Review highlights of recent news coverage of Georgia Tech College of Management's people and programs.
• Lack of control: Accounting professor Charles Mulford appeared in the The New York Times and The Wall Street Journal, discussing the announcement that General Motors would revise its profit figures for every year of this decade. "You have to question what controls are in place," he said. The New York Times also quoted him in another recent article on a racketeering lawsuit claiming that some of the nation's biggest hedge funds plotted to hurt the drug maker Biovail.
• Second bananas: While some believe the second-in-command COO role is headed for extinction, the position might be making a comeback, wrote Georgia Tech's Nate Bennett in an article in the Harvard Business Review that was based on research featured in his new book Riding Shotgun: The Role of the COO (co-authored by Stephen Miles). "We can easily argue that there is a growing need for the role," wrote Bennett, a professor of organizational behavior, citing the widening scope of CEO responsibilities and the increasing desire of boards to identify heirs to the top spot. "In light of these trends, it's surprising that COOs are not more common." Coverage of Bennett's COO research also appeared in Canada's Globe and Mail. More info
• Exceptional alumni: The Atlanta Business Chronicle featured a write-up and photos of the winners of the College of Management's third annual Alumni Awards. On April 21, the College inducted twelve business leaders into the Hall of Fame, Academy of Distinguished Alumni, and Council of Outstanding Young Alumni. More info
• New dean: The Atlanta Journal-Constitution and Atlanta Business Chronicle announced the selection of Steven Salbu as the new dean of the College of Management. Salbu, currently associate dean for graduate programs at the McCombs School of Business at the University of Texas, will assume his new position on July 1. He said Georgia Tech's emphasis on international education, sustainable business practices, technology, and innovation were major draws for him. "It was remarkable how good the fit felt,� Salbu said. �It meshed so beautifully with my background." An expert on business ethics, Salbu said he would like to strengthen the College's focus on that field. "An emphasis on ethics is an area where schools can differentiate themselves," he said. More info
• Status sundae: The Toronto Star quoted Georgia Tech's Naresh Malhotra in a story on the Golden Opulence Sundae, a $1,000 delicacy offered by a Manhattan café. "It boosts a person's ego," said Malhotra, a marketing professor, explaining why anyone would invest in the sundae, which is served in a crystal goblet with exotic candies, truffles, fruit-infused caviar, and edible gold leaf. "I don't think anyone who can't make ends meet would go out and spend $1,000 on an ice cream sundae."
• Taking stock: If history is a guide, the stock market could be shaky for awhile, according to a Georgia Tech study covered by CNBC and The Atlanta Journal-Constitution. Conducted by marketing professor emeritus Fred Allvine and assistant finance professor Rajesh Chakrabarti, the study finds that the second year of a presidential term is traditionally the weakest for the stock market (with the second and third quarters being particularly shaky). More info
• Back on top: Job offers for graduating Georgia Tech seniors finally returned to pre-2001 levels, reported The Atlanta Journal Constitution in an article on the improving labor market. Management graduates were among those at Tech faring particularly well this year, the article noted, attracting more job offers and higher starting salaries.
• Outrageous fortune: The Los Angeles Business Journal turned to Georgia Tech's Nate Bennett for commentary on CEO compensation, which many critics complain has skyrocketed to ridiculous levels. "One argument is that this is a free market and companies are entitled to compete for the best executives," says Bennett, senior associate dean and professor of organizational behavior. "The other view is that this is a completely irrational contest to attract the rock star CEO. There is a bit of truth in both points of view."
• Top of the world: Georgia Tech's Center for International Business Education and Research (GT CIBER) is at the head of the class among national resource centers in international business, reported GlobalAtlanta. Out of more than one-hundred business schools competing this spring for funding from the U.S. Department of Education to house one of thirty CIBER centers, Georgia Tech placed second. The U.S. Department of Education awarded a $1.4 million grant, effective October 1, to GT CIBER, which was established in 1993. Schools compete every four years for the funding (More info). GlobalAtlanta also covered GT CIBER's annual Global Business Forum on the U.S.-Dominican Republic-Central America Free Trade Agreement. More info
• Well positioned: U.S. News & World Report recently ranked Georgia Tech College of Management's MBA program 34th in the nation. The magazine surveyed all 391 master's programs in business accredited by the Association to Advance Collegiate Schools of Business. Last year the College of Management jumped ten spots in the magazine's rankings to 32nd. This year Georgia Tech rose in two specialty categories: from 19th to 16th in Operations and from 25th to 21st in Information Systems. The College was also added to the list of schools in Supply Chain/Logistics, ranking 16th. More info
• Breaking the bank: Strategic management professor John McIntyre recently appeared on Canadian Broadcasting Corporation (Radio Canada), discussing Wal-Mart's controversial plans to open its own in-house bank in Utah. Critics fear Wal-Mart could drive smaller banks and credit unions out of business, even though the company says it's not interested in running a consumer bank as well. In the last five years, Wal-Mart has tried without success to buy financial institutions in California and Oklahoma and partner with a bank in Canada.
• Business background: The growing perception among engineers is that earning an MBA is now the quickest route to the executive suite, reported Electronic Design magazine. The article noted that most of Georgia Tech's MBA students received undergraduate degrees in engineering or computer science. �While most MBA programs have a good number of engineers in their programs, I would say our percentage in that area is significantly higher than most,� said Paula Wilson, director of MBA Admissions for the College of Management .
• Delta down: Marketing professor emeritus Fred Allvine appeared on WSB-FM, discussing the danger of a pilot strike to Delta Air Line's future. He also discussed the AT&T-BellSouth merger on WAGA-TV's Fox 5 News and the eightieth anniversary of the sweat shirt in the Atlanta Business Chronicle.
• No comparison: CFO magazine covered research findings of accounting professor Charles Mulford, who found that companies who capitalize their software development costs often use liberal accounting methods that make their earnings look higher. The software industry's approach to capitalizing these costs is so inconsistent that it makes company-to-company comparisons difficult to make, Mulford says. He was also quoted in Electronic Engineering Times, discussing fallout over how stock options were given to some electronics industry executives.
• Final four: The Atlanta Journal Constitution's coverage of the inaugural Business Launch Competition quoted Georgia Tech MBA students Cristina Might and Pelham Norville, whose company, Diagis, was one of four finalists in the contest. "It was nice to speak to nerds on your level," said Might, whose company creates software-development tools that detect security flaws before products are released. Intrinsic Security, winner of Georgia Tech's 2006 Business Plan Competition, was also a finalist.
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