Category Archives: Video Lecture

CEOs and investment bankers give a rare glimpse into the IPO and M&A process

This event was hosted by Neal Dempsey, the Foster School’s visiting 2013-2014 Edward V. Fritzky Chair in Leadership.

You’ve probably seen the headline; “Major company goes public.” Perhaps you’ve even heard the breathless analysis that follows when said company’s stock prices decrease. What you’re probably less likely to hear or read in the news are the debates between CEOs and investment bankers, the strategy CEOs use to discuss going public with their employees, and how bankers negotiate stock price. These are the exact conversations current Fritzky Chair Neal Dempsey had in mind when he invited Vice Chair of JP Morgan Chase Cristina Morgan, former Eloqua CEO Joe Payne, Guidewire CEO Marcus Ryu and Head of Capital Markets at JP Morgan Chase Mike Millman to participate in a panel discussion on the IPO and M&A process. Moderated by Foster Professor Jennifer Koski, the panelists gave what is probably the most inside view possible of going public. Below are a few of the questions they tackled:

How do companies decide they’re ready to go public?
All of the panelists agreed that there are several things you must take in to consideration before making a final decision. For Ryu, it is asking one’s self, “Why do you want to go public?” Payne agreed, adding “Going public as a sole goal is an empty goal.” When preparing to take Eloqua public, Payne said that he and his colleagues spent a lot of time thinking about their customers and how they would feel about the move. Speaking from the investment bank perspective, Morgan argued that “the worst thing you can do is take a company public before they’re ready.” Furthering this point, Millman said that companies must consider three points before they go public; 1) Currency 2) Branding and 3) Capitol.

How do you maintain enthusiasm among your employees during the IPO process?
Ryu believes it is important for companies to operate with a long-term outlook. Since the stock market isn’t exactly the most steadfast entity, he came up with a two-pronged strategy for communicating with his employees about the IPO process: 1) Talk down the IPO and 2) Get everyone to understand the fickleness of the stock market. Having survived the dot com bubble of the 90s, when CEOs gained —and lost— millions of dollars in a matter of months, Payne had a similar revelation. “The issue of stock prices and IPO is only as important as you make it,” he stated in agreement with Ryu.  In fact, Payne and Ryu said that they both designated a few minutes during staff meetings to answer questions about the IPO.

What is the biggest source of contention when going public?
When discussing the relationship between investment bankers and entrepreneurs, Morgan said “We’re [the investment bankers] representing the buyers as well as the sellers” and that all involved parties act as each other’s “checks and balances.”  Adding, “[There’s a] natural suspicion that the investment bank is slightly more in league with the other side than with the company.” Simply put, bankers are predisposed to believe that the company is trying to get the stock prices higher while the company believes investment bankers are trying to get the price lower.
For Millman, there are three sources of contention:

1)      Evaluation- It’s difficult to educate the company’s board on the IPO.

2)      Employee selling- It can be very confusing for employees to know when and if they should sell.

3)      Fees- Banks will argue with each other on the best way to “divide the pie.”

Speaking to Morgan’s “natural suspicion” comment, Ryu admitted that he was initially skeptical of investment bankers. However, having gone through the IPO process, he now understands the importance of the work they do. Looking to Millman, whom he worked with when Guidewire went public, Ryu stated “I can say emphatically that the fee is well-earned.”

Watch the discussion in its entirety below:

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The art of failing

This event was hosted by Neal Dempsey, the Foster School’s visiting 2013-2014 Edward V. Fritzky Chair in Leadership.

art-of-failing-eventFailure is part of life. In fact, success often starts with failure. But that doesn’t mean it isn’t hard or painful. On January 21, a panel at the Foster School tackled the art of failing. The panelists were Steve Singh, CEO of Concur; Sean Dempsey, founder and general partner of Merus Capital; and Emilia Griswold, Foster MBA, Class of 2014. Bruce Avolio, professor of management and executive director of Foster’s Center for Leadership and Strategic Thinking, moderated the discussion.

The discussion covered a range of topics and often oscillated between risk, failure and success. It’s difficult to have real success without risk and the potential for failure. There was also an emphasis on the ability to adapt to change, particularly when faced with the potential for failure.

Griswold spoke about changing her strategy for finding an internship after several months of no success. Ultimately, she was successful in landing an internship because she approached her goal from a broader view and was willing to risk failure. She said this experience taught her three things:

  1. Focus on the goal. She came to the MBA Program as career changer. For her, conducting informational interviews with people who had successful career paths, not people who worked at a particular company, was most effective.
  2. Believe in yourself. If you’re trying to convince someone else you can do something before you have convinced yourself, it won’t work.
  3. Embrace risk. Look for opportunities that scare you—ones where you could actually fail.

In order to cope with risk, you have to possess the patience and persistence to work until it pays off. Dempsey said, whether you are building your career or a company, “You should be short-term impatient and long-term patient.” In other words, you have to keep moving forward on a day to day basis, but you also have to realize change happens over time. Persistence, even in the face of failure, is critical for success.

Trying to accomplish a goal too quickly can also lead to failure, especially if you don’t consider the big picture. Instead of making decisions based on the next 90 days, Singh, who has been the CEO of Concur for over 20 years, said he considers the impact of his decisions on the next five to ten years. He said he realized, “There are goals along the way, but there is no end goal.” For him, getting to success is a long-term process. He tells his team, “Your job is to define the world the way it should be defined. Not in the way that is best for you, not in the way where you get the most value out of it, but the way it should be.” Once you figure that out, he said, “You step back and think about how you get from here to there.”

When implementing what you’ve defined as the way the world should be, be prepared to face challenges and failure. Dempsey likened this process to being at the top of a black diamond ski run. From the top, it looks long and intimidating and there are obstacles to overcome, but he said, “The thing to do is only worry about what you can control.” From there, the strategy is to take it one step at a time.

The panelists also talked about how failing can be the ultimate teaching tool, and they pointed out that not failing is also risky—it means you’re not challenging yourself. Click on the video below to watch the entire discussion.

Investing in life

Gary Furukawa (BA 1981) is the chief investment officer for Freestone Capital Management, a wealth management firm. Recently, he spoke at the Foster School about his career path, gave an overview of the financial markets and shared his personal insights on a range of topics, including what Freestone looks for in potential employees, books to help you develop your own investing framework and more.

Furukawa started his career with Deloitte & Touche in Seattle as a Certified Public Accountant. In 1982, he joined Smith Barney as a financial consultant, eventually rising to senior vice president. In 1999, he founded Freestone. He has been a highly successful investor along the way, investing in a wide variety of asset classes: distressed real estate (1980s and again after 2008 crisis), private equity (early 1990s) and thrift conversions (1988-present). He was also an original angel investor in Amazon.com and aQuantive.

Top insights from Furukawa’s talk:

  • Most useful courses he took at the University of Washington: English/writing courses, sociology and psychology courses and behavioral finance courses. Furukawa said, “Learning about the flaws in the way you think is very powerful and will help you make better decisions.”
  • Your life = the sum of your decisions.
  • Through your education, you should try different things until you find something you really like. It should be something you have the potential to be good at.
  • Self-knowledge, obtained through reading, thinking and life, is the most important knowledge. Learning really starts after you graduate from college.
  • Wealth is primarily created three ways (in the U.S.): owning a business or owning stock in a successful business, owning real estate for a long time or inheriting money.
  • Your pay check funds your lifestyle, but in order to build wealth you have to save and invest your money.

Watch video highlights, which include his ideal employee traits, investment lessons, recommended reading and life insights.

Gary Furukawa was one of UW Foster School of Business Dean Jim Jiambalvo’s guest speakers at the annual Leaders to Legends Breakfast Lecture Series, which include notable leaders in an array of industries from greater Seattle and around the country.

Power of a game plan

Recently, Foster School students had the opportunity to hear from Steve Forbes and Rich Karlgaard, two of the powerhouses behind Forbes magazine. The topic of the talk was “The Power of a Game Plan.” It was an opportunity for students to ask Forbes and Karlgaard about the international and domestic business outlook and how they (students) can plan for the future.

Steve Forbes is chairman and editor-in-chief of Forbes Media. He has also authored several books; his most recent one is titled: Freedom Manifesto – Why Free Markets are Moral and Big Government Isn’t. He holds a BA in history from Princeton University.

Rich Karlgaard is the publisher of Forbes magazine and writes a biweekly column called Innovation Rules. He’s also an entrepreneur, an active angel investor, and sits on three outside boards. He’s also co-winner of the Ernst & Young Northern California Entrepreneur of the Year Award. He holds a BA from Stanford University.

Highlights from the talk included advice from Karlgaard that to be successful in business, you should know your strengths and then find people with complementary skills. Forbes also told the audience of mostly undergraduates to be prepared to feel adrift and lost for awhile when you first start working after college. It will be the first time your life won’t be structured by school.

Watch the entire talk.

The Power of a Game Plan from the Foster School of Business.

Organizational leadership

Bruce Avolio, executive director of the Center for Leadership and Strategic Thinking, led a discussion on organizational leadership on April 24, 2013 at the UW Foster School of Business. Panelists were Lt. Gen. Robert Brown, Phyllis Campbell and Brad Tilden.

LTG Robert Brown was commissioned into the Infantry in May of 1981 after graduating from the United States Military Academy at West Point. In 1986, LTG Brown completed the Armor Officer Advanced Course at Fort Knox, Kentucky and then attended graduate school at the University of Virginia, where he earned a master’s degree in education. Throughout his career he has held a variety of leadership positions, including Commander, 1st Brigade (Stryker Brigade Combat Team), 25th Infantry Division; Chief of Staff, US Army Europe and Seventh Army; and Commanding General, U.S. Army Maneuver Center of Excellence. LTG Brown transitioned to Joint Base Lewis-McChord on July 3, 2012, where he serves as Commanding General, I Corps.

Phyllis Campbell is the chairman, Pacific Northwest for JPMorgan Chase & Co. She is the firm’s senior executive in Washington, Oregon, and Idaho, representing JPMorgan Chase at the most senior level to clients. In her role, she manged JP Morgan Chase’s operations during a tumultuous time. She joined Chase shortly after it acquired Washington Mutual during the banking crisis. Previously, Campbell was the president and CEO of The Seattle Foundation, the largest community foundation in Washington. She has also served as President & CEO of U.S. Bank of Washington. She holds an MBA from the Foster School’s Executive MBA Program.

Brad Tilden is president and CEO of Alaska Air Group, the parent company of Alaska Airlines and Horizon Air. As CEO he leads the nation’s seventh-largest airline, with 9,600 employees, 60 destinations and 117 aircraft. Additionally, he oversees regional carrier Horizon Air and its 3,200 employees and 48 aircraft serving 39 cities. Previously, Tilden served as Alaska Airlines’ president. Before joining Alaska, he spent eight years with the accounting firm Price Waterhouse in its offices in Seattle and Melbourne, Australia. He holds an MBA from the Foster School’s Executive MBA Program.

The panel discussion was incredibly interesting and insightful. They covered a wide range of topics, including leadership obstacles, women in leadership positions, managing risk and more. Watch video highlights from the lecture.

Lt. Gen. Robert Brown, Phyllis Campbell and Brad Tilden were Foster School of Business Dean Jim Jiambalvo’s guest speakers at the Leaders to Legends Breakfast Lecture Series, which include notable leaders in an array of industries from greater Seattle and around the country.

Seeing the future with Ken Denman

Ken Denman (MBA 1986) holds the Edward V. Fritzky Chair in Leadership at the Foster School of Business. He spoke in March at the Foster School about his career path and latest venture, Machine Perception Technologies, a software-based company working to merge emotion detection and machine learning to take personal technology to a new level.

Denman has held myriad executive roles which have spanned large corporations, startups, emerging markets ventures and turnarounds. He led iPass’ successful initial public offering, and led the strategy work for monetizing Openwave’s patent portfolio and spinning off the operating units. He is also an engaged angel investor and board member with public and private board experience. Currently he is president and CEO of Machine Perception Technologies (MPT).

Watch video highlights, which also include a demonstration of Facet, MPT’s emotion detection software. The demonstration was led by Dr. Marian Bartlett, lead scientist at MPT.

Ken Denman was one of UW Foster School of Business Dean Jim Jiambalvo’s guest speakers at the annual Leaders to Legends Breakfast Lecture Series, which include notable leaders in an array of industries from greater Seattle and around the country.

Bruce Avolio TEDx video: Showing up for leadership

Bruce Avolio, executive director of the Foster School’s Center for Leadership and Strategic Thinking, spoke at TEDxUmeå on January 17, 2013. The theme was “Leadership, creativity and innovation” and Avolio’s talk was titled, “Showing up for leadership…Ta Dah!” In his talk Avolio discusses three types of leadership: leadership that grows people, leadership that sustains people and leadership that diminishes people.

When a leader grows people, she empowers them to take ownership and challenge conventions. Leaders who grow people share a common trait—they all had people in their lives who set extremely high expectations for them. When they failed to meet these expectations, they were supported and encouraged to get up and do it again, and this process was repeated over and over. As a result they developed the ability to transform other people into leaders.

Avolio shared examples of how people can show up for leadership. You can be a leader who grows people by:

  • Showing up with great expectations.
  • Showing up claiming leadership.
  • Showing up over and over.
  • Showing up with everyone.

Avolio said, “We can all grow a better world together. Why don’t we do it?”

Watch the 20-minute video.

Paradigm shifts and P4 Medicine

Dr. Leroy Hood, a pioneer in the systems approach to biology and medicine, spoke at UW Foster School in January 2013 about innovation, complexity, P4 Medicine—predictive, preventative, personalized, and participatory—and much more.

Dr. Hood has played a role in founding more than fourteen biotechnology companies, including Amgen, Applied Biosystems, Darwin, and The Accelerator and Integrated Diagnostics. He is a member of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. Of the 6,000+ scientists world-wide who belong to one or more of these academies, Dr. Hood is one of only fifteen people accepted to all three. Additionally, Dr. Hood has published more than 700 peer reviewed articles and currently holds 36 patents.

In a career of dramatic innovation, Dr. Hood has seen a number of paradigm shifts. He identified four common traits. Each paradigm change:

  1. Fundamentally altered how, in his case, scientists think about biology and the practice of biology.
  2. Faced enormous initial skepticism and, in some cases, actual hostility because there were perceived threats to the traditional way of getting things done.
  3. Forced the creation of new organizational structures—the bureaucracy that comes from existing organizational structures hurts the ability to change the way you think about something.
  4. Required enormous risk taking.

Watch the video below for more highlights from his talk, including how the Human Genome Project transformed biology, implications of P4 Medicine, and his thoughts on the future of systems biology.

Dr. Leroy Hood from Foster School of Business on Vimeo.

Leroy Hood was one of UW Foster School of Business Dean Jim Jiambalvo’s guest speakers at the annual Leaders to Legends Breakfast Lecture Series, which include notable leaders in an array of industries from greater Seattle and around the country.

Great manager vs. great leader

Guest post by Ben Flajole, Evening MBA 2014 and Evening MBAA VP of Alumni Affairs at the Foster School of Business

“If you’re up at a whiteboard listing all of the things that make a good leader, I don’t think many of you would put ’4.0 student,’ right?” With that remark, Eric Sprunk, VP of Merchandising and Product at Nike, saw most, if not all, of the crowd breathe a sigh of relief. As the featured speaker at the MBA Perspectives on Leadership event on January 10, Sprunk spent time discussing what, if not perfect grades, makes people great leaders.

Sprunk’s presentation on leadership at Nike highlighted some key differences between being a good manager and a good leader. To him, a good leader creates an environment in which people are encouraged and allowed to achieve their best work every day; a good manager makes sure the employees have what they need to be able to do that. He then referenced the traits he considers necessary for good leadership, which were defined by a student in a prior session as “soft skills”:

  • Courage: having authenticity and honesty in your interactions with others.
  • Energy: bringing great enthusiasm to your team and never asking for more from them than you are willing to give yourself.
  • Balance: knowing that burnout is real and that feeling like a good son, daughter, dad, mom, husband, and/or wife is crucial for producing your best work.

Ideally, as Sprunk stated, we’re able to be great managers and leaders simultaneously. However, that’s not always the case. While good managers generate good results, it is often good leaders that produce the best results by leading with vision, strategy, and having and exercising the traits listed above.

Watch the video below for more highlights from his talk.

Eric Sprunk, VP of Merchandising and Product at Nike from the Foster School of Business.

The MBA “Perspectives on Leadership” Speaker Series is organized by the Full-time and Evening MBAA and the Foster School’s Alumni team.

Learning how to lead

Guest post by Staci Stratton, Evening MBA 2014
She attended the MBA “Perspectives on Leadership” Speaker Series. The speaker was Colleen Brown, CEO of Fisher Communications.

Colleen Brown shared her thoughts on leadership and her personal journey to becoming CEO of Fisher Communications. She talked about how we are a combination of both predisposition and learning how to be a leader. She also said in many cases leadership arises out of necessity. For Brown, she was the eldest girl in her very large family and took on responsibilities like grocery shopping and laundry very early on. She said these experiences helped her to develop a “get it done” attitude she still has today.

She also shared her four important characteristics of leadership:

  1. Character: understand who you are and why you are who you are.
  2. Resilience: develop, if you haven’t already, the ability to get back up after rough periods, mistakes, etc.
  3. Commitment: be committed to who you are and what you believe in. It has the effect of being contagious to others.
  4. Continuity: develop consistency and continuity in your behavior, as this helps your people to know what to expect from you-no surprises.

Brown feels the most important decisions you make on a day to day basis are about PEOPLE, which is why it’s so important to know yourself and be consistent in your behavior.

Watch highlights from Brown’s talk. Here she covers the importance of consistency, Aristotle’s leadership insights, and how to minimize office politics.

The next speaker is Howard Behar, former President of Starbucks, on December 6. Learn more.