|
|
 |
Allied Signal CEO Talks About Tomorrow's BossAllied Signal Chairman Larry Bossidy was on the UMBS campus last week. His speech followed the theme of the new generation of CEO's and the challenges they will face in the ever-changing world of business. See Michael Cardinale's story on page 6. Photos by Chopo |
On Tuesday March 10th, the first year MBA students attended one final class as a group before leaving the theory of the UMBS classrooms for the real-world application of MAP. The professor was Larry Bossidy, CEO and Chairman of the Board of Allied Signal. The topic was the CEO, the leader of tomorrow. Dean White began the proceedings with a few comments on what he expects from the UMBS students who are participating in the Multidisciplinary Action Projects. Dean White stated that he had three primary expectations from the first year MBA students. First he expects the MBA1s to "...plunge in right away... to not wait a week or two before starting the action." He also expects the MBA1s to perform a superb job on the projects, stating that in the past, several companies have noted that the UMBS students have performed superior work to the work performed by consultants hired from top tier consulting firms such as Mckinsey or Booz Allen. Finally, Dean White stated that MAP is an opportunity to expand the reputation of the school. He stated that the group of MBA1s will have over 30,000 client interactions, and that he expects "...every one of those impressions to improve the equity value of UMBS".
After graduating from Colgate with a degree in economics in 1957, Larry Bossidy began his career working as a finance management trainee at General Electric. He moved through the ranks and was named Chief Operating Officer of Electric Credit Corporation (now GE Capital Corporation) in 1979, eventually working as a vice chairman and an executive officer of GE from 1984 until he joined Allied Signal as its CEO in 1991. When Larry joined Allied Signal, the company was a disparate conglomerate comprising automotive, aerospace and chemical businesses. Typical of many American companies in the late eighties and early nineties, Allied Signal was known more for growing revenues through acquisitions than for growing the bottom line. Allied was also prone to the cyclicality of the industries in which they operated.
In his relatively short tenure at Allied, Larry Bossidy has changed all that. Since his arrival, earnings per share have doubled, operating margins have risen from 4.7% to 11.4% and productivity has increased at an annual rate of nearly 6%. Furthermore, for the six years ended December 31, 1997, the market value of Allied Signal has quintupled, significantly outperforming all major indexes. Finally, in 1990 only 13% of Allied's portfolio could be defined as growth businesses; this proportion has risen to 65% today. Larry states that he wants to bring this percentage to 75% by the year 2000.
How did Larry produce such a dramatic turn around?
Many might assume that Larry Bossidy brought about such change by abandoning many of the "mature" markets in which Allied operates. However, this is not true. Mr. Bossidy has made Allied one of the "darlings" of Wall Street by focusing his efforts on a few key areas. According to The Leadership Engine by Noel M. Tichy, much of the change Larry Bossidy has brought has been accomplished by creating goals for the company and by actively developing leaders. For example, each year Mr. Bossidy establishes three criteria that each Allied employee must strive for. This list is distributed to each of Allied's 70,000 worldwide employees. In other words, Mr. Bossidy has created a vision for the future, and has given his employees specific and challenging goals to reach. Furthermore, he gives his employees the tools to reach these goals by teaching them how to be leaders and by giving them the resources to achieve these goals. In his speech to UMBS, he stated that "...growth is a mindset, it is an ability". Mr. Bossidy has backed these words with fact, as 1997 was the sixth consecutive year in which Allied recorded earnings growth of 15% or more. Growth does not come from merely dictating change; he has created a winning atmosphere at Allied, an atmosphere which embraces change and challenge.
Mr. Bossidy's speech focused on what it will take to become the CEO of tomorrow. He stated that everyone is talking about "change," but that no one is talking about how to cope with change. Mr. Bossidy's speech focused on what the leaders of tomorrow will have to do to cope with change. He stated that the single most important factor of a successful CEO is "...the way in which you decide what kind of people you hire and promote." Included in this trait is the ability to create an environment where people are promoted by change, one which is a true meritocracy. Secondly, the successful CEO of tomorrow will have self confidence and will contain his or her ego. Bossidy stated that the biggest egos come from those with the least self confidence. In connection with having self confidence is the ability to give credit to those who deserve it, for the organization must be able to see each person's ability and must have properly trained and motivated people in every position of the company. He stated this is needed for tomorrow's flat organizations, where getting the job done means working in cross-functional teams.
He also stated that while having "brains" is important, that what is more important is having the ability to work with others and to listen to customers. The backbiting of yesterday will not be tolerated. He stated that tomorrow's CEO will have all the responsibilities of today's CEO, but will require an added dimension of diverseness needed to deal with tomorrow's global and fast changing economy. He went on to add that liberal arts majors will be valued more than ever before: "...we need people who know people."
 |
Alumni Service AwardsBonnie R. Proctor, MBA '74, is this year's recipient of the Alumni Service Award. The award honors Proctor for her accomplishments and commitment to exemplary service. |
|
Frank Stronach, Founder and Chairman of Magna International, Inc. holds his award, honoring him as the 1998 Entrepreneur of the Year. Photo by Chopo |
This Thursday, March 19, Sheila Rosenberg, the President and CEO of Equity Group Investments, Inc., an equity financial and management company, will give the keynote presentation to kick off the Sixth Annual Women's Forum. Rosenberg's presentation, entitled "Power & Influence: Breaking Barriers and Building Bridges," will take place at 4:30 p.m. in Hale Auditorium and is open to all interested students. Rosenberg will discuss the dynamics of power at both the organizational and personal levels.
The Women's Forum, a two day event, is sponsored by UMBS and the Center for the Education of Women (CEW) at the University of Michigan. The executive seminar, which will take place on Friday, will focus on the role of power and influence in the development of leadership styles and the management of individual careers. The seminar will include two presentations: "Power Dynamics at Work," by Assistant Professor Ruby Beale, and "The Politics of Power," by Dr. Judith Sturnick, President of The Sturnick Group. Finally, the day will conclude with a panel entitled "Reflections on Power and Influence." Panel members will include Janine Bay, Chief Program Engineer-- Mustang, Ford Motor Co., Sheila McKinnon, Senior Vice President--Human Resources, CompuWare Corp., and Ellen Stafford-Sigg, Partner, Deloitte and Touche Consulting Group. Friday's presentations and panel will be attended by a small group of female executives.
Rosenberg's keynote address will be followed by a reception hosted by UMBS, CEW, and Michigan Business Women. Many of the women attending the executive seminar on Friday will be present for Rosenberg's address and the reception immediately following. All students are encouraged to take advantage of this tremendous opportunity and attend the Sixth Annual Women's Forum keynote address and reception.
by Ja'Net Defell, BBA2 and Janeene Fears, MBA2
The Black Business Students Association (BBSA) would like to welcome the UMBS community to its 22nd Annual Business Conference and Alumni Weekend. This year's theme "Beyond the Horizon: Capitalizing on the Globalization of Business" is seemingly appropriate as the rapidly changing global marketplace continues to challenge current business leaders. Thus, the goal of this year's conference is to provide a platform for students to discuss current and future topics involving globalization.
The BBSA conference began as an effort to bridge the gap between alumni and current students. Today, it is a weekend of stimulating activities at which various stakeholders come together to network and share their experiences, knowledge and insight. While the BBSA sponsors the weekend of festivities, all of the conference events are open to the entire UMBS community. Moreover, we would encourage everyone to participate as the issues addressed during the course of this conference are relevant to all future leaders.
This year's conference promises to be more exciting than ever, with a delightful combination of professional and social events held at the Marriott Hotel and Conference Center in Ypsilanti. The 1998 conference planning team has scheduled an exciting variety of activities for the weekend which will offer both enjoyment and intellectual stimulation. Here are some of the many events that will take place at the conference:
Friday, March 20
Friday marks the official beginning of the conference with the Prospective Students Day program, which will be held at the B-school. This event offers an opportunity for both prospective BBA and MBA students to learn more about UMBS and interact with current students, faculty, and administrators. The day will continue with an invigorating case competition sponsored by Ernst & Young in the afternoon and a cocktail reception hosted by Dean White later that evening. The evening will conclude with A Night of Poetry and Comedy featuring D-Knowledge, Maurice Henderson, Bruce Bruce and Tony Woods. D-Knowledge is a stimulating urban, hip-hop poet who has written for such films as Higher Learning and Panther. Maurice Henderson has made several national appearances on Politically Incorrect with Bill Maher and the Ricki Lake Show. Comedians Bruce Bruce and Tony Woods have performed nationally, including television appearances on HBO's Def Comedy Jam and Apollo Comedy Hour.
Saturday, March 21
Saturday morning will feature a series of Executive Skills Workshops addressing power dynamics and global executive success. Afternoon panel sessions will discuss key topics such as Wall Street, global investments, entrepreneurship, and global marketing strategies. We are delighted to have Janet Hill, Vice President of Alexander and Associates in Washington D.C., as our luncheon keynote speaker on Saturday afternoon. Though most notably known outside of the business community as the mother of NBA all-star Grant Hill, Janet Hill consults major corporations on how to effectively develop and coordinate comprehensive diversity programs focused on the recruitment, advancement, and retention of women and minorities. The BBSA is especially honored to have Michigan's own Professor Prahalad as our distinguished keynote speaker at the gala banquet on Saturday night. This will serve as a unique opportunity to hear the world-renowned Professor of Corporate Strategy and co-author of "Competing for the Future" outside of the classroom environment. In addition, Judith Goodman, Assistant Dean and Director of Admissions and Student Services, will be honored during the banquet by the BBSA in appreciation for her leadership and extended service to the UMBS community which will end upon the completion of this school year.
Sunday, March 22
Wrapping up our weekend, we will have a praise and worship service followed by a jazz brunch featuring the Marcus Belgrave Quintet. Mr. Belgrave has had the opportunity to work with many distinguished artists in American music, including Ray Charles, Ella Fitzgerald, Sammy Davis Jr. and Aretha Franklin.
***
This year's conference definitely will be an event to remember! The BBSA extends an invitation to the entire UMBS community in hopes that individuals will use this opportunity to broaden their personal horizons. The advanced student registration fee of $35 includes admission to all events, including the gala banquet featuring C.K. Prahalad. On-site student registration is $50. Additional information about the conference is available on the BBSA website at http://www.umich.edu/~bbsa or on the conference hotline at (313) 332-9111.
Front
Page | News
| Features
| Leisure
| Opinion
| Sports
Clubs
Technology
| Corporate
| Global
Blue | Alumni
This Week... |
UMBS Links |
Search
Archives | Mail
the Editor |
