Spring 2013 - Simmons College
Transcription
Spring 2013 - Simmons College
MANAGEMENT Lessons in principled leadership from the Simmons School of Management Spring 2013 Magazine Management Magazine l Spring 2013 The rise of the new breadwinners A Latina leans in Underdog (brands) to the rescue From Manila to Manhattan: The immigrant entrepreneur 1 The (R)evolution of ConsumerBrand Relationships May 15 – 17, 2013 Simmons School of Management This conference, co-chaired by Susan Fournier, the founder of the brand relationships discipline, and colleagues Mike Breazeale and Jill Avery, showcases rigorous and theoretically and/or practically useful papers that advance knowledge of the art and science of consumers’ relationships with their brands. The conference is intended for those with an interest in consumers’ brand relationships, with equal relevance for young and established academic researchers, Ph.D. students, and marketing practitioners charged with building strong relationships with brands. The recent success of our very own Consumer-Brand Relationships: Theory and Practice (2012)—a volume of 19 projects and case studies drawn from conference contributors—attests to the multi-disciplinary relevance and significance of the brand relationship applications shared in this event. Continuing in this tradition and building on conference submissions, additional edited books are planned. This year’s conference theme—The (R)evolution of ConsumerBrand Relationships—acknowledges that both academics and practitioners increasingly recognize the role that brand relationships play not only in product selection, satisfaction, and reten- For more information, visit tion, but also in the very fabric of society. As the field advances, brand relationship theory is rightfully applied to situations as diverse as politics, public policy, social issues such as obesity and financial overextension, global culture studies, celebrity and entertainment, neuropsychology, business-to-business, and even the recruitment tactics of terrorist organizations. As appreciation of the importance and scope of relationships continues to evolve, so must our understanding of the nature and process of brand relationships—the good, the bad, and the ugly. To this end, we encourage completed papers as well as developed works-in-progress reflecting a range of theoretical perspectives and methodological approaches to understanding, creating, nurturing, managing, and leveraging brand relationships, particularly as related to this year’s conference theme. Questions about submissions or the conference program: [email protected] Administrative questions (e.g., hotel registration, payment): [email protected] consumer-brand-relationships.com Dean’s Note Management Magazine VOLUME 2 \ NUMBER 1 \ SPRING 2013 Simmons School of Management COMMUNICATIONS MANAGEMENT PROGRAM DIRECTOR & EDITOR-IN-CHIEF Richard L. Cravatts EDITORIAL STAFF Annette Battistone Charmayne Cooke Jess Faulk Liz Meyer Gillian Miller Jiebin Peng Swarneem Rai Alix Roy AuJané Stewart Shana Sullivan Xiomara Vides FACULTY EDITOR Janice O’Leary FACULTY DESIGN DIRECTOR Jane N. Hayward Administration DEAN Cathy E. Minehan ASSOCIATE DEANS Deborah Marlino, Mary Dutkiewicz 300 The Fenway Boston, MA 02115 (617) 521-2412 Cathy E. Minehan 29th Gold Circle Awards winner Columbia Scholastic Press Association Dean, School of Management Simmons College Management Magazine l Spring 2013 MANAGEMENT MAGAZINE is published semiannually by students in the Communications Management Program in the School of Management at Simmons College. No portion of this publication may be reproduced in any form without prior permission from the publisher. All rights reserved. W elcome to the third edition of Management Magazine, a publication produced entirely by students in our Communications Management master’s program at the Simmons School of Management. In this issue we learn of the increasing role of women as the main breadwinner in their family, the results of a study conducted by the SOM’s Center for Gender in Organizations which found that 40 percent of American women are currently either the primary breadwinner in their homes or earn as much as their partners. While that seems like good news for women in the workplace, our piece on gender bias suggests that women still confront obstacles in their careers, as they do in compensation, where experts points to lingering disparity in salaries between men and women Contributing to the conversation is the current debate sparked by author and Facebook COO Sheryl Sandberg on whether women need to “lean in” to their careers in order to achieve success on par with their male counterparts. How women do “lean in,” how they increasingly take on significant leadership roles and executive responsibility, is a theme of our other stories, as well. Our piece on immigrant entrepreneurs, for example, focuses on the success of fashion designer Josie Natori, as she built a luxury brand. Other pieces on leadership suggest ways to lead with dignity, essential elements for effective leadership, women gaining seats on corporate boards, and how a young woman MBA assumed a corporate manager’s role in a Muslim country. The lessons learned from these stories are, of course, some of the same ones that animate teaching in School of Management classrooms, and which form the basis of some of our degree programs, including the new health care MBA, which, as described by director Cathy Robbins, addresses the critical need to prepare skilled managers in a burgeoning and increasingly complex sector of our economy. 1 Contents Features 10 They try harder 14 The new breadwinners Why underdog brands win in recessions by Jill Avery, Neeru Paharia, and Anat Keinan How women are increasingly bringing home the bacon Management Magazine l Spring 2013 by Mary Shapiro, Stacy Blake-Beard, Suzanne Carter, Regina O’Neill, Cynthia Ingols, Alicia Margoles Bartolozzi, and Mary E. Ogle 2 24 10 18 21 A sweeter pill 24 From Manila to Manhattan Managing health care with a dose of business by Shana Sullivan Blocked from the top Gender bias is still holding women back by Špela Trefalt, Deborah Merrill-Sands, Deborah Kolb, Fiona Wilson, and Suzanne Carter Entrepreneurship across borders by Liz Meyer 5 21 6 Departments 30 31 28 Principled Leadership Ten essential elements for adding an important dimension to leadership by Donna Hicks Briefcase Good news and bad news for women entering the work force by Gary Gaumer Going Global Reflections on the changing environment for women managers in a Muslim country by Swarneem Rai Off the Cuff Sheryl Sandberg’s “Lean in” message is not enough for women, especially professional Latinas by Angélica Pérez-Litwin Trajectories Serving the community by serving on boards by Diana Kelly Bookshelf What we’re reading now the Glass 32 Breaking Ceiling Work hard but don’t stay tied to your desk by Sandra Fenwick Management Magazine l Spring 2013 6 8 5 18 3 Contributors Jill Avery is an Assistant Professor of Marketing at the Simmons School of Management, where she has been on the faculty since 2007. Avery’s research focuses on brand management and customer relationship management issues. Her branding insights have been frequently cited in the business press including Advertising Age, The Economist, The New York Times, The Financial Times, and Business Week. Gary Gaumer is a health economist and teaches Economics and Business Performance Measurement at the Simmons School of Management. As a consultant, he designs, develops, and implements health financing and information systems reforms in health care. He has done research on international health, alternative medicine, telemedicine, and healthcare labor markets. Management Magazine l Spring 2013 Donna Hicks, PhD, author of Dignity: Its Essential Role in Resolving Conflict, is an Associate at the Weatherhead Center for International Affairs at Harvard University. In addition to teaching conflict resolution, Hicks has spent nearly two decades in the field of international conflict resolution facilitating dialogue between communities in. She also applies her dignity model to everyday business and relational situations. 4 Teresa Nelson holds the Elizabeth J. McCandless Professor of Entrepreneurship Chair at Simmons College, where she is also the director of the School of Management’s Entrepreneurship Program. Her teaching, research, and consulting focus on issues of entrepreneurship and global business. Nelson has founded two businesses and works as an affiliate consultant with two others. Catherine Robbins is a Professor of Practice in the Simmons School of Management with experience leading hospital and health care systems as a senior health care financial executive and communicating about the broader health care financial trends from the perspective of an investment banker. She is the Program Director of the Simmons Health Care MBA in the School of Management and also teaches health care finance and strategy. For more than 25 years, Mary Shapiro, Professor of Practice, has served as Organization Behavior faculty at the Simmons School of Management, teaching undergraduates, MBA students, and executives. She specializes in three areas: team building and leadership, influential communication across diverse stakeholders, and strategic career management. Shapiro has consulted with Fortune 500 companies, private institutions, and non-profits to create strategic plans, launch teams, and intervene with teams in crises. In 2008 Špela Trefalt joined the faculty of the Simmons School of Management, where she teaches in the MBA and Executive Education programs. She has worked as a human resources management consultant and in the media in Slovenia. Trefalt’s research focuses on managing demands of work and life outside of work for improving individuals’ well-being by combining their own agency and organizational change. Going Global Letter from Jakarta REFLECTIONS ON THE CHANGING ENVIRONMENT FOR WOMEN MANAGERS IN A MUSLIM COUNTRY by Swarneem Rai L One of the most notable female leaders in Indonesia of late has been the former Finance Minister Sri Mulyani who holds a doctorate degree from University of Illinois at Urbana-Champaign. She was the force behind the strong economic growth in Indonesia during the global financial crisis. Nastasia hopes these examples are harbingers for Indonesia’s future and that more female leaders like Mulyani who are educated, motivated reform makers in their fields will be rising to prominence. As a Christian, Nastasia belongs to the minority group in Indonesia but she still has insight into the role families play in promoting the success of women. She thinks that family plays a big role when it comes to women working outside their homes in Indonesia and other non-Western countries. Most women are supportive of their daughters being financially stable before getting married, but there are still some who advise their daughters to marry young so that they have the energy to take care of their families. As more of the older generation become open-minded about such issues, women have better chances to pursue successful careers in business. As an Indonesian, Nastasia believes that Muslim women in Indonesia are getting better opportunities because of their own merits and are changing the working environment despite cultural boundaries. Although some cultural traditions may have relaxed, others, like praying in the workplace, are acceptable and continuing. Women in a Muslim country can take on leadership roles with adjustments, and in Indonesia, they are already doing so. n Kinski Nastasia graduated from Simmons in 2009 with a Bachelor’s degree in Finance and Computer Science. She moved back to her hometown Jakarta, Indonesia after graduation to take position as Equity Analyst for a fund management firm before moving to PWC’s Advisory arm in August of 2012, where she is currently working. Management Magazine l Spring 2013 eadership roles are less gender specific in the new millennium, especially in the Western world. Surprisingly, this trend is also catching on quickly in the East. It’s even more note-worthy in a Muslim society where women are usually not in the business limelight. Witnessing this change is Kinski Nastasia, who is making her way in the corporate world in Indonesia, where Islam is the predominant religion. Nastasia works as a partner at PricewaterhouseCoopers (PwC), Indonesia in their Advisory arm. As part of the “Big Four,” PwC provides business advisory services to private and public institutions. For its first 40 years, the company never had a female partner (equivalent to CEO), but now, 8 out of 30 partners are female. However, even in a Islamic country, none of them are Muslim. One of the biggest challenges for Muslim women in business is their strict adherence to cultural values. They are expected to marry and take care of the family while the husband works to provide. Nastasia recalls an incident with a former colleague where the colleague was required to wear a hijab, since she normally did not, when she went to visit a government office. She was not offered handshakes, which was in accordance to Islamic rules. Some cultural restrictions have relaxed in Indonesia, however, since the global financial crisis when the country experienced strong economic growth. Because of the higher cost of living, Nastasia has seen women being expected to contribute financially to support their families. Indonesia is seen to be more welcoming when it comes to accepting women in the workplace, according to Kinski, than other predominantly Muslim nations. 5 Off the Cuff Leaning by example SHERYL SANDBERG’S “LEAN IN” MESSAGE NOT ENOUGH FOR WOMEN, ESPECIALLY PROFESSIONAL LATINAS by Angélica Pérez-Litwin A Management Magazine l Spring 2013 Angélica Pérez-Litwin is the founder and CEO of ELLA Leadership Institute, a mission driven organization that trains and mentors women through innovative professional development programs, events, and access to a network of exceptional women. Pérez-Litwin has devoted over 20 years of her career as a clinical psychologist, mentor, and social media influencer to the empowerment, wellbeing, and success of women and, in particular, Latinas of all ages. 6 t the age of 31, armed with a Ph.D. in Clinical Psychology, I joined a research center at a wellrespected university hospital in New York City. The center was desperately looking for a Latina Ph.D. to resurrect and direct a research clinic focusing on ethnic minority populations. As a confident woman who knew the value I brought to the center, I successfully negotiated my starting salary and presented a wish list for professional growth. My assertiveness carried throughout the six years I was there. I did what Sheryl Sandberg, Facebook’s COO, encourages women to do in her book, Lean In: Women, Work and the Will to Lead. In a self-proclaimed feminist movement to address current gender disparities in leadership, Sandberg aims to galvanize women with a call to action to lean in and step up in the workplace. I did step up. I leaned in at staff team meetings, sat at the table, and contributed to the dialogue. I explored and pursued research opportunities. I asked for mentorship. I scheduled meetings with key players, and asked for their support and guidance in moving my research career forward. But leaning in has its limitations for women in the workplace, and especially for Latinas. When Latinas lean in at work, they are often examined through a lens blurred with ethnic prejudices, and socially prescribed roles and expectations. God forbid she has a Spanish accent. More than once, a lost patient or hospital staff wandering down the hall came to my office door to ask for direction. “Are you the secretary?” they would ask. “No, I’m Dr. Perez, how can I help you?” I’d reply. My title was often met by a subtle expression of surprise. My bachelor’s degree from Columbia University and Ph.D. has raised questions about the role that affirmative action must have played in my academic achievements. In her memoir, Justice Sonia Sotomayor describes a moment when her academic merits were credited to affirmative action, despite graduating summa cum laude from Princeton University. This perpetual attribution of Latinas’ achievements to tokenism is real in the workplace and underestimates what accomplished Latinas bring to the table. An assertive Latina at work risks being seen as “difficult” or “opinionated.” A confident voice level makes her “confrontational” or “loud.” We are expected to be nice and supportive, and less so leaders. These social perceptions and ethnic biases form an important part of the organizational barriers that women, and especially ethnic/racial women, face in the workplace. This, of course, is in addition to the organizational culture and policies that are blatantly gender biased when it comes to promoting women leadership. I sincerely applaud Sandberg for taking on this mission and initiating this important conversation. I appreciate her reminder to lean in, but I want to remind Sandberg that most women do lean in at work. Any vacillation she has observed among her female colleagues has more to do with leaning in and getting hit by a glass wall (i.e., organizational barriers), than by their lack of motivation to step up. How long can we lean in and bang ourselves on a glass wall? How Companies Can Lean In and Promote Women Leadership The following recommendations are adapted from Linda Babcock and Sara Laschever, coauthors of Women Don’t Ask: Negotiation and the Gender Divide. A version of this article was published on the Huffington Post. 1. Since men are more likely than women to negotiate or ask for opportunities and rewards, companies need to pay attention to who initiates negotiations and adjust their decision-making accordingly. Handing out assignments and opportunities should be based more on who is most likely to get the job done best, than who is assertive enough to ask. A more democratic way to make opportunities available should be in place. 2. Women need mentoring. Assigning women to a trusted superior for advice, guidance, and hidden opportunities in the workplace cultivates leadership potential and levels the field. This is especially important for professional Latinas, who often are the first generation in their families to enter and navigate professional and corporate spaces. 3. Raising organizational awareness among all employees on gender and cultural differences in responses and behaviors is valuable. Increased awareness will help reduce differential bias that can deter progress for specific employee groups. 4. Overall, companies need to become more hospitable for women by expanding career opportunities beyond those that tend to favor men (e.g., the old boys club networking after hours; frequent traveling), and directly offer women solid career opportunities (e.g., invitation to carry out large-scale projects, or participation in a think tank group with influential key players). Management Magazine l Spring 2013 Many of us do sit at the table, raise our hands, voice our opinions, and ask for a salary raise. But women who negotiate face a high penalty, according to a 2005 study by Harvard researchers, which explains why women are less likely than men to negotiate their starting salaries. When women negotiate, both men and women are less likely to want to work with or hire them. The social expectation is for women to be accommodating and not overly-demanding. For Latinas, these social expectations are even more inflated. Unless companies and organizations begin to implement major structural and policy changes designed to promote leadership among women, the idea that we can control our fate in the workplace will remain an illusion. The solution to this issue is not complicated. Sandberg’s Lean In Circles are part of the solution in helping women navigate their careers in the workplace. But Sandberg’s message needs to be more robust and comprehensive. Companies need to do their part. Sheryl Sandberg is well positioned to revolutionize the experience of women in the workplace, but her call to action will need to include her fellow top executives and CEOs at Fortune 500 companies to lean in and do their part. In the meantime, I plan to create a Lean In Circle for Latinas, to share our stories, learn together, and support one another. Intertwined within these conversations will be the acknowledgement that companies have some work to do, too. n 7 Trajectories Mission driven SERVING THE COMMUNITY BY SERVING ON BOARDS by Diana Kelly W Management Magazine l Spring 2013 Diana Kelly is a Simmons alumna and vice president, partner, and board member at Maloney Properties where she oversees a varied portfolio of both conventional and assisted rental housing. Kelly is a member of the New England Black Property Manager’s Forum, the president of the Southwest Boston CDC, a trustee of the Wilton Brook Condominium Association, and a director of HEARTH, Inc. 8 hen I graduated from Simmons in 1973, I did not have board service on my list of goals and aspirations but since that time I have had the pleasure of serving on a number of nonprofit and other boards of directors. My goals did include working to reach a high level of professionalism in my chosen field of affordable housing and seeking out opportunities to broaden my knowledge of the field, whenever possible. Pursuing those goals led me to board service. A few years after leaving school, I moved to the South End of Boston where I met a group of women who had helped to found a shelter for battered women, Casa Myrna Vazquez (CMV). I had been working in affordable housing since graduation and was asked to join the CMV board because of my housing experience. The need to find permanent, affordable housing was one of many challenges faced by the women in the shelter, and the organization was looking for someone who could help their volunteers and guests better understand the occupancy and income requirements of subsidized housing communities so their guests would be more successful in getting apartments. Serving on the CMV board increased my personal knowledge of the circumstances faced by housing applicants and I was able to work with staff and guests of the shelter to better organize how housing applications were prepared and presented. This led to more women finding successful housing placements and the organization building a network of housing advocates who worked with the women in the shelter and established a network of property managers in housing complexes in the area. My work at CMV made me want to learn more about how housing is developed from the ground up and in 1983 I had the opportunity to join the board of the Women’s Institute for Housing and Economic Development (WIHED), a non-profit that develops affordable housing and economic development programs throughout the Commonwealth of Massachusetts. At WIHED I served on a committee that reviewed development proposals and investigated prospects for future development opportunities. This was an invaluable experience that has benefited me throughout my career. At United South End Settlements (USES) I had the opportunity to serve on a very large board that focused on social service programming for youth, elders, and families in the South End of Boston. My experience there increased my body of knowledge of how service programs can impact the lives of community residents. Since 1982 I have been employed at Maloney Properties, Inc., a for-profit manager of mixed income housing throughout Massachusetts, Vermont, Rhode Island, and New Hampshire. One of our clients asked me to consider joining the board of Greater Roxbury Development Corporation (GRDC), a non-profit that had developed several subsidized housing developments in Roxbury. While serving on the GRDC board, I learned some valuable lessons about how to correct situations that were not working as they should. During all of my board service, I had come to appreciate the importance of governance. Nonprofit organizations are an invaluable resource for the individuals and families they serve and board members have a fiduciary and legal responsibility to understand how the organization is operating and to direct those operations to benefit its constituency and the larger community. At GRDC I learned how to respond when an organization was not performing as it should and not living up to its mission. After moving to the Hyde Park neighborhood of Boston in 2002, I ran into an old friend from my South End days who asked me to join the board of a new organization, the Southwest Boston Community Development Corporation (SWBCDC). SWBCDC is committed to serving the communities of Hyde Park and Roslindale by promoting economic development, youth development, preserving affordable housing, and foreclosure prevention. At SWBCDC, I worked with a group of artists interested in establishing Hyde Park as a known location for innovative, creative work. Together we secured funding for the artists from the Massachusetts Cultural Council and established what has become a well-known Arts Fair held in July of each year. We established The Green Team, an award-winning program that hires Hyde Park youth that has promoted anti-littering, created walking trails, restored a playground, and cleaned-up our urban wilds. With the help of the City of Boston, we acquired a foreclosed three-family building, renovated it, and identified a working family who purchased it and who now has a beautiful home and two tenants renting the other units in the building. Today I am pleased to serve as the President of SWBCDC as we continue our work on improving commuter rail access to Hyde Park through our work on the nationally-recognized Fairmount Collaborative. If you are interested in serving your community and in having the opportunity to learn and do things that you normally might not have the opportunity to do, consider board service. Being a member of a board means that you serve as an advisor to the Executive Director, reviewing the operations of the organization and evaluating the impact of the work of the organization. Fiduciary responsibilities include reviewing financial reports and approving the annual budget and financial statement or audit. To do these tasks well means that you need to be faithful about attending meetings to hear and vote on material business decisions and assure that the organization is meeting its legal and fiduciary responsibilities. I highly recommend board service. It has been invaluable to me and it can be the same for you. n When choosing a board • Consider the mission of the organization. Is it one that you support? • Before making your decision, ask for and review the by-laws of the organization. • Once on the board you have the opportunity to serve in leadership positions that you otherwise may not have. You can identify and recruit new board members. You represent the organization in the larger community. Management Magazine l Spring 2013 • Examine requirements of board membership. How much time is required? When does the board meet? How often does the board meet? Are you expected to serve on a committee? Are you expected to make a financial contribution to the organization? How long are you expected to serve on the board? Are you expected to serve on a committee before you can join the board? 9 They try harder WHY UNDERDOG BRANDS WIN IN RECESSIONS by Jill Avery, Neeru Paharia, and Anat Keinan Simmons School of Management Assistant Professor Jill Avery co-authored this research with Neeru Paharia, research director at the Edmond J. Safra Foundation Center at Harvard University, and Anat Keinan, an assistant professor of marketing at Harvard Business School. S ince the start of the global recession, underdog stories have captured the hearts and minds of consumers around the world. Underdogs have been winning at the box office, on book store shelves, and in the political polls. Underdog characters have been the champions in Oscar-winning movies like Moneyball and in blockbuster books like The Hunger Games, leading to billions of dollars in sales. In the 2012 U.S. presidential election, both candidates, Barack Obama and Mitt Romney, positioned themselves as underdogs to gain the support of voters. Underdog teams such as first to famously attempt an underdog brand strategy with the “We’re number 2, we try harder” campaign known to be one of the most successful advertising efforts in history. The recession of the early 1990s also generated some popular underdog brands. Clothing brand Volcom is currently traded on NASDAQ, but the website still emphasizes the brand’s 1991 recession origin and its anti-establishment philosophy. Similarly, beverage brand Nantucket Nectars was purchased by Cadbury Schweppes in 2002, but still highlights its humble beginnings using precious packaging space to declare “We started Management Magazine l Spring 2013 We started Nantucket Nectars with only a blender and a dream. 10 the #15 seed Florida Gulf Coast University garnered tremendous fan support as they beat #2 seed Georgetown and San Diego State to make it into the Sweet 16 of the 2013 NCAA basketball tournament. Brands, too, can profit from this underdog positioning. Firms can successfully both inspire, and increase their appeal to consumers by strategically using underdog branding. Several companies have been successful in these efforts. In 1964 Avis Rental Car was one of the Nantucket Nectars with only a blender and a dream.” These underdog-oriented campaigns have not fallen upon deaf ears. Consumers’ favorite 2008 Superbowl advertisement was a Budweiser commercial with strong references to Rocky, a classic underdog, while, in 2013, they applauded Audi’s underdog character who knocks out the prom king to steal a kiss from the prom queen. As the obstacles in our lives become greater and our access to resources becomes more difficult, underdog stories inspire us to look past our dark circumstances. Why we root for Rocky Underdog stories about overcoming great odds through passion and determination are particularly resonant during difficult times as they inspire us and give us hope when the outlook we face is bleak. They promise that success is still possible, a much-needed message in challenging social, political, and economic times. In the midst of the worst recession since the Great Depression, the economic challenges facing the world today have intensified due to the financial crisis of 2008, the collapse of the housing market, widespread job losses, rising health care costs, and crushing amounts of consumer ing consumers to persevere during this cultural moment in history. Underdog stories are more appealing during difficult times because we tend to feel like underdogs ourselves. Results of a consumer survey show that people today perceive themselves to be bigger underdogs compared to their peers, regardless of their demographic profile. Our studies also find that underdog stories can increase consumers’ self-efficacy and motivate them to pursue their goals and not give up. As the obstacles in our lives become greater and our access to resources becomes more difficult, underdog Almost everyone believes Apple was started in a garage . . . Actually the operation began in a bedroom . . . When the bedroom became too crowded, the operation did indeed move to the garage. stories inspire us to look past our dark circumstances. These stories give us hope to overcome our own struggles because we identify with the failures and struggles of the underdog and we share their determination to succeed. When the underdog succeeds, we feel like we can succeed to meet the challenges in our own lives. Management Magazine l Spring 2013 debt. During recessionary time periods such as this, people feel increasingly disadvantaged, making them even more likely to identify with the struggles of underdogs. To reflect this reality, store shelves today are filled with stories of humble beginnings and noble struggles against overpowering adversaries, inspir- 11 The ingredients of a blue-ribbon underdog Our research shows that building an underdog brand biography can have favorable outcomes for companies. We identify a significant “underdog effect” which can drive incremental sales for branded products and can sustain them as they grow. Across a series of five studies with more than 2,000 consumers we tested responses to underdog brand stories in a variety of contexts, measuring purchase intention and real choice. To begin, we define the necessary components of an effective underdog brand biography as having two essential features: First, the underdog’s external environment is largely negative: Underdogs start from a when they get too big. Consumers have a complicated relationship with brand size and market success. On the one hand, many large, powerful, and dominant brands such as Disney, Coca-Cola, Starbucks, Toyota, and Nike enjoy widespread success and consumer loyalty. In an economic sense, size can be construed as a signal of a superior product. However, as brands grow and become more successful, they are often marked with the negative stigma that comes with being large and powerful. Work on schadenfreude, or taking pleasure in the misfortunes of others, shows that people enjoy seeing strong achievers fail. This may translate into the enjoyment of seeing large corporations Management Magazine l Spring 2013 We are in the rental car business playing second fiddle to a giant. We’re number 2. We try harder. 12 disadvantaged position and encounter obstacles along the way, making it a more difficult struggle for them than for others. Secondly, the underdog’s internal characteristics are largely positive: Underdogs show perseverance in the face of adversity and are resilient even when they fail, staying passionately focused on their end goal. Both external disadvantage and internal passion are essential elements of a successful underdog biography. We used these two components of this narrative to explore consumer attitudes towards a company that either had an underdog brand biography or a top dog brand biography. We found that consumers, particularly those who perceive themselves as struggling to win against the odds in their own lives, identified strongly with underdog brands leading to increased purchase intentions. Consumers root for underdogs because of underdog aspects in their own lives. When they feel more like underdogs themselves, they will be more likely to support underdog-branded products. Avoiding the “curse” of success Underdog biographies may also be strategically applied to help companies avoid the “curse” of success or brands fail. In our research we found that underdog biographies can be strategically applied to help companies avoid the “blemish” of success. In one study consumers were asked to indicate their liking and purchase interest of three large companies, one with an underdog brand story, one with a top dog brand story, and one with no brand story. Consumers significantly preferred large companies positioned as emerging from underdog roots than companies that had a top dog biography or no brand story. Boot strap believers Though underdog stories are appealing, they may be more compelling in cultures where underdog narratives are widespread. We hypothesized that Americans would be more receptive to underdog narratives than people from other cultures because of the unique role of underdogs in the history of the United States. The American Dream, an ideal that many Americans hold close, is a myth built on the stories of underdogs who came to the United States with virtually nothing and pulled themselves up by their boot straps to achieve success and gain material comforts. We explored the underdog effect from a cross-cultural perspective by having Americans and Singaporeans evaluate underdog brands. We found that people from both cultures preferred underdog brands to top dog brands, but the effect was stronger for Americans. Based on the prevalence of underdog narratives in sports, culture, history, and religion in European countries, we expect that the underdog effects outlined above would similarly work. Companies can strategically use underdog brand biographies to strengthen the connection between consumers and a brand and avoid the curse of success, especially in difficult times. Consumers—particularly American—identify with underdog brands and are inspired by them to overcome the struggles in their own lives. Underdog brand biographies can be easily deployed and strategically applied to companies as they struggle, or when they become vulnerable to any negative attributions associated with large firm size or market power as they grow ever more successful. n The name When Pigs Fly means: “I doubt it’s possible,” and that’s why it was the perfect name for my bakery. Building a better underdog brand Capitalize on a variety of channels. Underdog brand stories can be communicated via a variety of channels such as packaging, advertising, public relations, corporate websites, and other marketing communication vehicles. Highlight essential components externally and internally. Underdog biographies need to emphasize external disadvantage; having more obstacles in your way and fewer resources to overcome them; and internal passion and determination: the resilience, perseverance, and passion to pursue a dream even when obstacles are in your way. Consider cultural context and economic factors. Companies should pay close attention to cultural context and economic factors while constructing these appeals to more closely resonate with the prevailing sentiment of the populace. Management Magazine l Spring 2013 Build from a brand biography. Underdog narratives are more compelling if they are built from a brand biography, a narrative authored to highlight historical events that have shaped a brand over time. For example, an archetypal underdog brand biography is that of the founder who starts her company in a garage with few resources, but tons of passion. 13 The new breadwinners HOW WOMEN ARE INCREASINGLY BRINGING HOME THE BACON by Mary Shapiro, Stacy Blake-Beard, Suzanne Carter, Regina O’Neill, Cynthia Ingols, Alicia Margoles Bartolozzi, and Mary E. Ogle Management Magazine l Spring 2013 W 14 ho is “bringing home the bacon” in your household? Chances are, if you are like 40 percent of American women today, you are now either the sole breadwinner in your home, or are contributing as much or more to the family’s earnings than your spouse/ partner. Over the last two decades, fueled by the recent “mancession” where men disproportionately lost employment, women have taken up the breadwinner role. In 1999, 19 percent of wives out-earned their husbands. By 2009, 29 percent did so. Increasingly families are depending on the wife’s paycheck for more than “extras,” such as vacations and dinners out. In 2008 women in dual-earner couples contributed 45 percent of the family income. This movement of primarily white, middle class, managerial women into the breadwinner role has captured the imagination of the popular press. On one hand, stay-at-home dads have been derisively called “trophy husbands” and “arm candy,” and on the other hand, they have been praised as “the perfect husband.” Women are castigated for emasculating men and abandoning their role as mothers, or called “Alpha Females” in recognition of their increased power at work and at home. Something significant is changing in our culture, evidenced by all the name-calling of both men and women found on the unconventional side of breadwinning or homemaking. The question is: why is it so disconcerting to find husbands taking care of the children and wives bringing home the paycheck? Perhaps the answer is: because we are in a process of redefining femininity, masculinity, and the roles women and men fill in society today. It has traditionally been assumed that men will be providers and women will be caretakers, and that men tributed 50 percent or less. Over 90 percent of the respondents reflected on a current relationship, 98 percent were in heterosexual relationships, and in that relationship 59 percent were PFCs. Given the turmoil that accompanies any change, it is not surprising that our research uncovered many contradictions and tensions, described below, our sample of women are facing. Proud, but secret Tension: The women in our sample were strong financial contributors. Our female PFCs earned, on average, 88 percent of the household’s income; even our female non-PFCs contributed 44 percent on average. When asked to select among eight possible emotional reactions to their breadwinner role, the top two emotions PFCs selected were “proud” and “satisfied.” Yet most kept their role private. Close family or friends are most likely to know who carries what role; coworkers and employers are least likely to know. When asked why they keep their role private, both PFCs and non-PFCs most strongly agreed that “it is not anyone’s business to know.” Women PFCs also keep their own breadwinning status private out of a desire to not embarrass their non-PFC partner. Additionally, roles were kept “hidden” even as they were determined. Management Magazine l Spring 2013 are supposed to be naturally aggressive, ambitious, competitive, and forceful, while women are supposed to be naturally affectionate, tender, soft-spoken, and sensitive to others. Society inundates us with messages about what women and men are supposed to act like, what roles they can fill, and even what types of jobs they can hold, e.g., “masculine” jobs such as construction and “feminine” jobs such as teachers. After growing up watching TV shows, where only 1 percent of male characters do housework compared to 28 percent of female characters doing so, it is no surprise that by not following society’s expectations, caretaking men may find their masculinity questioned, while breadwinning women find their femininity and ability to be good mothers questioned. To better understand today’s shifting realities, we collaborated with Hewlett-Packard to explore the impact breadwinning/caretaking roles have had on women’s lives and careers. Through an online survey available both during and shortly after the April 2012 Simmons Leadership Conference, we asked women to “reflect on a committed relationship,” which could be from the present or the past, involving either cohabitation or marriage, with either an opposite-sex or same-sex partner. Respondents then answered questions about that relationship while reflecting on their role as a financial provider, identifying as either Primary Financial Contributor (PFC) where they contributed 51 percent or more of the household’s total income, or Non-Primary Financial Contributor (Non-PFC), where they con- 15 Management Magazine l Spring 2013 The question is: Why is it so disconcerting to find husbands taking care of the children and wives bringing home the paycheck? 16 Both PFCs and non-PFCs most strongly agreed that their respective roles evolved over time “without an explicit discussion,” and second most strongly agreed that their “roles were created in response to a particular circumstance (i.e., layoff, illness, etc.) without explicit discussion.” Solution: We urge female breadwinners to challenge themselves to no longer be silent about their role, both in negotiating the role with their partners and negotiating support with their employers. Naming and consequently claiming their role enables them to seek out the support from their family, friends, and employers. Clearly it is risky to claim this unconven- did either all or significantly more than their partner, and another 51 percent said they contributed slightly more or equal to their partner. When asked about childcare, 26 percent of PFCs claimed they did either all or significantly more than their partner, and another 49 percent said they contributed slightly more or equal to their partner. In this way our PFCs straddle two roles: their “conventional” home/child care role while taking on their “unconventional” breadwinner role. Solution: Women need to thoughtfully redefine the breadwinner role into a more sustainable work model than the historical one that men have followed for tional role, but by doing so, women give permission to others to do likewise. years. Some women may want to (or have to) step into a 60+ hours-a-week job. But given that so many female breadwinners still hold responsibility for home/child care, might not now be a good time to ask if there is a middle role, rather than a work-only or family-only dichotomous choice in roles? During this transition, we might want to consider a partnership where spouses/partners can share work and caretaking. Working 9 to 5, and 5 to 10 Tension: While 59 percent of our women claim the role of breadwinner, they still continue to contribute significantly to childcare and homecare. When asked about homecare, 28.7 percent of PFCs claimed they On the rise, but not the top Tension: Whether our respondents were their households’ breadwinners or not, neither group is slowing down their careers: all strongly denied turning down promotions, taking a demotion, keeping a low profile to minimize advancement possibilities, or actively avoiding promotions. In fact, both PFCs and non-PFCs believed their contributor role had a positive impact on their other roles as a parent, partner, and community citizen. PFCs claimed being the breadwinner actually had a positive impact on their careers and on their confidence in making a contribution as a “worker.” in our sample, after an average of 20 years in the workforce, only 17 percent of the respondents achieved VP or higher positions in their organizations. Solution: A critical player in seeking more sustainable, egalitarian, and satisfying roles for male and female breadwinners is the employing organization. As the battle for top talent continues to amplify, organizations need to provide family-friendly policies that will support both male and female breadwinners. Our sample responded positively to all possible flexible work arrangements when asked, “how can employers support you in managing multiple roles?” In descending order, our breadwinners want the option to work at On one hand, stay-at-home dads have been derisively called “trophy husbands” and “arm candy,” and on the other hand, they have been praised as “the perfect husband.” home, sabbaticals after blocks of employment, longer maternity leaves, and technology to minimize commute and travel time. As breadwinner roles become normative for women as well as men, family-friendly policies will benefit all employees and organizations alike, creating a world without trophy husbands, alpha females, and arm candy. n Management Magazine l Spring 2013 While both our PFCs and non-PFCs denied engaging in actions that purposefully slowed their careers down, the numbers of women at the top of American organizations contradict their ambition. In the U.S., women constitute nearly half of the workforce, yet they hold just 3.2 percent of CEO positions and 16 percent of board seats in Fortune 500 companies. Even 17 A sweeter pill MANAGING HEALTH CARE WITH A LARGER DOSE OF BUSINESS by Shana Sullivan A Management Magazine l Spring 2013 s health care continues to be a lodestone for the nation and a growing multibillion-dollar sector of the economy, the business of health care deserves greater attention in both the national conversation and in the higher learning one. In Boston, four out of the top five employers are hospital systems. The state of Massachusetts led the way for the nation by providing almost-universal health insurance coverage through the Health Reform Act passed in 2006, but now the region faces huge challenges with the affordability of these services, which mirrors the skyrocketing health care costs across the nation. As health care providers and payers grapple with these challenges, they are looking for new approaches to develop leaders who can succeed in this environment. Enter the MBA as a growing preference for preparing health care leaders to take the place of health care administration master’s degrees. We spoke with Catherine Robbins, who directs a new Health Care MBA at Simmons School of Management and is a former vice president at Partners HealthCare system about the need for health care leadership. 18 Q A How has health care management education evolved? As hospitals and health care providers became more complex during the 1950s and 1960s, universities and colleges developed specialized master’s degrees to educate health care leaders and managers. These specialized master’s degrees reflected the belief that health care is different from most industries. Because of deeply held societal values about health care, government-set rules for providing services and for offering insurance dominate business practices in the industry. Many of the provider and payer organizations were organized as non-profit corporations, with a different, but complex set of governance and financial objectives. Most of the specialized degrees to educate health care provider, payer, and government leaders came out of a public health perspective. Graduates of these programs held titles such as master’s in public health or master’s in health administration. These master’s degrees were not generally based in MBA programs. Of course, historically, many hospitals were led by physicians, who often learned management on the job. Q A What are the skills that are needed in health care right now? Q A What are the differences between business degrees and health care degrees? Virtually every mid-level and higher management position, including clinical supervision, requires a master’s degree with some administrative or management content. From 2003 to 2010, the number of master’s degrees in health care administration grew by nearly 10 percent and the number of MBAs grew by 5.7 percent annually. The master’s degree of choice for individuals seeking a career in the broad health sector of the economy in areas such as pharmaceuticals, medical devices, financial services, and consulting is the MBA, sometimes with a few courses on the unique aspects of the health care industry. About 10 percent of all Association to Advance Collegiate Schools of Business accredited MBA programs offer a health services or hospital administration sub-discipline. On Management Magazine l Spring 2013 National and state-level health reform will place a premium on well-prepared managers. Cost management skills are vital for health care providers, payers, and government going forward. Overall superior leadership skills and a fully integrated understanding of the financial, strategic, organizational, and policy challenges that affect today’s health care environment are the most important skills needed to successfully run a health care organization. Developing fundamental business skills and leadership competencies in areas of accounting, analytics, quantitative analysis, marketing, and negotiation/communications are some of the qualities needed by leaders in health care. Leadership, analysis, and decision-making competencies are traditionally part of an MBA education. However, to succeed in health care, leaders also need deep and spe- cific understanding of health care performancebased accountability, social responsibility, and health industry knowledge. There are more than 5,000 registered hospitals in the United States. So this means there are thousands of health care leadership positions across the United States. 19 Rx National and state-level health reform will place a premium on well-prepared managers. a local and national level, health care provider, payer, and government employers are now also looking for the big-picture business skills of an MBA. But most of them do not want to give up the strong health care emphasis of the health-focused master’s training provided by an MHA or MPH. A general MBA, even with three or four health care courses offered in some programs, just doesn’t give students the health care specific background they need. Aspiring health care managers have been forced to choose between master’s degrees that provide the depth of health care exposure they need to manage the complexity of their organizations and the analytic and leadership skills from a more general MBA program. Until now. Q A Management Magazine l Spring 2013 How does the new Simmons Health Care MBA fit into this? 20 Many students working in the region’s health care providers or payers want to continue to work while getting a master’s degree and, for many, the MBA is the preferred degree. There are local options for a health care concentration available to these students at other universities, but none of these MBA programs has the deep health care emphasis that provider, payer, and government leaders say they also want for their aspir- ing leaders. We have designed the Simmons Health Care MBA to fill that gap. Ours is the only MBA program designed for working women and men that has such robust coverage of health care issues. Our program is specifically designed to provide the strategic vision and well-rounded competencies required for leadership positions in providers such as hospitals and ambulatory care, health insurance management, and government health services oversight. Simmons already has strong graduate programs in Health Studies and in Management, so it can capitalize on the strengths of each program and build synergies between them, and our faculty members have health care leadership experience in both a practical and academic sense. Q A How has the first semester been received? The first semester in this program has been very well received by our first class, which started in January 2013. Class members come from both clinical and non-clinical backgrounds, and have an average of nine years working for providers, payers, and other health sector employers. The combination of a rigorous MBA with a heavy emphasis on health care specific courses is resonating well for these professionals, who can pursue their master’s education while continuing to work. n Blocked from the top GENDER BIAS IS STILL HOLDING WOMEN BACK by Špela Trefalt, Deborah Merrill-Sands, Deborah Kolb, Fiona Wilson, and Suzanne Carter top earners grew from only 4 percent to 8 percent and the percentage of women serving as board directors increased from only 12 percent to 16 percent. Even in non-profit organizations, women’s representation in leadership has remained stalled at about 20 percent. This persistent leadership gap is a significant cause for concern not only for women with leadership aspirations, but also for organizations that need strong and diverse leadership teams to compete successfully in a rapidly changing and uncertain global economy. Recent studies by the non-profit research organiza- Management Magazine l Spring 2013 C hange is ever so slow for women in business leadership. The leadership gap between men and women has proven to be stubbornly resilient despite organizations’ successes in dismantling most forms of overt discrimination, achieving near parity for women with men in middle management, and investing in women’s initiatives and organizational change efforts. In ten years, the percentage of women who are corporate officers in Fortune 500 companies inched up a mere two percentage points from 12 percent to 14 percent. The percentage of women among 21 Management Magazine l Spring 2013 In standardized leadership assessments women are consistently rated higher than men on the majority of leadership skills needed to run effective organizations. 22 tion Catalyst of Fortune 500 companies in the United States and by McKinsey of major businesses in Europe showed a significant correlation between greater representation of women in executive and board positions and stronger financial performance. Catalyst found, for example, that companies with the highest proportion of women corporate officers outperformed those with the lowest proportion by 5 percent when measured by return on equity. In addition, women bring a wealth of leadership talent to organizations. In standardized leadership assessments women are consistently rated higher than men on the majority of leadership skills needed to run effective organizations, such as setting high standards, driving for results, motivating staff, and building highperforming teams. How do we unencumber women’s paths to leadership? How do we close the persistent leadership gender gap? How do we ensure that organizations are leveraging the fullest contributions of their diverse pool of leadership talent? Research conducted by Simmons’ Center for Gender in Organizations and our affiliates suggests that the gains achieved in gender equity are modest because most organizational change efforts target overt, obvious aspects of gender bias and ignore the more subtle gender dynamics deeply embedded in an organization’s culture and in work norms that shape women’s paths to leadership. These dynamics, often called second generation gender bias, are deeply embedded in the culture, norms, and work practices in organizations, playing out below the surface of formal systems of hiring, promotion, and compensation. Second generation gender dynamics Second generation gender issues cover those work cultures and practices that appear neutral and natural on their face, but can result in differential experiences for and treatment of diverse groups of women and men. Ely and Meyerson identify several different types of second generation practices that create gender inequities in organizations: Gendered Jobs. Gender typing of jobs occurs when some occupations are seen as a good “fit” with feminine characteristics and others with masculine characteristics. These characteristics can be formally written into job descriptions and/or become the informal criteria by which people are moved into jobs. Gendered Work. Fletcher describes the invisible work that women often do, but that does not get noticed or recognized. Gender and Leadership. Gender can impact who is seen to have leadership potential as well as assessment of performance in those roles. Gender and the Ideal Worker. As women have joined men in the workforce, the issues associated with having both a challenging work life and a fulfilling family life have come to the fore. Gender and Social Capital. Ties to powerful or high-status others lend standing to an organizational member and are associated with higher promotion rates and better performance evaluations. Networks and relationships Networks and good working relationships serve as important resources in organizations. They can be a source of emotional support, feedback, political advice, information about opportunities, and protection. Therefore, relationships can be particularly important when dealing with second generation gender bias. A study of financial services employees, for example, showed that women get less work-related help from powerful bosses with whom they have ties than do white men. The argument is made that this differential treatment may be a consequence of cultural beliefs that rank women below white men and thus Opening paths to the top • Men and women managers responsible for developing leadership talent need to deepen their understanding of second generation gender bias and its differential impact on men’s and women’s careers. • Senior men need to be strategic partners in change. They need to be actively engaged in the leadership development of women and to take a leadership role in helping their organizations appreciate the performance benefits that derive from gender diversity in leadership teams. Our first critical finding regarding success in • Women bosses and mentors need to complement dealing with these issues the socio-emotional advice and support that they give mentees with active sponsorship and strategic was that help received advice. from men was related to • Women pursuing leadership need to be strategic in perceptions of higher sucseeking out sponsors as well as mentors. cess whereas help received • Women pursuing leadership need to invest in learnfrom women was not reing more about second generation gender issues lated to perceptions of and how they shape women’s paths to leadership. success. Further, we found that while help from individuals in the professional realm and from those within the organization was positively related to perceptions of success, help from personal circles and from mentors outside of the orMost respondents reported that they personally have ganization actually detracted from perceived success. experienced one or more types of second generation Also, it was male bosses, not female bosses, whose gender issues. The issue that most women experienced help was most likely to be experienced as effective. was “being asked to put work before all else” (89 perWe found that second generation gender bias is still cent), followed by the issue of doing “invisible work” experienced by women in their organizations. (86 percent). Importantly, the majority of women in The difference between perceived amount of help our sample (59 percent) did not opt out of leadership received and the perceived success in dealing with secopportunities due to feeling they did not fit their orgaond generation gender issues is particularly intriguing nization’s model of effective leadership. given that these are self reports from the women in Women differed widely in the amount of help they the sample. reported receiving from their networks in dealing We make sense of these results in three ways: it may with second generation gender issues—for each issue be that the kind of help women mostly seek out and their responses spanned the entire range from 1 (no receive is emotional support; even if women receive help) to 5 (significant amount of help). actionable advice, it has to be firmly grounded in the Women also reported getting the most help from context of the specific organization in order to be usetheir spouses/partners (the average was 4.44 out of ful; success in dealing with most second generation 5). In addition, they reported getting more help from gender issues was not related to help with those parwomen than from men across both their professional ticular issues, but to help overall. and personal networks, and getting more help from Finally, the fact that more senior than junior women mentors than from bosses or peers. in our sample experienced second generation gender Interestingly, a notable proportion of respondents, bias, but did not report any more success in dealing ranging from 5 percent to 25 percent depending on with most of these issues, suggests that these senior the issue, indicated that they had experienced a spewomen achieved organizational success not so much by cific gender issue but had not attempted to address it. overcoming gender issues but by adjusting to them. n make investment in women seem less worthwhile. Therefore, for women to benefit from their networks (measured by early promotions), they need to borrow social capital— they need to be connected with powerful others who increase their legitimacy and counteract the view of women as “risky.” Experience of second generation gender dynamics Management Magazine l Spring 2013 23 24 Management Magazine l Spring 2013 From Manila to Manhattan ENTREPRENEURSHIP ACROSS BORDERS by Liz Meyer T he “immigrant entrepreneur” has become a major political issue now on Capitol Hill and a driving force behind the American economy. Forty percent of Fortune 500 founders are immigrants. Teresa Nelson, Simmons School of Management Professor and Elizabeth J. McCandless Chair in Entrepreneurship, discussed the topic at the Simmons Leadership Conference with Josie Natori, CEO of the Natori Company, a women’s clothing and lifestyle brand based in New York, to discuss Natori’s entrepreneurial journey. pinnacle of her Wall Street career, Natori couldn’t tap into what she saw as an essential element—a passion for the work—and she sought more control over her career and destiny. Years before, her grandmother, a determined and strong-willed woman, emphasized the importance of independence and had always told her, “Don’t put yourself in a position where you have to depend on anyone.” Natori and her husband set out to heed that advice to become business owners. They looked at a wide range of options including franchises, service compa- Mistakes are essential to being an entrepreneur . . . They will lead you to new ideas or better ways of doing something. - Josie Natori nies, and retail outlets. A friend sent her two Filipino embroidered shirts that Natori brought to Bloomingdale’s on a whim. The Bloomingdale’s buyer suggested she make the shirt longer, converting it into an elegant nightshirt. In 1977 from that tailoring adjustment, the Natori Company was born. The brand found its niche transforming mundane sleepwear into elegant lounge wear. Natori products became available at high-end department stores such as Neiman Marcus, Saks Fifth Avenue, and Nordstrom’s. Defined by its “East meets West” sensibility, the lingerie, then ready-to-wear, and now lifestyle brand, is noted for its color, silk, and stand-out quality. What is important to note here, Nel- Management Magazine l Spring 2013 The social signature of Natori’s native country, the Philippines, includes strong matriarchal elements, and women have historically been accepted as business founders and owners there. As a child Natori observed her grandmother become a successful businesswoman owning everything from pharmacies to ice plants to coconut plantations. Another model for entrepreneurship was her father, who created from scratch the largest engineering firm in the Philippines. Natori came to the United States for college, which led to a remarkable career on Wall Street with Merrill Lynch where she became the first woman vice president of investment banking in the company. Yet at the 25 Entrepreneurs home in on opportunities that present themselves – finding the gap between what customers need and what products and services can be credited is the key to new business launch. - Teresa Nelson son said at the conference, is the way entrepreneurs home in on opportunities that present themselves— finding the gap between what customers need and what products and services can be credited is the key to any new business launch. Most people do not realize that national economies are often dependent on entrepreneurs and small business owners. In parts of Asia, including the Philippines, this is particularly true. Natori’s youth in the Philippines had a huge influence on her path, even after she emigrated to the United States, and this continues today. Early on she built her manufacturing facility in the Philippines though her company headquarters are in New York City. She continues to rely on her multi-cultural identity, as the Philippines has been her base to globalize her retail and wholesale business in Manila with successful outreach now ongoing in Japan. Natori highlighted the “monumental” amount of risk that entrepreneurs assume and that every decision or transaction is a gamble. She experienced many ups and downs, extreme success and loss, great variability and unpredictability. “On Wall Street, your word was your bond. In retail, an order could be signed in blood, and it was still not Josie Natori’s lessons for entrepreneurs Have a distinct advantage. evolve and never become complacent. Seek out new challenges—and love them. Listen to the experts in your field—they have invaluable opinions. Understand your strengths—play to them, don’t mitigate them. Spend money for the long term—not always just for the bottom line. Embrace your background—this will provide a point of view that is Management Magazine l Spring 2013 Always 26 different from the next person’s. pay it forward. Make friends—and be helpful to people who seek you out and… Passport to success For the past three years, Simmons Professor Teresa Nelson, with colleague Jeff Gross, has been exploring the immigrant entrepreneurship roots of new business development in the United States from both an economic and social-community perspective. Many know about the immigrant story that built the modern U.S. throughout the 1800s, but few know that 40 percent of current Fortune 500 companies, and 25 percent of all science and technology firms now operating in the U.S., were founded by immigrants. Thirteen percent, or forty million, U.S. residents are now foreign born—up from fewer than 5 percent in 1970— and these foreign-born residents are starting businesses at twice the rate of natives. Data shows that skilled migrants beat college-educated natives in starting companies and commercializing technology and that immigrant-owned businesses produced 16 percent of all U.S. business income in 2010 (up from 11.5 percent in 2000). Beyond the numbers, immigrant entrepreneurs shape and build communities from the bottom up and the top down. In an academic paper, awarded a best paper prize for public policy at the New York University Conference on Social Entrepreneurship in 2012, Nelson and Gross stated, “For immigrants across the economic spectrum, starting a business is increasingly the path to economic advancement. Im- binding,” she says. “I had a major order cancelled in my second season, and it was devastating, but a lesson well learned. I had shiploads of damaged goods arrive —inventory held for months due to political unrest in my home country”—yet the company took the good with the bad and persevered. Her father had taught her what goes up must come down, but to never give up. Perseverance was the backbone to her success. In addition to perseverance, Natori’s relentless entrepreneurial spirit always led her to want to create something new for her business. But one must be willing to fail; mistakes are essential to being an entrepreneur, she says. However, they will lead you to new ideas or better ways of doing something, she says, if you keep your eyes and your heart open. For example she wanted to build a Natori fragrance, so she ended up unknowingly trying to compete with cosmetic empires, such as Estée Lauder and L’Oreal in the fragrance business, even though she had zero knowledge of this niche industry. Natori took a big financial hit. migrant community stakeholders are working to keep up with and leverage this rapidly evolving social and economic reality. “And here’s where it gets really interesting: the public and private sectors are active participants now working out innovative approaches that target this immigrant entrepreneurial spirit and the particular challenges that may be involved. States and cities around the U.S. are shaping ‘New American’ programs to support community economic development and attract these business innovators. Many see here a powerful force for simultaneously addressing immigrant integration, socioeconomic mobility, and community economic benefit.” She swallowed her pride and admitted she was wrong. But with her perseverance, Natori didn’t give up, she just changed her course. The humbling experience made her realize her own limitations and that at times entrepreneurs need to depend on others or seek advice, especially from the experts. After licensing with a perfume industry insider, Natori’s dreams materialized and she launched her fragrance in 2009. At age 66 retirement is not on Natori’s horizon and her curiosity and passion continue to evolve and grow stronger. A successful entrepreneur should always be curious, she says. She is also starting to think of her company as a legacy, involving her son Ken in the business at the managerial level (he has been responsible for the build-out of the e-commerce site). Her next evolution will include the launch of a full range of accessories—from small leather goods, to jewelry, to handbags—and come August, Natori hopes to have opened her first store in New York City. n On April 2, 2013, more than 3,000 women convened at the Seaport World Trade Center for the Simmons Leadership Conference. Simmons College has hosted this annual event for the past 33 years, which draws women from all over the world, from more than 300 companies and organizations, representing every industry and all levels of business. Women of Influence, this year’s theme, featured exceptional women who have shaped their own professional destinies, but also inspired others to strive for greatness. The day opened with inspiring remarks from Sallie Krawcheck, one of the most senior women on Wall Street for more than a decade. The day closed with Viola Davis, an acclaimed actress who recently galvanized her acting career in the blockbuster movie The Help. In between, an equally impressive lineup of speakers shared their personal and professional journeys to success. Management Magazine l Spring 2013 Simmons Leadership Conference 27 Principled Leadership Leading with dignity TEN ESSENTIAL ELEMENTS FOR ADDING AN IMPORTANT DIMENSION TO LEADERSHIP by Donna Hicks D ignity is the state or quality of being worthy of honor or respect. Everyone deserves to be treated with dignity, and in the workplace it is necessary for managers to maintain an environment that gives employees a sense of safety and inclusion. Acceptance of Identity Think of people as being neither inferior nor superior to you. Interact without prejudice or bias, accepting the ways in which race, religion, ethnicity, gender, class, sexual orientation, age, and disability may be at the core of the other people’s identities. We may differ in status and access to power, but we are all equal in dignity, no matter who we are. Inclusion Management Magazine l Spring 2013 Make others feel that they belong, whatever the relationship—whether they are in your family, community, organization, or nation. 28 When people feel marginalized in the workplace, all sorts of divisions occur that can undermine productivity. Everyone wants to be a part of decisionmaking that directly affects his or her lives. To maintain a positive environment of belonging, err on the side of inclusion. Safety Put people at ease at two levels: physically, so they feel safe from bodily harm, and psychologically, so they feel safe from being humiliated. With dignity violations or abuses of others’ dignity in the workplace, people often don’t feel safe to speak up. There is no acknowledgement that they have been wronged and they feel humiliated and helpless. Instead of understanding that they have been mistreated, people often feel ashamed, as if there were something wrong with them. Acknowledgement Give people your full attention by listening, hearing, validating, and responding to their concerns, feelings, and experiences. People need acknowledgment for the dignity violations they suffer. If you are treated badly, it is important that someone says to you, “What happened to you was wrong. No one should have to go through that.” As leaders in the workplace, it is crucial that we understand this fundamental human need. Recognition Validate others for their talents, hard work, thoughtfulness, and help. Be generous with praise, and show appreciation and gratitude to others for their contributions and ideas. In one of the corporations that I have worked, an employee told me that she didn’t want to say anything about the dignity violations she was experiencing from her boss, because it would be “career suicide.” Recognition of the need to be seen, heard, and validated is what all human beings yearn for. When recognition is not given, underground networks develop, where the perpetrator of the violations is gossiped about. The energy behind a dignity violation has to go somewhere, and the underground gossip network is rife with examples of being treated badly. It is an all-too-human impulse to want to get back at the person who harmed you—the desire to get even is very tempting. Fairness Treat people justly, with equality, and in an evenhanded way according to agreedon laws and rules. People feel that you have honored their dignity when you treat them without discrimination or injustice. It benefits any manager to create a culture inside the workplace where their employees feel they are treated in a fair and evenhanded way. All too often, employees just tolerate the injustices in their work environment, because they fear reprisal if they speak up. Everyone yearns to be treated fairly no matter who they are. Making sure your policies are fair is the first step toward a positive work culture. Benefit of the Doubt Treat people as trustworthy. Start with the premise that others have good motives and are acting with integrity. Understanding Believe that what others think matters. Give them the chance to explain and express their points of view. Actively listen in order to understand them. It is all too common to rush to judgment about others, especially when we don’t agree with them. Resist Independence Encourage people to act on their own behalf so that they feel in control of their lives and experience a sense of hope and possibility. How tempting is it to micromanage your subordinates? It is something we have to fight if we want to see our employees take ownership of their tasks and flourish in the workplace. Accountability Take responsibility for your actions. If you have violated the dignity of another person, apologize. Make a commitment to change your hurtful behaviors. When people feel like they have had their dignity violated, they deserve to have the person who harmed them apologize for their wrongdoing. As leaders, it is important that we model this behavior. It is often the case that when people in positions of power take responsibility for their actions, their followers are moved and quickly forgive them. It is when leaders ignore or cover up their transgressions that deep resentment and disrespect develops. When we see our leaders admit they have done wrong, we are filled with admiration. It models a behavior that helps our employees see that they, too, could be capable of taking the high road. One thing to recognize about learning how to honor the dignity of others is that it doesn’t cost anything—it is not necessary to call in an expensive consulting firm to identify the source of the problem. All it takes are leaders who are aware of the importance of dignity, and act, themselves, in a dignified way. n Management Magazine l Spring 2013 Assume your employees have good intentions and that they mean well, no matter what. Research has demonstrated that the attitude you bring to an interaction with someone can strongly affect the way the person feels. If you assume people are trustworthy, they are likely to act like it. the impulse to be right, and seek a deeper understanding of the feelings and experiences behind a person’s point of view. 29 Briefcase Closing the gap? GOOD NEWS AND BAD NEWS FOR WOMEN ENTERING THE WORK FORCE Changes in the number of women in selected professions since 1960 Information State & federal government Other services Manufacturing Financial services Millions 70 60 50 Leisure & hospitality 40 Professional & business services 30 Local government 20 Trade, transportation, & utilities 10 Education & health services 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 0 Median income for male and female workers from 1955 to 2005 in constant dollars Management Magazine l Spring 2013 $35,000 30 $30,000 $25,000 In 50 years, the gender salary differential shrank from 40% to about 20% Men $20,000 $15,000 $10,000 Women $5,000 $0 1955 1965 1975 1985 1995 2005 Median income for male and female workers Data contributed by Gary Gaumer Bookshelf The Libra Solution Lean In Shedding Excess and Redefining Success at Work and at Home Women, Work, and the Will to Lead By Lisa D’Annolfo-Levey By Sheryl Sandberg A F acebook COO Sheryl Sandberg’s book Lean In: Women, Work, and the Will to Lead examines the lack of women in leadership positions in the United States, and encourages women to seek challenges, take risks, and make their voices heard. In a roundtable discussion on WBUR’s Radio Boston, Simmons School of Management Dean Cathy Minehan joined Bentley University’s Betsy Myers and Harvard Law School Professor Nancy Gertner to discuss the book and its message. Minehan, former president and CEO of the Federal Reserve Bank of Boston, offered the following comments: “I think ‘leaning in’ and taking responsibility for the position that you want next is good advice. There’s a culture associated with every association, and you need to be sensitive to what that culture is and understand it. Nobody’s going to come find you, you have to find them. You need to be a little brave, you need to be willing to determine what’s a silly risk and what isn’t. But I think it’s still good advice to try to see what the next step is and to take it. “We need a more productive workforce in this country, and that means making use of every good brain we have around. When Sandberg writes about getting big companies to lean in, she’s talking about them making changes in the workplace that enable women to get ahead—conquering that subtle discrimination that goes on, those biases that are there that sometimes people don’t even recognize.” — Alix Roy Management Magazine l Spring 2013 naïs Nin once stated “I... choose a man who compels my strength, who makes enormous demands on me, who does not doubt my courage or my toughness, who does not believe me naïve or innocent, who has the courage to treat me like a woman.” Her statement could be the voice of any woman in the 21st century but it is a reflective statement that could be the voice of anyone, man or woman; it is about a partnership. In her book The Libra Solution, Simmons graduate, Fortune 500 company consultant, wife, and mother of two Lisa D’Annolfo Levey, writes about finding balance with your partner, equality in your marriage and at work, and the complexities inherent in combining professional work and engaged parenting. It discusses gender bias and the struggles women face at work to get ahead. Levey provides a breakdown of the things that women and men both do that are self-defeating and counter-productive and explains how using the Libra work-life-parenting model can help change all of that. There is a better way, Levey says, since “one plus one equals more than two,” and “families that follow the Libra approach and the companies that employ them see benefits in three key areas: choice, flexibility, and fulfillment.” The Libra approach offers working families a solution; it shows men and women a way of parenting, working, and living that allows them to enjoy their lives. It provides a model approach so families no longer have to feel overwhelmed by the too-fast pace they have been stuck with. — Annette Battistone 31 Breaking the Glass Ceiling Breaching the ranks WORK HARD BUT DON’T STAY TIED TO YOUR DESK by Sandra Fenwick A Management Magazine l Spring 2013 Sandra L. Fenwick serves as president and chief operating officer of Boston Children’s Hospital. Her responsibilities range from operations of the hospital, to management of patient care programs and capital budgets, to community missions. She holds a Bachelor’s degree from Simmons College and an MPH from the University of Texas School of Public Health. 32 s women seeking to advance in our careers, we’re often told that if you want to reach the highest ranks of leadership, you have to work harder than your colleagues—that’s how you gain recognition and move up. When I reflect on my career, both at Beth Israel and now at Boston Children’s hospitals, I realize that no one, and certainly not women, can succeed without working hard; it’s the minimum requirement for success. It’s common to think of hard work as keeping your head down and your nose to the grindstone. I thought this way for a long time, and I think this is a prevalent attitude among women executives in particular. However, there are limits to this; no leader can succeed who follows that formula alone. My advice is to get out from behind your desk. Meet people from other organizations and industries. Far from detracting from the task at hand, I learned a great deal from seeing the world from other perspectives. Leaders from other companies and even industries are facing many of the same challenges you’re confronting—whether it’s stronger competition, the pressure to develop new products or services or reduce costs. I gained valuable insights from how they are approaching and solving complex problems. If you don’t get out, it can be like operating in an echo chamber. It’s essential to recognize changes and trends that are taking place beyond our own walls. These developments will eventually make an impact for you and may inspire you. As an example, the focus in health care these days is about costs. But I started hearing about how rising health insurance premiums were affecting other businesses years ago through my service on the board of the Massachusetts Taxpayers Foundation. It was clear that rising health care costs were unsustainable and for Boston Children’s to continue to meet its broad mission it needed to adjust and be part of the health care cost solution. The hospital had to change how it was delivering care to become more efficient and remain competitive, while not sacrificing its renowned high quality care. I was able to use information gathered outside the hospital to engage our Board, clinical leadership, physicians, and other staff about what it would take, to get their buy-in and to get them to start thinking differently. As a result, we have cut hundreds of millions of dollars in costs and there are more than 200 grassroots projects going on throughout the hospital to reduce utilization of care while improving quality. Beyond helping you to work smarter, colleagues from other industries, service on boards, and networking can open new doors and opportunities and become the basis for your intelligence gathering and support network. Early on in my career, I started socializing with a small number of women executives in health care. Over the years, we have learned a great deal from each other and helped each other navigate and problem solve in our respective organizations. We have supported each other when confronted with difficult challenges and choices. No one can go it alone. Build a strong network early on—it will help you gather information, glean new insights, and charter a new course for you and your organization. Connections made outside the office will be invaluable to you throughout your career, and will help propel you even higher in your chosen field. n DESIGN: SAMANTHA MURRAY The homework you do in this class may end up on TV. Each year, through the National Student Advertising Competition, a corporate sponsor provides the opportunity to create a major marketing campaign for one of its products. Students research the product and its competition, identify potential problems, and develop an integrated communications campaign for the client. Each student team then “pitches” its campaign to a panel of judges, competing against other student teams. Here’s a chance to: Analyze your audience Develop creative & media strategies and plans Produce TV commercials, radio spots, print ads, & social media tactics Gain ‘real world’ experience, build a portfolio, add experience to your resume MGMT-232-01 Integrated Marketing Communications – Fall 2013 To apply for a role on the student team, contact: Dr. Richard L. Cravatts Simmons School of Management 617 521-2412 [email protected] Management Magazine l Spring 2013 • • • • 33 300 The Fenway Boston, MA 02115 Non Profit US Postage PAID Boston MA Permit No 57589