MinutesMcCombs School of Business – Advisory Council Spring Meeting

Friday, April 5, 2013

Welcome and IntroductionsChair Alan Dreeben opened by thanking Bob and Marcie Zlotnik for hosting dinner at their home the previous evening. Dreeben also announced that Steve McGaw is the council’s newest member and is serving on behalf of AT&T in Ray Wilkins’ place. Dreeben then asked the rest of the council members to introduce themselves.

Dean’s RecognitionsDean Gilligan recognized many members for their recent support of the McCombs School. First, he thanked members who made Dean’s Circle-level contributions from Sept. 1, 2012-Jan. 31, 2013. Those members included: John Adams, Teresa D. Binning, Jon Brumley, Kenneth P. DeAngelis, Robert D. Duncan, Mark D. Gibson, John C. Goff, William C. Helms, Charles M. Holley Jr., Gary C. Kelly, John H. Massey, J. Scott Mattei, J. Marc Myers, Ray Nixon Jr., William P. O’Hara, Thomas L. Ryan, George E. Seay, Paul Siegele, Brien P. Smith, Steven M. Sterin, Bryan D. Stolle, Sam J. Susser, Jeffrey L. Swope, Jere W. Thompson, James C. Weaver, and Charles M. Wender.

Second, Dean Gilligan acknowledged members who had established new endowments in the Sept. 1, 2012-Jan. 31, 2013 period. Those members and endowments were: George R. Ackert with the George R. and Pamela A. Ackert Endowed Dean’s Scholarship in Business, Mr. and Mrs. John L. Adams with the Susie and John L. Adams Endowed Dean’s Scholarship in Business and the Susie and John L. Adams Endowed Presidential Scholarship in Business, Les L. Allison with the Mr. and Mrs. Les L. Allison and Family Scholarship, Mr. and Mrs. Kenneth P. DeAngelis with the Lorrie Byrd DeAngelis and Ken DeAngelis Endowed Presidential Scholarship in Business, Mr. and Mrs. R. Paul Kinscherff with the Ada and Paul Kinscherff Endowed Scholarship, Mr. and Mrs. J. Marc Myers with the Marc and Jan Myers Endowed Dean’s Scholarship in Business, and Mr. and Mrs. Ray Nixon Jr. with the Ray and Denise Nixon Endowed Dean’s Scholarship in Business and the Ray and the Denise Nixon Endowed Presidential Scholarship in Business.

Dean Gilligan mentioned that the newly created endowments bring students to McCombs that would not otherwise be here.

Third, Dean Gilligan acknowledged Lifetime Leaders who have $500,000 or more of cumulative giving through Jan. 31, 2013. Those leaders included: Mr. and Mrs. John L. Adams, Mr. and Mrs. Louis G. Baldwin II, Mr. and Mrs. I. Jon Brumley, Mr. and Mrs. John W. Carpenter III, Mr. and Mrs. Gary T. Crum, Mr. and Mrs. Jack D. Furst, Mr. and Mrs. Robert H. Graham, Mr. and Mrs. Thomas O. Hicks, Mr. and Mrs. Kenneth M. Jastrow, Mr. and Mrs. Herbert D. Kelleher, Mr. and Mrs. John H. Massey, Mr. and Mrs. Red McCombs, Mr. and Mrs. John D. McStay, Mr. and Mrs. James M. Neissa, Mr. and Mrs. Ray

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Nixon, Jr., Mr. and Mrs. William P. O’Hara, Mr. and Mrs. William E. Rosenthal, Mr. and Mrs. Jeffrey L. Swope, and Mr. and Mrs. Robert S. Zlotnik.

Fourth, Dean Gilligan announced the 2013 corporate honorees that would be recognized at the Corporate Recognition Dinner on Thursday, April 25, 2013. Those honorees include: Ernst & Young as the Outstanding Corporate Partner, ExxonMobil as the Outstanding Executive Education Partner, Dr Pepper Snapple Group as the Blazing Saddles awardee, and Charles Holley of Walmart as the Outstanding Corporate Champion.

Dean Gilligan gave thanks to council member Gary Weed for his partnership with ExxonMobil and the school, to Charles Holley for his leadership that led to Walmart giving a significant contribution to the Master of Science in Business Analytics program, and to Del Williams and members Brian Gladden and George Legge for their leadership with Dr Pepper Snapple Group and assistance with creating the marketing labs.

Student Presentation: Deloitte FanTAXtic National ChampionsDean Gilligan introduced Terri Holbrook, lecturer in the Accounting Department and faculty advisor for the student team that won the Deloitte FanTAXtic National Championship. Students on the team include: David Patterson, MPA, Scott Huff, MPA, Michelle Niakan, MPA, Maggie Hood, BHP/Finance, and David O’Neill, Accounting.

Holbrook shared that advising the team is one the most rewarding things she does all year. She explained that the team was given several weeks to prepare a presentation on a complex business tax case regarding partnership tax and international tax codes. The team gave this presentation at a regional competition in Houston in November 2012 and won first place beating Texas A&M University, University of Houston, Marquette University, and more.

In January 2013, the McCombs team traveled to Dallas to compete for the national title against nine other teams. For the national competition, the teams were only given general areas to research prior to the event. Also, once the team arrived in Dallas, they were given a new case and two hours to prepare a technical tax memo. The following morning, they were given new facts, more questions, and three hours to create a presentation to a mock board.

The McCombs team won first place beating out defending champion, the College of William and Mary, as well as St. John Fischer College (second place), and Michigan State University (third place). Also, the team brought home a $10,000 reward for the school and $2,000 in personal scholarships for each member.

Holbrook then invited each team member to come up and speak about their experience.

David Patterson, the sole graduate student on the team, spoke about the team’s preparation going into the competition. He explained most of their preparation comes from their coursework as it teaches them how to work well in teams and to adapt quickly under pressure. Also, as the graduate student on the team, he expressed he felt more responsibility for getting things done, but that the experience in itself really prepared him for work in the real world as he now better understands the role of managers.

Scott Huff, junior MPA student, expressed that the most impressive part of his experience was seeing how quickly the team could come together. He attributed the team’s success to their coursework and the great amount of support they received from faculty.

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Michelle Niakan, junior MPA student, said being a part of the team has been her most rewarding experience at the university so far. Niakan explained she was previously a pre-med student before joining the Accounting program and being on the team helped her to see that she could still help people and do something greater than herself.

Maggie Hood, sophomore BHP/Finance student, said she only had three months of accounting classes before entering the competition, but that it really was the best way to learn accounting. She explained that her experience helped to enhance her classroom learning and gave her increased confidence.

David O’Neill, sophomore Accounting student, explained that he transferred to the university specifically to join the Accounting program. For his first year at McCombs, he said he couldn’t have asked for a better education and professional experience.

Student Presentation: Hoot.MeMichael Koetting, CEO of Hoot.me

Dreeben introduced Michael Koetting, a senior BHP student and also CEO of Hoot.me. Hoot.me is an application that switches your Facebook into study mode, allowing students and teachers to connect and collaborate with each other over homework and assignments.

Koetting explained he created Hoot.me his sophomore year at McCombs because he felt there was a need for a Q&A platform for his bigger classes. He knew he was spending a good amount of time on Facebook and so were his peers, so Facebook seemed like the natural fit for this Q&A forum.

Currently, Hoot.me has classroom features that include an equation editor and a teacher dashboard. In the dashboard, instructors are able to observe which students are asking the most questions as well as who is helping their peers by answering questions. And although the platform first began on Facebook, Hoot.me has expanded to Canvas, Blackboard, and other similar applications.

Koetting mentioned they have been very fortunate to receive great press that has helped with outreach and recruiting great teachers. CNN, Mashable, Longhorn Network, Forbes, and PBS have covered Hoot.me.

Also, Information, Risk, and Operations Management Lecturer Clint Tuttle was an early Hoot.me adapter. He brought in 500 students through his courses and helped Koetting and his team understand how to truly engage student users. Now Hoot.me has over 15,000 global users. User statistics include:

90 percent join classes or expert sessions 75 percent browse through content 30 percent create new content 75 percent level of engagement 30,000 messages created 120,000 messages read monthly

Koetting expressed that support from the general university community (3 Day Startup, Austin Tech Incubator, and Longhorn Startup Program) have been important to Hoot.me’s success. Other investors include: Dreamit Ventures and Startl.

Dean Gilligan asked Koetting what type of value Hoot.me added to Clint Tuttle’s classes. Koetting answered that less students showed up to Tuttle’s office hours as he was constantly interacting with them

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online. It also served as a good study aid as he saw students spending anywhere from 30-50 hours before tests browsing through content.

Member Paul Siegele asked if Koetting has thought about the quality control for answers as the service grows. Koetting explained Hoot.me is already curating content, but the quality of the content is good on a very basic level. He believes the quality stays high as questions and answers are public and students recognize that their peers and instructors are watching.

Dean Gilligan asked Koetting to speak on the environment and culture that exists at the university for students who are interested in starting their own businesses. Koetting mentioned Rob Adams and how he’s really fostered undergraduate entrepreneurship. Koetting also talked about the Longhorn Startup Seminar (lecture series with entrepreneurs from the community) and the Longhorn Startup Lab as being extremely helpful. The lab, in particular, helps students by assigning them mentors who then help them put together a business plan throughout the semester.

Real Estate Finance and Investment Center (REFIC) UpdateJay Hartzell, chair, Finance Department, and executive director, REFIC

Jay Hartzell, chair, Finance Department, and executive director, REFIC, explained that REFIC is a 13 year old research center focused on the intersection of real estate and finance. The center coordinates MBA, BBA, and other undergraduate level academic coursework focused on commercial real estate finance. It is supported by an advisory council of industry professionals.

The center has several initiatives (McCombs REIT Fund, National Real Estate Case Challenge, and more), but their newest initiative is the Texas URE, an interdisciplinary, undergraduate real estate program that began last fall. Hartzell explained that the program allows undergraduate students from any major the opportunity to enhance their degree with a specialization in commercial real estate. Through the center, students have access to industry-related courses in not only real estate finance, but investment, law, economics, engineering, architecture, and urban planning as well. To date, the center has admitted over 63 students who represent 15 different majors.

Hartzell expressed that the certificate program has been positively received and they recently completed a $4 million fundraising goal that will provide the center a more permanent source of funding. It also allowed them to hire a program director who serves as an interface between the students and industry recruiting. Hartzell gave special thanks to Steve LeBlanc, Mark Gibson, and Jeff Swope for their work in helping the center reach their fundraising goal.

After Hartzell’s update, he opened up the presentation to questions.

Dean Gilligan asked what the labor market looks like. Hartzell answered that his impression is that it’s strong especially for the undergraduates. The only struggle they have is getting the undergraduates to wait for open positions as real estate companies recruit in the spring and McCombs students are usually placed in a position by then.

Council member Red McCombs asked if there are other universities that have similar programs. Hartzell answered that their biggest competitors are Wharton and Wisconsin as they have dedicated real estate majors. However, Hartzell noted that students at those schools are almost always double majors in real estate and some other field (like finance) as it gives them more flexibility. Hartzell explained that the

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Texas URE setup recognizes that flexibility desire, which is why the certificate program is more interdisciplinary.

Development UpdateJeff Melton, executive director of development, McCombs School of Business

Jeff Melton began by thanking Red McCombs for speaking at the BBA Legacy program the previous day. Melton explained it was valuable for the BBA students to hear straight from Mr. McCombs about why they should give back to the school while they are still enrolled. To touch more on student giving and how it translates into alumni giving rates, Melton introduced Keary Kinch, director of alumni relations and annual giving.

Kinch explained that this year McCombs has the highest alumni participation rate the school has seen in two decades. MBA and BHP Make-a-Mark campaigns are the best in class receiving about 90 percent participation. The BBA participation rate is at about 25 percent, doubling what it was last year. Kinch also shared that the first MPA campaign will take place this year. Kinch thanked Red McCombs and Dean Gilligan for making themselves available to students and inspiring them to give.

After Kinch’s presentation, Melton spoke about the McCombs Scholars program. Melton explained the program began last February. Since then, they have been successful in securing over 35 Forty Acres Scholarships ($500,000 value each), 18 Presidential Scholarships ($250,000 value each), and 22 Dean’s Scholarships ($125,000 value each). Melton shared that without these scholarships, the Undergraduate Program Office would have not been able to offer scholarships to incoming freshman this year.

Contributors to the Forty Acres Scholarships include AIM, Jeff Heller, John Adams, John A. Adkins, Javaid Anwar, Shelby Carter, Gary Crum, John Massey, Charles W. Matthews, Red McCombs, Ray Nixon, Norma Petrosewicz, John Dorbandt, Alan and Barbara Dreeben, Sandy Gottesman, Bob Graham, George Seay, Jere Thompson, and Stephen Thorington.

Contributors to the Kozmetsky Forty Acres Scholarships include John Adams, Fred Hegi, Joe Holt, Shawn Hurwitz, Gary Kelly, Aaron Kozmetsky, Gregory McCoy, Dr. Charles Teeple, and Gifford Touchstone.

Contributors to the BHP Forty Acres Scholarships include Shelby Carter, Joe Chartoff, John Clegg, Eli Cox, Robert Doty, Mitchell Kreindler, Henning Kreke, Mary McCallum, Robert Prentice, Roger Roberts, Lynn Utter, and Reid S. Walker.

Contributors to the Presidential Scholarships include Paul Aaron, John Adams, Les Allison, Eric Bass, Ken DeAngelis, Kenny Jastrow, Harris Kerr, John Massey, Ben Moreland, Baker Montgomery, Bob Graham, James Huffines, Woody Hunt, William Montgomery, Ray Nixon, and Andrew Vo.

Contributors to the Dean’s Scholarships include George Ackert, John Adams, Mike Glazer, Lee Jacobe, Steve Lauterbach, Clement Marcus, Gary Martin, Christopher Mize, Marc Myers, Ray Nixon, Gary Pearce, Dan Sharplin, Bob and Jane Snow, and Sean Waggoner.

Melton announced future McCombs Scholars events. On April 23, George Ackert and Skip McGee are hosting a reception in New York. On April 30, Tim and Nancy Carter are hosting a reception in Fort Worth. Also on April 30, John Massey and Brien Smith are hosting a reception in Dallas.

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Melton concluded by sharing an email he received on March 1 from the university’s Central Development Office, which said that in 2012 the McCombs School had the largest number of newly endowed presidential scholarships and fellowships that they have ever had at a single college, school, or unit in one year. Melton said this success is a testament to John Adams and all the hard work he has put into the program.

Breakout Sessions

Health Care Initiative and Medical School UpdateBob Messing, vice provost for biomedical sciences, and Dean Tom Gilligan

Dean Gilligan introduced Bob Messing who is currently the chair for the medical school’s steering committee. Messing explained he is a trained neurologist, came from a 26-year career at the University of San Francisco where he ran a research laboratory, and moved to Austin specifically for the Dell Medical School. He expressed his excitement as the Dell Medical School will be the first new major medical school at a tier 1 campus in 50 years.

Messing explained the goal of the Dell Medical School will be to create an academically oriented medical school that will create leaders in science and policy. They will be able to do this as the school will be a public-private partnership between The University of Texas at Austin, Central Health, and the Seton Healthcare Family. Messing explained that the committee’s current activities include accreditation, facilities planning, affiliation agreements, and a search for the school’s dean.

Susan M. Cox MD, interim senior associate dean, is leading the accreditation process which will take anywhere from two to three years. Messing expressed that Cox is the best person to lead this process as she has a great deal of experience with medical education. She has already formed the committees that will develop the medical curriculum that the Texas Higher Education Coordinating Board will review.

As for facilities planning, two master plan architects are currently involved – Sasaki Associates and Page Southerland Page. Sasaki Associates is involved with all university planning and Page Southerland Page was brought in as they have experience building hospitals. Messing explained these two firms will not necessarily be the two firms building the school, but are involved presently with the planning of the site.

There are currently three phases in the medical school’s master plan. Phase one includes a research building, medical office building, academic building, and a 220-bed teaching hospital. The teaching hospital will be built by Seton and will be in line with the changing health care trends of preventative medicine and outpatient care.

In total, phase one will cost anywhere from $280-350 million and is subject to The University of Texas System Board of Regents approval. As for phase two and three, Messing expressed they are more “dream plans.” For example, phase two includes a psych hospital and cancer center. Messing stressed there are many things that can change as the Board of Regents must approve each phase.

In terms of affiliation agreements, Messing explained they are developing the Community Care Collaborative which includes both Central Health and the Seton Healthcare Family. The university will

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negotiate with the collaborative to agree on terms of governance and compensation. There must be a plan in how to build the salary structure and it’s an important negotiation that must be well underway before a dean is selected for the school.

Regarding the dean search, Messing explained a search firm has already been selected and that he is also chairing the search committee. They will be inviting potential deans throughout the summer and hope to have a dean in place by October or November 2013.

Messing then invited Dean Gilligan to speak about the impact and opportunity the Dell Medical School can have for the McCombs School.

Dean Gilligan explained health care is an area where McCombs can make an impact as the school’s faculty and students possess unique skills that they can bring to bear on the health care issue. The school is currently in the fourth year of its Healthcare Initiative. The initiative focuses on health care delivery systems, is engaged in more than eight health care related research projects, and features an exciting campus-wide symposium and seminar program each year.

Dean Gilligan and Messing then opened up the session to questions.

Member George Ackert asked how the Dell Medical School will affect other University of Texas medical systems. Messing answered that the Dell Medical School’s objective is a bit different from other schools in the system (small, academic, focused on preventative care) and that the deans from UT Southwestern and the UT Health Science Center at San Antonio are incredibly supportive and are on the steering committee.

Messing answered a second question about how a possible cancer center in phase two might affect the MD Anderson Cancer Center in Houston. He stated that he does not know, but there is a substantial patient population that supports a cancer center in Austin and the general Central Texas region, since it often proves difficult to travel to Houston for treatment. Messing also explained that because the Dell Medical School will be the only medical school on a major university campus, it will have unique resources available (i.e. engineering and biomedical sciences) that could make a local cancer center very viable. However, Messing stressed that phase two and three projects are not final and many questions still exist about how the master plan will evolve.

Student Leadership Initiatives at McCombsEthan Burris, associate professor, Management DepartmentStephanie Hinojosa-Galvan, director of student life, Texas BBALuis Martins, associate professor, Management DepartmentDeidra Stephens, director, Texas MBA+ Program

Ethan Burris introduced the Leadership Initiative. In building their plans for the initiative, Burris explained that he and his team’s first steps were to survey alumni and recruiters and examine the companies in which McCombs alumni had gone to work at. Their research and survey results helped them understand in what areas the school was weak in and how McCombs compared to other schools with top leadership programs.

Burris introduced Stephanie Hinojosa-Galvan to speak more on the initiative. Hinojosa-Galvan began by

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explaining what the school offers students in leadership training. There are 34 student-affiliated organizations in the undergraduate program including the Leadership Program.

The Leadership Program is a four-year developmental and experiential leadership program that is broken down into the following:

First year – Self-awareness – What skills they and others possess Second year – Managing groups Third year – Primer on community issues Fourth year – Lecture series and dinners with business leaders

The program ends with a Capstone project in which students teach vocational students in Belize how to present to funders, write resumes, develop business plans, and more.

Hinojosa-Galvan then introduced Deidra Stephens. Stephens explained that the MBA programs for leadership include 45 student organizations, eight fellows programs and funds, two MBA community programs, and the MBA+ program.

The MBA+ program is made up of four components:

Executive, specialty, and communication coaches Leadership communication, industry, training, and career planning workshops MBA+ consulting projects – students given opportunities to consult with real companies MAN385 leadership development course- A four-credit class in which they reflect on their

experience

Ethan Burris ended the session by expressing that university leadership programs do not rank high due to a missing overall integrative framework and branding across all programs. He explained the top leadership programs are built into a school’s culture, are integrated across programs, and are exposed to students extensively. Also, these highly successful programs are supported by an ecosystem that is supported by significant investments in resources as it all contributes to the school’s strategic agenda.

Burris called for an integrated center for leadership excellence. He said McCombs has a vibrant culture we need to connect to and with the creation of a new leadership center for excellence, Burris expressed that the school could take leadership to the next level.

Texas EnterpriseDavid Wenger, director of communications, McCombs School of Business

Wenger began the session by asking – what exactly is Texas Enterprise? He explained that it is an online publication born out of the faculty’s main lament (heard by Dean Gilligan) that nobody knows about their research. From that stemmed the purpose of Texas Enterprise – to encompass and showcase the concepts that come out of the vast business knowledge at the McCombs School. They do this by presenting complex and technical research in a digestible and translatable way.

In terms of statistics, Wenger touted that Texas Enterprise has moved up to eighth place in the world’s most influential faculty publications produced, has published over 700 articles, and has an average of 8,500 visitors per month. Wenger expressed that although the statistics are positive, they want to do more.

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A part of Dean Gilligan’s strategic plan is to build more of a community around the McCombs School. Wenger explained they have used Texas Enterprise and the Texas Enterprise Speaker Series as an outlet for others in the university community to bring and share their expertise to McCombs. Wenger then introduced Gayle Hight, special projects marketing manager, to come up and speak about the Texas Enterprise Speaker Series.

The Texas Enterprise Speaker Series is a monthly event with a featured university faculty speaker focusing on an issue that crosses with a major business application. Hight revealed there are anywhere from 100-300 attendees at every speaker event. Wenger added that the series is wildly popular and each event is often close to selling out each time, which provides them an opportunity to seek sponsorships at the premiere and recognized levels.

After the presentation, Wenger accepted questions.

Ben Rodriguez asked if any Texas Enterprise contributing writers would be willing to do a webinar version of their stories for the McCombs School’s Knowledge to Go (KTG) webinar series. Wenger answered that they would be.

Ed Tonkin, chair of the BBA/MPA Advisory Board, asked how much of Texas Enterprise’s content is internal and external. Wenger answered it splits half and half as the publication serves both as a mouthpiece for the McCombs alumni community and general university community.

Robert B. Rowling Hall UpdateDean Gilligan and Todd Schliemann, Architect

The new graduate business school building received its naming gift from Robert B. Rowling. Dean Gilligan explained that Rowling is a BBA alumnus, originally from Dallas, a successful businessman, a former Board of Regent, and demonstrates an enormous amount of integrity in everything he does.

Rowling Hall will be built at the corner of Martin Luther King, Jr. Blvd. and Guadalupe St. The total cost of the building project is $155 million. Project funds are projected to come from the following:

$58,250,000 in gifts $15,500,000 in revenue financing system bonds supported by parking and transportation $23,000,000 in revenue financing system bonds supported by AT&T Executive Education and

Conference Center $58,250,000 in revenue financing system bonds supported by designated tuition

Dean Gilligan explained that they plan to be in the leadership giving phase until April 2014 and then will go into the public phase from there until September 2014. In May 2014, they will approach the Board of Regents. At that time they must have all the funding from gifts in place as well as the architect’s plans and it is only then that it will go under review. If approved by the Board of Regents, ground on the building will break the next day.

Dean Gilligan then introduced Todd Schliemann, lead architect for Rowling Hall as well as founding partner and design principal at Ennead Architects. Schliemann showed photos of buildings he and his team have designed and built. These buildings span across cultural, academic, health care, and performing arts organizations and entities. Some examples of their work include: the William J. Clinton Presidential Center, the Public Communications Building at Syracuse University, Stanford Law School, the Main Hall

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at Carnegie Hall, and the Natural History Museum of Utah.

Schliemann expressed that if architecture is done right it can inspire people to learn. For instance, you can go to a library and hide yourself away and not really remember what you read. But, sometimes the architecture can inspire a person enough that you will remember what you read. Schliemann said he wants to bring exactly that to the new graduate building.

He plans to do that by keeping in mind the different modes of learning: instruction, focused study, collaborating, and socializing. In order to encompass all of that, he explained that he envisions every space in Rowling Hall being a classroom. Students will have opportunities to learn in traditional classrooms, use embedded technologies, work in consolidated or dispersed spaces, and more.

Schliemann expressed that he finds the site of the new building to be pretty remarkable. He acknowledged this is an opportunity to think about campus planning, as they must simultaneously:

Connect and blend Rowling Hall into the existing AT&T Executive Education and Conference Center.

Keep the design and character of Rowling Hall similar to the existing buildings on campus, but also make it a unique destination, as it is an anchor to the campus due to its location at the corner of Martin Luther King, Jr. Blvd and Guadalupe St.

Link Rowling Hall to the existing McCombs School building.

Other things Schliemann and his team are keeping in mind are:

Green space networks – This is a very important feature for the new building. They want to create a beautiful landscape network.

Climate – Schliemann and his team understand heat is a big factor and are very much aware that outdoor areas must be shaded.

Environmentally friendly – Rowling Hall will be a LEED-gold building. They will carefully manage resources.

Dean Gilligan added that they are at the beginning of the process. They do not currently have renderings as they have just started to think about needs for the new building. They are positive that they will be able to strike a balance between a beautiful architectural space and a learning environment that works for all.

Schliemann opened the discussion to questions.

Dean Gilligan asked Schliemann if he could give an estimate of how many people have been involved in the process so far. Schliemann answered that a team of five in his office have done initial work on the project, but that soon a team of 30 or more will begin to get involved as they move into the drawing process.

Dean Gilligan asked Schliemann what is his biggest concern about the project. Schliemann answered that he has no concerns. He is really excited to begin the process as the spirit of the place is great and everyone he has met so far has a good, positive anticipation for the future. He expressed he is aware that there could always be future conflicts such as budgets and schedules, but it is not anything he and his team have not run into in the past.

Chair Alan Dreeben asked if the space at the top of the building (with spectacular views of campus) could be a potential revenue builder for the school. Schliemann answered that this is something they are

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considering since there are potentially beautiful views of both the campus and the Capitol. However, they must also think about shade, climate, and the materials that would be used.

The last two questions asked of Schliemann by members were student-interaction related:

1. Is there an opportunity that students from other schools (i.e. School of Architecture) will be involved in the project? Schliemann answered there has been some discussion about it and so far students have only been a part of the visioning sessions.

2. Could there be potential for more student interaction in the project through an internship process? Schliemann answered yes and that there is a School of Architecture student interning in their office currently.

Dean Gilligan thanked Schliemann for his presentation and Q&A session.

School Update – Dean Tom Gilligan

Career StatisticsDean Gilligan explained that as of spring 2013, 68 percent of the Full-Time MBA students have offers with 58 percent of them accepting. These statistics are on par with last year’s numbers of 69 percent with offers and 58 percent accepted. As for internships, 57 percent have offers and 47 percent have accepted. Compared to the previous year, 64 percent had offers by spring with 53 percent accepted. Dean Gilligan shared that they believe internship statistics are lower this year as students are being more selective and delaying their acceptance.

For the past four years, there have been no specific patterns for MBA student job offers and acceptances at time of graduation and then three months out. In 2008 we saw three month offers and acceptances in or around the 90 percent range, but then saw that dip to 79 and 78 percent in 2009 keeping in trend with the economic difficulties at the time. The same can be said for graduation offers and acceptances in 2008 and then 2009 with over a 15 percent decrease in both over the course of one year. On both fronts (three months out and at graduation) percentages slowly increased from 2010-2011 and then in 2012 we saw numbers return to 2008 levels.

In terms of MBA compensation, the class of 2012 had a base salary average of $105,112 (LY $101,412) and median of $100,000 (LY $100,000). Signing bonuses stood at an average of $23,426 (LY $23,085) and the median at $20,000 (LY $20,000). For 2013 MBA recruiting trends, Dean Gilligan explained consulting holds the first place spot, that students have a strong interest in the high-tech field, and that the energy sector is up with students entering it from both the consulting and finance end.

As for students from our MPA program, Dean Gilligan explained that their full-time employment statistics are steady and strong as always. In 2012, 94 percent had job offers with an average salary of $54,767. In 2011, 95 percent had job offers with an average salary of $52,614. And in 2010, 93 percent had job offers with an average salary of $52,179.

For graduating BBA students, they had an average salary of $55,379 ($54,150 in 2012). The top three industries they entered were consulting, banking (investment), and technology. The top four technology firms included Google, Amazon, Microsoft, and Dell. Also, Dean Gilligan explained recruiting of BBA students remained high based on the following statistics:

181 companies were at the Career Expo this year (10 percent increase from last year)

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Investment banking interviews during Super Week increased by 30 percent 13 employers offered leadership seminars during winter or spring break

RankingsDean Gilligan explained the Full-Time MBA is ranked No. 17 in Forbes and U.S. News & World Report, No. 18 in The Economist and Poets&Quants, and No. 19 in Bloomberg Businessweek. The Working Professional MBA program ranked No. 7 in U.S. News & World Report and No. 11 in Bloomberg Businessweek. The Texas Evening MBA (TEMBA) program ranked No. 9 in Poets&Quants, No. 12 in Wall Street Journal, No. 14 in Financial Times, No. 17 in U.S. News & World Report, and No. 19 in Bloomberg Businessweek. In addition to the above rankings, Texas MBA ranked top 10 in multiple individual areas as well.

Other rankings include:

MPA program ranked No. 1 for the seventh year in a row (U.S. News & World Report) BBA program ranked No. 9, up from No. 17 (Bloomberg Businessweek)

o Biggest jump of any Top 20 business schoolo Tied for highest ranking ever (since 2006)o No. 3 public school (University of Virginia at No.2 and University of Michigan at No. 8)o No. 1 four-year public programo No. 4 recruiter ranking (up from No. 11 in 2012 and No. 56 in 2011)

Dean Gilligan explained the improvement in BBA rankings are due in part to the work BBA Career Services has done after receiving results from a survey of BBA recruiters and students done by Carnegie Communications.

From the survey they learned that only 79 percent said the overall recruiting experience met expectations. Despite two-thirds of recruiters saying McCombs graduates were stronger or much stronger than graduates from other schools, many recruiters were still unhappy with the experience they had with the BBA program. Recruiters felt like there was a lack of communication and that students were not fully prepared for interviews.

Dean Gilligan explained that after they received these results they began to hire additional staff that would spend much more time in professionalizing the relationship between recruiters and BBA Career Services. They also created ways to improve students’ preparation by increasing their exposure to employers, practicing interview techniques, and by enhancing BA101, a career strategies course.

Dean Gilligan expressed that rankings are important because they inform you of the things you’re doing wrong. He then thanked Velma Arney, director of BBA Career Services, for all the hard work she and her team have done to improve the BBA ranking.

AdmissionsDean Gilligan explained that Full-Time MBA applications are up (peer schools are flat to five percent down) and the quality of the applicants remains strong. There is also a 20 percent increase in admissions offers with an 11 percent increase in acceptances year over year. In round one of yields, 54 percent accepted (42 percent last year at same time). Dean Gilligan forecasted a class size of 275 up from 235.

The Working Professional and Executive MBA programs also have solid applications. Dean Gilligan said they expect growth in the Dallas/Fort Worth program, but the other MBA programs are at capacity.

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MPA admissions continue to be very competitive. This year 535 applications were received (LY 577) for a class of 110 (LY 100). Dean Gilligan mentioned other program competitors have seen their number of applicants drop.

The BBA program received about 7,500 applications in 2013 and 1,600 were admitted. Admission statistics for previous years are:

2012 – More than 7,100 applications and 1,403 admitted 2011 – More than 7,100 applications and 1,340 admitted 2010 – 6,157 applications and 1,436 admitted

Business Honors Program (BHP) applications have risen steadily from 2008 (938) to 2012 (1,061). This year 1,255 applications were received and 236 have been admitted. The average SAT score of the 2013 applicants was 1483 and were in the top 2.2 percent of their high school class. Dean Gilligan mentioned the McCombs Scholars Program is driving the quality of the BHP students, as they are now able to compete with scholarship offers from peer schools.

The Master of Science in Finance program is currently processing applications for the incoming 2014 class, but has admitted 40 students so far (LY 29). Dean Gilligan explained that many of the applicants are coming directly from undergraduate school and are looking for a career change. The incoming class has an average GMAT score of 710 and an average GPA of 3.47. Also, 28 percent are international and 41 percent are female.

The Master of Science in Business Analytics program is currently processing applicants for the incoming 2014 class as well, but has received 398 applications with 50 students admitted. The average GMAT score of the incoming class is 710, the average GPA is 3.51, 42 percent are international, and 35 percent are female. Dean Gilligan mentioned the general quality of the students is very high and they are very excited to get started.

Progress on Strategic PlanDean Gilligan explained McCombs is a leader in business education. In 2012, faculty research productivity ranked No. 9 in the world’s top 100 business schools (compiled by UT Dallas). In a similar ranking by the Financial Times, McCombs ranked No. 17 worldwide.

These rankings are right in line with McCombs’ intellectual influence. Dean Gilligan explained Professor Granof influences accounting standards as a member of the Financial Accounting Standards Board (FASB) and Governmental Accounting Standards Board (GASB). Professors Dyer, Lasdon, and Alpert conducted a study for the Texas Department of Transportation (TxDOT) that allowed the agency to modify highway maintenance priorities by incorporating customer satisfaction perceptions. The Business, Government, and Society Department’s “Ethics Unwrapped” video series, including a substantive documentary on convicted lobbyist Jack Abramoff, has been especially popular and influential and is being used throughout the nation.

Dean Gilligan congratulated those that have recently won teaching awards:

Regents’ Outstanding Teaching Awardo Steve Kachelmeier (Accounting)o Anitesh Barua (IROM)

McCombs Teaching Awards13

o Excellence in Education – Jim Deitrick (Accounting)o Joe D. Beasley Award (MBA Teaching) – Tom Shively (IROM)o Hank & Mark Harkins Foundation Award for Effective Teaching in Undergraduate

Classes – Brian Lendecky (Accounting)o Trammell/CBA Foundation Teaching Award for Assistant Professors – James Scott

(IROM) & Rory McDonald (Management)o Fawn & Vijay Mahajan Teaching Excellence Award for Executive Education – Luis

Martins (Management)

Dean Gilligan then provided an Energy Management and Innovation Center (EMIC) update. He announced the new Undergraduate Energy Management Program that will provide students the opportunity to add 18 hours of energy content to complement any university degree. Curriculum will cover law (oil and gas, real estate, contracts), oil and gas operations, geology, energy technology, and policy. The program will be offered on a trial basis beginning summer 2013.

Lastly, Dean Gilligan touched on funding progress with McCombs alumni and benefactors. He explained the school is on pace to hit eight percent alumni giving participation (LY 6.4 percent). Every one percent increase translates into $1 million of giving with most going to fund scholarships (i.e. McCombs Scholars program).

As for McCombs’ giving totals, there has been a steady increase since 2009-2010. In this year, giving reached $13 million, then increased to $19 million in 2010-2011, $29 million in 2011-2012, and $32 million in 2012-2013. The $32 million figure includes the $25 million Rowling family gift for the new graduate building.

Dean Gilligan thanked all those that have worked very hard to increase our giving totals. He noted that it’s especially important in current times as public funding continues to decrease and we will continue to need support in order to stay competitive with the best schools.

Dates To RememberFall 2013Nov. 7 - New Member OrientationNov. 8 - Council Meeting, Spouse Program, and Hall of Fame

Spring 2014March 27 - Council DinnerMarch 28 - Council Meeting and Spouse Program

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