Jim Bradford

Wanted: World Shapers

We are nearing the end of the admissions cycle for this fall. As I write, applicants are making their final decisions on where to spend the next two years of their lives.

I’m pleased to point out that the entering MBA class at Vanderbilt will have the highest entering “stats” in the history of our school…a combination of GMAT and GPA scores. Something to be proud of, indeed.

Certainly schools and publications capture and tout these stats as proof of their greatness. However, the dirty secret of secondary education is that none of these highly-touted scores—LSATs, MCATs, GMATs, GREs—can predict what kind of lawyer, doctor, business person, scientist or philosopher someone will be. These scores say nothing of integrity, leadership, perseverance, teamwork or communication abilities. They fail to capture the qualities that in the work world, employers highly value.

At Owen, we do consider GMATs and GPAs to ensure that students can handle the rigorous coursework required by our MBA program; but our admissions process looks far beyond numbers. We are focused on identifying and attracting to Vanderbilt individuals who have something special, that set of factors that— when combined with intelligence and hard work—yield extraordinary results. We call it the “X-Factor” and we look for it during interviews and in face-to-face meetings. Our graduates work hard, are team players and are accountable for their actions. They are truly “world shapers”—individuals who will transform their worlds and contribute to our community at the same time. These are the people that make this such a special place to belong. These are the people that employers desire.

We will sacrifice the stats for finding the right people. It’s the better way.

My New Year's Resolution for Owen: Dream big. Make it happen.

In a recent meeting with the Vanderbilt Board of Trust—the governing body of the university—I was encouraged to “Dream Big and Make It Happen.”

As one who believes in setting goals and driving to achieve them, I love this phrase. So much so, that I’m nominating it as the 2008 resolution and rallying cry for our school. So what is the Big Dream? It’s one that every member of the Owen community—faculty, staff, student and alum--wants and works for: to be among the best b-schools in the world, regardless of size, location or historical pedigree. As for Making It Happen: It is my job to build the support systems and structure that will allow us to achieve this collective dream.

Much of this dream will be fulfilled by our continued quest to attract the best and the brightest faculty and students. In addition, we will continue to fine-tune our curriculum and leadership development program to ensure that our graduates can compete with (and win) against the best. But, in addition, there are at least three areas—definitely less concrete and measurable, but critical nonetheless—on which I will personally focus attention this year.

Encouraging innovation

Owen faculty recently launched highly-distinctive immersion-based programs including the Health Care MBA, the Master of Accountancy, the MS in Finance and Accelerator, a summer business institute for undergraduates. Owen students envisioned and breathed life into OwenBloggers, Project Pyramid and the extremely successful 2007 Net Impact conference—three initiatives that have garnered Owen fame and lots of admiration in the past year. My goal is to find more, bigger, better ways to fuel innovation and progress. What will it take? A new or enhanced facility? State-of-the-art technology? Other incentives, resources or support? All of the above? Yes.

Maintaining our culture of community

Whether I’m in San Francisco, Shanghai or points in-between, I am constantly reminded by alumni that it is the Owen culture and community that sets us apart from other schools. The Owen culture is indeed unique and difficult to describe. It consists of many things—selfless students who support each other; accessible faculty who are willing to help; attentive staff who go the extra mile to make the Owen experience more than expected; alumni who are willing to share their time and perspective to help our students and advance the school. As we continue to develop new programs and grow to fill new or bigger spaces, I will be always mindful that this desirable culture is a delicate gift and one that needs to be continually cultivated and maintained at all cost.

A fresh approach to a global education

Graduate business education is at its best when it is cutting edge, relevant and paradigm- changing. It should change the way you see the world—both literally and figuratively. As our world quickly becomes “borderless”, our students must be ready to adapt and adopt to any and all cities or cultures in which they find themselves in. At this time, I see no “best-of-class example” of a B-school that is doing globalization right. True globalization of an MBA program is more than having than a diverse community with different cultures and perspectives represented. It’s more than an international trip that offers 7 to 10 days of immersion and consulting. It’s more than case studies that deal with international issues and challenges. We’ve got these, but it’s just not enough. How do we bring a true global education to Owen? Answering that question is a high priority in the coming year.

What's in your wallet?

Is there a business tool that I find essential and cannot live without? Is there a single skill that has helped me shape my business career? Do I rely on any secret analytical tools or things I learned in a particular class?

I am frequently asked these questions. My answer is “not exactly.”

Along with most other CEOs I know, I rely on a handful of talents.

First, I rely on my ability to sift through mountains of information and data, apply my experience and judgment and reach logical conclusions. The trick is to stay focused on the big picture and end goal; avoid getting caught up in inconsequential detail; and don't be afraid to make decisions with sometimes incomplete or imperfect information.

Second, there are times that I have to admit that I lack the talent or skills to do a job properly and that the best solution is to turn to others who have the gifts and talents I lack. I advance my own worth by surrounding myself with wonderfully bright, driven people who share a common vision.

Third, I have found optimism very valuable in the face of adversity. An inherent optimism gives a leader the ability to keep moving forward even when the wind is in his or her face. Optimism, coupled with a hefty dose of reality, is an important personal asset.

Fourth, I rely on my values--my own moral compass--to see me through difficult situations. My favorite litmus test is “Would my father be proud of me?”. If not, I find a better way and a higher road.   

Fifth, I value individuals who are team players—people who are willing to stand up and say what they really think but ones who can put their personal agenda aside and support an idea not their own.

So what class teaches these things? Or, is it DNA that gets you here?

Graduate business education is all about recognizing, developing and fine-tuning these skills and traits. The Owen experience—-comprised of classes, case studies, team projects, presentations under fire, clubs, competitions and more—provide you ample “court time” to practice. Make the most of this opportunity to hone these leadership and life skills; practice making decisions; practice learning from mistakes; practice what it takes to work independently and collectively to build or advance an organization.

Is my green showing?

The Owen student body continues to set an example in breadth of understanding and zeal for addressing the world environmental and social entrepreneurship and justice issues. 

As the Net Impact Conference at Vanderbilt approaches, I am inspired by the leadership our business students have exhibited in understanding and addressing the issues of world health, poverty, environment, social entrepreneurship and social justice.  Countries other than the USA lead the world in thinking through and acting upon these subjects. Our students—working hand-in-hand with others across the country—are working hard to catch up.

My early work in these areas came via serving on nature conservancy boards and poverty alleviation efforts.  Yet, after watching the goals and achievements of the student body as they dedicate endless hours to Net Impact and Project Pyramid, I am envious.  And green.  

My own experience is that no corporate leader worth his or her soul is disinterested in world economic and physical health, a healthy environment--clean water, air and a sustainable future. At the same time, my generation has fallen short at doing what’s best for the environment and the world. Our political systems seem unable to adequately deal with these important and difficult world issues. 

The theme of Net Impact is “personal accountability”, asking each of us to think about what we can personally do to improve our environment, reduce our adverse environmental footprint and improve our collective existence.  I’ve got to say that their challenge is working: our students have made me re-think my values and evaluate my own actions.  I have always believed in setting goals very high.  Our students—and the faculty who are supporting them--have inspired me and filled me with hope.

Why publish an annual report?

If you are a member of the Owen community, you have already received (or will receive) a copy of the 2006-07 Annual Report for the Owen Graduate School of Management. If you are not, you can find a copy of it on our website.

“Why go to all the time, trouble and expense to publish an annual report?” you ask. Few academic institutions do.

I believe we have an obligation to tell our stakeholders what we as an institution have accomplished in the past year; we are accountable to those who will fuel our success. Our future rests upon the shoulders of our students and our faculty—both current and prospective. Our future is powered by our past, by our alumni who embody the life lesson that those who give—gifts of time, money or energy--receive more in return than those who merely take. Our future is shaped by businesses that recruit our students and help us define the standards by which our graduates are measured. Our future requires that all of these individuals understand who we are, what we are trying to accomplish and engage with the school in a manner that supports our efforts.

Like the for-profit world, we are influenced by the world economy and other external factors out of our control. Unlike the for-profit world, our objectives are defined by a higher sense of purpose—knowledge, leadership, professionalism--rather than the drive to maximize profitability.

I hope you will take the time to read the report, appreciate the accomplishments and challenges that lie ahead, and get to know and celebrate the contributions of 10 individuals who—along with thousands of other alumni, students, faculty and staff, and business partners--are shaping our world. It is worthy of your time.

World Shapers!

 My heroes in life are many.  I admire and have read a great deal of the writings and speeches of Winston Churchill.  I am particularly enthralled by people who have caused great change, often without the power of title, elected office or wealth—people like Martin Luther King, Mahatma Gandhi, Desmond Tutu, Nelson Mandela, Muhammad Yunus.  I admire sports figures like Michael Jordan and Lance Armstrong for their talent, humility and sportsmanship.

I met Muhammad Yunus last spring when he spoke at Vanderbilt.  He struck me as a humble man with a strong dislike for being told what he couldn’t do.  Winner of the Nobel prize, he was led to do what he thought right—making personal loans to villagers near where he worked and taught.  He sought no personal gain or publicity.  What began as a sense of empathy for those around led him to create Grameen Bank, a $4.7 billion institution employing over 11,500 people and specializing in “micro-loans” to men and women in developing countries.

I am often asked who is leading in the business world now?  Who are the people who will set the standards for tomorrow, people who are changing the world around them? Many are among us today.

Owen will be recognizing members of our community as World Shapers in our upcoming annual report as well as in our various brochures and online marketing activities.  Some are students, some are faculty, many are recent graduates; others are older alums, more established in their careers.  I admire all of these individuals—and thousands of others who are part of our community—for their vision, their unwillingness to accept the status quo, their perseverance in shaping their worlds in ways that meet personal, professional and societal goals. (If you want to read a few of these stories for yourself, visit www.owenworldshapers.com)

Life’s lesson is that it is never too early or too late to lead.  Change is never easy but those who do it well make it look easy.

 

What are YOU reading?

I often find it interesting to learn what people are reading. In addition to the WSJ, The Economist and the New Yorker magazines, I enjoy a great variety of reading material. I have recently finished reading A World Lit Only By Fire: The Medieval Mind and the Renaissance: Portrait of an Age by William Manchester; The Bayeux Tapestry by David Mackenzie Wilson, a history of the medieval tapestry depicting Battle of Hastings in 1066; Their Eyes Were Watching God by Zora Neale Hurston, a 1937 work by this important African American writer which follows the lives of poor African Americans as a hurricane envelopes southern Florida in the early 20^th century, causing great destruction and death; The First Crusade: A New History: The Roots of Conflict between Christianity and Islam by Thomas Asbridge; Managerial Economics by our own Luke Froeb, and MP Equity Valuation and Analysis with eVal by Richard Sloan and Russell Lundholm. I am currently reading Competing for the Future by Gary Hamel, one of the great living business strategist; Brothers Karamazov by Fyodor Dostoevsky; Speechless by our very own Bruce Barry; The Essays of Warren Buffett: Lessons for Corporate America by Warren Buffett and, to top it all off, A Tale of Two Cities by Charles Dickens.

Why not just business books? My experience is that reading great authors, history, and literature about the human condition expands my ability to deal with the myriad problems, people and issues I face daily. It helps me understand other people’s values, historical perspective, religion, and why people think the way they do. Reading one subject is not only boring, it makes me pretty narrow as an individual. For those of you who are parents (or even if you are not), I recommend a children’s classic entitled Bread and Jam for Francis by Russell and Lillian Hoban. It is a great life lesson about why diversity is interesting.

Favorite authors of all time: Wallace Stegner, E.B. White and William Barry. Oh yes, and Peter Drucker on the business side. While business school may overload you with reading, I encourage you to develop a habit of continuous learning and exploration. Ask people what they read. It might help you understand their perspective. By the way, I also like to read cookbooks… but that is a whole other story.

Your MBA Education: Go Broad or Specialize?

One of the important decisions to be made early in a MBA education is whether to seek a very broad general business education or specialize. The ubiquitous answer to all business questions such as this is, of course, “It depends”.

The very purpose of an MBA education is to provide you with a broad business background and understand how all the pieces fit. If you are starting your own company or running a family business, you may choose to stop there. My advice however, would be to “go deeper”.

Employers often tell me the reason they are willing to pay an MBA graduate a six-figure salary is that they expect that person to have the ability to immediately contribute to their organization. To do so, they want someone who has both a broad business education and a high degree of specialization in one or more subjects.

Everyone graduating from B-school must be very competent in accounting, finance and statistics; they must have the ability to do the analytical analysis. Those abilities are the order qualifiers. The order winners are often a high degree of specialization in your chosen area of expertise. Perhaps that is investment banking, real estate finance, brand management, or health care.  The new career and industry specializations that Owen provides in these (and other) areas are designed to give you that high level of knowledge, skills and abilities.

In addition, employers seek out those individuals who have learned how to lead and to develop others, to work in ambiguous environments and within a global setting. Our Leadership Development Program is designed to give you these abilities and experience. Successful candidates who exhibit these abilities and can communicate well will have a leg up.

CREDIT CRUNCH

What started as a subprime lending debacle, this Wall Street self-inflicted wound has now infected world credit markets. Despite liquidity infusions, a rate cut and comforting words from the Federal Reserve, the credit crunch is proving more difficult to corral than first anticipated.

For those who’ve had the pleasure of taking Luke Froeb’s micro-economics course, you are watching, in spades, the wrong incentives driving the wrong conduct. Mortgage brokers have been incentivized to sell sub-prime instruments without the accountability of their actions. Credit departments have difficulty saying “no”. Real estate speculators are driving up the price of properties in hot markets. There is too much liquidity chasing too few deals. All of these factors are combining to create the perfect storm. As these deals are syndicated and questionable mortgaged-backed securities sold, another portion of the play is unfolding in the M&A market. Balance sheets are being stacked to 6- to 9-times leverage to finance the latest acquisition. The stage is set for disaster. The slightest market hiccup or slowdown will trigger market reactions, such as the ones we have witnessed the last several weeks.

How might this affect the job market for Finance MBAs this hiring season? We’ve already seen the demise of several hedge funds, major cash infusions at others, and layoffs at sales and trading desks at a few major banks. More broadly, it has affected each and every person and institution investing in world security markets. Despite the fact that many companies are turning in excellent earnings, these events have already impacted and will continue to impact hiring this year – not uniformly for sure – making this year more difficult than last. My advice is to start early, be persistent, be geographically broad in your approach and don’t get discouraged. Your credentials and education position you well for the future. These events and cycles are common over time and do not mean you will have to forego that perfect job you want. You may have to look for it a little harder. While start-ups are finding funding sources more difficult to access, deals will get financed and transactions closed.

P.S. This hot-off-the-wire report indicates that the Fed sees the current crunch as having limited impact on the economy; this is not what I am hearing from my friends on Wall Street and I, like you, will stay tuned.

http://www.forbes.com/topstories/home/feeds/ap/2007/09/05/ap4084897.html

Thank you to the Owen Community

The Owen community has once again exhibited its true personality: in time of personal difficulty, it has embraced one of its members with care and - indeed – love.  I've watched this awe-inspiring experience time and time again. This time I am the beneficiary.

This past week my father died.  I was fortunate to have him near me the last 14 months of his life.  We were very close and I will miss him dearly.  Students, faculty, staff and administration rallied to my support and I am deeply moved by the care shown. Words do not adequately express my feelings, my appreciation, my sense of gratitude for the care and love shown to me.  Thank you.

 

James W. Bradford, Sr. / July 30, 1919 - April 10, 2007

The wreath sent by the students of the Owen Graduate School of Management in honor of my father.