2005
May-July
• Storm Warning: When companies receive insurance money for damage caused by a storm or another incident, they ought to treat that reimbursement as an investment item on their cash flow reports, according to a study by the College of Management's Financial Analysis Lab covered by The Wall Street Journal and CFO Magazine. But some firms instead classify the proceeds as cash flow from operations to appeal to stock-market investors, who pay closer attention to that section of the cash-flow statement, the study found. Getting reimbursed by an insurer is tantamount to selling the asset, said lab director and accounting professor Charles Mulford in the articles. Mulford was also recently quoted in Forbes discussing techniques companies use for keeping capital expenditures low.
• Double Time: Earning an MBA in addition to a master's degree in information technology is increasingly becoming a prerequisite for top IT jobs, reported Computerworld recently. The article quoted Paula Wilson, director of MBA admissions for the College of Management , who said Georgia Tech's dual-degree Technology Leadership Program is "appealing to people who feel they have a strong technical degree but believe that balancing it out will give them a little bit of an edge." Many students decide to pursue the MBA once they learn how much time they'll save by consolidating their degrees, she said. According to statistics cited by the article, only two percent of MBA programs in the U.S. offer a dual-degree program of any kind.
• Broken Links: Companies who suffer a sudden blockage in their flow of products to consumers face a long road to recovery, said operations management professor Vinod Singhal. His research on supply chain disruptions was covered by the Dallas Business Journal, Logistics Today, Corporate Board Member Magazine, Business Insurance, Traffic World, American Shipper, Canadian Transportation Logistics, and SupplyChainBrain.com. "Firms continue to operate for at least two years at a lower performance level after experiencing a disruption," Singhal said.
• Golden Parachute: The Atlanta Journal-Constitution recently turned to Fred Allvine, professor emeritus of marketing, for commentary on the compensation package of former Delta Airlines CEO Ron Allen, who was forced to retire in 1997. Among other perks, Allen continued to receive $500,000 a year in consulting years for the next eight years. Both Allen and Delta should have sought compensation reductions to help the ailing airline, Allvine said. "It's time to stop this," he said. "The airline can't afford it."
• Go-getters: Georgia Tech MBA students are hungry for success, lacking the sense of entitlement that graduates of some schools seem to have, said Suzy Welch on John McLaughlin's "One on One" program, broadcast on PBS stations. She was recalling her recent visit to campus with her husband, Jack Welch, who spoke in the IMPACT Speaker Series. Together the couple wrote Winning, a new book on leadership, and signed copies for students after his lecture at the College of Management .
• Dream Job: "There is no better job than being an academic," said accounting professor Deborah Turner in the latest issue of Financial Executive magazine, which ran a full-page profile on her. "I get to help young people start their careers, and I have the opportunity to advise experienced managers about ways to improve their companies' performance," Turner said.
• Opportunity Knocks: In an article on the growing variety of flexible business-education opportunities available in Atlanta, the Atlanta Business Chronicle described the College of Management's Executive Master of Science in Management of Technology program. Meeting for all-day classes on Fridays and Saturdays, students in the 18-month program conclude their studies with an educational tour of Munich and Paris.
• New Road: College of Management Dean Terry C. Blum's decision to step down from her position in June 2006 made headlines in the Atlanta Business Chronicle and The Atlanta Journal-Constitution. "I've thoroughly enjoyed the opportunity to lead the College of Management during this exciting time of change and growth," said Blum, who became one of the first women deans at Tech in 1999. After leaving the deanship, Blum will remain on the faculty, creating and directing the new interdisciplinary Institute for Leadership and Entrepreneurship for the university.