Management Society Presentation - PowerPoint PPT Presentation

Loading...

PPT – Management Society Presentation PowerPoint presentation | free to download - id: 473108-MzI5M



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Management Society Presentation

Description:

Management Society Presentation Steve Albrecht Associate Dean Marriott School of Management Marriott School of Management Overview W. Steve Albrecht The Marriott ... – PowerPoint PPT presentation

Number of Views:123
Avg rating:3.0/5.0
Slides: 61
Provided by: CypressE5
Learn more at: http://ms.byu.edu
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Management Society Presentation


1
Management Society Presentation
  • Steve Albrecht
  • Associate Dean
  • Marriott School of Management

2
Marriott School of Management Overview
  • W. Steve Albrecht

3
The Marriott School is Large--Each Year the
Marriott School Graduates
800 majors 650 minors 500 masters 1950 total
28
Over 1/4th of all BYU Students!
4
The Marriott School Has Lots of Programs
  • 3 Undergraduate Programs 2,000
  • Business Management, Accounting, Information
    Systems
  • 4 Graduate Programs 800
  • MBA, MAcc, MISM, MPA
  • 2 Executive Programs 200
  • EMBA, EMPA
  • TOTAL 3,000

We also have responsibility for the best ROTC
programs in the nation!
5
The Marriott School has Lots of Centers and
Institutes
  • Centers (college-wide)
  • Rollins e-Business Center
  • Whitmore Global Management Center
  • Center for Entrepreneurship
  • Center for Economic Self-Reliance
  • Institutes (department-focused)
  • Marketing Institute
  • Peery Financial of Services Institute
  • Dyer Institute for Leading Organizational Change

6
The Marriott School has Great External Support
From Alumni Friends
  • National Advisory Council (170 plus 70 emeriti)
  • Management Societies (60 chapters)
  • Undergraduate Advisory Board (25)
  • Marketing Institute Advisory Board (30)
  • Peery Institute of Financial Services Boards (60)
  • Romney Institute Advisory Board (40)
  • Accounting Advisory Board (20)
  • Global Management Center Advisory Board (30)
  • eBusiness Advisory Board (30)
  • Entrepreneurial Founders (120)
  • Center for Economic Self Reliance Advisory Board
    (20)
  • OB/HR Advisory Board (20)

7
Marriott School Programs are Highly Ranked MBA
RankingsWall Street Journal September 20, 2006
  • 3rd in Regional Schools read smaller
  • 2nd in Ethics
  • 4th in Accounting
  • 6th in Most Undervalued
  • 7th in Teaching Corporate Responsibility

Overall
BYU Ranks 1 for Return on Investment Best
Buy! Business Week October 30, 2006
8
Marriott School Programs are Highly ranked
Undergraduate Rankings
  • Undergraduate business.8th in nation
  • (Business Week)
  • Accounting.2nd in nation
  • Entrepreneurship..Top 25
  • Of peer schools, our students rank us 1 in terms
    of being most satisfied with their program.

9
  • Marriott School Students Win Most Competitions

10
(No Transcript)
11
The Marriott School Needs More SpaceSince 1983
  • Expanded student demand
  • 1,000 students per year (83) to 1,400 per year
    (06)
  • Minor students rose to 700 per year from zero
  • 100 utilization of classroom spaceno slack
  • Increase in faculty
  • 40 more than in 83
  • Student study space
  • Study teams
  • Open space
  • Expansion the MBA program
  • Institutes (3) and Centers (4)

12
The Marriott School Has a Solution Tanner
Building Addition
13
As we talk about ethics and fraud--Lets start
with a storywho committed fraud in this case?
  • Rich Man--three friends
  • Lawyer
  • Banker
  • Minister

1/1/02
Rich Friend
50,000
Fifty Thousand and no/100---------------
I M Smarter than U
14
(No Transcript)
15
The Bankers Check
Eternity
My Rich Friend
50,000
Fifty Thousand Dollars and no/100-----------------
---------------------
I. M . Smarter Than U.
Honor Commitment
16
The Lens From Which I Speak
  • Expert witness35 cases
  • Enron, Tyco, Lincoln Savings, ESM, Cendant, etc.
  • Boards of directors (public private companies)
  • COSO (Established internal controls)
  • FASAC FAF (Oversight and input to FASB GASB)
  • ConsultingFBI, United Nations, Major
    corporations
  • Research into white-collar crime and fraud
  • President of Association of Certified Fraud
    Examiners
  • Served on AICPA Council and IIA Board of Regents

17
Lots of problems in recent years
  • F/S fraud (WorldCom, Enron, Adelphia, etc.)
  • Restatementsincreased every year
  • Executive loans
  • Insider trading
  • Special executive favors (e.g. IPOs)

18
Lots of problems in recent years
  • Obscene amounts of compensation
  • Excessive retirement perquisites
  • Mutual fund frauds
  • Stock option backdating
  • Sloppy board room behavior
  • Lying, bribes, etc.

19
Results of these problems
  • Huge drops in shareholder value
  • Largest bankruptcies in history (7 of 10 in 2002)
  • Lots of new laws
  • Renewed emphasis on controls, including control
    environment (PCAOB)
  • Renewed emphasis on corporate governance
  • Increased shareholder activism and corporate
    government attention (ISS, Glass Lewis)

20
Largest Bankruptcy Filings in U.S.
Company Assets (Billions) When Filed
1. WorldCom 101.9 July, 2002
2. Enron 63.4 Dec., 2001
3. Conseco, Inc 61.3 Dec., 2002
4. Texaco 35.9 April, 1987
5. Financial Corp of America 33.9 Sept., 1988
6. UAL Corp. 25.2 Dec., 2002
5. Global Crossing 25.5 Jan., 2002
6. Adelphia 24.4 June, 2002
7. United Airlines 22.7 Dec. 2002
8. PGE 21.5 June, 2002
9. MCorp. 20.2 March, 1989
10. Kmart 17.0 Jan., 2002
21
In the United States, the effects have been
dramatic
5049
5000
4000
3000
2000
1114
1000
The NASDAQ Bubble
2004
2003
2002
2001
2000
1999
1998
1997
1996
22
Fraud Internationally Transparency International
  • 1. Iceland
  • 2. Finland
  • 2. New Zealand
  • 4. Denmark
  • 5. Singapore
  • 5. Sweden
  • 7. Switzerland
  • 8. Norway
  • 9. Australia
  • 10. Austria
  • 15. Hong Kong
  • 17. United States
  • 21. Japan
  • 32. Taiwan
  • 39. Malaysia
  • 40. Korea
  • 78. China
  • 126. Russia
  • 158. Bangladesh
  • 158. Chad

23
Lessons Ive learned
  • People do bad things (act unethically) when three
    things happen (compromise triangle)

Perceived Pressure
Perceived Opportunity
Rationalization
Lesson 14 slides
24
Example of Pressure Wall Streets Expectations
  • Investors want decreased risk and growing
    returns.
  • Risk is reduced when variability of earnings is
    decreased.
  • Rewards are increased when income continuously
    improves.

Which firm will have the higher stock price?
25
Actual Complaint in 2.8 Billion Financial
Statement Fraud Case
  • The participants in the illegal scheme included
    virtually the entire senior management of (the
    company), including but not limited to its former
    chairman and chief executive officer, its former
    president, two former chief financial officers
    and various other senior personnel. In total,
    there were over 20 individuals involved in the
    earnings overstatement schemes.

26
Meeting WS Projections
  • Firm 1st Qtr 2nd Qtr 3rd Qtr
  • Morgan Stanley 0.17 0.23
  • Smith Barney 0.17 0.21 0.23
  • Robertson Stephens 0.17 0.25 0.24
  • Cowen Co. 0.18 0.21
  • Alex Brown 0.18 0.25
  • Paine Webber 0.21 0.28
  • Goldman Sachs 0.17
  • Furman Selz 0.17 0.21 0.23
  • Hambrecht Quist 0.17 0.21 0.23
  • Actual Earnings 0.08 0.13 0.16
  • Fraud 0.09 0.09 0.07
  • Reported EPS 0.17 0.22 0.23
  • Fraud (Millions) 62 M 61M 71M

27
Lessons Ive learned
  • People are at different levels of ethics

Ethical Leadership Helping Others to be Ethical
Ethical Courage Willingness to Pay the Price for
Ethics
Application of Ethics to Business
Situations Fraudulent Practices, Misleading
Advertising, Unfairness
Personal Ethical Understanding Right/wrong,
Fairness, Honesty, Personal Integrity, Respect
for Others
Lesson 21 slide
28
Lessons Ive Learned
  • Focus on short-term is badmuch easier to
    compromise
  • Organizations
  • Small technology firm
  • Way they treat employees
  • TycoDennis Kozlowski
  • People
  • Marriage
  • Children
  • Others

Lesson 31 slide
29
Lessons Ive Learned There are Lots of Ways to
Commit Fraud

Lesson 41 slide
30
Lessons Ive LearnedPeople who commit fraud
look exactly like us

Bank Robbers
Normal Citizens
Fraud Perpetrators

Sample
Sample
Sample
Major Differences
No Significant Differences
Lesson 56 slides
31
Who Are The White-collar Criminals?
  • Employees
  • Managers
  • Colleagues
  • Friends
  • Suppliers/Customers
  • Contractors
  • Neighbors
  • Bishops/Ministers

?
?
?
?
?
?
?
?
?
?
32
Who Commits Fraud -Demographics
  • Married
  • Active Church Members
  • Children
  • Good Education
  • First-Time Offenders
  • Good Employees
  • Dont Abuse Alcohol

Conclusion Fraud Perpetrators Look Exactly Like
Us!
33
Who Commits Fraud--Psychological Characteristics
  • Optimistic
  • High Self-Esteem
  • Achieving
  • Family Harmony
  • Socially Conforming
  • Self Control
  • Kind
  • Sympathetic

34
Length of Time With Company
  • Less Than 3 Years....26 Percent
  • 3-5 Years.14 Percent
  • 5-10 Years...30 Percent
  • 10-20 Years.20 Percent
  • Over 20 Years.10 Percent

Just Because Individuals Have Been Honest for 10
Years Doesnt Mean Theyll Be Honest Tomorrow!
35
Perpetrators Ages
  • Under 26 Years Old...14 Percent
  • 26-35 Years Old..28 Percent
  • 36-45 Years Old..36 Percent
  • 46-55 Years Old..12 Percent
  • Over 55 Years Old..10 Percent

Combining Pressure Opportunity is Like
Mixing Diesel Fuel Fertilizer!
36
Lessons Ive Learned Having Good Controls are is
Good
  • Politicians
  • Children
  • University students
  • Ice cream shop
  • What do all of these have in common?
  • Live is full of risks and controls!

Lesson 64 slides
37
Controls
  • A control is any action taken by someone
    (management, a parent, an ice-cream store owner,
    a bank) to increase the likelihood that the
    established goals and objectives of the (parent,
    ice-cream store, organization, etc.) will be
    achieved by the (employees, children, ice-cream
    store cashier, etc.)
  • Sole Proprietornot many controls needed
  • Large organizationneed lots of controls

38
Matching Controls With Risks
Segregation. Of Duties
Risks
Controls
Authorizations
Physical Controls
Independent Checks
Documentation
Which type of control best reduces/eliminates the
risk Its an analytical process.
39
Lets think about controls
  • Controls are important in a family?
  • Controls are important in a business?
  • Controls are important in your organization?
  • You want to sleep when the wind blows

40
Lessons Ive Learned There are always fraud
warning signals
  • 1. Accounting Anomalies
  • 2. Internal Control Weaknesses
  • 3. Analytical Symptoms
  • 4. Lifestyle Symptoms
  • 5. Behavioral Symptoms
  • 6. Tips Complaints

Lesson 71 slide
41
Lessons Ive Learned You Cant Be Too Careful
  • Have them sell them to youlegal
  • Have them give them to youlegal
  • Take their assets by forcerobbery
  • Trick them out of their assetsfraud
  • Assets taken through trickery (fraud) total 10
    times more than those taken through force
    (robbery)

Investment
Scam
30 Returns
Invest
Fraud Always Involves Confidence
Lesson 87 slides
42
Protecting YourselfIdentity Theft
  • How they get your documents information
  • Mailbox
  • Change of address forms
  • Trashdumpster dumping
  • Steal purse or wallet
  • Theft of records from employer
  • Credit card reader
  • The internetphishing
  • Cameras (including telephones)
  • Pretext
  • Preventing and detecting identity theft
  • Watch your bank credit card statements
  • Get a shredder
  • Dont let mail set in box
  • Watch your wallet (purse)
  • Review your credit report regularly
  • Dont give information over internet unless you
    instigate transaction
  • Protect passwords
  • Dont respond to e-mails you dont know
  • Be careful with attachments

43
Getting Information from your Credit Card
44
(No Transcript)
45
(No Transcript)
46
(No Transcript)
47
(No Transcript)
48
Lessons Ive learned Tone at the top is most
important
  • Most important ethical element is tone at the top
    (families and organizations)


Modeling
Labeling
Lesson 92 slides
Honesty
49
Lessons Ive Learned Good modeling labeling are
becoming rarer and rarer
  • Lack of Positive Labeling
  • Home.average family spends 10 hours less time
    together a week than 20 years ago
  • Vocabulary of kindergarten children
  • Schools
  • Churches
  • Bad Modeling/Lack of Good Modeling
  • Makes up our news more explicit than ever
  • Focus of TV/movies
  • Dishonest leaders
  • Sports, business, entertainment heroes
  • Good models are rare

50
Lessons Ive Learned Having strong ethics is good
for business
  • Studies
  • MITethical firms have up to 40 higher market
    values
  • The cost of unethical actions is high (sometimes
    delayed but always high)
  • Andersen (Spacek/Dupont Waste Mgt.)
  • Grandmother at bank

Lesson 107 slides
51
Lessons Ive Learned
  • Cost of doing something wrong is high
  • Our attitude should not be where does it say
    this is wrong to where does it say this is
    right
  • Stage coach driver

52
What it means to be ethical
  • Honest..truthful, non-deceptive
  • Ken Lay, 4th Quarter 2001.
  • IntegrityStanding for something
    (principles)
  • Loyal....Are true to your purpose
  • Fair...Dont take advantage of others
  • Care for others.Follow the golden rule

53
What it means to be ethical
  • 6. Respect for othersDont hold yourself
    above others
  • 7. Responsible citizenship.Rule abiding
  • 8. Pursuit of excellence.Honoring the
    trusts of others
  • 9. AccountabilityAccept responsibility

54
Is There a Universal Ethical Standard?
Yes!
  • Categorical Imperative How would you want to be
    treated?
  • Christian principle The Golden Rule
  • Do unto others as you would have them do unto
    you. Luke 629-38
  • Thou shalt love thy neighbor as thyself. Luke
    1027

Ethics is all about how we treat other people!
55
Ethics is taught in all cultures
  • Confucius What you do not want done to yourself,
    do not do to others.
  • Aristotle We should behave to our friends as we
    wish our friends to behave to us.
  • Judaism What you hate, do not do to anyone.
  • Islam No one of you is a believer until he loves
    for his brother what he loves for himself.
  • Hinduism Do nothing to thy neighbor which thou
    wouldst not have him do to thee.
  • Sikhism Treat others as you would be treated
    yourself.
  • Buddhism Hurt not others with that which pains
    thyself.
  • Plato May I do to others as I would that they
    should do unto me.
  • TREAT PEOPLE THE WAY
  • YOU WANT THEM TO TREAT YOU
  • Thats what ethics is all about!

56
Tone at the Top
  • Example Warren Buffett
  • No quarterly statements
  • Wants only long-term investors
  • Invests in people
  • Once said to his CEOs
  • We can afford to lose money, even a lot of
    money.
  • We cant afford to lose reputationnot even a
    shred of it.

57
Other Lessons Ive Learned
  • Excesses are bad (David Kozlowski)
  • Spending more than you make is bad
  • You should deal harshly with perpetrators or they
    will do it again
  • The first reaction of victims is to deny that
    fraud happened
  • Fraud always starts small but gets larger unless
    it is caughtonly small frauds are the ones
    caught early

Lessons 11-15
58
Other Lessons Ive Learned
  • Fraud perpetrators see themselves differently
    than we see them
  • Judge selves by intentions
  • Judge others by actions
  • Never underestimate the power of money and fame
    on people
  • Fraud is very costly218,000 cars

Lessons 16-18
59
A concluding experienceNever Ignore the warning
signs
Do Not Swim Dangerous Undercurrents
60
(No Transcript)
About PowerShow.com