Competing for best mousetrap: Rice's biz plan showdown
From an answer to trash buildup in India to building a better, cheaper light bulb, here's a look at the 42 winning ideas that will compete for top prize at Rice's upcoming business plan competition.
FORTUNE -- What do an upscale men's barbershop chain and a vaccine to combat the pesky horn fly have in common? Both are among the 42 business ideas selected to compete in the prestigious Rice University Business Plan Competition.
Rice University's Jones Graduate School of Business
The competition received applications from 510 teams for one of the contest's coveted 42 slots, up 20% over last year's record number of entries. The competitors come from U.S. business schools including MIT, The Johns Hopkins University and the University of Arkansas, home of last year's winning team. The field also boasts eight international squads from countries such as Sweden, Thailand and Brazil.
The competition, which will take place April 14-16 in Houston, is a big draw for budding science and technology entrepreneurs, with entrants submitting business plans in categories from biotech to energy to IT.
Washington University in St. Louis and The University of Chicago's teams are both pitching concepts that involve using computer-assisted diagnosis (CAD) for the early detection of cancer. Meanwhile, The University of Cambridge in England team has a technology to make energy efficient LEDs (light-emitting diodes) up to five times cheaper than is currently possible. More
Just got promoted? How not to blow it
Only one in 10 newly appointed managers have received any training for the role, a study says. Here's a crash course on acing a promotion.
By Anne Fisher, contributor
FORTUNE -- Dear Annie: I just got an unexpected promotion to head of my department. That's the good news (I think). The bad news is, the previous boss was asked to leave the company, because he just couldn't meet the always-changing production and sales targets that top management handed down -- partly due to a lack of resources, including a staff reduced by about one-third since 2008.
I'm excited about the opportunity to turn things around, but frankly I wonder if I can. The head of my division told me I'm supposed to "hit the ground running," but I'd like to take at least a couple of weeks to rethink some of what we're doing now. Would that be a mistake? Do you or your readers have any suggestions on how to avoid my predecessor's fate? —Mixed Blessing in Minnesota
Dear MBM: First, congratulations on getting promoted, which is even tougher these days than it used to be. Only about 7% of U.S. employees moved up in their organizations in 2010, according to a survey by human resources research group WorldatWork. That's a decrease from 8.1% in the years before the recession.
At the same time, other evidence suggests that your worries are well-founded. For instance, global talent management firm Development Dimensions International (DDI), whose clients include dozens of Fortune 500 companies from Avon (AVP) to Verizon (VZ), recently polled 1,130 newly promoted managers and found that most were obliged to "sink or swim": Only one in 10 had gotten any leadership training or coaching.
About 60% said they were learning their jobs through trial and error, and 42% said they had no clear idea of what was expected of them, or what success in their new position would look like. More
Bud Selig: Ready to play ball
Major League Baseball's commissioner on the Mets and Madoff, Pete Rose, and labor problems in other leagues.
Interview by David A. Kaplan, contributor
Bud Selig at the Maryvale Baseball Park in Phoenix during spring training
FORTUNE -- Opening day is upon us, and with it the dreams of summer. Allan H. "Bud" Selig, 76, can't wait. He's been commissioner of baseball for 19 years, and he still rejoices in the rites of that first pitch. He's also pretty happy with the state of Major League Baseball: Revenue last year was a record $7 billion, up from $1.2 billion when he began. There's labor peace, and steroid scandals seem to have abated. What's left to worry about? For starters, the mess the New York Mets are in over the Madoff fraud -- its owners are being sued for $1 billion by the trustee representing the victims. Fortune talked by phone to Selig in his Milwaukee office. Edited excerpts:
Do you wish you had disclosed MLB's $25 million loan to the Mets sooner?
No. I've known [owner] Fred Wilpon for 32, 33 years and have great affection for his family. I'd do it the same way again. There was precedent.
Are press reports correct there won't be any more loans to the Mets?
Fred gives me daily updates, but that matter has not been discussed.
Does that mean that a request for another loan from MLB would automatically be rejected?
No. More
Biz school rankings leave minorities behind
Top business schools have become focused on improving their rankings to the point of sacrificing their diversity, says the head of a major MBA scholarship fund. How can they get back on track?
By John A. Byrne, contributor
(poetsandquants.com) -- Why has minority enrollment at the nation's 50 top business schools remained so persistently low, with virtually no improvement in more than a decade? Peter Aranda, the chief executive of The Consortium for Graduate Study in Management, is blaming B-school deans and admission officers -- specifically their obsession with rankings -- for the lack of progress.
Schools are so focused on grabbing students with the highest possible undergraduate grades and GMAT scores that it has hindered progress in diversity, he says.
According to the Graduate Management Admission Council, which administers the GMAT, the average score of an African-American in the last testing year was 431 -- 113 points below 545, the average score for all GMAT test takers. The average score for Hispanic Americans was 490 -- some 55 points below the average --while the average score for Native Americans was 500 -- some 45 points below the average.
"In general, our B-school environment has become overly focused on GMAT and undergraduate GPA. People who could complete the MBA and go on to have very successful careers aren't considered anymore because they might lower a school's rankings," says Aranda. More
Return of the headhunters
After steep declines in recent years, executive recruiting is continuing to pick up. Here are a few things to keep in mind if you are contacted by a search firm.
By Stephenie Overman, contributor
FORTUNE -- If you make six figures a year, or reasonably hope to move into that league, dust off your resume. Headhunters are calling again.
Senior executive recruiting has had a dramatic resurgence. Following a precipitous 32.5% decline in 2009, the industry grew by an average of 28.5% in 2010 and is on track to do well in 2011, according to the Association of Executive Search Consultants (AESC).
Retained search firms -- executive search firms that companies hire to recruit candidates -- are looking for "senior executive talent, people on the fast track," says Peter M. Felix, AESC president. "It's unlikely a firm will be searching [to fill a position] below $150,000 base salary or the equivalent. If you're earning less than $100,000, retained search is not for you."
It's worth remembering that a retained search firm represents the company, not the job candidate, and is paid regardless of the outcome of the search. So-called contingency firms often represent individuals seeking placement and are paid for whatever placements they make.
"It's not well understood," Felix says. "Many executives come to search firms, expecting us to be an employment agency. Absolutely not. There are firms who represent candidates, but not retained search firms." These retained search firms are the gatekeepers to 60,000 to 70,000 senior-level jobs worldwide every year, he adds. More
Bean counters wanted: Why the Big 4 are in a hiring frenzy
Corporate America may not be hiring much yet, but they're certainly looking for more accounting help. Ernst & Young, Deloitte, and other financial firms are looking to hire thousands this year.
By Gary M. Stern, contributor
Millions of jobless Americans are bracing for the next unemployment report, due out this Friday. Despite the rebounding stock market and improving economic indicators, the unemployment rate, currently at 8.9%, has remained stubbornly high as U.S. companies maintain their "wait-and-see" stance on hiring.
But there's one unlikely place where the help wanted sign is up, big time: Accounting firms.
Deloitte plans to hire 17,000 professionals in the U.S. and India in 2011, according to Cathleen Benko, its chief talent officer. It's seeking accountants, auditors, consultants, and IT staff. Hiring is split evenly between experienced and entry-level applicants.
Like Deloitte, Ernst & Young has stepped up recruiting. It's looking to hire 7,000 employees from college campuses -- 4,500 full-time and 2,500 interns -- and 6,000 experienced staff, totaling 13,000 people in 2011, says Dan Black, its director of Americas Campus Recruiting. Experienced staffing is up 80% from last year and campus recruits are up 20%.
Both firms compete for talent against PricewaterhouseCoopers, KPMG, and large consulting firms such as McKinsey and Bain. The hiring confirms a 2011 Bureau of Labor Statistics report that predicted employment in accounting and auditing would spike 22%.
What business leaders can learn from the Renaissance
While innovation and new business ideas gain central stage today, the decline of one of Europe's greatest Renaissance banking families offers useful, cautious wisdom.
By Christian Stadler, contributor
In an unfortunate twist of events, the Fuggers banking family's customers, including King Philip II of Spain (above), reneged on their loan repayments soon after the family decided to withdraw capital from its business.
(ManagementInnovationeXchange) -- As the global economy slowly turns around, we have embarked on a new era of growth. While innovation and new business ideas gain central stage, we should remember that some old-fashioned management practices are worth preserving.
By "old-fashioned" I mean that companies should build a solid capital and reserve base, only grow if they can do so profitably, and avoid overleveraging at all costs. In simple terms, corporations should have some spare cash on hand for unexpected threats and opportunities, and never engage in activities that put their entire future at risk.
A trip back to the Renaissance illustrates the point.
Unless you're a European history scholar, you've probably never heard of (or have forgotten) the Fuggers, a German merchant and banking family. In the 16th century, though, they were the reigning masters of the universe. The Fuggers bankrolled Europe's greatest empires; their political influence was comparable to the Medici in Italy, and their wealth was matched only by the Rothschilds' a century later. Originally merchants of fine clothing, they diversified into banking in the 15th century. Their closest dealings were with the Habsburg family, which provided mining rights as securities against loans from the merchants. As the Habsburgs repeatedly defaulted on those loans, the Fuggers gained a virtual monopoly in mining and the trading of silver, copper, and mercury across Europe.
The eventual decline of the Fuggers traces back to a decision the family made during its golden era. In 1546, Anton Fugger and sons had a working capital of 5 million guilders -- the highest in the firm's history. Anton Fugger came to the conclusion that none of his successors had the necessary qualities to lead the business empire in the future, so he started to withdraw substantial amounts of the capital to distribute among his heirs, with the intention of winding down the firm's activities over time. Yet his intention was only reflected in the reduction of capital. More
Can compassionate capitalists really win?
Raj Sisodia, head of the Conscious Capitalism Institute, believes companies that focus on the bottom line, instead of on employees' needs, will fall behind.
By David Whitford, editor-at-large
Raj Sisodia, making capitalists conscious
After years of layoffs, cutbacks, and closures in the corporate sector, it's hard to imagine that any competitive American company really puts the needs of its employees before its profits. But Raj Sisodia is a big believer in corporate compassion. Born in India, Sisodia was educated there and at Columbia University in New York, where he received his PhD, and he's currently professor of marketing at Bentley University in Waltham, Mass.
In May, Bentley will host the third annual international conference sponsored by the Conscious Capitalism Institute, of which Sisodia is chairman and co-founder. Its supporters include Whole Foods (WFMI), Costco (COST) and the Indian multinational, Tata Group. Fortune caught up with Sisodia to discuss the changing dynamics of American capitalism after the deepest recession in decades.
What is Conscious Capitalism?
Conscious Capitalism is defined by four characteristics. First is a higher purpose. There needs to be some other reason why you exist, not just to make money. Second is aligning all the stakeholders around that sense of higher purpose and recognizing that their interests are all connected to each other, and therefore there's no exploitation of one for the benefit of another. The third element is conscious leadership, which is driven by purpose and by service to people, and not by power or by personal enrichment. And the fourth is a conscious culture, which really embodies all of these elements: trust, caring, compassion, and authenticity. More
Can James Gorman make Morgan Stanley great again?
He has been CEO of the storied but bruised investment bank for a year. All he has to do is reduce risk and restore profits at the same time.
By Duff McDonald, contributor
FORTUNE -- On an April Friday last year, Morgan Stanley CEO James Gorman received a call while on vacation with his family in Anguilla: In just four days the Agricultural Bank of China was holding a "bake-off" for investment banks that wanted to handle its initial public offering. Ted Pick, co-head of equities for Morgan Stanley, told Gorman that the CEOs of other banks would be there. It was crucial that he come along. Gorman cut his vacation short and joined Pick on a plane to Beijing three days later.
Not long after his new boss was buckled in for the 16-hour flight, Pick informed Gorman that his part of the presentation would last for all of three minutes. And when they got to China, it turned out that none of the other promised investment bank CEOs were there -- Pick had played Gorman about that small detail.
Rather than throw a tantrum, as many Wall Street chieftains would have, Gorman just laughed. His nonchalance was justified. Morgan Stanley (MS) was chosen as one of the lead investment banks on the largest IPO in history -- a $22 billion offering. The firm earned nearly $30 million in fees for its efforts. More
Why startup founders can make solid CEOs
More and more, companies are reconsidering the assumption that tech founders lack the skills to take a company to the next level as CEOs.
By Joel Bomgar, contributor
FORTUNE -- In the same way that a parent's advice never sounds quite as convincing as a new friend's, and a prophet is hardly ever as believable in his hometown as he is abroad, tech founders have had a hard time making the case that they should, in fact, keep the top seat as their companies mature.
Could Eric Schmidt (right) have accomplished everything he did at Google as president and COO just as well with Larry Page (left) remaining CEO?
But thankfully, the conversation over whether a technology company's founder should be the CEO is back on the table. For years, there was a pervasive assumption that a founder was somehow unfit to lead his or her organization by the sheer fact that he or she was the founder.
As a founder CEO myself, I find the suggestion that a founder is somehow ill-equipped to lead a company to be entirely misguided. Who better than the individual who originally conceived of a company to guide the organization through its various stages of maturity? More
