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Review highlights of recent news coverage of Georgia Tech College of Management's people and programs.
September-November 2006
• Pricey preposition: One small word can make a big difference for companies determining their operating cash flow, according to research by accounting professors Charles Mulford and Eugene Comiskey that was covered by The Wall Street Journal. The distinction between return "on" investment and return "of" investment has led some companies to misclassify earnings under investing cash flow instead of operating cash flow, the category watched more closely by investors. Therefore, these companies don't appear to be generating as much cash as they really are.
• Crisis=opportunity: By 2015, homeland security is expected to be a $180 billion-a-year industry worldwide, reported The Atlanta Journal-Constitution. The article described how students and recent alumni are increasingly entering safety-centered business concepts into the annual Georgia Tech Business Plan Competition. For example, Luke Pinkerton, a 2004 MBA graduate, is marketing his contest-winning product for homeland security purposes. His company, Polytorx, makes toothpick-sized metal fibers for use in blast-resistant concrete. "The last thing I want to do is capitalize on what happened (on 9/11)," Pinkerton said. "But at the same time, there's a big need for products that could resist these horrible sorts of explosions."
• True problem: IndustryWeek covered Mark Ferguson's research on how to reduce the growing incidence of "false failure" returns of products with no verifiable cosmetic or functional flaws. Manufacturers could motivate retailers to help solve the problem via a target rebate contract, proposes Ferguson , assistant professor of operations management. "Right now there's no incentive for retailers to put extra effort to reduce the number of false failure returns because the manufacturer provides full credit for every returned product," he said. More info
• Hybrid approach: The Atlanta Business Chronicle featured the College of Management in an article on the trend toward combining Six Sigma and Lean styles of management. For several years, Georgia Tech has offered Six Sigma green-belt and black-belt training incorporating the Lean approach. "Today, for most people, Six Sigma is Lean Six Sigma," said Tech instructor Lee Campe. "It's just a question of whether or not you want to use that term."
• Social contracts: Are there are understood but unspoken covenants between a community and its leading companies? The Atlanta Journal-Constitution turned to Nathan Bennett for answers. "There really isn't a body that enforces social contracts," said Bennett, professor of organizational behavior and senior associate dean. "So if one is violated, people can vote with their feet � they can choose not to buy a product, they can choose not to go to work someplace, they can choose not to fly an airline. But it's difficult for a city to get any sort of compensation if there's a violation of a social contract."
• Ready for Wall Street: The dedication of the College of Management 's new high-tech, Ferris-Goldsmith Trading Floor won coverage in the Atlanta Business Chronicle. Designed to prepare students for careers in investment banking and financial services, the floor was dedicated in honor of the donors who made the facility possible: Joyce Ferris , widow of Dakin B. Ferris Jr., who earned his bachelor's degree in management from Tech in 1950 and was vice chairman of Merrill Lynch; and Barbara and Jere W. Goldsmith IV, a 1956 graduate of the business school who is the semi-retired first vice president of investments at Merrill Lynch. More info
• Child support: Business schools are increasingly making efforts to be flexible and supportive of MBA students who are mothers, reported The Wall Street Journal. The article mentioned that a Georgia Tech MBA student was allowed to bring her newborn to her accounting exam.
• Real-time trouble: While technological advances are enabling companies to track the flow of goods in the supply chain minute by minute, such close monitoring might not help business managers make better business decisions, according to a study by Nicholas Lurie that was covered by CIO magazine. "The danger of real-time data is that it may come to you at a frequent rate, maybe every hour, and if you respond to that data � if there's some random event, and you treat the random event as systematic � it could really throw you off," said Lurie, assistant professor of marketing.
• Growing diversity: Business schools are striving to increase the number of minorities in their MBA programs, reported the Atlanta Business Chronicle in an article on corporate America 's growing demand for black MBA students. "You want a diverse group of people because in a good MBA program, you will learn as much from your classmates as you do in the classroom," said Paula Wilson, Tech's director of MBA admissions. The article spotlighted Tech MBA student Crystal Gilpin.
• Spared expense: Accounting professor Charles Mulford appeared in an article in the Los Angeles Times on how companies that inadvertently backdated stock options may not have to book their underreported value as an expense. To avoid the cost, companies must have issued the stock option grants before a new accounting rule went into effect. Mulford also appeared in a CFO magazine article on how the federal government held off on Medicare payments to health-care providers until the next fiscal year to create the illusion of lowering the deficit.
• Most of all: Associate finance professor Ajay Khorana 's research on global mutual fund fees was of particular interest in Canada. His discovery that Canadians pay the world's highest mutual fund fees was covered by the Globe & Mail, Toronto Star, and The Gazette of Montreal.
• Legally bound: Many colleges, cultural centers, and other nonprofits are making it harder for philanthropists to renege on gift pledges, reported The Wall Street Journal. Listing recent broken pledges to such institutions as Harvard University ($115 million), the Kennedy Center ($50 million), and New York University ($21 million), the article mentioned the unfulfillment of a $25 million commitment to Georgia Tech College of Management a few years ago. Barrett Carson, Tech's vice president for development, said that experience hasn't changed the way the Institute interacts with donors. "A legally binding contract enforceable by law is not a direction in which we are going," he said. "Maybe I'm not as hard-nosed as I should be. But sometimes bad things happen to good people."
• Just say no thanks: When it comes to accepting vendor hospitality, avoid any situation that could be perceived as a conflict of interest, advised College of Management Dean Steve Salbu in an article in the Australian version of CIO magazine. "Increasingly stringent anti-corruption laws around the world suggest that both buyers and sellers trade in personal gifts and lavish entertainment at their peril," he warned.
• Strain on the chain: Some firms are taking too lean an approach to their supply chains, said operations management professor Vinod Singhal in CFO Europe. "It's like someone who wants to lower his cholesterol levels and cuts fat entirely out of his diet. Is that healthy?" Clearly not, Singhal said, emphasizing that companies need to build flexibility into their supply chains to avoid devastating disruptions. He was also interviewed by London 's Daily Telegraph on the same subject. More info
• Need to know: For a story on technology trends that companies should understand, the Gwinnett Business Journal interviewed Sridhar Narasimhan, professor of information technology management. In addition to globalization, he discussed the migration of applications to the Internet and the spread of open-source (free) software. "(The software) seems to work on most systems, but those who work with it need to be aware of its constraints and limitations," he said.
• Up in the air: When US Airways announced its interest in acquiring Delta Air Lines, CBS 46 (WGCL) and Fox 5 (WAGA) turned to marketing professor emeritus Fred Allvine for commentary. Even though Delta's management is reportedly uninterested in the proposed merger, both carriers could realize benefits from the union, Allvine said.
• Perceptual bias: Research by assistant marketing professor Koert van Ittersum on alcohol pouring continues to generate major media coverage. Most recently, Phoenix 's Arizona Republic reported van Ittersum's findings that people inadvertently pour 20 to 30 percent more alcohol into short, wide glasses than tall, slender ones of the same volume
• Boardroom brawls: In an article on the growing number of rifts among members of corporate boards, the Fulton County Daily Report quoted Nathan Bennett, professor of organizational behavior and senior associate dean. How dissension is handled and resolved is key, he said. "If you have the opportunity to start with a clean slate of directors, you can make selections of the kind of people you need," he said. But he added that the situation is more complex if an existing board is ridden with conflicts and composed of super rich people who are out of touch with shareholders and too focused on their personal agendas.
• Patently absurd: Stuart Graham's research on patent reform was featured in BizEd, the magazine of the Association to Advance Collegiate Schools of Business. Graham, an assitant professor of strategic management, discussed how many questionable patents are granted and never challenged in the United States because of high court costs. "Under the current system, many patents are being used solely to demand royalties from companies, hold up manufacture, and stifle innovation," he said. More info
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Review highlights of recent news coverage of Georgia Tech College of Management's people and programs.
September-November 2006
• Pricey preposition: One small word can make a big difference for companies determining their operating cash flow, according to research by accounting professors Charles Mulford and Eugene Comiskey that was covered by The Wall Street Journal. The distinction between return "on" investment and return "of" investment has led some companies to misclassify earnings under investing cash flow instead of operating cash flow, the category watched more closely by investors. Therefore, these companies don't appear to be generating as much cash as they really are.
• Crisis=opportunity: By 2015, homeland security is expected to be a $180 billion-a-year industry worldwide, reported The Atlanta Journal-Constitution. The article described how students and recent alumni are increasingly entering safety-centered business concepts into the annual Georgia Tech Business Plan Competition. For example, Luke Pinkerton, a 2004 MBA graduate, is marketing his contest-winning product for homeland security purposes. His company, Polytorx, makes toothpick-sized metal fibers for use in blast-resistant concrete. "The last thing I want to do is capitalize on what happened (on 9/11)," Pinkerton said. "But at the same time, there's a big need for products that could resist these horrible sorts of explosions."
• True problem: IndustryWeek covered Mark Ferguson's research on how to reduce the growing incidence of "false failure" returns of products with no verifiable cosmetic or functional flaws. Manufacturers could motivate retailers to help solve the problem via a target rebate contract, proposes Ferguson , assistant professor of operations management. "Right now there's no incentive for retailers to put extra effort to reduce the number of false failure returns because the manufacturer provides full credit for every returned product," he said. More info
• Hybrid approach: The Atlanta Business Chronicle featured the College of Management in an article on the trend toward combining Six Sigma and Lean styles of management. For several years, Georgia Tech has offered Six Sigma green-belt and black-belt training incorporating the Lean approach. "Today, for most people, Six Sigma is Lean Six Sigma," said Tech instructor Lee Campe. "It's just a question of whether or not you want to use that term."
• Social contracts: Are there are understood but unspoken covenants between a community and its leading companies? The Atlanta Journal-Constitution turned to Nathan Bennett for answers. "There really isn't a body that enforces social contracts," said Bennett, professor of organizational behavior and senior associate dean. "So if one is violated, people can vote with their feet � they can choose not to buy a product, they can choose not to go to work someplace, they can choose not to fly an airline. But it's difficult for a city to get any sort of compensation if there's a violation of a social contract."
• Ready for Wall Street: The dedication of the College of Management 's new high-tech, Ferris-Goldsmith Trading Floor won coverage in the Atlanta Business Chronicle. Designed to prepare students for careers in investment banking and financial services, the floor was dedicated in honor of the donors who made the facility possible: Joyce Ferris , widow of Dakin B. Ferris Jr., who earned his bachelor's degree in management from Tech in 1950 and was vice chairman of Merrill Lynch; and Barbara and Jere W. Goldsmith IV, a 1956 graduate of the business school who is the semi-retired first vice president of investments at Merrill Lynch. More info
• Child support: Business schools are increasingly making efforts to be flexible and supportive of MBA students who are mothers, reported The Wall Street Journal. The article mentioned that a Georgia Tech MBA student was allowed to bring her newborn to her accounting exam.
• Real-time trouble: While technological advances are enabling companies to track the flow of goods in the supply chain minute by minute, such close monitoring might not help business managers make better business decisions, according to a study by Nicholas Lurie that was covered by CIO magazine. "The danger of real-time data is that it may come to you at a frequent rate, maybe every hour, and if you respond to that data � if there's some random event, and you treat the random event as systematic � it could really throw you off," said Lurie, assistant professor of marketing.
• Growing diversity: Business schools are striving to increase the number of minorities in their MBA programs, reported the Atlanta Business Chronicle in an article on corporate America 's growing demand for black MBA students. "You want a diverse group of people because in a good MBA program, you will learn as much from your classmates as you do in the classroom," said Paula Wilson, Tech's director of MBA admissions. The article spotlighted Tech MBA student Crystal Gilpin.
• Spared expense: Accounting professor Charles Mulford appeared in an article in the Los Angeles Times on how companies that inadvertently backdated stock options may not have to book their underreported value as an expense. To avoid the cost, companies must have issued the stock option grants before a new accounting rule went into effect. Mulford also appeared in a CFO magazine article on how the federal government held off on Medicare payments to health-care providers until the next fiscal year to create the illusion of lowering the deficit.
• Most of all: Associate finance professor Ajay Khorana 's research on global mutual fund fees was of particular interest in Canada. His discovery that Canadians pay the world's highest mutual fund fees was covered by the Globe & Mail, Toronto Star, and The Gazette of Montreal.
• Legally bound: Many colleges, cultural centers, and other nonprofits are making it harder for philanthropists to renege on gift pledges, reported The Wall Street Journal. Listing recent broken pledges to such institutions as Harvard University ($115 million), the Kennedy Center ($50 million), and New York University ($21 million), the article mentioned the unfulfillment of a $25 million commitment to Georgia Tech College of Management a few years ago. Barrett Carson, Tech's vice president for development, said that experience hasn't changed the way the Institute interacts with donors. "A legally binding contract enforceable by law is not a direction in which we are going," he said. "Maybe I'm not as hard-nosed as I should be. But sometimes bad things happen to good people."
• Just say no thanks: When it comes to accepting vendor hospitality, avoid any situation that could be perceived as a conflict of interest, advised College of Management Dean Steve Salbu in an article in the Australian version of CIO magazine. "Increasingly stringent anti-corruption laws around the world suggest that both buyers and sellers trade in personal gifts and lavish entertainment at their peril," he warned.
• Strain on the chain: Some firms are taking too lean an approach to their supply chains, said operations management professor Vinod Singhal in CFO Europe. "It's like someone who wants to lower his cholesterol levels and cuts fat entirely out of his diet. Is that healthy?" Clearly not, Singhal said, emphasizing that companies need to build flexibility into their supply chains to avoid devastating disruptions. He was also interviewed by London 's Daily Telegraph on the same subject. More info
• Need to know: For a story on technology trends that companies should understand, the Gwinnett Business Journal interviewed Sridhar Narasimhan, professor of information technology management. In addition to globalization, he discussed the migration of applications to the Internet and the spread of open-source (free) software. "(The software) seems to work on most systems, but those who work with it need to be aware of its constraints and limitations," he said.
• Up in the air: When US Airways announced its interest in acquiring Delta Air Lines, CBS 46 (WGCL) and Fox 5 (WAGA) turned to marketing professor emeritus Fred Allvine for commentary. Even though Delta's management is reportedly uninterested in the proposed merger, both carriers could realize benefits from the union, Allvine said.
• Perceptual bias: Research by assistant marketing professor Koert van Ittersum on alcohol pouring continues to generate major media coverage. Most recently, Phoenix 's Arizona Republic reported van Ittersum's findings that people inadvertently pour 20 to 30 percent more alcohol into short, wide glasses than tall, slender ones of the same volume
• Boardroom brawls: In an article on the growing number of rifts among members of corporate boards, the Fulton County Daily Report quoted Nathan Bennett, professor of organizational behavior and senior associate dean. How dissension is handled and resolved is key, he said. "If you have the opportunity to start with a clean slate of directors, you can make selections of the kind of people you need," he said. But he added that the situation is more complex if an existing board is ridden with conflicts and composed of super rich people who are out of touch with shareholders and too focused on their personal agendas.
• Patently absurd: Stuart Graham's research on patent reform was featured in BizEd, the magazine of the Association to Advance Collegiate Schools of Business. Graham, an assitant professor of strategic management, discussed how many questionable patents are granted and never challenged in the United States because of high court costs. "Under the current system, many patents are being used solely to demand royalties from companies, hold up manufacture, and stifle innovation," he said. More info
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