Tag: Research Centers



Suppose the epidemic of opioids plaguing the United States could be stopped at the source? Suppose 21st century technologies such as data mining, artificial intelligence and machine learning could flag risky drug shipments before they land in the hands of at-risk populations?

How could it be done? And what changes in local, state and federal policy would be required to curb the problem and sharpen the response from experts in law enforcement, public health and industry?

These questions form the heart of a new initiative between WashU Olin Business School and the Brookings Institution. Broadly speaking, the Olin-Brookings Commission is a three-year initiative designed to recruit a dream-team of policy experts and scholars each year who will deeply analyze a single major policy issue and issue policy recommendations.

Made possible by a $750,000 grant from The Bellwether Foundation Inc., each commission will be charged with tackling topics affecting the quality of life for people in St. Louis and across the country. Each year’s panel will issue practical and realistic recommendations informing business strategy and public policy.

“We are pleased to provide multiyear support for the Olin-Brookings Commission,” said Ginger Smith, president of The Bellwether Foundation. “Funding an initiative that deepens the partnership between Olin and Brookings, two leaders in their industries, is where we believe we can make an impact.”

The focus of our first commission

Our first commission convenes this month. This first seven-member commission—in partnership with Olin’s Center for Analytics and Business Insights—will demonstrate how new technologies can curb opioid trafficking and potentially more than 100 other equally destructive examples of illicit trafficking.

At the same time, the commission will evaluate existing policy obstacles and reveal opportunities where policy changes can enable industry and government to implement a real-time detection and alert system across industry and government agencies.

“The initiative is very compelling. It leverages new advances in artificial intelligence and machine learning to proactively detect suspicious opioid orders before they are shipped,” said Anthony Sardella, chair of the first commission and founder of data insight firm evolve24. “This effort holds the promise to save lives, enhance public health and protect our vulnerable populations.”

An initial phase of the opioid research project involves mining a relatively new database from the US Drug Enforcement Agency: the Automated Reports and Consolidated Ordering System. CABI co-directors Seethu Seetharaman and Michael Wall, along with Tony (who also serves as CABI’s senior research advisor), will lead the data analysis portion of the project.

“I am excited that CABI is involved in such a high-stakes national policy-related initiative in terms of showcasing the analytics talent resident in Washington University in St. Louis,” Seethu said. “This could not fit more perfectly with the values-based, data-driven mission of Olin.”

Another key component of the Olin-Brookings Commission is involvement from students, who will serve as “commission fellows” in research and logistical support for each project. Olin PhD marketing student Annie Shi will collaborate with Tony, Michael and Seethu and together, they will be co-authors on all publications that arise from this initiative.

Meanwhile, I’m pleased to announce that our first commission includes heavy hitters from the pharmaceutical industry, academia, law enforcement and advocacy organizations focused on drug policy. Find the list of commission members at the bottom of this column.

A signature program?

The Bellwether grant makes possible a long-held vision of mine, an extraordinary opportunity to further leverage and expand Olin’s powerful relationship with Brookings, while also convening thought leaders who can provide guidance and direction on “megatrends” in global business and public policy.

We envision that each commission’s report—targeting the White House, regional and national government policymakers and the media—would coincide with the springtime Olin MBA capstone experience with Brookings. That is our timeline for a report on the opioid project.

Commission members will convene in a series of virtual meetings—at least while the pandemic continues raging—over the course of this year.

In addition to recommendations influencing business practice and public policy, the initiative is structured to provide insightful, well-researched contributions to industry about societal megatrends, inform and influence the direction of future research and increase students’ knowledge about the confluence of business and public policy.

I’m confident that the Olin-Brookings Commission can become one of Olin’s signature programs, further cementing our commitment to improving life in St. Louis—and changing the world, for good.

Members of commission No. 1, opioid trafficking

  • Anthony Sardella, founder, evolve24; faculty member, WashU Olin Business School. Commission chair.
  • The Hon. Mary Bono, board member, Community Anti-Drug Coalitions of America, former US representative.
  • Dr. Ann Marie Dale, assistant professor of medicine and occupational therapy, Washington University School of Medicine
  • Van Ingram, executive director, Kentucky Office of Drug Control
  • Gina Papush, global chief data and analytics officer, Cigna.
  • Darrell M. West, vice president and director, Governance Studies; senior fellow, Center for Technology Innovation, Brookings



In its sixth year, the WashU Olin Family Business Symposium provided a deeper look into how the culture of family business drives performance and outcomes—and how that culture can be preserved throughout generations.

The symposium, entitled “The Importance of Culture in a Family Business,” was hosted by the Koch Center for Family Business and was held virtually across four mornings in February.

As session one panelist Mark Leeker, managing director of Harbour Group, put it, “It always comes down to the people and the ability to have a culture that is recognized and known, so that as you go through changes, you can always fall back on what it is that you do and what’s your central core.” 

Building a team at Tata Consultancy Services

Subramanian Ramadorai

On Tuesday, February 2, Subramanian Ramadorai, former MD and CEO of Tata Consultancy Services, spoke to Spencer Burke, Olin’s Eugene F. Williams, Jr. executive in residence. TCS is one of the world’s largest IT, consulting, and business solutions organizations. Ramadorai is largely responsible for its growth over the past four decades.

The keynote presentation was followed by a panel discussion with Leeker and Olin’s Seth Carnahan, associate professor of strategy, moderated by Koch Center Director Peter Boumgarden.

Eight generations and counting

Lisanne Cape Dorion

The second week of the symposium, on February 10, featured Lisanne Cape Dorion, board director, and Scott Northcutt, senior vice president of human resources, of Bacardi, Ltd. Dorion and Northcutt shared some of the strategies that Bacardi, a 150-year old family-owned beverage company with over 1,000 family members across eight generations, uses to encourage innovation while preserving the company’s long-held values. 

Following the Bacardi presentation, Gina Hoagland, chairman & principal of Collaborative Strategies, Inc. moderated a panel discussion with Joshua Hager, president and COO of Hager Companies, Kevin Maher, Jr., vice president and general manager of St. Charles Automotive, and Chris Seyer, CEO of Sayer Industries, Inc. 

Investments and banking

George H. Walker

George H. Walker, chairman and CEO of investment management firm Neuberger Berman, spoke on the structure of the employee-owned firm and how the ownership approach can inform the company’s long-term planning and innovation. With offices in 24 countries, Neuberger Berman has been named by Pensions & Investments as a Best Place to Work in Money Management, finishing first or second each of the last five years. Many of Walker’s experiences of workplace culture in a financial institution were echoed in the panel discussion with David Eichhorn, CEO and head of investment strategies at NISA Investment Advisors, and Michael Dierberg, chairman of the board at First Bank.

Sports, family, and the community

Carolyn Kindle Betz

The final morning of the symposium, on February 25, was the most popular and likely of most interest to St. Louisans: a panel discussion between Carolyn Kindle Betz, CEO of St. Louis CITY SC, William DeWitt III, president of the St. Louis Cardinals, and Tom Stillman, chairman and governor of the St. Louis Blues. Kindle Betz, DeWitt, and Stillman spoke on balancing the need for both continuity and change in sports organizations as old as the Cardinals (140 years) and as new as the St. Louis CITY SC (announced in 2019 and expected to begin play in 2023).

Videos for all four events can be found below. Find more information about the Koch Center for Family Business and videos and audio recordings from past events here




Forty of the world’s leading supply chain scholars were invited to the Olin Business School at Washington University in St. Louis, back before a virus’ early days gave rise to shortages of cleaners, toilet paper and such. This was May 2019, under the auspices of the 5thSupply Chain Finance and Risk Management Workshop in which The Boeing Center for Supply Chain Innovation served as host.

The assembled academics offered such relevant presentations, research and ideas — a full nine months before a pandemic derailed, if not stymied, global operations — that it produced a special edition in scholarship: how to pay for production and distribution today and manage global risks in a highly uncertain COVID-19 environment. Supply Chain Finance and Fin Tech Innovations was published Oct. 1 as the 14th volume of Foundations and Trends in Technology, Information and Operations Management.

The volume was co-edited by two Boeing Center/Olin faculty: Panos Kouvelis, the Emerson Distinguished Professor of Operations and Manufacturing Management and the center’s director, and Ling Dong, professor of operations and manufacturing management. Their third co-editor was former Olin colleague Danko Turcic of the University of California, Riverside.

Kouvelis

“Innovative ways in managing working capital within global supply chains is of utmost importance in a turbulent environment,” said Kouvelis, who also sits on the journal’s editorial board. He also was part of a team that published a separate paper on these issues in the journal Production and Operations Management. “Especially small suppliers in global supply chains are currently stretched thin in their liquidity and ability to collect on their accounts receivables. Their debt exposure has drastically increased, and they rely on innovative financing schemes by their large corporate customers, such as reverse factoring schemes, or on fin tech innovations, such as the Ant Group fast loan services.”

Hot-off-the-press ideas

Supply chain managers who want to stay in the forefront of such practices can benefit from the hot-off-the-press ideas in research shared in the workshop and appearing in the edited volume. “Our workshop benefits from the close interaction of the Boeing Center with its member companies, and we listen to the timely topics they want us to research. We bring state-of-the-art thinking back to them to advance their practices,” Kouvelis added.

The scholars came from the London Business School at the University of London, University of Chicago, Northwestern, Penn and Carnegie Mellon as well as top universities in Australia and China. They authored 10 different papers parsed into three supply chain themes: financing issues in supply chains, fin tech innovations for working capital and risk management, and advances in risk management of operational systems.

Dong

“Supply chain risk management is the other topic of timely importance in the current environment,” Dong said. “The last 20 years, and especially during the pandemic, made apparent to all that we are more frequently exposed to increased severity disruptive shocks. Building supply chain resilience is what all companies aspire in their initiatives right now.”

The question always remains: How to do it.

“There are some very interesting ideas and practical suggestions on better hedging operational and supply chain risks in the work summarized in the volume,” Kouvelis said.

Working capital needs

In another recent work, Kouvelis and Turcic addressed both of the challenges prominently mentioned above: supporting working capital needs and better hedging certain risks (exchange rate exposure, commodity price fluctuations, interest rates and so on). The two researchers teamed on an automotive industry study forthcoming in Production and Operations Management.

They looked into the effectiveness of two data-driven financial hedging policies, cost hedging and cash hedging, aimed at mitigating financial distress, with their data coming from car manufacturing environments. The paper is titled “Supporting Operations with Financial Hedging: Cash Hedging Versus Cost Hedging in an Automotive Industry,” and for this study, they used data from the Federal Reserve Bank of St. Louis, U.S. Bureau of Labor, U.S departments of Treasury and Energy, and International Monetary Fund data.

The widely used cost-hedging strategy calls for carmakers to hedge raw material and production input purchases. That means they need to trade in raw materials to avoid higher costs, such as amassing the four essential commodities: aluminum, steel, zinc and plastic. Kouvelis and Turcic argue that a better way is to focus on cash hedging under which the firm hedges its net cash flow. Although managers are concerned about fluctuations in commodity prices, their study points out that demand changes are the most significant factor to be hedged.

Their findings also meant that cost hedging is barely more effective than no hedging at all and less effective — plus more costly — than a cash-hedging strategy, which hedges cost and demand. Moreover, in the current pandemic-affected environment, with changing consumer behavior and spending approaches across many product categories, including cars, and with volatile commodity prices, manufacturers should use cash-hedging policies to enhance operating cash flows and protect against financial distress.

Photo: Empty grocery store shelves in Vancouver, British Columbia, in March 2020 reflect the global supply chain disruptions amid the COVID-19 pandemic. (Margarita Young/Shutterstock.com)




A.N. Sreeram and Dr. Clive Meanwell

The one American company that is the most innovative, the most effective at research and development, of the five most attention-grabbing US-based companies isn’t one that’s developing your cellphones, creating your home tech devices or delivering goods to your door.

Prof. Anne Marie Knott

Rather, it’s one you watch: Netflix.

The 2020 Research Quotient Top 50 (RQ50), highlighting the most innovative US companies, was unveiled September 18 at The Industrial Innovation Path to Economic Recovery Conference hosted by the Boeing Center at Washington University in St Louis.

A recent paper, forthcoming in the Journal of Financial and Quantitative Analysis, finds that RQ is the only innovation measure that reliably predicts market returns.  That paper was co-authored by Michael J. Cooper of the University of Utah, Wenhao Yang of the Chinese University of Hong Kong, Shenzhen and  Anne Marie Knott, the Robert and Barbara Frick Professor in Business at WashU Olin, who pioneered the RQ measure.

The conference attendees, in an online audience poll, predicted Amazon would prevail as the most innovative among the FAANG notables: Facebook, Amazon, Apple, Netflix and Alphabet (formerly Google). In addition to unveiling the new list, Knott, at the Boeing Center/Olin conference, oversaw a panel discussion with two “RQ50 Hall of Famers”—firms that have been in the RQ50 for 10 or more years: A.N. Sreeram, Senior vice president and chief technology officer of Dow (20 years in RQ50), and Dr. Clive Meanwell, founder of The Medicines Company (10 years in the RQ50), whose company became ineligible for the RQ50 after being acquired by Novartis last year.

Keys to research investment success

Knott pointed out it was interesting to hear their discussion echo what her RQ scholarship has found: The keys to successful innovation, even in this instance for a 123-year-old company and a biotech startup, are not all that different.

“Keeping secrets is overrated. If you don’t collaborate and share IP, you’re highly unlikely to develop anything of great use.” 

Dr. Clive Meanwell

“How can you build wisdom faster?” asked Sreeram. “Make research available to innovators.”  He noted that every research report conducted at Dow since 1934 is fully digitized and available to researchers at the firm today. Sreeram praised such information sharing as an effective means of facilitating wisdom and learning, even among expert-level professionals. 

The RQ50 session was part of the five-session conference that received national attention after it opened with a fireside chat that Olin Dean Mark P. Taylor hosted with St. Louis Federal Reserve Bank President James Bullard, who characterized the new debt associated with COVID-19 interventions and offered his perspective on lifting inflation. This set the stage for a series of discussions to understand how best to invigorate technological change to spur economic growth sufficient to handle the debt.

Research versus innovation

While many argue this is best accomplished by increasing research, which takes place predominantly at universities and government labs, the conference focused attention on innovation—converting research into products and services that people want to buy. The latter takes place in companies, where 70% of U.S. R&D is conducted.  

Recognizing that companies can’t drive growth themselves, the conference included a panel discussion with three investors known for their long-horizon approach: Michelle Edkins, managing director, BlackRock Investment Stewardship; Penny Pennington, managing partner, Edward Jones; and Jared Woodard, director for global investment strategy, Bank of America. The panel was moderated by Todd Milbourn, vice dean of faculty and research and Hubert C. & Dorothy R. Moog Professor of Finance.

Woodard spoke to the importance of R&D and the RQ metric.

“One of the things that has become incredibly important in a world of low-economic growth, low-interest rates and low profits is the ability to find companies that can use R&D and capex [capital expenditure] dollars efficiently,” Woodard said. “And I think RQ is a great example of one methodology for finding those kinds of firms.”

“We’re always talking to the boards and management of companies about long-term challenges and opportunities and that includes R&D and capex,” Edkins added. “We are seeing COVID-19 accelerate macroeconomic trends key to R&D.”

Pennington mentioned the importance of efficient R&D over long-investing horizons in any environment and the imperative to identify firms whose R&D drives “return on investment in excess of the cost of capital,” characterizing that search as a “fundamental root of serious long-term investing.”

Emerging research on innovation

The conference also included a session of emerging academic research which offered an evidence-base for what innovation strategies and polices work, and which don’t. Participants included: Chad Syverson, University of Chicago, “Product Innovation, Product Diversification,and Firm Growth: Evidence from Japan’s Early Industrialization;” Florian Ederer, Yale School of Management, “Killer Acquisitions;” and Willy Shih, Harvard Business School, “Some Attention to the Demand Side, Please.”

While companies invest 70% of some $580 million invested in US R&D, the government is the next largest source of such funding—22%. In a closing keynote talk, Knott guided a discussion with Jaymie Durnan, director of strategic initiatives at Lincoln Lab, focusing on how those funds could be better spent. Moreover, Durnan discussed what government policies might drive more growth from R&D.

In the end, the audience met in breakout rooms to synthesize insights gleaned across the sessions to generate actionable recommendations to increase growth from innovation and thereby emerge from the pandemic in better shape. These insights and a conference report will be available on the Boeing Center’s LinkedIn page.




Alex Haimann

Koch Center for Family Business Associate Director Alex Haimann was recently published in the Harvard Business Review. His article, “How to Design a Better Hiring Process,” suggests a number of innovative alternatives to the standard “What are your strengths and weaknesses?” approach to evaluating prospective hires.

Better methods, he says, might be to “immerse job candidates in unconventional scenarios to gather the most useful insights about their critical-thinking abilities, tech savviness, and interpersonal skills,” for example, testing technical skills by observing the candidate’s real-time problem-solving process.

Haimann reports success since implementing this approach in his own business, seeing significant increases in retention and quality of new hires.

In addition to his work with the Koch Center, Alex is a partner and the head of business development at Less Annoying CRM, a simple CRM built from the ground up for small businesses. More than 10,000 small businesses worldwide use LACRM to manage contacts, track leads, and stay on top of follow-ups. LACRM continues to grow by engaging customers and finding new opportunities for mutually beneficial partnerships.