoozing with people you don’t know and trying to force a connection. In reality, networking is building relationships before you need them. The contacts that are going to help you the most are almost always people whom you already know. You need to be able to develop something that I call transference of trust: You transfer your trust to your contacts and they transfer that trust to their own contacts, helping you expand your network without losing the important personal connection. HUWIB: Why is networking important? Darling: Strategic networking can enable you to get things done in half the time, for a fraction of the money, and a lot less energy. Why wouldn’t you network? HUWIB: What are some common mistakes that people make when networking? Darling: The biggest mistake is what I call

“911 networking;” when people haven’t maintained their network they go into emergency mode and start calling everyone and anyone. Your network is part of your wealth; you need to maintain it and invest in it all the time for it to be effective. A second mistake that people make is not realizing that their current network is their best asset. When you call someone you have no connection with, you break the transference of trust so it is important to use your existing contacts in order to get in touch with others. HUWIB: What homework should you do before going to an event where you hope to network? Darling: The first step is to find out who the speakers are. I always suggest researching their philanthropy or the boards that they are on – everyone loves to talk about their charity work and it can be a great way for you to connect with even the most senior people. HUWIB: Do men and women network differently? Darling: No, you are either smart or you are stupid. But sometimes economics are involved. Very wealthy and very poor people are really good at networking. The wealthy

One of two widely-acclaimed books that Darling has written. Her books have been translated into a number of languages including Chinese, Japanese, Korean, Thai and Indonesian. Darling is currently working on her third book and excitedly says that she has plans for many more. 38

Darling founded her company, Effective Networking, in 2001 after a profile in the “Wall Street Journal” landed her a book deal and covereage on NBC Nightly News. For more information visit http://www. effectivenetworking.com. are well connected and the poor know that they need to lean on others. Often times the middle class feels that there is something dishonest about networking, which is only the case if you are being dishonest. HUWIB: Do you have any advice about handshakes? Darling: Women need to do them. Handshaking is very natural for men but women find it intimidating and they are often reluctant. However, proper etiquette requires that women put their hand out first. So it is very important for women to have a confident handshake. HUWIB: What about online networking? Darling: Facebook and MySpace are great tools for networking. They enable you to connect with your alumni groups and

Expert Tips

Networking doesn’t have to be a forced activity. As Darling says, you really are networking all the time. But it can be made more effective if you follow a few of her tips. Handshakes: Two pumps, and let go. Where to put your name badge: On the right side of your chest (The eye naturally flows up the right arm as you are shaking hands.)

Darling, pictured above giving the keynote address at a conference in Toronto on July 20th.

friends. The most important thing to remember about online networking is to always use it with total integrity. Technology can make things a little bit more damaging. How long to talk to one Be careful about what you post online and person: about what you send in e-mails – once that Three to five minutes, eight minutes information is out it becomes public formaximum ever.

Networking wardrobe: When in doubt, go up a notch. Take a network kit: A pen that you can lose, a Sharpie – to embolden your name on the name badge, breath mints, and business cards in a case What to talk about: Come prepared with three neutral questions. For example, “Are you from the area?” What not to talk about: Personal stuff: sex, religion, and politics Eating: Do not arrive hungry. It’s difficult to juggle food with handshaking and business card exchange.

HUWIB: When at an event, whom should you approach? Darling: Talk to individuals, groups can be intimidating. Be aware of people’s body language and approach those who look open to a conversation. HUWIB: Do you have any tips for remembering names? Darling: When you first say someone’s name, make sure you get it right. Ask about the pronunciation, the spelling, and the history of the name. Repeating it will help you to remember it. If I gave you $100 for every name that you remembered from an event, you would go about it differently. Try to remember a few names, the more pressure you put on yourself to remember everyone’s name the more you will be overstimulated and just float out.

HUWIB: How should you initially follow up with contacts? Darling: Owe them information. While you are talking to them, mention an article that might be of interest or a restaurant that you have discovered. Not only is this an easy Drinking: way to get their business card, it also gives Always keep your drink in your left you a great reason to e-mail. Also, handwrithad. Otherwise your handshake will ten thank you notes can be very effective. feel clammy. People today are so reliant on e-mail that a

handwritten note will really stand out. One of my students wrote a thank you note for a high-powered lawyer who spoke to our class. He was so impressed that he invited her to meet with him! The most important thing is to not let time slip. HUWIB: How should you keep track of the people you network with? Darling: Build a database of your contacts. Keep track of their first name, last name, nickname, e-mail address, and cell phone and work numbers. Write down some notes about the person, like the date you met them, where you met them and what you talked about. HUWIB: How do you maintain a channel of communication? Darling: I aim to be in touch once a month. Any time you come across an article that might be of interest to someone or hear about something in the news that relates to them, use it as an opportunity to reconnect. HUWIB: What is the most important thing for young women to remember when networking? Darling: Get started on networking early. Leverage the networks you have now, particularly your university. Build your database of contacts and remember that it is important to stay in touch. Make sure that people know your value system and the work you do. Be honest about what you want and have a value proposition: know what skills and ideas you could bring to a company and make them known to your contact. Make It Happen 3rd Edition

The Business School Guide

Everything you want to know about the best schools 40 University of Berkeley Haas School of Business 42 University of Pennsylvania Wharton School of Business 44 University of Michigan Ross School of Business

Location: Berkeley, California Class Size: 240 Website: www.mba.haas.berkeley.edu

The Guide to Business Schools

HUWIB: How would you describe your MBA program? Haas: The full-time MBA program at the Haas School of Business is a 2-year general management program that offers the opportunity for students to get both a strong focus on management fundamentals as well as the opportunity to specialize in a variety of subject areas, from finance, real estate, and marketing to corporate social responsibility and management of technology. Core courses focus on management fundamentals including finance, strategy, marketing, organizational behavior, and leadership. Elective courses, which comprise 60% of the MBA curriculum, allow students to customize their course of study around their individual needs and professional goals. HUWIB: What separates the Haas School of Business from other top tier schools? Haas: There are a number of factors that differentiate the Berkeley MBA experience. First, a focus on “Leading Through Innovation” permeates student life at Haas. Leading through innovation is a mindset and a set of capabilities that prepares our students to be creative business leaders who challenge conventional wisdom, embrace ambiguity, and 40

encourage innovation in all aspects of a dynamic business environment. This mindset is supported by experiential learning opportunities, extracurricular activities, and by a variety of conferences and competitions. The Berkeley MBA experience is also shaped by a small, intimate class size – the average incoming class includes only 240 students per year. This fosters an intimate learning environment as well as a highly collaborative spirit throughout the Haas community between students, faculty, and alumni. Additionally, ties to other graduate schools in the greater UC Berkeley community, whose programs are all consistently ranked among the best in the world, enhance and enrich the business school experience. Berkeley MBA students have access to leading experts in almost every field and are encouraged to supplement business courses with elective classes

outside the business school. These are simply a few of the distinguishing features of the Berkeley MBA program. To learn more, please visit our web site at http://mba.haas.berkeley.edu/. HUWIB: What should applicants be prepared for during the admissions process? Haas: The full-time MBA program’s admissions cycle consists of four application rounds with corresponding application deadlines. Each candidate must complete the Application for Admission online through our website. The application, which includes short answer questions, essay questions, and letters of recommendation, allows the Admissions Committee to gain a better understanding of each candidate’s academic aptitude, professional experience, and personal qualities. All applicants are also required to take the GMAT and applicants whose

native language is not English may be required to take the TOEFL or the IELTS. Admission interviews for the full-time MBA program are conducted by invitation only. Invitations to interview are extended only after an application has been reviewed by at least two members of the admissions staff, and it is extremely rare that an applicant would be admitted without an interview. Though the percentage fluctuates slightly each year, we typically invite 25-30% of our applicants to interview. Once invited, candidates are given the option of interviewing in their local area or on campus. Interviews are conducted by a select group of trained alumni

Haas: We’re looking for individuals with the potential to be creative, innovative leaders. Successful applicants will have solid professional experience, maturity, and exceptional intellectual ability. In addition, we look for students who will enhance the diversity of their class and contribute meaningfully to the Haas community.

measurably enhanced by the real-world business experience that students bring to the classroom. For this reason, most successful applicants will have two or more years of full-time profession-

HUWIB: What kind of work experience do you recommend undergraduates to have if they are interested in applying to your business school? Haas: We seek students who bring a breadth of diverse work experience to the program ranging

“We’re looking for individuals with the potential to be creative, innovative leaders.” and current students or, less frequently, by a member of the Admissions Committee. Please note that all interviews hold equal weight in the admissions process regardless of the type of interviewer or the location of the interview. HUWIB: What specific skills are you looking for applicants to have?

from traditional business backgrounds such as consulting, finance, and tech, to non-traditional backgrounds such as real estate, not-for-profit, and health services. More important than the quantity or type of experience, however, is the richness of that experience—in other words, what has the applicant learned? How have they grown? The quality of an MBA program is im-

Day in the Life of Julia Ponce (Harvard ‘00, Haas MBA ‘08)

Undergrad major: Economics Previous employer: Goldman, Sachs & Co; Investment Management Division Most of my days begin at 6:30 when I grab my yoga mat and rush out the door. An hour and a half later, refreshed and rejuvenated, I stop by one of the many local coffee shops on my way home and grab my daily dose of caffeine. As I’m walking I mentally plan out the rest of my day – class, group meeting during lunch, club meeting, and then a coffee chat. First on my schedule is Consumer Behavior class. This is one of my favorite classes because it’s a blend of marketing, psychology, and statistics. The professor lectures during the first half of class on topics ranging from the psychological aspects of what motivates a consumer to purchase a certain product to how to run an experiment and analyze the results to determine the right marketing strategies. Then during the next half of class we apply the concepts we have

learned through either a short experiment or group simulation. This connects the theory to practical application and really ingrains the material in my head. After class I run up to the International House Café where I am meeting my group from Negotiations class for lunch. Tomorrow we are playing the role of union leaders in a simulated labor-management dispute. Three of our classmates will be playing the role of management and we need to figure out our strategy for the session. Throughout the semester we have learned several negotiating techniques and participated in weekly one-on-one negotiation simulations. This week is our chance to apply what we have learned in a group negotiation and we want to be prepared! Around 2 P.M I head back to campus for a quick meeting with two fellow board mem-

al work experience following the completion of their undergraduate degree. bers of the Women in Leadership club. We are planning a dinner event featuring a Haas alum that has started a business. Haas is a student-run school, which means that students shape and drive what happens on campus. This includes everything from contacting the executives who serve as guest speakers to coordinating the details for an event – both of which are great learning experiences! My last stop of the day is to grab coffee (decaf this time) with a classmate who used to work in marketing. Prior to attending Haas, I spent six years working in asset management at Goldman Sachs. While I enjoyed my job, I knew that I was ready for a change when I started business school. I spent the first few months of school attending a variety of company presentations and working with one of the career services advisors to figure out what I really liked doing. This process led me to focus on brand management/marketing and now I am leveraging the skills and knowledge of my classmates to prepare for my job starting in the Fall. It’s 4 P.M and finally, it’s time to relax and enjoy the walk home. Tomorrow will be entirely different – different classes, different group meetings, different club and social activities...there’s an endless variety of things to do at Haas, the trouble is picking among them! Make It Happen 3rd Edition

Day in the Life of Megha Doshi (Harvard ‘04, Haas MBA ‘09)

The Guide to Business Schools

Undergraduate major: Bioethics & Policy Previous employer: KLD Research and Analytics I start each day at 6 A.M. when I head out of my North Berkeley studio for a brisk run in nearby Tilden Park. The school day starts with Operations, one of my favorite classes. Haas professors frequently use creative teaching methods that help students master the material. For instance, we played an online competitive simulation game in Strategy class, conducted an organizational audit of a local nonprofit for Organizational Behavior, and designed a study to test the impact of organic labeling of vegetables on taste perception in Consumer Behavior. After class, I put the final touches on an investment pitch for my meeting with the Haas Socially Responsible Investment Fund, a $1.3 million student-managed fund on which I serve as a principal. Each student principal develops an investment thesis and presents an investment to the 11 fund managers and advisory board. I’ve taken advantage of these opportunities by writing a social venture business plan and competing in several business plan competitions, competing in the national Sustainable Venture Capital Investment Competition, and helping an organic granola company with its marketing strategy. The afternoon flies by with a study group meeting and an interview for a summer internship with a Bay Area sustainability consulting firm. In the evening, I attend a club-sponsored talk by the CEO of Stonyfield Farm, who discusses the integration of environmental activism and branding as a competitive strategy. Organized by Haas students, the talk is an example of how engaged and proactive Haas students are. In just one year at Haas, I feel I’ve gained confidence, business knowledge, and reallife experience for a career in business social responsibility. I’ve also learned that Haas isn’t just for finance professionals or consultants. Upon completing my MBA, I hope to manage corporate responsibility efforts in the food and beverage or sports and fitness industry. The Haas MBA is a versatile degree that provides students savvy and analytical skills valuable in just about any professional context. 42

Location: Philadelphia, Pennsylvania Class Siz: 800 Website: www.wharton.upenn.edu HUWIB: How would you describe your MBA program? Wharton: We offer a distinctively collaborative MBA experience, unparalleled academic and career resources, and a commitment to learning and personal growth. The diversity of our student body is remarkable – we have students from 74 countries in this year’s first year class, from every kind of academic and professional background one could imagine – and allows students to be challenged by and learn from a wealth of perspectives. HUWIB: What separates Wharton from other top tier schools? Wharton: Innovation Wharton was the first collegiate business school in 1881, and that spirit of innovation still defines us today. Our professors create the new ideas that are transforming businesses and governments around the world. And they bring that cutting-edge knowledge into the classroom, so Wharton MBAs take the lead in innovating the new ideas of the future. Business Knowledge Wharton has the largest business school faculty in the world – 250+ faculty members, including visiting executives and associated faculty. The most published, the most quoted, the most actively engaged with global businesses and public policy, they know how to prepare MBA students for what businesses, governments, and international agencies need – because they’re working directly with these organizations every day. Size and Scope

With more courses and programs than any other business school, Wharton provides more opportunities to acquire both fundamental and specialized skills. With our wide variety of classes, you have the flexibility to pursue the areas that most interest you, even to create an individualized major. You’ll leave Wharton with the high-level knowledge and range of skills to master new challenges, expand your choice of careers, or reposition yourself in a new industry. Leadership Learning At Wharton, you learn leadership by doing it. Our hands-on learning methods give you daily practice in leadership, with learning teams, leadership ventures, and learning simulations that Wharton pioneered and now licenses to other schools. You have daily opportunities to build the skills of organization, persuasion, and team-

building that recruiters tell us they value in our MBA graduates. Global Alumni Network Wharton has the largest alumni network of any business school – 80,000+ alumni in 140 countries. Your connections begin with the friends and contacts you make during your two years on campus, as well as our sophisticated resources for professional development and career management. And then they can see you through all the changes and new events of your career. Wherever you are in the world, you can call on a Wharton graduate for help, advice, and support. Engaged Community With hundreds of activities – from clubs and conferences to student government and volunteer work – our community draws its energy from the unique contributions of each year’s students. From high-tech Huntsman Hall, to lively and diverse Philadelphia, to the New York/Washington DC/Boston corridor just a train ride away, Wharton offers the widest possible variety of local and regional opportunities.

the application process will end for them there. The interview, which can take place on campus with a Graduate Assistant, in the applicant’s local area with a Wharton alumni, or in several hub locations around the world with an Admissions Committee member, is a conversational, blind interview (meaning your interviewer won’t have seen your application), based on a resume that you bring with you. Interviews last for 30 minutes, and are a chance for us to get to know applicants face to face. It is important to remember that an interview will not make or break your ap-

background and skill set imaginable, and we encourage students from any kind of background to apply, if they have determined that Wharton is a good fit for them. HUWIB: What kind of work experience do you recommend undergraduates to have if they are interested in applying to your business school? Wharton: We emphasize quality over quantity – we are looking for students who have taken advantage of many kinds of professional opportunities. We do not require any

“Part of what makes Wharton so unique is that we have students who come from every background and skill set imaginable.” HUWIB: What should applicants be prepared for during the admissions process? Wharton: Our admissions process is a holistic, iterative and extremely thorough process. We have a staff of over 70 second year MBA students who are hired and trained by our office, and are full-time, paid members of the admissions committee. Those students, who we refer to as Graduate Assistants, complete a first read of each application. The application is then passed on to a member of the Admissions Committee for another read, and at that time each applicant will receive an invitation to interview with us. If an applicant does not receive an invitation to interview,

plication. After your interview, your interviewer will complete an interview summary form, which will be added to your file, which will be read again, up to four additional times. Final admissions decisions are made by the seven member Admissions Committee (six Associate and Senior Associate Directors and the Director of Admissions). HUWIB: What specific skills are you looking for applicants to have? Wharton: We have no specific skill set or background that we prefer or seek out. Part of what makes Wharton so unique is that we have students who come from every

specific amount of work experience, and, in fact, accept students directly out of their undergraduate experience, and those with limited work experience (0-3 years. We encourage those students to apply if they feel that the timing is right for them. Rather than focus on the number of years you’ve worked, we are much more interested in the substance of your experience. For example, while some candidates may have experienced limited career progression in terms of promotions, they may demonstrate their accomplishment in other ways, such as through informal leadership or in extracurricular activities during college. Make It Happen 3rd Edition

Location: Ann Arbor, Michigan Class Size: 400 Website: www.bus.umich.edu

The Guide to Business Schools

HUWIB: How would you describe your MBA program? Ross: The Ross MBA curriculum prepares students to lead by offering a combination of rigorous fundamentals, practical experience, and the freedom to explore. At the heart of the Ross MBA is an approach to business education we call action-based learning. Action-based learning requires us to continuously create relevant, challenging ways to connect our students with the world of practice. The cornerstone of action-based learning at Ross is the Multidisciplinary Action Project (MAP). For 7 weeks each spring, first-year Ross MBA students devote themselves exclusively to MAP as a requirement of the MBA core curriculum. A MAP team consists of 4-6 Ross MBA students who are guided by faculty advisers and work with a manager at the sponsoring organization. Each project requires analytical rigor, critical thinking, problem solving in a dynamic environment, and genuine team44

work. At the end of the project, teams present their analyses and recommendations to their sponsors and faculty in both a written report and a final presentation. In addition, Ross applies action-based learning in the innovative Ross Leadership initiative (RLI). Throughout the 20-month MBA program, RLI supplements classroom learning by providing a set of experiences and explorations that helps students understand their own strengths and develop into effective leaders.

With action-based learning, Ross is committed to an approach to business education that goes beyond studying cases. We build a foundation of the most rigorous analytical tools and quantitative skills with worldclass instruction. Then we work hard to create challenging opportunities for students to apply those skills and develop new ones in team-based multidisciplinary projects. Ross is a community that thrives on collaboration. Ross students come from all over the world, bringing a wealth of personal and professional experience into our learning c o m mu n i t y. With each incoming MBA class, the school receives a fresh infusion of new insight and perspective. Ross students, alumni, and faculty believe that what defines Ross most is the school’s collaborative culture.

“Ross students, alumni, and faculty believe that what defines Ross most is the school’s collaborative culture.” HUWIB: What separates the Ross School of Business from other top tier schools? Ross: Ultimately, what differentiates the Ross MBA experience is how the culture of collaboration and action-based learning combine to prepare students to lead globally diverse teams, consider the role of business in society, and build organizational cultures that foster innovation.

HUWIB: What should applicants be prepared for during the admissions process?

Ross: The admissions process is geared towards finding candidates that will thrive in our MBA program, make an impact to the MBA class and upon graduation continue to build our strong alumni brand. The admissions committee assesses these qualities through an extensive application process. The application has several components, all of which are weighted equally and help assess whether a candidate is the full package. Essay questions are the first component and enable candidates to differentiate themselves by telling their story. Whether they are being asked about their post-MBA goals, work experience, or even hobbies and extracurricular activities, it’s important to reveal their values, priorities and decision-making frameworks in the process. Candidates should also research MBA programs prior to applying. MBA programs are all different and applying to those programs that best fit with one’s professional and personal goals is critical. The admissions committee leverages the next two components, undergraduate transcript and the GMAT (Graduate Management Admission Test), to gauge whether a candidate can handle the academic rigors of the MBA program. Undergrad transcripts showcase past academic performance, while the GMAT provides a standard way to compare applicants. Full-time work experience is the next component of a candidates’ evaluation. The admissions committee requires a resume and two professional recommendation letters to evaluate the quality of one’s professional experience and determine future career success potential. The recommendation letters provide the admissions committee with a valuable perspective on an applicant’s professional strengths and weaknesses and serve as one indicator of future career potential. An applicant should pick someone who knows them well, values their work and is willing to take the time to write a detailed recommendation that is supported by examples. Similar to a job application, the resume is one of the key tools admissions officers use to “size a candidate up.” A strong resume is one that can succinctly communicate one’s background and accomplishments, while simultaneously marketing a candidate’s future potential. Ross leverages the last component, the interview, to see a candidate’s application come to life. In addition to assessing communication skills, professional presence, and fit with the program, the committee looks to see if a candidate will bring a unique perspective to

the school. Ross conducts interviews by invitation only, so only those candidates with the strongest applications will be granted an interview. If a candidate receives an invitation, they should treat it like a job interview. Preparation including knowing the school and knowing oneself and practice can help a candidate put their best foot forward during the interview. HUWIB: What specific skills are you looking for applicants to have? Ross: The Ross School of Business’ primary goal in crafting a class is to fill it with smart, interesting, unique individuals – not just fill it with students of similar backgrounds. In order to build a strong and diverse class, the school looks for applicants who possess the following characteristics: Strong intellectual ability: It is important for a candidate to be able to handle the academic rigor of the MBA program and be able to contribute to and enrich the academic experience of classmates. Leadership, initiative, and impact: While the Ross curriculum provides students with an opportunity to further develop and build these skills, it is important to recruit candidates who already possess the baseline talents. The admissions committee looks for students who will contribute to the Ross community and leave a legacy. Strong interpersonal and teamwork skills: Ross believes that teamwork and interpersonal skills are critical to professional career success. Much of the curriculum work takes place in teams, where individual and group success are intricately linked. Clear goals and rationale for pursuing an MBA: An MBA is a significant financial and time investment and candidates who have a strong sense of how a Ross MBA serves as a bridge between their past work experience and future goals will have the most success in the program. Other things to keep in mind: A traditional business background is not required, individual evaluation occurs within

the context of the larger application pool, and there is no scientific formula or cutoffs used to determine a candidate’s admission outcome. HUWIB: What kind of work experience do you recommend undergraduates to have if they are interested in applying to your business school? Ross: The Ross program seeks diversity in the professional backgrounds of our admitted students, just as it does in other parts of our applicants’ profiles. Whether a candidate has a more traditional business background like consulting or finance, or a less traditional background such as working in the Peace Corps, teaching, or working as a professional musician, it is the candidate’s ability to lead and make an impact that is evaluated. While Ross does not require a minimum number of years work experience prior to entering the MBA Program, most of our admitted students have at least one year of work experience prior to entering the program. We evaluate work experience, not in terms of quantity, but in terms of quality–the impact the applicant has had on their organization and his or her natural leadership qualities. Make It Happen 3rd Edition

International Business How to succeed in a business career abroad

46 Breaking the Barriers & Bridging the Gaps in South Korea 48 Debunking the Second Year Investment Craze in Cambridge 49 Earning a Business Degree in Canada 50 Is Anything Ever Really Free?

Breaking the Barriers & Bridging the Gaps in South Korea By Esther Han Ewha Women’s University, South Korea

International

Until the end of the Chosen Dynasty (1910), Korean women were forbidden from inheriting property and holding official positions. In addition, they could not get remarried nor go outside without wearing a chenae (an outer garment similar to the chador which is worn today by Muslim women). Although the Enlightenment Movement improved the status of women, a glass ceiling still exists in Korean society. According to the Gender Empowerment Measure (GEM) sponsored by the United Nations Development Program, Korea ranked 53rd in gender empowerment. Female administrative managers comprised seven percent of the all managers, compared to the world average of 28.30 percent, while the ratio of female to male earned income was 0.46 when the world average was 0.53. The root of these inequities is the glass ceiling of expectations which Korean women face. Korean society puts undue pressure on women to be “supermoms” while pursuing professional careers. Despite the fact that Korea is a member of the Organization for Economic Cooperation and Develop46

ment (OECD) and the 11th largest country in the world in terms of GDP, the glass ceiling which Korean women face is still troubling and unresolved.

“[M]arried women are expected to be multi-tasking talents, or ‘supermoms.’” In Korea, married women are expected to be multi-tasking talents, or “supermoms” as devoted wives, kind daughters-in-law, and successful career women, all at the same time. While many women aspire to be “supermoms,” it is impossible without some help. However, men are not expected to help with household chores. A survey conducted by Ministry of Labor of 785 married couples found that 7 out of 10 wives who had a job did household chores without hired help. Approximately 50% of wives said that they struggle

with household chores right after they get back from work. Furthermore, almost as many husbands answered that their wives do most of the household work. The husbands admitted that they were not active in doing common chores like washing dishes, cooking, or washing clothes. Even more interestingly, the heavy workload for women at home is pervasive throughout all of Korea. The survey showed that educational background, profession, and working hours turned out to be irrelevant to the lopsided workload of women. Anchor Kim Ju ha is the first female to host a news program on her own. To celebrate her groundbreaking accomplishment, Kim received an honorary title

on March 11th from the World Economic Forum (WEF). According to an interview in Korea Times, Kim believes that a glass ceiling still exists in many professional sectors including the media industry. She stressed that women hold the sole key to fighting male-favoring practices. She said, “I still experience a glass ceiling. But the most significant problem is few female workers venture out to find a breakthrough.’’ She continued, “This indifferent attitude would significantly mar female’s social status.’’ The veteran broadcaster said that she had to participate in a variety of tough activities to prove she was just as qualified as her male colleagues in every respect. Although society expects women

of drinking creates an atmosphere where women are more prone to be sexually harassed or discriminated against at work.

with her boss and pour alcohol for her male coworkers. Lim Jin he, a merchandiser at Michael Kors, also acknowledges

“This culture of drinking creates an atmosphere where women are more prone to be sexually harassed or discriminated against at work.” to take care of their careers and homes, to get ahead, women cannot make any excuses. Kim said, “If I was late to work due to my baby at home, I never made it an excuse for my being late. It’s because it can hint at a discrimination against me.” Korean women face more barriers in society’s drinking culture. Drinking alcohol with coworkers and bosses after work is normal in Korean culture. While women are discouraged from drinking, the excessive drinking of men also presents problems. In 2007, 12.8% of Koreans died from diseases caused by alcohol. This culture

Choi Ji-hyun, an undergraduate at Ewha Women’s University in Seoul, said that this culture of drinking works as an unfair way for men to gain favor for promotion. She said that while women had to leave earlier to take care of their children and chores, men could stay, as they hardly feel pressure to take care of their children or to do chores. She believes that men gain a great advantage by getting closer with their bosses through drinking. Even more alarmingly, Choi felt sexually harassed when she was asked to do a “love shot” (drinking alcohol in an erotic pose)

the unfair treatment women face in the workplace. She said that she was once asked to bring coffee to her boss, a menial task which was not one of the official responsibilities of her job. Although women have to work extra hard to get the position they deserve, they still face subordination once in those positions. Korean women have had to take responsibility for relatively less important jobs, such as bringing coffee or copying documents while men of the same qualifications were given more demanding tasks. No one is born with supernatural powers. Wonder Woman exists only on television. Korean culture unduly burdens women, asking them to be good mothers, employees, and wives while at the same time a culture of drinking, discrimination, and harassment blockades them from fair promotion. In the future, only the development of programs like daycare at work and the equalization of household responsibilities between spouses will reduce the glass ceiling Korean professional women face. Make It Happen 3rd Edition

Debunking the Second Year Investment Craze in Cambridge By Rosemary La Prairie University of Cambridge, England

International

Second year at Cambridge is very much akin to senior year at high school: all of a sudden it’s not just about studying to make the grade, but filling in applications and choosing the next path your life will take. Only a year after making the legendary college decision, it’s back to applications, interviews and waiting. Starting in October, top firms come to make their presentations, online applications open and students clamor to get involved in the Cambridge University Investment Club. It is pervasive throughout the University, particularly among students studying maths, economics and management. Anyone with a desire to enter the investment-banking world knows that internships undertaken in the penultimate year are often the best route into the sector. This knowledge is not only passed on from older students but stated on the careers website and reiterated in careers centre materials. According to the Careers in Banking and Financial Markets website, many students are “attracted by the intellectual challenges and financial rewards offered by careers in banking 48

and financial markets.” With long days which sometimes begin even before the rowers are out, I wondered, what exactly was the attraction of banking that led many friends to attend milk round presentation after presentation? The financial rewards which emanate from the industry are obvious wherever you look: the college hockey team is sponsored by Barcap, a neighbouring college rowing team is sponsored by Citigroup and University-wide societies are sponsored by other industry heavyweights. Companies also give away I-Pod speakers, inflatable chairs and other paraphernalia to advertise their names. Of course, there are also the catered presentations with free food and drinks and the company dinners where older students with contracts to work in the coming year help choose potential interns and employees who are subsequently taken out to dinner by top executives. Or in the case of interviewing for Barcap, a stay in the Hilton with dinner the night before their final round interview is routine. With adequate planning and tolerance for industry jargon, it might be possible to take off a third of the grocery bill for Michaelmas term (British speak for Fall term). In short, networking and freebies are plentiful, contributing to the very glamourous perception of the industry and those companies within it. Not even the onslaught of news reporting on the credit crunch could diminish its sparkle. However, there is more to it. Michelle Jacob, a second year economics student who has secured an internship at Citigroup, singled out the industry as one that is very “exciting and constantly evolving.” As she said, “You can never know what’s going to happen in the markets!” A second year maths student joining Barcap for the summer said she was unsure what she wanted to do in the long-term but “as a maths student at Cambridge, what else are

you meant to do.” Natalie Smith, one student who has her eyes set on the long-term, pointed out that as a woman, she wanted a job where she could realistically retire or cut back by the time she was 30. Investment banking, as a burnout career, offered the ideal opportunity to be massively successful in 7 years time. Smith, who has already completed an HSBC internship with an offer for a graduate job and is set to intern at a financial services firm this coming summer, emphasized that for those with high aspirations who wanted to have it all, investment-banking is ideal. Some graduates already in the industry have also pointed out that it’s not just a career, it’s a lifestyle, and evidently one that strikes well with the students. I found myself in my second year at Cambridge, surrounded by corporate sponsorships with a much less clear idea of where I wanted to go. As a student studying land economy, a multidisciplinary degree combining law, economics and the environment, the decision wasn’t as clear. Also, as a previous IB student in the North American system, the British concept of early specialization didn’t take root with me. Whereas in North America, students study six if not more subjects in their senior year and then go on to take a diverse range of classes in university, in the UK students specialize in 3-4 subjects for their final 2 years of school and then enter into highly specialized degrees. If you want to become a lawyer, your undergraduate will be in law; a similar case arises for doctors, vets and dentists. There is no general year, no minors and no optional classes not related to your degree subject. Certainly no basket weaving classes! Furthermore, most degrees are only 3 years and commencing a master’s degree is a very foreign concept (and often contemplated primarily by international students). Thus the internship decision was essentially a decision of which industry and firm to enter into after graduation, in which scenario I would be faced with signing a contract for full-time work at the ripe age of 20, an unexpectedly early fork in the “life path.” I should note that for some, this decision

“[D]on’t be afraid to do the boring mainstream thing for a while to get the right training and experience”- Ian Temperton

comes even earlier. Many large companies offer spring week programs lasting 1 week during March for first years which lead directly to a second year internship offer, or at a minimum fast tracking through the interview process. Some students also apply as scholars for large companies before even arriving at university. They work a bit for their gap year, are given money towards travelling and have guaranteed places for each summer of their degree. It appears that the “What do you want to be when you grow up?” decision comes quite a bit earlier in the UK than back in North America. My own path towards the banking industry was fairly roundabout. I originally sought an internship in environmental consultancy or environmental finance, something which followed nicely from my resume. There weren’t any dedicated internship schemes for my field, so I mostly employed informal soliciting, much of which went unanswered; however, I did receive a response from one solicitation and free advice. A previous class speaker, Ian Temperton of Climate Change Capital, wrote that he regretted he had nothing to offer but solid advice: “You will find that the job market is over-supplied with people who want to save the world, and under-supplied with those with the right mix of skills to actually do it. Hence don’t be afraid to do the boring mainstream

thing for a while to get the right training and experience.” From this solid economic analysis, I dove into the mad rush of applications and interviews. My initial impression was that you could either seek to make money or to achieve social goals. Otherwise put, sell your soul to moneymaking at a high price or face lower financial rewards in the non-profit sector. Following from my initial impression that having moral values and making money were mutually exclusive goals, my first interview question left me stunned without an answer. After thoroughly reading over my resume, the interviewer looked puzzled and asked why I was interested in the financial services industry. I certainly couldn’t respond that it was a means to an end and subsequently stumbled through explaining my genuine interest in markets; however, from that moment I thought I had lost the job opportunity. The interviewer had picked up on my secret: money wasn’t the only motivation in my life. My initial impression, however, proved to be wrong. When HR called and went through my interview, they stated that I had not only been successful but that the interviewer had been particularly impressed with the strength of my morals and desire to promote social goals. Furthermore, visiting the trading floors and

offices in Canary Wharf brought an entirely new perspective. No one at the tube barriers stumbled to find their ticket but swiftly and efficiently glided through. The buildings were filled with a buzz of energy and all the excitement that had been previously described to me. Not only that, but it was home to the only efficient and properly functioning Starbucks on the island! Contrary, to other places in England, where the Starbucks craze hasn’t quite caught on, ordering a soy, extra hot, no foam Tazo chai was no problem. The fact that the financial services industry rewards ability and effort does not make it a soul sucking place but rather as Ayn Rand depicted in one of my favorite books, Atlas Shrugged, it makes it exciting, innovative and simply buzzing with energy. Reading the book and visiting Canary Wharf brings meaning to her quotation: “Until and unless you discover that money is the root of all good, you ask for your own destruction.” Whether my internship is a means to an end or the discovery of a career that I love, I look forward to stepping on the trading floor this summer knowing that I’m surrounded by talented people, whom contrary to my initial perspective, have similar goals and beliefs and are not simply after the money (though earning £8,000 for ten weeks’ work won’t hurt too badly).

Earning a Business Degree in Canada By Victoria Alleyne University of Waterloo, Canada Sarah Brown has just handed in an undergraduate thesis at the University of Waterloo, and is now the recipient of a degree quite unique from the degrees most students her age have received. Even though her diploma can be considered a business degree, at the University of Waterloo in Ontario, Canada, business education is handled a bit differently. In fact, the school has no separate business faculty. A relatively young university by American standards, Waterloo began in 1957 as a school primarily for engineering students, which quickly set itself apart as an innovator in the early 1960’s by allowing undergraduate students access to room-sized computers. In 1996, Waterloo decided to offer students the option of an integrative “Science and Business” program from within the science faculty. Today the university’s six faculties each have a similar program. Brown’s choice,

Environment and Business, is becoming increasingly popular at the institution. “When I began here five years ago, my class had only 30 students. Now, the first year

class has over 90,” says Brown, who in the past year has acted as a Teaching Assistant and Coordinator of a Living-Learning community where Environmental Studies stuMake It Happen 3rd Edition

International

dents live in “clusters” in the same dormitory. The Environment and Business program includes traditional business courses, such as Management and Finance; environmental studies courses such as Field Ecology and Environmental Law; and specially designed courses which integrate both subjects, such as Green Entrepreneurship and Environmental Management Systems. The diverse course offerings also allow students to interact with a wider range of students through projects and coursework. “You look forward to working on an accounting project with an Arts and Business student, or discussing a lecture from microeconomics with a Management Engineering [the Engineering Faculty’s “and Business” equivalent]. We feel connected to the school because everyone brings knowledge and points of views from their faculty into the business courses.” Most Environment and Business students agree that their third year integrative course is a highlight; the class is based almost entirely on business case studies. Furthermore, by that point in time all students have had some work experience which can be related to the studies at hand. An attractive aspect of Environment and Business is that the degree is coop only, which requires students to spend five semesters working in various businesses of their choice. Brown’s work terms have included conducting research on solar PV energy with a professor, assisting Toronto’s international airport with transitioning to a newer version of ISO14001 (an Environmental Management System), and acting as a liaison between management and frontline workers at a nuclear power plant. While sacrificing summers and adding an additional year to one’s undergraduate career may not initially sound appealing, Brown speaks positively of co-op, saying it is an “an ideal opportunity to ‘test drive’ potential careers and work environments,” adding that it is just as valuable for discovering what students don’t want to pursue. Brown believes that co-op complements the “and Business” programs particularly 50

well, as many business students know their interests but not precisely what they want to do with them. “It’s not like Optometry where you know you are going to be an Optometrist.” She emphasized that work experience is particularly relevant in evolving fields such as Environment and Business since it is likely that there will be many careers five years from now that don’t exist today. Students can also use work experience to further tailor degrees to their interests. Brown mentioned that it was a positive experience working for the government in the city of Owen Sound which influenced her to choose elective courses focusing on urban planning. She now hopes to pursue a Masters of Urban and Regional Planning degree at Queen’s University in Kingston, Ontario. The “and Business” programs are all Honors degrees; maintaining a high academic average is necessary to remain in the program. While students from the more traditionally

competitive faculties such as Engineering and Mathematics find the programs particularly demanding, most students, including Brown, found their “and Business” environment to be supportive, with students tending to be enthusiastic about each other’s successes as opposed to trying to reign supreme. For her final group thesis project, Brown chaired a committee which organized an Environment and Business conference featuring speakers from across Canada. Other graduating student groups have worked in collaboration with businesses, such as developing zero-emission-vehicle strategies with the courier company Purolator. Whether you are a student in Canada or the United States, Brown believes that pursuing your interests inside and out of the classroom will not only help your career but will create the best memories of undergraduate life.

Is Anything Ever Really Free? By Sarah Landsted Copenhagen Business School, Denmark In Denmark you are paid to go to school. Education is free and students receive monthly subsidies of approximately $1000 from the government, in return for full-time enrollment in academic programs. Regulated and funded by the Danish Ministry of Education, Copenhagen Business School is public, as are all institutions of higher education in Denmark. Students are accepted on the basis of their high school GPA’s, whereby the ministry regulates and controls the flow and level of students attending different programs, the idea being that all students based on their high school performance stand the same chance of receiving a higher education. The obvious question is, “Can education be high quality when it’s entirely free and even subsidized?” Business school as usual? Copenhagen Business School (CBS) is one of the three largest business schools in Northern Europe with just over 15,000 students. All programs are tailored according to the continental European tradition where students engage in a major based on compulsory core subjects with few electives. Bachelor level programs are science-based with a focus on theory and methods and a generally less practical approach, demanding committed and highly responsible students. The educational system is funded entirely by the state and based on the Scandinavian welfare model that describes the principle behind the organization and financing of the social security system, health services and education. Funding comes from unusually high taxes on a personal level ranging from 39 - 67 %, depending on income. Specifically, the public funding of education is not solely based on social conscientiousness and equality but clearly a way of securing future national growth and competing internationally. Denmark recently topped Forbes “Best Countries for Business” list, ranking the attractiveness of the Danish business environment. There seems to be a remarkable balance in Denmark between state and market, where the

high tax burden is compensated with the quality of the public goods, especially infrastructure, enforcement of property rights and higher education. Politics at CBS A strong international profile is a priority for all business schools. At CBS one of the more recent additions to the range of offered bachelor programs is the Bachelor of Science in International Business and Politics. According to program director Professor Morten Ougaard the program was created as a direct response to the development in the international system, where the need for scholars specializing in international relations between businesses, governments, international institutions and other participants such as NGO’s (Non-Government Organizations) is increasing. As a student, the more you learn, the clearer it becomes that a thorough understanding of both international business and politics and their interdependency is required to interpret market situations, provide political risk analysis, and advise decision makers on cross-border activities. Currently, multinational corporations have had to work on international regulations and utilizing the possibilities international business present.

expects that students of International Business and Politics will be employed over a broad range of fields, spanning from private businesses to governmental institutions, large international institutions, and NGOs. He has no doubts that most CBS students will find employment easily regardless of fluctuations within the business cycle, as the need for specialists in international

penhagen this past August. He joined the U.S. Commercial Service and works on analyzing and identifying potential business partners in Denmark. He provides general information on business in the Nordic region through market analysis of cultural relations and competitive and comparative advantages. What Rasmussen looks forward to is applying theory in prac-

“Denmark recently topped Forbes ‘Best Countries for Business’ list, ranking the attractiveness of the Danish business environment.” Madeleine Albright and the CBS curriculum A recent speaker at CBS, former U.S Secretary of State Madeleine Albright focused on the need for students specializing in political and cultural challenges in relation to the business world. She stressed, that what is economically sound is seldom politically doable, and a thorough understanding of the affiliated factors is crucial in today’s global economy. A thorough interdisciplinary understanding is the aim of the International Business and Politics curriculum at CBS. The curriculum is divided among classical economics, business and management, political science and international relations, and comparative political economics. The overall goal of the interdisciplinary curriculum is to underline and analyze the connections, influences, and interdependency of the core subjects within the curriculum. The curriculum emphasizes theory and methods and according to Program Director Morten Ougaard, the aim is to provide students with a tool set of broad academic knowledge that can be easily applied in practice and used in various industries. He

business and politics is increasing. In practice the reality of this forecast is yet to be seen as the first class has graduated only this past summer. Furthermore, since the majority of the class is expected to participate in a two-year graduate program to obtain a Master of Science, it will be a few years before real-life experiences will replace predictions.

tice and getting real-world experience rather than textbook examples and case studies. He sees this as a pervasive goal among his peers. CBS students are eager to get out there and try things and with private companies competing with each other to attract the best students straight out of school, the situation for students is ideal.

Theory in practice At CBS most students practice the theory they have learned through jobs and internships. From a student’s point of view, taking responsibility for your own education matures you, especially when juggling time-consuming jobs with demanding academic programs. The lack of real-life experience at school demands that students implement academic skills by pursuing opportunities outside of the classroom. Students at CBS supplement the depth and quality of their education through jobs and internships. Simon Rasmussen, a 3rd year student of International Business and Politics at CBS, started an internship at the American embassy in Co-

Is anything ever really free? What CBS students seem to have concluded is that the answer is “No” – theoretical knowledge alone will not suffice, but provides a solid base. Students prioritize work experience in order to apply what they have learned in school and to make the transition from the classroom to the real world gradual and not abrupt. One must acknowledge the conditions and obligations for Danish students, because nothing is ever really free. Students receive high quality education for free, but in return, they must show commitment, responsibility, and the ability to use and implement the knowledge obtained at school in society – that’s what CBS students are paid to do. Make It Happen 3rd Edition

The Business Guide What you need to know about the business world 52 The World of Risk from the CIA to Wall Street 55 Working at Lehman Brothers 56 Team Management at Bain & Company 57 Understanding the Hedge Fund Industry 58 The Ghost of Crisis Present: Structured Investment Vehicles

The World of Risk from the CIA to Wall Street

An Interview with Jami Miscik By Alison Ryu and Saron Tesfalul Harvard College Born in Chicago and raised in Redondo Beach, California, Jami Miscik never dreamed of working in the CIA. Today, humble, yet wise beyond her years, Ms. Miscik uses the lessons learned as former Deputy Director of Intelligence at the CIA to help Lehman Brothers strategically mitigate risk in new and exciting markets.

The Business Guide

HUWIB: How did your role at Lehman Brothers as Global Head of Sovereign Risk originate? J.M.: I obviously came in a very unusual way. There are not a lot of people making this transition from government to private sector, let alone from the intelligence community to financial services, but my first direct exposure to Lehman Brothers was because of 9/11. Lehman Brothers lost its corporate headquarters because one of the towers had fallen into their building. The people, the executive committee, Dick Fuld and others, wanted to know more about terrorism and asked if someone in government could come up and talk to them about it. So four or five years later, when I was actually getting ready to leave government, I kind of circled back as the firm was moving into emerging markets in a more meaningful way. They were beginning to consider opening up offices in Russia, Turkey and Brazil. This 52

position did not exist before I got here, so they created it and said, figure out how to do this and where you can be helpful. HUWIB: Who or what divisions of the bank do you work with closely in your role? J.M.: The beauty of sitting in the corporate division at Lehman Brothers is that I’m not on one side of the wall or the other. So I can serve all the different players. For traders, we’ll be very involved with the emerging market teams and what they’re doing, where their exposures are. For investment banking, it will be the involvement with the deal teams and the committee on international deals. It can be with strategy and the most senior folks. If we are going to open an office, what should we be thinking about for this particular country versus that particular country? And then, there is the whole piece of it that is client based. I probably spend forty percent of my time speaking to clients, working on client events, or writing more in depth analytic pieces for internal use that then gets translated into talking points for clients. I’m all over the place. HUWIB: How have you learned to classify risk in terms of the world of finance? J.M.: The first thing you do is realize that there are all sorts of different types of risk. First of all, there are different time horizons. There is short-term risk versus long-term risk. There

is financial risk, operational risk, political risk, and probably equally important, but not given as much attention elsewhere, is reputational risk. You don’t want the firm’s name associated with something that turns out not to be a good thing. So, there are all different types of risk, and basically what I’m trying to do is bring to bear what people need to know in a certain jurisdiction overseas. If we are looking at a deal where the government granted licenses to a client, if I come in and say that country was in a civil war at the time, and there is a new government, one of the things we want to do is to make sure that those licenses will be respected by the new government and not just by the old government that granted them. All of this is not to avoid risk, it’s to mitigate the risk. You don’t want to get into a position where you’re not willing to take a risk. That is what governments have to do. That is what companies have to do. But, you don’t want to have unknown surprises come up, you want to have thought through all those risks, and have a plan in place to mitigate against those risks playing out in a bad way. It is not that you are trying to avoid it, it’s that you are trying to recognize it head on and deal with it. HUWIB: How did your experience at the

CIA complement or contrast with your current position at Lehman? J.M.: In both cases, you’re looking at vast amounts of data. You are trying to focus on the right parts of the information. You want to make sure you are prioritizing, and making the very complicated simple for the people who don’t follow it on a day-today basis. If I go in and talk to someone very senior here at the firm about what’s going on, they probably don’t need to know as much as I know about the RussiaGeorgia conflict or whatever the issue is, but they need to know certain bits of it. So it is trying to take the complicated, longer term, broader perspective that I have, and distilling it down to what they need to know right now for their purposes. It is making sure that you can get to the key salient points quickly for people who are very busy whether it is a policy maker like a president or whether it’s a senior executive at a firm; all of those things are transferable. You do that in both worlds. The mix of what you focus on

already thinking. The more important stuff is what doesn’t fit with what you thought, and you need to spend a lot more time trying to figure out why because there may be something important that has fundamentally changed. Being able to triage really quickly is a skill that you just get over time. There are certain sources that I’ll turn

to that are standard and reliable, for example, The Financial Times, but it’s not so much about picking a couple of sources. I think its critically

you get better for the next time and make sure that you never make that same mistake again. It’s natural that people will make mistakes in their judgments or their calls on different issues, but you want to make sure that its not for a reason that should have been obvious if you had only asked this question or looked at this change. At the agency we used to have something called Linchpin analysis. It’s basically, I’m going to make a judgment on a situation and there are going to be two or three things critical to my judgment – those are the linchpins. And if one of those linchpins changes, then I need to think about changing my judgment. Ultimately, if you make a bad call, you just have to own the mistake. You have to take it as a serious learning experience for yourself. You have to make sure

“I feel that the experiences that I’ve had and the knowledge that I bring can help the firm in a way that’s sort of unique and is a value added to a firm that I very much respect.” changes, but the skill set is largely the same. So for people who are in school trying to determine their careers, I think that the way recruiting and career offices are set up is very compartmentalized, they try to guide you to this business or that field, but what’s important for people to realize is that you are going to develop skills in whatever you choose to do that ultimately are transferable to other areas. I am probably living proof of one of the more unusual transfers of those skills. HUWIB: I read your article in Fortune Magazine, it seems that your informational knowledge is impeccable. How do you keep up with current events? J.M.: You develop over time not only an ability to know what sources to rely on more than others, but also an ability to do information triage. It is saying, this stuff is important and I need to read it, but it basically conforms with what I was

important to read local press because you don’t want just the Western press’s interpretation, you want to see what the local press said. And lastly, I know a lot of people. Over the years there are a lot of people that I have worked with and I don’t just mean Intelligence people – I don’t go back to them for any secrets, that would be illegal – but just people whom I have worked with over the years that do similar things. HUWIB: Have you ever been off in forecasting the amount of risk involved? How did you deal with those mistakes? J.M.: You have to stay incredibly active, you got to stay on top of your issues. You really have to watch for the changes, which can make it hard because it makes you feel like you can never move away from anything. However, when you do have a situation where something has changed and you missed that change, the best thing you can do is learn from it. Make sure that

that you have personal integrity about being accountable for it, and you have to make sure that you get better as a result of it. HUWIB: What inspires and motivates you? J.M.: It’s interesting, if I look at my whole career, I think the thing that motivates me the most is a sense that I can help. I mean in government, doing public service for the country is one of the most compelling and inspiring missions that you can have, and the idea that you get up every morning worrying about the security of the country, I never had any question about whether what I was doing was important or whether it was going to make a difference or not. And here at Lehman, the same sort of thing. I feel that the experiences that I’ve had and the knowledge that I bring can help the firm in a way that’s sort of unique and is a value added to a firm that I very much respect. It’s that idea of being able to Make It Happen 3rd Edition

help that motivates and inspires me. HUWIB: Throughout your career, did you have any mentors or people you turned to for advice? J.M.: I think I come at this a little bit differently. I don’t think I had a single role model or mentor that I really looked to for that kind of guidance, but rather I admired an individual’s traits. Even from student days, but certainly through professional days, I looked at the aspect of a person that was really appealing to me. I think if I look back at every stage, I can find the key person who was critical. Absolutely no question, the most important guiding force from infant to twenty five, was my mother, who just made sure that I was getting whatever lessons I needed to have and made sure that I had the confidence to succeed in any situation. You don’t realize how important that kind of stuff is until you see others who didn’t have that advantage. When I was in college, and when I thought I was going to go to law school, my professor at the time said, “You really seem to like international stuff, and if you really like the international stuff, maybe you should just go straight for that without trying to go in through the back door.” That was the right bit of guidance for me at that moment. I think it’s also important to know that you can learn as much from people that you don’t enjoy working with or people that aren’t positive role models. You can learn from the negative example that they give: this is not how I want to treat people or this is not how I want to deal with this situation if I were the person leading.

The Business Guide

HUWIB: How do you find work/life balance between the responsibility you shoulder at work and separating yourself from that when you go home at night? J.M.: I think that it is not exclusive to the kind of work that I do. I think that if you talk to any senior business executive, or in my former world, policy maker, you have to have some degree of confidence in the judgment you made and be able to say, “Ok, that one is done, mentally that decision has been made.” It is interesting because when I leave, there are still headlines everywhere, there is still news everywhere, you know you get The Economist at home, you are still kind of working, but it’s also something that’s a real avocation of mine. I don’t mind continuing that outside of work. Every so often you do have to make sure that you aren’t becoming so focused on what is going on in the world that you have no idea what is going on in your community. It’s a challenge, 54

but I never found it to be that difficult to balance the two. And maybe its just because I don’t see one as a burden. What I do professionally is not something that I consider to be onerous, its just part of who I am, what I am, and what I like doing.

HUWIB: Hindsight is 20/20, so looking back, would you change your career path? What would you have done differently? J.M.: I have to say that I am content and happy with my choices. I didn’t really plan it. I’m not as much of a person who said in five years I’m going to do this and three to five years after that, I will then change to this. What I think I did was open myself to the opportunities when they came along. I actually thought that I was going to come to Wall Street after graduate school, and instead I wound up working for the CIA, totally different. But again, it was one of those things that when the opportunity presented itself and it seemed interesting, I was open to it. And then at the agency, I didn’t think that I would stay, I thought I’d do it for a couple of years, maybe it wouldn’t be interesting after that, but it turns out, its incredibly interesting work, and as I got these great opportunities and increasing levels of responsibility, it just made it all that much more compelling and interesting. The transition to Lehman Brothers was great, and again I think there were probably easier things that I could have done after making the decision to leave government, but I really wanted to do something that was a bit of a stretch. That’s why this was the opportunity that I chose. While I didn’t have a plan, it really has been done with no regrets either, just leaps of faith. HUWIB: You’ve done a lot of things since graduating from college, was there a piece

of advice that you, having experienced so many things, would give to someone in their undergraduate years? J.M.: I think the guidance I’d give is to do something that really motivates you, and something that you really enjoy. Don’t be afraid to take a chance and do something that’s less defined, you might enjoy more, and therefore, because you enjoy it more, you might be better at it, and that will create new opportunities. I actually think that’s got a better chance to leave you happier and more satisfied in the long run. The other thing is, especially for people who are undergraduates at prestigious universities who have obviously had a huge string of successes that got them to this point and will continue to have a huge string of successes, I think sometimes it would have been helpful for me, if somebody along the way would have said, “You will hit a road block, you will hit a stumbling point at some point, it will happen.” And when you hit it, deal with it. It will knock you down, it will knock you back a step, but you are going to learn from it and you are going to make sure that you come out better as a result of it. HUWIB: One of the themes of the magazine this year is how to turn an established job into a lifelong career? Was there any moment in your career that you realized that you had “made it”? J.M.: No, absolutely not. I actually think that if I thought that I had made it, I’d stop. I feel that there are always news things to do or to try. If you have a career like mine, anytime you have a series of events that are a first, where you are the first person to do X or the first person to achieve Y or in my case, the first woman to be the Deputy Director of Intelligence at the CIA, you’ve got things by which you can clearly mark your progression. But the idea that achieving one of those would lead to a sense that I “made it”, that’s just not ever the way I felt or looked at it. If you really like what you do, you just want to keep doing more or changing it up a little. Keep pressing and keep stretching.

Working at Lehman Brothers A day in the life of Scottie McQuilkin

Elizabeth “Scottie” McQuilkin is an analyst in Lehman Brothers’ Investment Banking Division in the firm’s Leveraged Finance Group, where she has worked since joining Lehman two years ago—first as a summer analyst in 2006 and then later as a full-time employee in July 2007. Although Scottie is now fully involved in the world of finance, she chose to study other disciplines while a student at Cornell University, where she graduated in 2007 with a B.A. in Economics and Psychology. In addition to her liberal arts college courses, Scottie pursued her interest in finance by taking on leadership positions at various business-oriented organizations, including the Society for Women in Business, 85 Broads and the Student Assembly Finance Commission. She also served as the Chancellor for Delta Sigma Pi, a worldwide business fraternity, which sparked her interest in investment banking. Through Delta Sigma Pi, Scottie met a number of intelligent and motivated individuals who had focused their college coursework on finance. She learned about the summer Wall Street internships, and decided to pursue an internship after determining that Wall Street might be a good fit for her personality and professional aspirations. After meeting representatives from across the various Wall Street firms, Scottie knew Lehman Brothers was the right choice for her. She found the individuals at Lehman Brothers to be very genuine and strongly committed to their company, work and one another. The skills most critical for her work are attention to detail, financial analysis, research, and the ability to respond quickly to inquiries from senior bankers and to provide accurate information. But perhaps more than anything, the life of an analyst is about organization and time management, as you need to perform all of these tasks simultaneously and apply the

The following is an insider-view of a typical day of work for Scottie. 7 a.m.: Time to get up! I check my BlackBerry and watch the news from home for a while. On busier days, I often have many e-mails which I have to respond to while I run to work. 9 a.m.: Arrive at the office I begin my day on the trading floor which is always a flurry of activity as the U.S. markets open at 9:30 a.m. 10 a.m.: Complete the items on my to-do list Most of my morning is spent on the telephone with clients, organizing client meetings, tracking media coverage on various client companies, creating financial models, assessing financing opportunities with the Capital Markets team, and preparing transaction documents for upcoming client deals. 12 p.m.: Lunch After working through various excel models and analyses, and likely preparing various PowerPoint presentations for internal and external meetings – I round up a group of analysts and head off to lunch. 1 p.m.: Market Research Since my group deals with non-investment grade debt, I also often track the trading movements of certain bonds and try to determine why the bonds of certain companies are trading better than others. Another critical task for which I am responsible is creating spreadsheets of comps, which are side-by-side comparisons of companies within a sector in order to determine how different companies perform relative one another. 9-12 p.m.: End of workday My workday usually ends late – some time between 9:00 p.m. and 11:00 p.m. – and most days I eat dinner at work with my colleagues due to the preparation work we need to complete for the next work morning. All of the senior bankers have typically left at this point, so we’re able to relax, listen to our iPods, and focus on finishing the tasks that need to be completed for tomorrow’s 9am start. On a particularly hectic day, we’re typically in until 11:30 or midnight – but the time flies if you’re busy to be there that late. Once all of our outstanding items are taken care of, we head home to spend time with our friends and families – and get some much needed rest so we can be ready for the next day’s work.

highest level of quality work possible. Working in investment banking also requires a certain amount of travel, often by private jet, in order to meet with clients in person. While the jet is quite cool, it’s exhausting. That being said – it is a wonderful experience to spend time with management. Most management team members are filled with excitement about their company and business – and can tell you a ton of facts you didn’t even know. They tend to

be wonderful, passionate people with incredible stories to tell. It’s fun to see the company formerly represented solely by documents come alive when you meet the team that runs it. She has loved working as an analyst at Lehman Brothers and feels very fortunate to be part of such a capable and passionate team of people who truly love what they do. She looks forward to all that she will experience at the firm in the years to come. Make It Happen 3rd Edition

Team Management at

Bain & Company By Polina Dekhtyar and Mika Kasumov Harvard College, HCIM Correspondents As anyone who is considering a career in consulting likely knows, teamwork is one of the basic components of a consulting job. No matter the type of consulting a firm specializes in, no matter the specific nature of the case – consultants typically work in groups to address their clients’ needs, with each team member bringing his or her unique interests, skills, and experiences to the mix. But how does group work in a consulting firm actually work? How are teams put together? Once selected, how do they function and allocate responsibilities? How do people with a variety of interests, skills, work habits, and – perhaps most fundamentally – personalities

cers, in conjunction with the Manager and Partners on each team. There are three separate individuals whose primary responsibility is to make sure that each team is appropriately staffed with the right mix of Consultants and Associate Consultants based on their respective interests, skill sets, and developmental goals. The Manager works closely with each of the staffing officers to make sure that the right mix of individuals is staffed on each assignment based on tenure and level. HCIM: How are tasks and responsibilities allocated within each group? AW: The Manager works with the Partners and the rest of the team to allocate the work, taking into account each team member’s unique skills, interests, and preferences. As part of this process, the Man-

others have exactly the opposite preference and prefer to come in much later. Without explicitly understanding each team member’s preferences and expectations, team management was more challenging. I learned early on that sitting down with each team member at the very beginning of the case in an informal setting—over lunch, for example—is a great way to get to know each person better and also understand their respective preferences. In this way, I can do my best to cater to each person’s preferences to the greatest extent possible. HCIM: Does Bain, as a whole, have a corporate culture to make sure that teamwork is as smooth as possible? AW: Yes, Bain has two specific tools for this purpose. The first is called “case team

“We are looking for bright, passionate, committed individuals who want to make a difference.” successfully collaborate for months on a single case? And do all those college extracurriculars really prepare students for professional teamwork HCIM decided to ask Harvard alumna Allison Weinberg (Harvard College ’96, Harvard Business School ’02), now team manager at Bain & Company. Weinberg joined Bain’s Boston office in 2002, after working as a Summer Associate the previous year. She has since worked in the tech and telecom, consumer products, and industrial products practices.

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HCIM: Could you tell us about the team structure and allocation of responsibilities? AW: A typical case team includes two to three Partners, one Manager, two postMBA Consultants, and two post-undergraduate Associate Consultants. The teams are determined by staffing offi56

ager solicits input from each team member about his or her unique goals for the case as well as the specific role(s) on the case that he or she prefers. Managers take this input very seriously when allocating work across the case team. Ultimately, each consultant at Bain has the opportunity to work across a number of different industries on a broad range of business issues to develop a solid foundation in general management. HCIM: Can you give an example of a challenge with teamwork that you have encountered in the past? AW: When I first became a Manager, one of my biggest challenges was understanding that each team member had different working styles and goals, and that accommodating each person’s unique style was critical. For example, some team members prefer to get to work early and leave early,

norms” and the second is the “case team status update.” The overall goal of these two strategies is to ensure that everyone has the best case experience possible. In terms of case team norms, at the beginning of each case, the team as a whole works together to set cultural norms for the case. Most of these norms are standard across the office, but each team can and does set unique norms. Norms cover topics related to working hours, vacation, communication modes (email versus voicemail), [and so on]. For example, on my last case, we set a norm that no meeting should be scheduled before 9:30 a.m. or after 5 p.m. unless absolutely necessary. Case team status update, inside Bain, is more informally referred to as “case team scores.” Every month, every member of each case team in the entire office fills out a brief survey to assess different aspects of the case experience. The individual re-

sults are aggregated to the team level and shared across the entire office. In this way, the team management from each team understands how the team is feeling about the case and can make real-time changes to the case team process, if necessary. By creating a competitive spirit across the teams, case team scores help spur on the case teams and management to optimize the experience within each team. HCIM: What personal qualities do you think a consultant should have to be a successful team player? AW: We are looking for bright, passionate,

committed individuals who want to make a difference. Candidates must have strong analytical skills, as that is the crux of our work; in addition, the ability to think and act like an owner is critical. Our consultants work with our clients to help drive change, and leadership is a critical factor for team success. Also, it is important for Bainees to be confident and articulate. This builds confidence among clients and facilitates communication across the team. Above all, consultants should be passionate, motivated, and rewarded by what Bain does.

HCIM: Have your college activities helped you become a better team player? AW: Almost all extracurricular activities at Harvard and other schools help students develop and demonstrate a number of skills that are critical for success at Bain, including analytical, communication, and team skills. In almost all extracurricular activities, students work closely with a team to accomplish a common goal. Above all, the leadership experience and skills that one develops through extracurriculars are solid preparation for successful teamwork at Bain.

Understanding the Hedge Fund Industry By Winnie Liu Harvard College Forecasters speculate that hedge fund assets could exceed $2 trillion this year. This amount of capital and management opportunity warrants a demystification of hedge funds. These funds, which are made up of a pool of capital, have grown quickly in popularity over the past couple years. Unlike mutual funds, hedge funds generally cater to a different species of investor and employ diverse investment strategies. Investors usually have a fairly high net worth, often investing over $1 million. In addition, these investors must be willing to absorb the increased risk of hedge funds. Investors are able to specify a strategy for the fund’s management, but they cannot specify what industries they would like to invest in. Hedge funds are not regulated by the U.S. Securities and Exchange Commission which oversees mutual funds. The fees which mutual funds charge are regulated by law while hedge funds are free to determine their own performance and management fees. The freedom which hedge funds enjoy has contributed to the perceived private atmosphere of the industry. In addition, the diversity of hedge funds available makes it even more difficult to articulate specifics about them. Becky Fruechte, a hedge fund stock trader, stresses that “every hedge fund is very different.” Fruechte graduated from Moorhead State University in Minnesota and has worked

at her firm ever since. The diversity which hedge funds offer is most clearly lot of additional attention has been drawn to visible in Fruechte’s cahedge funds in the wake of the current credit crisis. reer path. She originally worked in the accounting Despite the rumors, the crunch has not paralyzed department of her curhedge funds. Although they have been affected just rent firm. While there, like many other industries, hedge funds are not in she says that she wore “a particular danger. Fruechte points out that unless bunch of different hats” the fund invested in an industry was specifically hit and eventually started by the credit crunch, the effect was most likely a working as a trading asmilder “ripple effect.” sistant at the trading desk. Now, although she is primarily a trader, she says she still has a few different roles. the PM. If the PM likes the analyst’s pitch, the Part of being a trader is being well-versed traders will go ahead and execute the trade. in the industries which the fund has a stake Because of the constant communication in. Even though she is a trader, Fruechte still between the members of the trading desk, dabbles in market analysis. “I’m always moni- firms are often set up in an open manner with toring the market—if something big hits in an no walls. Fruechte says that this setup faciliindustry or market, it’s my job to inform my tates discussion. “We hear people talking and boss.” we can chime in… If my boss wants to exThe management of hedge funds is con- ecute something he will just yell his orders over trolled by the trading desk, which is made up to me.” of the Portfolio Manager (PM), analysts, and While it may seem like this open setup traders. As in Fruechte’s case, sometimes trad- would create an atmosphere of constant chaers do analysis and vice versa. Whereas trad- os, Fruechte says that there are still calm moers focus on industries which the fund has a ments, especially in the summertime. During large stake in, analysts often have a few spe- these downtimes, people at the trading desk cific industries which they research, such as the will often read or do research. Fruechte says automotive or retail industries. The responsi- that the trading desk setup may be the hardbility of the analyst is to present the benefits est thing to get used to. “When people first and risks of investing in their focus industry to enter the industry, it’s difficult adjusting to

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the lack of walls and being right out there in front of everyone.” To work in a hedge fund, you should be open-minded and capable of multi-tasking. Fruechte emphasizes that you must be able to work in a team and hold your own at the same time. Although the stereotype of financial investors is that they are young, in reality, most traders will remain in the industry over the course of their life. They may move up from entry-level positions with the ultimate goal of being promoted to PM. The idea that there is a high turnover rate in hedge funds may be attributed to traders changing their focus. For example, a trader may start out trading stocks

and decide that she likes trading instruments better. Traders may change positions when they decide on a certain area and again when they concentrate their focus. As for the stereotype that the life of a trader is hectic—that may be true. However, unlike other jobs in the financial industry, hedge funds are known for their variety. Some firms allow their traders to work different hours, and this flexibility allows traders to make their job what they want it to be. Overall, the hedge fund industry is just as bustling, but with a lot more variety. Fruechte says her job is very exciting, as each day presents a unique set of challenges. She does, however, acknowledge the fact that

a career in trading may not be for everyone, especially those who do not enjoy looking at four computer monitors during a fifteen-hour workday. Just because you may not know the specifics of a hedge fund as an outsider, do not be afraid to give the industry a try. Summer internships at hedge funds are ideal because as Fruechte’s experience shows, you will get to see and experience a little bit of everything. Taking an internship anywhere in the financial community will provide you with the opportunity to learn about many different careers. As is especially the case for hedge funds, work experience is the only way to truly become an insider.

The Ghost of Crisis Present: Structured Investment Vehicles

By Maxwell Young Harvard College, HCIM Correspondent

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Volatility has become a familiar, albeit unwelcome, face in financial markets recently as consequences from the sub-prime crisis continue to arise. Among these consequences, one stands out as a topic of debate – the state of structured investment vehicles. Structured investment vehicles (SIVs) first gained public attention in the throes of the sub-prime crisis when commercial paper markets became illiquid, but they have existed much longer. SIVs first appeared about two decades ago – not long after the initial appearance of mortgage-backed securities, coincidentally – as offbook bank trusts. By placing SIVs off-book, banks reduce their capital requirement, which allows them to make more loans while still investing billions in the SIV. Although not as preponderant as they are today, SIVs worked in essentially the same manner by issuing short-term debt in the form of commercial paper, then using the proceeds of the sale to buy long-term debt in the form of bonds. The spread in the respective interest rats generated the SIV’s profits, and profit they did. High credit ratings allowed SIVs to leverage themselves several times over, resulting in enhanced returns. As time went on, more banks created these off-book entities, investing in derivatives and debt instruments of all kinds, including student loans, credit card loans, collateralized debt obligations, asset-backed securities, and mortgages. By the time the sub-prime crisis 58

emerged, SIVs were estimated to be worth almost $400 billion. Quietly profiting for year upon year, SIVs were suddenly thrust into the spotlight this past summer. While few investors knew how these entities functioned, those who did perceived the potential for steep losses. The commercial paper market is usually considered mundane and nearly risk-less, but when perceived risk does increase, lenders demand high rates of interest to compensate for the additional uncertainty. The interest rates on commercial paper usually track the LIBOR rate, but when financial and credit market turmoil became focused on short-term money markets, the spread between commercial paper issues by SIVs and the LIBOR rate skyrocketed. By September the spread reached 60 basis points, which paralyzed the commercial paper market. Opaque to investors, SIVs had an unknown amount of exposure to risky sub-prime mortgages. Investors abruptly became unwilling to continue investing their money with SIVs, especially given that the commercial paper they bought paid only a tiny premium over risk-free government bonds. An illiquid commercial paper market left many SIVs in a grim predicament. Without the ability to rollover their debt, these SIVs were forced to sell their assets at low prices as an act of desperation. This is a lose-lose situation for the big banks that sponsor these SIVs. If the SIVs do unload some of their assets at steeply discounted prices, the banks take a sizeable loss on the value of their off-book investment. Alternatively, if the banks move the SIVs’ assets and paper on-book,

losses would be incurred by the depressed value of the paper on their balance sheet and, more indirectly, by necessarily setting aside more reserves to cover these assets, thereby reducing loaning potential. Some banks found a third option, which has given rise to both relief and debate. On October 15, Citigroup Inc. (which currently has the largest exposure to SIVs at around $80 billion), Bank of America Corp., and JP Morgan Chase & Co. announced they had put together a plan, with the blessing of the U.S. Treasury Department, to set up a $100 billion fund to aid SIVs. Dubbed the Master-Liquidity Enhancement Conduit (M-LEC), this “Superfund” would borrow money by issuing short- and medium-term debt, using the proceeds to buy good assets from SIVs at a 2% discount to market value, as well as a 4% note. Furthermore, the banks behind M-LEC would repay investors in the event that the debt could not be refinanced. This is where the debate arises: is M-LEC a solution or just another stop-gap measure that further delays addressing the fundamental problem? On the one hand, it is certain MLEC will allow losses to be spread out over a longer period of time, preventing wild changes in valuation which could further affect credit markets negatively. The realization that in times of scarce liquidity, SIVs possess the potential to substantially destabilize the market indicates that a more critical action may be needed. To be fair to SIVs, they are not liable for the high credit ratings issues for many unsafe mortgage-backed securities, which is a separate issue regarding the

“[T]he effects of the credit crisis have revealed facts about SIVs that investors clearly find unsettling – all the more so, perhaps because SIVs had been flying under the radar for so long.” ratings agencies and the role in precipitating the recent crises. Furthermore, the primary cause of the problem was illiquidity, not issues concerning the SIVs themselves; in fact, no one SIV has reported losses due to bad bonds. Downgrading has admittedly taken place: most seriously, the SIV sponsored by German bank IKB saw its commercial paper rating downgraded several notches by S&P as it sold steeply discounted assets to finance its liabilities. Nonetheless, most major money fund companies still view SIVs as having minimal credit risk. Fidelity Investments, for example, recently released a report entitled “A Discussion of the Structured Investment Vehicle Marketplace and Fidelity’s Money Market Funds,” in which they maintain support for SIVs and M-LEC. “We believe our holdings of SIV debt securities…continue to represent minimal credit risk,” the report says. Although Fidelity maintains a lower percentage of assets in SIVs than other companies, this still demonstrates that SIVs occupy, and will likely continue to occupy, an important investment niche. Nonetheless, the effects of the credit crisis have revealed facts about SIVs that investors clearly find unsettling – all the more so, perhaps because SIVs had been flying under the radar

for so long. At the very least, the lack of both regulation and transparency calls for concern. Investor uncertainty regarding the risks inherent in the assets held by SIVs was the primary force

behind the sudden loss of liquidity in the commercial paper market and in the broader market, M-LEC will stretch the timeframe over which bad bonds will be absorbed, and the major

banks are doing what they can to protect themselves and the market from additional credit fallout. However, unless current conditions change, the same risks will remain in play, awaiting a new crisis to arrive. Even Treasury Secretary Henry Paulson, who wholeheartedly supports the creation of M-LEC, has said regulatory changes may be needed to prevent future problems. Regulars need to clarify that the ultimate responsibility for SIVs lies with banks. Unless investors see less-opaque, better-regulated SIVs, it is unlikely that investor confidence in SIVs will be restored. The debut of M-LEC should prove a bellwether for investor confidence in SIVs, and will set the tone for how much change the market will demand.

Final Thoughts from HUWIB’s President Dear Readers, Harvard Undergraduate Women in Business is proud to be publishing its 3rd Edition of Make It Happen. Since its inception in 2000, HUWIB has grown to over 400 members. As we've grown, we constantly search for new ways to fulfill our mission. The magazine, like our other programs, seeks to reach out to women and provide the necessary business education. We try to connect undergraduate women with business professionals from various fields and business schools through interactive experiences in order to provide a rich exposure to the array of opportunities and a better understanding of the potential paths and experiences that lie ahead. A few highlights of such programming are: - Annual Intercollegiate Business Convention - Corporate Mentorship - Outreach Trips to New York, Boston, and other cities such as Chicago,

San Francisco, and Los Angeles - InFocus mini-MBA program - Young Women in Business Conference for high school students - Shadowing and Externship opportunities In the past, we've brought together undergraduate women with prominent professionals such as Steve Black, Co-CEO of JP Morgan, and Lilly Pulitzer, and now we are excited and honored to share the experiences of Bobbi Brown, Ashley Paige, Jami Miscik, and many others through this issue. We are excited to have you read our magazine, and we hope that hearing about their stories will inspire your own ambitions within business. Please visit us at www.huwib.org for more information!

From left to right: Nimi Katragadda, Neagheen Homaifar, Meicheng Shi, MacKenzie Sigalos, Ami Nash, Alison Ryu, Roberta Steele (top row); Kara Culligan, Seema Amble, Nandini Nair (bottom row)

Sincerely, Seema Amble President Harvard Undergraduate Women in Business Make It Happen 3rd Edition