A S I A ’ S L E A D I N G B U S I N E S S S C H O O L * 2 0 0 1 ★ I S S U E : 2

It Takes VisionHow the AGSM’s Management

Projects create value for business

■ What’s an MBA worth? ■ Michael Vitale on e-business ■ AGSM backs BioHub

On 25 May I had the privilege of

participating in my first graduation

as the dean of the AGSM. In talking with the graduates and their families after the ceremony,

and again that evening at the annual Graduation Ball, I was overwhelmed at the quality of

the people that the AGSM attracts.The range of experiences, accomplishments and ambitions

is truly impressive. I feel very honoured to be part of an organisation of such high quality,

and I look forward to working together to make it even better.

All of the degree-granting programs of the AGSM are receiving a good deal of attention

during 2001. Following a review last year, the full-time MBA was completely redesigned,

and considerable effort is being devoted to planning for the rollout in January 2002.The new

MBA puts more emphasis on teamwork, technology and timeliness – factors that students

and business people have identified as being essential for a 21st century MBA. Several new

courses are being added to the Hong Kong MBA, incorporating significant amounts of

educational technology to support face-to-face teaching. I am particularly excited about

the potential of this technology to enhance learning across all of the School’s programs.

Uppermost in our ongoing curriculum innovation is the review of the EMBA program, and

I anticipate that it, too, will be redesigned for 2003. In the meantime, program enhancements

are moving forward, with a completely new course on managing information technology

available in the EMBA in 2002.We are also revising and improving several existing EMBA

courses for rollout next year.

I am confident that the redesigned MBA and EMBA programs will continue to attract the kind

of people that make the AGSM an interesting, challenging and rewarding place to study, to

teach and to lead. I look forward to continuing to get to know the School and, in particular,

its many graduates.

Professor Michael Vitale

Dean

Australian Graduate School of Management

DEAN’S MESSAGE

ASIA’S LEADING BUSINESS SCHOOL**Financial Times (UK) MBA 2001 ranking of thetop 100 full-time MBA programs worldwide.

RESEARCH AND CONSULTING: We were very attracted to the academic thinking combinedwith the students’ solid work experience.

— Raymond Cheung. See full story page 8.

AGSM Magazine is a publication for supporters of the AustralianGraduate School of Management, a School of both the University of New South Wales and the University of Sydney.

Publisher: professor Michael Vitale,AGSM dean

Managing editor: Michael Walls

Editor: Debra Maynard

Design: Anthony Vandenberg

Copy editing: Richard Podmore

Bush telegraphcorrespondent: Don Taylor

SEND Magazine contributions to: magazine@agsm.edu.au

Circulation enquiriesTel: (02) 9931 9240

AGSM contact points:

Media and communicationsTel: (02) 9931 9240

Alumni servicesTel: (02) 9931 9499/9284

Executive programsTel: (02) 9931 9333

MBA programsTel: (02) 9931 9412

Main switchboardTel: (02) 9931 9200

Web site: www.agsm.edu.au

Copyright © AGSM 2001. All rightsreserved. This publication may not,in whole or in part, be lent, copied,photocopied, reproduced, translatedor reduced to any electronic mediumor machine readable form withoutthe express written permission ofthe publishers. While the publishershave taken all reasonable precautions and make all reasonableefforts to ensure the accuracy of thematerial contained, articles expressthe personal opinion of the authorand not necessarily that of the publishers or the AGSM.

Published for the AGSM by Debra Maynard & Associates, 2/72 St Marks Road Randwick NSW 2031 Australia, Tel: (02) 9314 6261,Fax: (02) 9398 4991.

ISSN 1441-5437

NEWS2 What’s an MBA worth?

Starting salaries for the AGSM’s full-time MBA graduates have risen 44% in two years.

3 Alumni Online The Alumni Directory is now online with advancedinteractive search facilities.

5 Biotech business The AGSM supports a biomedical research and development hub.

FEATURES7 Mission indecipherable

Are you at risk?

8 It takes visionThe AGSM’s ‘Management Projects’ creates value for business.

21 Putting technology to work

22 Scholarships chip away at glass ceilingBusinesswomen talk about executive development.

RESEARCH12 The business of clicks

and mortarE-business models for traditional business.

16 A case for ethics Ethics can be good for the bottom line,says Marc Orlitzky.

20 Let the games begin Robert Marks on economics-focused game theory.

DEPARTMENTS2 Upfront

24 Alumni at large26 Bush telegraph30 Publications

& papers

32 People

PAGE 7

2001 ★ ISSUE: 2

www.agsm.edu.au

Contents

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2 | AGSM I S S U E 2 • 2 0 0 1

NEWS UPDATE — KEEPING YOU IN TOUCH WITH WHAT’S GOING ON AT THE AGSM

upfrontHAVING YOUR SAYThank you to everyone who tookthe time to complete the AGSMMagazine survey. Readers wereasked to rate the quality andrelevance of the content anddesign of the new-look magazine,and preliminary results (400responses) are encouraging.

More than 90 per cent of respondents rated readability as ‘good’, ‘just right’ or ‘excellent’.Almost 85 per cent thought theoverall appearance was ‘good’,‘just right’ or ‘excellent’, and 52per cent of readers would like toreceive a magazine each quarter.The preferred medium is print (55 per cent), 34 per cent ofreaders want the magazine inprint and online, while 10.5 percent prefer online delivery.

Magazine departments andfeatures ranked most important(in order of highest percentage of readers) were cover story,research articles, upfront news,AGSM updates, dean’s message,alumni at large, bush telegraphand publications & papers.

A 44 per cent increase over salaries

in 1998.

What’s an MBA worth?

Hundreds graduate

The Governor of the Reserve Bank, Ian Macfarlane, deliveredthe occasional address at the AGSM graduation ceremony

held on 25 May at the Clancy Auditorium, University of NewSouth Wales.

Macfarlane spoke about leadership and urged students tostart putting leadership into practice by excelling in theirchosen fields. It was the first AGSM graduation ceremony heldat UNSW since the University of Sydney and UNSW merger.Almost 300 family and friends attended the ceremony, afterwhich drinks were served at The Scientia.

The numbers: In Sydney, 454 students graduated: 3 PhDs,186 EMBAs, 163 MBAs, 3 Masters of Management, 16 GraduateDiplomas in Management, 24 Graduate Certificates in Manage-ment and 59 Graduate Certificates in Change Management.

In Hong Kong, on 29 June, 69 students graduated: 2Graduate Diplomas in Business Administration, 7 Masters ofManagement, 54 MBAs and 6 MBAs from Sydney who electedto graduate in Hong Kong.

UNSW chancellor Dr John Yu (top left) congratulates an AGSM graduate atthe AGSM graduation ceremony in Sydney.

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cent) and those re-entering theirindustry at a higher level (32 percent). Starting salaries ranged from

a low of $35,000 (in India) to a high of $280,000 (in Australia).

“The worth of an MBA isobviously being recognised

in the marketplace,” says PamelaFerguson, senior vice-president

at Lehman Brothers InvestmentBanking in Hong Kong, whichrecruited five AGSM graduates from the class of 2000.

The AGSM career office statisticsalso show increasing demand forAGSM graduates throughout theregion. Asia-Pacific (excludingAustralia) employed 23 per cent ofgraduates from the class of 2000,up from 10 per cent in the previousyear. Industry placement remainsdominated by management consulting (33 per cent) andbanking and finance (32 per cent).The IT sector accounted for 14 percent of 2000 graduates, down from28 per cent in 1999.

T he average starting salary for full-time AGSM MBA graduates

has risen to $150,000.The class of 2000 benchmark represents a 44 per cent increase over averagestarting salaries for the class of1998.The reported salaries (basedon information from 94 per cent of the 2000 graduating class)comprised graduates making acomplete career change (67 per

(Top, from left): AGSM advisory councilmembers, John Reid AO, Michael Lynch,Sydney Opera House, guest speakerSandra Yates, and (far right) MartinBollinger of Booz•Allen & Hamilton, withprofessor Michael Vitale, dean, and wifeSusan Keyes-Pierce, lecturer, faculty ofcommerce, UNSW. (Below): Renowned vocal group TheSong Company entertained diners.

www.agsm.edu.au AGSM | 3

Alumni Online

A lumni Online is now up andrunning, giving the AGSM

alumni community an enhancedelectronic and interactive resourcethat makes communicating andnetworking easier.There are newresources, including an onlineversion of the Alumni Directory and a jobs posting exclusive to alumni.

The password-protected onlineAlumni Directory offers enhancedsearch functions.You can updateyour own records any time.You can search the alumni database bypreferred name (which is useful if you can remember only aclassmate’s nickname), job function(to find someone working in aspecific field), industry code (forcategorising peers’ companies),by geographic region and bycompany name.

The online jobs service is also a password-protected initiative inthe form of a job posting bulletinboard service.

Alumni Online is the product of feedback from the alumnicommunity and a year’s workinvolving the alumni committee, thecommittee’s access working group,the alumni services office and theAGSM’s in-house IT department.

If you have forgotten yourpassword or need to acquire one,open Alumni Online and click the‘problems logging in’ link toregister your request.

It’s important for business to operate in a constructive,

optimistic way with local communities.

A G S M D I N N E R

The AGSM’s board of directorswelcomes entrepreneur and

e-commerce executive DavidHarrington, an AGSM alumnus andhigh-profile founder and CEO ofPeakhour, an up-and-comingInternet business solutions provider.

“David’s experience and energymake him a valuable addition toour board and the wider school

community,” says professorMichael Vitale, dean.

David Harrington joins board of directors

The AGSM is activelythinking about its future.

“The school places significantvalue on its corporate relationships,which assist us, as businesseducators, to remain close to thereal issues impacting business in aglobal sense.”

Commenting on his appoint-ment, Harrington says: “The AGSMis actively thinking about its futureand what sorts of skills are neededto serve the board and academicstaff well. I get a sense that theAGSM sees real value in includingpeople with e-commerce skills intoits community.

“During my tenure I want to see the AGSM continue its successfulstanding as the highest profile MBA school in Australia, and tobuild its relevance for the nextgeneration of executives by betterunderstanding entrepreneurshipand technology.”

Harrington holds an MBA fromthe AGSM and a Bachelor of Lawand Bachelor of Commerce fromthe University of New South Wales.Prior to establishing Peakhour,he was a founding director of Ninemsn – Publishing & Broadcasting Ltd’s Web publishing joint venture withMicrosoft. In 1996 he co-authoredThe Clever Country? Australia’s DigitalFuture, which discusses the impactof the digital revolution onAustralia’s future.

David Harrington,CEO, Peakhour.

— guest speaker Sandra Yates, chair, Saatchi & Saatchi Australia

BUSH STRATEGY Senior Manager Development Program participants spent a day exploring team building techniques withOutdoor Insights at Manly Dam Reserve as part of the AGSM’s premium three-week intensive executive development program.

T he AGSM has entered into apartnership with the Australia &

New Zealand Banking Group to createan exclusive loans scheme to makethe benefits of its MBA programsmore widely available to students ofall socio-economic backgrounds.

“This is a breakthrough in termsof increasing the accessibility of ourhighly regarded MBA program inboth Australia and overseas,” saysprofessor Michael Vitale, dean.

The AGSM’s MBA courses are alsoeligible for the Federal Government’snew Postgraduate Education LoansScheme (PELS).Australian citizens and permanent residents can borrow

money to cover their tuition fees,and there is no cap in the number of students granted a loan.

The PELS scheme is expected to be available from 1 January 2002.The two initiatives together offerstudents more options for financialsupport. Students who began theircourses before 2002 will be eligiblefor PELS to cover tuition fees incurred in 2002.

While full details of the AGSM’sANZ loans scheme were not availableat press time, further information on the scheme’s progress can beobtained from MBA programs,Tel: (02) 9931 9412.

4 | AGSM I S S U E 2 • 2 0 0 1

Igniting great ideas T he 2001 Connector Business Planning

Competition will be launched on 2 Augustat the monthly Connector forum, which givesteams three months to come up with awinning business plan to present at the finalsin early November.The competition is backedby primary sponsor, Deutsche Bank.

This year teams are required to workwith an approved mentor. Connector(which is managed by AGSM MBA studentsand University of New South Wales School ofComputer, Science and Engineering students) has established a network of mentors willing to work with teams in the competition fromthe alumni and wider business communities.Connector can also put teams in touch withmentors through the alumni access network.

“The venture capital industry has comethrough a difficult time and is activelyseeking new sources of thought leadershipand intellectual capital of which the AGSM isa powerful source,” says Stephen Langton,AGSM alumnus and director of venturecapital firm Balmor Partners.

W ai-ping Au of Hong KongPostal Services (below)

celebrates her graduation from theAGSM’s 2001 AdministrativeDevelopment Program. Conductedby program director professorSimon Sheather, with support fromfaculty, the program is highlysought-after by some of HongKong’s most talented civil servants.The intensive seven-week residen-

tial program covers coremanagement subjectsand includes asustained compar-

ative projectusing Hong

Kong

and Australian examples.Instructors involved in the 2001program included Dr RobertWestwood, adjunct faculty KenBaxter, Greg Taylor and John Smith,UNSW lecturer Wai-fong Chua andFrank Lowy Library client servicesmanager, Pat Matthews.

For first-hand insight intostrategic issues in the Australianpublic sector, program

participants visited Federal Government

departments in Canberra,conducted interviewswith State Governmentmanagers, and werepaired with Australiancounterparts in similar roles.

AGSM to launch ANZ loans scheme

Meeting public sector needs

TOP TEACHER ProfessorGeoff Eagleson (left) won theAlumni Teaching Award for2001. The award pays tributeto an outstanding level ofteaching as ranked by AGSMstudents in the full-time andpart-time programs. Eligiblefaculty must teach in boththe MBA and Executive MBA programs. ProfessorEagleson received a prize of$3000 and an inscription onthe publicly-displayed AlumniTeaching Award plaque.

www.agsm.edu.au AGSM | 5

Marketing driveT he AGSM continues to raise its

profile as the top-ranked*

business school in Asia-Pacific witha comprehensive marketing tour to Beijing, Shanghai, Hong Kong,Kuala Lumpur, Singapore, Jakarta and New Zealand.The tour,conducted from May to July,included information sessions on the enhanced 2002 full-time MBAprogram, and put potential MBAcandidates in touch with AGSMalumni in those cities.

The AGSM visited Auckland,Malaysia and Jakarta for the first time.

Worldwide in 2001, the AGSMwill also participate in MBA fairs in Los Angeles, Paris, Munich and London.

For details on information sessionsabout full-time or part-time MBAprograms in Australia or around the world, call Tel: (02) 9931 9412or register online at:www.agsm.edu.au /infonightreg

NEXT OPEN DAY: Sunday, 14 October,Sydney.

*Financial Times (UK) MBA 2001 rankingof the top 100 full-time MBA programsworldwide.

The AGSM is part of a new NSWState Government-sanctioned

initiative to explore the possibilityof establishing a biomedical researchand development hub at Randwick,New South Wales.

The BioHub initiative also involvesUNSW’s faculty of medicine, thePrince of Wales Hospital, PrinceHenry Hospital and several non-government research institutes.

“I am extremely pleased that theAGSM has a formative role in thiseffort. Some of the ways in whichwe can contribute include puttingthe business of biotechnology intoour curriculum, encouragingresearch into the management ofbiotechnology, and creatingexecutive programs for biotechcompanies,” says professor MichaelVitale, dean.

We can contribute by putting

the business of biotechnology

into our curriculum.

— professor Michael Vitale,

dean

Biotech business T he emerging life-sciences

industry is expected to haveprofound implications for the globaleconomy this century, and onehigh-profile biotechnology player isputting business strategy in place tostay at the front line.

Australian respiratory medicaldevice developer and manufacturer,ResMed, has teamed up with theAGSM to design and deliver tailoredmanagement development programsfor two levels of its managers.Sheena Frenkel, director ofcorporate education, says: “Theprograms, which are offered to linemanagers, and vice-presidents anddirectors, focus on individual andmanagement development, strategyand leadership.”

ResMed is one of Australia’sbiotechnology business successes,having gained worldwide acceptance of its sleep disordered

CUSTOMISED LEARNING The AGSM has created a corporate education program for global property development company Jones Lang LaSalle. The firstfive-day program was rolled out in June at the AGSM’sLittle Bay Conference Centre. Selected managers camefrom across the region, from Japan to Singapore. Theystudied global strategy, marketing, e-business, commu-nication skills, managing people and financial manage-ment. Overseeing the program (from left) are: BobGerst, JLL director of human resources, Asia-Pacific;the AGSM’s Dr Anne Lytle, program director; professorMark Hirst, AGSM associate dean, executive education;Stella Garouniatis, JLL human resources manager; andJLL executive chairman, Chris Brown.

INVESTING IN TALENT Morgan Stanley Australia, the Australian arm of a leading US invest-ment bank, has established an annual program to fund two half scholarships for outstandingAGSM MBA students.The new Morgan Stanley Australia Young Fellows program recognises theimportance of nurturing young business talent.The scholarship winners will also participate inthe Morgan Stanley Associate Internship program.

“Advances in biotechnology and genetic engineering mean thatcompanies are now capable ofproducing products from plants andanimals that it used to be necessaryto build a factory to manufacture.”

Citing the example of US-basedGenzyme and its success inproducing proteins for cancertreatment from the milk of genetically engineered goats thatmay result in a single goat herdreplacing a $150 million drugfactory, professor Vitale says:“Australia’s economy is sodependent on agriculture yet weremain well behind the world’sleaders in biotechnology.

“It’s pretty clear Australia must become a creator and manager of biotechnology, and the BioHub project is a great step forward.”

breathing products. It operates offices in the US, Australia, Europe,Japan and South-East Asia, and itsdistribution network supplies morethan 40 countries.

In March ResMed put 30 linemanagers through the AGSM’sExecutive MBA subject, “ManagingPeople and Organisations”.Taught inResMed’s training rooms, AGSMcourse instructors tailored the subjecttheory to ResMed’s current workissues and managers’ personal development goals.

The second part of the program,for vice-presidents and directors,began in May. It is a fully-customisedstrategic management and leadershipprogram held on a Friday andSaturday and taught over threemodules to minimise time awayfrom work. Designed in cooperationwith ResMed’s HR director, ShirleySproats, the program aims to buildadvanced capabilities throughoutResMed’s management teams.

AGSM backs BioHub

‘

’

Over the weekend of 30 March –2 April, the AGSM Wombats

travelled to the United States for theFuqua Business School’s World MBARugby Championships at DukeUniversity. A team of 37 men andwomen representing full-time andpart-time MBA students, a PhDstudent, alumni and the Sydneycommunity carried the banners ofthe AGSM and our sponsors DeloitteTouche Tomatsu, Qantas and BainInternational. In the land of gridironand baseball, we sought to teachNYU-Stern,Wharton and Stanfordhow ‘footy’ is played.

Since return-ing from the tourI have been askedmore than once:“Why journey sofar, at such greatexpense, during theschool term for a game of football?”

Besides the obvious opportunityto beat Harvard and to enjoy a greatparty weekend, the tournamentraises the profile of the AGSM andalso provides unique networkingopportunities. As a US citizen, I wasoften asked why I chose an MBAprogram in Australia. I enjoyed

giving my perspective on studying in the Asia-Pacific region, pointingout the advantages of learning in amulti-ethnic class, and of the greatcamaraderie gained from travellinghalfway around the world torepresent the School.

by Maggie DeVane (MBA2)

THE SCORESThe men wereundefeated, beatingHarvard 8—5, (above), Vanderbilt25—15, SouthernMethodist University35—0, Duke University25—5 and Cranfield(forfeited). The women put up agood fight but weredefeated in their threematches againstLondon BusinessSchool 0—1, Stanford0—1 and Kellogg 1—2.

For your diaryT he AGSM Centre for Corporate Change has

three upcoming seminars in its Research Briefing Series. Each seminar is moderated andfeatures an academic speaker and two leadingbusiness commentators.

On 2 August, Dr Katrina Ellis presents ‘After the Deal: Underwriters and IPO Trading’,an examination of the continuing role of the underwriter once an equity offering is complete.

On 27 August, a seminar on ‘The Mind of the Asian Consumer’ presents Dr Giana Eckhardt’sresearch on Asian consumer behaviour and brand interpretation.

On 26 September, professor Robert Wood offers‘Mental Models of Managers:Aid or Impediment to Effective Strategic Action’, a seminar on howmanagers’ implicit models of the world can bothhelp and hurt adaptability and strategy formation.

The seminars will be held at Customs House,21 Alfred Street, Circular Quay, Sydney.They aresponsored by the City of Sydney, Booz•Allen & Hamilton, NB Rothschild and Sons and Blake Dawson Waldron.

To register, call the Centre for Corporate Change on Tel: (02) 9931 9502 or e-mail:

ccc@agsm.edu.au.

I S S U E 2 • 2 0 0 1

THE WOMEN’S FOOTY TEAM (from left): Gynette Kershaw(MBA2), Jellica Strauch, Iole D’Angelo (MBA1), Amy Tucker(MBA2), Emma Huntington (MBA1), Gina Rose (MBA1), SoniaPrasad (MBA1), and Karly Loy, AGSM student relations.

Wombats tour

(From right): BCG’s StevenTomsic and Soji Swaraj (MBA ‘00),

with Carmella Law(EMBA ‘99) andMichael Carr.

T he Boston Consulting Group putsome fun into the business of on-

campus recruitment at its 2001meet-and-greet event by staging abusiness game and awarding winnersprizes.

Six teams of students and BCGconsultants played a mobile telecom-munications game in which eachteam had to make strategic decisionsaffecting shareholder return.Thewinner was the team with thehighest total shareholder return atthe end of the game. Business talentwasn’t the only winning strategy onthe night as teams literally sang for

their supper, composing telco jinglesas part of the game.

“The event is an important onefor The Boston Consulting Group,which is one of the biggest recruitersof AGSM graduates. It provides anopportunity for us to get to knowstudents and prospective recruits,and it allows students to meet us in a relaxed social setting,” says DavidPitman, BCG recruiting director.

Other recruiter social events havebeen hosted on campus during theyear by LEK Consulting, Booz•Allen& Hamilton, McKinsey & Company,Accenture and Bain International. ✪

On-campus recruitment

offending literature isremoved while consul-tants using deliberatelyconfusing language arecounselled.

If your addictionhas insinuated its wayinto your private life, amobile ‘plain Englishon wheels’ unit willcome to your home to purge it of fads.Equipped with sophis-ticated technology, themobile agent scansyour house for bookswith business schoolimprints and puts themin the shredder, alongwith any book that hasthe word ‘organisation’in it.

The agent combsthrough e-mail andscans your personalcomputer for abstrusebuzz words and other

signs of fad addiction. “Fad Busters’ agentswill cleanse the home and make it pure,”says Marks.

“We have only the greatest sympathyfor MBA graduates,” he says. “They gothrough their studies thoroughly abreast ofthe fad of the day, but as soon as theyfinish, a new fad takes over the workplace.”

Marks says that although fads initiallyappear innocuous, they soon begin infil-trating every aspect of mental life until thevictim can’t think or talk straight. In severecases, addicts who are deprived of a fad formore than 24 hours may go to extraordi-nary lengths to latch onto a new one. Somehave been known to trail consultants,others to surf the Net through the night insearch of a new fix.

“There is a serious social and economiccost to fad addiction,” observes Marks.“It has to be stopped.” ✪

* Helene Zampetakis is a freelance businesswriter.

www.agsm.edu.au AGSM | 7

I s your bedside table piled high withthe latest books on management fads?Do you go to sleep at night thinkingabout how to implement the latest

business trend, only to wake up in a coldsweat reciting buzz words? Is your interestin staying informed becoming a career-limiting obsession? Relax – there is nowhelp at hand.

A new service, Fad Busters, is here tohelp you cut the Gordian knot.The serviceis designed to strip fads of their allure andreduce them to common sense. Fad Busterswill strive to collapse the image of the mostimpressive fad, pare jargon down to itsbare bones and leave you with clarity.

Rodney Marks (MBA ’82), comedianand founder of Fad Busters, says, “We are here to seek out fuzzy thinking and frivolous language and make it clear.We’re here to show that the emperor hasno clothes.”

Marks notes that the root of the problemis that MBA graduates, who are nowmasters of business, are being caught upin faddish obfuscation.

“They’re speaking a language used onlyby an elite group and are excluded fromthe rest of the workforce,” says Marks.

To tackle this, Fad Busters offers thosetruly entangled with verbiage access to ahelp line that guides them through the Top10 management fads and deconstructs themost offensive buzz words.

Callers are channelled through acascading series of questions by anautomatic service that lets them select anynumber of fads or buzz words for transla-tion. Total Quality Management, forexample, translates as “doing your best allthe time in all of your businesses”; bench-marking is “how you’re going compared toothers” while business process re-engineer-ing becomes “is there a better way of doingthings?”. Mission deconstructs to “why youare doing this?”; personal excellence is“doing your best” and alignment is “are weall on the same page of the hymn book?”.

“We seek to make this service accessibleto people even as indoctrinated as MBAgraduates,” says Marks.

Mission indecipherableIn an age of instant answers, are management fads a panacea or distraction?Helene Zampetakis* investigates

FEATURE

Fad Busters is here to help you cut the Gordian knot.

The help line prompts callers to press aseries of numbers to solve any particularproblem – dial one if your call is a careercrisis translation, or dial two if you justwant help understanding what your subor-dinates are saying.

Callers with an esoteric query are not lefthigh and dry. The help line also has voicerecognition software that allows you toutter the offending words and have themprocessed and translated within 60 seconds.

“The beauty of the software is that it picksup both Australian and North Americanaccents, and even Finnish if the fad is relatedto telecommunications,” says Marks.

Fad Busters goes further. It offers to cometo you either at the source of your problem,your workplace, or to assist you in theprivacy of your own home. Less serious cases can be dealt with at the office. Here,IL

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Y ou’re a business that needs a three-month consulting job – who are you going to call? PricewaterhouseCoopers?

Accenture? Or, as a growing number ofcompanies have discovered, are yougoing to call in a team of MBA candidatesfrom the AGSM?

The AGSM’s ‘Management Projects forBusiness’ has been up and running since1996 as a major practical component ofthe postgraduate course, and the latestround of projects has put students rightat the cutting edge of new technologyand the new economy.

At hearing technology companyCochlear, a team of students designed aframework for the company to identifyoutsourcing opportunities.Another teamtook on the challenge of designing a set ofkey performance indicators for Reach, the50-50 IP connectivity services jointventure formed by Telstra and Hong Kong-based PCCW (formerly known as PacificCentury Cyberworks) earlier this year.

It takesvisionLeading academicresearch and consultingteamwork involving some of Asia-Pacific’s brightest MBA candidates are gettingresults for business.Lachlan Colquhoun*

reports

8 | AGSM

SMART STRATEGY AGSM team members and clients (from left): Cochlear’s Georgina Sandersonand Dig Howitt, Reach’s Lee-Anne Liang, Cochlear’s Joy Liu, Management Projects managerSamantha Morley, Reach’s Greg Baxter, Andrew Armstrong, Danny Li (seated) and Angel Zonaga.

10 | AGSM I S S U E 2 • 2 0 0 1

According to the manager ofManagement Projects, SamanthaMorley, the latest batch of projectsshows the power of the AGSM’snetwork in action. At Cochlear,for example, the initiative for theproject came from GeorginaSanderson, an AGSM graduatenow working as Cochlear’smanager of strategy development.

“It’s a great network we havehere at the school and it’s one ofthe benefits of doing an MBAprogram,” says Morley.

“Alumni, previous employers,academics and their networks –it’s a widening circle.And sometimes you’rejust out and about, and you meet peopleand tell them what you do and they say‘that’s great’, I’d love to participate.”

Many of the students, says Morley, have upto 10 years’ work experience at a high level andare already the types of people who would beinvolved in, or qualified for, consulting.

DIVERSE EXPERIENCE“We have a diverse mix of students and thewhole benefit of working in a team is whatwe are promoting,” Morley says.

“There may be someone who has workedfor a consulting company in England, ormanaged an IT start-up in India.”

Georgina Sanderson joined Cochlear atthe beginning of 1999, and her thoughtsturned to her old school when the companydecided it needed a framework to makeoutsourcing decisions.

Floated off from parent Pacific Dunlop in1995, Cochlear now has a market capitali-sation of about $2 billion, and has implantedmore than 30,000 of its Australian designedhearing systems in patients around theworld. The company has also made someinternational acquisitions, buying PhilipsHearing Implants in Belgium last year.

“We’re a high-tech company and we havebeen growing at about 20 per cent a year inthe last four or five years,” says Sanderson.

“Previously the business was all self-contained but now as we grow more rapidlywe must adopt new technologies at a fasterrate while maintaining flexibility. Developingpartnerships to develop new technologyrather than doing everything in-house allowsus to achieve this.

“What the group was looking at washow do we identify our core competen-cies, those things we want to keep inCochlear and provide us with a competitive

advantage, and what are the possible thingswe could look at outsourcing.”

Under the supervision of AGSM facultymember Dr Robin Stonecash, the team offour students – from differing cultural back-grounds – set to work to understandCochlear and its needs, interviewing a widerange of people within the company tobuild perspective.

The aim was to restructure how Cochlearmade outsourcing decisions, and to establisha framework for outsourcing and evaluatingthe results over time.

“I think the students can do a very goodjob of being an outsider,” says Stonecash.

“Companies tend to get a lot of tunnelvision, and contact with a student consultingteam forces them to take a step back and lookat issues from a slightly different perspective.”

Applying academic learning to a ‘live’company situation demanded some initialadjustments, but access to people at all levelsof the company was a vital part of under-standing Cochlear and its core competencies.

“The students came to Cochlear withthe freedom to interview whoever theywanted. We just set them up with confi-dentiality agreements and suggested inter-views they might like to do to get a feel forthe business,” says Cochlear’s Sanderson.

After an interim report, the students gotsome feedback from the company, set backto work and came up with a final report,which the company is now using as aprocess to evaluate outsourcing decisions.

“They came up with a solution that wasintegrated into the business process that wealready have,” says Sanderson.

“They did develop something very usefuland got it down to a practical level that wecould implement, starting from a quite the-oretical framework and eventually workingwith our people to create something that

was actually realistic in a company setting.“From a company perspective it was a

very inexpensive way of accessing the latestthinking, and as a past student I know it’ssuch a great opportunity to get out and getsome real experience.”

BUSINESS TALENTHer verdict on the students?

“They were a highly talented group andspent quite a lot of time in the infancy of theproject to understand the company.

“It’s always exciting to be involved witha group of young people who are somotivated, and who are so willing to learnand contribute.

“Definitely Cochlear would be interestedin doing it again.”

As for the students, Indonesian EkaSugiato says the project gave her a feeling ofachievement beyond academic course work.

“This is a company that helps profoundlydeaf people and we hope that some assis-tance we are giving might also benefit thosepeople,” she says.

“It was also immediately apparent to usthat Cochlear was committed to the veryhighest quality, and that made for a veryinspiring learning environment.”

Colleague Joy Liu says the Cochlearproject was a steep learning curve onteamwork, interviewing and applyingacademic knowledge.

“In the interim presentation the managerssaid we were too academic, so we did anew round of interviews, picked up more

We were very attracted to the academic thinking

combined with the students’solid work experience.

www.agsm.edu.au AGSM | 11

information about the company and appliedit in a final presentation which was a greatimprovement,” says Liu.

For Dr Charles Hopley, a medical doctoras well as an MBA student, the project was aperfect mix of his medical background andhis business aspirations.

“The combination of team involvement,problem solving and dealing with peoplefrom different backgrounds was very useful,and I’d recommend it to anybody as anexcellent process to go through,” he says.

KEY PERFORMANCE INDICATORSAt Reach, the Telstra-PCCW joint venture, thetask was perhaps even more challenging.Reach is a new company formed as a resultof last year’s $5 billion deal between Telstraand PCCW, and it carries data traffic aroundthe globe.

Telstra has folded some of its regionalbusiness into the company, which has 1100staff and is looking to build rapidly on itsposition as the largest value-added connec-tivity services provider in Asia outside ofJapan. Reach is also the single largest share-holder in the new high-speed APCN-2 cablelaunched in September last year to carrydata throughout the region.

A system of establishing key performanceindicators was considered essential for measuring Reach’s performance, butestablishing that system presented a uniquechallenge to the students given the cross-cultural and cross-border nature ofthe company.

“They certainly gave us something to work with and build on, and they’vedone very good work,” says RaymondCheung, Reach’s Hong Kong-based actinghead of finance.

Cheung says that even though thecompany was used to dealing with some of

the major consultancies, it could see advan-tages in turning to the AGSM students.

THE LATEST RESEARCH“What made the AGSM option attractive isthat we understood that some of the studentshave very solid work experience, and theywere guided by the [research of the]academic [Paul Walsh], which was importantfor us,” Cheung says.

“The second most important thing wasthe presentation they made to us on theirfive-point approach to developing KPIs.

“Even though they did that through avideo conference, the presentation was prettyconvincing, and made us think we shouldgive them a try.

“The fact that it was much less expensivethan some consultants was a small factor,because first of all we realised that theycould probably do the job we wanted.”

Under the supervision of faculty memberDr Paul Walsh, the students came up with afive-point methodology for determiningKPIs, going beyond the company’s accountsand cash flow to looking at some of theso-called ‘softer’ strategic issues.

The five dimensions were – in ratedorder – strategy, project management, riskmanagement, business financial and opera-tional issues. The AGSM team defined objectives within each of these areas whichwould enable Reach managers to evaluatethe performance of the company.

“The difficulty with most performancemeasurements is that they measure the easythings,” says Walsh.

“We call them housekeeping. Theymeasure variance to budget and operationalissues, but what they don’t look at isstrategic, or steering measures – the kind ofthing that lets people know how to rowtogether, and in the right direction.

TEAMWORK (Far left): members of the Reach team(from left) Andrew Armstrong, Angel Zonaga, Lee-Anne Liang, Danny Li and Greg Baxter. (Left):Cochlear project participants (from left) Dig Howitt,Joy Liu, Georgina Sanderson and Samantha Morley.

“The soft and intangible issues are oftenmuch harder for companies to do becausehistorically the custodians of KPI have beenaccountants, and they’ve done very wellputting together systems and measuringeverything to the last penny.”

Walsh says that when the AGSM projectbegan, Reach had focused on financial dataagainst which to measure its performance.The student input widened that perspec-tive to include strategic issues such asknowledge management, the communica-tion of the company’s value proposition,and customer acquisition and retention.

Raymond Cheung’s assessment is thatthe students gave the company “somethingto work with and build on”.

“They did very good work, and produceda good foundation on which to moveforward,” he says.

“Now, we need to discuss it with seniormanagement and the related function headsand get their buy-in, and then it can becomea formal part of our reporting structure.”

The key to the project’s success, he says,was the combination of the students’ hardwork in understanding the company, and the academic framework provided by theAGSM and backed up specifically by PaulWalsh’s input.

“We were very attracted to the academicthinking, but if it was only pure research itwouldn’t have been very useful.

“The key thing was to combine academicthinking with the students’ technical experience.”

MBA student Stuart Stott says the Reachproject gave him invaluable exposure to anew organisation, and one that had subtledifferences of culture and strategy betweenSydney and Hong Kong, which had to beincorporated into the process.

“It was excellent being involved insomething that is current, that is live, that isreally fluid,” he says. “And I think that theywere looking for a fresh perspective, forsome up-to-date theories and ideas.”

Another student team member, AndrewArmstrong, says the key to the Reach projectwas flexible thinking. “We didn’t want to goin and just rehash – we wanted to introducea new way of developing KPIs in a morewholistic fashion.” ✪

* Lachlan Colquhoun is a freelance businessjournalist.

A n electronic commerce revolution is takingplace in business today.To date, much of thefocus in this revolution has centred on highlypublicised start-up companies, which have

simultaneously developed and market tested radicalnew business models. However, the really hard workwill be done, and most of the profits will be made, bytraditional businesses already operating today.

Electronic commerce will require traditional businesses to move from the marketplace to the marketspace.1 This migration includes making challenging decisions about which electroniccommerce business models will be successful andhow they will integrate with current customerchannels. Many of the assets of successful place-basedbusinesses will be equally powerful in space, butsome liabilities are also becoming painfully apparent.

CHALLENGES FACING EXISTING BUSINESSES

In our discussions with existing companies migratingto electronic commerce, a common set of challengesemerged:■ Which business model? Paradoxically, one of thegreatest challenges of electronic commerce is the

This edited excerpt from Place to Space by Peter Weill

and Michael Vitale* gives asummary of e-business models

and the migration challengestraditional companies face.

The business of clicks

&mortar

RESEARCH

Reprinted by permission of Harvard Business School Press.An excerpt from Place to Space by Peter Weill and MichaelR. Vitale. Copyright © 2001 by Harvard Business SchoolPublishing Corporation. All Rights Reserved.

12 | AGSM

Some customersegments will want

only clicks, others willwant only bricks andmortar, and many willwant a combination.

fact that almost any-thing is possible.Choosing amongstmany alternatives chal-lenges traditional busi-nesses, which requiresrealistically assessingwhat a company iscapable of given its core competencies andcustomer relationships.Too often we have seengrand business modelsfail in implementation.This happens largelybecause the brand isn’treally strong enough tocross-sell into a differentproduct range, the company’s traditionalcustomers don’t actually use the Internet, orworse, they discover in using the Internetthat the company’s prices were too highfor the value delivered. New business modelsoften bring new challenges, such as coor-dinating strategies across multiple lines ofbusiness. Diana L. Brown, vice-presidentand general manager of the financial servicesbusiness unit at e-commerce systems builderScient Corporation, explains, “For the firsttime banks have to integrate strategies acrossall lines of business … it forces them [toask]: What functions are we putting onwhich channel? How do we cross-sell?”2

■ Channel management and the newintermediaries. There has been much dis-cussion about disintermediation in elec-tronic commerce – the electronic bypassingof traditional channel intermediaries such astravel agents. However, intermediariesaccount for more than 20 per cent of theInternet economy. Most traditionalcompanies not only have to work with theirtraditional channel partners, they also haveto work with new intermediaries – andmanage potential channel conflict. Some ofthese new intermediaries are creating toughdecisions for companies. For example,should a premium retail wine store that has just launched an online site allow automated shopping agents, such asWineRobot (www.winerobot.com.au), toenter their site to compare prices? Agreeingmeans that the store’s price for a bottle of1992 Grange Hermitage will be comparedto the competition’s prices for the samewine. Refusing to allow shopping agentsto enter means missing a potentiallyimportant source of sales. Participatingmeans being compared by relatively

objective measures such as price ormerchant ratings. Forexample, Bizrate.com(www.bizrate.com) elec-tronically polls buyersfrom electronic storesand compiles their satis-faction ratings into ‘star ratings’ which arepublished on the com-parison tables of someshopping agents.■ Identifying customersegments ready forelectronic commercewhile maintainingother customers. Only

some customer segments are ready for elec-tronic commerce today. Understanding whothey are and, just as importantly, who theyare not, is a critical first step. Avoiding dis-enchanting non-electronic commercecustomers is a critical second step. Customerswho prefer to continue using traditionalchannels will react badly to perceived orreal price discrimination. Cheaper pricesoffered on the Web may encouragecustomers to switch channels, potentiallyreducing a company’s selling cost suffi-ciently to make up for the drop in margin.At the same time, the lower switching costsof buying on the Web may encouragecustomers to switch suppliers!■ Capitalising on potential revenuestreams and lower costs. For manycompanies the conversion of traffic on theirWeb site into a revenue stream is challeng-ing. Consider the Australian travel publisherLonely Planet (www.lonelyplanet.com.au).Its Web site has two million unique visitorsa month but generates little direct revenue.The company’s revenue comes primarilyfrom book sales through bookstores, butloyalty to the Lonely Planet brand isenhanced by a popular Web site.What wouldhappen if Lonely Planet added advertising orlinks to companies selling related productssuch as backpacks? For many traditionalcompanies, even attracting visitors to theirsites is not easy.According to Media Metrix,of the top 10 performers in attractingvisitors, only Barnesandnoble.com andToysrus.com had their roots in traditionalcompanies. Converting a visit to revenue isalso harder for traditional companies; theaverage purchase size for pure Internetcompanies is significantly larger than forclicks and mortar companies.3

■ The organisational form necessary forelectronic commerce is radically different.Traditional hierarchical, functional andmatrix structures are not particularly wellsuited to running electronic commerce busi-nesses. Electronic commerce businessesrequire very rapid decision-making andimplementation, often using alliances thatform and disband repeatedly. More chal-lenging still, electronic commerce oftenrequires a single and complete view of acustomer wherever and whenever he or shechooses to touch the organisation. Thisunified view is more difficult to establish andmaintain in place-based organisations thatare structured into product- or service-basedunits, each of which tends to promote itsown view of the customer.■ Skill sets, culture and incentives. Manytraditional companies have worked hard tobuild skill sets, cultures and incentives tosupport their businesses. A new electroniccommerce initiative is likely to threatenthose established competencies, which maynot be compatible with the requirements ofthe new initiative. For example, many MBAgraduates are working for start-up dot comson relatively low salaries with huge shareoption packages. Traditional companiesstruggle to match the start-ups in creatingincentive plans that will attract and retainyoung staff.■ Convergence of processes, work-flows, infrastructure and data assets.Implementing an electronic commerce ini-tiative requires integrating more than just thetechnology. The excellent electroniccommerce companies such as Dell havemanaged a convergence of business processwith workflow and data assets to deliveron a ‘single point of contact, direct tocustomer’ business model. For traditionalcompanies with legacy processes, systemsand databases, this sort of convergencerequires major change and a significantinvestment in rethinking the business, aswell as a new technology infrastructure.■ New information technology infra-structure. Although we recognise that elec-tronic commerce is fundamentallydependent on information technology infra-structure, we were still surprised by howmany new information technology infra-structure services were required by thecompanies we studied. Also surprising wasthe increase in investment necessary toprovide these infrastructure services to thelevel necessary to implement planned elec-tronic commerce initiatives. None of the

14 | AGSM I S S U E 2 • 2 0 0 1

www.agsm.edu.au AGSM | 15

traditional companies we have studied andworked with already had the required infor-mation technology infrastructure capabilityin place to implement their electroniccommerce initiatives. All of the companiesrequired substantial infrastructure invest-ments in as many as 40 separate infrastruc-ture services.■ Pacing the migration to electroniccommerce. Pacing the migration from placeto space is a significant challenge for manytraditional companies. Are our customersready? Are we ready? For many traditionalcompanies the timing of their first initiativeis dependent on getting capabilities – skills,products, infrastructure, and so on – inplace. However, after the first initiative, howfast should the migration be, and in whichcustomer segments? Alice Peterson, vice-president and general manger of SearsOnline, explains their approach: “We couldhave put the whole store online … [insteadwe will create] … a deep rich site that offersmultiple solutions, around the primaryintention of maintaining and improvingthe home.” 4

INVEST IN A PORTFOLIO OF ELECTRONIC COMMERCE INITIATIVES

Given the uncertainty of the future shapeof electronic commerce for a traditionalcompany, a powerful approach drawn fromthe financial markets is to invest in a portfolioof initiatives. An investor looking at the dotcom sector will typically buy a portfolio ofstocks and keep a close watch on their per-formance. The investor expects high vari-ability in the performance of any one stockin the portfolio. Many stocks will fall invalue, perhaps to zero. Others will breakeven in investment terms, often after abumpy ride. Ideally, at least a small percent-age of the stocks will enjoy meteoric risesand deliver huge returns on investment forthe individual stocks and a strong positivereturn for the portfolio as a whole.The sameapproach can be applied to a portfolio ofelectronic commerce initiatives. Our LonelyPlanet case study describes how the companylaunched a series of electronic commerceinitiatives.These include its award-winningWeb site, Thorn Tree virtual community,eKno travellers’ communications service andCitySync, the distribution of city guides via handheld devices. Although the performance of any one of these initiatives is uncertain, Lonely Planet is reasonablyassured of receiving a positive return on

its portfolio of electroniccommerce investments.

The savvy investor will alsoinvest in learning more aboutthe dot com sector – he orshe will read, collect perfor-mance data, join chat groupsand attend seminars. Theinvestor is gaining competen-cies that he or she hopes tocapitalise on when opportunities presentthemselves, often unpredictably.We advocatethe same approach for companies: build aseries of competencies that are certain to beneeded in an electronic commerce future,regardless of the exact business models thateventuate. This building block approach isevident in the case of Lonely Planet. Thecompany is not sure which electroniccommerce business models it will ultimatelypursue, but it can be sure it will need tohave its travel content stored in an integratedknowledge bank.Then whatever the productor the distribution channel (bookstores,handheld devices, Web sites, etc.), LonelyPlanet can access, integrate, and distribute allits content electronically. The knowledgebank is one of Lonely Planet’s building blocksfor its electronic commerce future. Thedecision to invest in each building block islike the decision of an investor to buy afinancial option that can be exercised in thefuture. Investing in a capability now providesthe ability to build electronic commerce ini-tiatives more quickly later. Determining theright building blocks for a company is one ofthe most important electronic commerceactivities for senior management. Decidingwhich building blocks to create requiressenior management to ask hard questionsabout the company’s competencies in anelectronic commerce world. In Place to Space wediscuss some important building blocks forall traditional companies to consider,including transaction analysis, company-wide customer databases and brand andchannel development.

Electronic commerce offers new andexciting ways of doing business forcompanies and their customers. Electroniccommerce can increase customer satisfactionlevels, potentially offering customised 24-hour service delivered worldwide on asingle-point-of-contact basis. For manycompanies the economics of electroniccommerce will be irresistible, reducingtransaction costs by 75 per cent or more.Allcompanies need to begin the migration toelectronic commerce with the urgency and

pace determined by the sizeof the threat and opportunity.Senior management must leadthis strategic analysis andmigration since the opportu-nities and threats are too largeto delegate the responsibilitydown to a level where theperson cannot say no!

The combination of placeand space business models is very powerful.Most traditional companies will migratetheir businesses to a combination of clicksand mortar. Different and tailored valuepropositions are needed for each customersegment. Some segments will want onlyclicks, others will want only bricks andmortar, and many will want a combination.Successfully migrating to a clicks and mortarbusiness model is a major change affectingalmost every aspect of a company’s business,including channel and intermediary man-agement, customer segmentation, changes in organisational form, incentives, skillshortages, information technology infrastructure investments, cultural changeand a convergence of business processes,workflows, infrastructure and data assets.The migration is both exciting and chal-lenging, and the process of moving frommarketplace to marketspace raises funda-mental questions for senior management:What really are our company’s core competencies? Are these competencies world class? How do we nurture these competencies? What is our position on the industry value chain? Is our current profitability sustainable? ✪

* Peter Weill is director, Centre forInformation Systems Research, MIT SloanSchool of Management. Michael Vitale isdean and director, AGSM, and a formerHarvard Business School professor.

FOOTNOTES1 The notion of moving from a marketplace

to marketspace was popularised by the pioneering work of John Sviokla and JeffRayport in two articles. See J. Rayport and J. Sviokla, ‘Managing the Marketspace’,Harvard Business Review 72, no. 6 (1994), pp. 141—151; and J. Rayport and J. Sviokla,‘Exploiting the Virtual Value Chain’, HarvardBusiness Review 73, no. 6 (1995), pp. 75—85.

2 A. Zieger, ‘High Intere$t Rate’, CIO Magazine,November 1, 1999, pp. 54—62.

3 D. Boidy, ‘Holiday Numbers are In’, InfoWorld,10 January 2000, pp. 1, 10.

4 G. James, ‘Clicks and Mortar’, Upside,November 1999, pp. 209—214.

Most traditional companies willmigrate theirbusiness to

a combination ofclicks and mortar.

16 | AGSM I S S U E 2 • 2 0 0 1

Some say moral values are the tiesthat bind society. Nevertheless,recent examples of some dubiouspractices by Australian business for

short-term financial gain illustrate someindividuals’ beliefs that the term ‘businessethics’ is, perhaps, an oxymoron. At a timewhen there is no shortage of unethicalbusiness practices that put people in harm’sway, it is useful to spell out the meaning ofbusiness ethics. The concept of businessethics is the application of moral philosophyto issues in business. Its goal is to describemorally good behaviour for managers andcorporations. Thus, the field’s domainincludes macro and micro issues becausethe study of moral principles can help usunderstand how conceptions of duty evolvein society and how managers can tangiblyfulfil their responsibilities in line withsocietal expectations.

Most ethical duties are variations on thetheme of ‘do no harm’ and are called‘negative duties’. Other duties are strongerin that they advocate behaviour that assistsothers in achieving their good. These‘positive duties’ manifest themselves inactions typically identified as corporate citizenship, social responsibility or stakeholder engagement. Of course, in thiscontext, the adjectives ‘negative’ and‘positive’ do not carry any evaluative connotations whatsoever. One high-profileapproach to negative and positive duties istriple bottom line accounting, which assessesan organisation’s economic, social and environmental impacts. However, the highlypublicised and idealistic goal of triplebottom-line accounting is far from beingrealised in Australian organisations today.1

WHY DO ORGANISATIONS NEEDAN UNDERSTANDING OF ETHICS?

Regardless of whether organisational con-stituents (including customers, governments,activists, etc.) expect only negative duties oralso positive duties, managers and businessscholars often regard the underlying valueprocesses, such as the implementation ofequal employment opportunity, as costlyexercises. Increasingly, though, the new generation of business leaders is recognisingthat value processes are in fact social processesthrough which the organisation, arguably themost important of all social systems today, isheld together.2There-fore, ethical and/orsocially responsiblebehaviour can be considered an invest-ment in transparency,integrity and trustwhich, in turn, canhelp reduce transac-tion costs within andacross organisations.

On the one hand, any ethical system canbe regarded as self-referential.This means thatethics has a unity “for itself, independentof the cut of observation by others”.3

Whether a manager sees ‘the good’ assuperior pollution abatement, employeedevelopment programs, equal employmentopportunity, respect for all stakeholders,honesty or community engagement, thegood is a compelling duty – in and of itself.Our humanity makes ethical behaviour theonly right choice. Ethics must not be justifiedby something else that is either the result orpsychological motivation of moral behaviour.

This ‘in and of itself’ approach is very

different from the teleological (that is, con-sequentialist) reasoning of utilitarianism, aparadigm on which the business schoolcore disciplines of economics and financerest. Teleological reasoning would say:“Pursue the good as long as it is consistentwith the raison d’être of an economic organi-sation, which is to maximise shareholderwealth.”Typically, this type of thinking leadsto a number of decision-making biases andflaws because it tends to be rooted innormative myopia.4 In so-called “value-inert cultures”,5 economics-based utilitari-anism can become firmly entrenched.

Therefore, we mustbe careful when justi-fying ethical practicesor social responsib-ility with the truism,‘good ethics is goodbusiness’.

Ethical practicesare nowadays oftenjustified with refe-rence to their positive

impact on morale.With this perspective, thephilosophical charge that ethics is merely ameans to some other overarching endbeyond ethics still applies.Whether the goalis economic or humanitarian in nature doesnot fundamentally alter the logic of ethicists’concerns. If teleological justifications were theonly ones available, managers would beencouraged to pursue ethics only when thereis a significantly positive relationship betweenethical practices and that overarching goal.And when you think about it, how oftendoes morality really serve as the glue ofsocial integration? Taking morality seriouslyalso implies the acceptance of its frequently

A case for ethicsIt’s time companies recognised that social and financial performance are not incompatible and that operating ethically can be good for thebottom line. by Marc Orlitzky*

The first step in any implementation effort should be a

responsibility audit.

RESEARCH

www.agsm.edu.au AGSM | 17

divisive consequences (for example, honesty,affirmative action or reverse discrimina-tion).6 Furthermore, if we tried to deduce thegoodness of ethical practices from empiricalobservations of possible consequences, wewould commit what philosopher G.E. Mooretermed the ‘naturalistic fallacy’.7

Quite distinct from the ‘in and of itself’and teleological approaches to ethical and/orsocially responsible behaviour is the socio-logical explanation for the adoption of ethicalpractices. It is based on the sociologicalinsight that without pronouncing and imple-menting a stakeholder rhetoric, a business

may become a pariah, ananomaly, endangering its sociallegitimacy and, thus, its existencein today’s complex and dynamicbusiness environments. These frequently powerful societal andenvironmental forces are calledinstitutional pressures, which canlead to normative commitmentsamong managers.8 Normativecommitments, especially whenthey are based on the need toconform to broader socialmovements and trends, mayremain unexamined in the lightof a company’s particular marketand non-market situation. Ofcourse, sometimes it is unavoid-able to adjust to institutionalnorms if they are in the form ofnational or international regula-tions. In the environmental arena,however, managers have oftenadopted ‘best practice’ behaviouror processes from other countriesor even other industries, withoutthinking deeply enough aboutthe strategic significance of those practices in the context of the company’s particular circumstances.

In a world that has lost itsbelief in an absolute or universalmoral code, societal ethics aretransformed into relativist socialrhetoric and behaviour.Withoutan understanding of how variousstakeholder groups interpretethical obligations (which areoften regarded as social commitments), a company caneasily become trapped in a swirlof self-appointed vigilantes representing utopian socialistrhetoric – from anti-propertyrights to anti-globalisation.9

Activists often use the massmedia in a clever way, and organ-isational reputations stand andfall in the eyes of the media,which often act as the informa-tional intermediaries between

the organisation and its various stakeholdergroups.Therefore, companies need to adopta strategic, media-conscious attitude towardthe management of social issues. A betterunderstanding of the semiotics of moralityis necessary, but not sufficient to stem thegrowing flood of employee and consumer

THE BUSINESS OF ETHICS Buddhist teacher Sogyal Rinpoche with professor Michael Vitale, dean, at the AGSM.

18 | AGSM I S S U E 2 • 2 0 0 1

dissatisfaction with ‘business as usual’.The implementation of good corporate citizenship will become essential to success.

HOW CAN BUSINESS LEADERSAND ORGANISATIONS IMPLEMENTETHICAL AND SOCIALLY RESPONSIBLE BEHAVIOUR?

The short answer is ‘strategically’, payingattention to a company’s unique internaland external relations with all stakeholdergroups. The answer is to act in the non-market domain with the same strategicfervour that is practised in the market realm(thanks to strategic management writerssuch as Michael Porter, Nitin Nohria andmany others).What makes operating in thenon-market realm a bit more difficult

is that behaviourthat does notappear strategictends to be re-warded more. Inthe current social

climate in Western societies, altruism is stillmorally superior to rational self-interest.

If the objective is to act strategically withoutappearing so, then where can managers startto make changes individually? Simply bychanging their mental attitude, as Buddhistmaster and author Sogyal Rinpoche pointedout in his Values-based Leadership presentationat the AGSM earlier in the year. He entreatedbusiness leaders to become “mindful” byovercoming the “jaws of ego”, which hedefined as hope (expectations) and fear.Through meditation, individuals could gain adeeper understanding of the nature of themind and the importance of compassion, hesaid. Buddhists see compassion not only in theservice and for the benefits of others, butalso in the service and for the benefit ofpersonal happiness.10 Probably everyone canagree with the statement by the Dalai Lamathat “the very purpose of our life is to seekhappiness”.11 In the 21st century, peoplewill increasingly expect to practise theirpersonal, often spiritual values in theworkplace. More and more individuals will

want to pursue self-actualisation at andthrough work.12

There are a number of examples thatillustrate organisational implementation ofethics and/or social responsibility. Forexample, under the leadership of its newchairman Bill Ford Jr., Ford Motor Companyhas begun to embed the value of sustain-ability in its operations. The health supple-ments supplier Blackmores has receivedaccolades from Australia’s St James EthicsCentre for its transparent business practicesand exemplary treatment of employees. BHPhas recently changed its ways by committingitself to integrity, open communication and more opportunities for women in topmanagement.

To specify the relationship between

ethical practices (in their strong form) andcorporate financial performance in a studythat would go beyond illustrative cases, Iquantitatively integrated all available studieson corporate social responsibility andfinancial performance in several meta-analyses. My own research on corporatesocial performance was not driven by thedesire to justify corporate social responsi-bility and ethics by bottom-line concerns.Instead, it constituted an effort to investigatemoderators of the relationships and showempirically to what extent large and smallorganisations can reap financial benefitsfrom the fulfilment of companies’ negativeand positive duties. The meta-analytic dataset included over 33,000 observations.Theimplications of my meta-analyses as theyconcern implementation are as follows:13

■ The frequently invoked trade-off betweensocial and financial performance is a falsedichotomy, which is not reflected in empiricaldata. Instead, the evidence points to a positiverelationship between social performance andaccounting rates of return (such as ROA,ROE; weighted true-score correlation ρ of.42) and between social performance andmarket returns (true-score correlation ρ of.15).The overall relationship between socialand financial performance was .36.■ Corporate reputations are a major factor

in positive social-financial performance relationships (high ρ of .73).Therefore, it isessential that a company focus on, andanalyse, three aspects of a social issue: 14

1 The institutionalisation of an issue (thatis, its stage in the issue life cycle);

2 The visibility of ethical and sociallyresponsible behaviour to stakeholders;

3 The corporation’s publicity efforts, whichare tasks typically carried out by commu-nications and public affairs departments.Employees in these areas need trainingnot only in communication, but also insociology, public administration andbusiness ethics. Proper employee selectionprocedures are crucial. Outsourcing thesepublicity efforts to PR firms are counter-productive because it would prevent non-market activities from becoming firmlyembedded in a company’s strategicthinking and culture. In other words, out-sourcing could squander competitiveadvantages. Furthermore, to some extent atleast, all company employees need toconsider themselves ‘boundary spanners’between the organisation and its socialenvironment.

■ In the last 30 years, the financial benefitsfrom good environmental performance werenegligible (ρ of .12). (The benefits may ormay not be higher in the future.) ■ On the one hand, high corporatefinancial performance is caused by a repu-tation for high social performance. On theother hand, high social performance iscaused by high financial performance andthe availability of surplus resources. In otherwords, there is a bidirectional relationship.■ The increasing social influence of mediaand other intermediaries in organisationalnetworks (both in company-consumer andcompany-investor relations) must beacknowledged and used as a strategic lever.■ Organisations of all sizes can financiallybenefit from corporate social performance.15

■ The relatively large cross-study variancesuggests that businesses must analyse theirspecific market and non-market situationbefore embarking on any major ethics orsocial responsibility campaign. Ethics andsocial responsibility should not be basedon whims, impulses or intuitions.■ Market mechanisms may encouragecorporate social performance. Governmentregulation might be impractical, superfluous oreven inefficient because social and financialperformance are self-reinforcing over rela-tively brief time periods (less than a year).However, governments ought to pay close

Buddhists see compassion not only for the benefit of others, but for the benefit

of personal happiness.

www.agsm.edu.au AGSM | 19

attention to poor financial performers (such asorganisations close to bankruptcy). My researchindicates that these organisations face formidable temptations to behave unethically(which is understandable, but not excusable).

The first step in any implementation effortshould be a responsibility audit.16 Visionand mission statements by themselves aremeaningless. Rather, all core businesspractices should be analysed from time totime in order to examine the consistencyof actual behaviour with espoused values.During the last few decades, cynicism aboutorganisational activities has become so wide-spread in society that many organisational

stakeholders tend to discount corporate dis-closures about their responsibility and ethicsand, thus, fail to reward organisations forsuch disclosures (ρ of only .11 betweensocial and financial performance). In thefinal analysis, it may be best to have reliable,independent auditors who understand mea-surement issues in designated functionalareas (such as human resource management,environmental practices, quality systems,community relations, etc.).17 To ascertainthat corporate values are not as easilyabandoned as personal New Year’s resolu-tions, internal and external stakeholder satisfaction must be recorded and analysed.18

Intangible assets such as culture, values andleadership must occasionally be made explicitin tangible measurement and analysis. Myresearch indicates that you are not throwinggood money after bad if you decide to invest in a responsibility audit. An in-depth understanding of the perceptions of allorganisational stakeholders (including thecustomer) is the first step of a proactive,integrated business strategy19 that will allowa company to grow despite increasing non-market challenges. ✪

* Dr Marc Orlitzky is a lecturer in organisational behaviour at the AGSM.

FOOTNOTES1 The term ‘triple bottom line’ has been coined by John Elkington in his book

Cannibals with Forks: The Triple Bottom Line of 21st Century Business,1997. That this concept is not even close to being implemented has beenestablished in David Birch and Jonathan Batten’s study ‘CorporateCitizenship in Australia’, 16 May 2001, presentation at Museum of Sydney;Corporate Citizenship Research Unit, Faculty of Arts, Deakin University.

2 On value processes, see D.L. Swanson, ‘Addressing a theoretical problemby reorienting the corporate social performance model’, pp. 43—64,Academy of Management Review, vol. 20, no. 1, 1995; and W.C. Frederick,Values, Nature, and Culture in the American Corporation, OxfordUniversity Press, New York, 1995. I briefly outline the value processes onpage 9 of my Centre for Corporate Change paper, ‘Corporate social performance: developing effective strategies’, Research Brief RB004,2000. This paper is available from Fran Prior, secretary, Centre forCorporate Change, AGSM, Tel: (02) 9931 9500, Fax: (02) 9663 4672, e-mail: franp@agsm.edu.au.

3 N. Luhmann, Social Systems, (translated by J. Bednarz Jr and D. Baecker),Stanford University Press, Stanford, CA, p. 33, 1995.

4 The term ‘normative myopia’ is discussed in D.L. Swanson, ‘Toward an inte-grative theory of business and society: a research strategy for corporatesocial performance’, pp. 506—521, Academy of Management Review, vol.24, no. 3, 1999. Diane Swanson and I have developed a research programthat will empirically examine the dimensionality of normative myopia andits antecedents and consequences.

5 D.L. Swanson, ‘Toward an integrative theory of business and society: aresearch strategy for corporate social performance’, pp. 513—514,Academy of Management Review, vol. 24, no. 3, 1999.

6 N. Luhmann, Social Systems (translated by J. Bednarz, Jr and D. Baecker),Stanford University Press, Stanford, CA, 1995.

7 G.E. Moore, Principia Ethica, Cambridge, Cambridge University Press, 1978(First edition 1903). See also M. Orlitzky and D. Jacobs, ‘A candid andmodest proposal: the brave new world of objectivism’, pp. 656—658,Academy of Management Review, vol. 23, 1998.

8 A seminal study of institutional forces is: P. Selznick, TVA and the GrassRoots, University of California Press, Berkeley, 1949. Other studies of institutional pressures can be found in: W.R. Scott, Institutions andOrganisations, Sage, Thousand Oaks, CA, 1995; A. J. Hoffman,‘Institutional evolution and change: environmentalism and the USchemical industry’, pp. 351—371, Academy of Management Journal, vol. 42, no. 4, 1999.

9 K.A. Elliott and R.B. Freeman, ‘White hats or Don Quixotes? Human rightsvigilantes in the global economy’, NBER Working Paper 8102, NationalBureau of Economic Research, Cambridge, MA, 2001;http://www.nber.org/papers/w8102; N. Klein, No Logo: No Space, NoChoice, No Jobs, Flamingo, London, 2000.

10 Sogyal Rinpoche introduced this notion of ‘enlightened self-interest’ onvarious occasions in his talk. A more detailed description of this process isgiven in: H.H. the Dalai Lama and H.C. Cutler, The Art of Happiness: A Handbook for Living, Hodder, Rydalmere, NSW, 1998.

11 The Dalai Lama in a presentation in Arizona, cited in: H.H. the Dalai Lamaand H.C. Cutler, The Art of Happiness: A Handbook for Living, p. 13,Hodder, Rydalmere, NSW, 1998.

12 Business scholars think that organisations will not be able to survive inthe new millennium’s competitive marketplace unless they are values-based organisations infused with best practices of spiritual motivation: I. Mitroff and E. A. Denton, A Spiritual Audit of Corporate America: A HardLook at Spirituality, Religion, and Values in the Workplace, Jossey-Bass,San Francisco, CA, 1999. See also R. Lewin, and B. Regine, The Soul atWork, Simon & Schuster, New York, 2000; and R. Barrett, Liberating theCorporate Soul: Building a Visionary Organisation, Butterworth-Heinemann, Boston, 1998.

13 More detailed articles are available: M. Orlitzky, ‘Corporate social perfor-mance: developing effective strategies’, Centre for Corporate Change,AGSM, Sydney: Research Brief RB004, 2000. This paper is available fromFran Prior, secretary, Centre for Corporate Change, AGSM, Tel: (02) 9931 9500, Fax: (02) 9663 4672, e-mail: franp@agsm.edu.au. See also: M. Orlitzky, ‘Does organisational size confound the relationshipbetween corporate social performance and firm financial performance?’,Journal of Business Ethics, in press; ‘Corporate social performance andgeneralisability theory: an outcome-based measure of stakeholder satisfaction and its measurement implications’, annual meeting ofInternational Association for Business & Society (IABS) in Sedona, AZ,March 2001; reprinted in IABS 2001 Proceedings; ‘A meta-analysis of therelationship between corporate social performance and firm financial per-formance’, doctoral dissertation (1998), The University of Iowa, Iowa City,IA, UMI no. AAT 9904332, DAI-A 59/09, p. 3527, March 1999. The following,related studies have been presented at various management conferencesand are under review at business journals: M. Orlitzky, F.L. Schmidt and S. Rynes, ‘A meta-analysis of the relationships between corporate social performance and financial performance’; M. Orlitzky, and J.D. Benjamin,‘Corporate social performance and firm risk: a meta-analytic review’.

14 In one of my AGSM courses, these three aspects of non-market activitiesare discussed further: MNGT4183 Non-market Strategies: Business &Society, next offered in term 3, 2001 (September—November).

15 M. Orlitzky, ‘Does organisational size confound the relationship betweencorporate social performance and firm financial performance?’, Journal of Business Ethics, in press (tentatively scheduled for publication in vol. 33, no. 2).

16 S. Waddock and N. Smith, ‘Corporate responsibility audits: doing well by doinggood’, pp. 75—83, Sloan Management Review, vol. 41, no. 2, Winter 2000.

17 As some operational and reputation problems have illustrated at The BodyShop in the mid-1990s, internal audits may be regarded as less thanhonest by various stakeholders. The AGSM (through the Centre forCorporate Change) and some consultants, too, offer responsibility audits.For further inquiries regarding responsibility audits, please contact DrMarc Orlitzky directly, Tel: (02) 9931 9437, e-mail: marco@agsm.edu.au, or Fran Prior, AGSM, Tel: (02) 9931 9500, Fax: (02) 9663 4672, e-mail: franp@agsm.edu.au.

18 M. Orlitzky, ‘Corporate social performance and generalisability theory: anoutcome-based measure of stakeholder satisfaction and its measurementimplications’, annual meeting of IABS in Sedona, AZ, March 2001.

19 D.P. Baron, Business and its Environment (3rd edition), Prentice Hall,Upper Saddle River, NJ, USA, 2000. The aforementioned AGSM courseNon-market Strategies: Business & Society, presents an introduction to theintegration of market and non-market strategies.

20 | AGSM I S S U E 2 • 2 0 0 1

How can I tell my wifethat I’m learning toconceal information, tobluff, and even to lie?”

asked a student taking my gametheory course a few years ago.Actually, he didn’t need to. Gametheory teaches you that often it’sbetter to lay all your cards on thetable, to reveal all, especially ifin doing so others alter theiractions as their expectations ofyour actions change, because ofyour disclosure.

Game theory provides aframework for analysing strategicinteractions – where what youdo affects your ‘competitor’ andvice versa. It is also excellent foranalysing situations such as employment contracts,supply contracts or franchisingcontracts, where there is ‘asym-metric information’ (where theparties to the contract knowdifferent things relevant to theirperformance). Because of this,lawyers are increasingly usinggame theory to analyse aspects of the law,1

particularly, but not exclusively, contracttheory. A newer area of application ispersonnel economics,2 which uses gametheory frameworks to analyse the employ-ment relationship, including compensationand incentives schemes for CEOs. Theseapplications of game theory can be thoughtof as ‘economising’, of using insights intoincentives and behaviour to design new setsof rules (such as contracts) governing theinteraction of the principal and the agent.

As its name suggests, however, gametheory has for the past 50 years been used toanalyse, to understand and to guide interac-tions between superpowers in the cold war,between contestants in particular games,and between rivals in the market. As the

principles of the discipline have becomemore widely known, executives have increas-ingly used such tools from game theory asgame trees and payoff tables in helping tomake their own strategic decisions.3

Over the past few years I have beenfollowing a line of research which startedwhen a computer program of mine wonthe Massachusetts Institute of TechnologyCompetitive Strategy Tournament in the

1980s. When asked whatmy particular insight hadbeen to allow my programto win, I was not sure howto explain, and continuedto think about game-playing routines. A happycoincidence led me to theemerging field of geneticalgorithms, a form ofmachine (or computer)learning which simulatesDarwinian evolution.Trial solutions are tested,and the best of these are used to develop a new generation of trialsolutions, using tech-niques analogous to sexualreproduction. Eventually,natural selection (or here,artificial selection) resultsin solutions that are pretty good.

With former AGSMprofessor David Midgley(now at INSEAD in Paris)and Lee Cooper (at UCLA),

we applied game theory to therivalry in an historical oligopoly,or market with few sellers.Wechose the market for cans ofground coffee in a mid-westUS city. (Rather like the manlooking for his car keys under astreetlight, we selected this

market because its supermarket scanner datawere readily available.)

We modelled the rivals as stimulus-response players in a repeated game. Thestimulus is what all rivals did last week, andthe response is what each player should dothis week – where each player has somechoice over the price, the advertising, thedisplay and coupons, and other discountsassociated with its brand of coffee.We found

Let the games begin

“

Game theory provides a framework for analysing strategic interactions — where what you do affects your

“competitor” and vice versa.

Robert Marks* applies economics-focused game theory to pricing and contract bargaining.

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T he AGSM first offered the flexibility ofonline executive education five yearsago when it launched the Graduate

Certificate in Change Management (GCCM). Ithas since introduced additional online courses,offered over summer as part of the ExecutiveMBA program.

More recently the AGSM has introducedonline technology as a support to face-to-faceteaching in other programs. This includesonline interaction for full-time MBA programcourses, including ‘Marketing Concepts’ andtwo other courses in the Hong Kong MBAprogram. Executive programs use the sametechnology to give participants more stream-lined access to pre-course information.

“The flexibility of online delivery can helpa lot of people in making a decision to go backinto education,” says Dr Rose Trevelyan,academic director of the GCCM.

“At the time we launched the GCCM,online learning was a very new thing andwe decided to embrace technology and seewhere we were able to go with it,” she says.

GCCM graduate Christopher MacDonaldsays the online delivery let him communicatewith a lot of students when it suited him,whether it was midday or midnight.“I wasn’tconstrained by having to fit in with otherpeople’s preferences and that was critical to myability to manage a study schedule,” he says.

Online benefits include a high volume ofinteraction between students via bulletinboards. MacDonald also points to the advan-tages of online delivery in providing a widerchoice of whom you interact with: “I couldscan through all discussion submissions andread what other groups were talking about,not just my own tutorial group, and participatein those discussions I found interesting.”

Not entirely virtual, the GCCM programincludes: on-site workshops, where studentsmeet one another and the instructors;a face-to-face exam that accounts for 30per cent of GCCM assessment; and teleconferencing sessions.

SPEED AND FLEXIBILITY

The AGSM has recently introduced Web CTas its new platform for online delivery togive students more speed and better accessto related online educational resources.

“An important recent initiative is a trialof online support for Hong Kong MBAprogram students, with a view to usingonline educational technologies to enhancethe aims, outcomes and teaching methods ofthe course,” says Dr Julie Gordon, director ofeducational development.

“Also high on our agenda is educationaldevelopment for our faculty to ensure theSchool facilitates the most effective use and integration of online educational technologies in its teaching strategies.”

E-moderating expert, Dr Gilly Salmonfrom the Open University Business School in the UK, will visit the AGSM to run an interactive workshop on e-moderating and online teaching skills on 18–19 October.

WHAT HAVE WE LEARNT?“The online environment is a fantastic one for sharing experiences, but doesrequire a lot of effort and active use of thetechnology on the part of the instructors,”says Dr Trevelyan.

Thoughtful instructional design is centralto effective delivery, to ensure that technol-ogy is aligned with and enhances the aims,teaching methods and also the outcomesof the course.

“Online instructors also need to bepositive and understanding of difficultieswith technology, and it is important topromote the online forum as a place wherepeople can chat with one another, wherestudents are able to say, ‘Here are mythoughts’,” says Dr Trevelyan.

“Online delivery reinforces the value ofstudents talking to one another.You can seehow much students get from talking to oneanother and exchanging views on theirbusiness experiences and their goals. It istherefore very important in the programdelivery to give people the time and space totalk about the issues they have at work andhow to resolve them.” ✪

by Debra Maynard

Putting technology to workthat relatively simple players (with, forinstance, shorter memories of past weeks, orsmaller sets of actions to choose from)could do as well, even better, in terms ofweekly profit, than the historical players.4

We are continuing this line of research toexamine an additional player, the super-market, which mediates among the brandmanagers in order to improve the store’sprofits, rather than those of the brands.

We can extend this line of research toother repeated interactions, such as biddingin the repeated auctions for electricity thatderegulation in Australia and internation-ally has established. Indeed, the auctionsused to allocate broadcasting spectrum tomedia players and telcos here and in NorthAmerica and Europe were designed bygame theory economists, who have alsoadvised bidders on strategies for thesenovel auctions.5

A further line of research I am pursuingis the significance, in terms of profits gainedor lost, of the adequacy of informationabout rivals’ prices: this can be thought ofas the coarseness or fineness of theperceived partition of market information.At what point, for instance, is the value ofincreased fineness of the perception ofothers’ price shifts offset by the increasedcost of processing this information?6 Thisharks back to the work, more than 50 yearsago, by the late Claude Shannon at thelegendary Bell Labs, and is a further appli-cation of game theory to managerial issues.

Exploration of game theory and its usein learning to behave more effectively instrategic interactions is part of an AGSMexecutive program, ‘Thinking Strategically’,to be held on 27–28 September. ✪

* Robert Marks is associate professor ofeconomics at the AGSM.

FURTHER READING 1 D.G. Baird, R.H. Gertner and R.C. Picker, Game

Theory and the Law, Cambridge, Harvard U.P.,1994.

2 E. Lazear, Personnel Economics, Cambridge,MIT Press, 1995.

3 A. Dixit and B. Nalebuff, Thinking Strategically:the Competitive Edge in Business, Politics, and Everyday Life, New York, Norton 1991.

4 D.F. Midgley, R.E. Marks and L.G. Cooper,‘Breeding competitive strategies’, ManagementScience, 43(3), pp. 257—275, March 1997.

5 R.P. McAfee and J. McMillan, ‘Analyzing theairwaves auction’, Journal of EconomicPerspectives, 10(1), pp. 159—175, 1996.

6 R.E. Marks, ‘Evolved perception and behaviourin oligopolies’, Journal of Economic Dynamics and Control, 22 (8—9), pp. 1209—1233, July 1998.

UPDATE

The AGSM moves forward with IT delivery

T he morning begins with an exercisesession conducted by a personaltrainer. Breakfast follows, then it’sdown to syndicate work tackling the

problems of Amazon.com. The afternoonfocuses on managing people for perfor-mance and competitive advantage, followedby a talk during dinner by Stephen Shedden,CEO of Shopfast.com.au, to discuss Internetretailing. The evening work gives partici-pants an opportunity to compare anAustralian e-tailing experience with an inter-national business case. Just part of a typicalday in the three-week residential schedule ofthe AGSM’s Senior Manager DevelopmentProgram (SMDP).

“It’s an intensive format that meant I couldreally focus on the course and the team awayfrom my family, although it was still difficultto leave my three young children,” says SMDPgraduate Bronwyn Clere.

“I’d encourage other women to thinkabout doing executive training in this way asit doesn’t compromise your family com-mitments except for that intense period,”says Clere.

Program director for customer serviceat investment and financial services group,AXA Australia, Clere says: “One of thestrengths of the program is that participantsare carefully selected to bring different

specialities to the group, and from thatmelting pot comes a wealth of knowledgeacross industries.”

According to Dr Sureka Goringe,Accelerated Development Program (ADP)scholarship winner and now chief operatingofficer of Redfern Polymer Optics: “Supportfor women in senior positions is still hard tocome by in a lot of blue chip industries.”Goringe has a PhD in materials science and began her managerial career in thebuilding industry.

“From a narrow perspective, for tech-nologists I think the scholarships areimportant because there are so few womenin the field. An incentive for women to participate in high-level executive develop-ment has merit because the culture inAustralia is still not greatly supportive ofwomen moving to senior management,”says Goringe.

“I’m using the course content andknowledge a lot now. Redfern PolymerOptics is a high-tech start-up [that developspolymer optics for telecommunicationsapplications].While there is a strong researchand development program, my role as COO focuses on financial and strategic planning.

“A very rewarding and powerful part ofthe program was the learning that camenot just from the course content, but from

my peers in the group,”says Goringe.

Leanne Gordon, humanresources manager forPerth-based AngloGoldAustralasia, says the scholar-ships probably helped the ADP to be a 50–50 split

between men and women, which was notsomething most workplaces had at a seniorexecutive level.

“Over time, it is one of those things thatbecome unnecessary, although for somewomen the scholarships give them moreconfidence in asking for their company’ssupport to participate,” Gordon says.

SHARING KNOWLEDGE“I think the ADP is one of the great executiveprograms with its two residential modulescomplemented by group project work in-between. I now have a better sense of whatgood leadership means, and I am moreconscious of my actions and the effects theyhave. I am much more aware of how I dothings and change my behaviour implicitlyfor the better,” Gordon says.

Lisa Wilson, who was promoted togeneral manager of grower services at theAustralian Wheat Board (AWB) shortly aftercompleting the SMDP, says the programoffered a great opportunity to take time outto consider her life and effectiveness.

“As senior managers, we need time awayfrom work to reflect on where we are goingand why. Sometimes we need to take ourown HR inventory to understand ourselvesbetter and how our peers see us,” she says.

“The AWB is focused on bringing in newideas and helping to broaden seniormanagers’ skills, so there’s a strong com-mitment to encouraging participationamong our senior ranks in this kind ofexecutive development course.”

Wilson has been with the AWB for almost10 years and during that time has seen aslow, yet steady, increase in the number of

Support for women in seniorpositions is still hard to come byin a lot of blue chip industries.

22 | AGSM I S S U E 2 • 2 0 0 1

Scholarships chip away at glass ceiling

FEATURE

Each year the AGSM offers a number of half scholarships to womenseeking premium executive development by joining the School’s intensiveresidential executive programs. Six alumni, all scholarship graduates,discuss their experiences.

www.agsm.edu.au AGSM | 23

women in the agricultural industry. Shecompleted a degree in agricultural sciencebut has worked across disciplines – frompublic affairs and marketing to commoditytrading. “Certainly early on in my career Ifound it hard to get ‘out of the box’.”

BROADER SKILLSWilson took her professional developmentinto her own hands, began broadening herindustry and community network, and lookedto structured programs for self-developmentand to broaden her knowledge and skills.

“The challenge for executives taking theSMDP is to take what they have learnt anduse it to operate more effectively.Any courseneeds to examine good process, to get theparticipants to think about structure andhow they will stay focused on being moreeffective back in the workplace.

“On a personal level, the course openedmy eyes to the usefulness of a business

model and the fact that there is commonal-ity across industries,”Wilson says.

The adage that you get out of executiveeducation what you are prepared to putinto it also rings true for Louise Archer,director of budget and strategy for theCommonwealth Department of Immigrationand Multicultural Affairs in Canberra.

NEW NETWORKSAn ADP graduate,Archer valued the oppor-tunity to network with like-mindedmanagers and to hone some of her ownmanagement ideas.

“I’ve since applied my ADP project work– which was about using modern technol-ogy to create virtual teams – to my ownwork practices, using videoconferencingmuch more instead of face-to-face meetingsand allowing people to work off-site,”says Archer.

“I liked the residential format of theprogram because it is difficult to find thetime to study part-time, and you also reallyget to know people in other organisations

who might have a link to your own,” she says.The intensive residential format of the

ADP also encouraged Hamilton Islanddirector of sales, Michelle Kenna, to par-ticipate: “It was time to stretch myself anddoing full-time or part-time study justwasn’t an option as I travel so much.

“It was a fantastic opportunity – itenhanced my self-confidence being able toshow my board and senior directors that Icould apply for and win a scholarship,”says Kenna.

“Of particular value to me was theincreased financial knowledge I gained andalso the exposure to people and their expe-riences in diverse industries.

“I know that I communicate more fluentlynow with senior managers both in my ownand other industries, and also with my staff.

“In my experience since completing theADP it has made a difference havingenhanced knowledge and skills that arevalued [in the workplace],” says Kenna. ✪

by Debra Maynard and Karen Barrett

As senior managers, we need time away from work to reflect on

where we are going and why.

SCHOLARSHIP WINNERS COO Dr SurekaGoringe (left) and marketing executive Michelle Kenna.

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Strategies for kids

Richard Lord (EMBA ’98) is CEOof Variety the Children’s Charity in

New South Wales, an offshoot of theinternational charity,The Variety Club.

Known as the charity of showbusiness that has its roots in theatrein the US,Variety’s branches acrossAustralia last year raised $4.9million worth of goods and servicesfor children.

“We’ve just introduced a new initiative in New South Wales whichtakes the charity back to its theatreroots with The Preview Club,whereby we organise theatre previews and dress rehearsal fund-raisers,” says Lord.

“We’ve been working with the-atres such as The Stables, Ensembleand Capitol, and with the social clubsof the Australian Taxation Office,Sydney Water, Lane & Lane solicitorsand others, and one of the greatthings about the project apart fromraising money for kids is that it getspeople back to the theatre,” says Lord.

Before joining Variety, Lordworked in the non-governmentsector for 10 years for Centacare, thewelfare arm of the Catholic Church.

“One of the challenges withVariety is to keep its name out therein the public eye and to ensure weare seen as the charity of show busi-ness, says Lord.

“I think the future of the charityis in creating alliances with corpora-

Juggling family and business throughouther studies didn’t stop Judi MacCormick

(EMBA ’99) from producing outstandingacademic work that saw her win fourprizes at the AGSM graduation ceremonyheld at the Clancy Auditorium, Universityof New South Wales, on 25 May 2001.

Judged the most outstanding partici-pant in the EMBA (AGSM AlumniAssociation Prize and CommonwealthBank Prize), Judi also received tribute forhigh-level corporate leadership and man-agement skills (Chairman’s Prize), andfor excelling in Strategic Management 1(Director’s Prize). She was also aSasakawa Leadership Scholarship recipient in the final year of her EMBA.

Judi’s prize tally is even more significant considering that in the lasttwo years of study she opened twoSydney-based Japanese restaurants andbecame a mother for the third time.She says combining study, work andfamily required a clear assessment ofpriorities and a great support network.

“It is important to sort out what youcan, can’t, want and don’t want to do,

24 | AGSM I S S U E 2 • 2 0 0 1

THE AGSM ALUMNI BULLETIN BOARD

alumniat large

Prize-winning strategy

tions.This gives us a broad platformfor raising money, and in return companies add value to their corporatecitizenship and benefit from our contacts in show business.

“The recent Morgan & Banks LawAwards is a good example. It was hostedby Lawyers Weekly, where 35 awards werepresented to the industry in front of 600guests.We ran a silent auction andsecured Stuart Littlemore as the MC andHG Nelson as the entertainer,” says Lord.

A new initiative is ‘From theHeart’,Variety’s speakers’ bureau,which Lord established after beingapproached by companies tosupply celebrities for speaking andentertainment engagements.

Lord also wants more companiesto join Variety’s Sunshine Coachprogram which has donated morethan 600 minibuses to specialschools and other charitable organisations in the past 25 years.

Variety the Children’s Charityhas about 5000 members including

show business celebrities Australia-wide.They help with projects such asThe Bash car rally (started by DickSmith in 1985), the Darling HarbourChristmas party for more than 5000kids, and the biggest Melbourne Cuplunch outside Melbourne, which willbe held at the Regent Hotel this year.

Richard Lord can be contacted onTel: (02) 9819 1002 or e-mail:ceo@varietynsw.com.au.

by Debra Maynard

MBA CLASS OF 2000 REUNIONGet-together at KangarooValley (from left): AndrewMcGregor, David Nelson,Matthew Eggleton, JulieEggleton, Lucas Boardman,Richard Fleming, Pip Moore, Harry Nespolon,Tom Richardson, Wil Errington, Caitlin Errington, Peter Rhode, MelissaDwyer and Matthew Cameron.

Richard Lord with singer Vanessa Amorosi at a Variety Children’s Charity event.

Judi MacCormick celebrates her graduation with husband Bruce Rolph.

www.agsm.edu.au AGSM | 25

Order of Australia

Dr Reuben John van Velsen OAM(DPM 9, 1981) was this year

awarded the Medal of the Order ofAustralia in the general division.

Better known as Rip – a name thatstuck during his early education atHawkesbury Agricultural College inthe 1950s – van Velsen says of hisMedal of the Order of Australia:“It came as quite a shock, but it hasmeant a heck of a lot to my familybecause of what it stands for in acommunity sense.

“From a more personal perspectivemy greatest honour was being selectedthree times by a grower panel to be adirector of the Horticultural Research

and Development Corporation.“When I served on the inaugural

board, the $80,000 fund representedthe levies of just the apple and pearand citrus growers.”

By 1997 the fund had grown to$30 million, all of it grower money,and there were 15 horticultural industries participating.

“One of the most significant benefits of those years of promotingresearch and development has beensubstantial reductions in chemical useto control pests and diseases,” he says.

Reflecting on his memories of theAGSM, van Velsen says: “Probably thegreatest thing I got out of the AGSMwas personal insight; I remember thatpeople certainly told me what mygood and bad points were!”

delegating appropriately to peoplewho have the expertise and motiva-tion to take things on, in everysphere. For example, in my restau-rant business, which employs morethan 20 staff, I always strive torecruit the very best people and toengender a strong sense of owner-ship and belonging.”

Judi, 44, started her EMBA in1993, then moved to Singapore andIndonesia for five years, working forPersona, a US-based global consult-ing firm. She resumed her EMBAstudy when she returned to Australiain 1998, found time to complete theCompany Directors course run bythe Australian Institute of CompanyDirectors, continued her EMBAcoursework, and had her third child,Woody (all in the space of about 18months). Her daughter Sophie, nowsix, was born in Singapore, and her eldest son, Christopher, 21, isstudying at the University of NewSouth Wales.

Judi says an EMBA has providedher with a broader perspective onthe business world, and “it has alsogiven me greater confidence and thelanguage necessary to operate evenmore effectively across and betweenorganisations”.

The AGSM alumni network is ofparticular value: “I have a group ofpeers who I can call up and discussissues with at any time.”

by Mike Walls

Publicsector challenge

A t the peak of a 20-year career in

the public sector,Gillian McFee (EMBA’98) manages a staff ofmore than 1200 and a

budget of $90 million as area directorfor the metro north division of theNew South Wales Department ofCommunity Services.This year she ispart of an organisational changeprogram bringing about major structural change in the department –a separation of disability and

child-family services with the creation of a new department,Aging,Disability and Home Care.

“This move responds to socialchanges taking place as a result of ouraging population and a recognitionthat we need to focus much more onsupporting people with disabilitiesand older people in the community,”says McFee.

One of the difficulties in the com-munity services sector, says McFee, ismanaging a culture that by nature isnot financially focused: “Our bottomline is equally about efficiency andservice effectiveness, and so we haveto be disciplined about defining andmeasuring service outputs, qualityand pricing to meet both quality and

community assurance as well asbudget objectives.

“I think an important issue for ourfuture effectiveness is the need toform strategic alliances with otherorganisations both inside and outsidegovernment.

“In our child and family servicesbusiness, for example, we are often atwhat we call the ‘hard end’ of the childprotection system. I think what weincreasingly need to do as a com-munity is to recognise that we mustwork together, both government, non-government agencies and families, tobetter manage early intervention andprevention strategies,” she says. ✪

by Marta Jary

CommunityServices area director Gillian McFee.

Dr Rip van Velsen (right) is congratulated by the SouthAustralian governor Sir Eric Nealeat the OAM investiture in April.

26 | AGSM I S S U E 2 • 2 0 0 1

AGSM

EMBA

1999Dean Winterton left KPMG at the beginning of the year to commence work at BT FundsManagement in the domesticinstitutional asset managementgroup. Dean reports that despitesome negative media, things aregoing well for the organisationand himself.

Jeremy Prestoe is nowworking as sales and marketingmanager for Creative Packagingand is focused on growing thebusiness and capitalising on off-shore opportunities. Jeremy isfinding it challenging but fruitfulusing his MBA skill-set in chang-ing the strategic direction andmindset of a traditional manufac-turing environment.

Debbie Lowe moved to SanFrancisco in June with currentemployer Barclays GlobalInvestors to take on a new roleoverseeing global HR administra-tion.This involves overseeing theglobal installation of PeopleSoftHR software and developingglobal policies and procedures forthe HR function.

Tim Nelson and NathanSmyth have been appointed to

international roles in Korn/FerryInternational Futurestep.Tim isregional managing director, Asia-Pacific and Nathan is directorAsia-Pacific, strategic marketingand alliances. Since commencingoperations in late 1999, theAustralian operation has grown to55 staff and is now a profitablebusiness.

Ben Taylor has been promotedto marketing manager at GatewayComputers.

Andrew Bunn has been pro-moted to national business devel-opment manager with KumonInstitute of Education. He hasbeen working with Kumon fornearly 11 years since its initiallaunch in Melbourne, and hasenjoyed being part of a growingcompany, both locally and inter-nationally.The position is basedin the Sydney head office.

2000Peter Devine started a new posi-tion on 21 May as vice-president,business development, ProgenIndustries.

Geraldine Mack stopped workshortly after completing herEMBA to have a second baby. (Herfirst, Madeleine, was born in themid-semester break of MMP inApril 1999.) Jeremy Vaz was bornon 5 April 2001 a week late, just

after Geraldine celebrated herbirthday. Geraldine writes,“Jeremy made up for his tardinessby taking only one hour to beborn – it’s a good thing we liveonly five minutes from the hospi-tal!” Geraldine plans to return tothe workforce and make moreuse of her EMBA early in 2002.

Samantha Mark has moved toSingapore and is working withDBS Bank as vice-president,consumer banking, business planning, with a focus on distribution channels. She wouldbe happy to hear from otheralumni working in or visitingSingapore. Her contact details are:samanthamark@dbs.comor Tel: (+65) 878 6557.

Owen Firth reports that thetiming was tight when his sonAngus Peter was born just twoweeks after his final paper wasdue. By all accounts they are nowdoing well. Owen made good useof the EY year as a case study forhis small business – re-brandingand refocusing its strategy andpositioning.The company, CareersAustralia, specialises in financeand accounting employment con-sulting.The business also includesCareers Australia Executive(which Owen says is ideal forpost-MBA career moves). Owensays business is growing rapidly

thanks in no small way to theprinciples and inspiration of the EY.

By the time this goes to printGuy Ferrier will be a proudfather.This takes the baby countto three.

Peter Hildebrandt, as of 1 March his year, is director,contract management, with BoschAutomotive North America following an intra-company promotion from Bosch Australia.This assignment is expected tolast two years. Upon completionPeter intends to return toMelbourne.

GDM

1999Graham Roberts has finished hisMBA at Monash University aftercompleting the GDM at theAGSM. Graham has relocated toQueensland as Coles Super-markets’ state merchandisemanager.

Bob Smillie has been actingCEO since November 2000 at theShire of Plantagenet, Mt Barker inthe heart of Western Australia’sgreat southern wine region. Bobhas been assisting the shirecouncil to recruit a new CEO andto help implement structuralreform.This has included expos-ing the elected members to John

bushtelegraphTHE AGSM ALUMNI BULLETIN BOARD

T he alumni committee election was held recently and there are

a number of changes to the committee’s representation which

I’d like to report. Results were tight and congratulations go to

Stephen Langton (MBA ’96) and Kylie Betts (CMQ ’99/EMBA

2000). Stephen has been re-elected for another two-year term

and Kylie joins the committee as a new member.

Several members of the alumni committee have chosen to

step down. Many thanks to Fiona Mackenzie (CMQ ’98),

Maryanne Maher (MBA ’97), Susan Owens (EMBA ’98),

Bill Palister (DPM ’85),Vicky Papachristos (EMBA ’95) and

Grant Saxon (MBA ’96) for their work and contribution over

the past two years. Special thanks to Bill, whose contribution

goes back much further. He is the only member to have served

continuously since the committee’s inception in 1993, and was

a foundation member.

It was encouraging to receive several committee nominations

this year, and on behalf of the committee I’d like to thank all

nominees and those who voted.

Rob Cartwright (UNSW MBA ’79), group managing director,employee relations,Telstra.

Alumni Committee President’s Report

www.agsm.edu.au AGSM | 27

Carvers’ policy governancemodel. Bob writes, “Yes, and thered wines are fabulous!”

2000Steve Burton is pleased toannounce his marriage to Timwhom he met while holidaying inThailand. Mid last year, Steve wasmade redundant by Telstra aftersome 22 years but is happy toannounce the start-up of his newconsulting company,TigerBusiness Services, which offersbusiness evaluation, improvementand change management imple-mentation services. He also recently acquired the business ofSeal-Jet Queensland, which manu-factures seals for hydraulic,pneumatic and other industrialapplications. Steve expects thatoperating this business will givehim an opportunity to fully usethe tools and skills he acquiredduring his management educa-tion.

Mario Sandoval moved toConnecticut, US, in April to continue work as fuel processortechnologist in a joint venturebetween Shell Hydrogen andInternational Fuel Cells (a supplier of fuel cells to NASA).This follows a six-month stint in Amsterdam. Mario would likesay hello to fellow classmates:Carmella Law, Anna Thomas,Debora Bodger, BernadetteHowlett and Jeff Winslow, aswell as lecturer Marcus Cohen.

MBA

1999Bruce Buchanan and MichaelGassman are both embracingfatherhood. At the time ofwriting, Bruce’s wife was expect-ing a baby in June, while Michaelwas a proud father of Sascha,born on 19 March 2001, weigh-ing 3.8 kg.

2000Ian Mabbutt is now businessprogram manager at AMP Generalafter many years with NRMA.Ian can be contacted atIan_Mabbutt@amp.com.au.

Matthew Leyshon is pleased toreport that his wife, Anna, had ababy girl, Alexandria, on 21February 2001.

UNSW

EMBA

1994Glen Boniface and Kim Boniface(EMBA ’98) are pleased toannounce the birth of their thirddaughter, Juliet. Her older sisters,Jaime 3 and Danielle 2, are besot-ted by her (and her parents thinkshe is pretty special too)!

1995Duncan Hewett has been pro-moted to general manager, LotusDevelopment. He now runs Lotusin Australia and New Zealand (anIBM division). His bosses are inTokyo and Sydney (matrix man-agement is always fun), and hesays he is having a ball with thechallenges of 30 per cent growth.Duncan has recently joined theAGSM advisory board.

Chris Cook, now a partnerwith PricewaterhouseCoopers, hasrelocated to London with his wifeand two children for a two-yearassignment. Chris is responsibleworldwide for strategic change inthe business process outsourcingdivision of PwC – a market leaderin outsourcing the back-officefunctions of large corporations.While the proximity to Europemakes for convenient holidays inTuscany and Provence, Chris alsorates highly “the opportunity toexperience various European business cultures which havedeveloped in the context ofEuropean economic and socialhistory [for added] dimensions tothe US business school models.”Chris hopes to return to Sydney in 2003.

1996Carol Taylor has relocated fromDeutsche Bank’s New York officeto work as a director in theirLondon-based venture capitaldivision.

1997Cliff Kaye has been appointedchief financial officer at TacticalGlobal Management (TGM), aspecialist tactical asset allocationglobal funds manager inBrisbane. Cliff’s global responsi-bilities include finance, informa-tion technology, human

resources, legal and compliance,hence much travel to the north-ern hemisphere in the future!

Noel Thomas moved with hisfamily and company, ING Group,to Europe more than a year ago.He is now living in Amsterdam,The Netherlands.

John Collier and wife Kirstencelebrated the birth of their firstchild, Charlotte, in April. Johnsays he is now resigned to notgetting a full night’s sleep for atleast 10 years.

Ann Austin has been in a newrole at Bovis Lend Lease Asia-Pacific since December 2000. Sheis “back in the world of peopleissues” working as generalmanager, organisational develop-ment, focusing on the develop-ment of current and futureleaders and employer of choiceagendas (and loving it).

Julie Mullin, who has beenconsulting for the last few years,has gone to London for a three-month IT project managementassignment.

Simon Hickey has moved toNew York as CFO Americas forBovis Lend Lease, a global con-struction company. Simon’sresponsibilities include managingmany of the growth initiatives ofthe company as well as being apartner to the CEO. Simon, wifeJane and daughter Ella are alsoexpecting a new addition to thefamily in September. For thosewho have lost contact with Simonhis e-mail address is:simon.hickey@bovislendlease.com.

1998Catherine Rusby has relocated toWellington, New Zealand as partof a 2–3 year secondment withNRMA Insurance, which recentlypurchased State Insurance in NewZealand. Her new role is generalmanager, strategy and technology.

Jason Gray, after relocatingback to Toronto Canada in 1999,is now on the move to Vancouverto take on a new role responsiblefor optical sales in westernCanada for Cisco Canada.

John Wright has joined Sigma-Aldrich as managing director forAustralia and New Zealand.Sigma-Aldrich is a leading lifescience and high technologyenterprise representing more than80,000 products in 33 countries.

John previously worked as marketing manager at RocheDiagnostics.

Chris Bastianpillai has relocat-ed (with his job) to sunny south-ern California from Sydney. He isnow the director of quality forAlcatel’s e-business networkingdivision based in Calabasas.

Ken Rosebery has beenappointed managing director ofAustralian Geographic, and isbased in Sydney. AustralianGeographic publishes a populargeographic journal on Australiaand operates a national chain ofretail gift shops.

Robert Walker has been pro-moted to general manager(Europe) for Sheridan, requiringa move (with his wife anddaughter) to London. He says hewill continue to travel to France,Spain, the Middle East and other“awful” places.

After many years at the AGSM,Pamela Brass has started EllisRelocation Services (www.ellisrelocations.com.au) –a relocation advice and supportservice for people moving toSydney and other Australian cities.Ellis Relocation Services managesarrangements for accommoda-tion, schools, city orientation,community integration “and themyriad of details involved in relocating”. Contact Pamela onTel: 0411 094 989 or e-mail:pbrass@ellisrelocations.com.au.

Gillian McFee is now areadirector for the metro north areaof the New South WalesDepartment of CommunityServices.This position involvesmanagement of more than 1200staff and a budget of $90 million.Gillian says a recent challenge hasbeen managing the introduction ofshared business services between anumber of community servicesagencies. Contact Gillian atgillian.mcfee@community.nsw.gov.au.

GDM

1994Laurie Cunningham has movedinto a new role at IBM GlobalServices Australia as the intellec-tual property sourcing executivefor Australia and New Zealand,with responsibility for imple-menting the program to identify,

28 | AGSM I S S U E 2 • 2 0 0 1

protect and develop IBM GSA’sintellectual property assets.

1995After completing his GDM, IanMacDonald joined IBM, first asmanager, organisation develop-ment, Australia and New Zealand,then (more recently) as the exec-utive responsible for managementand executive development inAsia-Pacific. As he now has a panAsian-Australian team, he hasembarked on a new course oflearning on remote, cross-culturalmanagement. He is also enjoyingbeing part of IBM’s global leader-ship team for management devel-opment, developing andimplementing programs whichblend the latest in e-learning withface-to-face components.

1996Steve Bowler is working at estab-lishing a new business in WesternAustralia (soon to go national)called Churchill’s ExecutiveCareer Agents, a recruitmentagency focusing on the seniorexecutive. Steve’s e-mail is:sbowler@pvspeoplesolutions.com.au.

GMQ

1992Mike Selbie and wife Lisa areliving in Baltimore, US, with theirsons, Robert and Andrew. Mike isrunning a business unit ofUSFilter in Baltimore, whichcomprises water and waste-waterequipment including a tech-nology called Memcor, which heworked on while living inSydney. Mike is enjoying the workof commercialising the productin the US.

1994Rita Agati is now generalmanager, human resources,personal financial services, ANZ.

MBA

1984David Murdoch is living on thebeautiful New South Walescentral coast with his wife Laurel(married 24 years) and threeboys Conrad, Jethro and Hamish.David is owner and managingdirector of IntelEco, a manufac-turer of commercial water

distillation equipment. Its systemscan be found throughoutAustralia, Antarctica and in abouta dozen export markets.Applications of the equipmentrange from its use by someCanberra dentists to preventscale-formation in their auto-claves, to reducing the volume oflaboratory wastes shipped fromCasey Base in Antarctica to Hobartfor disposal. David is keen to hearfrom any of his classmates andmay be contacted at:inteleco@h2.au.com.

1986Stewart Wallace has been withthe City of Sydney for the pastfew years. He is currentlyworking on an IT strategy, con-centrating on online services andthe City’s digital capability andglobal presence.

1987Tim Wawn is managing directorand CEO of Gradipore, a publiclylisted biotechnology company,fully Australian owned and currently expanding its US subsidiary in New York.

Manuel Panagiotopoulos is,among many other activities,completing a PhD in economicsat the University of Technology,Sydney (UTS).

Jerry Liossatos divides his timebetween his home on an idyllicGreek island with his wife, musi-cian Elpis, and their four youngsons (including twins), andrunning his businesses in Europeand Sydney.

Loretta O’Donnell is trying tofocus on her PhD studies and istaking a short break from herroles as freelance consultant andadjunct faculty in the AGSM’sEMBA program, where she hasbeen a part-time instructor andcourse writer for nearly 10 years.Loretta and Tim Wawn have beenmarried for 13 years and havethree girls, aged 10, eight and six.

Stephen Ell is Asia-Pacificmanaging director for Serco, aninternational outsourcing firm.

Frank Theophile is theresearch and development guruwithin the Asia-Pacific area forSerco, and is completing his PhDon theories of outsourcing. Heand his wife Jane, a veterinarianand ecologist, have recently had a

baby sister for their young son.Pamela Finberg is living in

Milwaukee with husband BillRhead and four-year-old son Jack.In addition to travelling for fourmonths a year, raising Jack andlearning French, Pamela isinvolved with Mothers & More,an advocacy and support organi-sation for sequencing women – a trendy term for mothers whohave altered their career paths inorder to care for their children athome. Pamela welcomes anyonegame enough to brave theMidwest weather to come andvisit. Contact Pamela at:pfinberg@prodigy.net.

1988Stuart Turner has moved back toHong Kong to set up an equityfunds management business forMacquarie Bank. Stuart writesthat as the bank already has a significant presence in HongKong he is able to leverage off existing infrastructure, but nevertheless is finding it quite a challenge.

Greg Barnes has spent threeyears in Singapore as a regionalportfolio manager with JPMorgan Investment Management.He is now moving to London in a new role with Morgan as portfolio manager in the globalfund management team. Gregwrites that Singapore has been agreat base for him to get to knowAsia and he and his family arelooking forward to exploringEurope from their home in theUK. Greg writes, “There are nonew additions to the family, andGeorgia, twins Kate and Hugo,and wife Trish are now oldenough to associate London witha white Christmas but notcivilised enough yet for tea withthe Queen.”Their new e-mailaddress is:barnesgt@yahoo.co.uk.

1989Michael Lindsay, his wife Janeand daughter Kate (now six yearsold), celebrated a new addition to the family, son James, lastChristmas. Michael writes:“James was born in Korea on 16 July 2000, and the wholefamily travelled to Seoul onChristmas day to collect him.”

David Ireland has set up hisown business and software con-sultancy specialising in businesssystems and databases.

Jeremy Bean spent a few yearstrying to survive on the fringes ofthe film industry, during whichtime he was executive producerof a feature film called Lilian’s Story(released 1996). In the same yearhe joined the Australian FilmCommission as a project managerand by 1999 was director of filmdevelopment. He is now the AFC’sdirector of policy, research andinformation.The big news,however, is that in June hebecame a father for the first time.

David Surmon is COO andgeneral counsel, Lines OverseasManagement, a private offshorewealth management businessbased in Bermuda. David reportsthat he has just celebrated his10th wedding anniversary, andhis son is now seven years old,and his daughter is five. Davidwrites: “I am now 98 per centself-actualised but still missinghumility and visits to Bermudafrom 1990 alumni (BYO clubs)”.

1990Peter Ragg and Susan Currie havehad a second baby. Lucy, a sisterto Anna, was born in Adelaide on5 December 2000.The family arewell and enjoying the good life inSouth Australia.

1992Siobhan Murphy is now workingas marketing and sales managerfor atmedica, the electronic publishing division of VivendiUniversal Publishing. Her responsibilities include the marketing of www.myDr.com.au,a new consumer health Web site.Her new e-mail is:siobhanf_Murphy@hotmail.com.

Padam Chirmuley has moved,with wife Catherine and babyMaxim, to Melbourne to take upa new position as a director inWatermark Search’s Melbourneoffice. He is looking forward tocatching up with fellow MBAsand can be contacted on Tel: 0408 427 408.

“Subject: Call me Grandad!”was the message sent out byDavid Day who was one of thefirst people over 30 years of ageaccepted at McKinsey when he

www.agsm.edu.au AGSM | 29

graduated. He is now an independent consultant and in apersonal partnership with JaneTreloar (MBA ’91). He reportshis grandad status is now bona fide:“I’m delighted to announce thearrival of my grandson RobinJnana Torres Day. Robin is the sonof my daughter Hannah and herhusband, Sergio Torres, and hewas born in La Paz, Bolivia, lastOctober. Contact David at:dhday@attglobal.net.

David Adiesehan had beenworking with MFS asset management, and has now joinedRothschilds. Contact David on Tel: (w) 9323 2327, mobile:0419 604 969.

Kieran Duck joined The BostonConsulting Group from CSCIndex last year. More recently, heand his wife Sharene celebratedthe first birthdays of their twingirls, Claire and Beth.

Chris Eyles, on route backfrom a three-year consulting stintin South Africa, has detoured toLondon where he is now CEO ofa listed ‘accelerator’ focused onearly-stage mobile commercecompanies. Chris reports that hehas married his long-sufferingSydney partner DonnaMacmillan.They had their firstbaby, Natashja Lee, in Sydney on23 April 2001. Chris and Donnaplan to return to Sydney this yearand look forward to catching upwith everyone.

James Fulford says he is enjoy-ing work in the world of e-com-merce as new business director atHemscott.net, an online financialservices company. Previously,James was manager of a healthholiday farm in England.

Michael Johnson is pleased toannounce his marriage to SheilaRoyles.They said it would neverhappen, but after a lengthycourtship the two were marriedin Sydney on 21 April 2001, witha blessing service in Sheila’sfamily village in England the following week. After the demiseof Web consulting firm,marchFIRST, Michael has joinedwith David Hardy (MBA ’89), tocreate Johnson Hardy & Company,a strategy consulting firm.

Adrian Cox should be nursinga third child by the time this goesto print. Adrian writes, “If thisone is like his or her brothers

(and dare I say, my tax returns) itwill arrive a few days late afterconsiderable anguish and labour.If we have a third boy it would betempting to call him Basil, or BASfor short, in honour of the ATO.”

Chris Callen married long-time girlfriend, Cheryl, in earlyMay.They had a five-week honey-moon in Europe arriving homein time for Chris’ 40th birthday.

1993Carl Nelson has started workwith IBM GSA in Sydney asrelease manager and is currentlylocated at Westpac.

Anthony Ho has worked forFidelity Investments (the world’slargest independent fund man-agement organisation with morethan US$1 trillion under manage-ment) since graduating in 1993.He recently returned to HongKong from Fidelity’s UK officeand was promoted in January tohead of research, Asia-Pacific(excluding Japan).

1995Michael Lee married his long-time partner Mimi last Novemberand they enjoyed a “nice longholiday in Europe”.They will bemoving into their new home inWollstonecraft, Sydney once renovations are completed. As forwork, Michael reports that he’sstill a consultant, and after fiveyears at A.T. Kearney has finallybeen promoted to principal.

Libby Roy has been workingsince last October at AmericanExpress as vice-president, head ofcorporate services, e-commerce,Japan, Asia-Pacific and Australia.

USYD

MBA

1983John Evans was appointedadjunct associate professor in theeconomics and commerce facultyat the University of New SouthWales earlier this year.

1989Michael Larkin who has been akeen photographer over the past10 years, has designed, authoredand launched his own landscapeand wilderness photography Website: www.cloudmaker.com.

Wilson Cheung reports that asa result of a merger, he is nowworking as director, Cap GeminiErnst & Young.

1991Geoffrey Heber has joinedCrawford Capital, a US-basedventure capital firm, as a partner.Crawford Capital invests inbiotechnology and medical tech-nology companies at the start-upand expansion phases. Furtherdetails can be found at:www.crawfordcapital.com.

1992In 1995 Simon Maher relocatedto Melbourne as general manager,energy trading for CitiPower, oneof the newly privatised electricitydistribution companies. He subsequently ran the combinedenergy trading and energy retailing businesses before accepting the appointment ofchief executive of SouthernHydro, a 500MW peaking hydrocompany with facilities throughout Victoria.

Reflecting on his career, Mahersays: “The last five years haveseen momentous changes in theenergy market and it has beenvery exciting writing the marketrules and then running one ofthe power generation businesses.I have been very fortunate to havecompleted my education at atime when new market ideaschallenged the entrenched ortho-doxy of the power industry. Rightnow I am very happy with theprogress Southern Hydro hasmade in developing a sophis-ticated energy trading group and progressing some large scale hydro plant expansions.”

1993Brent Jackson has left the role ofdirector of development atANZ.com and is now CEO of themoneyshop.com.au which isopening a store on the corner ofWalker Street and Pacific Highwayin North Sydney. He would loveany of the old Sydney Universitycrew to drop in for a latté.

1994Robert Thomson recently movedfrom Brambles to 3PL firm,TDGLogistics, where he is responsible

for corporate development. Hesays he is still happily based inSydney.

1995Soon Teik Oon is currently the principal consultant of JOST Management Network.He can be contacted at:soonteik@jostnetwork.comor Tel: (+60 19) 478 0085.

1998Christina MacHatch and JustinGrogan were married on 26August 2000 and their first babywas born in early 2001.

Amitabh Shukla has been promoted to vice-president, AsiaTreasury-ALM, Lehman BrothersJapan.

1999Dean Stocker has joined Canon as e-business manager, CanonAustralia. He was previously with Telstra as project director,B2B information management initiative.

Frank Wu left his job inSydney in April to work inShanghai as vice-president of aChinese funds management firm.Frank may be contacted at:frankjwu@yahoo.com.

Sharon Tock was promoted inJanuary to vice-president, CFOprofessional practices at JPMorgan Chase. She is due to bemarried in July.

MTM

1997John King is now an adjunct staff member of the Institute of Transport Studies (Universityof Sydney). As well as continuing his business in aviation and tourism policy andstrategy, John currently has projects running in Georgia (for-merly USSR), China and Samoa.A project is due to commence inTonga, as well as a regionalproject covering the Tumen River(Eastern Russia, North EasternChina, Eastern Mongolia). He isauthor of a published report forPacific Asia Travel Associationentitled, ‘Contemporary Aviation:Issues in Regulation & Practicefor the Tourism Sector’. ✪

30 | AGSM I S S U E 2 • 2 0 0 1

publications &papersPUBLISHED WORK AND RESEARCH PRESENTATIONS

BOOKS

Professor Lex Donaldson, TheContingency Theory of Organisations,Sage Publications, 2001.

Professor Grahame Dowling,Creating Corporate Reputations:Identity, Image, and Performance,Oxford University Press, 2001.

Professor Michael Vitale(co-authored with P.Weill),Place to Space, Harvard BusinessSchool Press, 2001.

Dr Robert Westwood(co-edited with S. Linstead),Language and Organisation, Sage,London, 2001.

BOOK CHAPTERS

Associate professor RobertMarks (co-authored with X.Kong and G.H.Wan),‘Productivity performance ofChinese state-owned enter-prises in the early 1990s – astochastic production frontierand Malmquist productivityindex analysis’ in P.J. Lloydand X.G. Zhang (eds), China inthe Global Economy, EdwardElgar, London, pp. 65–85,2000.

Dr Robert Westwood,‘Appropriating the “other” inthe discourses of comparativemanagement and organisationtheory’; and with S. Linstead,‘Meaning beyond language:monstrous openings’, and‘Language/organisation:organisation/language’ in R.I.Westwood and S. Linstead(eds), Language and Organisation,Sage, London, 2001.

Professor Robert Wood(co-authored with J. George-Falvy and S. Debowski),‘Motivation and informationsearch on complex tasks’ inM. Erez, U. Klienbeck and

H.Thierry (eds), in WorkMotivation in the Context of a Globalising Economy, N.J.Hillsdale, Lawrence ErlbaumAssociates, 2001.

AWARDS

PhD candidate Mike Higgs(adjunct faculty), professorRobert Wood and C.Tabernero, ‘Individual differ-ences in implicit theories andstereotyping behaviour inorganisations’, selected as oneof the best five papers at the4th Australian Industrial andOrganisational PsychologyConference, June 2001.

JOURNALPUBLICATIONS

Professor Chris Adam (withG. Mujtaba Mian), ‘Volatilitydynamics in high frequencyfinancial data: an empiricalinvestigation of the Australianequity returns’ in AppliedFinancial Economics, vol. 11,pp. 341–352, 2001.

Professor Edward Andersonand M.C. Ferris, ‘A directsearch algorithm for optimi-sation with noisy functionevaluations’ in SIAM Journal ofOptimisation, vol. 11, pp.837–857, 2001; co-authoredwith S.P. Fekete, ‘Two-dimen-sional rendezvous search’ inOperations Research, vol. 49,pp. 107–118, 2001; and co-authored with M.A. Gobernaand M.A. Lopez, ‘Simplex-liketrajectories on quasi-polyhe-dral convex sets’ in Mathematicsof Operations Research, vol. 26,pp. 147–162, 2001.

Professor Steve Frenkel,‘Globalisation, athleticfootwear commodity chainsand employment relations in

southern China’ in OrganisationStudies, vol. 22 (4), 2001.

Dr Marc Orlitzky and S.L.Rynes, ‘When employeesbecome owners: can employee loyalty be bought?’in D. Rousseau and C. Cooper(eds), Trends in OrganisationalBehaviour, 8, pp. 91–114, 2001;and co-authored with R.Y.Hirokawa, ‘To err is human,to correct for it divine: ameta-analysis of researchtesting the functional theoryof group decision-makingeffectiveness’ in Small GroupResearch, vol. 32, no. 3,pp. 313–341, 2001.

Professor John Roberts, ‘Theintersection of marketingmodelling and practice’ inInternational Journal of Research in Marketing, vol. 17, pp.127–134, 2000.

Dr Baljit Sidhu and R.Moroney, ‘The reformed “true and fair” test: how oftendoes it trigger additional disclosure?’ in AccountingResearch Journal, vol. 14,no. 1, pp. 6–16, 2001.

Dr Rose Trevelyan, ‘Theparadox of autonomy’ inHuman Relations, vol 54, no. 4,pp. 495–525, April 2001.

Dr Robert Westwood, P.Sparrow and S.M. Leung,‘Challenges to the psycho-logical contract in HongKong’ in International Journal ofHuman Resources Management, 12(4), pp. 621–651, 2001.

Associate professor SharonParker, S.J. Nadin and P.E.Waterson, ‘Participation in jobredesign: an evaluation of theuse of a socio-technical tooland its impact’ in Human Factorsand Ergonomics in Manufacturing,

vol. 11, no. 1, pp. 53–69,2001; and co-authored withC. Axtell and N. A.Turner,‘Designing a safer workplace:importance of job autonomy,communication quality, andsupportive supervisors’ inJournal of Occupational HealthPsychology, July 2001.

OTHER PUBLICATIONS

Professor Steve Frenkel,‘Globalisation and employ-ment relation systems: trendsand strategies for the future’;and co-authored with DrJames Carlopio, ‘Managingorganisational change’,International LabourOrganisation, Geneva, 2001.

Associate professor SharonParker, ‘Designing and devel-oping more effective organisa-tions,’ Bureau for Employers’Activities, International LabourOffice, Geneva 2001.

CONFERENCE PRESENTATIONS

Dr Paul Atkins (co-authoredwith professor Robert Woodand Dr Barry Newell),‘Developing a measure ofsystem dynamics understand-ing’ at the 19th InternationalSystem Dynamics SocietyConference, Atlanta GA,July 2001.

PhD candidate Julie Cogin(adjunct faculty), ‘The indi-rect costs of discriminationand harassment to organisations’ at theDiscrimination and SexualHarassment seminar,Sydney, February 2001.

Dr Anne Lytle and C. Rivers,‘Conflict management inAustralia: an exploratorystudy’; ‘An exploratory study

www.agsm.edu.au AGSM | 31

of mental models of negotia-tion held by practitioners:what do they look like?’; andwith A.S. Rosette, J.M. Brettand Z. Barsness, ‘The influ-ence of e-mail on Hong Kongand US intra-cultural negoti-ations’ at the InternationalAssociation for ConflictManagement AnnualMeeting, Paris, France, June2001.

Dr Marc Orlitzky, ‘Does sizeconfound the relationshipbetween corporate social performance and firm financial performance?’,Accountability Interest Group(AIG) Symposium of theAccounting Association ofAustralia and New Zealand,Auckland, New Zealand, June2001; ‘Corporate social per-formance and generalisabilitytheory: an outcome-basedmeasure of stakeholder satis-faction and its measurementimplications’, and with D.L.Swanson, ‘The cult of homo-geneity and assimilation: anethical deconstruction of theHRM fit literature’ and ‘How films can contribute tostudent learning in businessand society courses’, at theannual meeting of theInternational Association forBusiness & Society (IABS),Sedona, March 2001.

Associate professor SharonParker, ‘Work design:changes and challenges’,invited speaker, special cente-nary session on work design,British Psychological Societyannual conference, Glasgow,UK, April 2001; ‘Proactivityand adaptability at work’,Fourth Industrial andOrganisational PsychologyConference, AustralianPsychological Society, Sydney,June 2001; and with WendyGrusin (PhD candidate),‘Managing cognition: the forgotten variable in strategyformulation’, Fourth

Industrial and OrganisationalPsychology Conference,Australian PsychologicalSociety, Sydney, June 2001.

Professor Robert Wood and C.Tabernero, ‘The impactof personality compositionon group processes acrossgroup decision making tasks’at the Tenth EuropeanCongress on Work andOrganisational Psychology,Prague, May 2001.

CONFERENCE PROCEEDINGS

PhD candidate Mike Higgs(adjunct faculty), professorRobert Wood and C.Tabernero, ‘Individual differ-ences in implicit theories andstereotyping behaviour inorganisations’ in Proceedings ofthe 4th Australian Industrialand OrganisationalPsychology Conference,Australian PsychologySociety, June 2001.

OTHER PRESENTATIONS

Associate Professor SharonParker, ‘Maximising employ-ee creativity and proactivityin the modern organisation’,Centre for Corporate ChangeResearch Series Seminar, 10July 2001.

Professor Robert Wood,‘Implicit theories of personality’, AndersonGraduate School of Business,UCLA, Los Angeles, February2001; ‘Group and individualimpacts of implicit theories’,Graduate School of Business,University of Washington,Seattle, March 2001;and ‘Task and individual predictors of exploration and learning on dynamicdecision tasks’, presentationto Cognitive Science group, PsychologyDepartment, NorthwesternUniversity, Evanston,May 2001. ✪

Finance and accounting

The AGSM’s annualAccounting and Finance

Research Camp, held on15—16 June, featured seveninvited papers on a broadrange of subjects — from avaluation-based approachto selecting marketplacepeers and an analysis ofinitial public offeringbehaviour, to a study ofcapital structure and a per-spective of the Australianstock exchange as monitor.

The papers were presented by academicsfrom Australia and the US,including a paper by theAGSM’s Chris Kirby entitled, ‘The economicvalue of volatility timingusing “realised” volatility’.In this paper, which is

co-authored with JeffFleming and BarbaraOstdiek from JonesGraduate School, RiceUniversity, Dr Kirby provides evidence thatinvestors can enhance thelong-term performance oftheir portfolios by exploit-ing new statistical tech-niques for forecastingshort-term changes in risk.These techniques areapplied within the contextof mean-variance analysis,a cornerstone of thetheory and practice ofmodern investments.

For a closer look at theideas and research presented at the camp, fulltext documents (in PDFformat) are available atthe AGSM Web site (search under research — accounting and finance).

Strategy societyappoints AGSM professor

The AGSM’s professorJeremy Davis (right)

has re-joined the board ofthe Strategy ManagementSociety, this time as president-elect.

“I was on the board ofdirectors from 1987 to1996 and was asked to re-join in October last year.The five executive posi-tions are rotational whichmeans I will most likelybecome president inOctober 2002,” says pro-fessor Davis.

The SMS was first established in the US in1979 to bring together academics, businesspeople and consultantsinterested in the field ofstrategy. It has more than2000 members worldwide

and publishes one of theworld’s leading academicjournals on strategy, theStrategic ManagementJournal.

The annual conference of the SMS (which isusually attended by morethan 600 academics and practitioners) will be heldthis year in San Francisco in October.

✪ Faculty News

APPOINTMENTS

Dr Jane Craig has been appointed executive officer.Jane had previously been a lecturer in strategic managementat the AGSM.

Robyn De Szoeke, has joinedthe AGSM as director, businessprocess review. Robyn was previously with Phillips Foxlawyers in a national businessimprovement role. She is on theLaw Society of New South Walesbest practice board and on theexecutive of the general practicesection of the Law Council ofAustralia.To fully embrace theAGSM culture, Robyn hasenrolled in the EMBA program!

Delene Evans is the AGSM’snew director of marketing.Delene was previously generalmanager of marketing at bothMayne Nickless and PrudentialCorporation Australia, and wasalso responsible for managingdomestic marketing at theAustralian Meat and LivestockCorporation. Delene brings personal knowledge of the AGSM to the job as a student of the EMBA program.

Emeritus professor MurrayKemp joins the AGSM from earlyJuly as visiting professor in eco-nomics for three years. ProfessorKemp has been a faculty memberand professor of economics withthe UNSW faculty of commercesince the early 1960s. He is a distinguished researcher in thefields of international trade andeconomics, and has been a visit-ing research professor at UNSWfor the past 10 years.

Carol McCormack has beenappointed director of development. She was previouslywith AFS (American FieldService) intercultural programs,where she built alliances generating several million dollarsin funds a year. Carol has a back-ground in secondary education,

teacher professional developmentand sales and marketing.

Tim Sprague, director, humanresources, joined the AGSM inApril. He has spent the past 11years in various human resourcesmanagement roles in the financeindustry, at St George Bank, AGCand most recently Westpac.Timhas a Master of Commerce in HRstudies from UNSW and is a registered psychologist.

Dr John Toohey has taken overfrom Jeff Laurie as director,EMBA program, while MariaSpies is on maternity leave. Johnhas taken leave from his positionas director of graduate programsin business and technology andadjunct professor in the facultyof engineering at UNSW. John is well known to the school andhas worked with many membersof the AGSM.

Sharyn Roberts is associatedirector, MBA program. Sharyncomes to the AGSM with a strongbackground in university administration with particularexpertise in admissions,international education andexternal relations. She held seniormanagement positions at boththe University of Sydney and theUniversity of Western Sydney.

Mellissa Ellsmore has joinedthe AGSM as marketing manager,executive education. Her most

recent role was marketingmanager with the IIR group of companies.

Brad McCarroll has beenappointed acting operationsmanager, MBA program,while Jo Kilmartin is on maternity leave.

Sandra Hoey has been appointed HR coordinator.

Mandy Simmons, who hasbeen a key member of the EMBA team for three years, has beenpromoted to client servicesmanager, EMBA program.

Antoinette Wood has taken onthe role of project manager ineducational development. Sheworks with Dr Julie Gordon ineducational technology and provision of staff developmentfor faculty.

Mary Wheeler joinedManagement Projects forBusiness as project coordinatorearlier in the year. She has morethan 20 years’ administrativeexperience in finance and education.

Diana Ramsay has been appointed secretarial and officeservices coordinator.

Adrian Hannelly has joinedthe AGSM as a database programmer.

The AGSM library has welcomed technician Nicole Morgan.

FAREWELLS

Professor Greg Clinch hasresigned, effective July, to accepta position at Melbourne Business School. Greg has madesignificant contributions to bothresearch and teaching during his 10 years at the AGSM. Gregand his family will be staying inSydney through to the end of2002, and Greg has accepted theoffer of an office at the AGSM for that period.

Associate professor Susan Ellisleaves the AGSM at the end ofAugust to take up a position asprofessorial fellow at Mount ElizaBusiness School. She will be based in Sydney but will haveteaching commitments inMelbourne and Beijing. Susanjoined the University of Sydney’sGraduate School of Business in1994 and was appointed associ-ate professor in 1997. She taughtoutstandingly on the GSB’s MBAand executive education programs and continued thoseroles for the AGSM following themerger with the GSB in 1999.

Dr Katrina Ellis (senior lectur-er in accounting and finance)will leave the AGSM after Term 2 to take up a position at theUniversity of California. Katrinajoined the AGSM in 2000 aftercompleting her PhD at Cornell.She has been invited to return to the AGSM during NorthAmerican summers.

Vicki Kaplan (marketingmanager, MBA programs) hasnot only left the AGSM (afternearly three years) but leavesAustralia, too, to live in Dublin,Ireland.

The marketing team alsofarewelled events and communications administrator,Hayley Newlands, who returned to New Zealand.

The EMBA team has farewelledCarly Llorente, who worked inclient services. ✪

32 | AGSM I S S U E 2 • 2 0 0 1

peopleAGSM APPOINTMENTS AND FAREWELLS

ASIA’S LEADING BUSINESS SCHOOL*

Australian Graduate School of ManagementUNSW Sydney NSW 2052 Australia

www.agsm.edu.au