Tag: Building Olin



Zandy Schorsch, MBA ’19, contributed this blog post on behalf of Olin’s Center for Experiential Learning.

Oscar Wilde once said that rugby is a good occasion for keeping 30 bullies far from the center of a city. This semester, students from the undergraduate and graduate levels of Washington University Olin Business School have been working with the Center for Experiential Learning to perform the opposite—assess the viability of bringing a professional rugby team to the city of St. Louis.

Rugby is one of the fastest growing sports in the United States, and Major League Rugby was founded last year to provide fans with professional-level rugby competition here in the states. The league kicked off its inaugural season with seven original teams. With nationally televised games on CBS and sold out tickets in many of the cities, there is a growing sense of optimism as MLR prepares for its second season.

The league has aggressive plans for expansion, with teams in New York and Toronto joining for the 2019 season and Atlanta, D.C., and Boston joining in 2020. St. Louis has emerged as one of the potential cities for an MLR expansion team, and the CEL was hired by a local entrepreneur to determine whether such a venture is feasible.

The CEL’s client, a husband and wife duo with a lifelong passion for rugby, believe the loss of the city’s football franchise has created an opening for rugby. Through dozens of interviews with rugby players, coaches, executives, and MLR league officials, the CEL team developed a strong understanding of how a rugby team in St. Louis would operate and the number of fans it would be able to attract.

Although St. Louis has always been a baseball town, there are hundreds of registered rugby players in the local area across all levels of the sport, as well as several nationally recognized rugby programs.

While the CEL team was able to develop a demand forecast for rugby in St. Louis, only so much can be learned about stadium financing and team operations from phone interviews and emails. As a result, the client decided to bring the CEL team to Glendale, Colorado, to meet with the Raptors, the MLR regular season champions, to learn more about the business side of rugby operations.

Learning about rugby operations from the Raptors.

During a full-day of meetings with the Raptors, the CEL team learned about stadium financing, team and stadium operating costs, revenue drivers, marketing and sales strategies, and unexpected expenses associated with managing a professional sports team.

The CEL team also got to learn the fundamentals of rugby from some of the professional players, such as tackling techniques and field goal mechanics.

While the CEL team requires more practice if they hope to play professionally, the data the team was able to collect from the Raptors proved invaluable for their analysis. The client capped off the trip with dinner at a local pub, a great opportunity for the student team to connect with their client informally.

Upon returning to St. Louis, the CEL team took the lessons learned from the Raptors to develop a financial model the client could use to make an informed decision about bringing professional rugby to St. Louis. The team developed an intuitive financial model that accounted for attendance numbers, concession sales, merchandise sales, stadium costs, advertising, and a host of other variables posed several challenges.

Effectively communicating the outputs from the financial model, as well as highlighting the key assumptions and inputs that produce those outputs, was also critically important.

By building a strong relationship with the client throughout the semester, and leveraging the abundant resources of the CEL and Washington University, the CEL team was able to provide a final deliverable that gave the client a holistic view of everything that goes into managing a professional sports team and stadium.

The financial analysis demonstrated that a team in St. Louis is feasible, so be on the lookout for a local MLR team in near future.

Overall, the CEL is a unique opportunity for students to work on real-world projects that have a direct impact on their community. Bringing a professional sports team to St. Louis is the type of project that major consulting firms and investment banks would be envious of, and for the clients who hire the CEL, they get to receive professional-level services from the very students who, upon graduation, will be joining those types of companies.




Timothy Solberg working on a terminal along with Dean Mark Taylor under the guidance of Bianca Simonetti, Bloomberg

Olin’s Al and Ruth Kopolow Business Library debuted a new finance learning lab equipped with eight Bloomberg terminals and a large screen for the group. The project was three months in the making as workers renovated and rewired a room just inside the library’s entrance and equipped it with new furniture.

Dean Mark Taylor made an appearance to inspect the new lab on January 24 and mused aloud about the massive difference in today’s trading volume—and the size of individual trades—from the time he started as a market professional decades ago.

Madjid Zeggane, database analyst at Kopolow library, spearheaded the logistical work required to create the lab. He said Olin has 12 Bloomberg licenses and consolidated eight of its terminals into the new lab to facilitate collaboration among students and create a better training environment for a tool almost universally embraced by financial managers.

“Companies like to know students are trained on the Bloomberg,” said Timothy Solberg, professor of practice in finance and academic director of the corporate finance and investments platform.

He said the students who won the prestigious Quinnipiac finance competition nearly a year ago could have benefitted from the new lab because they could have easily uploaded the university portfolio they were managing and worked jointly, collaborating on their analysis.

“This is the way professionals do it,” Solberg said. The school conducted its first group training in on the terminals the morning of January 24.

Bloomberg terminals are sophisticated, text-intensive, multi-screen windows into real-time data about financial markets, news, stock quotes and other related information. In addition to the eight terminals in the lab, Olin has two laptops equipped with the Bloomberg software, another desktop terminal in Bauer Hall and another in the main library space.

Pictured above: Timothy Solberg working on a terminal along with Dean Mark Taylor under the guidance of Bianca Simonetti, Bloomberg’s account manager for the St. Louis area.




Mimi Wang, MBA ’19, contributed this post on behalf of Olin’s Center for Experiential Learning. Lexi Bainnson, BSBA ’21, edited and formatted this CEL blog post.

In October, a student team representing the Center for Experiential Learning visited Quito, Ecuador. Quito is a city built on mountains and in the valleys with breathtaking views in all directions, no matter your location.

The angel of Quito is a famous statue located on top of one of the tallest mountains and is visible from everywhere in the city.

Left: The angel of Quito sits atop a hill and is visible anywhere in the city. Right: The view from the angel’s vantage point.

There is so much to do in Quito that our sightseeing day was jam-packed. The center of the world, located at latitude 0º0’0”, features a variety of exciting sites. We visited two main attractions during our time in Quito.

Team members Stephanie Feit, MBA ’19),
Brant Tagalo, BSBA ’20, and Mimi Wang, MBA ’19,
line up for a demonstration of some of the
increased gravity effects at the center of the earth.

The first site was built around what was originally considered the center of the world, and includes a large park with museums, restaurants, and monuments. The second was built at the true center of the earth, calculated using a modern, military-grade GPS. At this site, our team took a tour and learned about ancient indigenous cultures and some of the natural phenomena that happen along the equator line.

After a day of sightseeing, we stopped at a chocolate shop and cafe, where we had some tea and coffee. Cacao beans are grown in and around Ecuador, so it has the best chocolate and some of the best coffee in the world.

The view from the coffee shop
is quaint, and the drinks are delicious.

We also dined at Quitu, a restaurant that puts modern experimental cooking twists on classic Ecuadorian food. Quitu is unique in that it sources all of its food locally and organically. Interesting menu items include broccoli rabe cooked in cucumber and rabbit soup, fresh fish in zucchini sauce, deep fried guinea pig (called cuye), and pork tongue in a soy-like sauce. All of the dishes were served on distinctive plates made of driftwood, cross-sections of tree stumps, or rocks. Our meal there was a lively occasion appreciating authentic Ecuadorian cuisine.

We loved having the opportunity to explore and experience Ecuadorian culture outside of our time spent with our client in October. Now that we are home again, we look forward to composing our final deliverables and helping our client going forward.


Copy of Robert S. Brookings portrait that hangs in the lobby of the Alumni House.

The Robert S. Brookings portrait hangs
in the lobby of the Alumni House.

For more than a century, the histories of WashU business education and the Brookings Institution in Washington DC have been intertwined. Robert S. Brookings, the St. Louis businessman, philanthropist, and WashU board president who built the Danforth campus and elevated the university to the world stage, was also passionate about the intersection of business and government policy education.

That passion, in fact, led to the establishment in 1916 of the precursor to today’s Brookings Institution, which was for a time a part of Washington University.

President John F. Kennedy recognized the need to bridge policy and business when, in 1962, he greeted Brookings attendees to the White House: “My experience has been that those businessmen who have worked in Washington, who have held positions of responsibility, who know something about the public responsibilities of those who hold executive office, are a good deal more understanding and a good deal more successful in their business work later on.”

Today, we begin the process of taking the Brookings-WashU partnership to another level. Construction begins this month to expand Olin’s space at Brookings from 2,000 to 12,000 square feet—a significant undertaking with implications for what we can offer. The new space bears the iconic street address of 1776 Massachusetts Avenue NW, overlooking the main Brookings building across the street.

Space is tough to come by in Washington and a larger footprint means we can serve more students who are waitlisted for our master of science in leadership, our certificate programmes in public leadership and policy strategy, and our executive education courses.

In fact, if this space had been available last year, every waitlisted student would have been able to participate in a Brookings programme, according to Ian Dubin, assistant dean and director for Brookings Executive Education. And while that will help us expand our offerings to DC-based students, it will also bring us closer to another goal of mine: making sure every Olin student has a Brookings experience.

“This space is going to allow us to really grow what is the real advantage we have, which is this opportunity for immersion,” Ian said recently. “The global MBA program will soon begin, Olin’s Mumbai students will be coming, BSBA students will be coming.”

In addition to the construction work, I’ve also recently elevated the role that Lamar Pierce, Olin professor of organization and strategy, plays at Brookings. He now adds Associate Dean for the Brookings-WashU partnership.

“We believe this new space better reflects the important and lasting partnership between Brookings and Washington University,” Lamar said recently. “The new classrooms, which look out over Brookings and Dupont Circle, will provide state of the art instructional spaces for both our executive education and for the many Olin programs with Washington residencies.”

Optimistically, we expect to complete the expansion around late April or early May, but definitely in time for the arrival of more than 115 full-time MBA students in July, when they begin their round-the-world global immersion in Olin’s revamped two-year programme.

As we approach Robert S. Brookings’ 169th birthday on January 22, it’s fitting that we take note of this important milestone in the partnership between Olin and his namesake institution, the world’s premier think tank in arguably the world’s most important global capital.




By Carlos Restrepo, originally published in the 2018 edition of Olin Business magazine.

Spencer Burke

Spencer Burke

Before launching Washington University’s first family business course, Olin Business School’s Spencer Burke felt confident in his knowledge of the topic. After all, Burke, principal at the St. Louis Trust Company, had worked as a corporate lawyer for 15 years and an investment banker for 25 years.

“It wasn’t until the course started that I came to understand just how difficult some of the issues are,” said Burke, an adjunct lecturer at Olin. “The challenge arises from the inherent complexity of doing two difficult things—often in conflict—simultaneously: One, having family harmony. And the second is running a successful business. Those are two very challenging tasks, especially when put together.”

In the five years since starting the course, Burke has taught students the complexities of family-owned business, an area of study he believes is necessary for students seeking any business career.

In fact, the need is great enough that Olin is well on the way to establishing a full-fledged research center on the topic. The Koch Center for Family Business is in the planning stages thanks to a donation of more than $9 million from Roger, Fran, Paul, and Elke Koch. Paul, BSBA ’61, JD ’64, MBA ’68, and Roger, BSBA ’64, MBA ’66, are co-chairmen of the board, and the third generation in leadership at Koch Development Co., a St. Louis-based developer and manager of commercial real estate and owner/operator of select entertainment attractions.

The Koch’s donation will also endow an Olin professorship and Dean Mark P. Taylor is seeking a candidate for the position, a faculty director for the new family business center. The center is the next phase of a family business program begun under former Dean Mahendra Gupta in 2016 with an initial $1.09 million gift from the Kochs.

“There are really three heroes in this,” Paul Koch said. “Mahendra, who comes from a family business in India and saw the need; Spencer Burke, who kept the fire burning; and Dean Taylor, who is an internationally experienced business leader and he picked up that this is a huge issue all over the world.”

The Koch Center for Family Business will not be a brick-and-mortar space, but rather a program within Olin aimed at developing research and disseminating knowledge into the dynamics of family businesses.

“This is not about creating some building or monolithic thing,” Burke said. “This is about addressing the unique issues that family businesses have and giving people interested in that an opportunity to learn more.”

Student-Led Initiative

When John Stupp III began his Olin MBA in 2013, the school had no family business program, prompting him and fellow students to inquire with Gupta about developing a curriculum around the topic. He commissioned five students to analyze the feasibility of a formalized family business program.

From both a practical and theoretical standpoint, there are a significant number of differences among business approaches between family and non-family enterprises, Stupp said. They include issues of succession planning and estate taxes, as well as separating personal and business related-matters.

“The team felt the differences between family and non-family enterprises were drastic enough that it demonstrated a need,” Stupp said. He and his colleagues saw their vision grow further when Burke agreed to teach the family business course and begin to launch Family Business Program.

That program includes a half-semester course, a student-run club, and an annual symposium and speaker series. “These different avenues allow students to experience a diversity of theoretical and practice thought and gain insights into family business best practices,” Stupp said.

Stupp said his interest in family enterprises came about in part from his family’s 162-year-old business, Stupp Bros. Inc., which provides infrastructure development and banking services across the United States. While at Olin, Stupp said he wanted to prepare to continue his family’s tradition of success by learning more deeply about succession planning and how to effectively manage a business while separating family and professional matters. He now serves as director of project management for the company.

“Students get totally focused on big, publicly traded companies. They get no exposure to what family businesses are like,” Roger Koch said. “Family businesses by far create more jobs than any other sector of the economy. There are great careers to be had in family businesses. They’re very long-term oriented. They don’t only think about the next quarter.”

Global Impact, Regionally Based

Dean Taylor said expanding the family business initiative into a full-fledged research center supports Olin’s strategic plan by leveraging the school’s world-class research to create and disseminate knowledge in an innovative way and preparing students for careers in enterprises with global reach.

“Family businesses are among the biggest job creators internationally, nationally, and regionally,” Taylor said.  “Therefore, we are thinking about how we can enhance our research and the body of knowledge in the area. We want to support and enhance family-run and closely held businesses.”

The existing course is not only popular with students who are planning to join or start their own family business, but it’s equally important to students planning to go into fields that work with family-owned businesses.

Such is the case of Jeff Wertenberger, MBA ‘18, an investment banking associate for financial services firm Robert W. Baird & Co. In his role, Wertenberger is occasionally confronted with situations that are specific to family-owned businesses. Taking the family business course and attending the symposiums helped him understand those situations more deeply.

Stupp and Wertenberger said all Olin students should be exposed to the dynamics of family businesses—even if they’re not family business practitioners. Even leaders who don’t work for family owned businesses are likely to work with them at some point in their career.

“It’s important to be knowledgeable of these unique dynamics, what motivates them and what’s important to them,” Wertenberger said. “That’s how important it is.”

Creating First-Hand Connections

In his curriculum, Burke brings real-life cases from around the world to illustrate the importance of understanding the nuances of family-owned businesses.

There are approximately 5.5 million family-owned businesses in the country, which Forbes magazine says contribute to more than 50 percent of gross domestic product and employ more than half of the nation’s workforce. As vital as they are to the nation’s economy, fewer than a third of all US family-owned businesses survive the transition from the first to the second generation of ownership. Another 50 percent don’t make it to a third generation.

“How can we—as students, as faculty, as a school—help the people in these businesses do a better job and how can we help the people who aren’t in the family businesses do a better job helping family businesses?” Burke said.

One component of the existing Family Business Program that will expand with the research center is the ability to study real cases and hear speakers from dozens of companies—including Todd Schnuck of Schnuck Markets, Sue McCollum of Major Brands, and Kyle Chapman of Barry-Wehmiller—at different generational stages and with a unique perspective to the craft.

The program also collaborates with the Olin Center for Experiential Learning, pairing students with family businesses on consulting projects to tackle different challenges unique to those firms, applying principles from the classroom to real-world problems.

Fran and Elke Koch, first row. Paul Koch, Dean Mark Taylor, Roger Koch, and Chancellor Mark Wrighton on February 20, 2018, when the Kochs' gift was announced.

Fran and Elke Koch, first row. Paul Koch,
Dean Mark Taylor, Roger Koch, and Chancellor Mark Wrighton
on February 20, 2018, when the Kochs’ gift was announced.

“A course on family business taught with a case book would not be great,” Burke said. “What’s fun about this is the real-life examples that illustrates the conflicts and how challenging the resolution is.”

Taylor said he anticipates the Koch Center for Family Business will contribute to bettering local and global economies by preparing students to assist these unique, yet essential enterprises.

“It is part of our duty as an institution,” Taylor said. “We seek to have high impact internationally, nationally and regional—and this is an opportune area.”

For the Kochs, they envision a thriving Family Business Center as a world-class resource supporting academic research, preparing students to confront these unique issues, and driving long-term success for family business owners.

“We have friends who spend tens of thousands going to Stanford or Harvard to learn about these burning issues—and we think St. Louis could be one of those centers,” Paul Koch said. “We can make a mark in this area that would make us unique.”

KEY ISSUES

The dynamics of family-owned businesses pose unique challenges for business leaders. The challenges are substantial in a segment responsible for 80 percent of global job creation and 64 percent of the US economy.

  • Succession planning and growth. Distribution of assets can become an issue as the business spans generations.
  • Lack of transparency. Closely held firms hold information close to the vest, which constituents may view as being secretive.
  • Competing motives. Profit may not be the singular success driver for leaders in family-owned businesses. They can be more purposeful, but their purposes may vary.
  • Lines of authority. The person truly calling the shots may not have the title or the corner office, affecting how others effectively engage with a family business.

BY THE NUMBERS

Some key metrics about family-owned businesses.

  • 82 percent of US survey respondents said they trusted family businesses versus 58 percent who trusted “businesses in general.” Globally, the numbers were 75 and 59 percent, respectively.
  • Half of respondents know which companies they buy from are family owned.
  • 81 percent of the world’s largest family businesses practice philanthropy.
  • 25 percent describe family businesses as “transparent” in their business operations.
  • 52 percent say they are “well-prepared” for a sudden succession.
  • Of the world’s 500 largest family businesses, nearly 28 percent are in North America.
  • One in five firms are family owned.

Sources: Edelman; EY Global Family Business Center of Excellence; Forbes.




Abigail MacDonald, MBA ’18, contributed this post on behalf of Olin’s Center for Experiential Learning. Lexi Bainnson, BSBA ’21, edited and formatted this CEL blog post.

Back row: Jeff Brown, MBA ’19; Ingrid Claussen, innovation manager, Rosario Board of Trade;
Nick Wosniak, MBA ’19; Gabe Berkland, MBA ’19. Front row: Abigail MacDonald, MSW/MBA ’18;
Ana Galiano, Austral University, Rosario – School of Business Sciences dean; Ankita Bhalla, BSBA ’20.

St. Louis is known as one of the best agricultural technology ecosystems in the world. With great agriculture universities, world-class research centers, interested investors, and thoughtful infrastructure, St. Louis is a perfect example of a successful ecosystem.

This fall, a team of graduate and undergraduate students at Olin Business School took a deeper dive into agtech ecosystems to learn about the importance of those essential institutions, groups, and entities necessary to have a successful ecosystem. We partnered with Austral University in Rosario, Argentina, and the Yield Lab, located both in St. Louis and Buenos Aires, to look at two different agtech ecosystems. As part of this process, we traveled to Buenos Aires and Rosario in early October.

Wheels up

Before leaving for Argentina, the team conducted research and interviews in St. Louis. We were excited to share their findings with the partners at Austral University in Rosario and the Yield Lab upon arriving in Argentina. We had a full schedule once we touched down in Argentina, and all of us were focused on the goal of the trip: to understand the key drivers of the agtech ecosystem in Rosario and to learn about how it has evolved over time.

Rosario is located in the province of Santa Fe, which is in the heart of soy country in Argentina, making it a perfect place for an agtech ecosystem to emerge. St. Louis is also located in a heavily agricultural region. The team spent some time driving between the cities of Rosario, Cordoba, and Santa Fe. Ultimately, this traveling gave us the opportunity to see the countryside of Santa Fe and how it closely resembles the agricultural region around St. Louis.

On our second to last day in Rosario, our team visited Molinos Agro, a large local soy crushing facility in San Lorenzo (just outside of Rosario). We had spent most of the week learning about the agtech ecosystem from the beginning of the value chain with startups creating new farm technology or genetically engineering seeds.

A fuller view

As a result, visiting Molinos Agro was especially helpful in that it gave us a glimpse into the middle-end of the value chain. The soy beans came into this facility as raw materials and left as either soy mill or soy oil. This was a great experience for our team, as it allowed us to see the effects that startup technology can have on an entire industry.

Our week in Argentina was filled with activities. Throughout the visit our team had the opportunity to interview with accelerators, startup founders, large local corporations, government agencies, investors, and the Rosario Board of Trade. These interviews provided great insights into the Rosario agtech ecosystem. Upon returning to St. Louis, the team has been hard at work to learn more about the Rosario ecosystem and to create a gap analysis between the two ecosystems. This gap analysis will provide insight into the necessary pieces of a successful agtech ecosystem.

Based on our experiences thus far, taking on a CEL practicum project is a lot of work, but it provides students with experience in industries in which they may have never considered working and helps students to develop useful skills in consulting, teamwork, and critical thinking.

Pictured above: Abigail MacDonald, MSW/MBA ’18; Gabe Berkland, MBA ’19; Nick Wosniak, MBA ’19; Jeff Brown, MBA ’19; Ankita Bhalla, BSBA ’20.