Know WPC

Economics 101: What's Your Grade?

KnowWPCarey — Wed, 16 May 2012 10:42:35 EST

How confident are you that you understand background facts on economic issues? Every year at our Economic Outlook Luncheon, we challenge our guests to test their economic acumen, specifically as it applies to the state of Arizona. Here's your chance! Answers and scoring are at the bottom of the story, but don't cheat!

Economic Outlook Luncheon: The State Budget Perspective

KnowWPCarey — Tue, 15 May 2012 10:42:35 EST

Professor Dennis Hoffman, director of the L. William Seidman Research Institute at the W. P. Carey School, gave an analysis of the state’s budget situation. He says taxes on individuals are relatively low in Arizona, and the public pensions are generally solvent. Also, the recent upswing in the economy has helped provide some stabilization for incoming state revenue, even though tax collections as a share of income have continued to fall for years. However, the current clarity in the fiscal picture will start to get cloudy again. Hoffman spoke May 15, 2012 at the Annual Economic Outlook Luncheon, sponsored by the Economic Club of Phoenix.

The Jobs Forecast for Arizona: Slow but Steady Growth

KnowWPCarey — Tue, 15 May 2012 10:42:35 EST

Job Growth, Arizona EcoomyArizona is adding jobs at a rate that puts the state in the top 10 for job growth, but full economic recovery is still ahead, according to Lee McPheters, economist and director of the JPMorgan Chase Economic Outlook Center at the W. P. Carey School of Business. McPheters spoke May 15, 2012 at the Annual Economic Outlook Luncheon, sponsored by the Economic Club of Phoenix.

Demand for New Homes is Back in Phoenix

KnowWPCarey — Tue, 15 May 2012 10:42:35 EST

In the Phoenix resale home market, supply is tight – especially for lower-priced properties -- and prices are on the rise, said Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School. In his presentation at the Annual Economic Outlook luncheon, Orr said that homebuilders will need to find a solution to the labor shortage in order to meet demand. The event is the finale of the 2011-12 season of the W. P. Carey School’s Economic Club of Phoenix.

Former Medicare Administrator: How to Solve the Tough Problems that the Affordable Care Act Doesn't

KnowWPCarey — Mon, 14 May 2012 10:42:35 EST

For some Americans, the Affordable Care Act - sometimes referred to as Obamacare - was supposed to fix all of the healthcare industry’s problems. It hasn’t, explained Gail Wilensky, who delivered the 2012 Mark McKenna Lecture. Wilensky, a senior fellow at Project HOPE and a former administrator of what is now the Centers for Medicare and Medicaid Services spoke about the significant problems that the Affordable Care Act doesn’t solve and what needs to be done to solve them now.

2012 GDP Off to a Slower Start

KnowWPCarey — Mon, 07 May 2012 10:42:35 EST

U.S. Gross Domestic Product (GDP), the measure of the nation's output of goods and services, grew by 2.2 percent in the first quarter of 2012, according to the latest figures from the U. S. Bureau of Economic Analysis. To the surprise of practically nobody, growth in the first quarter was slower than the 3.0 percent rise recorded in the fourth quarter of 2011. Consumer spending provided the most punch to the gain in real output, growing by 2.9 percent, the fastest pace in more than a year. But a slowdown in business investment spending and continuing outright declines in government spending combined to weaken growth in the quarter.

Arizona Job Growth Ranks 8th in March

KnowWPCarey — Sat, 05 May 2012 10:42:35 EST

Arizona employment increased by 1.9 percent year-over-year in March, advancing the state into the 8th position in the job creation rankings. Last year at this time, the Grand Canyon State ranked 36th. North Dakota again led all states in the rate of job growth in March, as non-agricultural employment rose 6.6 percent compared to March of 2011. Phoenix ranked in 4th position among large metro labor markets, with growth of 2.3 percent. Phoenix ranked among the top 5 fastest growing large labor markets in information industry jobs (2nd), health care (3rd) and construction (4th) over the past 12 months.

Another Price Increase Reflects Different Mix of Homes for Sale

KnowWPCarey — Thu, 26 Apr 2012 10:42:35 EST

Housing prices rose in the Phoenix market in March, signaling a shift in the mix of what is being sold, according to Michael Orr, author of the monthly resale real estate report from the W. P. Carey School of Business. It’s a complex market, still extremely out of balance with supply extremely low. Eventually, the market will find that magic spot where prices are high enough to coax more sellers to the game

The Economic Minute: High Fuel Prices Driving Behavior Change

KnowWPCarey — Fri, 20 Apr 2012 10:42:35 EST

With inflation-adjusted gas prices as high as they’ve ever been, why aren’t we hearing more about pocketbook pain? Robert Mittelstaedt, dean of the W. P. Carey School of Business looked at the factors affecting gas prices and the ways we’ve responded. The Economic Minute is a brief presentation about current conditions delivered by a W. P. Carey School of Business expert at the monthly Economic Club of Phoenix luncheons.

Qualcomm's Irwin M. Jacobs: Technologies that Changed Our Lives

KnowWPCarey — Fri, 20 Apr 2012 10:42:35 EST

If you find yourself increasingly dependent on your smart phone, Dr. Irwin M. Jacobs should be at the top of your list of people to thank. Jacobs, founding chairman and CEO Emeritus of Qualcomm Incorporated, was named the W. P. Carey School Dean’s Council of 100 Executive of the Year on April 19, 2012. Among his 14 patents are technologies that make your smart phone so indispensible.

Metro-Phoenix Business Study: Desert About to Bloom?

KnowWPCarey — Wed, 18 Apr 2012 10:42:35 EST

The “2011 Metro-Phoenix Business Study: New Strategies for Success,” commissioned by SRP paints a community that fought hard to survive the recession, but is now cautiously optimistic about the future. All would like to return to pre-recession conditions, but the downturn has left its mark. The “new normal” amounts to leaner companies, slow growth due to restricted access to capital, and a need to learn new tools for marketing.

Food for Thought: Cherry-Picked Statistics Fuel Tax-Reform Debate

KnowWPCarey — Tue, 17 Apr 2012 10:42:35 EST

The Buffett Rule is expected to remain an issue through the November election. Sparked by billionaire Warren Buffett’s contention that he paid a lower percentage of his income in taxes than his secretary, the Buffett Rule would raise marginal tax rates on the very wealthy. Some claim that the top 1 percent already shoulder 41 percent of the nation’s tax burden -- plenty high enough, they say. Is that number for real? “They’re cherry picking,” says accounting Professor Philip Reckers.

Real Estate in Context: Low Inventories, Tight Labor Supply and the Impact on Recovery

KnowWPCarey — Tue, 10 Apr 2012 10:42:35 EST

Arizona real estate is often described as driving the economy, but is that true? Economist Dennis Hoffman and real estate experts Mark Stapp and Michael Orr discuss the role real estate has played in the cyclical Phoenix economy. Supply right now is low; in the past when supply was tight, builders could field crews quickly in response to demand, but policy changes mean that inexpensive labor will be in short supply too. If supply continues to be skimpy, will it affect overall recovery?

Stronger Quarter Ends Sub-Par Year

KnowWPCarey — Tue, 03 Apr 2012 10:42:35 EST

A sharp surge in inventories helped U.S. Gross Domestic Product (GDP) grow by 3.0 percent in the final quarter of 2011, according to the latest figures from the U. S. Bureau of Economic Analysis. The Q4 GDP increase, coming after a string of meager quarterly gains, is the best growth in the past year and a half. The resulting annual growth rate for 2011 GDP averages out to an increase of 1.7 percent, the slowest growth for any non-recession year in the post war period.

Recovery Underway, but Supply and Demand Out of Balance

KnowWPCarey — Tue, 27 Mar 2012 10:42:35 EST

You could say that Phoenix is a seller’s market this spring, although there’s very little real estate to buy. Real estate expert Michael Orr reports that with interest rates low, the economy beginning to stir and prices still very affordable compared to salaries and rental rates, a swift recovery could be in the cards. But supply is so tight that “buying a house is often quite a struggle.” After years of churn, the market is finally in focus, but it’s out of balance.

Which States are Growing? The Latest Tally

KnowWPCarey — Wed, 14 Mar 2012 10:42:35 EST

When the Arizona economy went into a severe downturn at the end of 2007, mounting job losses, rising foreclosures and increases in unemployment raised the possibility that Arizona’s population might actually begin to decrease as job seekers went elsewhere. New U.S. Census Bureau figures show that Arizona population increased during each year of the recession, but at a much slower pace than during the housing boom, according to economist Lee McPheters, speaking during the Economic Minute at the Economic Club of Phoenix March luncheon.

Leaders, Cheer Up! Positive Thinking can Boost Organizational Performance

KnowWPCarey — Wed, 14 Mar 2012 10:42:35 EST

Research indicates that psychological characteristics such as optimism, resilience and hopefulness can impact performance among top management teams. What’s more, these performance-boosting characteristics can grow when nurtured, and their impact increases under transformational leadership, according to a study conducted by Suzanne Peterson and Zhen Zhang, two assistant professors of management at the W. P. Carey School of Business.

US Airways CEO Doug Parker: New Normal Includes Ala Carte Service Fees and Fewer Carriers

KnowWPCarey — Wed, 14 Mar 2012 10:42:35 EST

Doug Parker is chairman and CEO of US Airways. In a speech at the Economic Club of Phoenix, Parker surveyed the state of the airline industry as the economy slowly recovers, and traced the America West/US Airways story – which he termed “remarkable.” The Economic Club of Phoenix is a forum for the discussion of economic and business issues among academic, business, labor and public sectors in the Phoenix area.

Why do Investors Sometimes Make Bad Investment Choices?

KnowWPCarey — Tue, 13 Mar 2012 10:42:35 EST

Individual investors sometimes make decisions that are “irrational” -- mistakes they know they shouldn’t be making. So what causes investors to make these mistakes? What causes some investors to be less prone to biased investment decision making and others to be more susceptible to it? Is there anything that can be done to moderate such behavior? Research by visiting finance professor Stephan Siegel considers whether genetics may have a role.

Raghu Santanam: On the Front Line for Healthcare Technology Rollout

KnowWPCarey — Wed, 07 Mar 2012 10:42:35 EST

Raghu Santanam will be on sabbatical next year at the Mayo Clinic in Scottsdale, Arizona. The topic he is exploring could not be timelier. The health care reform legislation that requires hospitals, clinics and doctors to keep electronic medical records also mandates that patients be given what’s called “meaningful use” access. Santanam will be on the front line as Mayo rolls out a patient portal system for Arizona.

Supply Chain Management in Healthcare: New Research Focus

KnowWPCarey — Thu, 01 Mar 2012 10:42:35 EST

Eugene Schneller has been at the lead of research initiatives concerning the emergence of supply chain management in healthcare organizations. Recently Schneller talked with KnowWPCarey about the ways supply chain management can positively impact the revenue cycle and how healthcare reform is driving change. The Health Sector Supply Chain Research Consortium (HSRC-ASU) is a research group within the department of supply chain management at the W. P. Carey School of Business.

What I Like About You: The Ideal Director

KnowWPCarey — Wed, 29 Feb 2012 10:42:35 EST

What makes an individual an effective director of a Fortune 500 company? Is it skills, experience, and connections? Or is it outside allegiances that pull a director one way or another? Are women better at it than men? Do executives from other companies have an edge? In recently published research, W. P. Carey management professor Amy Hillman and her co-authors sought answers to these and related questions through an exhaustive and detailed analysis of the voting records of shareholders of major U.S. corporations.

Troubled Phoenix Real Estate Market Stirring: Prices Beginning to Rise

KnowWPCarey — Thu, 23 Feb 2012 10:42:35 EST

In the last 12 months major changes have emerged in the troubled Phoenix real estate market – changes that have gone largely unrecognized by the shell-shocked public. This month we introduce Michael Orr, real estate expert and newly appointed director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business. Orr explains what he’s seeing in the Phoenix market, and offers his outlook for the months ahead. After listening, be sure to look at Orr’s full report for complete analysis and data.

Ready for Spring? The Recovery Mindset

KnowWPCarey — Tue, 21 Feb 2012 10:42:35 EST

Gary Naumann is an entrepreneur and director of the Spirit of Enterprise Center at the W. P. Carey School of Business. He oversees the Spirit of Enterprise Awards, putting him in contact with about 250 companies every year and giving him an up close view of the ways companies have coped through these down times. With green sprouts of recovery slowly beginning to appear, we asked him what businesses should be doing now to be ready for the comeback.

Moving from Products to Services: The Six Big Challenges

KnowWPCarey — Thu, 16 Feb 2012 10:42:35 EST

Product companies are looking to services as a way of increasing profitability and leveling out the revenue cycle. But marketing Professor Stephen Brown with the W. P. Carey Scho0ol’s Center for Services Leadership, says that companies who attempt the shift must navigate through a continuum. Developing the service solution that generates major revenue is a complex process. Brown and colleagues have examined the challenges.

Risky business: Information Systems Research Targets Accounting Threats

KnowWPCarey — Mon, 06 Feb 2012 10:42:35 EST

Call them a special breed: the scholars who work at the intersection of accounting and information systems. They target corporate risk by studying security, IT controls, IT processes, governance and compliance with Sarbanes-Oxley. Professor Paul Steinbart moderated a workshop involving some of the leaders of this field at the 2011 International Conference on Information Systems (ICIS). Their research is at the forefront of risk mitigation in the digital age.

The Economic Minute: Capital Gains Revenues Should Be a Sweet Surprise in Arizona

KnowWPCarey — Mon, 06 Feb 2012 10:42:35 EST

According to an economic model developed at the W. P. Carey School of Business, Arizona is headed for a pleasant surprise in April. Capital gains taxes, typically paid quarterly with the largest payment in April, are rising, according to economist Dennis Hoffman, director of the L. William Seidman Research Institute. But capital gains are volatile, Hoffman pointed out, and therefore cannot be used for ongoing expenses or permanent tax cuts. If the model proves accurate, all eyes will be watching to see how the legislature reacts.

Shell Executive Curtis R. Frasier: The World Energy System

KnowWPCarey — Thu, 02 Feb 2012 10:42:35 EST

Curtis Frasier is the executive vice president and general counsel of Royal Dutch Shell’s Upstream Americas business. He is also Shell’s head of legal in the USA. In his speech at the Economic Club of Phoenix on February 2, 2012, he described Shell’s business worldwide and commented on sustainable energy issues. The Economic Club of Phoenix is a forum for the discussion of economic and business issues among academic, business, labor and public sectors in the Phoenix area.

Brand Spanking News: Buying and Selling Brands Can Pump Up Stock Prices

KnowWPCarey — Mon, 23 Jan 2012 10:42:35 EST

Corporations may strut their synergies and crow about cost savings in acquisition announcements, but does buying a company really create shareholder value? Generally not -- but what happens when Company A buys Brand X from Company B? As it turns out, that transaction could be a winner for all, according to research recently conducted by Michael Wiles, an assistant professor of marketing at the W. P. Carey School of Business.

Tribute:
Remembering Wm. Polk Carey

KnowWPCarey — Wed, 18 Jan 2012 10:42:35 EST

On January 2, 2012, the W. P. Carey School of Business lost its benefactor and friend, Wm. Polk Carey. At the January Economic Club of Phoenix luncheon, Dean Robert Mittelstaedt delivered a tribute, speaking about Mr. Carey’s early interest in business, his innovations and his high ethical standards. Mittelstaedt also recalled Mr. Carey’s support of higher education, especially the school at Arizona State University that bears his name.

Phoenix Real Estate Expert Puts a Period on 30-Plus Years Analyzing the Market

KnowWPCarey — Wed, 18 Jan 2012 10:42:35 EST

Jay Butler, professor emeritus of real estate at the W. P. Carey School of Business, has been a familiar voice analyzing the Phoenix metropolitan market since 1978. With his December 2011 report, he closes his ASU career. In this podcast, Dr. Butler reviews the numbers from December and wraps up the year 2011. Butler also shares some thoughts about the much-smaller city he moved to in 1972, and the challenges ahead for the Valley of the Sun.

The Economic Minute: Auto Sales Clue to Consumer Spending Mood

KnowWPCarey — Fri, 13 Jan 2012 10:42:35 EST

Sluggish consumer spending has been a prime job-killer in Arizona during what’s come to be known as the Great Recession, according to economist Dennis Hoffman, director of the L. William Seidman Research Institute. During the Economic Minute, a feature of the monthly Economic Club of Phoenix luncheons, Hoffman dissected consumption patterns going back to the 1980s. While spending is still below what might be expected given the historical trend, it is nevertheless creeping upward. Driving that increase, Hoffman said, is automobile sales.

JDA's Hamish Brewer: Supply Chain Management into the Future

KnowWPCarey — Fri, 13 Jan 2012 10:42:35 EST

Hamish Brewer is president and chief executive officer of JDA Software, a leading global provider of innovative supply chain management, merchandising and pricing solutions. In a speech on January 11 at the Economic Club of Phoenix luncheon, Brewer presented a primer on supply chain management, and discussed the technology-driven improvements that will alter the way business decisions are made and executed. The W. P. Carey School’s Economic Club of Phoenix provides a forum for the discussion of business and economic issues.

How to Lead: Leverage Those Mutual Dependencies

KnowWPCarey — Wed, 04 Jan 2012 10:42:35 EST

Leaders acquire the power to affect the behavior of others by controlling access to valued resources. But often access involves an element of reciprocity, says W. P. Carey associate professor of management Kevin Corley, who studies and teaches leadership theory and skills. “How to Lead” is a two-part podcast produced for Business to Go: knowledge and skills that you can put to work today in your business and career.

How to be a Successful MBA Applicant

KnowWPCarey — Mon, 19 Dec 2011 10:42:35 EST

Nick DePorter, senior manager of admissions and recruiting with the W. P. Carey MBA, discusses keys to success for MBA applicants. Find out how to highlight your strengths, share your weaknesses and create the best application possible.

How to Lead: Discovering the Source of Power

KnowWPCarey — Wed, 14 Dec 2011 10:42:35 EST

One of the characteristics of leadership is the ability to spur others to follow your direction. But exactly how do leaders do it? Kevin Corley, an associate professor of management at the W. P. Carey School of Business, studies leadership. He says we often assume that what we need is coercive power in order to make people do what we want or need them to do. The key, however, is influence - not coercion.

Phoenix Foreclosures up in November

KnowWPCarey — Mon, 12 Dec 2011 10:42:35 EST

The unsettled Phoenix metro real estate market saw foreclosures as a share of the market rise to 29 percent in November, according to a report from W. P. Carey School of Business Professor Emeritus Jay Butler. Overall activity dropped between October and November as expected given the season – from 7215 in October to 7105 in November. The median price for traditional sales was up, but the median for a foreclosed property declined.

Arizona 2012 Forecast: Still Sick, But Recovering

KnowWPCarey — Wed, 07 Dec 2011 10:42:35 EST

If Arizona’s economy were a hospital patient, she would be out of intensive care, but still in the hospital. In other words, the economy is doing better and certainly on the road to recovery, but it isn’t recovered yet. That’s the assessment shared by Lee McPheters, director of the JPMorgan Chase Economic Outlook Center at the W. P. Carey School of Business, and real estate expert Elliott Pollack, president of Elliott D. Pollack and Company.

2012 U.S. Forecast: Opportunity for Growth in Still-Troubled Economy

KnowWPCarey — Wed, 07 Dec 2011 10:42:35 EST

The U.S. economic recovery is anemic. Unemployment is high, and housing is depressed. Gyrations in the stock market leave investors dizzy. But in these difficult times there is cause for optimism, from the standpoint of both individual investors and the U.S. economy as a whole, according to two experts featured at the 48th Annual Economic Forecast Luncheon, co-sponsored by the Department of Economics at the W. P. Carey School of Business and JPMorgan Chase & Co. today.

Spirit of Enterprise Winners Embody the Entrepreneurial Spirit that Sustains Our Economy

KnowWPCarey — Mon, 28 Nov 2011 10:42:35 EST

The W. P. Carey School’s annual annual Spirit of Enterprise Awards “are designed to recognize real entrepreneurs -- those capable of starting something, growing it and sustaining it through thick and thin with constant innovation and customer focus,” according to Dean Robert Mittelstaedt. Given the hard work and risk involved in starting a business, why would anyone do it? KnowWPCarey posed that question to this year’s winners.

A Little Respect: American Consumers Are Really Mad But They're Not Asking for Much

KnowWPCarey — Wed, 16 Nov 2011 10:42:35 EST

American consumers are mad. About 50 million of us experienced at least one problem with a product or service in the last year, and it really got our blood boiling. The recently-released 2011 National Customer Rage Study showed that consumers have more problems with products or services than ever before, but surprisingly, the fix may not be all that complicated. “The good news is, if you satisfy complainants in a timely manner it will lead to higher brand loyalty and lower costs -- higher overall ROI.”

Business Pressure Drives Technology: Revolution in the Entertainment Industry

KnowWPCarey — Wed, 16 Nov 2011 10:42:35 EST

Chris Cookson, president of Sony Pictures Technologies, has been a participant in and observer of entertainment technology advances over the past 20 years. Technology enabled creative improvement, he says, but the driver for change has been business pressure. In a speech at the Economic Club of Phoenix recently, the recent W. P. Carey Alumni Hall of Fame inductee told a series of stories to illustrate his point.

Lower Foreclosure Rate, Fall Season Slows Phoenix Resale Market

KnowWPCarey — Mon, 14 Nov 2011 10:42:35 EST

Activity in the Phoenix real estate market dropped in October – a dynamic as seasonal as the cooling temperatures, because in most years sales slow as the holidays approach. A decline in foreclosures was responsible for part of the overall slowing, according to the report authored by W. P. Carey Professor Emeritus Jay Butler. Foreclosures represented 26 percent of recorded resale activity in October - the lowest percentage since April 2009.

The Future of Analytics: Testing Folklore and Intuition

KnowWPCarey — Tue, 08 Nov 2011 10:42:35 EST

Five years ago, the best-selling book "Competing on Analytics" made a case for the use of data to inform decision making. Despite evidence that analytics yields tremendous benefits across a range of industries and use cases, most organizations still don’t compete on analytics, said information systems department Chairman Michael Goul at the Deloitte Analytics Symposium, held recently in Phoenix. A sound first step? Developing a culture of experimentation, Goul said.

Promises, Promises: When One Firm Breaks Them, Two Could Suffer

KnowWPCarey — Mon, 07 Nov 2011 10:42:35 EST

A psychological contract is an individual’s beliefs about the informal obligations that exist between employer and employee. What happens when an employer fails to come through on these perceived promises? Research shows that organizational citizenship behavior plummets, and when employees such as business analysts have two bosses, the downside of a broken promise multiplies, according to assistant professor of information systems Gregory Dawson.

Can Medicare Patients Decipher Prescription Benefit?

KnowWPCarey — Tue, 25 Oct 2011 10:42:35 EST

Part D, the federal government’s prescription drug insurance program for Medicare enrollees, relies on competition between private insurers to create savings for consumers. This “managed competition” model offers consumers dozens of coverage options with the goal of enabling them to reduce unnecessary out of pocket expenses. Critics of the plan have argued that Part D is too complicated and confusing for its target audience of senior citizens, especially those with dementia. The issue created an opportunity for researcher Jonathan Ketcham, an associate professor in the marketing department of the W. P. Carey School of Business, to look at one of the deep questions in marketing, economics, psychology and public policy: can consumers make sound decisions, or would greater government restrictions make people better off?

Gary Dirks: Shedding Light on Energy Sources

KnowWPCarey — Tue, 25 Oct 2011 10:42:35 EST

Gary Dirks, former president of BP Asia-Pacific and BP China, is currently director of LightWorks, an Arizona State University initiative that capitalizes on ASU’s strength in solar energy and other light-inspired research. In a recent speech at the Economic Club of Phoenix, Dirks talked about the potential for expanding the energy supply by utilizing the power of light. The Economic Club of Phoenix at the W. P. Carey School of Business promotes discussion of economic and business issues among academic, business, labor and public sectors in the Phoenix area.

Debt Crisis: Similarities, Differences and Lessons Learned from the U.S. and Europe

KnowWPCarey — Tue, 25 Oct 2011 10:42:35 EST

In 2008, the credit crisis in the United States propelled shock waves across the Atlantic to Europe. Europe’s current debt crisis could send damaging waves to America's shores as well, according to international finance experts at the W. P. Carey School of Business. In wide-ranging interviews, these experts discussed the threat the European crisis poses to the United States, how the U.S. crisis may have contributed to Europe's woes, and whether European leaders are even now recognizing the lessons of the US experience.

Disappointing Recovery, Not Much Growth in Sight

KnowWPCarey — Mon, 24 Oct 2011 10:42:35 EST

Goldman Sachs chief economist Jan Hatzius received the W. P. Carey School’s 2011 Lawrence R. Klein Award for Blue Chip Forecast Accuracy in a ceremony on October 20, 2011. The award, presented this year by former Secretary of the Treasury Lawrence Summers, recognizes Hatzius as the most accurate forecaster among the 50 economists who submit forecasts in four categories annually to the Blue Chip Economic Indicators. At the ceremony, Hatzius offered insight on what the economy faces in 2012.

Giving and Receiving Feedback: Conducting a Productive Formal Review

KnowWPCarey — Wed, 19 Oct 2011 10:42:35 EST

When it’s time for that periodic formal review, do you know how to make the session effective? Minu Ipe, clinical associate professor of management and faculty director of the W. P. Carey MBA Evening Program, explains that there are four steps to success: identify your objective, prepare, deliver and follow up. (7:06)

Falling Foreclosures Dampen Phoenix Market in September

KnowWPCarey — Thu, 13 Oct 2011 10:42:35 EST

Sales activity in the Phoenix real estate market slowed significantly between August and September -- largely due to a drop in foreclosure activity -- according to the monthly housing report issued by the W. P. Carey School of Business. Professor Emeritus Jay Butler, who has been analyzing this data for more than 30 years, explains the dynamics of the market that caused the drop.

The Economic Minute: Cloudy with a Chance of Thunderstorms

KnowWPCarey — Wed, 12 Oct 2011 10:42:35 EST

The Economic Minute is a snapshot of the economy in Arizona and across the U.S. delivered by an expert from the W. P. Carey School of Business at the beginning of Economic Club of Phoenix luncheons. At the October event, Dean Robert Mittelstaedt described current conditions – an environment where it’s possible for the stock of two companies whose customers are at opposite ends of the income spectrum to reach record highs the same week.

Model Seamanship: Using Data to Manage Trans-Oceanic Supply Chains

KnowWPCarey — Tue, 11 Oct 2011 10:42:35 EST

Supply chain management professor Dan Brooks does research and consulting about decision making in uncertainty and environmental issues. Also director of the W. P. Carey MBA Custom Corporate program, Brooks works closely with oil companies on models that use the collective intelligence of marine professionals to calculate the risks associated with various routes -- or, as the companies say, to make high quality decisions about shipping. Recently, knowSCM talked with Brooks about his work with the petro-chemical industry.

Introducing John Fowler, New Chairman

KnowWPCarey — Tue, 11 Oct 2011 10:42:35 EST

The current business environment is multi-faceted and fast-moving. Companies must be nimble-- ready to make complex decisions quickly, some as large as completely changing the supply chain. These dynamics were top-of-mind for professor John Fowler, the new chairman of the department of supply chain management, during a recent conversation with knowSCM.

An Analytical Look at Border-Crossing Delays

KnowWPCarey — Mon, 10 Oct 2011 10:42:35 EST

Uncertainty is the enemy of the supply chain, and unfortunately that enemy is a constant companion of companies that maintain complex, extended, global supply chains. One factor in that uncertainty is the irregular nature of border-crossing delays, which W.P. Carey Supply Chain Management Professor Arnold Maltz is currently studying. Border-crossing delays are a reality for any company transporting products across a global supply chain, notes Maltz, who is researching ways to incorporate those delays into analytical inventory planning models.

Giving and Receiving Feedback: What Is Effective Feedback?

KnowWPCarey — Mon, 10 Oct 2011 10:42:35 EST

Feedback is an important tool for developing great employees, says Minu Ipe, clinical professor of management and faculty director of the W. P. Carey MBA Evening Program. She explains the characteristics of effective feedback, using the acronym S-T-A-A-M. “S” is for specific, “T” for timely, “A” for accurate, another “A”, for actionable, and “M” for meaningful. This podcast is brought to you by Business to Go from the W. P. Carey School of Business at Arizona State University -- knowledge and skills you can put to work today in your business and career.

U.S. Job Growth Slow But Steady

KnowWPCarey — Mon, 10 Oct 2011 10:42:35 EST

The nation added 103,000 new nonfarm jobs in September, according to the latest report from the U. S. Bureau of Labor Statistics. Almost as important as the September employment increase was the size of the recent revisions that now put the average monthly gain for the third quarter at 96,000 jobs, similar to the average monthly 97,000 jobs added during the second quarter. Taken as a whole, job growth during the past six months continues a pattern of slow but steady positive economic expansion.

Q2 GDP Growth Was Slow - Will Q3 Be Any Better?

KnowWPCarey — Fri, 07 Oct 2011 10:42:35 EST

Output of the national economy in the second quarter (Q2) of the year grew at an inflation adjusted annualized pace of 1.3 percent. While the Q2 rise in GDP was an improvement over the 0.4 percent increase in Q1, the gain was the second weakest since the recovery began in mid-year 2009. Economists say a double dip is possible but not certain. Meanwhile, surveys of the general public find most people think a recession is already underway.

Giving and Receiving Feedback: Seize the Moment!

KnowWPCarey — Wed, 05 Oct 2011 10:42:35 EST

If you think that the only opportunity to give or get feedback on job performance is the annual review session, you are missing many chances to improve your employees and your business throughout the year, clinical associate professor of management and faculty director of the W. P. Carey MBA Evening Program, explains why. This podcast is brought to you by Business to Go from the W. P. Carey School of Business at Arizona State University -- knowledge and skills you can put to work today in your business and career.

Dinner and a Show: Restaurants, Movie Theaters in Tough Economy

KnowWPCarey — Wed, 05 Oct 2011 10:42:35 EST

Dinner and a movie is a classic night out, but during slow economic times, you could argue that these activities are non-essential. Still, many of these businesses are doing well. At their annual kick-off event, members of the Economic Club of Phoenix heard from executives representing two Arizona-based companies that are thriving despite a daunting business climate. Russell Owens, president and CEO of Fox Restaurant Concepts, and Dan Harkins, CEO of the family-owned Harkins Theaters, explain some of the ways how their companies do it.

Eleven Metro Areas Created One Third of All July Jobs

KnowWPCarey — Wed, 05 Oct 2011 10:42:35 EST

Strong labor markets in eleven metropolitan areas accounted for one out of every three jobs created in the nation during the past 12 months. U.S. employment in July was up by 1.3 million jobs compared to last year, and 452,000 of these were contributed by eleven metros with 20,000 or more new jobs.

Avoiding a Breach: Advice for Managers from Security Experts

KnowWPCarey — Tue, 04 Oct 2011 10:42:35 EST

High-profile computer security breaches -- involving exposure of sensitive consumer information, uncovering of classified documents or disruption of corporate and government websites and systems – hit the news with alarming frequency.
Why are these breaches happening so often, and what should managers do to reduce the risk of a security incident? Security experts at the W. P. Carey School share their insights about root of the problem, and suggest what managers can do to keep their databases out of the news.

The Housing Double Dip

KnowWPCarey — Wed, 14 Sep 2011 10:42:35 EST

As analysts debate the possibility of a double dip in Gross Domestic Product (GDP), many would argue that the economy cannot move into a sustainable recovery without improvement in housing. But as of now, single family housing permits are down in 49 of 50 states compared to last year, and permits are on track for a double digit annual decline. If this happens, 2011 will become the weakest year on record for single family housing permits.

Phoenix Real Estate: Foreclosures Again the Biggest Piece of the Pie

KnowWPCarey — Wed, 14 Sep 2011 10:42:35 EST

Good news and bad news from the Phoenix real estate market this month. In August, the absolute number of foreclosures was down compared to a year ago – that’s the good news. But the percentage of the market represented by foreclosures is up -- that's the bad news. W. P. Carey Professor Emeritus Jay Butler explains that even though there were fewer foreclosures in August, there were also fewer traditional sales. And median price is down -- the result of investors snapping up foreclosed properties at low prices. Another twist: Butler reports that ads for investment seminars are starting to appear, leading to speculation that amateurs are in the market once more. Here’s his take on the August numbers.

Measured Any Which Way, U.S. Job Growth Turns Dismal

KnowWPCarey — Tue, 06 Sep 2011 10:42:35 EST

Even those who don't usually follow economic indicators could not ignore the dismal news about U.S. job growth for August. Headlines and media commentary blasted the message that the nation added no new jobs for the month. With four months of data yet to come in, it seems that the best that can be expected from U. S. labor markets would be a gain approaching one percent for the year. This would be a welcome increase, but still not enough to reduce unemployment below the 9.0 percent level. To be clear, there were in fact some new jobs created in August: netting out the job gains and losses, the latest jobs report brought no new jobs overall for the month, and a gain of only 17,000 private sector jobs.

On the Same Wavelength: The Inner Workings of Successful Teams

KnowWPCarey — Tue, 06 Sep 2011 10:42:35 EST

Just about every organization has teams that work together exceptionally well. You might say the members are on the same wavelength, but exactly what does that mean? An experiment conducted at the W. P. Carey School of Business by information systems professor Pierre Balthazard and management professor David Waldman may bring us closer to understanding what goes on when those teams are "in the zone." The researchers recorded the brainwaves of student teams using EEG technology.

From Facebook to Freedom: Does Technology Spur Democracy?

KnowWPCarey — Tue, 06 Sep 2011 10:42:35 EST

Henry David Thoreau may have penned more than 9,300 words urging people to fight unjust governments in his essay on civil disobedience, but today's political dissidents have brought throngs to the streets with 140 characters or less. Such is the power of social media. In the wake of 2011's Arab Spring, many now think that information and communication technologies (ICTs) are a driving force behind increased levels of democracy. W. P. Carey researchers are asking, are they?

Phoenix PMI Partners to Address the Changing Nature of How We Work and Connect

KnowWPCarey — Wed, 31 Aug 2011 10:42:35 EST

A new partnership between the Phoenix chapter of the Project Management Institute and the Department of Information Systems aims to promote interest in the profession of project management and bring new insights to the field. The chapter and the department are planning a conference on virtual project management,and in late September, they will co-host an Arizona Leaders in Project Management roundtable, featuring top executives and academics in the field.

How to Build Company Culture

KnowWPCarey — Tue, 16 Aug 2011 10:42:35 EST

You’ve determined that a particular culture will allow you to execute your business strategy, but how do you build it? Angelo Kinicki has years of research and consulting experience in this area as the Weatherup/Overby Chair in Leadership at the W. P. Carey School. Listen as he describes actions you can take to build that culture. The Business to Go podcast series is brought to you by the W. P. Carey School of Business -- knowledge and skills that you can put to work today in your business and career.

What Is Culture and Why Is It Important?

KnowWPCarey — Fri, 12 Aug 2011 10:42:35 EST

If asked, could you describe the culture of your company? You should, because as management professor and leadership consultant Angelo Kinicki says, culture is important to employee behavior and company performance. Listen to part one of our series on company culture. This podcast is brought to you by the Business To Go – knowledge and skills you can put to work today in your business and career.

Dip in Foreclosures Is Small Comfort

KnowWPCarey — Thu, 11 Aug 2011 10:42:35 EST

Activity in the Phoenix real estate market dropped between June and July, during the summer season when sales are usually up. The reason is that foreclosure-related activity fell once again – dropping below 30 percent for the first time since 2009. W. P. Carey School of Business Professor Emeritus Jay Butler, who has been watching Phoenix resale data for more than 30 years, says there’s small comfort in that number. Until economic conditions improve, consumer confidence will remain low, and the market will be slow to return to what used to be a normal dynamic.

The Glow is Gone from Growth

KnowWPCarey — Thu, 04 Aug 2011 10:42:35 EST

Analysts who track fluctuations in Gross Domestic Product (GDP) have come to expect a surprise or two in the annual revisions each July from the U.S. Bureau of Economic Analysis. But the latest look at the revised figures shows an economy harder hit by the recession than first thought, and a recovery that has stalled out. Surprise turned to disappointment when economy-watchers realized that real growth in output peaked a year ago, in the first half of 2010, and has become progressively weaker since then. And now, rumblings of the dreaded double dip are becoming louder.

Preventative Medicine: Calculating Disease Burden and Fighting Flu with Computer Models

KnowWPCarey — Tue, 02 Aug 2011 10:42:35 EST

Wouldn’t it be great if real policymakers could see computer simulations of their decisions before making them? In Arizona’s Maricopa County, with a population of 4 million residents, the Department of Public Health (MCDPH) will soon have such a computerized tool to use in fighting pandemic flu.

Performance Management: Feedback is A Two-Way Street

KnowWPCarey — Tue, 02 Aug 2011 10:42:35 EST

Knowing how to give and receive feedback is a crucial part of performance management, but in many organizations, feedback is reserved for the annual review. The once-a-year appraisal is not sufficient to spur behavioral change or improvement, however, and professionals who rely solely on that annual conversation miss out on key opportunities to enhance workplace effectiveness. Minu Ipe, clinical associate professor of management at the W. P. Carey School of Business, says being able to give and receive feedback effectively can help to improve both individual performance and operational efficiency.

The Neurological Signature of a Leader

KnowWPCarey — Tue, 02 Aug 2011 10:42:35 EST

Neuroscience is the study of the wiring of the brain. Researchers at the W. P. Carey School, including management professor David Waldman, are using neuroscience to discover whether there is a neurological signature for effective leadership behavior. In the past, Waldman said, the study of leadership focused on background, skills and personality, but neuroscience promises to provide important new clues on what makes for an effective leader.

1.2 Million New Jobs in Past 12 Months

KnowWPCarey — Mon, 25 Jul 2011 10:42:35 EST

Although the U.S. economy added only 18,000 new jobs from May to June, the comparison with June one year ago tells a stronger story. June employment is up by 1.2 million jobs compared to last year, an increase of 0.9 percent. Nationally, 40 states added jobs over-the-year in June. Among the top 10 growth states, over-the-year job gains in June were twice as fast as the national average.

Sine Emptore Nullum Negotium...and Few New Jobs

KnowWPCarey — Mon, 18 Jul 2011 10:42:35 EST

For decades, visitors to the office of the dean in the W. P. Carey School of Business at Arizona State University have asked about the Latin words Sine Emptore Nullum Negotium inscribed on a brass plaque on the door. Those who inquired were told the translation from Latin is “Without a customer there is no business.” Marketing faculty interpreted the plaque as a reminder of the importance of advertising and customer service. Finance faculty think it emphasizes the importance of available credit and the dynamism of a fractional reserve banking system. The economists used to ignore the sign completely. But now they see it as a capsule description of why the current economy is nearly stagnant: consumer spending is in low gear, and that is affecting business hiring and keeping the unemployment rate alarmingly high.

What Do They Value? Access as the Source of Power

KnowWPCarey — Wed, 13 Jul 2011 10:42:35 EST

Power is something that every leader, every manager and every business owner seeks, and needs, to further their interests. But, according to W. P. Carey Management Professor Kevin Corley, most leaders simply don't understand the subtle nuances of power, or how power can be leveraged to further their organizational goals.

Mark McKenna Lecture in Health Sector Supply Chain: Quint Studer's Top 10 Challenges in Execution

KnowWPCarey — Wed, 13 Jul 2011 10:42:35 EST

Quint Studer is CEO of the Studer Group, a health care consulting firm and recipient of the 2010 Malcolm Baldrige National Quality Award. Studer was the inaugural speaker at the Mark McKenna Lecture in Health Sector Supply Chain at W. P. Carey School of Business at Arizona State University on May 4, 2011. Studer provided practical ideas to maximize individual and organizational potential.

Phoenix Real Estate: A Market of Many Stories

KnowWPCarey — Tue, 12 Jul 2011 10:42:35 EST

The summer resale season in the Phoenix real estate market has been brisk, with about 10,500 single-family homes changing hands in June. And, for the fourth consecutive month, foreclosure-related sales as a percentage of the total market have fallen. But W. P. Carey Professor Emeritus Jay Butler cautions that it’s still too soon to assume that this positive trend will continue. And even though the median price is holding, it may fluctuate down as recovery proceeds. Butler said that a rise in prices may trigger a wave of re-sales as owners and investors attempt to turn a profit on the foreclosed properties they have acquired. That bump in supply could push prices lower. These dynamics and more make Phoenix real estate not one story, but many.

Changing the Way We Talk About the Cloud

KnowWPCarey — Tue, 05 Jul 2011 10:42:35 EST

"Cloud is cheap, fast and easy! Did we mention fast?!" "No hardware required!" "Why build what someone has already built?" Marketing pitches for cloud solutions sometimes run to hyperbole, creating a communications challenge for IT leaders. At a recent meeting of the Arizona Chapter of the Society for Information Management, Meritage Homes CIO Chris Filandro said that IT leaders have to do a better job of explaining to senior management the reality of the cloud.

Performance Goals for CFOs Returning to Pre-Downturn Norms

KnowWPCarey — Wed, 22 Jun 2011 10:42:35 EST

During the financial crisis and the resulting recession, companies set tough targets for their CFOs, refusing, in some cases, to give bonuses unless companies reported positive earnings, accounting professor Michal Matejka says. In a time when a lot of firms were reporting losses by no fault of their own, that meant that some CFOs probably didn't receive the sorts of bonuses that they had in the past. But they could breathe easier last year, as the performance goals set for them in their compensation plans got a little easier to achieve, according to Matejka's new research.

Fewer States Added Jobs in May

KnowWPCarey — Mon, 20 Jun 2011 10:42:35 EST

Have you heard? Economy-watchers (and incumbent office-holders) are saying the U.S. economy added nearly two million jobs in the past 15 months. Why focus on 15 months? Because that particular time frame produces the most favorable job-growth figure in an environment where everybody is looking for whatever scraps of good news they can find.

Foreclosures as a Percentage of Market Still Drifting Down, But For How Long?

KnowWPCarey — Tue, 14 Jun 2011 10:42:35 EST

The volume of home sales in May in the Phoenix market was about on par with the rest of this spring's resale season, although the percentage represented by foreclosures continued a modest decline. But whether this portends better things to come is yet to be seen, according to the W. P. Carey School's real estate expert Jay Butler. Meantime, the absence of move-up buyers continues to dampen prices, with the median price in May coming in at $129,000. This is on level with April, but notably down from the $144,000 of a year ago. Investors smelling a deal also pushed the foreclosure median price down, to about $136,000, compared to almost $149,000 in May 2010. In a recent talk with Knowledge@W. P. Carey, Butler discussed the numbers and what they mean in context.

Avnet's Steve Phillips: Selling to the C-suite

KnowWPCarey — Mon, 13 Jun 2011 10:42:35 EST

Steve Phillips is vice president and chief information officer for Avnet, Inc. In 2010, CIO Magazine named Avnet a recipient of the "CIO 100 Award." In 2011, Computer World named Phillips a "Premier 100 IT Leader." Recently, Phillips met with a group of students from the W. P. Carey School's professional sales initiative. He answered their questions about selling to the C-suite then shared the Avnet values philosophy.

A Broader View of the Stakeholder: The Way to More Responsible Leadership?

KnowWPCarey — Wed, 01 Jun 2011 10:42:35 EST

Polls have shown that Americans -- especially young Americans -- are increasingly skeptical about the concept of capitalism, and are mistrustful of the leaders of large corporations. Management Professor David Waldman is one of several W. P. Carey School of Business scholars who are studying leadership. Waldman points to a lack of what he terms "responsible leadership" at the top of many large corporations as one of the reasons for this erosion of public confidence. He argues that a too-narrow definition of corporate responsibility is at least partly to blame.

Most Valuable Asset During Supply Chain Disruptions: Strong Leader or Great System?

KnowWPCarey — Tue, 31 May 2011 10:42:35 EST

The devastating earthquake and tsunami that ravaged Japan in March provided an important lesson for supply chain managers: we are often one disaster away from a major break in the way we conduct business. How well companies handle these supply chain disruptions is crucial in how quickly they can recover from them, says supply chain professor Thomas Choi. He looked at two competing theories to explain successful handling of supply chain disruptions: does it take a great person to rise to the occasion, or a great system to weather the storm?

Number of States Adding Jobs Dips in April; Six States Lost Jobs

KnowWPCarey — Thu, 26 May 2011 10:42:35 EST

Compared to a year ago, jobs increased in 44 states, according to April figures from the U.S. Bureau of Labor Statistics. The number of states adding jobs dipped from the 48 that posted employment gains in March. The current tally of six states with job losses is the largest number so far this year, and gives evidence that labor markets are still struggling in many parts of the country.

Has the Recovery Lost Momentum?

KnowWPCarey — Fri, 20 May 2011 10:42:35 EST

With the absence of normal drivers of growth (consumers, construction, credit creation), economy watchers have become increasingly pessimistic. Based on employment gains so far this year, many analysts hoped to see a somewhat stronger figure than what the economy delivered for Q1 GDP growth. Although the Q1 advance marked the seventh straight quarterly gain in GDP, the 1.8 percent increase was the smallest since Q2 of last year.

Take Flight by Aligning Culture and Strategy

KnowWPCarey — Wed, 11 May 2011 10:42:35 EST

Research shows that continuously successful companies have developed cultures that match strategy, and have thoughtfully nurtured employee engagement. In-Flight Radio, which airs on American Airlines and US Airways flights, interviewed management Professor Angelo Kinicki about his research on culture, employee engagement and transformational leadership for its "Business and Technology Report." There's no need to buy a ticket to hear this interview, however.

Gaining Altitude in the Aerospace Industry: Report on Arizona

KnowWPCarey — Wed, 11 May 2011 10:42:35 EST

The aerospace and defense industry is an established engine of growth in Arizona, contributing $8.8 billion to the state economy and providing almost 100,000 jobs. But with competition from other states growing and the military's technological requirements changing, the state needs a coordinated approach if it wants to maintain a thriving aerospace and defense industry, according to a recently released study by the L. William Seidman Research Institute at the W. P. Carey School of Business. Institute Director Dennis Hoffman and W. P. Carey Dean Robert Mittelstaedt comment.

Phoenix Real Estate: Eye of the Storm?

KnowWPCarey — Tue, 10 May 2011 10:42:35 EST

The traditional spring resale season is in full swing in the Phoenix market, with 10,265 homes recorded sold in April. That's about 900 fewer than March, but level with April 2010. Foreclosures, including the sales of previously foreclosed homes, were a whopping 62 percent of total transactions in April. The numbers paint a cloudy picture of a market still suffering from the aftershocks of the real estate collapse, but the image shifts depending on which component you examine. Jay Butler, associate professor of real estate at the W. P. Carey School, talked with Knowledge@W. P. Carey about value -- a different element than price -- and what that large number of foreclosed homeowners mean for the future of the Phoenix market.

What Do You Know? Annual Arizona Economics Quiz

KnowWPCarey — Sat, 07 May 2011 10:42:35 EST

The Economic Confidence Quiz has become a tradition at the annual mid-year Economic Outlook Luncheon hosted by the W. P. Carey School's Economic Club of Phoenix. Here's your chance to test your economic acumen. How confident are you that you understand background facts on economic issues?

Mid-year Economic Outlook: Slow Growth

KnowWPCarey — Thu, 05 May 2011 10:42:35 EST

While the nation's economy showed some significant signs of life in the first half of 2011, the state's economy continues to bounce along the bottom. But forecasters at the Economic Club of Phoenix's Annual Economic Outlook 2011 luncheon on May 5, said they are looking at a comparably stronger finish to the year, with growth continuing at a gradually healthier pace leading up to 2015.

Using Neuroscience to Learn How To Build a Better Leader

KnowWPCarey — Wed, 04 May 2011 10:42:35 EST

In the past sixty years, advances in neuroscience have led to remarkable progress in the fight against disorders of the brain, from Alzheimer’s Disease to traumatic brain injury to addictions. Could the scientific discoveries of recent decades about how the brain works also be used to improve the functioning of healthy individuals? A team of researchers at the W. P. Carey School of Business, such as information systems Professor Pierre Balthazard, is trying to do just that. The investigators are using the tools of neuroscience, including brain imaging and neurofeedback, to identify leadership qualities in individuals and to discover ways to enhance those abilities.

Google's Education Evangelist Preaches the Gospel of Creativity

KnowWPCarey — Wed, 20 Apr 2011 10:42:35 EST

Jaime Casap, "Education Evangelist" at Google, was the featured speaker recently at the IT Leadership Seminar hosted by the W. P. Carey School of Business for students in the Master of Science in Information Management (MSIM). Other companies can learn how to innovate and maintain creativity, Casap said, by studying Google's corporate culture, which strives for an egalitarian management style that democratizes the workplace and educates every employee about the company's mission statement.

Taking Stock: Are Employee Options Good for Business?

KnowWPCarey — Wed, 20 Apr 2011 10:42:35 EST

More American companies, especially start-ups and those in the technology industry, are offering broad-based employee stock options (ESOs) as part of their compensation packages. As the market recovers, many workers view stock options as a way to get a piece of their company's action and share a stake in its overall performance. But what's in it for employers? Laura Lindsey, Ilona Babenko and Yuri Tserlukevich of the W. P. Carey School's department of finance have researched aspects of employee stock options and found that tax advantages and employee engagement are among the benefits to companies.

Foreclosures Show Tiny Improvement, But Uncertainty Still Rules Phoenix Real Estate Market

KnowWPCarey — Tue, 19 Apr 2011 10:42:35 EST

In the Phoenix real estate market, the traditional resale season begins in March, and as expected, the number of transactions last month rose to more than 11,000, up from about 8500 in February. And happily, foreclosure activity as a percentage of total transactions was down to 38 percent after climbing above 40 percent for two months. But Jay Butler, associate professor of real estate at the W. P. Carey School, says it's uncertain whether that increase in transactions and drop in foreclosure activity is the beginning of a new trend, or if the market will return to February levels. In truth, the Phoenix market is still a series of bumpy hills. Butler explains.

The Economic Minute: Inside the Job Growth Numbers

KnowWPCarey — Mon, 18 Apr 2011 10:42:35 EST

When you compare employment numbers in February 2011 to February 2010, Arizona added 20,000 jobs in certain sectors that posted job growth. During the same period, however, the state lost 15,000 jobs in certain sectors that lost jobs, including construction, financial services, and local government. The net gain was only about 5,000. Economist Lee McPheters pulls the numbers apart, using data from Job Growth USA, a W. P. Carey School of Business web tool that provides the latest job data from the 50 states and 350 metropolitan areas, including a breakdown of 37 industry sectors. To see the data, including history back to 1991, see wpcarey.asu.edu/bluechip/jobgrowth. The Economic Minute is a regular feature of the Economic Club of Phoenix luncheons.

Michael Spandau of Fender Musical Instruments: Keeping IT In Tune with the Business

KnowWPCarey — Thu, 14 Apr 2011 10:42:35 EST

Michael Spandau is Chief Information Officer and Senior Vice President for Global Information Technology for Fender Musical Instruments and a member of the W. P. Carey School's Department of Information Systems Professional Advisory Board. KnowIT caught up with him after his thought-provoking presentation at the Arizona Chapter of the Society for Information Management. His topic was the way the Fender measures key performance indicators, and how the iconic guitar maker has applied the agile methodology to IT projects. The common thread? Fender has altered the traditional approach to information technology, closely aligning IT with the business.

Qualities Shared by the Truly Successful: They Care, Listen and Live by High Ethical Standards

KnowWPCarey — Wed, 30 Mar 2011 10:42:35 EST

Phil Francis is executive chairman of PetSmart, Inc. -- the largest specialty pet retailer of services and solutions for the lifetime needs of pets. Before coming to PetSmart as president and CEO in 1998, Francis was president and chief executive officer of Shaw's Supermarkets, Inc., a subsidiary of J. Sainsbury plc. Recently he was the guest speaker at one of the W. P. Carey School's Executive Luncheons, a series of events designed to bring the corporate leaders to an audience of undergraduate students. Before his talk, Francis met with Josh Bowman, a junior majoring in marketing and the executive director of the luncheon series. Speaking from experience gained during a long career, Francis addressed the character qualities that underpin a successful life. You don't have to be a student facing graduation to benefit from his ideas.

From Green to Gold: Sustainable IT Efforts Can Drive Opportunity

KnowWPCarey — Wed, 30 Mar 2011 10:42:35 EST

Green IT initiatives already have proven their payback, but beyond energy savings and cost reductions, "green IT" is evolving into "sustainable IT." Clinical Professor Haluk Demirkan and his research partner, Robert R. Harmon of Portland State University, envision a sustainable IT that will be more externally focused; it will leverage IT to address both corporate needs and societal concerns, thereby boosting competitiveness. And in some cases, sustainable IT developments may morph into service-based technology that companies can offer to their customers.

Culture Clash: When Corporate Culture Fights Strategy, It Can Cost You

KnowWPCarey — Wed, 30 Mar 2011 10:42:35 EST

It's been said that, for companies anyway, "culture is everything." Lou Gerstner, to whom this oft-quoted phrase is attributed, is the CEO who pulled IBM from near ruin in the 1990s -- in part by transforming the Big Blue culture. Culture change may have brought IBM back from the brink, but does it always impact corporate effectiveness? Yes, it does, says Angelo Kinicki, professor of management at the W. P. Carey School of Business. Kinicki says his new study reaffirmed his belief that leaders "need to create a match between culture and corporate strategies."

Retail Sales Offer Glimmer of Hope

KnowWPCarey — Tue, 22 Mar 2011 10:42:35 EST

Listen or read: The state received discouraging words recently about last year's employment numbers and about population growth over the last decade. Retail sales showed a glimmer of hope, however, and unemployment appears to be stabilizing. Economist Dennis Hoffman of the L. William Seidman Research Institute at the W. P. Carey School explained during "The Economic Minute," a monthly feature of the Economic Club of Phoenix lunches.

Current Global Conditions: Inflation and Unemployment

KnowWPCarey — Thu, 17 Mar 2011 10:42:35 EST

In the aftermath of the global financial crisis, the main challenge facing the U.S. and its trading partners was a return to growth. After these economies improved in 2010, the outlook now for the main trading partners of the U.S. is for slower growth in 2011, accompanied by unemployment worries and new inflationary pressures from oil and commodities.

Nobel Laureate on Combating Climate Change: We Don't Need to Wait for that Elusive Top-Down Solution

KnowWPCarey — Wed, 16 Mar 2011 10:42:35 EST

Read or listen: While the world waits for international agreement on solutions to global climate change, the risk of calamity from weather variability and extreme events builds. In fact, we're already experiencing some of those risks. But that ultimate top-down approach, complete with consequences for offenders, is not the only way to go, and is probably not even the most effective. Elinor Ostrom, the 2009 recipient of the Nobel Prize in Economic Sciences, is a research professor at Arizona State University's School of Human Evolution and Social Change, and is the founding director of the Center for the Study of Institutional Diversity. She says there's ample evidence to prove that polycentric, or multi-level, approaches -- even relatively easy fixes that can be implemented by local communities, businesses and individuals -- can begin to address the crises.

Arizona Jobs: The Struggle Continues

KnowWPCarey — Tue, 15 Mar 2011 10:42:35 EST

Annual employment revisions recently issued by the U. S. Bureau of Labor Statistics brought more bad news for the Arizona economy. Preliminary monthly job growth figures had previously indicated improving labor market conditions as the year ended. But the new revisions showed Arizona lost jobs in every month in 2010 (compared to the same month of 2009). That means 2010 marked the third year in a row of job losses, with the construction industry hardest hit with a drop of 17,600, followed by state and local government, which shed 9,900. Lee McPheters, W. P. Carey research economist and director of the JPMorgan Chase Economic Outlook Center, reviews the numbers.

Western States Lead in Foreclosure Rankings

KnowWPCarey — Wed, 09 Mar 2011 10:42:35 EST

"Arizona is stuck in a vicious cycle right now," says Lee McPheters, research professor at the W. P. Carey School of Business and director of the JPMorgan Chase Economic Outlook Center. "Homes come onto the market from foreclosure and that weakens prices. Lower home values put more properties under water, and that negative equity situation often leads to foreclosures." A respected regional forecaster, McPheters edits the Western Blue Chip Economic Forecast, which compiles the forecasts of economists in 12 Western states to generate a consensus forecast for the region.

Use Prediction Markets To Raise Your Marketing Model's Performance

KnowWPCarey — Wed, 09 Mar 2011 10:42:35 EST

Which prospects are most likely to buy what you're selling? Who are your good credit risks? What will your customers buy next? Chances are, your company uses predictive models to answer these and other questions, or soon will. A recent study found that 38 percent of companies were using advanced analytics to create predictive models that can forecast consumer behavior, evaluate consumer credit-worthiness, pinpoint marketing targets and more, while 85 percent said they planned to start using such models by 2012. But sooner or later, most of these companies will experience model decay, in which performance lags and it's time to pick a new model. How can managers judge which new "challenger" model will outperform or, at least, replace the reigning "champion?" Information Systems professors Michael Goul and Sule Balkan think one smart bet would be to try a market approach. Recent research conducted by these scholars found that "prediction markets" proved to be an effective approach to selection of predictive models.

Phoenix Real Estate: Report Shows Foreclosures Increased in February

KnowWPCarey — Wed, 09 Mar 2011 10:42:35 EST

Read or listen: A report on real estate market conditions in Phoenix shows that foreclosures represented 43 percent of total transactions in February. That's a significant increase from the 30 percent of the closing months of 2010, when many banks put a pause on foreclosures as procedures were reviewed. Jay Butler, associate professor of real estate and author of the W. P. Carey School's Realty Studies Report, says that economic uncertainty will continue to bedevil the market, which remains dominated by investors rather than owner occupants. Butler met with Knowledge@W. P. Carey to talk about the data behind the report, and what may be ahead for Phoenix.

Podcast: Grand Challenges Call for a New Polymath

KnowWPCarey — Mon, 07 Mar 2011 10:42:35 EST

"Polymath" is the Greek word for Renaissance man -- one who excels at many things. But if, centuries ago, society needed a Da Vinci or a Franklin, the grand challenges of today call for teams of experts. Author Vinnie Mirchandani in his book by the same name describes "The New Polymath" as an organization that gathers together diverse teams of specialists and multiple strands of technology to resolve not only our daily needs -- for a smart car for example -- but also meet the "Grand Challenges" that face us -- like assuring an ample supply of clean water. He urges that companies as well as individuals begin to think in terms of "And not OR." But why should enterprises expand their aspirations? Mirchandani shows that by embracing the truly big picture, these enterprises are able to identify market opportunities as they are emerging. Mirchandani was the guest of the CABIT research center at the W. P. Carey School of Business recently. Center Director and Information Systems Professor Julie Smith David talked with Mirchandani after his presentation.

Trash Talk: From Waste Disposal to Waste Management

KnowWPCarey — Wed, 23 Feb 2011 10:42:35 EST

Every American throws away 4.3 pounds of trash per day. Multiply that by 307 million people and the total trash per day generated in the U.S. is 1.3 billion pounds. Since the 1960s, the amount of trash generated in the U.S. annually tripled to 250 million tons. Tod C. Holmes is executive vice president and chief financial officer of Republic Services, Inc., which provides non-hazardous solid waste collection services for commercial, industrial, municipal, and residential customers through more than 375 collection companies in 40 states and Puerto Rico. Holmes was the featured speaker at the Economic Club of Phoenix recently, where he told the story of how the industry as a whole and Republic in particular has evolved from waste disposal to waste management.

The Economic Minute: This Recovery Will Be Different

KnowWPCarey — Tue, 22 Feb 2011 10:42:35 EST

Each month at the Economic Club of Phoenix luncheon, a W. P. Carey School of Business expert analyzes economic conditions in Arizona and in the nation. On February 17, Dean Robert Mittelstaedt reminded his audience that this recovery is different. Even though it will be three years before employment returns to pre-recession levels, and even though some indicators of improvement seem to be little more than optical illusions, we are still doing pretty well … all things considered.

Six Straight Quarters of GDP Growth

KnowWPCarey — Wed, 16 Feb 2011 10:42:35 EST

According to the preliminary estimate from the BEA, the overall U.S. economy grew by 2.9 percent in year 2010 compared to the previous year. The 2.9 percent gains for 2010 were the strongest in the past four years. Following the start of the recession in 2007, GDP did not grow at all in 2008 and contracted by 2.6 percent in 2009. However, the 2010 GDP growth estimate is still weaker than the long term annual average growth (3.5 percent) over the period since 1950. Output has increased more slowly due to tight credit markets and other conditions affecting spending by business, consumers and state and local governments.

Current Outlook for the U.S. and Trading Partners

KnowWPCarey — Wed, 16 Feb 2011 10:42:35 EST

The International Monetary Fund (IMF) recently released an update of its World Economic Outlook. The current forecast by the IMF for the U.S. economy calls for real output (Gross Domestic Product or GDP) to increase by 3.0 percent in 2011 and then slip back to 2.7 percent growth in 2012. Both projections are well below the increases the IMF expects for global GDP -- 4.4 percent for 2011 and 4.5 percent for 2012.

Is China's Rise Sustainable?

KnowWPCarey — Wed, 16 Feb 2011 10:42:35 EST

Since 1980 China's economy has grown at an average rate of 9.8 percent a year -- that's compared to 2-3 percent for developed economies like the U.S. Most economists believe that even if China grows at just 8 percent a year (with an annual 3 percent RMB appreciation), its economy will surpass the U.S. by 2020. But although China's growth has been called a "miracle" by many, it is not sustainable, says Buck Pei, associate dean of Asia Programs at the W. P. Carey School of Business. "China's rise to become a global economic power in just three decades has been amazing -- one of the most transformative of our time," Pei said. "But today China faces enormous challenges, and overcoming those challenges will be critical to continued economic growth."

The Fully Engaged Employee: The Strategic Resource You Paid For But Don't Use

KnowWPCarey — Wed, 16 Feb 2011 10:42:35 EST

Why do some companies and organizations perform at a high level year after year, through constantly shifting market conditions, while others are unable to adapt? Gerry Keim, a W. P. Carey management professor and consultant, says the managers at these successful companies value employees who are engaged with their work. They understand that the employees at the front lines know their products, customers and competition best, and are often the first to detect change. Some of the best ideas on how to respond bubble up from the ranks, but companies can't tap this well unless they give employees a voice. Keim says "the arrogance of hierarchy" often prevents leaders from asking for suggestions -- and from listening to them.

The Real Estate Cha-cha: Baby Steps to Recovery

KnowWPCarey — Wed, 09 Feb 2011 10:42:35 EST

January brought an uptick in foreclosures in the still-troubled Phoenix real estate market -- discouraging words after the drop in foreclosure-related activity in the waning months of 2010. But is it a new trend? Jay Butler, associate professor of real estate at the W. P. Carey School of Business, says the increase may be the result of lenders terminating the various moratoriums that were in place last year. With the numbers moving ahead and then back like dancers doing the cha-cha, recovery will come in baby steps, Butler said.

Driven to Love: Business Booms when Passion Meets Possessions

KnowWPCarey — Tue, 08 Feb 2011 10:42:35 EST

Social isolation in the U.S. has been on the rise for decades, according to research conducted in 2006 by sociologists. Yet, that sad news might not be bad news for business, if companies heed insights uncovered by John Lastovicka, a marketing professor at the W. P. Carey School of Business. His investigations indicate that loneliness is one route that leads people to fall in love with possessions, and where there's love, there's money. People who demonstrate what Lastovicka calls material-possession love spend significantly more time and money on the objects of their affections than others in the marketplace.

The Rocky Mountain Poll: Consumer Confidence Up in Arizona

KnowWPCarey — Fri, 04 Feb 2011 10:42:35 EST

The Arizona Department of Revenue reported this week that total taxable retail sales in Arizona were $3.8 billion in November -- up almost 5 percent year-over-year and 13 percent higher than October. Dennis Hoffman, director of the L. William Seidman Research institute at the W. P. Carey School of Business, has been forecasting tax revenues for the governor's Office of Strategic Planning and Budget since 1982. He says that the November sales increase is good news for a state facing the third year in a row of budget shortfalls -- evidence that residents who have held onto their jobs during the recent recession are beginning to spend again. The latest Rocky Mountain Poll, which sampled 700 heads of household statewide in January, shows that consumer confidence in Arizona is at its highest level since May 2008. "This is real evidence that the attitudes of Arizona consumers are improving," Hoffman said. Knowledge@W. P. Carey talked with Earl de Berge at Behavior Research Center about the results from January's survey, and what they hint at for the coming months.

Quantifying the Intangible: Determining the Performance of Knowledge Workers

KnowWPCarey — Wed, 02 Feb 2011 10:42:35 EST

Measuring the performance of workers on an assembly line is simple: Count the objects produced and find out how long the process took. That should reveal the productivity of the factory workers. But how do you determine the performance of knowledge workers? Observing and measuring what they do is an enormous challenge. They often work unscripted and alone. The workers themselves may be unaware of the individual steps they take when carrying out an assignment. Professor Robert St. Louis and Assistant Professor Michael Lee of the W. P. Carey School's Department of Information Systems and Robyn Raschke of the University of Nevada, Las Vegas, are tackling this issue in an unusual study that could hit close to home for the researchers.

December Real Estate Market Softened, but 2011 May Still Be the Transition Year

KnowWPCarey — Wed, 26 Jan 2011 10:42:35 EST

Phoenix Metro home prices continued their decline in December, and are expected to keep dropping for the foreseeable future. "The housing market is softening and that trend is likely to continue for at least the next few months," says Karl Guntermann, professor of finance and real estate who compiles the Arizona State University-Repeat Sales Index (ASU-RSI). Guntermann offered some hope, however, that the market will mimic last year's pattern and eventually begin to tip up.

The Million Jobs Misunderstanding

KnowWPCarey — Thu, 20 Jan 2011 10:42:35 EST

Those looking for good news in the jobs data became more optimistic as the second half of 2010 unfolded. Starting in July, payroll employment figures for each month were up compared to the same month in the year before. And when the December report came out, the difference over the prior 12 months exceeded one million jobs. Who could fault observers from proclaiming that the economy had "added one million jobs in 2010?" But the million new jobs won't show up that way when analysts look back at the year-to-year performance of the economy during the Great Recession. Based on the way annual job changes are computed and reported by the U. S. Bureau of Labor Statistics (BLS) they'll reckon that the economy lost more than one half million jobs last year, a decline (pending revisions) of -0.5 percent.

The Economic Minute: Population Count Lower Than Expected

KnowWPCarey — Tue, 18 Jan 2011 10:42:35 EST

The newly released census reports that Arizona's population was just about 6.4 million as of April 1, 2010 -- a number considerably lower than estimated. In fact, the Census Bureau's own 2009 estimate was 204,000 too high, and the Arizona Department of Commerce overshot reality by 291,000. The fact that there are fewer people living in Arizona than expected has implications for a state that has always depended on population to drive economic growth. Economist Dennis Hoffman, director of the L. William Seidman Research Institute at the W. P. Carey School, pulled the numbers apart at a recent Economic Club of Phoenix luncheon. We'll never know the whole story -- how many left, how many were never here, and how many simply hid from the census takers because of their immigration status. But, Hoffman says, now is the time for Arizona to move away from a strategy of surviving recession to a new strategy for growth -- one that does not rely upon an elastic supply of inexpensive and often undocumented labor.

Phoenix Real Estate: Slower Population Growth May Delay Housing Market Recovery

KnowWPCarey — Fri, 14 Jan 2011 10:42:35 EST

Since 2008, 11 percent of the single-family homes in Maricopa County, Arizona, have been through foreclosure -- 4 percent in the last year alone. And with moratoriums on foreclosures ending, the new year is expected to start with an uptick in the number of property owners losing their homes. Associate Professor Jay Butler, author of the monthly Realty Studies Report, has looked at the preliminary census numbers. They show that actual population growth in the last decade was slower than projected. This raises questions about the amount of time that will be needed for the surplus housing in the Phoenix market to be absorbed. Arizona historically has relied on in-migration and construction to power economic growth. Looking ahead, Butler says that the state faces serious questions about this reliance on population. And he suggests that across the nation as well as in the West, the American Dream itself is up for review.

Shared Values Help Companies Connect with Consumers

KnowWPCarey — Tue, 11 Jan 2011 10:42:35 EST

Online retailers looking to connect with customers and increase sales and profits would be wise to demonstrate values that appeal to those customers, according to researchers in the Department of Information Systems. A pair of experimental studies conducted by Associate Professor Benjamin Shao and Professor Robert St. Louis found that consumers respond very differently to the values a company projects. Subjects in experiments were more likely to buy a product -- and to pay more for it -- if the seller's values were aligned with those of the buyer.

Your Own Personalized Shopper

KnowWPCarey — Thu, 06 Jan 2011 10:42:35 EST

While shopping online for a computer a few years ago, Fred Riggins noted that three Compaq models offered the FireWire feature he wanted. The three were priced on a low, medium and high range, corresponding to which processor they used. While Riggins might have bought a more expensive model if that's all he saw, he nevertheless bought a cheaper one because it was staring right at him on the screen. For Riggins, an information systems professor who's been teaching courses on e-commerce since 1996, the experience got him questioning the effectiveness of product display and pricing online. In his working paper, "Using Personalization Technology to Reduce Product Cannibalization," Riggins looks at how online stores can segment and sell to high- and low-end customers without cannibalizing their best sales.

Not a Lost Generation, but a 'Disappointed' One: The Job Market's Impact on Millennials

KnowWPCarey — Thu, 06 Jan 2011 10:42:35 EST

Members of Generation Y -- a group of approximately 70 million young people between the ages of 15 and 30 -- are starting their careers in perhaps the worst job market since the Great Depression. Experts say the experience creates both immediate and long-term negative impacts, including lower salaries now and in the future. And while their reduced spending power is not expected to have a lasting drag on the U.S. economy, it does have significant repercussions for how these young people conduct their adult lives and careers.

Cleaning Up After a Tornado: Real Estate in 2010

KnowWPCarey — Wed, 05 Jan 2011 10:42:35 EST

Once the envy of most of the nation, Arizona's real estate industry has become a cautionary tale, and the new story of recovery is one of fits and starts. Knowledge@W. P. Carey consulted experts at the W. P. Carey School and elsewhere to take a long look at the 2010 market in Arizona and the nation. Like the rest of the country, Arizona is experiencing another period of declining prices, and the state is still a front runner for foreclosures. And similar to other states, Arizona is burdened with excess supply in both residential and commercial properties. The last months of 2010 showed signs of slow job growth, but not yet enough to generate the energy needed to pivot the real estate industry for a fast rebound.

Getting Excited About Work: How Managers Can Build Employee Engagement (Part Two)

KnowWPCarey — Wed, 05 Jan 2011 10:42:35 EST

Employee engagement is a set of behaviors that contribute to business success. But although it is intangible, employee engagement is not serendipitous: managers can create and nurture a culture that fosters engagement in employees. In Part Two of our series on employee engagement, management Professor Angelo Kinicki draws from his research and consulting to map some steps that managers can take to engage their employees. After listening, please use our comment feature to ask questions or to share your successes or challenges in building employee engagement.

Getting Excited About Work: How Managers Can Build Employee Engagement (Part One)

KnowWPCarey — Wed, 05 Jan 2011 10:42:35 EST

Employee engagement -- the powerful phenomenon that can propel companies to new levels of profitability -- is never more important than in times of economic stress. But can you define it? And do you know how to make it happen in your business? Angelo Kinicki, the Weatherup/Overby Chair in Leadership in the W. P. Carey School's Department of Management, has been researching employee engagement and has taken his ideas into practice through consulting. Knowledge@W. P. Carey spent some time with Kinicki recently to learn what he and other researchers have to say about the nature of employee engagement. In Part One Kinicki offers a comprehensive definition.

Craig Weatherup: What's Your Leadership Model?

KnowWPCarey — Wed, 05 Jan 2011 10:42:35 EST

Retired CEO Craig Weatherup was addressing a group of finance undergraduates at the W. P. Carey School recently when he popped a question. "How many of you would profess to have a model or a definition of how you want to grow as a leader?" he asked. Three or four hands went up. "I think everybody should raise their hand on that question, and I'll tell you why," he said. Weatherup himself has a model for leadership: a simple yet comprehensive set of attitudes and behaviors that have shaped him in his personal life and as the leader of people and organizations -- often through periods of dramatic change.

Slow GDP Growth: Par for the Course in Recent Recoveries

KnowWPCarey — Wed, 15 Dec 2010 10:42:35 EST

The Great Recession ended in the second quarter of 2009, according to the National Bureau of Economic Research. Nonetheless, public perception of the health of the economy remains gloomy many months later. Unemployment is persistently high, job growth is sluggish, and home prices in some areas have not yet bottomed out. But one key indicator, the nation’s real output, as measured by Gross Domestic Product, has increased for five consecutive quarters. Although the average quarterly increase (2.9 percent) since the recession ended is on a par with the past two recoveries, the problem is that the gains in output have not been sufficient this time to make a dent in unemployment or restore consumer confidence.

As Avnet Celebrates 50 Years on NYSE, CEO Roy Vallee Talks About Employee Engagement

KnowWPCarey — Wed, 15 Dec 2010 10:42:35 EST

Avnet, Inc., a Phoenix-based global technology distributor, marks its 50th anniversary as a public company on the New York Stock Exchange today. To celebrate, CEO Roy Vallee will ring the closing bell. Vallee was a featured speaker at the 21^st Annual Compete Through Service Symposium presented by the W. P. Carey School's Center for Services Leadership. After the speech, Knowledge@W. P. Carey talked with Vallee about the Avnet story, and one of the key ingredients to the company's success: employee engagement. In our next issue we'll bring you a two-part podcast with leadership expert and management professor Angelo Kinicki on the topic of employee engagement. Today, let's hear Vallee explain how Avnet cultivates engagement among its employees.

Fasten Your Seatbelt for Another Decline, But 2011 Should End Better Than It Begins

KnowWPCarey — Wed, 15 Dec 2010 10:42:35 EST

Housing prices in the Phoenix-metro area are likely to continue dropping for the next several months, says Karl Guntermann, professor of finance and real estate who compiles the Arizona State University-Repeat Sales Index (ASU-RSI). His assessment comes in the latest report, which showed that prices dropped again in November -- and at a quickening rate of 7 percent. But, "with the economy gradually recovering and the foreclosure problem past its peak, the odds are good that the housing market will end 2011 a lot better than it will be beginning it."

European Debt Crisis Puts Pressure on the Continent's Currency

KnowWPCarey — Wed, 15 Dec 2010 10:42:35 EST

For more than a year, the European Union has been in crisis over the huge debts faced by its weakest economies. Cutbacks in social programs and benefits have stirred unrest in those countries, as well as in better-off nations in the Eurozone. The specter of sovereign default looms across the continent. The way out of Europe's volatile debt crisis is likely to involve painful belt-tightening, increased emergency aid, and eventually a restructuring of debt in the most troubled countries, according to finance experts at the W. P. Carey School of Business.

Season or Trend? Phoenix Real Estate Market Slows

KnowWPCarey — Fri, 10 Dec 2010 10:42:35 EST

It's not unusual for the real estate market to slide into the doldrums in the fall and winter, but the Phoenix market was all but becalmed in November. According to the monthly Realty Studies Report from the W. P. Carey School of Business, total recorded sales came in at 6,845 last month -- the lowest level of activity since January 2009. And foreclosure activity fell to 2,095 recordings, or 30 percent of the total market -- the lowest since April 2009. Is this a new trend or primarily a factor of the season? Associate Professor of Real Estate Jay Butler, who compiles the report, says the complexity of the situation makes it difficult to say what this downturn portends.

National Economic Forecast: The End of 2011 Will Be Strong, But Beyond 2012? Depends Who You Ask

KnowWPCarey — Wed, 01 Dec 2010 10:42:35 EST

Economists like to talk about the shape of the economic recovery. Ideally, it would have been V-shaped: a rapid, dramatic upswing following the recession. Several months into the recovery, which technically began in June 2009, economists were predicting a still-not-shabby U-shape. All held out hope that it wouldn't be an L-shaped recovery. At the 47th Annual Economic Forecast Luncheon, co-sponsored by the economics department at the W. P. Carey School of Business and JPMorgan Chase, two prominent national economists shared their thoughts about the shape of things to come -- in 2011 and beyond.

Arizona's Economy: Recovery at a Glacial Pace

KnowWPCarey — Wed, 01 Dec 2010 10:42:35 EST

Arizona's economic recovery will continue to move at a glacial speed in 2011 -- but at least it's moving. The coming new year will see an increase in job creation, a rise in population and even a modest increase in single-family home permits. But the consensus among economists at today's 47th Annual Economic Forecast Luncheon, co-sponsored by the Department of Economics at Arizona State University's W. P. Carey School of Business and JPMorgan Chase, is that Arizona's recovery will continue to be far less robust than economic rebounds of the past.

ASU-RSI: Battered Phoenix Housing Market Enters the Winter Doldrums

KnowWPCarey — Wed, 01 Dec 2010 10:42:35 EST

At first glance, the drop in year-over-year Phoenix housing prices recorded in the October Arizona State University-Repeat Sales Index (ASU-RSI) could appear to be unmitigated bad news: this means prices compared to a year ago dropped for the third consecutive month. In fact, the rate of decline accelerated slightly to 6 percent. However, as ASU-RSI author and real estate Professor Karl Guntermann points out, October marked the beginning of what is typically the slowest time of the year for sales. And other economic factors may help to mitigate the drop going into 2011.

U.S. Economy Grew 2.5 Percent in Q3

KnowWPCarey — Wed, 24 Nov 2010 10:42:35 EST

Gross Domestic Product (GDP), the measure of the nation's output of goods and services, grew by 2.5 percent in the third quarter of the year, according to recently revised figures from the U.S. Bureau of Economic Analysis. The latest revision (released November 23) was improved over the 2.0 percent rise reported in the earlier initial estimate. Analysts looking for good news emphasized that a "double dip downturn" in GDP is nowhere in sight. However, even the most optimistic observers don't regard a 2.5 percent GDP increase as a signal that the economy is shifting into a higher gear.

Will Increasingly Optimistic Younger Shoppers Buoy Holiday Sales ... and the Economy?

KnowWPCarey — Wed, 24 Nov 2010 10:42:35 EST

After the turkey trimmings are stowed in the fridge, some 138 million shoppers are expected to hit the mall on Friday -- up 4 million from last year. With sluggish recovery across the economy, the 2010 holiday shopping season may go down as one of the most closely-watched in recent years, according to economist Dennis Hoffman, director of the Seidman Research Institute at the W. P. Carey School of Business. The big question is how much will shoppers spend? Evidence from the quarterly Arizona Consumer Confidence Poll conducted by the Behavior Research Center in Phoenix suggests that they just might open their wallets wider than last year.

The Economic Minute: Waiting for Consumers to Find Their Smiles

KnowWPCarey — Tue, 23 Nov 2010 10:42:35 EST

The drop in taxable retail spending over the past two years in Arizona has been dramatic -- even for a historic slump. Dennis Hoffman, director of the Seidman Research Institute at the W. P. Carey School who has provided revenue forecasts for Arizona's governors for more than 20 years, says one clue to the drop lies in the housing market. Dr. Hoffman was speaking at the November 18 Economic Club of Phoenix luncheon.

Podcast: LG Executive Thomas Linton's Story of Globalization and Culture

KnowWPCarey — Fri, 19 Nov 2010 10:42:35 EST

Thomas K. Linton is the executive vice president and chief procurement officer for LG Electronics, based in Seoul, South Korea. Linton addressed the monthly luncheon meeting of the Economic Club of Phoenix on November 18. Drawing on 23 years living and working in Asia, Linton talked about working inside an Asian company -- a story about globalization and culture.

ASU-RSI: Continuing Weakness in Phoenix Real Estate Market

KnowWPCarey — Fri, 19 Nov 2010 10:42:35 EST

Price declines hit the Phoenix resale market for a second month in a row in September, with the drop accelerating to 4 percent, according to the latest ASU-Repeat Sales Report (ASU-RSI), released this week by the W. P. Carey School of Business. Report author, real estate Professor Karl Gunterman, said that the volatility in the market makes it difficult to be sure just yet, but another month of accelerated decline could mean that a new downward trend is developing.

Phoenix Real Estate: After a Poor October, All Eyes on Holiday Shoppers

KnowWPCarey — Mon, 15 Nov 2010 10:42:35 EST

The slumping Phoenix real estate market reached an ironic point in October where it was both "boring" and scary at the same time, according to Associate Professor of Real Estate Jay Butler, author of the W. P. Carey School's monthly resale home market report. By now, Butler said, market watchers had expected a change in direction for the distressed market. Instead October brought another set of poor numbers. In a recent conversation, Knowledge@W. P. Carey asked him to describe that market.

2010 Hall of Fame: Executives Honored for Lifetime Achievements

KnowWPCarey — Wed, 03 Nov 2010 10:42:35 EST

Each homecoming for 33 years the W. P. Carey School of Business has honored alumni who have made outstanding contributions to the community and their chosen field. This year's inductees into the Homecoming Hall of Fame include Edward Blechschmidt, a consultant and former chief executive officer of Novelis, Inc. Martin M. Quintana, chief operating officer of Chicanos Por La Causa, Inc., and Michael Ahearn, executive chairman of First Solar, Inc. Knowledge@W. P. Carey caught up with two of the honorees at the Hall of Fame gala, held at the Arizona Biltmore Hotel on October 29.

States Struggle To Get Back To Prior Peak Employment

KnowWPCarey — Wed, 03 Nov 2010 10:42:35 EST

The advance report on third quarter economic growth (released October 29) was not really bad news. After all, Gross Domestic Product (GDP) was up by 2.0 percent, not on the decline as it would be in a double-dip recession. The problem is that the current pace of output expansion is too weak to stimulate enough job growth to reduce unemployment, put Americans back to work, and blow away some of the clouds hanging over the economy.

SaaS: New Efficiencies for Businesses; New Role for the IT Pro

KnowWPCarey — Wed, 03 Nov 2010 10:42:35 EST

Software as a Service is reshaping corporate computing and eventually will become the means by which many small and medium-sized companies acquire and use most of their applications, say Information Systems Professors Julie Smith David and Michael Lee. And in time, it is likely that even bigger firms will get much of their software via online subscriptions. Many of the objections to SaaS are larger than life, the researchers say. But for IT professionals, these services will mean relinquishing their traditional role as software gatekeepers and assuming a new role as facilitators and enablers.

The Economic Minute: Robert Mittelstaedt Looks at the Sector-Driven Recovery

KnowWPCarey — Fri, 29 Oct 2010 10:42:35 EST

The Economic Club of Phoenix opened its new season October 28, 2010. "The Economic Minute" is a monthly thumbnail update that is a regular feature at Economic Club luncheons. This month, W. P. Carey Dean Robert Mittelstaedt talked about the dynamics of the sector-driven recovery. We joined his audience as he was commenting on the indicators that are used to gauge the strength of the economy.

Brad Casper: Managing Strategy, Structure, Innovation and Culture in Multi-National Companies

KnowWPCarey — Fri, 29 Oct 2010 10:42:35 EST

Until very recently, Brad Casper was the president and CEO of The Dial Corporation, a part of Henkel AG & Co. In that role he oversaw business operations of some of America’s most trusted consumer products, including Dial® soaps and body washes, Purex® laundry detergents, Renuzit® air fresheners, and Right Guard® antiperspirant/deodorants. Dial was the latest post in a career spent in packaged consumer products, managing major brands in fabric care, hair care and laundry and cleaning products. A resident of Arizona, Casper is a member of Greater Phoenix Leadership (GPL), serves on the Board of Trustees of the Global Institute of Sustainability (GIOS) at ASU and the board of the Greater Phoenix Economic Council (GPEC), where he co-chairs the International Leadership Council. On October 28 he addressed the Economic Club of Phoenix at their season opening lunch, where he talked about the multinational corporation. For companies that operate across national boundaries, the issues surrounding strategy, structure, innovation and culture are complex.

Top Forecaster Predicts Partly Cloudy Economy with a Chance of Showers

KnowWPCarey — Fri, 22 Oct 2010 10:42:35 EST

With the most accurate economic forecast among Blue Chip survey participants for the years 2006, 2007, 2008, and 2009, Dr. Sherry Cooper of BMO Financial Group is the winner of the 2010 Lawrence R. Klein Award for Blue Chip Forecast Accuracy. Overall, Cooper is cautiously optimistic about the country's prospects for 2011, based on the strength of U.S. dollar assets, a predicted gradual increase in consumer confidence and residential housing starts, and strength in both corporate profits and the U.S. stock market.

Where Will the Economy Be in Five Years?

KnowWPCarey — Tue, 19 Oct 2010 10:42:35 EST

As the fourth quarter begins, most economy-watchers have lost any hope that 2010 will be a year of strong growth. Instead, analysts now are expecting that it may be several years before output expands at a consistent pace that is vigorous enough to make a sizeable dent in unemployment rates. Economic forecasting is fraught with difficulties even one or two years ahead, so it is no surprise that there are varied perspectives on where the economy will be in the longer term, four or five years from now. This article compares longer term forecasts from three sources: Blue Chip Economic Indicators, the Office of Management and Budget and the Congressional Budget Office.

Podcast: Foreclosure Processing Issues Increase Uncertainty in Phoenix Market

KnowWPCarey — Wed, 13 Oct 2010 10:42:35 EST

In his latest Realty Studies Report, Jay Butler, associate professor of real estate at the W. P. Carey School, finds that 46 percent of the home transactions recorded in Phoenix in September were foreclosures -- the highest percentage level of foreclosure activity since March. If you take into consideration the previously-foreclosed properties that changed hands in September, foreclosure-related activity actually represented 67 percent of the market. Several large banks, including Bank of America, JPMorgan Chase & Co. and Wells Fargo & Co. have temporarily halted foreclosures due to questions about documentation. The problem first came to light in the 23 states where foreclosure is a judicial, and therefore public, process. Knowledge asked Butler what the implications are for Arizona, which is one of 27 states where foreclosure is not a judicial process.

Social Media: The Wild, Wild West of New Technology

KnowWPCarey — Wed, 13 Oct 2010 10:42:35 EST

Leigh Dow, director of the Toolbox for IT at Toolbox.com, addressed the new developments in social media at a recent Showcase Series event sponsored by the Center for Advancing Business Through Information Technology (CABIT) at the W. P. Carey School's Department of Information Systems. Dow started her career in politics, then went to work at Intel where she became excited about innovation environments and technology. From there she went back to school for an MBA in technology management. After graduating she joined Honeywell Aerospace in various marketing positions, eventually bridging into e-commerce and customer relations management. After the speech, CABIT Director and Professor Julie Smith David talked to Dow about what's happening in the fast-expanding world of social media. We asked if Dow is seeing an uptick in awareness of social media within the Toolbox for IT community, and if those community members are actively looking for ways to use these tools for business value.

Bridging the Gap: How Internal Audit and IT Can Work Together To Improve Information Security

KnowWPCarey — Wed, 13 Oct 2010 10:42:35 EST

In many organizations, the internal audit and information security functions can't seem to get on the same communication wavelength. For companies interested in improving their information security infrastructure, however, this is a disconnect that must be fixed, according to information systems Professor Paul Steinbart. In a keynote address at a recent International Conference on Accounting and Information Technology meeting, Steinbart told his audience that preventative information security is almost always more effective than corrective or detective information security. And, he says, internal audit can play a hugely valuable role in the creation of an effective preventative IT strategy.

Commercial Real Estate: Crawling Toward Recovery

KnowWPCarey — Thu, 07 Oct 2010 10:42:35 EST

Commercial real estate matters because it's a proxy for a city's economic health. When an economy grows, companies expand into new offices, warehouses and storefronts. Vacancy rates fall, property prices rise, and developers launch new projects. But when an economy shrinks or stagnates, all of those factors reverse, leaving a city with the half-finished office parks and "see-through" shopping centers that now plague greater Phoenix. W. P. Carey Real Estate Professor Karl Guntermann has made two additions to the ASU-Repeat Sales Index (ASU-RSI). The new commercial indices look at other business factors and how they have affected the real estate market over the past 20 years. And in the latest Greater Phoenix Blue Chip Economic Forecast, co-editor and consultant Elliott Pollack discusses the consensus forecast for Phoenix real estate.

Personal Income Returns to Positive Growth

KnowWPCarey — Tue, 05 Oct 2010 10:42:35 EST

Personal Income decreased in practically every state in the nation in 2009. For most states, such outright declines in personal income had not been seen since state income records began. Personal income fell nationally as well, for the first time in six decades. But so far in 2010, personal income has returned to positive growth. Through the first half of the year, U.S. personal income is up by 2.2 percent over the same period last year. While positive growth is welcome, the increase is small, and personal income gains remain uneven from state to state.

Podcast: Privacy by Design

KnowWPCarey — Wed, 22 Sep 2010 10:42:35 EST

Associate Professor Marilyn Prosch heads up the "Privacy by Design Research Initiative" at the W. P. Carey School's Department of Information Systems. Prosch served on a task force of the American Institute of CPAs and the Canadian Institute of Chartered Accountants, which developed a set of metrics called the Generally Accepted Privacy Principles, or GAPP. Here at the W. P. Carey School of Business, Prosch and her colleagues are looking at privacy from a different perspective from other institutions.

Pursuit of Whose Happiness? Transformational Leaders and Personal Values

KnowWPCarey — Wed, 22 Sep 2010 10:42:35 EST

What does it take to be an effective leader of a corporation? What must a chief executive officer do to energize employees and inspire them to go beyond what is normally expected? How does a CEO motivate employees to truly commit to a company? Management experts have identified a concept known as transformational leadership as one important factor in motivating employees. Transformational leaders have a vision for their organizations and they express that vision passionately to their followers. They encourage their followers to forego self-interest for the sake of the larger group, whether it is a work team or the entire company. But a study of corporate leaders in China found that transformational leadership may not be enough if a key ingredient is missing: a CEO who holds the right internal values.

Podcast: Sustainable Upswing in Phoenix Still Just Out of Reach

KnowWPCarey — Mon, 20 Sep 2010 10:42:35 EST

The latest realty studies report for the Phoenix resale home market showed that the typical fall downturn began as expected in August. The 8,790 sales recorded were a decline from the 10,860 recorded at the peak in March, but this August was slow even compared to August 2009. Setting aside the seasonal factor, however, the dynamics of the market continue to remain the same, and that's not especially good news. Most important, foreclosure activity remained a high percentage of total sales. At 45 percent, foreclosures as a percentage of total transactions were at their highest since March. Added up, the hoped-for sustainable upswing in the real estate market appears to be just out of reach for another month. We asked Jay Butler, associate professor of real estate at the W. P. Carey School and author of the monthly Realty Studies report, what's next for this beleaguered market.

The Economic Minute: Arizona's Five C's

KnowWPCarey — Thu, 16 Sep 2010 10:42:35 EST

If you grew up in Arizona you probably remember learning about the five C's, an easy way of remembering the major components of the state's economy at the time. At a recent Economic Club of Phoenix luncheon, W. P. Carey research economist Lee McPheters quizzed the group about the five C's. How well would you do? Pause your player if you need time to think. The exercise will teach you some things you may not have known about Arizona's economy, back in the day and today.

U.S. Economic Outlook: Self-Fulfilling Forecasts?

KnowWPCarey — Thu, 16 Sep 2010 10:42:35 EST

As the saying goes, "If you ask 20 economists about the economic outlook, you'll get 21 scenarios for what lies ahead." The point is that economists famously disagree. But the slowing pace of recovery seems to have convinced a strong majority of analysts that conditions are going to be worse in the next couple of quarters, and the main arguments now center on just how bad the economy might get before it gets better. When this gloomy perspective gets repeated and amplified in the media, there are some who worry that consumer and business confidence could be so strongly affected that fears of a double dip downturn could actually become reality.

Jobs Up in 33 States over Last Year

KnowWPCarey — Thu, 16 Sep 2010 10:42:35 EST

Although we have not yet seen sustained employment growth at the national level, labor markets in more and more states are showing improvement over the same period last year. This spreading state-by-state job creation is one overlooked indicator that casts somewhat of a brighter glow over the current economy. As of July, 33 states reported higher nonfarm employment than in the dismal days of 2009. But year-over-year U.S. employment fell yet again in July. With over half the states adding jobs now, why isn't the national employment picture more positive?

China's Economy Now Second Only To U.S.: What Does the Future Hold?

KnowWPCarey — Wed, 01 Sep 2010 10:42:35 EST

On August 16 the Japanese Cabinet Office announced that Japan's second-quarter GDP was for the first time smaller than China's. A media frenzy ensued, and analysis firms raced to predict when China would surpass the U.S. China's newfound status as the world's second-largest economy might not portend its imminent grab of the No. 1 slot, but it does prove -- lest anyone still doubted -- that China is an incredibly important player on the world economic scene. A new website, FutureofUSChinaTrade.com, fosters discussions about the future of the U.S./China relationship. A joint venture between Arizona State University and the Kearny Alliance, the site offers a guided discussion framework, which in its first phase asks participants to consider three different scenarios of the future of trade between the two countries.

Bonus Points: Setting Targets for CFO Compensation in Times of Crisis

KnowWPCarey — Wed, 01 Sep 2010 10:42:35 EST

The recession has caused all sorts of difficulties for CFOs: falling earnings, tumbling stock prices and, occasionally, knotty negotiations with lenders. For most of them, it has also brought tougher targets for earning their bonuses. Many companies, as part of their CFO bonus plans, adopted earnings targets of zero or just above zero during the recession, according to a study by Michal Matejka, an accounting professor at the W. P. Carey School of Business. Thus a CFO would have received no bonus if his firm reported a loss. An earnings target of zero sounds easy enough. But in a recession it can be difficult to achieve even that. So what is the best way for companies to provide incentives to their financial officers?

ASU-RSI: Phoenix Residential Real Estate Market Is Flat ... and Will Be for the Coming Year

KnowWPCarey — Thu, 26 Aug 2010 10:42:35 EST

Home prices in Phoenix have been on a welcome upswing for several months, but preliminary data for July shows no change from last July, according the W. P. Carey School's Karl Guntermann, who calculates the ASU-Repeat Sales Index (ASU-RSI). Prices are likely to remain flat for the next year unless market conditions change significantly. Other real estate watchers are warning that markets are about to dip, but Guntermann does not think the market is starting to slide again. The methodology that results in the ASU-RSI, he explains, produces a more accurate -- and this time, more optimistic -- picture.

Predictive Modeling: New Techniques Will Make It Faster and DEEPER

KnowWPCarey — Tue, 17 Aug 2010 10:42:35 EST

Before a bank offers you a mortgage re-fi, or a credit card company dangles a low interest rate before your eyes, some information-systems worker has probably pegged you as a promising prospect. He most likely used predictive modeling to do it, and it wasn't a quick, easy task. But predictive modeling, the computer-supported process of forecasting things like customer behavior or creditworthiness, soon will be more efficient, because modeling software tools are beginning to be linked with the company databases where customer information resides. This development, along a new methodology developed by two Department of Information Systems professors, will allow companies to make marketing and other business processes even more effective.

U.S. Economy Lost Steam in Q2, Slower Growth Looms

KnowWPCarey — Mon, 16 Aug 2010 10:42:35 EST

When the first quarter ended, many analysts projected the subsequent months would bring even stronger gains in Gross Domestic Product. But the high hopes of economy watchers for acceleration in growth were dashed by reality when the U.S. Bureau of Economic Analysis released the revised second quarter report on GDP (August 27). The earlier advance report for the second quarter estimated the increase at 2.4 percent, but this was revised sharply downward to 1.6 percent growth in the latest release. Compared to the first quarter growth figure of 3.7 percent (seasonally adjusted and annualized), the economy in the second quarter slowed to less than one-half the pace of a few months ago.

How Small Businesses Can Survive and Thrive in a Recession -- Part Two

KnowWPCarey — Wed, 11 Aug 2010 10:42:35 EST

Some small firms have weathered the economic storm by cutting expenses and reducing staff. But others have continued forward by focusing on what they do best: exemplary customer service, employee excellence and innovation. They tweaked their business plans to react to the new economic realities. They diversified their product lines. In short, they plumbed the depths of their entrepreneurial spirit. Ten such companies in the Phoenix area have been named Spirit of Enterprise Awards finalists by the W. P. Carey School of Business. In Part Two of a continuing series on small business success, the 10 Spirit finalists were asked what they've done to succeed in the face of extreme adversity.

Podcast: Real Estate Markets -- 20 Percent of Mortgages Under Water Nationally

KnowWPCarey — Wed, 11 Aug 2010 10:42:35 EST

High foreclosure rates and negative equity continue to haunt real estate markets across the nation. In fact, a new report states that about 20 percent of mortgages nationally are under water. Jay Butler, associate professor of real estate at the W. P. Carey School and author of the monthly Realty Studies report, says that July delivered more of the same -- a bumpy ride along the bottom -- for the Phoenix market. Arizona has been a focal point for the real estate collapse, but with soggy conditions across the country, is that still true?

Electronic Medical Records: A Surprising Short-Term Prognosis for Cost Savings

KnowWPCarey — Fri, 06 Aug 2010 10:42:35 EST

It is a widely accepted assumption in the healthcare and information technology industries that electronic medical records in hospitals help reduce costs and enhance the quality of patient care. But new research on the subject by information systems professors Michael Furukawa, Raghu Santanam and Benjamin Shao contradicts that conventional IT wisdom, and that has surprised and disappointed many in the healthcare and IT fields. But the researchers stress that the problems they discovered are short-term.

Job Growth Improves in Twenty States

KnowWPCarey — Mon, 02 Aug 2010 10:42:35 EST

More state labor markets are pulling out of the economic slump created by the recession. As recently as March of this year, only two states (North Dakota and Alaska) were adding nonfarm jobs year-over-year. By May, the number of states posting year-to-year growth had improved to an even dozen. Now, based on June nonfarm employment figures from the U. S. Bureau of Labor Statistics, jobs in the past 12 months are up in an expanded total of 20 states. These gains don't mean that job creation is on the verge of a boom, but the percentage decrease of 0.05 percent for the nation was the smallest recorded in two years of monthly year-over-year job losses.

Making Services a Science: New Study Finds Great Interest -- and Great Confusion

KnowWPCarey — Wed, 21 Jul 2010 10:42:35 EST

Companies like IBM, PetSmart and Marriott have been proving that enormous success, and enormous profits, can be found in services. Yet services have always been difficult to get your arms around -- difficult to understand. The Center for Services Leadership recently engaged upon a project that will help move services in the direction of a science. Earlier this year, the CSL surveyed more than 300 business executives and academics about the state of the services landscape. The survey results confirmed what CSL researchers had suspected -- that while there is enormous new interest in services, there remains great confusion, and tremendous opportunities, around how services should be designed and implemented. The study also identified 10 specific priority areas in which business executives and academics were most interested in finding real answers.

ASU-RSI: Phoenix Home Prices Expected to Flatten (Your Sector May Vary)

KnowWPCarey — Wed, 21 Jul 2010 10:42:35 EST

The small increases in Phoenix housing prices that began this spring will likely continue for only a month or two longer, then flatten out for "an extended period," said Karl Guntermann, a professor of real estate who calculates the ASU-Repeat Sales Index (ASU-RSI) at the W. P. Carey School of Business. The overall index currently shows the Phoenix metro housing market slowly improving, but several segments are still slumping, and the upward trend is not expected to last.

Temporary Employment: This Bellwether Bears Watching

KnowWPCarey — Thu, 15 Jul 2010 10:42:35 EST

Optimism about the strength of the recovery took another hit when the June employment numbers were released recently. Economy-watchers had expected at least modest growth, but seasonally adjusted nonfarm employment fell by 125,000 jobs from May. However, there was good news elsewhere in the labor reports, as private sector temporary employment increased in June for the ninth consecutive month. The temporary help services industry continues to be the largest contributor of new private jobs in the current economy.

Podcast: Phoenix Housing Market Remains on Shaky Ground

KnowWPCarey — Thu, 15 Jul 2010 10:42:35 EST

Although the number of Valley home resales for June has improved over May, there's no doubt the market remains on shaky ground. In his latest Realty Studies Resale Home Report, associate professor of finance Jay Butler says that although current interest rates and home prices are very attractive, a number of factors are keeping the home resale market anemic.

How Small Businesses Can Survive and Thrive in a Recession -- Part One

KnowWPCarey — Wed, 30 Jun 2010 10:42:35 EST

Recessions are especially hard on small businesses. Few small firms have the resources to stay the course and wait out the bad times. Credit is scarce, and budget cutting difficult. In a small operation, there are not that many places to cut. But there are things small businesses can do to improve their odds of success, according to the W. P. Carey School's experts in management, marketing, and entrepreneurship. In Part One of a contnuing Knowledge@W. P. Carey series, experts describe how small firms can successfully navigate a recession and sometimes emerge from the bad times stronger than before.

Leadership Analytics: The New 'Lean'

KnowWPCarey — Thu, 24 Jun 2010 10:42:35 EST

Are great leaders born, or can we learn the behaviors of good leadership? In this podcast, which originally appeared in knowIT, Associate Professor Pierre Balthazard explains how he has applied information technology to the biosciences to identify the neuro-pathways that result in leadership behaviors. He has spent the last five years developing a norm of leadership -- a database that records the brain patterns of high performers. Eventually he hopes to develop exercises that would utilize the brain's plasticity to remap those neuro-pathways in people who want to improve their leadership capability.

U.S. Macro Outlook: Watch for Second Half Headwinds

KnowWPCarey — Thu, 17 Jun 2010 10:42:35 EST

As the calendar approaches the mid-year mark, the economy through the first half appears on track to exceed earlier expectations, thanks to increased spending by consumers and the willingness of businesses to build inventories and invest in new equipment and software. But headwinds are on the horizon, including the end of the stimulus program, stubbornly weak housing markets, and persistently high unemployment.

ASU-RSI: Big Picture a Little Brighter, But Shadows Persist

KnowWPCarey — Wed, 16 Jun 2010 10:42:35 EST

Big picture, the Phoenix housing market showed gradual improvement overall through May, but zooming in on the various segments the picture changes, as some are still declining while others are improving -- but only slowly. As a result, homeowners hoping that the market is going to perk up quickly are in for more disappointment. "Based on index values from last year and current conditions in the housing market, it is likely that small increases in house prices will continue for only a few months, followed by an extended period of relatively flat prices," according to Karl Guntermann, professor of real estate and author of the ASU-Repeat Sales Index (ASU-RSI).

Health Care Reform: Experts Ponder the Impacts

KnowWPCarey — Wed, 09 Jun 2010 10:42:35 EST

For government and business, providers and patients, the U.S. health reform legislation promises a new world of costs and care. Most individuals without insurance will be able to get it. Those who have insurance already will probably have to pay more for it. Hospitals, doctors, and others in the front lines of health care will begin to change long established ways of doing business. State governments and many businesses will face new costs and possibly some benefits. But beyond these generalizations, little is certain about what health care reform will mean in Arizona and across the country. Experts at the School of Health Management and Policy at Arizona State University's W. P. Carey School of Business examine the impact of the legislation on hospitals, doctors, businesses, states and insurers. This story was prepared in partnership with Arizona Business Magazine.

Podcast: High Foreclosure Rate and Unemployment Make Housing Recovery Hard to Read

KnowWPCarey — Wed, 09 Jun 2010 10:42:35 EST

The Phoenix resale market slowed a bit in May when compared to April, possibly because activity spiked last month as the federal first-time home buyer program came to a close, according to Jay Butler, associate professor of real estate and author of the monthly Realty Studies Report from the W. P. Carey School of Business. And though foreclosures as a percentage of the market are continuing to decline, the actual number of foreclosures is still quite high, he said. Even hopeful signs, like the recent increases in median price, are connected to foreclosures -- in this case because foreclosures on high price homes pulled the median up. So where will Phoenix be in the fall? Hard to say, according to Butler, because we've never been here before.

Management Has Key Role in Dispelling Threats of Workplace Violence

KnowWPCarey — Wed, 02 Jun 2010 10:42:35 EST

Last month the world was rocked by the news of a series of workplace suicides at Foxconn Technology in Shenzhen, China. Although the tragedy is especially troubling because of the number of deaths, it is not the only incident of workplace violence -- self-directed or not -- across the globe in the last couple years. Managers struggle to understand how the workplace could become the setting for tragedy and violence. For them, the husband-wife team of Drs. David and Ella Van Fleet chose the metaphor of a volcano for a book about the dark side of human interactions in the workplace. "The Violence Volcano: Reducing the Threat of Workplace Violence," is a study of the agents and processes leading to workplace violence, and offers real-world managers a set of tools to recognize and avoid the worst scenarios.

ASU-RSI Up: Phoenix Housing Market Appears To Be Stabilizing

KnowWPCarey — Tue, 01 Jun 2010 10:42:35 EST

The Phoenix housing market appears to be stabilizing as preliminary data for April shows a 1 percent year-over-year price increase for the first time in almost three years, according to the ASU-RSI (Repeat Sales Index). Karl Guntermann, the W. P. Carey professor of real estate who prepares the ASU-RSI, said "while increases in house prices are occurring only in certain portions of the market, steady improvement continues in the rest of the market with the exception of the townhouse/condo segment." The increase in prices occurred in the lower cost and foreclosure segments.

Western Jobs Still Worsening, but Worsening More Slowly

KnowWPCarey — Tue, 01 Jun 2010 10:42:35 EST

With four months of figures for 2010 now available, analysts are beginning to grow (slightly) more optimistic about the employment picture for the nation and the Western states this year. The bad news is that non-farm employment is lower now than last year in practically every state and for the nation as a whole. But those who are looking for something to cheer about can find it in the year-over-year percentage changes in recent months.

Fourth Annual Arizona Economic Confidence Quiz

KnowWPCarey — Wed, 19 May 2010 10:42:35 EST

How confident are you that you understand background facts on economic issues? For the fourth year running, members of the Economic Club of Phoenix were quizzed on their grasp of economic fundamentals at their final luncheon of the season, on May 18. Take the test yourself -- some of the answers may surprise you!

Is Arizona's Recession Over? How Will We Know?

KnowWPCarey — Wed, 19 May 2010 10:42:35 EST

Arizona employment bottomed out at the end of 2009, after a loss of nearly 300,000 jobs from the peak during 2007. But have we seen the end of the recession? Maybe not, if we are going to evaluate this current cycle in a longer term context, based on annual data. Even if employment in 2010 grows in every month, it may not increase enough to yield an annual average level greater than last year. If so, 2010 will be the third consecutive year of job losses for the state, and analysts looking back at Arizona's economic performance will categorize 2010 as a recession year, when the economy contracted compared to the year before.

Consumer Spending is Back, Thanks to Services

KnowWPCarey — Wed, 19 May 2010 10:42:35 EST

Economic indicators have been improving, albeit slowly, since the summer of 2009, confirming that the economy is on the mend. However, most observers likely would agree that full recovery -- a return to pre-recession activity levels -- won't happen anytime soon. But one key component of the economy -- consumer spending -- has made a full recovery and is now at an all-time record high.

Message for New Business Leaders: Profit and Personal Gain Alone are Insufficient Measures of Succes

KnowWPCarey — Wed, 19 May 2010 10:42:35 EST

Recently a senior executive at a large financial services firm struggled to answer whether the client's interests come first, reported Dean Robert Mittelstaedt of the W. P. Carey School of Business at Arizona State University in his remarks at the convocation on May 13, 2010. What has happened to respect for customers, commitment to organizational purpose and advancement, making the right decision even if it does not maximize short term profit, he asked. The global trend away from a focus on excellence and organizational success to a focus on personal success is "dangerous and destructive," he said. He challenged the graduates to measure success by the progress made in society and their organizations. Make that your ultimate goal and personal success will follow, he said. "Your leadership will differentiate you, your ethics will save you, and continuous learning will make you successful."

Will the U.S. Stay Globally Competitive? It Depends

KnowWPCarey — Wed, 19 May 2010 10:42:35 EST

Jim Owens, chairman and chief executive officer of Caterpillar Inc., is "concerned that the U.S. is not on a path to sustain the global economic competitiveness our country has sustained for a long time." Speaking at the Economic Club of Phoenix, Owens talked about the kinds of policies that the U.S. needs in place in order to stay a "great country." Some current U.S. policies, he said, put the country at risk of declining.

Podcast: Median Price Not Full Story For Phoenix Market

KnowWPCarey — Wed, 12 May 2010 10:42:35 EST

The median price for resale homes in the Phoenix area has been edging up for several months. Does this signal that the market is approaching normalcy? Jay Butler, associate professor of real estate and author of the Realty Studies report from the W. P. Carey School of Business, talks about the factors affecting median price, including the still high number of foreclosure-related sales. It's tempting to declare a market up-tilt based only on median price, he says, but because of that foreclosure activity, Phoenix is still far from a normal market.

Step-by-Step: There's a Process Behind Smart Process Improvement

KnowWPCarey — Mon, 10 May 2010 10:42:35 EST

There's little margin for error when you're in the business of selling electrons. After all, if an electron traveled around the world instead of bouncing around the nucleus of an atom, it would circle the earth some 8.3 times in one second. Since there's no time to react, electricity providers must do all they can to prevent system failures. In such efforts, Arizona Public Service (APS) has developed award-winning innovations. During 2008, the utility earned the Edison Electric Institute's Edison Award -- the highest industry recognition an electric utility can earn -- for one such breakthrough; contributing to that development were top-tier process-improvement methods and a dedicated team that teaches other utility departments how to get business-process management (BPM) rolling.

ASU-RSI Now Covers All Segments of Phoenix Market: Residential Finally Up

KnowWPCarey — Wed, 28 Apr 2010 10:42:35 EST

For the first time in three years, the ASU-RSI (Repeat Sales Index) is showing an increase in residential prices: preliminary data for March show that year-over-year, prices for homes in the lower-price and foreclosure segments in Phoenix turned positive. Meantime, a pair of new indices is showing that the commercial market is continuing to decline and improvement will lag behind even after other parts of the economy turn up.

Roll Out the Red Carpet: A Culture of Service Excellence

KnowWPCarey — Wed, 28 Apr 2010 10:42:35 EST

"There is no arrival at customer service excellence," said Terry Cain, vice president of operational excellence at Avnet, Inc. "It's a never-ending process." Companies in maturing industries have found that offering customers services is the competitive edge that counteracts declining margins, slower growth, and fundamental challenges to yesterday's value propositions. Delivering exceptional customer service is for many firms the first step toward developing a services business.

Financial Crisis Got You Down? Nobel Laureate Tells China to Buy Chinese

KnowWPCarey — Fri, 23 Apr 2010 10:42:35 EST

Roger Myerson, a Nobel Laureate in Economics from the University of Chicago, told an audience of Chinese business executives and government officials recently that their country might do better if it liquidated some of its American investments. Spend the money to buy "more goods and services in [China] rather than saving for the future in dollars," he advised. Myerson, who was a speaker at a recent executive forum in Shanghai hosted by the W. P. Carey School of Business, considers attempts to solve the current financial crisis with fiscal measures misguided.

Economic Outlook: The Recession Will Be Over When We Stop Losing Jobs

KnowWPCarey — Fri, 23 Apr 2010 10:42:35 EST

We've heard since the middle of last year that the recession is over. Why, then, do people still seem so pessimistic? Why are consumers still so restrained? Why is the housing market still weak? These questions were addressed by two Arizona State University economists at the Annual Economic Outlook Luncheon sponsored by the Economic Club of Phoenix.

Don't Count Consumers Out in Recovery

KnowWPCarey — Fri, 23 Apr 2010 10:42:35 EST

Those who were not expecting consumers to play much of a role in the recovery have been pleasantly surprised by recent bullish reports from the stores and malls. Retail sales have increased every month this year, and headline writers have brought back the "surge" word to describe the 1.6 percent gains in March, the largest since last November. Meanwhile, personal spending has gone up in nine out of the last 10 months, as the savings rate has retreated below 4 percent.

Arizona's Budget Crisis: How Did We Get Here and Where Are We Going?

KnowWPCarey — Fri, 23 Apr 2010 10:42:35 EST

Everyone knows that Arizona has been mired in a budget crisis -- worse, even, than in many other states -- for three years now. But last summer, the Governor's office and the Legislature announced that the budget (for fiscal year 2010) was finally balanced. However, that budget was based on revenues remaining the same in 2010 as in 2009. As it turns out, revenues fell an additional 11 percent this year, said John Arnold, director of the Governor's Office of Strategic Planning and Budgeting. At the same, expenditures have continued to increase, Arnold explained to a group of business leaders at the Annual Economic Outlook Luncheon, sponsored by the Economic Club of Phoenix.

Economic Club of Phoenix Presents Annual Economic Forecast Luncheon

KnowWPCarey — Thu, 22 Apr 2010 10:42:35 EST

Economic experts take a look at what's ahead for the nation and the state of Arizona at the annual Economic Outlook Luncheon sponsored by the Economic Club of Phoenix. This year John Arnold, Director of the Governor's Office of Strategic Planning and Budgeting, Dennis Hoffman, Director of the L. William Seidman Research Institute and Dr. Lee McPheters, Research Professor, JPMorgan Chase Economic Outlook Center, tell us what we can expect from the state and national economies in the next few years, and examine the particular revenue and budget challenges facing Arizona.

Phoenix Real Estate: In Uncharted Territory

KnowWPCarey — Fri, 09 Apr 2010 10:42:35 EST

The resale season starts in March with an upswing in real estate transactions, but last month's numbers were much higher than might be expected if this were a "normal" year. Jay Butler, associate professor of real estate at the W. P. Carey School, complies the monthly Realty Studies report for the Phoenix metro area. He notes that a promising trend toward fewer foreclosures appears to have shifted. The difficulty in projecting what will happen next is that we've never been in this place before. Here's what he has to say about those March numbers.

After Economic Meltdown: Recovery and Lessons Learned

KnowWPCarey — Wed, 07 Apr 2010 10:42:35 EST

Recovery from the worst economic crisis since the Great Depression remains incomplete, but most experts concur that the worst is behind us. Now economists, policy makers and analysts alike are asking, how did we get here? How did financial institutions, regulatory agencies and laws fail to prevent the catastrophic crash that cost the world trillions in wealth? What lessons have been learned, and have the past failings been rectified? These were some of the issues discussed at "The Currency of Trade," a conference in Beijing hosted by Arizona State University, the Kearny Alliance and Tsinghua University.

Price Isn't Everything in the Transparent World of Online Commerce

KnowWPCarey — Wed, 07 Apr 2010 10:42:35 EST

In the Web's early days, self-styled seers proclaimed that the ironclad law of online commerce would be survival of the cheapest. Consumers could compare products with a few clicks of a mouse, these folks said, and thus they'd all soon migrate to the places where they paid the least. It hasn't worked out that way. Plenty of sites have made good businesses out of offering great deals, but lots of higher-priced sellers remain. What has happened, says Rob Kauffman, a professor of information systems at the W. P. Carey School of Business, is that pricing transparency has become just one part, though a critical one, of companies' online strategies.

Executive of the Year: Alan Mullaly, Ford Motor Company

KnowWPCarey — Tue, 06 Apr 2010 10:42:35 EST

Alan Mulally, president and chief executive officer of Ford Motor Company, was honored recently as Executive of the Year by the Dean's Council of 100, a group of prominent business executives who advise the W. P. Carey School of Business. In presenting the award, W. P. Carey School Dean Robert Mittelstaedt noted Mulally's exceptional leadership in turning Ford around without requesting government bailout money. Here is Mulally's speech and the question period that followed.

Update: Jobs and Incomes Fell in the Western States in 2009

KnowWPCarey — Thu, 01 Apr 2010 10:42:35 EST

Final revised state figures for 2009 have just become available for two key indicators: nonfarm employment (from the U.S. Bureau of Labor Statistics) and personal income (from the U.S. Bureau of Economic Analysis). To the surprise of practically nobody, the Western states were not represented among the growth leaders. The nation as a whole recorded declines on both indicators for the year; the 4.3 percent drop in employment was the worst one-year decrease since the Great Depression.

The New Currency Deal: Alternatives to the Dollar

KnowWPCarey — Thu, 01 Apr 2010 10:42:35 EST

The American dollar is the major currency for commerce around the globe. By some estimates, the dollar is used in nearly half of all world trade, and has long played a vital role in domestic economies from Africa to the former USSR. In a wide range of countries like Cambodia, East Timor, Ecuador and Panama, the dollar is either the official or default currency. Amidst the current economic crisis, many are retreating from the dollar to gold and other currencies. Far from reason to worry, economists at the "The Currency of Trade" conference convened in Beijing recently said that the dominance of the dollar is a relatively recent occurrence. What will replace it is still to be determined.

Can the World Spend Its Way Out of Recession?

KnowWPCarey — Thu, 25 Mar 2010 10:42:35 EST

In the aftermath of recession, experts and international agencies such as the International Monetary Fund (IMF) often advise this strategy: countries are told to hold tight on currency flows as part of a painful set of austerity measures, let exchange rates drop, then boost exports and productivity as a long-term solution. Can the world shop its way out of recession this time? In the past, American consumers shopping like there's no tomorrow have come to the world's rescue, but in fact American overspending and risky lending were key factors precipitating the current economic meltdown. Experts discussed this issue recently in Beijing, at "The Currency of Trade," a forum hosted by Arizona State University, the Kearny Alliance and Tsinghua University.

ASU-RSI: A Late Spring For Real Estate Prices?

KnowWPCarey — Thu, 25 Mar 2010 10:42:35 EST

According to the latest ASU-Repeat Sales Index (ASU-RSI), overall house prices declined by 13 percent in December compared to December 2008, an improvement over the 17 percent year over year decline seen in November and the 20 percent decline in October. Karl Guntermann, a professor of real estate at the W. P. Carey School of Business and author of the index, reported that preliminary estimates for January and February show declines in single digits: 9 and 7 percent respectively. If the trend continues, residential real estate prices will finally level off later this spring, ending a dive that has lasted twice as long as the last real estate slump, in the early 1990s.

No 'Great Recovery' from the Great Recession

KnowWPCarey — Tue, 23 Mar 2010 10:42:35 EST

In 2009, inflation-adjusted output (Gross Domestic Product) fell by -2.4 percent. This was the largest one-year decrease in GDP since the Great Depression, causing economists to dub this contraction as the Great Recession. Since 1948, the average growth in real output following a year of decline in GDP is 5.6 percent. But it seems unlikely there will be a corresponding Great Recovery following the Great Recession of 2008-2009.

China's Controlled Currency

KnowWPCarey — Tue, 23 Mar 2010 10:42:35 EST

Is the Chinese currency undervalued? If so, by how much, and how does this impact global trade? "That's a profound question," said one expert at "The Currency of Trade," a forum convened recently in Beijing, hosted by Arizona State University, the Kearny Alliance and Tsinghua University. China maintains strong growth, but economies around the globe are still struggling up from the international financial crisis. With the U.S. as one of the major participants in the financial crisis of 2008-2009 many question how long China will keep its policy of minimal currency adjustments (currently at the rate of about 6.8 yuan to US$1).

Reducing Healthcare Costs through Supply Chain Management

KnowWPCarey — Wed, 17 Mar 2010 10:42:35 EST

In the national debate over how to make U.S. healthcare more efficient, one promising area for reform is often overlooked: supplies. Whether the products are knee implants, pacemakers, or expensive medications, hospitals have long purchased whatever doctors desired with little discussion among the parties involved about cost. Researchers at the W. P. Carey School Business are trying to unravel the tangled supply relationships that drive up the cost of healthcare, burdening hospitals and frustrating efforts to expand coverage among the uninsured.

Podcast: 'Strategic' Defaults in the Recovering Real Estate Market

KnowWPCarey — Wed, 17 Mar 2010 10:42:35 EST

The Phoenix resale home market rebounded slightly in February, according to the Realty Studies Report from the W. P. Carey School of Business. Compared to January, the number of transactions increased and prices were up a bit. Still, foreclosures accounted for 42 percent of the total market, and the sale of previously foreclosed properties made up 40 percent of the traditional sale segment. Meantime, market watchers are wondering what will happen when the many Adjustable Rate Mortgages (ARMs) reset this year and next. We asked Jay Butler, associate professor of real estate and author of the report, what he thinks about that, and what else he noticed in the February data.

Evidence from Recession: The Real Reason Companies Hold Cash

KnowWPCarey — Mon, 15 Mar 2010 10:42:35 EST

Finance scholars have long urged corporate managers to hold less cash and assume more debt. Too much cash, the argument went, could make executives lax, encouraging imprudent acquisitions and spendthrift expansions. Debt, in contrast, brought discipline: you don't do dumb deals when you know you have to make regular interest payments. Rather than stockpiling cash, these thinkers argued, companies ought to be paying dividends. But research by W. P. Carey finance Professor Thomas Bates and co-authors suggests that managers -- prudently -- have not listened.

Podcast: Warnings for 'Restrained' Eaters

KnowWPCarey — Fri, 12 Mar 2010 10:42:35 EST

One-third of U.S. adults are obese, and another third are overweight, according to data recently published in the Journal of the American Medical Association. Marketing scholars Naomi Mandel, Andrea Morales and Steve Nowlis have been investigating what influences our decisions about diet. Knowledge@W. P. Carey spoke with Professor Morales recently about two of her studies. One investigated those tempting 100-calorie snack packs, and the other looked at whether your dining companions have any effect on your food selections. The results may surprise you.

Board Bias: Setting Acquisition Premiums

KnowWPCarey — Thu, 11 Mar 2010 10:42:35 EST

To be a fly on the wall in the board rooms of corporate America would be worth a mint. To understand the social psychology behind boards' strategic decisions would be priceless. David H. Zhu has done that. Zhu, an assistant professor of management at the W. P. Carey School of Business, studied one important aspect of corporate decision-making: how boards price acquisitions. Acquisition premiums -- paying more to acquire a company than its pre-acquisition stock price -- are typical; the average is 38 percent. But Zhu found that group discussions lead boards to approve more extreme acquisition premiums than the average prior premium experienced by directors.

Wrestling with the Bullwhip Effect

KnowWPCarey — Wed, 10 Mar 2010 10:42:35 EST

The 2007-2009 recession brought about shifting consumer demand that left wholesalers and manufacturers grappling with how best to change inventory and production strategies. These changing demand patterns wreak havoc up and down the supply chain, challenging manufacturers, wholesalers and retailers to match supply with demand. The challenge is greatest for manufacturers and wholesalers, however, because they are furthest away from the customer and therefore are often the slowest to react to changing demand signals -- a phenomenon known as the bullwhip effect.

Podcast: The Future of Shopping Centers

KnowWPCarey — Thu, 04 Mar 2010 10:42:35 EST

In the U.S. and around the world, the recession is forcing shopping center developers and retailers to re-think the design of the places where we spend our money. Some say the very nature of shopping has changed. Recently the International Council of Shopping Centers held a meeting of its North America Research Advisory Task Force in Phoenix. Mark Stapp, director of the W. P. Carey School's Master of Real Estate Development program caught up with Michael Niemira, ICSC's director of research, after the meeting. Listen as Stapp poses the key question.

Scattered Signs of Life in Western Housing Markets

KnowWPCarey — Mon, 01 Mar 2010 10:42:35 EST

Western analysts scanning the economic horizon for signs of a housing rebound in the region, finding little evidence of recovery in 2009, are now setting their sights on 2010. Since last year was so bad, the consensus is that 2010 can only be better. And indeed the recently released January housing permit figures from the U.S. Census Bureau are higher -- much higher -- for the Western states than a year ago. But one month's worth of preliminary data is not reason for celebration when so much uncertainty hangs over the economy.

Rocky Mountain Poll: For Consumer Confidence, All Economics Is Local

KnowWPCarey — Wed, 24 Feb 2010 10:42:35 EST

Behavior Research Center, a marketing and public opinion research firm based in Phoenix, has been measuring consumer confidence in Arizona via its Rocky Mountain Poll for 30 years. Recently, says Research Director Earl de Berge, the firm added several questions to the poll designed to uncover consumer confidence today compared to 15 years ago. The results show that half the number of families plan to make major purchases today as did back then. Further, it appears that a consumer's perceptions about his own job and the health of the company he works for contribute more to those decisions than news about national and international economic trends. To paraphrase former U.S. House Speaker Tip O'Neill's famous quote, all economics is local. Here's Earl de Berge talking about these results, and what political leaders need to know about the impact on buyers of their revenue and budgeting debates.

ASU-RSI: End of the Slide is in Sight

KnowWPCarey — Wed, 24 Feb 2010 10:42:35 EST

The latest ASU-Repeat Sales Index suggests that the end of the slide for the beleaguered Phoenix metro real estate market may be in sight, but how close it looks depends on how you parse the numbers. Overall, house prices slipped 17 percent in November -- the last month for which complete data is available -- but the year-over-year decline in November for lower-priced homes was 23 percent, compared to 15 percent for expensive properties. Lower-priced homes have been dropping at a faster rate than the higher-priced homes, but the preliminary estimate for January is a swap: the low end of the market appears to have fallen 8 percent, compared to a 10 percent drop at the high end. Across the metro area, prices in many cities should turn around later this spring, but for others the upswing won't occur until much later in the year.

Analysis: Economic Policy and the Future of Finance

KnowWPCarey — Wed, 17 Feb 2010 10:42:35 EST

While the world's economy has been ailing for almost two years, signs are beginning to point to recovery. Here members of the W. P. Carey School's finance faculty write about what's ahead in their fields of expertise, how the rules might be changed and what needs to be done to restore the world's economy to a healthy outlook.

GDP Surged in Q4 2009, But Look for Weaker Gains Ahead

KnowWPCarey — Tue, 16 Feb 2010 10:42:35 EST

Analysts were pleased with the February 26 revision showing that inflation-adjusted Gross Domestic Product had increased at an annualized rate of 5.9 percent in fourth quarter of 2009. This is the largest quarter-to-quarter jump since 2003, and the second consecutive gain after a rise of 2.2 percent in Q3. But most observers doubt that GDP will increase in the current quarter by nearly as much, says Lee McPheters, editor of Economy@W. P. Carey. The latest W. P. Carey forecast calls for GDP growth to slow to 3.0 percent in Q1 of 2010. Nonetheless, the GDP figures signal a rebound in output is underway.

Podcast: Foreclosures, Economic Conditions Set the Clock for Real Estate Recovery

KnowWPCarey — Fri, 12 Feb 2010 10:42:35 EST

Foreclosures have traditionally accounted for only a small fraction of the real estate transactions in the Phoenix area market, but in January, as in past months, foreclosures were the whole story. Almost half of the existing-home transactions -- 45 percent -- were foreclosures. And, if you include the resale of foreclosed-on properties, a total of 67 percent can be attributed to foreclosures. Jay Butler, associate professor of real estate, compiles the W. Carey School's monthly Realty Studies report. He talked with us about how economic conditions, including the revenue crisis facing the cities and the state, affect our neighborhoods and our real estate values.

What Is the Cost per Stimulus Job?

KnowWPCarey — Wed, 03 Feb 2010 10:42:35 EST

As the nation continues to endure troubled labor markets and high unemployment, critics of the American Recovery and Reinvestment Act (ARRA) have become more vociferous. Economists and the administration have estimated that perhaps 1.5 million jobs have been created or saved by the stimulus program so far. Critics have divided $787 billion by 1.5 million jobs to derive a disturbingly high estimate of about $525,000 per job. But this approach fails to recognize that so far, only about one-third of the stimulus funds have been expended. According to the Recovery.Gov website, $269 billion in funds had been paid as of January 22, 2010. Dividing $269 billion by 1.5 million gives a very rough estimate of the cost per job of $179,000.

ASU-RSI: Drop in Prices in the Foreclosed Homes Market Begins to Slow

KnowWPCarey — Wed, 27 Jan 2010 10:42:35 EST

The market for foreclosed homes in the Phoenix metro area appears to be approaching a turn around, according to a new index from the Center for Real Estate Theory and Practice at the W. P. Carey School. The median price of foreclosed homes dropped 15 percent in October; but the drop is expected to be 8 percent in November and 2 percent in December. In contrast, prices of homes that have not been in foreclosure dropped 19 percent in October, and are expected to drop 23 percent in December. Prices on non-foreclosed homes have been dropping at about 20 percent per month, year over year, since October 2008. The two segments are responding to different market forces, real estate Professor Karl Guntermann explained.

Podcast: Your Call is (not that) Important to Us

KnowWPCarey — Tue, 26 Jan 2010 10:42:35 EST

"Please hold -- your call is important to us." If you've ever heard that sentence then you know what it's like to be "on hold" for customer service. Journalist and author Emily Yellin found herself suspended in customer service no-man's-land when she tried to get her home warranty company to honor their commitments. The experience propelled her to explore the inner workings of the customer service industry, and to write a book about it entitled "Your Call Is (not that) Important to Us." Yellin was a featured speaker at the 20th Annual Compete Through Service Symposium, hosted by the Center for Services Leadership at the W. P. Carey School of Business. She talked with us about the state of customer service today, and how companies might improve. Symposium podcast coverage was sponsored by IBM.

The Economic Minute: Is Arizona's Recovery Underway?

KnowWPCarey — Thu, 21 Jan 2010 10:42:35 EST

Is recovery from recession underway? In this month's Economic Minute, Dean Robert Mittelstaedt of the W. P. Carey School of Business takes a look at the Arizona economy. With historically poor employment numbers, a scarcity of good jobs, consumers in debt-reduction mode and state finances in crisis, the real question is how does Arizona regain momentum. Follow the PowerPoint slides for a snapshot of current conditions. The Economic Minute is a regular feature of the W. P. Carey School's monthly Economic Club of Phoenix lunches.

Podcast: Former Mayo Clinic CEO Talks About Reform and the Healthcare Delivery System in the U.S.

KnowWPCarey — Thu, 21 Jan 2010 10:42:35 EST

Dr. Denis A. Cortese recently retired from the Mayo Clinic, where he was president and CEO, and now leads the W. P. Carey School’s Health Care Delivery and Policy Program. This program is focused on facilitating and promoting a sustainable U.S. health care system. On January 19, Cortese addressed a luncheon meeting of business leaders at the Economic Club of Phoenix. Based at the W. P. Carey School of Business, the Economic Club of Phoenix is the only group of its kind in the nation that is aligned with a top research university.

U.S. Macro Outlook: Q3 Turnaround Confirmed

KnowWPCarey — Fri, 15 Jan 2010 10:42:35 EST

Economy-watchers have marked their calendars for Friday, January 29. That's when the U.S. Bureau of Economic Analysis (BEA) releases Q4 figures for Gross Domestic Product (GDP), along with the first estimate for GDP growth for the year 2009. The updated W. P. Carey macro forecast expects that inflation-adjusted GDP grew by 4.0 percent in the fourth quarter and declined for the year by 2.5 percent. If the forecast is realized, the Q4 real growth will be the strongest recorded since Q1 of 2006, when the economy expanded by 5.4 percent (quarterly change at an annualized rate).

Thomas Davenport: Overcoming Decision Deficit Disorder

KnowWPCarey — Fri, 15 Jan 2010 10:42:35 EST

Thomas Davenport, a professor of Information Technology and Management at Babson College and author of "Competing on Analytics: The Science of Winning," says his research shows that real-life organizations, like Dilbert's company, often don't use good decision processes. Speaking at the Center for Advancing Business through IT (CABIT) Showcase Series, Davenport said that "decision deficit disorder" leads to train wrecks in organizations. But how does an organization get from making decisions badly to making decisions well? To answer that question, Davenport interviewed leaders at 57 organizations and asked how they made decisions. Based on that research, he created a four-step system for making decisions better.

Analysis: Is the Glass Half Full or Half Empty?

KnowWPCarey — Fri, 15 Jan 2010 10:42:35 EST

Looking at the responses from the Greater Phoenix Blue Chip Forecast panelists this quarter, consultant and Greater Phoenix co-editor Elliott D. Pollack asks: "Is the glass half full or half empty?" If the glass is half empty, he says, there will be no quick recovery. If the glass is half full -- at least in the residential market (single-family permits) -- it is moving in the right direction. "One would have to be seeing the world through rose colored glasses, however, to be feeling good about the results," he adds. The Greater Phoenix Blue Chip Forecast presents a quarterly real estate and economic forecast for the Phoenix metropolitan area.

Podcast: Transition Year Ahead For Phoenix Real Estate Market

KnowWPCarey — Wed, 13 Jan 2010 10:42:35 EST

2009 was a record year for real estate transactions in the Phoenix metro market. In fact there were 2,000 more transactions last year than in the previous record-setting year, which was 2005. As it happens, the two years are book ends around a historic run up of real estate prices and the subsequent crash. Dr. Jay Q. Butler, associate professor of real estate at the W. P. Carey School of Business, has been tracking real estate in Phoenix for decades. Recently he talked with Knowledge@W. P. Carey about the record year behind us, and the transitional year ahead.

States Face Personal Income Declines in 2009

KnowWPCarey — Thu, 07 Jan 2010 10:42:35 EST

While expectations are growing for a better year in 2010, analysts are still sifting through the economic ashes of 2009 as figures become available. Personal income in 2009 probably declined nationally. Moreover, it is increasingly apparent that for many states (and most Western states), 2009 will go into the books with the worst performance on this indicator since records began four decades ago.

Costs, Benefits, and a Roadmap for Cap and Trade

KnowWPCarey — Thu, 07 Jan 2010 10:42:35 EST

Climate change -- and what to do about it -- has been center stage recently. The international agreement that came out of the United Nations climate change conference in Copenhagen, the proposed federal Waxman-Markey cap-and-trade bill and the proposed regional Western Climate Initiative make it clear: momentum is building for policies that limit greenhouse gas (GHG) emissions. But what will be the economic effect of those limits? What are the quantitative benefits of reducing GHG emissions? Policymakers and business leaders recently met to answer this and other questions at a forum co-sponsored by the Arizona Investment Council and Arizona Businesses Advancing Sustainability.

The Market for Lemons: How Information Contributes to Efficiency

KnowWPCarey — Tue, 05 Jan 2010 10:42:35 EST

Consider all of the many ways in which information contributes to the functioning of the economy. Investors need it to assess the quality of the issuers of stocks and bonds. Employers want it to evaluate potential employees. Consumers seek it to help them pick reliable products and trustworthy service providers. Colleges use it to pick the best applicants. A lack of solid information can undercut a market's efficiency. Some financial experts, including W. P. Carey economics professor William Boyes say that's at least part of what happened in the years leading up to the financial crisis.

Western States Led in Population Growth in 2009

KnowWPCarey — Mon, 04 Jan 2010 10:42:35 EST

Three Western states were the nation's fastest growing in 2009, according to new population estimates from the U.S. Census Bureau. The total number of residents in Wyoming, Utah and Texas increased by 2 percent or more, a pace double that of the U.S. as a whole. Other rapidly growing Western states were Colorado, Washington and Arizona. With the exception of Alaska, the remaining top 10 fast-growth states were from the South.

Podcast: James Champy Talks About Outsmarting Your Competition

KnowWPCarey — Mon, 21 Dec 2009 10:42:35 EST

James Champy is the author of "Outsmart! How to Do What Your Competitors Can't." Champy profiles eight highly-successful firms as he develops his thesis that the key to outsmarting the competition is to focus on the external environment -- including the customers. Be ready to respond when opportunities appear. Sometimes that means changing your business model, or, as he says, "starting with a new sheet of paper." Knowledge@W. P. Carey caught up with Champy at a conference sponsored by the Center for Services Leadership. Champy talked about the distinguishing characteristics of the companies he writes about, including the quality of their ambitions, their culture of innovation and the level of engagement at all levels. Podcast coverage of the "Compete Through Service" symposium is sponsored by IBM.

U.S. Macro Outlook: 2009 Q4 Might Surprise

KnowWPCarey — Mon, 21 Dec 2009 10:42:35 EST

As expected, the third quarter rise in real Gross Domestic Product (GDP) was revised downward by the U.S Bureau of Economic Analysis, from 3.5 percent growth to 2.8 percent in late November. And it is likely that the next look (on December 22) will bring yet another downward revision. But forward looking analysts point out that these revisions of history are less important than activity going on right now in the current quarter, and Q4 2009 is likely to bring some positive surprises.

Bending the Health Care Cost Curve with Accountable, Patient-Centered, Coordinated Care

KnowWPCarey — Mon, 21 Dec 2009 10:42:35 EST

A comprehensive discussion of health care reform would include three issues, according to Stephen Shortell, dean of the School of Public Health at the University of California-Berkeley. Access to health care is certainly one issue, and the health reform bill as it's being proposed would address it. Affordability and sustainability -- not of health insurance but of health care itself -- are important issues too. But, they "get relatively short shrift in the current legislation" according to Shortell, who spoke at the 3rd Annual Health Economics and Policy Lecture, hosted by the School of Health Management and Policy at the W. P. Carey School of Business.

ASU-RSI: Artificial Market Hard to Predict

KnowWPCarey — Thu, 17 Dec 2009 10:42:35 EST

The Phoenix real estate market began to turn around in 2009, but the improvement was driven by foreclosures and by investors drawn to the resulting low prices, according to the latest ASU Repeat Sales Index (ASU-RSI) report. "While some measure of price stability is returning, Phoenix remains an artificial market because of the large number of foreclosures and the significant presence of investors," writes real estate Professor Karl Guntermann, who compiles the ASU-RSI with the assistance of research associate Adam Nowak.

Podcast: New Year Expected to Bring Fresh Round of Foreclosures

KnowWPCarey — Fri, 11 Dec 2009 10:42:35 EST

Real estate experts are watching for signs that the Phoenix market is returning to normal. Activity slowed a bit in November -- a hopeful sign because it is consistent with seasonal norms. But the market is still feverish. November's activity may be down from October, but it's still up considerably compared to a year ago, and 61 percent of the transactions were related to foreclosures. We asked real estate professor Jay Q. Butler, who prepares ASU's monthly Realty Studies Report, to talk about the dynamics he observed in November.

Welcome to the Future: Smart Services Improve Quality, Lower Cost, Foster Innovation, and Help the E

KnowWPCarey — Mon, 07 Dec 2009 10:42:35 EST

At the 20th Annual Compete Through Service Symposium, hosted by the Center for Services Leadership at the W. P. Carey School of Business, business leaders from all industries gathered to discuss (in part) how technology can help companies differentiate themselves in the market. In one panel discussion, four business leaders at the cutting edge of the services evolution demonstrated how technology-enabled or technology-delivered services -- often referred to as "smart" services -- can help an organization improve its customer service, reduce its cost to service, make more money through new innovations, and even reduce its environmental impact in the process.

Avnet's Roy Vallee on Leadership

KnowWPCarey — Wed, 02 Dec 2009 10:42:35 EST

Thirty-seven years ago Roy Vallee was stocking shelves at a small electronics distribution company in Los Angeles. That small firm has grown up to become Avnet, Inc., a Fortune 500 firm located in Phoenix, Arizona. Avnet is one of the largest distributors of electronic parts, enterprise computing and storage products, and embedded subsystems in the world. And Roy Vallee is the CEO and chairman of the board. One morning recently, marketing professor Anthony Peloso sat down with Mr. Vallee to talk about Avnet, his leadership style, and how to motivate employees -- even in a far-flung global operation. Professor Peloso leads the Marketing Professional Sales and Relationship Management Initiative, which fosters strong relationships between students who are headed for careers in sales, marketing faculty members and corporate partners. The goal is to build professional sales capabilities and advance the profile and status of the sales function. And now let's hear what Mr. Vallee has to say about one the toughest jobs of leadership: motivating employees.

James Spohrer: How Systems Interact to Deliver Services

KnowWPCarey — Wed, 02 Dec 2009 10:42:35 EST

By the time you reach your office every day you have already tapped into numbers of service systems. The electric grid that powers your alarm clock, lights and coffee pot, the pipes that deliver water for your shower and the transportation network for your commute are all service systems -- networks of systems actually. Service science is an emerging discipline aimed at understanding how these systems interact to co-create value. The IBM Service Science Initiative has led the way in promoting research in this area. Dr. James C. Spohrer is director of service research and innovation champion at IBM's Almaden Research Center. He was a featured speaker at the Compete Through Service Symposium, presented by the Center for Services Leadership at Arizona State University. In a telephone interview recently, Dr. Spohrer talked about the nature of service systems and the research that is expanding their potential to improve the way we live. Podcast coverage of the Compete Through Service Symposium is sponsored by IBM.

National Forecast 2010: Wall Street Will Do Well; Main Street Will Struggle

KnowWPCarey — Wed, 02 Dec 2009 10:42:35 EST

Anthony Chan is a cautious optimist. He is optimistic that the equity markets will continue to improve in 2010. But he's cautious, too -- because the same level of improvement won't be felt on Main Street. Chan, chief economist for private wealth management at JPMorgan Chase, gave his outlook for 2010 at the 46th Annual Economic Forecast Luncheon, co-sponsored by the economics department at the W. P. Carey School of Business and JPMorgan Chase.

Clearing the Wreckage of the 'Great Recession' Will Take Years

KnowWPCarey — Wed, 02 Dec 2009 10:42:35 EST

The 'Great Recession' may be over, but like a hurricane that has battered a coastal city, the wreckage left behind will take years to fix. "Although 2010 could be described as a 'recovery year,' most indicators will be weak for Arizona and the Valley," said Lee McPheters, director of the JPMorgan Chase Economic Outlook Center at the W. P. Carey School of Business and editor of Economy@W. P. Carey. "Although Arizona and the Valley are reeling from the recession, the fundamentals of a strong economy are still present. The state is attractive to new residents and entrepreneurs, and by 2015 we will most likely be among the top five strongest economies in the country. Getting from here to there will be painful in the next couple of years." McPheters and economist Elliott Pollack delivered the regional outlook at the 46th Annual Economic Forecast Luncheon on December 2.

Personal Income: Not So Great in the Great Recession

KnowWPCarey — Mon, 30 Nov 2009 10:42:35 EST

Although job losses and unemployment have captured public attention during the current recession, another key indicator of state economic performance -- personal income -- is the weakest since modern records have been kept. First half figures are now available on state personal income, and the news is sobering: 48 of the 50 states recorded decreases compared to the first half of last year. Without a significant surge in the factors that make up personal income -- wages, dividends and interest, proprietor profits, and transfer payments such as pensions -- it appears that many states, and the nation as a whole, could see annual personal income contract for 2009.

ASU-RSI: Signs Pointing to Improvement

KnowWPCarey — Tue, 24 Nov 2009 10:42:35 EST

The ASU Repeat Sales Index (ASU-RSI) continued to decline in June, but the numbers contained positive signals that improvement is the trend in the Phoenix metro real estate market. Overall, the ASU-RSI revealed that Phoenix prices in June declined by 31 percent when compared with prices in June 2008 -- a slight improvement over May, when prices declined by 33 percent over May 2008, and April, which declined 35 percent compared to April 2008. When prices are compared month to month, there is more hopeful news. Prices tracked by the index increased by 0.8 percent in June 2009 compared to May 2009 -- the first time that has happened since March 2007.

The Economic Minute: Phoenix and the Recovery, or Beyond Ground Zero

KnowWPCarey — Fri, 20 Nov 2009 10:42:35 EST

In this edition of The Economic Minute, economist Dennis Hoffman says that Arizona could be called "ground zero of the worst recession since World War II." The hard economic fact is that Arizona depends on in migration to keeps its economy vibrant, and the state is not exactly a people magnet right now. But, Hoffman said, this is not the first time the shine has disappeared from Arizona sunshine. The early '90s were similar, but the decade that followed was a boom. Hoffman advised that smart businesses should be preparing for the time when Phoenix regains its people magnetism. Dennis Hoffman is director of the L. William Seidman Research Institute at the W. P. Carey School of Business. The Economic Minute is presented at the monthly Economic Club of Phoenix luncheon.

GDP Is Up ... But Employment Recovery May Be Years Away

KnowWPCarey — Mon, 16 Nov 2009 10:42:35 EST

Economists, Wall Street, and the general public were pleased with the advance report on third quarter Gross Domestic Product (GDP) from the U.S Bureau of Economic Analysis. The consensus expectation as posted on Briefing.com was an annualized increase of 3.2 percent. The advance report from the BEA was higher, at 3.5 percent. This is the largest consumer spending increase since 3.7 percent growth was posted in the first quarter of 2007, well before the recession began. However, it is likely that unemployment and job losses will persist for some months to come.

Phoenix Housing Market Showing Signs of Recovery, but Still Has Issues

KnowWPCarey — Thu, 12 Nov 2009 10:42:35 EST

It's Indian Summer in the Phoenix real estate market: Like a replay of the traditional high sales months, resale activity increased in October -- from 9,070 sales in September to 9,955. But although the level of activity appears strong, it's not necessarily a sign of recovery, as foreclosures continue to be the dominant force. And, when people think about recovery they mean a time when prices return to what they paid for their homes. For people who bought at the top of the market, says W. P. Carey real estate professor Jay Butler, that time may be a long way off.

Eminent Domain: Drawing the Line on Property Rights

KnowWPCarey — Tue, 10 Nov 2009 10:42:35 EST

When the city of New London, Connecticut, moved to take homes in the modest Fort Trumball neighborhood by eminent domain, a group of residents resisted in court. Led by Susette Kelo, the residents eventually lost their case at the Supreme Court. The city had the green light to move ahead with plans to develop the area for offices, research facilities, high end condos and a hotel. The city's plans fell through, and the project was never built. The Kelo case touched off a nationwide backlash against eminent domain seizures that cut across ideological lines.

Trying to Lose Weight? Look Around the Table, Not Just On It

KnowWPCarey — Tue, 10 Nov 2009 10:42:35 EST

Standing next to a chubby pal might make you feel better about yourself, but it also could make you eat more -- or less -- depending on how big your buddy happens to be and how unbridled that person is at the buffet table. In fact, the weight and habits of a stranger in line ahead of you at some fast food place could impact your lunch choices, too. A team of researchers that included W. P. Carey marketing professor Andrea Morales has discovered that it isn't merely the amount of food your tablemate orders that may affect your own eating decisions. Your companion's dress or trouser size is likely to carry considerable weight, as well.

Friend or Foe: Does the Minimum Wage Hurt the Workers It's Intended to Help?

KnowWPCarey — Tue, 10 Nov 2009 10:42:35 EST

William Boyes understands why his students feel the way they do about the federal minimum wage -- why they seem to universally believe that the minimum wage is a good thing. It's a good thing for them; a good thing for workers across the country; a good thing for the economy as a whole. There's just one problem, says Boyes, a professor of economics at the W. P. Carey School of Business. He thinks they're wrong. But convincing them, he admits, is no easy task.

Arizona Town Hall Calls for Bold Action to Solve the State's Fiscal Crisis

KnowWPCarey — Tue, 10 Nov 2009 10:42:35 EST

Last week about 140 of Arizona's leaders gathered at the Grand Canyon for the 95th Arizona Town Hall -- designed to bring Arizonans together for three days of discussion, culminating in a plenary session where participants adopt a final report of findings and recommendations. The topic was governmental revenue -- an urgent issue for many states in the wake of recession but especially in Arizona, where a crippling budget crisis casts a forbidding shadow over the next several years. The background report, sent to participants in advance of the Town Hall meeting, was prepared by the L. William Seidman Research Institute at the W. P. Carey School of Business.

Western Region Accounts for 5 of 10 Weakest State Labor Markets

KnowWPCarey — Tue, 03 Nov 2009 10:42:35 EST

For the first time in the recession, all 50 states lost jobs over the year in September, reports Lee McPheters, editor of Economy@W. P. Carey. Before the latest figures were released, North Dakota had continued to add jobs year over year, albeit at a slowing pace. But the September numbers show North Dakota non-farm jobs declining by 300 compared to a year ago. Nationally, the economy lost 5.8 million jobs over the year, a decrease of 4.2 percent.

Self-ownership, Abortion, and a Brave New World

KnowWPCarey — Thu, 22 Oct 2009 10:42:35 EST

"The idea of ownership," said W. P. Carey Economics Professor William Boyes, "is that we can do anything we want with what we own as long as it does not harm anyone else or violate anyone else's property rights." By that definition, our common concept of ownership might often be called into question. When we go to the pet store and buy a dog or a cat, for example, we think of ourselves as pet owners. But the law regulates how we can treat our pets. That, Boyes said, means either we don’t own them or that they have private property rights as well. The law regulates how we treat ourselves, too. American history is rife with debate over the concept of property rights; the debate over abortion is a recent example.

2010 Economic Forecast: Don't Hold Your Breath

KnowWPCarey — Thu, 22 Oct 2009 10:42:35 EST

"The recession probably ended in June, if we had to pick a date," according to Jan Hatzius, Chief U.S. Economist at Goldman Sachs. But that doesn't mean it's time to break out the champagne. The return of up-trending charts may sound like good news for the economy, but it's going to be at least a couple of years before growth picks up in earnest. Hatzius is this year's recipient of the Lawrence R. Klein Award for Blue Chip Forecast Accuracy.

ASU-RSI: Phoenix Area Single-Family Market Improving -- Not So in Townhouse/Condo Sector

KnowWPCarey — Wed, 21 Oct 2009 10:42:35 EST

Single-family home prices in the Phoenix metro market have finally stopped diving, but the townhouse/condominium segment of the market continues to sink, according to the latest ASU Repeat Sales Index (ASU-RSI). Finance professor Karl Guntermann, who compiles the index with research associate Adam Nowak, reports that home prices declined 28 percent in July compared to July 2008, continuing a welcome moderating trend that started a few months ago. But analysis of townhouse/condominium data -- a new feature of the ASU-RSI -- shows that drop prices in that sector is still gaining speed.

How We Got Here: Bush Economic Advisor Analyzes the Financial Sector Meltdown

KnowWPCarey — Tue, 20 Oct 2009 10:42:35 EST

The deepest recession since World War II was caused by the collapse of the financial sector, but that disintegration is not proof that markets don't work, said Stanford economist Edward Lazear, who was chief economic advisor to former President George W. Bush. In fact, he said, the markets dealt swift and brutal punishment to those who made mistakes.

Consumer Spending and the 'New Normal' Economy

KnowWPCarey — Wed, 14 Oct 2009 10:42:35 EST

Economists, sociologists and other observers are divided in their view of consumer spending in the post-recession era that lies (somewhere) ahead. While there is little controversy about the short term outlook -- the dominant consensus is that consumers will spend less and save more -- the opinions of analysts diverge for the years after 2010, says Lee McPheters, editor of Economy@W. P. Carey. Some believe that consumer spending will show considerable strength as unemployment rates fall and consumers move to replace ageing durable goods such as autos and appliances. The alternative view is that the current contraction has been a "game changer" for consumers. High unemployment rates, foreclosures and tight credit markets have combined to bring a permanent new frugality to consumer behavior that will linger for years, bringing a "New Normal" economy with a reduced emphasis on the consumer.

Every Western State Expected to Lose Jobs This Year

KnowWPCarey — Tue, 13 Oct 2009 10:42:35 EST

Employment figures from the U.S. Bureau of Labor Statistics for the year through August show that every Western state lost jobs compared to the same eight-month period last year. Nationally, nonfarm employment through August was down by -3.7 percent. Several Western states (led by Wyoming) saw milder job losses. But California, Idaho, Oregon, Nevada and Arizona all have lost jobs at a faster pace than the nation, reports Lee McPheters, editor of Economy@W. P. Carey..

Phoenix Real Estate Outlook: Residential Recovering in 2010, but Commercial Continues to Slide

KnowWPCarey — Tue, 13 Oct 2009 10:42:35 EST

Forecasts by the Greater Phoenix Blue Chip real estate consensus panel show that perceptions of the metro real estate market continued to deteriorate in the third quarter of 2009. Projections for residential development are less optimistic than for second quarter, but even so, this sector is on its way to becoming a positive force in the economy. On the other hand, the commercial sector is sliding toward a hole.

From Provider to Partner: Service Relationships that Transform Businesses

KnowWPCarey — Wed, 30 Sep 2009 10:42:35 EST

"Attract more customers, retain the ones you have, and expand existing relationships." That is the magic formula for growth, according to Synovate's Chief Loyalty Architect Dr. Larry Crosby. "Everybody wants growth," he said, but with limited budgets and fierce global competition, attracting and retaining customers is easier said than done. The real key, according to Crosby, is the third part of the equation -- the cultivation and development of existing relationships. Crosby was one of the featured speakers at the "Creating Value Through Service" symposium organized in Shanghai by the Center for Services Leadership at the W. P. Carey School and Fudan University's Center of Service Marketing and Management.

Creating the Right Atmosphere: How Should Carbon-Emissions Permits Be Allocated?

KnowWPCarey — Wed, 30 Sep 2009 10:42:35 EST

If you had an asset worth billions of dollars, would you give it away free? No? Would you hand it over if charging for it would clobber farmers with added expense, hobble businesses in similar fashion, boost unemployment and raise the cost of living for just about everyone? To hear policy wonks and special-interest types spin it, those are the consequences lawmakers face in considering an allocation scheme for carbon-emission permits. And, right now, some 85 percent of the permits that will give utilities and other organizations the right to emit greenhouse gases into the atmosphere are going to be given away free of charge. Is that allocation scheme in the best interest of U.S. citizens? W. P. Carey economists William Boyes and Kerry Smith discuss the implications of this question, which legislators will consider in coming months.

Podcast: Foreclosures and Short Sales Complicate a Volatile Real Estate Market

KnowWPCarey — Mon, 21 Sep 2009 10:42:35 EST

The troubled Phoenix real estate market has experienced high levels of activity this summer. With the federal tax credit ending soon, first-time home buyers have been scrambling to get into a deal. Meantime, investors anticipating a rise in prices are coming back to the market. Much of the activity involves foreclosures and short sales -- transactions that can be complicated and sometimes include a surprise at the end for sellers. Jay Q. Butler, a professor of real estate at the W. P. Carey School of Business, has been tracking this market since the early 1980's. He says the future of the market depends on what happens in the Arizona economy.

ASU-RSI: Signs Point to Improvement

KnowWPCarey — Thu, 17 Sep 2009 10:42:35 EST

Recession Aftermath: A Tentative Scenario

KnowWPCarey — Tue, 15 Sep 2009 10:42:35 EST

The near-term outlook for the national economy continues to improve, but full recovery will be slow in coming, says Lee McPheters, editor of Economy@W. P. Carey. After decreasing this year, Gross Domestic Product (GDP) is expected to grow next year, but hundreds of thousands more jobs will be lost and unemployment will increase into 2010. U.S. nonfarm jobs will not grow for the year as a whole until 2011, and it will take another two years to finally get employment rolls back to the level recorded in 2007. In all, economic problems are expected to extend in varying degrees of severity for several more years.

Enough. Period.

KnowWPCarey — Wed, 09 Sep 2009 10:42:35 EST

John C. Bogle, founder of the Vanguard Mutual Fund Group and President of its Bogle Financial Markets Research Center, has been warning us for decades about the danger of short-term thinking and greed as motivator in the U.S. financial sector. In his new bestseller "Enough.," Bogle's thesis is that our nation has been engaged in decades of unchecked financial excess, for which we are now suffering: excess in investment company fees; excess in financial speculation masquerading as diversification and innovation; excess in the salaries of top executives; excess in salesmanship; and most importantly, excess in the role played by the financial industry in our national economy and national life.

Overcoming the Challenges in Migrating from Products to Services: Facing the Enemy Within

KnowWPCarey — Wed, 09 Sep 2009 10:42:35 EST

Charging for services involves an organizational shift. Stephen Brown, director of the Center for Services Leadership, says companies must move away from what he calls the logic of manufacturing -- how to make things, how to cut costs, how to increase efficiency -- towards a logic focused on addressing customers' needs. Unsurprisingly, the product-dominant firms themselves prove most resistant to this shift. "A service logic focuses on how to help customers solve their problems. This requires a deep and intimate understanding of customers beyond what most product-dominant companies have ever even considered," said Brown.

Foreclosures Continue to Taint Phoenix Real Estate Market

KnowWPCarey — Thu, 03 Sep 2009 10:42:35 EST

Foreclosed homes accounted for 37 percent of the total activity in the Phoenix metro real estate market in July -- down from February when foreclosures represented 51 percent of the sales. But despite the drop, foreclosures continue to play a major role, signaling that the market has a ways to go before it is healthy again, says Jay Q. Butler, Associate Professor of Real Estate in the Department of Finance at the W. P. Carey School of Business.

Bottom 5: Weakest Large Labor Markets in July

KnowWPCarey — Wed, 02 Sep 2009 10:42:35 EST

The Phoenix area was the nation's weakest large labor market in July, according to figures recently released by the U.S. Bureau of Labor Statistics. Lee McPheters, editor of Economy@W. P. Carey, notes that among metropolitan labor markets with more than one million workers, both Phoenix and Detroit recorded decreases in employment of more than 7 percent. But Phoenix was weaker than Detroit and all other large labor markets in July, with an over-the-year percentage decline of 7.8 percent compared to 7.5 percent for Detroit.

Western States Unemployment: The Rest of the Story

KnowWPCarey — Wed, 02 Sep 2009 10:42:35 EST

Most are aware that the official unemployment rate tells only part of the story. Lee McPheters, in the lead story of the Western Blue Chip Economic Forecast, writes that the U.S. Bureau of Labor Statistics also counts "discouraged workers" -- those who have become so pessimistic about the economy that they have given up on the job search. But there are other groups of people who are also out of work -- some because of circumstances and some who are involuntarily working part time. These groups, together with the discouraged seekers, constitute the labor "underutilization rate." Add labor underutilization to unemployment and the unemployment measure is in double digits for all but two Western states.

Product Companies Becoming Profitable Services Providers

KnowWPCarey — Fri, 21 Aug 2009 10:42:35 EST

Many companies have been shifting away from a sole focus on products and have added services in order to drive continued growth and differentiate themselves in an increasingly saturated marketplace. In fact, services account for 80 percent of the U.S. GDP and similarly high percentages in the GDPs of other developed nations. In China, where the Center for Services Leadership recently hosted a symposium on the subject, services now account for 40 percent of GDP, up from 34 percent a few years ago. The key to a successful move into services, experts say, is to recognize that running a service business is not the same as running a product business, and that the transition will not happen overnight.

Nobel Laureate Myerson Tells China To Spend More of Its Dollars

KnowWPCarey — Wed, 19 Aug 2009 10:42:35 EST

U.S. Economy: Can 77,255 Americans Be Wrong?

KnowWPCarey — Wed, 19 Aug 2009 10:42:35 EST

A recent internet poll posted on the Money magazine web site asked "When will the U.S. economy improve?" The answer from 80 percent of those responding was that the economy will improve no sooner than next year, or even later. The smallest group (a mere 7 percent) chose the answer that the economy would improve "in the next few months." The view that the economy will improve very soon is a minority opinion among the general public, writes Lee McPheters, editor of Economy@W. P. Carey, but it is the dominant view (by far) held by professional economists. In a poll of leading corporate economists in the August edition of Blue Chip Economic Indicators, 87 percent project an end to the recession within the current quarter.

ASU-RSI: Slower Rate of Decline Equals Improvement

KnowWPCarey — Wed, 19 Aug 2009 10:42:35 EST

Although prices in metro Phoenix dropped 33 percent in May compared to May 2008, the rate of decline once again slowed, adding another month to an improving trend in the market, according to the ASU-Repeat Sales Index (ASU-RSI). The latest data also shows that unlike the last downturn, lower-priced homes are the hardest hit sector.

Adverse To Whom? Insurance Company Fears of 'Adverse Selection' May Be Unfounded

KnowWPCarey — Mon, 03 Aug 2009 10:42:35 EST

For decades, insurance companies have been pricing policies based on the belief that adverse selection comes into play among their customers. Adverse selection is what happens when the people who need protection most -- those, for example, with the greatest health problems or worst driving records -- buy lots of coverage. But Michael Keane, professor of economics at the W. P. Carey School of Business, says there are no empirical data proving adverse selection. In fact, insurance companies often benefit from "advantageous selection," because the people who are the best risks also are their best customers. In reality, those who need lots of coverage often do not buy it -- usually because they don't understand the offerings. Policy makers and political leaders who are trying to reform healthcare should take note, Keane says.

Second Look: Michael Ahearn of First Solar, Inc. Says Europe's Energy Policies Leaving U.S. Behind

KnowWPCarey — Wed, 29 Jul 2009 10:42:35 EST

Today's news included the announcement that First Solar Inc. has signed one of the largest solar photovoltaic power deals ever in the U.S. The contract with Southern California Edison has First Solar developing two solar-power projects with a combined 550 megawatts of capacity. The news prompted the Knowledge@W. P. Carey team to offer you another look at this report on First Solar founder and CEO Michael Ahearn. In a recent speech, Ahearn told how the company, based in the Phoenix desert, went abroad to the much less sunny Germany to find the market opportunity that made it one of the fastest growing manufacturers of solar modules in the world. Ahearn warned that energy policies in European Union member nations have positioned the continent to move efficiently toward a carbon-neutral model that will be a global competitive advantage in coming decades.

Swimming Naked: Rethinking Risk Management After the Crisis

KnowWPCarey — Tue, 21 Jul 2009 10:42:35 EST

Warren Buffet said: "When the economic tide goes out, you find out who is swimming naked." The financial upheaval of the last two years has revealed a number of inadequately clad investors. Just as every crisis prompts soul-searching about assumptions and standard procedures, banks and other financial institutions are taking a serious look now at how they measure, price and monitor risk in the capital markets.

Junk Bonds, Subprime and the Pepper Crises: Investor Behavior Follows Pattern

KnowWPCarey — Fri, 17 Jul 2009 10:42:35 EST

In his classic book on economic history, Charles Kindleberger argued that asset bubbles follow a predictable pattern. A new opportunity or technology sparks investor euphoria. Asset prices quickly rise to an unsustainable level. Then suddenly, people stop buying, and panic ensues. The more people who leave, the faster values plummet. So it is with real estate and subprime mortgages today, and so it was with junk bonds a generation ago.

The View From the Bottom: Phoenix Real Estate Market

KnowWPCarey — Thu, 16 Jul 2009 10:42:35 EST

What does the trough of a real estate slump look like? Phoenix metro area property owners will have time to take a close look at this unpleasant and hazardous landscape as the real estate market slides to the bottom over the next several months -- and settles in for a slow, volatile recovery. According to Karl Guntermann, who compiles the ASU-RSI, a slight increase in resale median prices offers some hope. Construction and commercial? Elliott Pollack, co-editor of the Greater Phoenix Blue Chip Economic Forecast says: "Not a pretty picture."

U.S. Economy: Is the Free Fall Finished?

KnowWPCarey — Wed, 15 Jul 2009 10:42:35 EST

Nobody would claim the U.S. economy is healthy right now. After all, we are in the worst contraction since the Great Depression, and poor numbers are being posted for almost every economic indicator. But analysts are watching several key components of the economy that have stopped the free fall and appear to be stabilizing and poised for rebound.

The Cost of Capital: Goldman Sachs' Extreme Makeover

KnowWPCarey — Mon, 06 Jul 2009 10:42:35 EST

In September 2008, the financial storms that had battered global markets since spring began to threaten the legendary investment bank Goldman Sachs. The 139-year-old financial titan had seen its stock plummet nearly 50 percent in a matter of weeks. Three other big investment banks had either gone bankrupt or been shuffled off to larger firms in rushed sales, and many Wall Street observers wondered if Goldman would be next. But nine months later, Goldman is very much back from the brink. Its stock price has rebounded, recovering nearly 50 percent in the first four months of 2009. On June 17, it repaid a $10 billion emergency capital infusion the U.S. government had provided at the height of the crisis. And with several of its biggest competitors gone, Goldman Sachs is again a dominant player in global finance. Goldman's experience in the financial crisis of 2008 demonstrates how calculations and strategies surrounding the cost of capital are critical to a firm's success, according to L. Wendell Licon, W. P. Carey clinical assistant professor of finance.

Unemployment's Uneven Impact

KnowWPCarey — Thu, 02 Jul 2009 10:42:35 EST

The U.S. unemployment rate went up again in June, rising to 9.5 percent (seasonally adjusted). Although the whole economy is affected by this worst contraction since the Great Depression, the impact of growing unemployment hits harder at certain demographic groups and industries, says Lee McPheters, editor of Economy@W. P. Carey.

Video: Shaping the Way We Think About Trade

KnowWPCarey — Wed, 01 Jul 2009 10:42:35 EST

The Kearny Alliance and Arizona State University are co-hosting a series of forums in the U.S. and in China to explore global trade challenges and their impact on the evolving trade infrastructure. The first Kearny Alliance - ASU Forum on Trade, China, and the World Economic Order convened in Phoenix this spring. Throughout the day, Knowledge@W. P. Carey talked to the presenters and participants about the social, environmental and political considerations that shape the way we think about trade with China.

Your Career, Our Economy: Stakes Are High When Finance Professionals Let Ethics Slide

KnowWPCarey — Tue, 30 Jun 2009 10:42:35 EST

Bernie Madoff. AIG. Allen Stanford. When Marianne Jennings talks to her undergraduate students about business ethics these days, those are the subjects they want to talk about. Not surprisingly, Jennings says, the students often take a somewhat black-and-white view of things: Madoff was a crook; Stanford was a swindler; those execs at AIG were reckless, irresponsible, and had absolutely no right to take those big bonuses -- not after the carnage they caused. Blame it on the executives, the students say. It's the guys in the executive suite who can't be trusted. Not so fast, says Jennings. The lesson to be learned, she says, isn't that executives have to act more ethically. Instead, it's that everyone must act more ethically.

Expedited Shipping, Done Environmentally

KnowWPCarey — Thu, 25 Jun 2009 10:42:35 EST

A case study on the green redesign of the U.S. Postal Service's expedited shipping products shows the importance of supplier collaboration in meeting sustainability requirements and keeping cost increases at bay. "One of the big issues with sustainability initiatives is cost, but the Postal Service was able to complete this green project and remain cost-neutral," says Phil Carter, a professor of supply chain management at the W. P. Carey School and executive director of CAPS Research. Private businesses can learn a lot from the Postal Service's example.

After the Fall: Opportunities and Strategies for Real Estate Investing in the Coming Decade

KnowWPCarey — Wed, 17 Jun 2009 10:42:35 EST

From seasoned real estate writer Steve Bergsman comes this message: Proceed with caution, be patient and realize that there are many kinds of real estate markets -- each with particular potentials and pitfalls. The Arizona native's latest book, "After the Fall: Opportunities and Strategies for Real Estate Investing in the Coming Decade," helps investors figure out what to make of today's commercial, industrial, retail, multi-family, single-family, condominium, second-home and vacation real estate.

Top Forecasters (Slightly) More Optimistic for 2010

KnowWPCarey — Mon, 15 Jun 2009 10:42:35 EST

Each year, the W. P. Carey School evaluates the annual accuracy of projections from the 50 national economists that contribute to the consensus forecast reported monthly in Blue Chip Economic Indicators. Based on the School's tabulations, the most accurate forecaster is presented with the prestigious Lawrence R. Klein Award, named after the Nobel Prize winner and eminent economist. From time to time, it is useful to see what these past forecast award winners are saying about the economic outlook. For 2010, the accuracy award winners seem somewhat more optimistic than the current Blue Chip consensus.

ASU-RSI: Beginning of the End of Price Plunge?

KnowWPCarey — Mon, 15 Jun 2009 10:42:35 EST

Sales data from March indicate that a trend change in housing prices might be underway in the beleaguered Phoenix metro market. According to the ASU-RSI (Arizona State University-Repeat Sales Index), prices in the metro area declined at the same rate in March 2008 -- 37 percent -- as they did in February, suggesting that the 25-month swoon may be easing.

Executive Compensation: How Market Forces Propelled Salaries to the Heights

KnowWPCarey — Mon, 08 Jun 2009 10:42:35 EST

Compensation practices at financial institutions receiving federal bailout money raised the ire of citizens and lawmakers this winter, but the huge salaries and bonuses paid to some corporate leaders are not new. How did executive compensation reach such lofty levels? Market forces have been at work, say management professors Robert Hoskisson and Luis Gomez-Mejia. Changing dynamics in American board rooms have shifted the bulk of management responsibility away from directors and back almost entirely onto top executives, they say. And because these executives now bear this huge burden alone, they are demanding contracts that reflect this level of responsibility and offer them some kind of protection. That's because when things go wrong and the CEO is fired, he knows that the chances are small that he will ever claim the top job again.

Economy@W. P. Carey: The Consumer Still Not Back in the Game

KnowWPCarey — Wed, 27 May 2009 10:42:35 EST

At mid-month, analysts had turned more pessimistic about the economy, as some of the promising "green shoots" of recovery appeared to have withered, writes Lee McPheters, editor of Economy@W. P. Carey. Economy-watchers (and the equity markets) had seized on a report that consumption spending was up by 2.2 percent in first quarter 2009. But the April release on consumer spending (set for June 1), is expected to show that the January and February increases were unsustainable, anomalous upticks.

Trade, China and the World Economic Order, Part 4: Balancing Business Imperatives and Policy Issues

KnowWPCarey — Wed, 27 May 2009 10:42:35 EST

The way businesses and policymakers approach economic integration is quite different. Businesses tend to be pragmatic -- focusing on finding immediate solutions. Policymakers, on the other hand, are often more idealistic and focused on resolving "big picture" issues -- which can be much more difficult to do. As China and the U.S. continue to do business together, how to address those tough "big picture" issues, such as sustainability and human rights, without impeding economic integration at the company level -- is a key question. In the last of a four-part series, this piece addresses the overarching question of how to balance the benefits of economic integration -- which accrue to the people of the U.S. and China, as well as American and Chinese businesses -- with concerns about such issues as environmental and human rights protection. The discussion took place at the recent ASU/The Kearny Alliance Forum on Trade, China and the World Economic Order.

Successful Small Team Leadership: Manage the Group, Not the Individuals

KnowWPCarey — Wed, 27 May 2009 10:42:35 EST

Differentiated leadership -- a management style in which leaders treat individual staff members differently based on such factors as their skills, perceived value or personalities -- is a widely accepted approach to management. It seems like common sense, but new research from management Professors Angelo Kinicki and Anne Tsui and Joshua Wu of the University of Miami finds that differentiated leadership doesn't work in a team setting -- in fact, it's downright damaging.

The New Frugality: Will It Last or Languish?

KnowWPCarey — Wed, 27 May 2009 10:42:35 EST

Parsimony is a little like dancing, according to marketing Professor John Lastovicka. It's something anyone can learn, but some have more talent for it than others. What's more, the truly penny-wise take pleasure in their penny pinching. But, he adds, frugality is a tough road to walk, one he believes will be "difficult to make popular during times of plenty." Lastovicka is one of the few researchers who's examined lifestyles of those who scrimp and save -- work that's especially timely during a recession.

Take the Test: Third Annual Arizona Economic Confidence Quiz

KnowWPCarey — Thu, 21 May 2009 10:42:35 EST

How confident are you that you understand the Arizona economy? This test of your economic knowledge was administered at the Annual Economic Outlook luncheon hosted by the W. P. Carey School's Economic Club of Phoenix. Some of the answers may surprise you!

The End (of Recession) Is Near, But It Won't Be Pretty

KnowWPCarey — Thu, 21 May 2009 10:42:35 EST

An anemic economic recovery will begin at the end of the year, but don't expect the pain to end anytime soon. That was the analysis provided by top economic experts from the W. P. Carey School of Business and the Arizona governor's office at the annual Economic Outlook Luncheon on May 20. Economists Dennis Hoffman and Lee McPheters shared the podium with Eileen Klein, director of the Arizona Governor's Office of Strategic Planning and Budgeting. Their message was that the economy will begin to regain strength, but the process will be slow. Meantime, if nothing is done to address the problem, the state's revenue gap will continue to widen over the next several years.

Arizona and the Recession: Three Perspectives

KnowWPCarey — Wed, 20 May 2009 10:42:35 EST

On May 20, the Economic Club of Phoenix presented its annual Economic Outlook Luncheon. W. P. Carey economists Lee McPheters and Dennis Hoffman sketched the current condition in Arizona and the U.S., then Eileen Klein, director of the Arizona Governor’s Office of Strategic Planning and Budgeting, presented the governor's strategy to meet those challenges. Knowledge brings you their speeches and accompanying slides.

ASU-RSI: A Slowing Rate of Decline Equals Good News

KnowWPCarey — Mon, 18 May 2009 10:42:35 EST

Phoenix metro real estate prices declined 37 percent in February compared to February 2008, but preliminary data for March and April show that the rate of decline may be slowing. "In this market, that would be considered good news," said real estate professor Karl Guntermann who compiles the ASU-RSI (Arizona State University-Repeat Sales Index) with research associate Alex Horenstein.

Western Blue Chip: Arizona Had Weakest Labor Market Performance of All States in March

KnowWPCarey — Wed, 06 May 2009 10:42:35 EST

All but three states reported losses in nonfarm employment in March 2009 compared to 12 months earlier, according to figures released by the U.S. Bureau of Labor Statistics. Nationally, the economy lost 4.8 million jobs over-the-year in March, and payroll employment fell by 3.6 percent. Only North Dakota, Louisiana, and Alaska escaped job losses, recording gains of less than one percent over the previous 12 months. Arizona's over-the-year job losses were the worst of all states, with employment decreasing by 6.9 percent from a year ago

Podcast: Can Obama Grow Policy From the Grassroots?

KnowWPCarey — Wed, 06 May 2009 10:42:35 EST

Candidate Barack Obama took grassroots networking into the digital age in his successful quest for the White House. Gerry Keim, associate dean for the W. P. Carey MBA, looks at whether President Obama can now convert his grassroots network to support his policy agenda.

Podcast: Message to New Grads and Career Changers -- You Can Land a Dream Job in a Down Economy

KnowWPCarey — Wed, 06 May 2009 10:42:35 EST

This spring's crop of college graduates are venturing forth into one of the most challenging job markets in decades. Michael Turner, who graduates from Arizona State University with a degree in communications this month, talked to classmates about their readiness -- or lack thereof -- to land that first post-college job. Kevin Burns, director of undergraduate career education at the W. P. Carey School of Business, offers great advice for new graduates -- and career changers -- about how to get a job in your field of dreams.

Trade, China and the World Economic Order, Part 3: Business Leaders' Advice on Succeeding in China

KnowWPCarey — Wed, 06 May 2009 10:42:35 EST

Doing business in China different than doing business anywhere else. Seasoned business veterans on the China scene -- from Motorola, Emerson Electric, Harley-Davidson, ON Semiconductor and TPI Composites -- offered their advice for successfully doing business in China recently at the first of three forums on trade, China and the world economic order. The W. P. Carey School of Business and ASU's Sandra Day O'Connor College of Law are partnering with The Kearny Alliance to host the forums. Part 3 in a series of four articles covering the forum, this piece covers the microeconomic -- some would say practical -- side of trade: the businesses that actually sell to, and from, China.

The Economic Minute: Mark-to-Market Accounting

KnowWPCarey — Fri, 01 May 2009 10:42:35 EST

The Financial Accounting Standards Board (FASB) recently came out with new rules governing "mark-to-market accounting." Entities employing mark-to-market adjust the value of financial assets up or down, according to fair market value. The practice has been the subject of controversy during the current financial crisis. In this edition of The Economic Minute, John Sizer, a partner at Deloitte & Touche, tells Economic Club of Phoenix members that mark-to-market is not the problem. "It is my personal opinion that the new FASB positions are helpful, that accounting standards are not the underlying cause of the write-down of financial assets but rather reflect the underlying problem with those assets," Sizer said. "Mark-to-market is not perfect, it requires significant professional judgment, but I believe it is the most accurate and reasonable portrayal of a company's financial condition."

ASU-RSI: Preliminary Data Offer Glimmer of Hope for Plunging Phoenix Home Prices

KnowWPCarey — Tue, 28 Apr 2009 10:42:35 EST

Arizona real estate markets tend to swing wildly. During boom periods, home prices accelerate precipitously, but when the bubble bursts, residential values sometimes slink all the way back to the price level at the start of cyclical upturn. However, the tend line is different in this recession -- things are actually much worse, as housing prices in the Phoenix metropolitan area have overshot the beginning of the cycle mark, according to the latest data from the Arizona State University-Repeat Sales Index (ASU-RSI). But while the news of home value does seem to be grim, there are nuggets of hope in the preliminary ASU-RSI data as well.

Initial Claims: Green Shoots or False Signal?

KnowWPCarey — Mon, 20 Apr 2009 10:42:35 EST

Current economic reports are grim, with indicators such as capacity utilization and housing starts at levels consistent with a deep contraction. Yet, there is a widespread view among analysts that the official end date of this recession is not that far off, sometime in late 2009. If this consensus is correct, then there should be some signs in the next few months of bottoming out in the economy. One harbinger of economic improvement can be found in the weekly reports on initial claims for unemployment insurance.

Forecasters See Economy Turning Positive in Second Half of 2009

KnowWPCarey — Thu, 16 Apr 2009 10:42:35 EST

Economy-watchers anticipated poor performance from the economy in the first quarter of 2009, and they got what they expected when the Bureau of Economic Analysis released the advance report on Gross Domestic Product (GDP). GDP was down by an additional 6.1 percent in the first quarter, after plummeting 6.3 percent in the fourth quarter of last year (quarterly GDP changes are annualized and adjusted for inflation). The consensus view among economists is that one more negative quarter lies ahead, although the decline in Q2 will be a more modest decrease of 2 to 3 percent. But once the economy gets past these three quarters of carnage, analysts look for growth as measured by GDP to turn positive in the second half of 2009. The Round Number Forecast from the W. P. Carey School of Business is projecting that GDP will decrease by 3.0 percent for all of 2009 and increase by 2.0 percent next year. (Updated May 7, 2009)

The Business of Climate Change: A Call for Innovation

KnowWPCarey — Wed, 15 Apr 2009 10:42:35 EST

Whether or not you believe the science on climate change is irrelevant, says Andrew J. Hoffman, a University of Michigan professor of sustainable enterprise. Whatever you think, it's long past the time to open your eyes to the business implications. Author of "Climate Change: What's Your Business Strategy?", Hoffman visited Arizona State University recently as part of the Wrigley Lecture Series on Sustainability, co-hosted by the W. P. Carey School of Business and the National Center of Excellence on SMART Innovations.

Trade, China and the World Economic Order, Part 2: Has China's Accession to the WTO Made the World a

KnowWPCarey — Wed, 15 Apr 2009 10:42:35 EST

In 2001, China became the first centrally-planned economy admitted to the World Trade Organization (WTO) -- the only global international organization designed to facilitate multilateral trade between its member nations. The WTO's self-professed primary purpose is "to open trade for the benefit of all." The W. P. Carey School of Business and ASU's Sandra Day O'Connor College of Law are partnering with The Kearny Alliance to host three forums on trade, China and the world economic order. One question at the heart of the forum's discussion is this: Has China's membership in the WTO, in fact, made the world better off? The tentative answer, at least, seems to be yes.

Survival of the Smartest: After the Layoffs, Manage for Long-Term Stability

KnowWPCarey — Wed, 15 Apr 2009 10:42:35 EST

If you're one of the millions of workers left behind after layoffs, sweating over an inflated workload, fretting that you might be next, you already know how demoralizing a "reduction in force" (RIF) can be. If you're managing layoff survivors, you have even more reason to worry. RIFs can clobber morale, erode loyalty, stymie creativity and set your firm up for a migration of talent that could hobble you long after the economy revives. Experts at the W. P. Carey School say that now is the time to manage employee angst and solidify relationships so that once you survive this recession, you'll be able to thrive in the recovery ahead.

Forecast: After Residential Market Bottoms Out, Commercial Construction Will Continue To Fall

KnowWPCarey — Tue, 07 Apr 2009 10:42:35 EST

The 13 economists who track the real estate construction industry for the Greater Phoenix Blue Chip Economic Forecast are projecting that the metro area's residential market will bottom out in 2009, however down times will continue on for the multi family and commercial sector. The Greater Phoenix Blue Chip Economic Forecast appears quarterly on Economy@W. P. Carey, a new web site offered by K@WPC that covers the economy in the western United States.

ASU-RSI: Economic Malaise Slowing Arrival of Real Estate Relief

KnowWPCarey — Mon, 06 Apr 2009 10:42:35 EST

Malaise in the economy is slowing down the arrival of relief for Phoenix real estate and lengthening what is already a record-breaking run of declining prices, according to an analysis of the Arizona State University-Repeat Sales Index (ASU-RSI). The rate of decline had been showing signs of leveling off last fall, but then the financial crises hit, further injuring the limping market, said Finance Professor Karl Guntermann, who compiles the index with research associate Alex Horenstein. Home prices in the metro-Phoenix area dropped 33 percent in 2008, and in January and February prices are projected to drop even more. Prices have been declining for 22 months now, exceeding the previous record: a 17-month plunge in prices between 1989 and 1991.

The Economic Minute: The Changing State of Banking

KnowWPCarey — Wed, 01 Apr 2009 10:42:35 EST

Hope Berman Levin, the regional president for U.S. Bank in Arizona, recently touched on some of the rapid-fire changes that are happening in banking, during a talk at the W. P. Carey School's 26^th Annual Dean's Council of 100 Executive of the Year Luncheon. Levin commented on new policies at the FDIC, interest rates, bank failures and the future of the industry. The Economic Minute, presented at Economic Club of Phoenix luncheons, brings you the insights of the school's economists and the business leaders who are members of the Economic Club of Phoenix and the Dean's Council of 100.

Trade, China and the World Economic Order, Part 1: The Mechanics, and History, of Global Trade

KnowWPCarey — Tue, 24 Mar 2009 10:42:35 EST

The world's two economic superpowers -- the United States and China -- face significant challenges as they confront the future possibilities of trade and a new world economic order. These partners in the world economy are entering uncharted territory, moving toward a world in which it is no longer clear that our current trade infrastructure is either sufficient or best fit for what lies ahead. The W. P. Carey School of Business and ASU's Sandra Day O'Connor College of Law are partnering with The Kearny Alliance to host three forums on trade, China and the world economic order. In the first of four Knowledge@W. P. Carey stories on the topic, we focus on the "mechanics" of trade as well as its history -- including the rise and fall of former economic leaders. As they say, "those who do not learn from history are doomed to repeat it."

The Next Shoe Just Dropped

KnowWPCarey — Tue, 24 Mar 2009 10:42:35 EST

Although nonresidential building held up longer than residential activity in the current recession, the nonresidential downturn now has started and is expected to continue into 2010. The timing of the rise and fall of these two construction categories differs. Nonresidential building began to increase strongly at the beginning of 2006, just as residential activity was sagging, and double-digit growth continued in seven of the next 10 quarters, partially offsetting the drag on GDP created by the residential downturn. But nonresidential building hit the skids in the fourth quarter of 2008 with an annualized decrease of 5.9 percent. Now, looking forward, analysts see no bottom in sight for nonresidential spending during the current year.

Latest Numbers Indicate a Longer, Deeper Recession

KnowWPCarey — Thu, 19 Mar 2009 10:42:35 EST

Two indicators of the severity of the current recession, depth and duration, worsened in the past month. The depth of the decline in inflation-adjusted Gross Domestic Product in the fourth quarter of 2008 was revised by the U.S. Bureau of Economic Analysis from a fall of 3.8 percent to minus 6.2 percent. The economy has not experienced a quarterly dip of this magnitude since the first quarter of 1982, when GDP fell by 6.4 percent. Research Economist Lee McPheters, editor of Economy@W. P. Carey, says the consensus from most observers is that the recession will be measured in quarters, not years, but it will be the worst downturn since the Great Depression.

A Roadmap for Sustainable Supply Management

KnowWPCarey — Tue, 17 Mar 2009 10:42:35 EST

Achieving environmental sustainability for supply management is a goal which may also help boost firms' overall competitiveness in these fretful economic times. But despite the hype surrounding everything "green" these days, many companies wishing to embark on environmental sustainability programs do not know where to begin. Before you set up strategies and tactics and develop metrics for supply management environmental sustainability, define what environmental sustainability means to your organization, says management Professor James Hershauer. A new report from the W. P. Carey School's CAPS Research helps companies learn to define, understand, create, measure, and test their supply management environmental sustainability plans.

Western Labor Markets Fared Best and Worst Since Recession Started

KnowWPCarey — Wed, 11 Mar 2009 10:42:35 EST

Labor markets in the Western states are among those (a) hardest hit and (b) least affected by the current economic contraction, based on nonagricultural employment figures for January 2009, released by the U.S. Bureau of Labor Statistics. Wyoming has added jobs at a faster pace than any other state since the recession began, and Texas added the most new jobs during that period. But three of the five weakest labor markets in the country are from the West -- Arizona is tied with Michigan for last place, and Idaho and Nevada are ranked with Florida to round out the five poorest performers.

Does the Stimulus Plan Hit the Target for Job Creation?

KnowWPCarey — Mon, 09 Mar 2009 10:42:35 EST

One of the features of fiscal policy initiatives is that they can be targeted to industries and geographic areas in greatest need. The American Recovery and Reinvestment Act (the "stimulus plan") is aimed at construction, energy alternatives, health care, education, and a number of infrastructure categories thought to not only create jobs but build a foundation for future growth. These industries have been listed in some detail in the actual wording of the Act. However, the geographic targeting is less precise, writes research Economist Lee McPheters, editor of Economy@W. P. Carey.

The Economic Minute: Help is Here ... So When Will We Feel Better?

KnowWPCarey — Wed, 04 Mar 2009 10:42:35 EST

The Economic Minute is a new feature of Knowledge@W. P. Carey. These brief recaps by W. P. Carey economists, first presented at Economic Club of Phoenix luncheons, are designed to bring you up to date on current conditions nationally and in the West. In this edition, research economist Lee McPheters, editor of Economy@W. P. Carey, details how much help is coming to hard-hit Arizona via the economic stimulus package.

High-Rolling Casinos Hit a Losing Streak

KnowWPCarey — Mon, 02 Mar 2009 10:42:35 EST

The American gaming industry enjoyed an unprecedented run of luck during the late 1990s and the first half of this decade. Las Vegas casino owners built bigger, more luxurious -- and wildly expensive -- new properties, betting a bundle that the booming economy would keep their casinos full of gamblers and their hotel rooms loaded with tourists. But it all came tumbling down when the collapse of the capital markets began, throwing the U.S. economy, and the economies of most countries in the world, into a tailspin. The gaming industry "has suffered very substantially in the period since then," Gary Loveman told a ballroom full of business leaders attending a recent Economic Club of Phoenix luncheon. Loveman is chairman and CEO of Harrah's Entertainment Inc., the largest casino company in the world.

U.S. Economy: Stimulus Plan Not a Quick Fix

KnowWPCarey — Mon, 02 Mar 2009 10:42:35 EST

We shouldn't expect the stimulus plan presented by Congress to the President to bring an early end to dismal data reports on the health of the economy. Conditions will continue to worsen for at least the next two quarters. Indeed, most analysts expect annualized growth in real Gross Domestic Product (GDP) to dip by as much as 5 percent in the current quarter. This will be the weakest quarter for GDP growth since a decrease of 6 percent logged in the first quarter of 1982.

ASU-RSI: Record Breaking Fall in Phoenix Market Continues

KnowWPCarey — Tue, 17 Feb 2009 10:42:35 EST

Real estate expert and finance Professor Karl Guntermann has been predicting for a long time that the decline in Phoenix area home prices would probably bottom out by the end of 2008. But, after November's report showed a 32 percent decline and projections for December and January looking grim as well, even Guntermann is scratching his head in dismay. "I thought as late as last month things were going to bottom out," Guntermann notes, "but the rate of decline is still going south." In fact, he added, it may take another year to get the rate of decline to zero.

Expecting the Unexpected: Why You Should Not Let Experience Be Your Guide

KnowWPCarey — Wed, 11 Feb 2009 10:42:35 EST

More than year before the financial markets began their sickening plunge, Nicholas Taleb warned against the kind of conventional thinking, lazy assumptions and reliance on formulaic mathematics that led so many experts to assume that all the fundamentals were sound in the 21^st century economy. Taleb's book, "The Black Swan -- The Impact of the Highly Improbable," urged us to be aware of the limitations of our observations and experience and to admit the fragility of our "knowledge." Taleb admits that the more he learns, the less he realizes he knows, the less wedded to certainty he becomes. The result is a book that is like a Tao of economics in particular and life in general.

Western States Find Little Good News in Latest Economic Numbers

KnowWPCarey — Wed, 11 Feb 2009 10:42:35 EST

Analysts are sifting through the latest economic data for their states, but there is little good news to be found. According to December figures on unemployment recently released by the U.S. Bureau of Labor Statistics, unemployment is up over last month in each of the 50 states. In addition, the U.S. Census Bureau's preliminary December statistics on single-family housing showed residential housing permits down in all states.

Privacy Practices: The Challenge of Safeguarding Digital Data

KnowWPCarey — Wed, 11 Feb 2009 10:42:35 EST

Privacy once meant drawing the drapes. Now that we depend on technology to do the world's business, privacy means securing data, protecting personal information and keeping hackers at bay. Drawing the drapes in an electronic sense will call for a complex system of safeguards and require policymakers to create guidelines. On January 28, Data Privacy Day was observed across the U.S., Canada and 27 European nations. The W. P. Carey School of Business celebrated the day with a symposium for privacy leaders in the public, private and academic arenas. The event was hosted by the Center for Advancing Business Through Information Technology (CABIT) and Intel.

Going for the Green: Companies Seek Sustainability for the Environment and the Bottom Line

KnowWPCarey — Wed, 11 Feb 2009 10:42:35 EST

As power costs increase and consumers and government put more pressure on business to reduce environmental harm, sustainability is becoming important to all kinds of companies. Sustainable service was the subject of a panel discussion at the Center for Services Leadership's 19th Annual "Compete Through Service" symposium. Managers are starting to understand the advantages of being cleaner and greener, panelists said, but in order to bring about real change, the commitment to sustainability must be organization-wide. The changes have to make sense for the business and achieve impact beyond public relations.

Podcast: Markets Await Detail of Rescue, Stimulus Plans

KnowWPCarey — Wed, 11 Feb 2009 10:42:35 EST

Treasury Secretary Timothy Geithner announced the Obama administration's plan to rescue financial markets yesterday. The plan was long on promise and short on details, however, which sent markets spinning. Later in the day, the Federal Reserve stated it was ready to add $100 billion the TALF program, a move designed to increase consumer lending and invigorate the mortgage market. And, the Senate enacted its own version of the stimulus bill. Finance Professor and banking expert Herbert Kaufman sat down with Knowledge@W. P. Carey to discuss the events, starting with his reaction to Secretary Geithner's speech.

Buyers Beware: Your Supplier May Be Your Next Competitor

KnowWPCarey — Wed, 11 Feb 2009 10:42:35 EST

When executed correctly, strategic sourcing -- a multi-faceted approach to purchasing contingent on types of goods and services -- yields many benefits for both buying companies and their suppliers. But, by ignoring the complexity of strategic sourcing and focusing only on cost reductions, some aerospace buying companies have unintentionally turned their suppliers into competitors, according to new research by W. P. Carey professor of supply chain management Thomas Choi and his former doctoral student, Christian Rossetti.

Troubled Times Magnify Health Care Supply Chain Manager's Role

KnowWPCarey — Wed, 28 Jan 2009 10:42:35 EST

When times are good, expansion plans, future investments and revenue growth are the focus points in most industries. But during down times, organizations scrutinize spending. The current economic crisis is hitting the health care sector as hard as other industries. The result: shuttered private practices, squeezed hospital operating margins and many non-clinical jobs getting the ax. So what does this mean for health care industry supply chain managers? In an attempt to usher in supply chain efficiencies and shape a healthier bottom line, clinicians, executives and others are now more ready than ever before to listen to their supply chain managers. A panel of industry leaders addressed the topic at the third annual Leadership Summit on Health Care Supply Chain Management hosted recently by the World Health Care Congress.

Crisis Communication: Now More Than Ever, a Timely Topic

KnowWPCarey — Wed, 28 Jan 2009 10:42:35 EST

When it comes to examples of crises in business, we have "an embarrassment of riches," according to the author of "Crisis Communication: Practical PR Strategies for Management and Company Survival." The debacle of Enron's collapse and the Tylenol package-tampering scare are examples of crises that brought untold suffering to millions. We can learn from these examples how to handle crises -- and how not to. In his new book, Peter Frans Anthonissen brings a lot more to the table: Chapters written by 20 authors who are senior crisis communication consultants from IPREX, the worldwide corporation of independent PR firms.

Sending Clear Messages: Communicating the 'Core Idea'

KnowWPCarey — Wed, 28 Jan 2009 10:42:35 EST

People who know Mike Figliuolo likely were unsurprised when he founded a training and development firm called "thoughtLEADERS, LLC" in 2004. Up to that point, every stage of his career led seamlessly to the next, as he groomed himself in teamwork, delegating, structure, strategy and leadership. "My background is critical to the firm," he explained. "I spent so much time in meetings, listening to presentations that were poorly communicated and left me and other participants unsure of what the message was, what the next step should be and how their research backed up their hypothesis." Figliuolo was a speaker at the 19th Annual Compete Through Service Symposium, sponsored by the Center for Services Leadership at the W. P. Carey School.

Sandra Day O'Connor: Where Judges Can Be Bought and Sold

KnowWPCarey — Wed, 28 Jan 2009 10:42:35 EST

The story sounds just like a John Grisham novel: The CEO of a West Virginia energy company spent more than $3 million to help a relative unknown unseat the incumbent and become a judge on the state's Supreme Court. Later, that same judge, after refusing to recuse himself, cast the deciding vote on two decisions overruling verdicts against the energy company -- verdicts now worth $82 million. Retired Supreme Court Justice Sandra Day O'Connor isn't shy about her opinion on the matter -- states should do away with judicial elections in order to restore independence to their courts, she said recently at an Economic Club of Phoenix luncheon, co-sponsored by the W. P. Carey School of Business and the Sandra Day O'Connor College of Law at ASU.

U.S. Economy: Depressing? Yes! Depression? No!

KnowWPCarey — Wed, 28 Jan 2009 10:42:35 EST

Bad news is never welcome, and there is always plenty of it during recession. Research economist Lee McPheters, editor of Economy@W. P. Carey, concedes that while this recession lasts, more depressing headlines lie ahead. But, he says, it is still premature to conclude that "this is the worst we have ever seen." As of now, according to the received evidence to date, we are neither in nor on the brink of a repeat of the Great Depression of the 1930s. One indicator that bears watching, he says, is inflation-adjusted Gross Domestic Product.

Arizona Cardinals' Super Bowl Trip Provides Timely Boost for Phoenix Economy

KnowWPCarey — Wed, 28 Jan 2009 10:42:35 EST

"Victory is contagious, and food always tastes better when you win," says Ray Artigue, the former senior vice president of the Phoenix Suns, who is now a professor of practice in the marketing department at the W. P. Carey School of Business and director of the W. P. Carey MBA Sports Business Program. With the Arizona Cardinals playing in this weekend's 43^rd Super Bowl against the Pittsburgh Steelers, merchants will be selling a lot of food, beer, wine and other beverages this weekend in Phoenix. Fans are also snapping up truckloads of Arizona Cardinals caps, jerseys, t-shirts and other memorabilia. Although it's hard to measure the impact of the game on the Cardinals' home town, the extra cha-ching at cash registers couldn't have come at a better time.

ASU-RSI: Extreme Appreciation in Phoenix Real Estate Gone ... All Gone

KnowWPCarey — Fri, 16 Jan 2009 10:42:35 EST

The extreme appreciation that thrilled Phoenix area residents who bought their homes in the period just before the run up is gone -- all gone. But the downward slide isn't over yet. The median price of Phoenix metro houses declined to $160,000 in October 2008, according to the latest data from Arizona State University - Repeat Sales Index (ASU-RSI). "That puts the median house price back to the level of March 2004, close to the start of the current cycle," notes finance an real estate Professor Karl Guntermann. "If the median house price drops below $150,000, we would be back before the cycle began," he added. Apparently, that is where the Phoenix metro is headed.

Zappos CEO Tony Hsieh: Customer Focus Key to Record Sales During Retail Slump

KnowWPCarey — Wed, 14 Jan 2009 10:42:35 EST

Wearing faded gray jeans, a gray striped shirt and black sneakers, Tony Hsieh hardly looks the part of a $1 billion company's CEO. But as Hsieh addressed a session of the 19th Annual Compete Through Service Symposium sponsored by the W. P. Carey School of Business, those in suits and leather shoes took notice of the witty but reserved 34-year-old with an uncanny business sense who a decade ago built a $265 million Internet advertising company and then sold it to Microsoft. Hsieh now is head of Zappos, an online company founded in 1999 to sell shoes, which has since expanded into clothing, housewares, cookware and even electronics. But more than merchandise, Zappos is selling customer service and corporate culture.

The Economics of Stimulus

KnowWPCarey — Wed, 14 Jan 2009 10:42:35 EST

With a working title of "recovery and reinvestment," President-elect Obama's economic stimulus plan aims to "save or create" 3 million jobs by the end of 2010. In an interview on ABC's "This Week with George Stephanopoulos," Obama said he would focus on stimulus tools that delivered the "most bang for the buck" -- in that they provide jobs to more people, enabling increased spending which should then ripple through the economy. But what factors should policymakers take into account as they form a stimulus package? According to W. P. Carey School of Business experts, policymakers should consider: which forms of stimulus offer the best value for the dollar spent, which reestablish confidence in the economy, and which balance long-run with short-run benefits.

No Firm Is an Island: Why Buyers Should Probe a Supplier's Network

KnowWPCarey — Wed, 14 Jan 2009 10:42:35 EST

For any shopper who noticed how the price of hamburger and lettuce jumped after gas prices soared last year, this should come as no surprise: Buyers eventually feel the pinch when their suppliers' expenses surge. The reason? Buyers and sellers operate within networks that exceed the one-on-one, buyer-seller bond. That's why Thomas Choi, a professor of supply chain management at the W. P. Carey School of Business, thinks supply chain professionals would be wise to look beyond the supplier to its supply network. Without it, he argues, buyers are not examining all the factors affecting the strength and reliability of the suppliers they choose. Such shortsightedness leaves buyers vulnerable to supply troubles and missed opportunities.

Podcast: Persuading Nervous Customers to Buy

KnowWPCarey — Wed, 14 Jan 2009 10:42:35 EST

With the economy continuing to falter, consumer product and service companies are looking for every edge to bring in business. Robert Cialdini, a professor of marketing at the W. P. Carey School and author of "Yes: 50 Scientifically-Proven Ways to be Persuasive," talks about the psychological tendencies that determine whether you or your company can persuade a customer to buy your product. In uncertain times, people want to know what the experts say, and what other people like them are doing.

Give Me the Bad News: Successful Entrepreneurs Need Negative Feedback

KnowWPCarey — Wed, 14 Jan 2009 10:42:35 EST

What does it take to be a successful entrepreneur? Tom Blondi, who has been involved with several start-ups, says it takes more than a great idea. Much as you might like the cheerleaders, what you need more is someone who will ask tough, specific questions. Blondi spoke at the Spark IT Invitational, a conference sponsored by the W. P. Carey School's Center for the Advancement of Business through Information Technology.

Geek Squad: Best Buy's Corporate Mythology

KnowWPCarey — Wed, 14 Jan 2009 10:42:35 EST

We all know the Best Buy brand -- the big-box stores have been around for 30 years, populated by employees wearing blue shirts, selling products emblazoned with the yellow tag. Around 10 years ago, services began taking center stage -- derailing some industry leaders and empowering others. It was time to do something different. Best Buy leaders "started looking at how to get closer to our customers," said Sean Skelley, senior vice president of services for Best Buy Co., Inc. They came up with the concept of "relatable mythology," a story that connects the business to its customers. Skelley was speaking to customer-service leaders attending the Compete Through Service Symposium, an annual event hosted by the Center for Services Leadership at the W.P. Carey School of Business.

Tired, Irritable, Restless? It May Be 'Boreout'

KnowWPCarey — Wed, 14 Jan 2009 10:42:35 EST

In the nation's hospitals, today's dread epidemics are Staphylococcus aureus and Clostridium difficile. At the office, the scary "bug" is boreout, according to a new book from Phillipe Rothlin and Peter Werder. It affects as many as a third of employees, killing their initiative, energy and enthusiasm and leaving those affected tired, depressed and generally dissatisfied, lacking a sense of purpose. The word "burnout" was coined decades ago to describe employees who are overworked and overstressed. In their book, "Boreout! Overcoming Workplace Demotivation," Rothlin and Werder claim that the phenomenon of boreout is just as widespread and damaging as burnout -- and strangely enough, the symptoms are often very similar.

Tom McCabe: Asia Positioned for Post-Recovery Strength

KnowWPCarey — Wed, 17 Dec 2008 10:42:35 EST

The pain of the newly-declared recession knows no boundaries, and the Asian economies are not immune, but that region is positioned to rebound faster than the U.S. and come out stronger than before, according to Tom McCabe, managing director of Standard Chartered Bank PLC. Speaking from the perspective of more than a decade in the banking industry in Asia, McCabe told an audience of executives in Phoenix that Asia will be the world's engine of growth in the next 50 years, driven by India and China.

Luxury Homebuilder Geoffrey Edmunds Predicts a High Rise, Upscale Future for Phoenix Core

KnowWPCarey — Wed, 17 Dec 2008 10:42:35 EST

Luxury homebuilder Geoffrey Edmunds says the Phoenix market is suffering from a troika of price correction, financing troubles and oversupply -- and has yet to hit bottom. But when it recovers, the market will look different, he says. People will be less interested in developments flung out into the desert, and more attracted to the core -- inside the Route 101 loop. Many will be looking for what he calls "custom homes in a vertical configuration." Edmunds, who was inducted into the W. P. Carey School's Hall of Fame this fall, helped bring that style of living to Phoenix and California.

Immigration and the Economy: A Changing Debate

KnowWPCarey — Wed, 17 Dec 2008 10:42:35 EST

Yesterday's hot topic met today's crisis at the recent "Immigration and the Economy" forum, co-sponsored by the W. P. Carey School of Business, The University of Arizona, Thomas R. Brown Foundations and The Communications Institute. Discussion among panelists and forum participants was markedly different than at a similar forum last December, before the financial crisis and economic recession stole the headlines.

Energy Challenge for the Obama Administration: The Economics of Going Greener

KnowWPCarey — Wed, 17 Dec 2008 10:42:35 EST

Barack Obama becomes President in January, and he campaigned on reigning in CO2 emissions and making the United States less dependent on foreign sources of oil. He hopes to create jobs by jump-starting alternative energy industries -- all of which makes it look as though business as usual won't continue in the energy industry. On the other hand, the country's economic engine threw a rod in September, utilities are feeling the strain and alternative energy is more expensive -- if you don't calculate what economists call the "social costs" of conventional power generation. Given all that, how can the next administration make us greener and still keep the lights on?

Chinese Puzzle: Examining the Implications of Chinese Product Recalls, Part 2

KnowWPCarey — Wed, 17 Dec 2008 10:42:35 EST

In light of recent product recalls, this question nags: Has Chinese product quality actually deteriorated, or not? Opinion is split. Some argue forcefully that Chinese products have suffered in recent years, or at the very least, were never of high quality in the first place. Others believe the country is being unfairly singled out -- victimized, in a sense -- simply because it happens to be the world's leading manufacturer at a time when product recalls in general are on the rise. Responding to an academic forum published in the journal, Management and Organizational Review, experts at the W. P. Carey School offer insights.

Anthony Sanders: A Voluntary Private Market Solution

KnowWPCarey — Wed, 17 Dec 2008 10:42:35 EST

If the federal government really wants to stem the financial crisis, it must decisively address the huge -- and still growing -- number of delinquent and soon-to-be-delinquent mortgages, according to finance and real estate Professor Anthony Sanders. "The underlying core of the economy's problem is that the housing and mortgage market is still collapsing at record speeds," he said. Sanders proposed a voluntary private market solution in a December speech before the Dean's Council of 100, an advisory group at the W. P. Carey School of Business.

The Fruits of Integrity: Trust, Influence, Repeat Business

KnowWPCarey — Wed, 17 Dec 2008 10:42:35 EST

Each of us, as we go about our daily lives, has opportunity after opportunity to make the right choice, John Johnson told audience at the Spark 2008 IT Invitational conference this fall. Living with integrity encompasses deliberate decision-making in all aspects of one's life, he stressed, including relationships and business. Johnson is chief information officer for the popular P.F. Chang's China Bistro chain of restaurants.

ASU-RSI: Phoenix Home Prices Continue 'Unprecedented' Decline

KnowWPCarey — Tue, 16 Dec 2008 10:42:35 EST

Housing prices in Phoenix continued their downward march in September, extending a record string of declines that started 19 months ago. Home prices fell 28 percent this September compared with the same month last year, according to the Arizona State University-Repeat Sales Index (ASU-RSI). Karl Guntermann, the Fred E. Taylor professor of Real Estate at the W. P. Carey School of Business, called the extended decline in prices "unprecedented." Since the July 2006 peak of the regional housing market, prices measured by the ASU-RSI have declined over 30 percent.

Regional Economic Forecast: 'It's Going to Get Uglier Before It Gets Better'

KnowWPCarey — Wed, 10 Dec 2008 10:42:35 EST

While businesses and consumers alike have been feeling economic doldrums all year, the National Bureau of Economic Research only recently made it official: the U.S. is in a recession, one that began in December 2007. And the pain -- for the nation as a whole and for Arizona -- will continue in 2009, said economists Lee McPheters and Elliott D. Pollack, speaking at the 45th Annual W. P. Carey School of Business/JPMorgan Chase Economic Forecast Luncheon.

Fear Itself: U.S. Economy Suffering from 'Irrational Despondence'

KnowWPCarey — Wed, 10 Dec 2008 10:42:35 EST

The biggest problem facing the U.S. economy today is not housing or financial markets or employment, according to two of the country's leading economic analysts. It is fear. Joel L. Naroff, president of Naroff Economic Advisors, and Rajnish Mehra, a leading researcher at the W. P. Carey School of Business, were featured speakers at W. P. Carey School's 45th Annual Economic Forecast Luncheon. They underscored the danger present in today's crisis, but also offered hopeful messages that the economy does have underlying strengths, and a shift in public confidence could have the economy growing again sometime next year.

Bob Anderson: Innovating from the Bottom Up at Best Buy

KnowWPCarey — Wed, 03 Dec 2008 10:42:35 EST

In the opening moments of Bob Anderson's presentation at a recent conference sponsored by the Center for the Advancement of Business through Information Technology, the IT executive used the words "innovation" or "innovative" or "innovate" seven times. He has reasons to harp on that theme. Now chief technologist for Best Buy Co., Inc., the nation's largest consumer electronics outlet, Anderson defines innovative thinking as creative, inventive, radical and fearless. And when you're a retailer of products sold by everyone from Sears to Circuit City, coming up with new and better ways to service customers is crucial to survival, he said.

Dave Lewis: Creating the Creativity Economy

KnowWPCarey — Wed, 03 Dec 2008 10:42:35 EST

In Canada, a group of Nike employees meets once a week in the same place at the same time for a creative brainstorming session. But there's an element that keeps the sessions from going stale. The meetings are on a Toronto subway car. "Gray Formica meeting spaces lead to Gray Formica thinking," Dave Lewis told an audience at the Center for Services Leadership at Arizona State University's 19th Annual "Compete Through Service" symposium. The mission of Lewis' company, ?What if! The Innovation Company, is to shake folks out of stale thinking. But Lewis knows that there isn't necessarily a fast train that takes companies to a more innovative and creative place. Creativity that leads to innovation, Lewis said, tends to be more a habit than a destination.

Medicine Gets Personal: Sidney Taurel Discusses Tailored Therapeutics and the Future of the Drug Ind

KnowWPCarey — Wed, 03 Dec 2008 10:42:35 EST

The future of the pharmaceutical industry lies in its willingness to share scientific information, tailor drugs for individual patient groups and have the courage to walk away from some therapies in order to improve outcomes in other areas, says Eli Lilly and Company chairman of the board Sidney Taurel. Addressing the Economic Club of Phoenix recently, Taurel expressed excitement at the possibilities ahead for new ways of developing medicines that cut costs and more precisely target which patients will benefit.

Podcast: The Year of the Recession

KnowWPCarey — Wed, 03 Dec 2008 10:42:35 EST

It's official: The U.S. economy is in recession -- and has been since December 2007, according to the National Bureau of Economic Research. Lee McPheters, director of the JPMorgan Chase Economic Outlook Center and editor of Economy@W. P. Carey, talks about this recession, downturns in general, and what we can expect for a recovery.

Chinese Puzzle: Examining the Implications of Chinese Product Recalls, Part 1

KnowWPCarey — Wed, 03 Dec 2008 10:42:35 EST

In the summer of 2007, after a tumultuous year in which millions of Chinese-manufactured toys and other products were recalled for reasons ranging from high lead content to choking hazards, Chinese officials launched a massive campaign to restore worldwide confidence in the "Made In China" label. However, China's efforts to prevent product recalls haven't seemed to do much, and the roots of the problem -- or even a basic understanding of its scope and causes -- have yet to be defined. W. P. Carey professor of international management Anne Tsui recently organized an Editor's Forum in which leading business scholars examined the problem from various disciplines and perspectives. In a two-part series starting today, Knowledge@W. P. Carey will use the Management and Organization Review (MOR) forum as a jumping-off point to explore some of these questions, and attempt to answer them, through the expert analysis of W. P. Carey faculty and researchers.

Regina Herzlinger Makes the Case for Change in Health Care

KnowWPCarey — Wed, 03 Dec 2008 10:42:35 EST

Regina Herzlinger has been dubbed "the Godmother of Consumer-Driven Health Care," and without question she is a revolutionary in her field. It was Herzlinger who pulled back the curtain to reveal the unraveling of managed care, and who predicted the rise of consumer-driven health care and health care-focused factories. What would this forward-thinker have to say about alternatives to the current single-payer-by-employer health insurance system? Probably not replacing it with a similar single-payer-by-government health insurance system. Herzlinger recently delivered the Second Annual Health Economics and Policy Lecture at the W. P. Carey School.

ASU-RSI: Drop in Phoenix Real Estate Prices Breaks Infamous Record

KnowWPCarey — Tue, 02 Dec 2008 10:42:35 EST

In the late 1980s home prices in Phoenix declined for a grueling 17 straight months before bottoming out in the early 1990s. That downturn pummeled the savings and loan industry, and it set the record for length. In August, however, this dubious record was broken when home prices in Phoenix declined for the 18^th straight month, according to the latest data from the Arizona Sate University – Repeat Sales Index (ASU-RSI).

Innovative Thinking: Meeting Arizona's Infrastructure Needs

KnowWPCarey — Wed, 19 Nov 2008 10:42:35 EST

Building necessary infrastructure is key to Arizona's economic competitiveness, yet realizing that fact may take a change of thinking. "Can we learn that Grade-A infrastructure is in fact not an expense but the basis from which we will be able to have economic competitiveness?" ASU President Michael Crow asked. Leaders discussed the issues at the "Preparing for an Arizona of 10 Million People: Meeting the Infrastructure Challenges of Growth" forum.

U.S. Secretary of Transportation: Dealing with Huge Infrastructure Challenges

KnowWPCarey — Wed, 19 Nov 2008 10:42:35 EST

Facing huge infrastructure needs over the next 25 years, Arizona must find a new way of doing business, according to former U.S. Secretary of Transportation Norman Mineta. In the keynote address at this week's "Arizona 2030" forum, Mineta said that new way of doing business means coming together across political, ideological and regional divides to deal with the state's infrastructure issues. The forum -- cosponsored by Arizona State University, Arizona Investment Council, Thomas R. Brown Foundations and The Communications Institute -- was designed in part to unveil an infrastructure report prepared by researchers at the W. P. Carey School.

'How' Matters More than 'What' in Business ... and in Life

KnowWPCarey — Wed, 19 Nov 2008 10:42:35 EST

"A leading company should be a company of leaders," says Dov Seidman, a consultant whose career focuses on how companies and their people can operate in both a principled and profitable way. Seidman's new book, "HOW: Why How We Do Anything Means Everything … in Business (and in Life)" is a thoughtful and incisive look at why "how" matters more than "what" in business, and how "should" matters more than "can." The bottom line, he says, is that in a fast-changing, hyperconnected and hypertransparent world, success is redefined as a quest for significance.

Passion for Work, Community, Family: Robert Hobbs Sr. Inducted into W. P. Carey School's Hall of Fam

KnowWPCarey — Wed, 19 Nov 2008 10:42:35 EST

One could say Robert Hobbs Sr. charged into the business world when he was in grade school in Phoenix. As a boy, Hobbs had morning and afternoon paper routes near McDowell Road and Seventh Avenue. Later, he kept the paper routes and took on a part-time job in a corner grocery store. And while he was a senior at the W. P. Carey School finishing a degree in marketing, Hobbs was elected president of Sigma Chi Fraternity. That work ethic, which has made Hobbs a lifelong business and civic leader, was recognized this fall with his induction into the W. P. Carey School's Hall of Fame.

The Economic Forecast? Cloudy with a Chance of Showers, at Least until 2010

KnowWPCarey — Wed, 19 Nov 2008 10:42:35 EST

A year ago, economists were talking of a possible recession, but few predicted the severity of the present financial crisis. Possibly to compensate for their failure to foresee the wide-ranging repercussions of the housing crash, they're examining their models daily and forecasting years of doom and gloom ahead. But looking beyond the models, prominent economist Dr. Joel L. Naroff, President of Naroff Economic Advisors, is a little bit more optimistic than most forecasters about 2009. Naroff delivered his 2009 economic forecast at a recent reception in New York where he received the 2008 Lawrence R. Klein Award for Blue Chip Forecast Accuracy.

Video: Infrastructure -- Challenges of Growth

KnowWPCarey — Wed, 19 Nov 2008 10:42:35 EST

Infrastructure is the foundation of an economy: schools, transportation, power plants, etc. Arizona faces challenges meeting current infrastructure needs and preparing for growth. Economists Dennis Hoffman and Tim James of the W. P. Carey School of Business explored these issues at the "Arizona 2030: Preparing for an Arizona of 10 Million People" conference recently. While Arizona presents a dramatic snapshot of the challenge of infrastructure, the issues are not at all unique to the southwest.

Housing Market Continues to Fall -- Will Non-Residential Real Estate Be Next?

KnowWPCarey — Thu, 13 Nov 2008 10:42:35 EST

The U.S. real estate market, which was central to the global financial crisis, remains deeply troubled, and a full recovery could be years away, according to industry experts and analysts at the W. P. Carey School of Business. The problems of real estate and the economy are especially severe in Arizona and other Sunbelt states, where construction is a cornerstone of the local economies. As the housing market continues to fall, non-residential real estate -- which includes offices, retail, warehouses, and other structures -- has remained a bright spot in the national economy, but now there are signs it too is headed for a slowdown.

Sustainable Servers: How IT Can Help Companies Preserve the Environment and the Bottom Line

KnowWPCarey — Wed, 05 Nov 2008 10:42:35 EST

An explosion of electronic data is creating more demand for more storage capacity and for more servers. More servers mean more energy demands, increased costs and a greater impact on the environment. The situation represents an opportunity for IT to play a greater role in helping companies achieve green goals and reduce or contain costs, says Fred Mapp, former Chief Information Officer at AMD and author of "Mapping Information Technology ... to Your Business." Mapp was speaking at the Spark 2008 IT Invitational sponsored by the W. P. Carey School of Business.

Eric Crown: The Swirling Computer Business of the Roaring '90s

KnowWPCarey — Wed, 05 Nov 2008 10:42:35 EST

For alumnus Eric Crown, his induction into the W. P. Carey School's Hall of Fame is sweet vindication. While pursuing a degree in computer information systems, Crown, 46, wrote a paper on a potential mail-order business that would sell parts for the burgeoning computer market. He got a C on the assignment because, he recalls, the professor didn't deem the idea viable. However, two years after his 1984 graduation, Crown started just that business. Today Insight Enterprises, Inc. has clients in 170 countries, counts more than 4,000 employees and notched $4.8 billion in revenues in 2007.

Bringing a Sense of Urgency to Your Business

KnowWPCarey — Wed, 05 Nov 2008 10:42:35 EST

John Kotter knows your organization needs to change. His latest book, "A Sense of Urgency," delves into the how-to required of managers needing to embark on that first step, avoiding pitfalls along the way. Increasing a sense of urgency is the toughest of the steps leading to effective change, and Kotter's new book lays out a road map that will be an eye-opener to middle and top managers who, the author contends, often are blinded to the two main obstacles: complacency and a false sense of urgency.

Unwelcome to America: U.S. Policies Discouraging Overseas Visitors

KnowWPCarey — Wed, 05 Nov 2008 10:42:35 EST

America is yanking in the welcome mat for foreign travelers. Thanks to government policies that make visas difficult to obtain and that intimidate visitors at U.S. Customs, would-be tourists are taking their travel money and going elsewhere, said Roger Dow, president and CEO of the Travel Industry Association. Though a weak dollar has made the United States a bargain internationally, the country has lost 2 million visitors from overseas since 2000, Dow told the Economic Club of Phoenix recently.

Using Metrics to Enhance Purchasing

KnowWPCarey — Wed, 05 Nov 2008 10:42:35 EST

Detailed metrics not only help purchasing departments measure and analyze performance -- they provide data that can spur organizational and procedural changes, and help companies proactively prepare for the unexpected.

Podcast: America's Six Unstoppable Trends

KnowWPCarey — Wed, 05 Nov 2008 10:42:35 EST

In the midst of one of the worst financial crises the country has seen in decades, one man is optimistic about America's future. Barry Asmus is senior economist at the National Center for Policy Analysis, a non-profit, non-partisan public policy research organization. Asmus is scheduled to be the opening speaker for the Compete Through Service Symposium at the W. P. Carey School of Business. Here he talks about America's economic future and its six unstoppable trends.

Opinion: Market Failure? 'I don't think so'

KnowWPCarey — Wed, 05 Nov 2008 10:42:35 EST

Many economists and policy makers are stating that the current financial crisis demonstrates that markets and capitalism are flawed and must be regulated and controlled, if not destroyed. But to make the argument requires a willful disregard of facts, according to William Boyes, a professor of economics at the W. P. Carey School of Business. "The role of bankers and other market players in causing the current crisis is undeniable," he writes, "but none of them would have undertaken their actions had it not been for the massive role played by government."

Hot, Flat and Crowded: It's Not About the Whales Anymore

KnowWPCarey — Wed, 22 Oct 2008 10:42:35 EST

Best-selling author Thomas Friedman issues a "Code Green" for the planet in his latest call to action, "Hot, Flat and Crowded: Why We Need a Green Revolution and How It Can Renew America."

Health Reform and the Election, Part 5: Covering the Uninsured

KnowWPCarey — Wed, 22 Oct 2008 10:42:35 EST

About 46 million Americans -- 15 percent of the population -- do not have health insurance, according to the latest U.S. Census data. Approximately $100 billion would be needed to provide them with coverage. Can we afford it? And where would the money come from? Experts discuss the issues in Part 5 of the Knowledge@W. P. Carey series on health care and the election.

Facing a Weakening Labor Market, It's Time to Focus on the 'Real Economy'

KnowWPCarey — Wed, 22 Oct 2008 10:42:35 EST

We've begun to feel the pain of a recession in the real economy and that pain will get worse before it gets better. So far in 2008, job losses have averaged about 85,000 per month, but in September the number was 159,000. W. P. Carey economics Professor Lee McPheters says that we could be in for at least 6-9 more months of job losses. Says McPheters: "My expectation is that there will be some months in the early part of 2009 with job losses much greater than the 159,000 jobs lost in September, possibly double that amount."

Health Reform and the Election, Part 3: One Candidate Would Mandate Employer-Provider Insurance, One

KnowWPCarey — Wed, 22 Oct 2008 10:42:35 EST

In the third and final presidential debate on October 15, Senators Barack Obama and John McCain spent some time discussing health care -- an issue which, in spite of increasingly dominant concerns about the economy -- still seems to matter a great deal to American voters. In Part 3 of a series on health care reform and the election, experts at the W. P. Carey School separate fact from politics in the issues surrounding employer mandates.

The Devil's in the Details of the Financial Market Crisis, and He's Wearing a Green Eyeshade

KnowWPCarey — Wed, 22 Oct 2008 10:42:35 EST

In the last month, financial markets came as close to collapsing as they have since the Great Depression, and the root of their woes was frozen credit markets. The crisis sparked several weeks of furious and futile improvisation by U.S. regulators and lawmakers. By early this week, the proposal -- nicknamed the Paulson plan after Treasury Secretary Hank Paulson -- appeared to be bringing relief, said financial experts at the W. P. Carey School of Business and in the investment business. Even so, only time will tell whether Paulson's plan can solve the underlying problems, the experts said. As always, the devil's in the details, and this time around, he's wearing a green eyeshade.

Health Reform and the Election, Part 4: Challenges Posed by Healthcare's Different Kind of Market

KnowWPCarey — Wed, 22 Oct 2008 10:42:35 EST

The market for health insurance is different from other markets. Government is heavily involved and would become more so under reform plans now being debated. Information often is shielded from participants, whose behavior can be far from transparent. Experts agree that health insurance markets need to be closely watched, as health care reform assumes a place on the national agenda after a new President and Congress are elected in November. Part 4 of our series on health care issues in the presidential election examines this complex market.

ASU-RSI: Duration of Real Estate Price Decline Matches the 17 Month Record

KnowWPCarey — Mon, 20 Oct 2008 10:42:35 EST

Back in the early 1990s, the Phoenix metro area -- like the rest of the country -- was suffering through a profound real estate recession and house prices declined for a record 17 straight months. Like Lou Gehrig's record for consecutive games played, it was thought it would never be equaled. But, the latest data for July shows a larger decline from one year prior, making it the 17^th month in a row home prices have declined in the Valley of the Sun.

Podcast: Framing the Issue -- Did 'Bailout' Label Skew Debate?

KnowWPCarey — Wed, 08 Oct 2008 10:42:35 EST

Secretary Hank Paulson and Fed Chairman Ben Bernanke learned a lesson from Media Relations 101 the hard way when they introduced a plan of action to stem the financial crises and did not suggest a catchy name for it. Left without a headline phrase, the media came up with its own: "Bailout." The negative connotations associated with "bailout" contributed to its initial defeat in the House of Representatives. Management professor Gerry Keim, who studies the relationship between business and government, uses the episode to talk about the importance of choosing words carefully when framing an issue.

Business Groups in China: Is Qiyejituan Membership a Guaranteed Advantage?

KnowWPCarey — Wed, 08 Oct 2008 10:42:35 EST

The "qiyejituan" -- collections of companies and firms that are joined via social and economic ties -- have been playing an increasingly vital role in China's economy, just as the "chaebol" have been so important to Korea and the "keiretsu" to Japan. Membership in these groups can help firms compete in the global marketplace, but a research team led by the W. P. Carey School's Robert Hoskisson has discovered that this may not always be the case. Some business groups -- specifically those subject to heavy government intervention, or those managed by individuals coming from the central-government tradition -- actually stunted innovation.

Grappling with a Global Confidence Crisis

KnowWPCarey — Wed, 08 Oct 2008 10:42:35 EST

It's been called a crisis of confidence. It started with bad real estate loans and highly leveraged bets on those loans. Now it has frozen credit markets. Banks aren't lending to each other. Businesses can't get the short-term loans they need to finance day-to-day operations. If it stays this difficult to access credit, the financial crisis threatens to become a real economic one. And it's global. Welcome to what Thomas Friedman calls the "flat" new world.

The Profile of a Top Entrepreneur: Commitment to Quality, Customer Service and Employees

KnowWPCarey — Wed, 08 Oct 2008 10:42:35 EST

What are the characteristics of companies that succeed, even in tough times? The stories behind the five winners of this year's Spirit of Enterprise Awards are instructive. These companies are focused on quality, dedicated to excellent customer service, and committed in a deep way to their employees and communities. The mission of the Spirit of Enterprise Center, which presents the awards, is to honor, assist and educate entrepreneurs. The 12^th Annual Spirit of Enterprise Awards does just that.

Good Intentions, Iffy Choices Paved Road to Credit Crisis

KnowWPCarey — Wed, 08 Oct 2008 10:42:35 EST

It's said the road to Hell is paved with good intentions, and some people sweating through the credit-market meltdown might agree. Underlying the wreckage are decades of regulatory and legislative decisions that opened the door to today's financial woes. Some policy choices were high-minded, some were deregulatory, and some just seemed like a good idea at the time. But, with passage of the Troubled Asset Relief Program (TARP), we're on the right track now, aren't we? Maybe not. According to Anthony Sanders, professor of finance at the W. P. Carey School of Business, TARP falls short as a deterrent to future financial troubles.

Health Reform and the Election, Part 2: Does Choice Have a Place?

KnowWPCarey — Wed, 08 Oct 2008 10:42:35 EST

There's no doubt about it: Americans want choices. In education. In mail services. And in health care, too -- even if the government is picking up the tab. In Part 2 of a series on health care reform and the election, experts at the W. P. Carey School and in the broader community discuss the issue of a single-payer health care system versus one that offers individuals the power to choose from a variety of insurers.

Bursting the Bubble: Author Disputes Greenspan's Mastery of the Financial Universe

KnowWPCarey — Wed, 08 Oct 2008 10:42:35 EST

Many a complimentary biography has been written about "The Maestro," former Fed Chairman Alan Greenspan, but the title of William A. Fleckenstein's book "Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve" makes it clear that he blames Greenspan for the current extreme discord in the economy. Fleckenstein lays out a case that Greenspan could have and should have known that his actions helped to create and to worsen the tech bubble of 2000 and the housing bubble that has dominated the financial and economic news in 2007 and 2008. The result is the painting of Greenspan as more Mr. Magoo than economic visionary.

College Cheating Is Bad for Business

KnowWPCarey — Wed, 24 Sep 2008 10:42:35 EST

In an age where a new cheating/corruption scandal is front-page news nearly every day -- think Enron, Barry Bonds, Eliot Spitzer, and Marion Jones for starters -- it is perhaps not surprising that dishonesty is a problem on most college campuses. Academic dishonesty, which runs the gamut from plagiarizing to purchasing papers and theses, sharing answers on assignments, taking another's exam, and failing to do work for a team project, is, unfortunately, part of the college experience for many students today. In a recent survey of 5,331 graduate students at 32 universities, 56 percent of the business students and 47 percent of the non-business students admitted to cheating one or more times in the past year. These numbers are an ominous sign for the academic and business communities, say experts at the W. P. Carey School of Business.

Health Reform and the Election, Part 1: McCain and Obama Promise Lower Health Care Costs, But Are Th

KnowWPCarey — Wed, 24 Sep 2008 10:42:35 EST

Forty-seven percent of registered voters say that health care is an extremely important consideration in their vote for president, according to a June CNN/Opinion Research Corporation Poll. Not surprisingly, then, both presidential candidates have outlined proposals to reform the nation's health care system. Central to each proposal is a plan to lower health care costs. In the first part of a series about health care issues and the election, experts say actually achieving lower health care costs (or even slower increases in costs) may be easier said than done.

Herman Cain: Becoming the 'CEO of Self'

KnowWPCarey — Wed, 24 Sep 2008 10:42:35 EST

Herman Cain believes he has one gift that has allowed him to attain every goal he's set for himself: the ability to inspire. "Great leaders inspire others," the conservative radio talk show host and former president of Godfather's Pizza told about 60 business students last week in a speech hosted by the W. P. Carey School of Business. "But more importantly, great leaders inspire themselves."

'Founders at Work' Chronicles the American Idols of Startups

KnowWPCarey — Wed, 24 Sep 2008 10:42:35 EST

Tim Brady, founder of Yahoo … Mitch Kapor, founder of Lotus Development … Max Levchin, founder of PayPal … Steve Wozniak, founder of Apple. All are legends in the technology world. But once upon a time, they were regular people. Where did they get their 'big ideas'? How did they muster the confidence to convince investors to back them? What made them overcome incredible odds to become rich and successful? "Founders at Work: Stories of Startups' Early Days" offers answers to these questions and more. Author Jessica Livingston is a founding partner at Y Combinator, a seed-stage venture firm and organizer of Startup School. Her research and her interviews with 32 startup founders of successful technology firms yields a glimpse of the earliest days of startups that have become part of today's business lexicon.

Diagnosing the Adoption of IT to Make Health Care Healthier

KnowWPCarey — Wed, 24 Sep 2008 10:42:35 EST

Last year, Dennis Quaid's anguished visage was splashed across the tabloids. Like many Hollywood stories, this one revolved around drugs. But it wasn't the usual A-list overdose or contraband possession. Instead, Quaid's newborn twins were mistakenly given two doses of Heparin rather than Hep-lock. The dosage was a thousand times stronger than it should have been, nearly killing the babies. For anyone who's ever had a doctor handwrite a prescription and marveled at its illegibility, the issues that Quaid faced and which Michael F. Furukawa, an assistant professor in the School of Health Management and Policy at the W. P. Carey School of Business, addresses seem self-evident. But the problem is not just a pharmacist dispensing an incorrect drug or a nurse administering too much of the right one. The health system abounds with medical mistakes. Some have minor effects; some are fatal. Together, they add up to a very real problem.

Paulson and Bernanke's Banking Bailout: The Devil's in the Details

KnowWPCarey — Wed, 24 Sep 2008 10:42:35 EST

Within the span of a week, Treasury Secretary Hank Paulson and Federal Reserve Chairman Ben Bernanke have gone from saviors to Satans. First, their plan for bailing out failing financial companies and thus shoring up a shaky economy was heralded as overdue medicine for a fast-spreading and perilous financial flu. Then, within days, it came to be lambasted as a gift to their friends on Wall Street and a power grab by the Bush administration. Financial experts at the W. P. Carey School of Business say Paulson and Bernanke's plan is neither as divine as its early proponents claimed nor as dastardly as its detractors now allege. It is, they say, necessary to reassure skittish investors and bankers around the world. But as is so often the case when Washington meddles in markets, its ultimate success will depend on critical details that are still being hammered out.

A Business Owner Who Survived the World Trade Center Attacks Writes About Preparing for Disaster

KnowWPCarey — Wed, 10 Sep 2008 10:42:35 EST

September 10, 2001, was the first and last business day for a small pizza parlor in lower Manhattan; without business interruption insurance, the owners did not have enough funds to cover fixed expenses until they could repair and reopen the restaurant following the 9/11 attack on the World Trade Center. "Be Prepared," the Boy Scout motto, packs a lot of wisdom for small businesses, writes contingency planning expert Donna Childs. In her new book, "Prepare for the Worst, Plan for the Best: Disaster Preparedness and Recovery for Small Businesses," Childs explains what small businesses should do to survive a crises.

Podcast: Lee McPheters on the Economy -- Is This the Bottom or Are We Still Falling?

KnowWPCarey — Wed, 10 Sep 2008 10:42:35 EST

Unemployment went up in August, and in the floundering real estate sector, qualified borrowers with prime loans who are having trouble making payments are beginning to slip into foreclosure. Consumer confidence improved a bit, but is still weak. Is this the bottom or are we still falling? W. P. Carey economist Lee McPheters comments.

Public Utility Regulation, Planning for Long-term Costs, and Transitions to Cleaner Energy Technolog

KnowWPCarey — Wed, 10 Sep 2008 10:42:35 EST

Candidates for public utility commissions are on ballots across the country this fall. Those who win seats will determine the regulations and rates that govern public utility companies. It's an important job. Utility infrastructures are a major factor in determining whether a city or region is economically competitive. The companies responsible for infrastructure are also facing the technological changes required to provide a clean and sustainable energy supply. How do the utility commissions affect the ability of the utility companies to respond to these challenges?

Voters Respond to Economic Woes

KnowWPCarey — Wed, 10 Sep 2008 10:42:35 EST

Although originally intended for campaign insiders, "It's the economy, Stupid" became an important slogan during Bill Clinton's first presidential run. That's not surprising. Several studies have shown that, indeed, voters are sensitive to prosperity and, especially, to economic setbacks when they're picking a president. But, are some voters more sensitive than others? Does the local economy matter more to voters than the national one? How far back do voters' memories go when looking at economic data? These are some of the questions behind research conducted by Jonathan Ketcham, an assistant professor and economist at the W. P. Carey School of Business.

First-Class Cloud: Google Opens Its Computing Power to University Students

KnowWPCarey — Wed, 10 Sep 2008 10:42:35 EST

Corporations want employees to "think big." Some want them to "think many," as well. Servers, that is. We're talking about thousands of servers linked together and delivering the power of "cluster" or "cloud computing." That's what people are calling the computing model that takes vast amounts of computational horsepower, produced by many machines working in parallel, and makes that resource available via the Internet or some other network. This kind of "Internet-scale" computing is what Google does -- and now the Academic Cluster Computing Initiative (ACCI), a program offered jointly by Google and IBM, is making such an environment accessible to academic researchers. This fall, students and faculty at Arizona State University are becoming part of this Google/IBM effort to bring cloud computing to college campuses.

The Faith-Based Corporation: Organizational Sacralization and Sacrilege

KnowWPCarey — Wed, 10 Sep 2008 10:42:35 EST

From Google to Jet Blue and Patagonia to Trader Joe's, companies of all kinds are attempting to craft cultures and identities so idealistic that they could rightly be called "sacred." These companies are espousing these sacred ideals, values, beliefs, goals, behaviors and processes not only to attract and motivate employees and stakeholders but also as means to distinguish themselves from their competition. In fact, some say companies that take the sacred route may be able to offer something nearing spiritual fulfillment to customers and employees. Recently, three W.P. Carey management researchers -- Professors Blake Ashforth and Kevin Corley and doctoral candidate Spencer Harrison -- set out to investigate what might be behind this trend.

ASU-RSI: Phoenix Home Prices Continue Their Descent

KnowWPCarey — Wed, 10 Sep 2008 10:42:35 EST

The fall in housing prices continues, with the latest data from the ASU Repeat Sales Index (ASU-RSI) showing that in June home values had dropped 22.8 percent compared to June 2007. That makes four months of double-digit declines in year-over-year price comparisons. The only bright light is that the rate of decline is slowing.

Rule-Breaking Entrepreneurs Share Stories of Success

KnowWPCarey — Wed, 27 Aug 2008 10:42:35 EST

In 1949 when Shirley Schmitz graduated from Arizona State University women leaders were an anomaly in business. Now 80, she is charismatic and sharp, and could easily fill a book with insights earned during her own high-octane career. But instead of dwelling only on how she made it, Schmitz convinced 11 other entrepreneurs -- all brash rule-breakers from a range of industries -- to spill the beans, too. Her book, "Guts, Imagination, Vision; Conversations with Innovators-Changemakers," will be launched at the Spirit of Enterprise Award luncheon on September 25.

Podcast: The Nickel and Dime Approach -- Are Those New Airline Fees a Smart Strategy?

KnowWPCarey — Wed, 27 Aug 2008 10:42:35 EST

As higher fuel costs gobble up airline profits, the carriers are imposing new fees on passengers in an attempt to make up the difference. William A. Verdini, chairman of the supply chain management department of the W.P. Carey School of Business, wonders if this is a smart strategy.

'Sway' Answers the Age-Old Question: 'What Was I Thinking?'

KnowWPCarey — Wed, 27 Aug 2008 10:42:35 EST

Brothers Ori Brafman and Rom Brafman followed different paths in life, but they decided to collaborate on a book when they realized that Ori, with his MBA, and Rom, with a Ph.D. in psychology, kept running into the same dynamic puzzle through their work: What makes smart people make irrational decisions? In "Sway: The Irresistible Pull of Irrational Behavior," the brothers Brafman attempt to explore several of the psychological forces that derail rational thinking. Some of the questions they address include: How do these forces creep up on us? When are we most vulnerable to them? How do they affect our careers, businesses, personal relationships? When do they put our finances, or even our lives, at risk? And why don't we realize when we're getting swayed?

No Anniversary Party for Controversial Cross-Border Trucking Program

KnowWPCarey — Wed, 27 Aug 2008 10:42:35 EST

Congress and President Bush appear to be on a collision course over U.S.-Mexico trucking, but most likely trucks will continue to traverse the border, fostering the flow of international commerce, according to Arnold Maltz, a professor of supply chain management at the W. P. Carey School of Business. At issue is a small but controversial one-year pilot project that has allowed Mexican trucks to travel throughout the United States, although most of such travel has been in the border states. The pilot project ends September 6, and strong opposition to its continuation has been expressed in Congress by Democrats concerned about American jobs and highway safety, and by Republicans concerned about security and immigration issues.

Analysis: Kevin J. Dooley Asks Are Political Blogs Predictive?

KnowWPCarey — Wed, 27 Aug 2008 10:42:35 EST

2008 will be remembered for the classic battles between Obama and Clinton and McCain and Obama, but political wonks will also note the historical nature of this presidential campaign because of the profound impact that the Internet and social media have had on the dynamics of the race. Here, Professor Kevin J. Dooley, an expert in web communication, writes about the way blogs fit in the panoply of news and information media and the impact they have on politics.

A Tale of a Whale: Why High Oil Prices May Not Be So Bad After All

KnowWPCarey — Wed, 27 Aug 2008 10:42:35 EST

The sunbathers on the windswept beaches of Nantucket this holiday weekend will have paid a premium price to boat or fly to the quaint and elite resort island 30 miles south of Cape Cod. The cost of oil has pushed marine and aviation fuels to dizzying levels, hiking the tab for what is already a pricey vacation. Whaling wrote the early history of Nantucket, but the rise and decline of the industry also sheds light on the present -- the reasons why Nantucket's vacationers had to pay so much for marine and aviation fuels. Economist Gerry Keim explains that the fundamentals of economics -- the impact of market forces on innovation and industries -- are at work today as they were 150 years ago. Long term, high oil prices may turn out to be not so bad after all.

Standards Deviations: U.S. Financial Accounting Heads for Change

KnowWPCarey — Wed, 27 Aug 2008 10:42:35 EST

The U.S. Securities and Exchange Commission is moving to replace existing rules-based accounting standards with principles-based, international ones in filing requirements. IFRS are the international equivalent to Generally Accepted Accounting Principles (GAAP), which are the standards and rules auditors follow when preparing financial statements in the United States. Since 2005, companies in the European Union have been adhering to IFRS, a circumstance that some feel puts U.S. markets at a disadvantage globally, says Philip Reckers, professor of accountancy at the W. P. Carey School of Business. Among changes to come: Auditors will require dramatic retraining; accounting firms face different legal liability issues; and investors will likely see more footnote disclosures in corporate financial statements.

Smart Services: Customer Focus Turns Technology into Solutions

KnowWPCarey — Wed, 13 Aug 2008 10:42:35 EST

To many participants at the recent Digital Smart Services Leadership Summit hosted by Qualcomm in San Diego, the phrase "smart services" is digital by definition. This new and slightly broader catch phrase covers the field also know as M2M, which means machine-to-machine communications to some or machine-to-man communications to others. But "smart services" refers to more than just the technology that links systems and devices together. Amid all the talk of broadband data rates and RFID (radio frequency identification), marketing Professor Mary Jo Bitner, the academic director of the Center for Services Leadership at the W. P. Carey School of Business, reminded the engineers of what might be called an analog or pre-Internet era definition of smart services: focusing on the customer.

Heads Up, Arizona, Part 5: The Huge Cost of Transportation Infrastructure to 2032

KnowWPCarey — Wed, 13 Aug 2008 10:42:35 EST

The amount of money necessary to build adequate transportation infrastructure in Arizona in the next 25 years -- between $253 billion and $311 billion -- is larger than the bill to build water and wastewater, energy, and telecommunications infrastructure combined, according to a recent report commissioned by the Arizona Investment Council (AIC) and prepared by the L. William Seidman Research Institute at the W. P. Carey School of Business. In the final story of our five-part series, Knowledge@W. P. Carey examines Arizona's growing demand for passenger travel and freight transportation -- and some of the funding mechanisms the state might use to meet that demand.

Helping Others Cook Their Books: It's a Recipe for Disaster

KnowWPCarey — Wed, 13 Aug 2008 10:42:35 EST

Your company's best corporate customer needs help. Earnings are down. You could help that company's revenues look rosier with a sham transaction. And, why wouldn't you? After all, it's not your company's financial statements you're sweetening. You're just bringing a little aid to the table for someone else. Should you play along? No way, says Marianne Jennings, a professor of legal and ethical studies at the W. P. Carey School of Business. Even if your own earnings are for real, you could face criminal charges for aiding another company with "creative" accounting.

Water Cooler Talk Keeps Organizational Culture Real

KnowWPCarey — Wed, 13 Aug 2008 10:42:35 EST

It is a ritual in offices around the country: the morning meet-up. Although employees may have already clocked in and should theoretically be hard at work, they meander over to the coffee pot, fill up a cup and kibitz. In many managers' eyes, such behavior is often filed under the heading of wasted time on the company's dime. "You're here to work. If you want to socialize, do it on your own time!" they might say. Yet, the irony of the situation, says W. P. Carey management Professor Blake Ashforth, is that these social butterflies may very well be adding value to the company. Rather than being grumbled about, such office klatches should be nurtured and encouraged.

Cap-and-Trade: Is a Carbon Market the Best Way To Control Greenhouse Gases?

KnowWPCarey — Wed, 13 Aug 2008 10:42:35 EST

If John McCain and Barack Obama agree on one thing, it's global warming and what to do about it. Both presidential candidates say that a so-called cap-and-trade system of regulation is the best way to stem U.S. emissions of greenhouse gases. Thus it seems inevitable that this country will see a cap-and-trade system, no matter who the next president is. That's good news, says Elizabeth Bailey, a professor of economics at the W. P. Carey School of Business, because cap-and-trade regulation trumps alternatives such as a carbon tax or old-fashioned bureaucratic edicts.

ASU-RSI: Phoenix Home Prices Down More Than 20 Percent from 2007

KnowWPCarey — Wed, 13 Aug 2008 10:42:35 EST

The Phoenix metro area housing market is closing on a record. And unlike the Olympics this has more to do with losing than winning. Back in the 1990 to 1991 years, during the last serious real estate recession that roiled Arizona, house prices on a 12-month basis declined for 17 straight months. "Now at 15 months of declining home prices, the current weakness in the housing market is approaching the duration experienced in the early 1990s," reports Karl Guntermann, the Fred E. Taylor professor of Real Estate at the W. P. Carey School of Business. Guntermann and research associate Alex Horenstein put together the Arizona State University-Repeat Sales Index.

"OBD: Obsessive Branding Disorder": Has Branding Jumped the Tracks?

KnowWPCarey — Mon, 04 Aug 2008 10:42:35 EST

In his book "OBD: Obsessive Branding Disorder," Lucas Conley asserts that branding has gotten out of hand. At it's worst it is deceptive, he writes, and it diverts companies away from real product improvement to focus on superficial details. "Branding offers the satisfaction of a sense of change without the hard work," Conley writes.

Heads Up, Arizona, Part 4: The Cost of Telecommunications Infrastructure to 2032

KnowWPCarey — Wed, 30 Jul 2008 10:42:35 EST

Providing all Arizonans with the gold standard in telecommunications could cost $24-25.2 billion, but what is the dollar value of state-of-the art infrastructure to rival that of world leaders? That could well be priceless. The importance of infrastructure was a key theme that resonated throughout the recent report, "Infrastructure Needs and Funding Alternatives for Arizona: 2008-2032," commissioned by the Arizona Investment Council (AIC) and prepared by the L. William Seidman Research Institute at the W. P. Carey School of Business. But just how much are taxpayers willing to pay and what will they be getting in return? Knowledge @ W. P. Carey examines this question in part four of our five-part series on Arizona's infrastructure needs.

Bottlemania: When the Best Things in Life Are No Longer Free

KnowWPCarey — Wed, 30 Jul 2008 10:42:35 EST

A bottle of water is a simple thing -- unless it isn't. In the 15 or so years since we began spotting celebrities toting their bottles of designer water, Americans have taken up the habit, whether for health reasons or the desire to be seen with the newest exotic label. But a strange new trend began cropping up in recent years. New eco-consciousness in the form of climate change awareness and the privatization of water sources has begun to chip away at bottled water chic. Investigative journalist Elizabeth Royte set out to find the real story behind the bottled-water phenomenon in her book, "Bottlemania: How Water Went On Sale and Why We Bought It." The result is a fascinating story of one of the greatest marketing coups of the 20^th century, as well as a powerful environmental wake-up call.

Oren Harari: Avoiding the Perils of the 'Copycat Economy'

KnowWPCarey — Wed, 30 Jul 2008 10:42:35 EST

What's riskier? Staying in the pack or venturing cautiously out on a limb? Management professor and author Oren Harari showed the audience at a recent conference hosted by the National Association of Women Business Owners the perils of the "copycat economy," then showed them how to rise above commodity hell.

China's Planned Entry into the Service Sector

KnowWPCarey — Wed, 30 Jul 2008 10:42:35 EST

The Chinese don't do things halfway, as anyone who's visited Beijing in the run-up to the Olympics can attest. So when China's economic planners decided recently to begin shifting the foundations of the Chinese economy from manufacturing to services, you might expect the country would embrace the shift with similar single-minded enthusiasm. And on the surface, it has. But as Chinese government policymakers and businesspeople are learning, decreeing a service sector into existence doesn't necessarily make it so. China's move from manufacturing to services was the topic of a panel discussion at the Fifth Annual Shanghai National Accounting Institute-Arizona State University Executive Forum.

Eat, Drink and Go Shopping: Why Thoughts of Death Whet Consumers' Appetite for Stuff

KnowWPCarey — Wed, 30 Jul 2008 10:42:35 EST

In the days and weeks after the Sept. 11 terrorist attacks, millions of Americans came to grips with one undeniable fact: They were going to die. As documented in various media reports, Americans in the wake of those attacks began doing all of the things they had always wanted to do. That included, apparently, a whole lot of shopping. They bought pricy luxury items -- Rolex watches, Mercedes Benz automobiles, high-end clothing -- and stocked up on food and supplies like never before. In her most recent paper, W. P. Carey marketing Professor Naomi Mandel explains how "mortality salience" -- that is, the awareness that one will die -- can directly impact the way we eat, drink and shop.

Podcast: The Trend for Gas Prices

KnowWPCarey — Wed, 30 Jul 2008 10:42:35 EST

Gas prices have been easing downward in the last few weeks, welcome relief for consumers. But what is the outlook going forward? Will prices continue to fall? Dennis Hoffman, director of the L. William Seidman Research Institute at the W. P. Carey School of Business, discusses the forces at work in the market and says yes -- at least for the short term.

Beleaguered Fannie Mae and Freddie Mac: Beacons of Stability

KnowWPCarey — Tue, 22 Jul 2008 10:42:35 EST

President Bush has signed into law a housing package passed by Congress last week that authorizes the Treasury Department to spend federal funds to rescue Fannie Mae and Freddie Mac if necessary. In recent weeks, there's been widespread concern that the mortgage giants, which own or guarantee about half of the nation's mortgages, might be on the verge of collapse. Finance Professors Herbert Kaufman and Anthony Sanders at the W. P. Carey School of Business suggest a very different picture. Rather than faltering, Fannie Mae and Freddie Mac have actually been "beacons of stability" in the mortgage crisis that has roiled U.S. financial institutions of all stripes.

2008 NAWBO Conference: It's a Man's World -- Or Is It?

KnowWPCarey — Wed, 16 Jul 2008 10:42:35 EST

Does the world of business -- in the past dominated by men -- pose any special challenges for women? With one startling exception, a selection of presenters and attendees at the recent annual meeting of the National Association of Women Business Owners told a video crew from Knowledge@W. P. Carey that "yes, it's an issue, but you can overcome it." Here, prominent female business researchers from the faculty of the W. P. Carey School offer their points of view.

The Bear Is Back: Rising Oil Prices Raise Russia's Global Influence

KnowWPCarey — Wed, 16 Jul 2008 10:42:35 EST

Oil, natural gas and the political power of Vladimir Putin have brought Russia back from its precipitous economic collapse in 1998 and left the former communist nation bristling with cash, pride and unprecedented global influence. "Petrostate" by Marshall I. Goldman documents Russia's dramatic 10-year conversion from debt-ridden den of corruption to a cash-rich nation that, still, sports an unseemly underside of brutal power politics.

Jamming Out Web Services? Maybe You Need a Conductor

KnowWPCarey — Wed, 16 Jul 2008 10:42:35 EST

Anyone who's ever watched a jazz ensemble jam knows it's a fluid process. Players have to listen to each other, yield the stage sometimes, take the spotlight every now and then and always stay in sync with the group. The same could be said for the shift to application development that revolves around web services. With service-oriented applications, functionality comes together in "content mash-ups" that unite multiple web services to give users a comprehensive application. Considering that application developers used to look at their task as a start-to-finish process, service-based software development presents managerial challenges, say Haluk Demirkan and Michael Goul, professors of information systems at the W. P. Carey School of Business. They believe the new development model demands new IT positions, and they call one such role "the conductor."

Reconciling Private and Public Objectives through Mechanism Design Theory

KnowWPCarey — Wed, 16 Jul 2008 10:42:35 EST

Complex problems like global warming are difficult to solve because there are so many interests involved -- most of them hidden agendas. Can we ever reasonably expect individuals and institutions to reconcile their self-interest with a widely acknowledged social or political objective? Mechanism design theory may offer a way. Eric Maskin, the Albert O. Hirschman Professor at the Institute for Advanced Study and 2007 Nobel Laureate in Economics, talked about his work in this sub-field of economics at the Fifth Annual Shanghai National Accounting Institute-Arizona State University Executive Forum.

Social Entrepreneurs Develop Cleaner Alternative to African Wood-Burning Stoves

KnowWPCarey — Wed, 16 Jul 2008 10:42:35 EST

On his first trip to Ghana in September 2006, Mark Henderson traveled through countryside that was lush, but obscured with haze. Some of the haze was carried in by the Harmattan -- a dry and dusty West African wind that blows in from the Sahara at that time of year. But the rest, Henderson learned, is produced by the wood- and charcoal-burning stoves that villagers use for cooking. Henderson, professor of engineering at Arizona State University's Polytechnic campus, is co-director of GlobalResolve, a social entrepreneurship program at ASU connecting students with projects designed to improve the lives of the rural poor in developing countries. What if the group could come up with a cleaner alternative to the wood-burning stoves?

ASU-RSI: Phoenix Home Prices Plummet in April

KnowWPCarey — Tue, 15 Jul 2008 10:42:35 EST

The overall price decline for the Phoenix metro housing market took a dramatic, 18 percent leap downward in April, which was unsettling since March numbers were already very weak. Part of the problem has been a wave of foreclosures hitting the market; this tends to dramatically impact average housing prices, says Karl Guntermann, a professor of real estate at the W. P. Carey School of Business.

Podcast: Money and Strategy -- Campaign Finance 2008

KnowWPCarey — Tue, 01 Jul 2008 10:42:35 EST

Since 1980, at least one candidate in every presidential election has been an incumbent president or vice president. This year's race has broken the pattern of incumbent candidacy, but that's not its only first. This is also the first race in the post-Watergate era where one of the candidates -- Barak Obama -- is choosing not to accept public financing for his candidacy. W. P. Carey Associate Dean and faculty member Gerry Keim studies and consults in the area of business and public policy. Recently he discussed this unusual presidential election with Knowledge@W. P. Carey.

It's Not About You: Navigating Cultures in the Global Market

KnowWPCarey — Thu, 26 Jun 2008 10:42:35 EST

It's important to understand the differences between cultures in order to succeed when doing business across cultural lines, said diversity and inclusion expert Christine French, speaking at the annual meeting of the National Association of Women Business Owners (NAWBO). Even if you are not doing business outside your country, your customers without doubt come from a range of cultures. French is the founder and president of Phoenix-based Global Diversity Consulting LLC. "My mantra is this: it's not right or wrong, it just is," she said. "How you deal with it can make a difference. Don't judge."

Failure Is an Option: How Learning from Setbacks Can Lead To Success

KnowWPCarey — Thu, 26 Jun 2008 10:42:35 EST

The inspiring expression, "failure is not an option" reportedly evolved from a statement by Jerry C. Bostick, a flight controller who helped bring the space-stranded astronauts of Apollo 13 safely back to earth. While the mindset behind it -- to never give up -- still applies, the adage itself does not fit the innovative, mutable environment most businesswomen face today, according to entrepreneur Rita Davenport. Davenport was speaking at the NAWBO/Wells Fargo Trailblazers Award luncheon.

Exit Strategy: Preparing for the Sale of Your Business

KnowWPCarey — Thu, 26 Jun 2008 10:42:35 EST

Small-business owners say they love the freedom, flexibility and earning potential of working for themselves. But Joel Martin, the former owner of a $20 million New York-based advertising agency, said no one should go into business without an exit plan. Even if you've only begun your venture, there are ample ways to prepare for its sale, she told members of the National Association of Women Business Owners (NAWBO), who were in Phoenix for the group's 30th annual national meeting.

Lessons From the Helm: Women Heads of State on Leadership

KnowWPCarey — Thu, 26 Jun 2008 10:42:35 EST

Less than a week after Hillary Clinton announced that she was suspending her bid for the Democratic presidential nomination, Laura Liswood tossed one of the central issues of Clinton's campaign out to an audience of women business owners: What does it take to make a world leader? And more pointedly, what distinguishes male leaders from female leaders? Liswood is the founder and secretary general of the Council of Women World Leaders. Her audience was some 800 members of the National Association of Women Business Owners (NAWBO) in Phoenix for the group's 30th annual national meeting.

Video: Women Entrepreneurs Discuss Challenges and Opportunities

KnowWPCarey — Thu, 26 Jun 2008 10:42:35 EST

Women who become entrepreneurs don't miss the corporate glass ceiling, but while some women business owners say that they do not encounter gender bias in the business world, others complain that they have to demonstrate an extra level of excellence and competence to men and women alike. At the 2008 National Association of Women Business Owners (NAWBO) conference held in Phoenix, Knowledge@W. P. Carey asked women entrepreneurs to talk about their challenges and opportunities, and share their thoughts on gender-based conferences.

Ushering In China's Service Revolution

KnowWPCarey — Thu, 26 Jun 2008 10:42:35 EST

China is no stranger to revolution, so it's hardly surprising that the country's business leaders and academics are talking about an approaching service revolution that will transform the manufacturing behemoth into a leading global services provider. "The future of China is services," said Gary Bridge, senior vice president of Cisco Systems, to a packed and enthusiastic Shanghai audience at the recent inaugural "Creating Value Through Service" symposium organized by the Center of Service Marketing and Management at Fudan University and the W. P. Carey School's Center for Services Leadership.

Enjoy the Ride: Harley-Davidson's User Community

KnowWPCarey — Thu, 26 Jun 2008 10:42:35 EST

User communities, usually associated with technology products, help customers connect with each other and the brand. User communities are not just for computer products, however. An exceptional example of developing and sustaining an active, dynamic user community is Harley-Davidson Motorcycles. Harley Executive Ron Hutchinson outlined the motorcycle company's user community and its role in entering the China market at the recent "Creating Value through Service" symposium in Shanghai. The event was organized by the W. P. Carey School's Center for Services Leadership and the Center of Service Marketing and Management at Fudan University.

Employees First: Strategies for Service

KnowWPCarey — Thu, 26 Jun 2008 10:42:35 EST

The customer is king, an old service mantra says. But today a few industry leaders argue the employee, not the customer, is most important. "Take great care of your employees and they will take great care of your customers," said Mike Jannini, Executive Vice President of Marriott International, at the "Creating Value Through Service" symposium. The event was organized by the W. P. Carey School's Center for Services Leadership and the Center of Service Marketing and Management at Fudan University.

Building Loyalty through Customer Experience

KnowWPCarey — Thu, 26 Jun 2008 10:42:35 EST

While most companies agree on the importance of a loyal customer base, it remains an elusive goal. Many companies that track customer satisfaction quickly become frustrated and sometimes abandon loyalty efforts, according to Dr. Larry Crosby, Chief Loyalty Architect at global research and consultancy Synovate. "I'm happy to say there is a new loyalty management concept in town and that's the notion of the customer experience," said Crosby at the recent "Creating Value Through Service" symposium in Shanghai. The event was organized by the W. P. Carey School's Center for Services Leadership and the Center of Service Marketing and Management at Fudan University.

America's Other Health Care Gap: Public Perception vs. Reality

KnowWPCarey — Thu, 19 Jun 2008 10:42:35 EST

Ask U.S. consumers about their satisfaction with the existing health care system, and up to 80 percent say major fixes or even a complete overhaul are overdue. But they may not understand the complexities of health care reform, says Marjorie Baldwin, economist and director of the School of Health Management and Policy at the W. P. Carey School of Business. Baldwin is one of a growing number of well-regarded economists who say there is a vast gap between public perception and reality when it comes to what's wrong with health care -- and how to fix it.

No Secrets Here: 'Inspired Marketing!'

KnowWPCarey — Wed, 18 Jun 2008 10:42:35 EST

Joe Vitale's latest book talks about the marketing power of making emotional connections with buyers. Fans will find an assortment of time-honored marketing principles wrapped up in New Age feel-good. But haven't we heard them before?

Heads Up, Arizona, Part 3: The Cost of Energy Infrastructure to 2032

KnowWPCarey — Wed, 18 Jun 2008 10:42:35 EST

Building the infrastructure necessary to meet Arizonans' rising demand for energy will cost between $74 and $87 billion (allowing for inflation) over the next 25 years. But how to pay those costs -- and exactly what type of infrastructure to build -- is up for debate. This is the third of five stories on Arizona's infrastructure needs over the next 25 years, based on a recently-released report by the L. William Seidman Research Institute at the W. P. Carey School of Business.

ASU-RSI: Phoenix Home Prices Decline by Double Digits

KnowWPCarey — Wed, 18 Jun 2008 10:42:35 EST

There's trouble in paradise -- housing troubles to be exact. In March, for the first time ever, home prices in the overall Phoenix metro area declined by double digits. The Arizona State University-Repeat Sales Index (ASU-RSI), which looks back three months to March, showed that average home prices dropped 13 percent, a sharp difference from the 9.3 percent drop reported in February. This current downturn is often compared to the last great real estate recession that walloped the Phoenix metro area in the early 1990s, says Karl Guntermann, professor of real estate at the W. P. Carey School of Business.

Bouncing Back from Back Pain: Workers' Reports Can Predict Disability Duration

KnowWPCarey — Wed, 18 Jun 2008 10:42:35 EST

Back pain is the most common and costly occupational disability in the United States; it is also among the most difficult conditions to diagnose. Using data compiled from five employers in 37 states, researchers at the W. P. Carey School of Business have been trying to unravel some of the mysteries of back pain and disability. One important conclusion: Overall health -- especially mental health -- appears to have a lot to do with how successful a worker is at resuming his or her job after a bout of back pain.

Study Recommends a 'Balanced Portfolio' of Power Sources for Fast-Growing Arizona

KnowWPCarey — Wed, 18 Jun 2008 10:42:35 EST

Arizona's policymakers face crucial decisions about how to ensure that future power needs are met for the nation's second-fastest growing state. The best way to assure adequate power at reasonable rates is "a balanced portfolio" of power generation using coal, natural gas, nuclear and alternative energy sources, according to Timothy Considine, a professor of natural resources economics at Pennsylvania State University. Considine was speaking at the "Powering Arizona: Planning for the Future" forum, presented by The Communications Institute with sponsorship from Arizona State University, the W. P. Carey School of Business and the Thomas R. Brown Foundation.

A Fossil-Fueled Future: Growing Oil Dependence Puts U.S. on a Slippery Slope

KnowWPCarey — Wed, 18 Jun 2008 10:42:35 EST

Consumers in the United States who dislike $4.00-a-gallon gasoline had better get used to it. Despite 35 years of talking about the United States becoming energy independent, the U.S. is more dependent than ever on foreign oil -- and there's no end in sight. "The future as we look out at the next 25 to 50 years will be dominated by oil," said Joseph P. Kalt, professor of political economy at Harvard's John F. Kennedy School of Government. Kalt delivered his assessment of the future of global energy markets on June 11 during a forum called "Powering Arizona: Choices and Trade-Offs For Electricity Policy." The forum was presented by The Communications Institute with sponsorship from Arizona State University, the W. P. Cary School of Business and the Thomas R. Brown Foundation.

Podcast: Are Self-Service Technologies Making Your Business Better?

KnowWPCarey — Wed, 18 Jun 2008 10:42:35 EST

Self-service technologies, which automate routine interactions between companies and customers, are a source of convenience and efficiency to both parties -- until something goes wrong and the customer cannot make the system work. Many companies should be focusing more closely on the overall customer experience, says Michael Goul, a professor of information systems and a researcher at the Center for Advancing Business Through Information Technology. Curiously, here's a case where businesses could learn something from government!

Challenging Long-Held Assumptions about Workplace Friendships

KnowWPCarey — Wed, 04 Jun 2008 10:42:35 EST

You may have watched enough Oprah shows to realize that friendship is good for the soul. Now, the acclaimed Gallup research organization has found that friendships help you love your job. Tom Rath, who leads Gallup's Workplace and Leadership Consulting worldwide, has published years of research in a fascinating book, "Vital Friends: The People You Can't Afford to Live Without." Offering anecdotes of real-life subjects and statistics to back up the stories, Rath tells us that friends at work are not only nice to have -- they are essential to employees' happiness, engagement and productivity on the job.

Implementing Collaborative Communities: Three Case Studies

KnowWPCarey — Wed, 04 Jun 2008 10:42:35 EST

Collaboration is not a new concept, and companies have no trouble imagining the gains to be had from collaborating within the firm, with suppliers and with customers: creativity, productivity, profits. The technology tools already exist to make it happen. But how do you get started? Three case studies from "Achieving Innovation through Collaboration," a symposium hosted by the W. P. Carey School's Center for Advancing Business through Information Technology, highlight collaboration technologies that are transforming how individuals, organizations and industries operate.

Video: Collaborative Technology Poses Challenges for Businesses

KnowWPCarey — Wed, 04 Jun 2008 10:42:35 EST

Collaborative technology can advance business through innovation if it can be managed, translated and used creatively. At the "Achieving Innovation through Collaboration" symposium, hosted by the Center for Advancing Business through Information Technology at the W. P. Carey School of Business, Knowledge@W. P. Carey talked to presenters about challenges for businesses that are using collaborative technologies.

Data for Decision-Makers: Arizona Indicators Project Provides Accessible Information on the Web

KnowWPCarey — Wed, 04 Jun 2008 10:42:35 EST

Public policy-makers and voters need sound, relevant data when making decisions, yet accessing information can be difficult, and often costly. But a national trend to use technology and innovative public and private funding is beginning to change all that. One example is the Arizona Indicators Project (AIP), a Web site that provides a useful, functioning warehouse of information. The idea is to make it easier for Arizonans to make informed decisions, according to Tom Rex, associate director of the Center for Competitiveness and Prosperity Research, a unit of the W. P. Carey School of Business.

Heads Up, Arizona, Part 2: The Cost of Water and Wastewater Infrastructure to 2032

KnowWPCarey — Wed, 04 Jun 2008 10:42:35 EST

The cover of the New York Times magazine last fall showed an old, disabled speed boat lying on a barren, cracked expanse of earth -- which used to be covered with water. The title read "The Perfect Drought: Will population growth and climate change leave the West without water?" The story echoed a warning that many observers have intoned of late: that a decade-long drought is just the beginning of painful water shortages in Arizona. The fast-growing state is likely running out of water, they say. But a recently-released report came to a very different conclusion -- one supported by a wide variety of water resource experts. Knowledge@W. P. Carey explores the report's findings in the second of our five-part series on Arizona's infrastructure needs.

Cloud Computing: The Evolution of Software-as-a-Service

KnowWPCarey — Wed, 04 Jun 2008 10:42:35 EST

The next big upgrade to your corporate systems department may be something you will use but never see -- "cloud computing," the next step in the evolution of software-as-a-service (SaaS) technology. As with SaaS, cloud-computing customers tap into computing resources off-site and hosted by another company. The difference is scale. Cloud computing represents a "much larger-scale implementation," says Haluk Demirkan, professor of information systems at the W. P. Carey School of Business. "Now we're talking about thousands of computers" linked together via the Internet or some other network, he explains.

Heads Up, Arizona, Part 1: The High Cost of Getting Ready for Growth

KnowWPCarey — Wed, 04 Jun 2008 10:42:35 EST

Arizona's population has ballooned from 2.7 million in 1980 to 6.5 million in 2007. By 2032, the state will have welcomed even more new residents -- 4.2 million -- for a total of nearly 11 million. How the state will accommodate that growth was the focus of a recent report, "Infrastructure Needs and Funding Alternatives for Arizona: 2008 to 2032," commissioned by the Arizona Investment Council (AIC) and prepared by the L. William Seidman Research Institute at the W. P. Carey School of Business. Part one of our five-part series provides an overview of the challenges and opportunities the state faces in meeting its infrastructure needs over the next 25 years.

Video: Industry Leaders Discuss What's on the Horizon for Collaboration

KnowWPCarey — Wed, 21 May 2008 10:42:35 EST

Collaborative technology is continuing to evolve -- fostering innovation, connecting experts and creating relationships, between companies and their customers. At the "Achieving Innovation through Collaboration" symposium, hosted by the Center for Advancing Business through Information Technology at the W. P. Carey School of Business, Knowledge@W. P. Carey talked to presenters about the most exciting developments on the horizon for collaboration.

Podcast: Digital Management Solutions Are Basic Competitive Necessity

KnowWPCarey — Wed, 21 May 2008 10:42:35 EST

Digital universe. Exabytes. Data fluidity value. Master data management solutions. This is the language of the future of business. As the amount of data companies attain and store grows, so too must the ability to deal effectively with this digital avalanche. Michael Goul is a professor of information systems at the W. P. Carey School of Business. Here, he discusses how businesses will have to learn to manage unprecedented amounts of data as a means of gaining a competitive edge.

In Today's Process-Driven Workplace, Collaboration Is King

KnowWPCarey — Wed, 21 May 2008 10:42:35 EST

"The in-box culture is dead," says Evan Rosen in his new book, "The Culture of Collaboration: Maximizing Time, Talent and Tools to Create Value in the Global Economy." This may come as a surprise if you're one of those people who start work every day facing 500 e-mails begging ASAP replies. If, however, your company embraces a collaborative culture, those 500 e-mails can be addressed in minutes or even seconds using the appropriate tools of collaborative technology. This book is not for the casual reader, but if you are committed to understanding exactly how and why collaborative tools will motivate your employees and drive your business, this is the book for you.

ASU-RSI: Phoenix Housing Prices Continue to Fall

KnowWPCarey — Wed, 21 May 2008 10:42:35 EST

Arizona's most severe real estate downturn began in the late 1980s and stretched deeply into the next decade. At the abyss, home prices in the state had declined (on a repeat-sale basis) for a record 17 straight months. The current economic slowdown has resulted in a similarly dreary stretch for Arizona homeowners. As of February, home prices had declined for 11 consecutive months and there is a good chance the state will surpass the old record set almost two decades ago, reports Karl Guntermann, professor of real estate at the W. P. Carey School of Business.

Keeping It in the Family: Family Firms Willing to Take Risks to Retain Control

KnowWPCarey — Wed, 21 May 2008 10:42:35 EST

Studies show family-led companies implement better long-term planning and generally have greater internal organizational commitment than public companies. Even so, business researchers have for some time contended that because so few individuals control so much at family firms, executives there are less likely than their counterparts in public firms to take the kind of risks that truly successful companies need to take. This idea that family firms are naturally risk-averse has become a standard line of thinking in business academia. Unfortunately, says W. P. Carey management Professor Luis R. Gomez-Mejia, it's just not true. At least not entirely.

Security and Governance: Balancing Collaboration and Control

KnowWPCarey — Wed, 21 May 2008 10:42:35 EST

In late 2006, hackers stole information concerning 45.7 million debit and credit cards from the parent company of discount retailers T.J. Maxx and Marshalls. In another security breach last year, the confidential information of some 1.3 million job seekers was stolen from the website of Monster.com, the online job forum. The two incidents show the importance of governance and compliance, and illustrate the sticky problem of balancing collaboration and control -- topics discussed by a panel of experts at the "Achieving Innovation through Collaboration" symposium, hosted recently by the Center for Advancing Business through Information Technology at the W. P. Carey School of Business.

Phoenix Economic Outlook: The Good, the Bad and the Ugly

KnowWPCarey — Wed, 21 May 2008 10:42:35 EST

The Phoenix economy "could be worse," says Lee McPheters, director of the JPMorgan Chase Economic Outlook Center at the W. P. Carey School of Business. And that's the good news. Members attending a recent luncheon meeting of the Economic Club of Phoenix listened intently as economic experts described three different scenarios for the current economy in terms of "the good, the bad and the ugly."

The Move to Mashups: How the Millennials are Redefining Software Development

KnowWPCarey — Wed, 07 May 2008 10:42:35 EST

The Millennial generation -- usually defined as people currently under age 30 -- is demanding major changes throughout the wired workplace. In fact, the high-tech expectations of the Millennials are changing the way software applications are built, according to Michael Goul, a professor of information technology at the W. P. Carey School of Business. Goul moderated a panel discussion of the Millennial workforce as part of the "Achieving Innovation through Collaboration" symposium hosted by the Center for Advancing Business through Information Technology at the W. P. Carey School of Business.

Hospitals and Doctors Work Together to Improve Patient Care and the Bottom Line

KnowWPCarey — Wed, 07 May 2008 10:42:35 EST

Banner Health System saved $5 million and saw misdiagnosis claims from patient lawsuits drop 58 percent in just a year thanks to an insightful collaboration between hospitals and doctors determined to change the status quo. Before the hugely successful collaboration began in 2004, the hospital and its physicians, even when sued jointly, fought patient allegations separately. Each party had its own insurance coverage, claims administration process and attorneys. It was an inefficient and even adversarial strategy, said Dale Schultz, system vice president of business health at Banner. Schultz' presentation was part of the "Achieving Innovation through Collaboration" symposium hosted by the Center for Advancing Business through Information Technology at the W. P. Carey School of Business.

Stagecoach Island: Nexus of the Nexters

KnowWPCarey — Wed, 07 May 2008 10:42:35 EST

GMoney is young and loves to shop, but unlike most young women, she's already a homeowner with a low, low mortgage and a respectable savings account. GMoney is the avatar, or online image, of Gina Fung, who in real life is vice president of experiential marketing for Wells Fargo & Co. Online, Fung is the Pied Piper of Stagecoach Island, a virtual world designed to lure teens and young adults into becoming bank customers. Fung recently addressed a group of business managers gathered for the "Achieving Innovation through Collaboration" symposium hosted by the Center for Advancing Business through Information Technology at the W. P. Carey School of Business.

Multitasking Millennials Work Well in the Web 2.0 World

KnowWPCarey — Wed, 07 May 2008 10:42:35 EST

The wild and wooly world of Web 2.0 development is a comfortable work environment for 20-something employees, says Harbrinder Kang, director of collaboration technologies for Cisco Systems, Inc. "This generation functions differently. They're able to multitask and bounce around," Kang told information technology managers gathered for the "Achieving Innovation through Collaboration" symposium hosted by the Center for Advancing Business through Information Technology at the W. P. Carey School of Business.

Good Idea: Creating an Online Community of Innovators

KnowWPCarey — Wed, 07 May 2008 10:42:35 EST

A recent survey found that $20 billion is spent annually on market research, and yet 80 percent of new items fail, according to Bart Steiner, founder and CEO of Phoenix-based Bulbstorm.com. "Everyone has ideas, and everyone needs exposure and marketing feedback," Steiner said to a morning crowd at the "Achieving Innovation through Collaboration" symposium hosted recently by the Center for Advancing Business through Information Technology at the W. P. Carey School of Business. But market surveys are expensive, so where can innovators go for this vital input?

'Digital Diva' Helps the Famous and Their Fans Come Together over the Internet

KnowWPCarey — Wed, 07 May 2008 10:42:35 EST

Ruth McCartney's first true exposure to the needs of fans came while growing up around the McCartney clan. Stepsister of Sir Paul McCartney of the Beatles, Ruth earned her pocket money as a child helping her mother sort through Paul's fan mail. That experience grew into the idea behind McCartney's business. She is the CEO and co-founder of McCartney Multimedia and iFanz.com, a company that helps clients track who and where their fans are, and what those fans want and need. McCartney recently spoke at the "Achieving Innovation through Collaboration" symposium hosted by the Center for Advancing Business through Information Technology at the W. P. Carey School of Business.

Video: Industry Leaders Discuss Collaborative Opportunities

KnowWPCarey — Wed, 07 May 2008 10:42:35 EST

The expansive reach of collaborative technology can bring together expertise and expedite innovation. At the "Achieving Innovation through Collaboration" symposium, hosted by the Center for Advancing Business through Information Technology at the W. P. Carey School of Business, Knowledge@W. P. Carey caught up with the presenters for their insights on the impact of collaborative opportunities on their companies.

Economic Impact Study: Phoenix Scores Big with Super Bowl XLII

KnowWPCarey — Wed, 23 Apr 2008 10:42:35 EST

Arizona brought its "A" game to the Super Bowl -- both on the field and off -- with a winning coordination of events at Glendale's University of Phoenix Stadium. A memorable week of Super Bowl festivities generated a record $500.6 million in direct and indirect spending by visiting fans and organizations, according to the newly released Super Bowl impact study produced by the W. P. Carey MBA Sports Business program.

Computing IT's Give-and-Take Role in Sustainability -- Part Two

KnowWPCarey — Wed, 23 Apr 2008 10:42:35 EST

With about one billion computers currently in use, information technology rightfully owns some of the blame for the world's sustainability ills. The lifetime toll for a computer includes substantial resources for manufacture and delivery, then more energy consumed in home offices and companies. And, improper disposal of a computer can cause significant environmental damage. Yet for all this, IT will also take a starring role in sustainability solutions that meet the needs of the present without depriving future generations. IT's beneficial role is the subject of the second in this two-part series.

Academic Consultants Bring a Different Perspective to Business Problems

KnowWPCarey — Wed, 23 Apr 2008 10:42:35 EST

The stereotypes are familiar to consultants and people who hire them: Commercial consultants are in it for the money. They offer boilerplate products and simple answers to complex problems. Then there are academic consultants. They are detached from the real world, miss deadlines, and make things more complicated than they need to be. While kernels of truth can be found in these simplistic characterizations, commercial and academic consultants, in fact, bring different and important perspectives to problems companies face, according to W. P. Carey School of Business researchers.

Robert Gillette: Making 'Em Fly at Honeywell Aerospace

KnowWPCarey — Wed, 23 Apr 2008 10:42:35 EST

Imagine taking a dozen related but independently-run businesses, each with its own unique product, merging them into a cohesive business segment within an enormous corporation and driving up sales roughly 30 percent -- all during an intense, three-and-a-half year period. This is the high-performance world of Robert J. Gillette, Arizona-based president and chief executive officer of Honeywell Aerospace. "We turned our business upside down, changing everything, including how we go to market. It was a relatively painful process," Gillette told a ballroom of business leaders attending a recent Economic Club of Phoenix luncheon.

Stickiness Is Powerful: Making Your Message Count

KnowWPCarey — Wed, 23 Apr 2008 10:42:35 EST

Books touting ways to improve business communication skills command acres of shelf space in local bookstores, mostly in the Bargain Bin section. They're literally "a dime a dozen." Then there are the true classics that take pride of place in front of the store, year after year. "Made to Stick: Why Some Ideas Survive and Others Die" is destined to be one of the latter. Chip and Dan Heath have taken an old topic which has vexed generations of communicators and given it new energy and ease of application.

Podcast: Innovation and Challenges Implementing Collaborative Environments

KnowWPCarey — Tue, 15 Apr 2008 10:42:35 EST

Increasingly companies are viewing technology not just as a way to get things done but also as a way to move forward. The Center for Advancing Business Through Information Technology’s annual symposium on April 24 and 25 will focus on the opportunities available through enhanced collaboration to re-engineer supply change processes, transform customer care management, and employ a social network for knowledge management. Center Director and Professor Julie Smith David discusses collaborative environments and the challenges businesses face as they try to implement them into their organizations.

Change in Trajectory for Declining Phoenix Real Estate Prices?

KnowWPCarey — Mon, 14 Apr 2008 10:42:35 EST

The start of 2008 in the Phoenix metropolitan area was not much different from the end of 2007, as housing prices continue to decline. The only good news is that the rate of decline in January was slower than the huge drop in prices experienced by the Phoenix metro area in December, reports Karl Guntermann, a professor of real estate at the W. P. Carey School of Business.

Quitters Can Win: Avoiding the Pitfalls of 'The Dip'

KnowWPCarey — Wed, 09 Apr 2008 10:42:35 EST

Seth Godin, best-selling author of books and a popular marketing blog, discusses a sticky topic in his small but power-packed "The Dip: A Little Book That Teaches You When to Quit (and When to Stick)." The saying "Winners never quit and quitters never win" is a fallacy, according to Godin. In fact, there are times when quitting is the smartest tactic you can employ, as long as your long-term goal remains foremost in your mind.

Computing IT's Give-and-Take Role in Sustainability -- Part One

KnowWPCarey — Wed, 09 Apr 2008 10:42:35 EST

The dramatic growth of the past half-century has led to higher living standards in much of the world, but has also resulted in urban sprawl, choking pollution and global warming. Sometimes for better, sometimes for worse, information technology (IT) has been at the heart of the transformation -- driving change, infusing almost every aspect of life. So it's hard to ignore IT's role in sustainability, which is commonly defined as meeting the needs of the present without compromising the ability of future generations to meet their own needs. In fact, according to experts at the W. P. Carey School of Business, IT is both the hammer and the nail -- the problem and the solution. In Part 1 of a two-part series about IT's role in sustainability, Knowledge@W. P. Carey looks at how IT is the problem. In Part 2 we'll explore the solutions IT offers.

Opinion: Top Challenges for Health Care Supply Chain Management

KnowWPCarey — Wed, 09 Apr 2008 10:42:35 EST

Americans concerned with the growing proportion of GDP devoted to healthcare would do well to consider the industry's supply chain. Soon the cost of drugs and medical supplies will equal the cost of labor and benefits in the U.S. healthcare system, a situation that could derail reforms aimed at increasing access and coverage. Professor Eugene Schneller, who heads the W. P. Carey School's Health Sector Supply Chain Research Consortium, offers his top 10 list of challenges for health care supply chain managers. This is the first in an occasional series of opinion essays authored by experts at the W. P. Carey School of Business.

Podcast: Are Millennials Prone to Cheating to Get Ahead?

KnowWPCarey — Wed, 09 Apr 2008 10:42:35 EST

Many employers are finding that millennials -- employees aged 14 to 31 -- are a new breed. Young, bright, eager and tech savvy, millennials also demand frequent validation, quick rewards and permission to shape the rules to fit their lives. Now academics and employers are wondering if millennials have determined that cutting corners and cheating is an acceptable way of getting ahead. Barbara Keats, associate professor of management at the W. P. Carey School of Business, says cheating has always existed in some form in the business world, but she wonders if millennials are taking it to a new level.

What's Eating You? 100-calorie Mini-pack Snacks Might be Diet Disrupters

KnowWPCarey — Wed, 09 Apr 2008 10:42:35 EST

For those of us who diet -- counting our cookies, watching our calories and paying more per mouthful for chow that we perceive as "diet food" -- researchers from the W. P. Carey School of Business offer a bitter insight to swallow. Rather than serving up pre-packaged willpower, those 100-calorie snack packs often boost consumption. Or, at least, small morsels of food -- in smaller-than-normal packages -- increased the calories consumed by just the type of people likely to buy such treats as weight-loss aids.

Bradley Preber: Aligning Form and Substance to Create an Ethical Business Culture

KnowWPCarey — Wed, 09 Apr 2008 10:42:35 EST

Marianne Jennings, a professor of legal and ethical studies in business at W. P. Carey School of Business, recently noted that major business scandals used to be spaced about 10 years apart. Unfortunately, the cycle now appears to be compressing. In a recent talk before W. P. Carey MBA Executive students, Bradley Preber, the partner-in-charge of Grant Thornton's Forensic Accounting and Investigative Services practice, said that any company that continues having pervasive and systematic behavior problems with its employees must look at its culture to see if it could be partly what drives that unethical behavior.

Different Loans for Different Zones: Geographic Mapping Reveals Patterns in Mortgage Type Distributi

KnowWPCarey — Tue, 08 Apr 2008 10:42:35 EST

A geographic mapping of subprime and Alt-A loans in the Phoenix metropolitan area has revealed some unexpected results: these risky mortgages are not scattered, but cluster in certain cities and neighborhoods. Subprime loans, for example, are heavily concentrated along the Interstate and on the periphery of the urban area, while the fashionable northeast sector of the city is home to a higher number of Alt-A loans. "Alt-A loans, which are low-documentation and no-documentation loans, are almost exclusively concentrated in Scottsdale," notes Anthony Sanders, a W. P. Carey professor of finance and real estate.

Strategic Sourcing: Getting the Best Doctors and the Best Deals

KnowWPCarey — Thu, 03 Apr 2008 10:42:35 EST

A small but growing number of U.S. hospitals are using a version of quid pro quo to achieve two crucial goals: lock in the "rainmaker" physicians -- the ones who are at the top of their specializations -- and secure the best deal from suppliers. The most creative have found that this model produces stellar results when applied as a strategic tool, according to speakers at a recent conference presented by the Health Sector Supply Chain Research Consortium at the W. P. Carey School of Business.

The Emerging Market for MBAs in Health Care

KnowWPCarey — Thu, 03 Apr 2008 10:42:35 EST

As hospitals and other health care providers strive to cut costs while still giving good patient care, they are hiring an increasing number of MBAs. "There is a whole new set of roles in health care for MBAs, especially those with some clinical understanding," says Eugene Schneller, a professor in the W. P. Carey's School of Health Management and Policy. The morphing MBA job market was examined at a recent conference sponsored by the Health Sector Supply Chain Research Consortium at the W. P. Carey School of Business.

Managing the Medical Supply Chain: A Tale of Two Hospitals

KnowWPCarey — Thu, 03 Apr 2008 10:42:35 EST

If, as healthcare experts say, supplies gobble up 30 percent of a typical American hospital's annual budget, then upgrading the medical supplies system is a sensible investment. At a recent conference sponsored by the Health Sector Supply Chain Research Consortium at the W. P. Carey School of Business, Sisters of Mercy Health System's vice president of performance consulting, Marita Parks, and Thomas Macy, CEO of Nebraska Orthopedic Hospital, described two different approaches to the supply chain challenge.

Millennials in the Workplace: R U Ready?

KnowWPCarey — Wed, 26 Mar 2008 10:42:35 EST

The Millennials -- people aged 14 to 31 -- are streaming into the workplace. They have been called "entitled" and "tough to manage" because they need much direction and praise. On the other hand, they're tech-savvy, nimble, enthusiastic and achievement-oriented. Like all young people, they offer the corporate world enormous energy and talent. However, harnessing those positive attributes will take a patient, nurturing touch, say experts at the W. P. Carey School of Business.

Subprime Discussion -- Part 5: Security Transparency is a Global Concern

KnowWPCarey — Wed, 26 Mar 2008 10:42:35 EST

In Part 5 of our series on the subprime market, real estate finance Professor Anthony Sanders, Jeffrey Coles, chairman of the finance department at the W. P. Carey School of Business and Steven Davidson, vice president, capital market research, Securities Industry and Financial Markets Association (SIFMA), discuss the need for transparency to restore liquidity to securitized markets in the U.S. and across the globe. Davidson was a featured speaker at the recent Risk, Reward and Real Estate Conference, sponsored by the Center for Real Estate Theory and Practice at the W. P. Carey School of Business.

Who Profits from IPO Underpricing?

KnowWPCarey — Wed, 26 Mar 2008 10:42:35 EST

A firm going public relies on the capital raised in its Initial Public Offering to grow and thrive, but studies have found that IPOs in the United States are underpriced an average of 15 percent. Conventional wisdom has held that the gap is inevitable given the risks in taking public a young company that often has little or no track record. But W. P. Carey management professor Robert E. Hoskisson and researchers from three other U.S. universities challenge this assumption in an exhaustive analysis of 300 IPOs from the 1990s. The researchers applied agency theory -- a concept used to sort out the interests of owners and managers -- and concluded that underpricing of IPOs occurs because it is in the interests of some of the key players.

Taking a Cue from the Business World: What the Public Sector Could Learn about Influencing Behavior

KnowWPCarey — Wed, 26 Mar 2008 10:42:35 EST

What's the best way to convince a 40-year-old to stop smoking? Tell him that he'll get lung cancer and die? Not necessarily. Economics Professor Kerry Smith of the W. P. Carey School of Business says that the best quit-smoking message comes out of an understanding of the reasons why people smoke in the first place. John Lastovicka, a professor of marketing at the W. P. Carey School, agrees. He says that understanding why people make certain decisions, and then testing messages designed to influence those decisions, is typical in the for-profit world but less common in the public arena.

Fugitive Denim: Globalization Tales of the Traveling Pants

KnowWPCarey — Wed, 26 Mar 2008 10:42:35 EST

What do you look for when you buy a pair of jeans? Color? Cut? Designer label? Price tag? One thing is certain: Even if you buy what you think is the same make/label/origin, year after year, it is an entirely different item with a brand-new geographic story. If you want to get a handle on the facts and fancy surrounding this ubiquitous icon of American consumerism, check out Rachel Louise Snyder's "Fugitive Denim: A Moving Story of People and Pants in the Borderless World of Global Trade." Chances are, you'll never buy a pair of jeans again without recalling the amazing stories contained in her book.

Hispanics Seen as Key Players in Expanding Diamondbacks Fan Base

KnowWPCarey — Wed, 26 Mar 2008 10:42:35 EST

The Boston Red Sox played Oakland in Japan this week -- an unusual opening day for Major League Baseball. As the season starts, Knowledge@W. P. Carey sat in on a discussion of the sports business between three Diamondbacks front office officials who visited the W. P. Carey School of Business recently. In 2004, the Arizona Diamondbacks were picked by some media outlets to win the National League West division; instead they lost 111 games, the most by a National League team in 39 years. The team has bounced back from 2004, both on and off the field, but they are still attracting fewer fans. The Diamondbacks have focused their attention on several areas to solidify and broaden the fan base, and one of the key areas is tapping into the Hispanic market, which is growing even faster than the population as a whole in Arizona.

Subprime Discussion -- Part 4: Mortgage-backed Securities and Ambiguous Financial Instruments Spread

KnowWPCarey — Thu, 20 Mar 2008 10:42:35 EST

In Part 4 of our series on the subprime market, real estate finance Professor Anthony Sanders, Jeffrey Coles, chairman of the finance department at the W. P. Carey School of Business and Steven Davidson, vice president, capital market research, for the Securities Industry and Financial Markets Association (SIFMA), describe mortgage-backed securities, which gave rise to ambiguous financial instruments like CDOs. "The securitization process has spread the opportunities, spread the risk and spread the pain," said Davidson, a featured speaker at the recent Risk, Reward and Real Estate Conference, sponsored by the Center for Real Estate Theory and Practice at the W. P. Carey School of Business.

Take the Leap: Overcoming Uncertainty with the Principles of Persuasion

KnowWPCarey — Wed, 12 Mar 2008 10:42:35 EST

Fears of recession, turbulent markets and an overload of information about the situation have created a sense of uncertainty about the economy going forward, leaving many people unsure how to react. Such uncertainty is especially problematic for a stagnant economy because it often leaves people frozen -- too scared to spend and unwilling to invest. Robert Cialdini, a professor of marketing and psychology at Arizona State University and longtime expert in the power of persuasion, says that three specific principles of persuasion -- scarcity, consensus, and authority -- can be used to influence people to overcome their fears.

What Job Shortage? Firms Go Begging for High-Tech Talent

KnowWPCarey — Wed, 12 Mar 2008 10:42:35 EST

Outsourcing, offshoring and the dot-com meltdown have taken their toll: Students are avoiding information-systems careers. However, companies still need high-tech talent, and are facing increasing difficulty in filling positions. Experts at the W. P. Carey School of Business discuss the factors contributing to the shortage of IS workers and the misperceptions preventing students from pursuing these plentiful and high-paying careers.

Subprime Discussion -- Part 3: When Will the Dust Settle?

KnowWPCarey — Wed, 12 Mar 2008 10:42:35 EST

In Part 3 of our five-part series on the subprime market, real estate finance Professor Anthony Sanders, Jeffrey Coles, chairman of the finance department at the W. P. Carey School of Business and Steven Davidson, vice president, capital market research, for the Securities Industry and Financial Markets Association (SIFMA), predict when the dust will settle. They discuss why things will look dismal in 2008 and why loan fraud is in the way of people getting the help they need. Davidson was a featured speaker at the Risk, Reward and Real Estate Conference in Phoenix, sponsored by the Center for Real Estate Theory and Practice at the W. P. Carey School of Business.

Podcast: Social Media -- Opportunities, Risks and Marketing

KnowWPCarey — Wed, 12 Mar 2008 10:42:35 EST

Social media, including blogs, discussion boards and networking sites like Facebook have changed the laws of nature for communications and marketing. Kevin Dooley, a professor of supply chain management at the W. P. Carey School of Business, has been observing the behavior of this new medium using a text analysis tool he developed at ASU with communications professor Steven Corman. Using examples from his website, Wonkosphere, which tracks activity on the political blogs, Dooley shows how bloggers have accelerated the flow of information, and because they are early adopters of things new, have become a valuable source of feedback for politicians and marketers alike.

Richard Kovacevich: Seeing the Half-Full Glass in the U.S. Economy

KnowWPCarey — Wed, 12 Mar 2008 10:42:35 EST

It's understandable that some economic forecasters, spooked by gloomy indicators, say the U.S. is heading into or already in a recession -- but they may be overlooking key factors that buffer negative forces, according to Richard Kovacevich, chairman of Wells Fargo & Co. Kovacevich is this year's winner of the W. P. Carey School's Executive of the Year award.

William Polk: What Is the True Cost of the Iraq War?

KnowWPCarey — Wed, 12 Mar 2008 10:42:35 EST

William Polk has an impressive resume as a historian, policy adviser and diplomat. But when he spoke at the W. P. Carey School's Economic Club of Phoenix recently, Polk tailored his message for a business audience, proposing that the war in Iraq calls for the same kind of sober analysis that business people apply to problems in their fields. A careful look at the facts, he said, reveals costs that are not obvious or have been hidden.

Subprime Discussion -- Part 2: Mapping Subprime in Phoenix

KnowWPCarey — Mon, 03 Mar 2008 10:42:35 EST

In Part 2 of our five-part series on the subprime market, real estate finance Professor Anthony Sanders maps the occurrence of subprime loans in the metro Phoenix market. Jeffrey Coles, chairman of the finance department at the W. P. Carey School of Business and Steven Davidson, vice president, capital market research, for the Securities Industry and Financial Markets Association (SIFMA), join the conversation to talk about the resulting impact on property taxes. Davidson was a featured speaker at the Risk, Reward and Real Estate Conference in Phoenix, sponsored by the Center for Real Estate Theory and Practice at the W. P. Carey School of Business.

Gordon DuGan: How Subprime Mortgage Woes Spread through the Financial System

KnowWPCarey — Wed, 27 Feb 2008 10:42:35 EST

A first-time homebuyer with limited earning power and a sketchy credit history would seem to have little in common with a blue chip corporation. But thanks to some creative investment vehicles they've now been tied together. Subprime mortgage problems have spread throughout the financial system and created a full-blown credit crisis, says Gordon DuGan, president and CEO of W. P. Carey & Co., but fear among investors may be overblown. DuGan addressed a recent conference sponsored by the Center for Real Estate Theory and Practice at the W. P. Carey School of Business.

Ivan Makil: Understanding 'Seven-Generation Thinking' Key to Developing Indian Land

KnowWPCarey — Wed, 27 Feb 2008 10:42:35 EST

Drive around the biggest cities in Arizona and you'll see an interesting contrast in land usage: packed-full swaths of retail, residential, business and industrial buildings bellied up to vast fields pockmarked with weeds and here and there, a house or two, or even a shiny new casino. There's a reason for this juxtaposition: the undeveloped space is reservation land, long ago set aside for Indian tribes. But modern growth has pushed the city right up to the tribal borders, bringing about a long-overdue collaboration on land usage and development, according to Ivan Makil, a development consultant and former three-time president of the Salt River Pima-Maricopa Indian Community. Makil was speaking at a real estate conference sponsored by the Center for Real Estate Theory and Practice at the W.P. Carey School of Business.

Subprime Discussion -- Part 1: What Is the Subprime Market and Why Do We Need It?

KnowWPCarey — Wed, 27 Feb 2008 10:42:35 EST

Knowledge@W. P. Carey recently taped a discussion about the subprime market between Jeffrey Coles, chairman of the finance department at the W. P. Carey School of Business, Anthony Sanders, professor of real estate and finance at the school and Steven Davidson, vice president, capital market research, for the Securities Industry and Financial Markets Association (SIFMA). Knowledge@W. P. Carey begins a five-part series that explores the scope and the internal workings of the subprime market, and the consequences of subprime failures. In part one, experts discuss the definition of a subprime borrower, the necessity for these loans, the complexity of the subprime market itself, and the reason why so many people are affected. Davidson was a featured speaker at the Risk, Reward and Real Estate Conference in Phoenix, sponsored by the Center for Real Estate Theory and Practice at the W. P. Carey School of Business.

Steven Davidson: Don't Blame CDOs for the Subprime Crisis

KnowWPCarey — Wed, 27 Feb 2008 10:42:35 EST

The collapse of the subprime residential real estate market last summer has Wall Street investment banks and international financial titans reeling. Underneath it all is the widespread deterioration of billions of dollars of pooled investment vehicles called collateralized debt obligations, or CDOs. Always difficult to understand, the CDO is taking the rap for a lot of credit pain. But the blame should be directed not to the CDOs but to the underlying collateral -- the subprime assets, said Steven Davidson, vice president, capital market research, for the Securities Industry and Financial Markets Association (SIFMA) in Washington, D.C. Davidson was a featured speaker at the Risk, Reward and Real Estate Conference in Phoenix, sponsored by the Center for Real Estate Theory and Practice at the W.P. Carey School of Business.

Kieran Quinn: 'Things Will Be Fine in 2009'

KnowWPCarey — Wed, 27 Feb 2008 10:42:35 EST

To sum up where the real estate finance markets are today, Kieran Quinn, chairman and CEO of Column Financial, Credit Suisse's Atlanta-based mortgage lending subsidiary for commercial properties, relied on a poetic quote from an associate: "Things will be fine in 2009." Quinn was speaking at the Risk, Reward and Real Estate Conference in Phoenix, sponsored by the Center for Real Estate Theory and Practice at the W. P. Carey School of Business.

Robin Panovka: REITs Face a New Reality

KnowWPCarey — Wed, 27 Feb 2008 10:42:35 EST

The heady rush of taking real estate investment trusts from public to private has evaporated in today's credit-market crunch. And so, it's time to face a new reality, says New York attorney Robin Panovka, a renowned expert on REIT mergers and acquisitions. We are either in the midst of a significant commercial real estate downcycle, or we are sliding into one, Panovka told attendees at a real estate conference sponsored by the W.P. Carey School Center for Real Estate Theory and Practice.

Jay Brinkmann: A Few Bad States Lead the Real Estate Downturn

KnowWPCarey — Wed, 27 Feb 2008 10:42:35 EST

The daily headlines are alarming: homeowners are falling behind on mortgage payments at an increasing rate; foreclosures are up steeply. Has the situation ever been this bad before? Well yes, said Jay Brinkmann, chief economist of the Mortgage Bankers Association. Speaking at the first real estate conference put on by the Center for Real Estate Theory and Practice at the W. P. Carey School of Business on February 22, Brinkmann said the downturn for the industry is in many ways a fairly typical one.

Conley Wolfswinkel: Top Properties Produce Top Profits

KnowWPCarey — Wed, 27 Feb 2008 10:42:35 EST

Investors who enter the real estate sector in the midst of long up-cycles sometimes make the mistake of thinking that profitable times will last forever. When the inevitable tough times hit, those with no frame of reference become dismayed and confused. Conley Wolfswinkel, a real estate developer with a long and colorful career in the Arizona market, recently offered perspective and advice to attendees at the Risk, Reward and Real Estate conference sponsored by the W. P. Carey School's Center for Real Estate Theory and Practice.

Brad Casper: Road to Success May Lead Out of Your Comfort Zone

KnowWPCarey — Wed, 13 Feb 2008 10:42:35 EST

In 2005, Brad Casper exceeded his own career projections and goals by being hired as president and CEO at The Dial Corporation. Asked by an audience at the W. P. Carey School of Business how he did it, Casper remained off-the-cuff and humble. "I took a chance, took risks, and did things that didn't always feel comfortable."

Innovating the Customer Experience

KnowWPCarey — Wed, 13 Feb 2008 10:42:35 EST

Success in business is all about creating an exceptional customer experience, and then enhancing it. But how do we innovate the customer experience to make it exceptional? Larry Crosby, "chief loyalty architect" at Synovate, a global research and consulting firm thinks the answers are in the concept of customer experience itself, and how it evolved. Crosby posed these questions in early February to experts at a panel hosted by the Center for Services Leadership, a think tank at the W. P. Carey School of Business.

Evaluating Environmental Regulations Outside the Box

KnowWPCarey — Wed, 13 Feb 2008 10:42:35 EST

Maricopa County, Arizona is proposing to implement 53 measures to cut pollution from tiny particles (PM-10) that are small enough to be inhaled. The "Five Percent Plan" estimates the cost to range from from $4 per ton of PM-10 for certified street sweepers to $2,534,000 per ton of PM-10 for repaving or overlaying paved roads with rubberized asphalt. The cost of the policy mandating a dust control manager at sites larger than 50 acres was calculated by first adding the cost of a day-long dust control training course, more frequent watering at construction sites, and the full-time employment of a dust manager (with an average salary 10% higher than a foreman or construction supervisor). But Kerry Smith, professor of economics at the W. P. Carey School of Business, suggests that calculating the full cost of the PM-control policies is more complex, and requires a new look at the way we account for the interrelationships in an economy.

Ask Your Doctor If Direct-to-Consumer Healthcare Advertising Is Right for You

KnowWPCarey — Wed, 13 Feb 2008 10:42:35 EST

Anyone who watches television in the United States might logically conclude that this is a nation plagued by allergies, depression and arthritis. Ads for medicines to address such conditions make it seem as though ailment sufferers outnumber the healthy. Can advertising increase patient demands, physician prescribing and overall costs? Professor Eugene Schneller and Research Analyst Natalia Wilson of the School of Health Management and Policy at W. P. Carey weigh in.

A New Theory Changes the Thinking behind Creating Robots and Smart Machines

KnowWPCarey — Wed, 13 Feb 2008 10:42:35 EST

Asim Roy, an information systems professor at the W. P. Carey School of Business, was on sabbatical at Stanford University in 1991 when several years of thinking about the operation of the brain and artificial systems inspired him to act. In a message to the leading Connectionist scholars, he threw down the gauntlet, challenging the prevailing school of thought and thereby the very foundations of the technologies behind smart machines and artificial intelligence.

What's the Buzz? Text Analysis Technology Tracks Who's Saying What about Whom

KnowWPCarey — Wed, 13 Feb 2008 10:42:35 EST

If you love it when the elite pundits are proved wrong and the instincts of the common man -- and common blogger -- are proved right, Wonkosphere.com can plug you into a higher state of political awareness. The Web site, created by Kevin Dooley from the W. P. Carey School of Business and Steven Corman from ASU's Hugh Downs School of Communication, monitors feeds from 1,200 liberal, conservative and independent blogs, keeping a finger on the pulse of the 2008 election.

ASU-RSI: Phoenix Metro Real Estate Decline Accelerates

KnowWPCarey — Fri, 08 Feb 2008 10:42:35 EST

Like an object dropped over the side of a high building, housing prices in the Phoenix metro area picked up speed on the way down, reports Karl Guntermann, real estate professor at the W. P. Carey School of Business. Guntermann puts together the Arizona State University–Repeat Sales Index (ASU-RSI).

Of Mice and Money: Entrepreneurs Need Focus, Communication Skills

KnowWPCarey — Wed, 30 Jan 2008 10:42:35 EST

Two entrepreneurial CEOs shared some of the challenges they have faced and lessons they have learned with attendees at "Entrepreneurship: From IP to IPO and Beyond," a seminar presented by the W. P. Carey MBA Executive Program. Entrepreneurs and their companies, the speakers said, need optimism, luck, communication skills and focus.

A Key to Service Innovation: Services Blueprinting

KnowWPCarey — Wed, 30 Jan 2008 10:42:35 EST

The idea behind services blueprinting is fairly simple: Companies put themselves in their customers' shoes to find out what's working, what's not, and what needs to be changed. According to a new paper from three W. P. Carey researchers, the method offers a surprisingly flexible means of helping companies understand how well, or not, they are serving their customers.

Rendering Authenticity: How to Succeed in the Experience Economy

KnowWPCarey — Wed, 30 Jan 2008 10:42:35 EST

The new consumer sensibility, widely heralded in the business press, is the Experience Economy. Our world of mediated, staged and multi-sensory experience -- an increasingly unreal world -- gives rise to people desiring authentic or "real" experiences. But what is authenticity? In their new book, James H. Gilmore and B. Joseph Pine II provide an answer. It's a fascinating -- if sometimes difficult to follow -- analysis of the matrix of real/fake and the many and mixed positions therein. By the end of the book the reader should emerge with the ability to understand the mechanics of authenticity as it applies in the world of economic offerings.

Financial Detectives: The Rising Demand for Forensic Accountants

KnowWPCarey — Wed, 30 Jan 2008 10:42:35 EST

Like ripples from a pebble pitched into a pond, the federal law passed to combat white-collar crime has resulted in booming demand for the specialists who can comb through financial records and follow a trail of evidence. Once simply a component part of audit courses, forensic accounting is being offered as a standalone class at many colleges, including the W. P. Carey School of Business.

Podcast: Lee McPheters Checks the Vital Signs of the Economy

KnowWPCarey — Wed, 30 Jan 2008 10:42:35 EST

Consumers are worried, and that's a bad sign for the economy. Consumer spending accounts for 70 percent of the economy; these days people appear reluctant to buy big-ticket items like cars and major appliances. Months ago, former Fed Chairman Alan Greenspan kicked off a flood of speculation that the economy was headed into recession, talk that has created bad psychology about economic conditions. Lee McPheters, director of the JPMorgan Chase Economic Outlook Center at the W. P. Carey School of Business, talks about the state of the economy nationally and in Arizona -- a state that has consistently led the nation for job growth but which now ranks at number 18. For more of McPheters' analysis, see JPMorgan Chase Arizona Blue Chip Economic Forecast, which was released today.

From Pork Bellies to Pigskin: An Online Futures Market for Sports Tickets

KnowWPCarey — Wed, 30 Jan 2008 10:42:35 EST

W. P. Carey professors Stephen Happel and Marianne Jennings are free-market defenders. For almost two decades they have evangelized the fundamentals of supply and demand, specifically in the secondary market for event tickets. Now a new company has done what Happel and Jennings proposed in a paper for The Cato Journal in 2002. YooNew offers a website that turns tickets into commodities that can be traded on a futures market.

Crisis Management: Can Congress and the Fed Rescue the Economy?

KnowWPCarey — Wed, 30 Jan 2008 10:42:35 EST

The Federal Open Market Committee voted 9-1 today to lower the rate at which banks lend to each other to 3 percent from 3.5 percent. Just eight days ago the Fed lowered that rate by three-quarters of a percent. Experts at the W. P. Carey School of Business see both peril and promise in the reactions of policymakers to Wall Street's wild ride. The turmoil in credit markets is uncharted territory, and it will take some time to determine the effectiveness of the actions taken.

Reaping the Benefits of a Big Event

KnowWPCarey — Wed, 16 Jan 2008 10:42:35 EST

Super Bowl XLII represents an estimated $450 million in direct and ancillary revenues for businesses and entrepreneurs. Add in the estimated $100 million in revenues from the FBR Phoenix Open during Super Bowl week, and you have a half-billion dollar infusion into the Metropolitan Phoenix economy. But to cash in on a big event like the Super Bowl you must play by the rules, and the National Football League's licensing regulations, available online, have enough "thou shalt nots" to fill a book of the Old Testament.

Jeff Moorad: Performance-enhancing Management for the Arizona Diamondbacks

KnowWPCarey — Wed, 16 Jan 2008 10:42:35 EST

The Arizona Diamondbacks are fresh from a season during which they led the National League in victories, racking up 90 on the way to winning the National League West Division title. The team, which debuted in 1998, won the World Series in its fourth season, but at a high cost. Worsening finances and a record losing season followed. General Partner and CEO Jeff Moorad talks about the Diamondbacks' new game plan, which includes winning on the field and on the balance sheet.

Location, Location, Location: Home Price Declines Vary Widely across Metro Phoenix Regions

KnowWPCarey — Wed, 16 Jan 2008 10:42:35 EST

Housing prices in the Phoenix metro area continue to plummet and the rate of decline has accelerated, according to Karl L. Guntermann, a professor of real estate and finance at the W. P. Carey School of Business. But in contrast to areas of the desert city that are experiencing deterioration, certain parts are holding their own.

Healthcare Controversy: Group Purchasing Organizations Encounter Troubled Waters in the 'Safe Harbor

KnowWPCarey — Wed, 16 Jan 2008 10:42:35 EST

A controversial regulation creates a "safe harbor" from antitrust laws for certain aspects of the relationship between suppliers and group purchasing organizations (GPOs) in the healthcare industry. The scenario: Hospitals join the GPOs, which negotiate group contracts with manufacturers for supplies ranging from syringes to operating tables. The manufacturers pay "administrative fees" to the GPOs -- the very organizations responsible for evaluating and selecting products from competing manufacturers. Is it a kickback, or a discount rewarding the efficiency of group contracting?

Conspicuous Consumption: How Utilities Want To Lighten Your Load

KnowWPCarey — Wed, 16 Jan 2008 10:42:35 EST

A big change may be ahead in the relationship you have with your electric utility. That's because the worrisome carbon footprint is stomping all over the options electric utilities have to meet increasing demand for power. Experts at the W. P. Carey School of Business and elsewhere say utilities will most likely turn to you, the consumer, for help in managing this complex problem.

My Job Is My Life: The Connection Between Meaningful Work and Personal Identity

KnowWPCarey — Wed, 16 Jan 2008 10:42:35 EST

Business researchers have long proposed that when employees find their work meaningful and fulfilling, they are more likely to do that work well, and, as a result, help their companies succeed. But recently, Kevin Corley and his colleague Heather Vough began to wonder if that may be a bit too simple. Corley, an assistant professor of management at the W. P. Carey School of Business, believes there's something more that drives an employee to endure an awful commute and put in an honest day's work at the office.

'Starbucked': Background Reading for a Corporate Reorganization

KnowWPCarey — Mon, 14 Jan 2008 10:42:35 EST

Coffee juggernaut Starbucks is facing new challenges in the American-style café business that it created around the globe. Competition is increasing; even McDonalds -- where the ambience is not exactly Starbucks -- is adding the job title "barista" to its stores. Meanwhile, the "Starbucks Experience" itself is showing signs of losing some of its charm in some places. Last week, Starbucks Coffee Company announced that it was bringing back its founder, Howard Schultz, as CEO. Schultz pledged to refocus the company on the vision that changed the morning "joe" habits of the world. Consider Taylor Clark's engaging and critical new book, "Starbucked: a Double Tall Tale of Caffeine, Commerce and Culture," as background reading for the unfolding Starbucks story.

More than Just a Game: The Impact of a Big Event

KnowWPCarey — Wed, 02 Jan 2008 10:42:35 EST

At kickoff time on February 3, Phoenix will be the focus of attention for some 90 million sports fans worldwide. The 75,000 lucky ticket holders and the thousands more who visit with them will give the metropolitan area an economic shot in the arm. But the impact of a big event like the Super Bowl extends beyond game day. Experts at the W. P. Carey School explain how.

The Art of Negotiating With Your Boss - Part Two

KnowWPCarey — Wed, 02 Jan 2008 10:42:35 EST

One of the most difficult tasks for a worker is negotiating with a boss. Whether it's getting a raise or a new assignment, or a simple request for more office supplies, asking a boss for anything can be nerve-wracking. Knowledge@W. P. Carey interviewed management professor Kevin Corley about the best way to negotiate with your boss. Part One of our two-part series on this topic addressed the matter of self interest -- yours, your boss's, and the organization's. Part Two discusses how knowing your boss's negotiating style can make all the difference between success and failure.

'No More Ramen' Advises 20-Somethings About Work/Life Expectations

KnowWPCarey — Wed, 02 Jan 2008 10:42:35 EST

What do 20-somethings want? The so-called "Entitlement Generation" wants the same things as everyone else, according to Nicholas Aretakis' book "No More Ramen: the 20-something's Real World Survival Guide." The career consultant has written a no-nonsense but affectionate guide for the young and the still-unsettled on how to secure the four elements of a balanced life: freedom, accomplishment, money, and enjoyment.

Environmental Squeeze Prompts Utilities to Change Tune

KnowWPCarey — Wed, 02 Jan 2008 10:42:35 EST

Electric utilities are in the business of selling electrons. The more they sell, the more they earn. But today, a whirlwind of forces is sweeping electron sellers into counterintuitive activities such as promoting conservation and offering rate structures designed to cut peak consumption. In other words, utilities are asking customers not to buy quite as much of the product they produce. While this appears environmentally altruistic, utilities may have more than planetary stewardship in mind. According to Kerry Smith, professor of economics at the W. P. Carey School of Business, smart utilities are "getting behind moves to solve the climate issue. They'll say they've turned Green, but it's actually a practical business strategy."

The New Hiring Standard: Adaptability

KnowWPCarey — Wed, 02 Jan 2008 10:42:35 EST

Most assessments of employability focus on traditional models that consider skills, work experience, education and personality traits. But today more than ever, organizations need employees who can adapt and are comfortable doing so. New research from the W. P. Carey School's Angelo Kinicki explores the traits that are most valuable to companies that are in the midst of change.

Doctors Who Care for the Poor: Paying the Hidden Cost of Medicaid

KnowWPCarey — Wed, 02 Jan 2008 10:42:35 EST

A groundbreaking study has finally put a dollar figure on a previously unanswered question: how much do physicians' practices, due to government regulation, pay to ensure their poorest patients get the right prescription drugs? Turns out the answer is $8.02 per prescription, on average, or $1,110 annually for high blood pressure and high cholesterol medications alone, according to research from Jonathan D. Ketcham, an assistant professor at the W. P. Carey School of Business, and Andrew J. Epstein, an assistant professor at the Yale School of Medicine.

New Attitudes, Technology Paint a Brighter Future for Videoconferencing

KnowWPCarey — Wed, 02 Jan 2008 10:42:35 EST

Videoconferencing has been touted as a practical, here-today technology that can save companies from having to fly employees all over. But despite its practicality, adoption of this technology has been minimal. Advances in audio and visual technology, and a sea change in attitudes about communication may change all that. Harvey Shrednick and Ajay Vinze, both information systems professors at the W. P. Carey School of Business, believe that after years of unfulfilled hype the time may finally be right for videoconferencing.

Economy vs. Border Security? It Doesn't Have To Be That Way

KnowWPCarey — Wed, 19 Dec 2007 10:42:35 EST

In Arizona alone, non-citizen immigrant workers contribute $29 billion to the economy. That's 8 percent of the state's output, created by about 280,000 workers. State and local tax revenues resulting from their economic activity totaled $1.5 billion. What if that labor supply became unavailable? Economists, policy-makers, business people and others discussed the impact of immigration on the economy at a recent forum sponsored by Arizona State University, The Communications Institute, and the Thomas R. Brown Foundations.

The Distress Index: Where Does It Hurt?

KnowWPCarey — Wed, 19 Dec 2007 10:42:35 EST

The economy has not been a source of comfort and joy this year. The collapse of the housing market, the accompanying sub prime debacle and the credit crises has produced pain, for individuals and institutions. But how much does it hurt? Lee McPheters, professor of economics and director of the JPMorgan Chase Economic Outlook Center has developed the "Distress Index By State," which utilizes unemployment rates and home loan troubles to quantify economic grief, and those numbers say that Ohio and Michigan are feeling the greatest amount of economic stress.

Political, Economic Winds Buffet America's 'Golden Door'

KnowWPCarey — Wed, 19 Dec 2007 10:42:35 EST

Immigration has been controversial throughout American history. Roger Daniels' book "Guarding the Golden Door" is a scholarly yet eminently readable account of U.S. immigration policy. Over the years, the author contends, the debate has been characterized by an internal contradiction: "the dualistic attitude that most Americans have developed toward immigration and immigrants, on the one hand reveling in the nation's immigrant past and on the other rejecting much of its immigrant present." The book provides the historical perspective to understand these dueling views as policymakers consider how to address the issue of newcomers.

Dispatch From a Border State: The Immigration Issue in Arizona

KnowWPCarey — Wed, 19 Dec 2007 10:42:35 EST

Harsh employer sanctions are scheduled to become law in Arizona on January 1, focusing a national spotlight on the state that the New York Times called a "striking laboratory" for immigration reform. Immigrants are an important part of the work force in this border state, particularly in construction, agriculture and manufacturing and low-skill service jobs. A forum on immigration co-sponsored by The Communications Institute and Arizona State University brought together spokespeople for the many interest groups in the debate over immigration for a morning of civil discussion and brainstorming. Despite disparate points of view, participants did find some common ground.

The Hard Work of Compromise: America Needs a Comprehensive Immigration Policy

KnowWPCarey — Wed, 19 Dec 2007 10:42:35 EST

As the debate over immigration has intensified in Arizona and across the country, the discussion has become louder, more heated and less civil. At a recent forum, "Immigration: Confronting the Challenges in Arizona" co-sponsored by the W. P. Carey School of Business, The Communications Institute, and Thomas R. Brown Foundations, participants representing views from across the spectrum turned down the volume for a few hours of poised, intelligent discussion about the economics, policy impacts, and legislative ramifications of immigration.

Video: The Experts Comment on the Impacts of Immigration

KnowWPCarey — Wed, 19 Dec 2007 10:42:35 EST

Reporting on Arizona's new employer sanctions law, a recent New York Times story commented that "As [the state] exacts its punishment on the undocumented workers who have made it so prosperous, it runs the risk of proving itself tough but not smart." The Knowledge@W. P. Carey video team was present at the recent forum, "Immigration: Confronting the Challenges in Arizona," which examined this law and other immigration issues. In these video interviews, economists, policy analysts and academic researchers assess the costs and benefits of immigration, and what kind of system to use to enable immigrants to work legally in the U.S.

Continued Consumer Spending Key to U.S. Economic Growth

KnowWPCarey — Wed, 05 Dec 2007 10:42:35 EST

Although the world economy is growing and markets in the United States have shown remarkable resilience, the U.S. economy has entered a period of great uncertainty, according to two of the country's leading economic forecasters. David A. Wyss, chief economist for Standard & Poor's, and James E. Glassman, managing director and senior economist at JPMorgan Chase & Co., presented their views on financial markets and the U.S. economy at the W. P. Carey School of Business's 44^th Annual Economic Forecast Luncheon on Dec. 5. Both analysts say that the troubles of the U.S. housing sector have damaged credit markets and put other parts of the economy at risk.

Measuring the Innovation Climate: Innovation Indicators Dashboard

KnowWPCarey — Wed, 05 Dec 2007 10:42:35 EST

In the old economy, manufacturing led the way and regions competed largely by offering a low-cost environment in which businesses could operate. In the new economy, innovation and new technologies lead economic gains, and education takes on greater importance, since innovative economies are also knowledge-based. The Innovation Indicators Dashboard, produced by the L. William Seidman Research Institute with support from the governor's office through the Arizona Department of Commerce, is a new tool designed to help policymakers measure the state's competitiveness -- particularly its capacity for innovation.

Rex Maughan: Forever Living Products Founder Turns to Philanthropy

KnowWPCarey — Wed, 05 Dec 2007 10:42:35 EST

He's a billionaire entrepreneur with operations in 125 countries, a host of philanthropic projects worldwide and frequent flyer miles to match, yet longtime Arizonan Rex Maughan is a surprisingly simple man. The founder, chairman, president and CEO of Forever Living Products reacted with characteristic humility recently when he learned that his alma mater, the W. P. Carey School of Business, had named him to its "Alumni Hall of Fame" for 2007.

The Services Imperative: Focusing on the Future of Business

KnowWPCarey — Wed, 05 Dec 2007 10:42:35 EST

Services now account for a staggering 80 percent of the U.S. Gross Domestic Product and labor force, but many still view the world through manufacturing lenses, according to W. P. Carey experts Mary Jo Bitner and Stephen Brown. Their new paper synthesizes service research and throws down a challenge to businesses, policy makers and academics: recognize the immediate need to focus on growth and innovation through services, in order for individual companies and countries to be competitive in the global economy. Bitner and Brown lead the W. P. Carey School's Center for Services Leadership, host of the annual Compete Through Service Symposium.

Doing Business in the Political Marketplace: Strategies for Success

KnowWPCarey — Wed, 05 Dec 2007 10:42:35 EST

For many business people, politics is unfamiliar territory, where missteps bring unforeseen and often unfortunate consequences. But because so many issues that affect business wind up in the political arena, ignoring politics is not a good option, according to researchers at the W. P. Carey School of Business. They offer this piece of advice: Approach politics like it's a business, only with different rules.

The Art of Negotiating With Your Boss - Part One

KnowWPCarey — Wed, 05 Dec 2007 10:42:35 EST

You don't have to be a power broker juggling corporate mergers to need negotiation skills. Just about everybody must negotiate with a superior at some point, about a raise or an assignment, or even a new idea for a project. Most people are conscious of the power gap between themselves and their bosses; astute employees also realize that the boss's interests may not always align with their own. Knowledge@W. P. Carey interviewed management professor Kevin Corley about the best way to negotiate with your boss. Part One of our two-part series on this topic addresses the matter of self interest -- yours, your boss's, and the organization's.

In an Uncertain Economy, the Worst May Not Be Over Yet

KnowWPCarey — Wed, 05 Dec 2007 10:42:35 EST

Next year will be marked by uncertainty, and that bodes ill for the Arizona economy. Lee McPheters, professor of economics and director of the JPMorgan Chase Economic Outlook Center at the W. P. Carey School of Business, and Elliott D. Pollack, President of Elliott D. Pollack & Company, discussed the challenges facing the Arizona economy at the 44^th Annual Economic Forecast luncheon on Dec. 5.

IBM's Extreme Makeover: Big Blue Adapts to a Changing Marketplace

KnowWPCarey — Thu, 29 Nov 2007 10:42:35 EST

Once best known for making computers and selling them to corporations and government entities around the world, IBM refocused on technical support and professional services in the 1990s, in the process becoming the leading edge of a change that has swept manufacturing companies. And fifteen years later, IBM is still evolving. "The marketplace is changing today more dramatically than we've ever seen," said Paul M. Loftus, general manager of maintenance and technical support for IBM Global Technology Services. Loftus was speaking at the 18^th annual "Compete Through Services Symposium: Set the Pace" sponsored by the W. P. Carey School's Center for Services Leadership.

Xerox Global Services: The Product is Service

KnowWPCarey — Thu, 29 Nov 2007 10:42:35 EST

Xerox still makes copy machines, sells toner and fixes broken office equipment. But its fastest growing segment does not market a physical product. Xerox Global Services (XGS) takes over printing, tracking and storing documents for clients, using proprietary software, digital repositories and re-engineered workflows. Tom Dolan, president of XGS' global account operations, gave executives attending the 18^th Annual Compete Through Service Symposium an overview of how to save money by modernizing their document functions. The symposium is sponsored by the Center for Services Leadership at the W. P. Carey School of Business.

Zane's Cycles: Empowering Employees to Deliver 'Extraordinary Customer Service'

KnowWPCarey — Thu, 29 Nov 2007 10:42:35 EST

Chris Zane goes to work every day with a smile on his face, buoyed by his philosophy that "most of the population are good and sound and trustworthy people." Sound naïve? Perhaps. But Zane apparently knows what he's talking about. His bicycle store, Zane's Cycles, grossed $10 million in 2006, and has enjoyed an average annual growth rate of 23 percent since opening in 1980. Speaking to several hundred customer-service managers gathered for the 18^th Annual Compete Through Service Symposium, Zane credited his success to giving "extraordinary customer service with the help of an empowered team of employees." The symposium is sponsored by the Center for Services Leadership at the W. P. Carey School of Business.

Cox Communications: Working for Customer Trust

KnowWPCarey — Thu, 29 Nov 2007 10:42:35 EST

Cox Communications had choices about how it would approach the fiercely competitive digital communications market: it could leverage its experience to become an industry innovator, it could pursue market share by driving price, or it could strive to become the service provider that customers trust. According to Stephen Rizley, the company's Arizona vice president and region manager, Cox has chosen to develop customer trust through great customer care. Rizley explained how at the Center for Service Leadership's 18^th Annual Compete Through Service Symposium.

Chase Home Equity: Innovation from the Inside Out

KnowWPCarey — Thu, 29 Nov 2007 10:42:35 EST

The home-equity loan industry is crowded with competitors, making it tough for mortgage companies to hang onto market share -- much less grow revenue, according to Brad Connor, president of Chase Home Equity, who recently spoke at the 18^th Annual Compete Through Service Symposium, sponsored by the Center for Services Leadership at the W. P. Carey School of Business. But helmed by Connor, Chase Home Equity has managed to grow market share and profits this year. How did he do it? With a creative strategy focusing on new services and products, an emphasis on employee-generated innovation, clever marketing and a whole-hearted plunge into high tech.

Partners in Addressing Climate Change: Business, Policy-Makers and Consumers

KnowWPCarey — Wed, 21 Nov 2007 10:42:35 EST

Climate change will cost us, and the bill is likely to be big, according to the recent United Nations Intergovernmental Panel on Climate Change. Policy-makers and business leaders at last week's Business and Climate Change summit, sponsored by the Arizona Investment Council and Arizona Businesses Advancing Sustainability, looked at the potential costs and discussed the importance of consumer acceptance and buy-in to programs designed to reduce greenhouse gas emissions.

Kerrii Anderson: Taking Care of Business

KnowWPCarey — Wed, 21 Nov 2007 10:42:35 EST

Under pressure from activist investors, fast food restaurant chain Wendy's International has been exploring options, including selling off the whole company, as a way to unlock value for shareholders. In a recent speech at the W. P. Carey School's Economic Club of Phoenix, CEO Kerrii Anderson discussed the challenge of focusing on running the business for the long term when the company might be sold in the near term.

Economics and the Ethics of Climate Change Policies

KnowWPCarey — Wed, 21 Nov 2007 10:42:35 EST

How much are we willing to pay today to reduce the ill effects of climate change in the future? University of Cambridge economics Professor Partha Dasgupta tackled that question in a recent lecture, part of the Economics of Climate Policy Workshop Series, hosted by APS, ASU's Global Institute of Sustainability, and the W. P. Carey School of Business. Dasgupta framed his analysis in the context of three seminal books on the economics of climate change; he initially assumed that divergence in the authors' conclusions would arise from their unique assumptions about the facts associated with climate change. He was wrong. "The difference between the three had nothing to do with science and everything to do with ethics," he said.

Most Accurate Forecaster: Kinder, Gentler Economic Outlook

KnowWPCarey — Wed, 21 Nov 2007 10:42:35 EST

Despite dire predictions that the price of oil, the recent credit crisis and the ailing housing market will bring the U.S. economy to its knees, one prominent economist has faith in its resilience. Dr. Ken Mayland, recipient of the 2007 Lawrence R. Klein Award for Blue Chip Forecast Accuracy, concedes that in some areas of the economy the U.S. has yet to hit rock bottom, contributing to the potential for recession in the coming year. But many economists and analysts have wrongfully magnified the level of the nation's economic risk, he says.

The Dollar: Down but Not Out

KnowWPCarey — Wed, 21 Nov 2007 10:42:35 EST

The dollar has been in sharp decline in recent months -- the greenback is now worth less than the Canadian dollar, and against the euro, it has lost 60 percent of its value since 2001. A doomsday scenario has the U.S. economy spinning out of control: the dollar plunges, financial markets crash, and the Federal Reserve is powerless to halt the collapse since cutting interest rates would send the dollar down even further. But W. P. Carey experts Herbert Kaufman and Kent Hill believe that concerns of a dollar-triggered financial crisis are overblown.

Pete Winemiller: The Little Things Mean a Lot

KnowWPCarey — Wed, 21 Nov 2007 10:42:35 EST

It looks like a recipe for a customer-service nightmare: A company offers a product that is inconsistent, the frontline employees are mostly part-timers who don't work directly for the organization, and many of the customers have been drinking alcohol. Welcome to the world of the Seattle SuperSonics and the Seattle Storm. Pete Winemiller, the organization's vice president of guest relations, was a featured speaker at the Center for Service Leadership's 18^th Annual "Compete Through Service: Set the Pace" symposium, which is the subject of an up-coming Special Report from Knowledge @ W. P. Carey. Winemiller said achieving success in customer relations means setting big goals and meeting them through little acts.

Podcast: 'Culture Eats Strategy for Breakfast'

KnowWPCarey — Wed, 21 Nov 2007 10:42:35 EST

Companies that attempt strategic change without considering organizational culture risk failure, according to management Professor Angelo Kinicki of the W. P. Carey School of Business. When culture is not aligned with strategy, he explains, culture wins every time. Herb Kelleher, former CEO and current chairman of the board of Southwest Airlines, has been quoted saying that culture is the most important focal point for leaders. In this podcast, Kinicki describes how to identify your corporate culture, and how to manage it.

New Arizona Home Price Index Aims for More Accurate Measure of Housing Appreciation

KnowWPCarey — Wed, 07 Nov 2007 10:42:35 EST

The most popular indices currently in use today, such as those developed by the National Association of Realtors, measure the median home prices nationally and in a given region. But is median price the best way to measure the trend in home prices? W. P. Carey real estate professor Karl Guntermann and research associate Alex Horenstein have developed a new index for Arizona -- this one based on repeat sales.

Prognosis for AMT: Minimal Change Ahead

KnowWPCarey — Wed, 07 Nov 2007 10:42:35 EST

The alternative minimum tax (AMT), enacted in 1986 to make sure that a handful of millionaires paid at least some federal income tax, has come to affect tens of millions of taxpayers -- most not even close to being millionaires. But even though the AMT is taking a tax bite out of a burgeoning number of filers, the outcry most likely will continue to be addressed by temporary annual fixes, not the abolishment of the AMT, according to Charles Christian and Donald Goldman, tax experts at the School of Accountancy in the W. P. Carey School of Business.

Podcast: World Economy Heading for an Oil Slick?

KnowWPCarey — Wed, 07 Nov 2007 10:42:35 EST

Analysts are watching the global oil situation with a raised eyebrow as prices flirt with the $100 per barrel mark. The U.S. economy is bearing the brunt, because with a weakening dollar oil costs more, and because at 20 million barrels per day, America uses more oil than any other nation. With the U.S. accounting for 25 percent of gross domestic product globally, trouble for the U.S. economy could spell trouble for the world. According to Lee McPheters, director of the JPMorgan Chase Economic Outlook Center at the W. P. Carey School of Business, prices will drop when the risk factors that have been driving them skyward moderate. But short term the situation is "potentially difficult."

Supply Management: A Changing Industry in a Rapidly Changing World

KnowWPCarey — Wed, 07 Nov 2007 10:42:35 EST

What will a typical supply management organization look like in 10 years? It's hard to say for sure, but it likely will be complex, high-tech, supplier network-driven, and spread out across the globe. Companies will be asking more of supply managers -- they will be expected to contribute to revenue generation, innovation, collaboration, technology application and strategic management. A recent report co-authored by Phil Carter, a professor of supply chain management at the W. P. Carey School and executive director of CAPS Research, examines the challenges facing supply managers in the coming decade.

Gregg Tryhus: The New Course of Development

KnowWPCarey — Wed, 07 Nov 2007 10:42:35 EST

The times they are a-changing, says Gregg Tryhus, president and owner of Grayhawk Development, which is known for high-end golf courses and master-planned communities. He believes the kind of development that has brought his Scottsdale, Arizona-based company success since the early 1990s will be less the norm going forward. "If I were in school today, I'd be paying attention to things like sustainability issues," said Tryhus, a 1981 MBA graduate of the W. P. Carey School of Business and one of three graduates inducted into the school's Alumni Hall of Fame this fall.

Benchmarking Tool Zeros In on Supply Chain Ills and Opportunities in Healthcare

KnowWPCarey — Wed, 07 Nov 2007 10:42:35 EST

Supply expense is the second highest operational cost in hospitals, but traditional healthcare benchmarking doesn't pinpoint factors that contribute to supply-expense performance, nor does it enable hospital supply chain professionals to see how they stack up against similar organizations. To address these problems, the Association for Healthcare Resources & Materials Management (AHRMM) and the W. P. Carey School of Business recently launched SCMetrix^TM, an online benchmarking tool. It aims to give hospital professionals a holistic view of supply chain performance and the factors contributing to it.

A Quiet but Growing Revolution: The Disruptive Technology of On-Demand Software Aggregators

KnowWPCarey — Wed, 07 Nov 2007 10:42:35 EST

Google, a bellwether of online computing, recently announced OpenSocial -- its next generation answer to Facebook, which had previously opened up its platform. But platforms that allow outside developers to create bolt-on applications are not just for the novelty functions found on social networking sites. The same concepts are being used by software companies like Salesforce.com to add value and functionality to their online platforms. As a result, in the view of Julie Smith David, Director of the Center for Advancing Business through IT at the W. P. Carey School of Business, the whole software industry is -- or soon may be -- all shook up.

Reading Allies like a Book: How Smart Framing Spreads Education in India

KnowWPCarey — Wed, 24 Oct 2007 10:42:35 EST

By focusing on solutions rather than causes, Pratham -- a non-profit organization dedicated to primary education in India -- has been remarkably successful in motivating donors and volunteers, not to mention the children this program has brought back into classrooms. According to Balaji Koka, associate professor of management at the W. P. Carey School of Business, much of the organization's effectiveness comes from wise framing of the problem and solutions at hand. What's more, Pratham's approach could serve as a primer for any business trouper trying to rally office forces.

Podcast: Here Come the Boomers -- Will Social Security Survive?

KnowWPCarey — Wed, 24 Oct 2007 10:42:35 EST

The first official baby boomer reached age 62 and applied for Social Security benefits recently. Her action set off a ripple of reaction, fueled by a fear that plagues many Americans -- that the Social Security system will collapse under the weight of millions of baby boomers entering retirement. Tracy L. Clark, associate director of the JPMorgan Chase Economic Outlook Center at the W. P. Carey School of Business, posits that baby boomers have never done what was expected of them, and that the post-War generation may once again defy expectations. They may just work longer, in the process propping up the system for a few more years.

The Best Tool for the Job: Selecting and Implementing E-Tools

KnowWPCarey — Wed, 24 Oct 2007 10:42:35 EST

Tools to facilitate the full range of business processes proliferated over the past decade. Some firms base entire business models or product lines on such tools, while other traditional companies are looking for tools as a means to improve operational efficiency or processes. "The question facing supply management professionals today might be best summarized as: How do we ensure we're getting the most out of the e-tools available?" according to a report from CAPS Research, a strategic sourcing research center co-sponsored by the W. P. Carey School of Business.

The Bigger They Are: Ethical Challenges of the Rich and Famous

KnowWPCarey — Wed, 24 Oct 2007 10:42:35 EST

Think twice about accepting a job with an organization headed by a renowned industry captain, a technological wunderkind or a visionary philanthropist, warns an expert who's studied the downside of charismatic leadership. Business icons become more susceptible to disastrous ethical lapses as their workplace fame spreads, says Marianne Jennings, J.D., a professor of legal and ethical studies at the W. P. Carey School of Business. When the gurus crash and burn, the careers of those around them falter, too.

Want to Lure R&D? Investing in Tech Capabilities Trumps Financial Incentives

KnowWPCarey — Wed, 24 Oct 2007 10:42:35 EST

Where a multinational corporation (MNC) decides to put its manufacturing and research and development (R&D) facilities is important both for the MNC and for the host country. An MNC that makes the right move can gain a significant technological advantage over competitors, while the wrong decision can deal a major setback to its innovation efforts. The location choices of MNCs are the subject of a recent study by W. P. Carey management professor Robert Hoskisson. Hoskisson and his co-authors conclude that companies locating manufacturing and R&D facilities in more technologically advanced locations are better able to gain technological advantages. Countries that want to attract foreign investment often hold out tax breaks as a lure, but this study suggests that developing technical assets at home may be more important.

Fight or Flight: How Employees Cope with Organizational Change

KnowWPCarey — Wed, 24 Oct 2007 10:42:35 EST

In a global marketplace, change isn't just good. For many companies, says Angelo Kinicki, it's necessary. In a recent paper Kinicki, a professor of management at the W. P. Carey School of Business, and his co-authors examined the effect of organizational change on workers in a large government office. They found that significant change greatly impacted both the psyche and performance of employees. Fail to take this into account and force changes that employees aren't prepared to handle, and your company risks alienating its workers, losing money and, in the end, seeing those great strategic changes fall flat.

The Manager's Task: Turning Job Misery into Job Fulfillment

KnowWPCarey — Wed, 24 Oct 2007 10:42:35 EST

In a publishing environment where books about bad management and the resulting demoralized employees abound, there is room for one more. Patrick Lencioni has distilled the essence of management wisdom in its simplest and purest form in his new book, "The Three Signs of a Miserable Job: A Fable for Managers." The essential responsibility of creating a happy and productive work force lies with middle managers, according to the author. Middle managers, he asserts, are responsible for the three hallmarks of a miserable job.

VEBAs: Autoworkers' Union Shares the Risk of Rising Healthcare Costs

KnowWPCarey — Wed, 10 Oct 2007 10:42:35 EST

The tentative contract agreement that assigned a role to the United Auto Workers in managing the healthcare costs of its General Motors members was a turning point in the relationship between business and labor -- and a sign of things to come in a global economy. In fact, Chrysler was seeking similar healthcare concessions in contract talks with the union. It's all about risk-sharing. VEBAs -- Voluntary Employee Beneficiary Associations -- will most likely make declining U.S. manufacturing industries more competitive; however, they may do little to reverse sagging U.S. union participation, according to experts at the W. P. Carey School of Business.

The Road to a Mature Network

KnowWPCarey — Wed, 10 Oct 2007 10:42:35 EST

Computer network problems cost American businesses $100 billion each year. While the underlying issues may be technologically complex, anyone who has ever fumed about a company-wide e-mail outage or an overloaded web site has an idea of the costs, says Kevin Dooley, a professor of supply chain management at the W. P. Carey School of Business. Dooley and his co-authors have just published "Network Maturity Model: An integrated process framework for the management, development and operation of high quality computer networks." The book outlines a descriptive framework that helps businesses assess the soundness of their networks and improve the veins that carry the lifeblood of companies in the information age.

Podcast: Could Construction Revitalize Job Growth?

KnowWPCarey — Wed, 10 Oct 2007 10:42:35 EST

Last week's job growth report indicated that some 89,000 jobs were added to the economy nationally in August, and another 110,000 in September. That means the average monthly job growth for 2007 will hover around 125,000 per month -- down from the 160,000 average in 2006 and 175,000 in 2005. Non-residential construction remains strong, however, and if residential construction picks up as most analysts predict, next year could be better. Regional forecaster Lee McPheters -- professor of economics, senior associate dean and director of the JPMorgan Chase Economic Outlook Center at the W. P. Carey School of Business -- takes a deep look at the numbers.

Selling Services to 'Pet Parents' Fetches Comeback for PetSmart

KnowWPCarey — Wed, 10 Oct 2007 10:42:35 EST

PetSmart was designed to be a category killer with dominant prices and dominant variety when it was founded in the late 1980s, and the concept worked well for the company's first decade. But by the late 1990s the company was losing steam. Its turnaround was the result of a shift in focus to services that capitalizes on the deepening affection people have for their pets. CEO Philip L. Francis briefed an audience at the W. P. Carey School's Economic Club of Phoenix on PetSmart's strategies, including its smart deployment of a rewards card program.

To Pay or Not To Pay: The World of Office Suites Opens Up

KnowWPCarey — Wed, 10 Oct 2007 10:42:35 EST

The ubiquitous Microsoft Office suite claims an impressive 95 percent market share. Yet since 2000, a free suite of software that includes spreadsheet and word processing programs similar to Excel and Word has evolved. The open source OpenOffice.org has attracted a lot of attention but still claims a small percentage of the market. So why aren't more people switching to OpenOffice? And how might a free alternative affect the price of Microsoft Office? W. P. Carey information systems professor Raghu Santanam and marketing professor Rajiv Sinha began examining these questions three years ago; with Microsoft Office facing a barrage of new, free threats from powerful players including IBM, Google, and Adobe, the issue seems particularly relevant today.

They're Few and Far Between, but Female Executives Benefit the Firms They Work For

KnowWPCarey — Wed, 10 Oct 2007 10:42:35 EST

Carly Fiorina was ousted from her role as CEO of Hewlett-Packard after the merger with Compaq, but that doesn't mean that women can't hold their own in the male-dominated corporate world. In fact, firms with female leaders may well be better off than firms without, according to recent research by W. P. Carey professor of management Amy Hillman. However, management professor Peggy Lee's research shows that company shareholders react more negatively to female CEO appointments than to male CEO appointments.

Trucks Across the Border: Direct Shipping Between the U.S. and Mexico Stirs Heated Debate

KnowWPCarey — Wed, 26 Sep 2007 10:42:35 EST

In September, the U.S. and Mexican governments took a tentative first step towards the final goal of allowing unfettered shipping between the two nations -- a measure agreed upon under NAFTA but delayed since 1995. Proponents say freeing up trucks to directly deliver goods in their neighbor countries will cut shipping costs by millions of dollars annually, reduce pollution and ultimately benefit consumers in both nations. However, the measure also has a long line of opponents on both sides of the border. Arnold Maltz, a professor of supply chain management at the W. P. Carey School of Business, and Dawn McLaren, a W. P. Carey research economist, examine the pros and cons of cross-border shipping.

Have Your Cake and Eat It Too: Balancing Work and Family in a Dual-Career Marriage

KnowWPCarey — Wed, 26 Sep 2007 10:42:35 EST

Dual-career marriages account for about 65 percent of the workforce, according to the Clayman Institute for Gender Studies in Stanford, California. How do these couples balance the demands of work and family? Daniel and Anita Reid exemplify one style of two-career partnership: that of the mid-life "urban power couple." Addressing students at the W. P. Carey School of Business, Dan Reid summed up the couple's philosophy: "Business comes first, for the most part."

In Richistan, All Millionaires Are Not Equal

KnowWPCarey — Wed, 26 Sep 2007 10:42:35 EST

If a million dollars sounds like a lot of money to you ... if you think "household manager" is a synonym for Mom ... if your idea of a cool set of wheels is a Mercedes-Benz convertible ... then you probably don't live in Richistan. For several years, Robert Frank, who writes "The Wealth Report," a Wall Street Journal weekly column and daily blog, has analyzed the phenomenon of the "new rich." Frank's book, "Richistan: A Journey Through the American Wealth Boom and the Lives of the New Rich" is an eye-opening, educational and at times amusing examination of what the author refers to as "the new Gilded Age."

Video: U.S. Healthcare Costs Impacted by Technology Innovations, Drug Research Investments

KnowWPCarey — Wed, 26 Sep 2007 10:42:35 EST

Much of the increase in the price of healthcare in the United States can be traced back to technology advances that improve patient outcomes, but are expensive to develop and implement. Offsetting some of that expense are the savings that result from drug therapies that have replaced other, more costly treatments. In a video interview conducted in collaboration with The Communications Institute, Knowledge@W. P. Carey asked health economist Marjorie Baldwin of the W. P. Carey School of Business to analyze some of the causes of rising healthcare costs.

Podcast: A Company's Road to Success -- Building Trust, 'Fessing Up' and Listening to Customers

KnowWPCarey — Wed, 26 Sep 2007 10:42:35 EST

Creating a great product or service is just the first step on a company's road to success. It's also necessary for your potential customers to know about that great product or service. So how does a company go about developing a successful customer focus strategy? According to Nancy Stephens, an associate professor of marketing at the W. P. Carey School, it's a matter of creating a trustworthy brand, choosing the right type of marketing media and -- most importantly -- listening to your customers.

The Customer: An Overlooked Component of the Innovation Process

KnowWPCarey — Wed, 26 Sep 2007 10:42:35 EST

Where would YouTube be today if not for its millions of users? What good would Wikipedia be without all of those contributors? And how successful could IKEA possibly be if its customers weren't willing to assemble their own furniture? Stephen Brown, a professor of marketing at the W. P. Carey School of Business, says the answer is simple: If not for the contributions of their customers, all three of those remarkable business successes would be anything but successful. And there's a lesson in that, says Brown, for companies of all kinds.

Ties That Bind: The Connection between Fraud and Foreclosures in the Mortgage Market

KnowWPCarey — Wed, 26 Sep 2007 10:42:35 EST

The public perception is that foreclosures mainly affect hardworking families who are hit with a payment reset or a trigger event such as a job loss. But Anthony Sanders, a professor of finance and real estate at the W. P. Carey School of Business, also sees evidence of "rampant fraud."

High Foreclosures but Low Bankruptcies: Why the Disconnect?

KnowWPCarey — Wed, 12 Sep 2007 10:42:35 EST

Foreclosure rates have increased dramatically in the last year. Yet bankruptcy filings are much lower than they were before the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) went into effect. Experts at the W. P. Carey School of Business examine various factors that may be contributing to the gap and discuss possible policy responses.

Video: Complexity, Divisiveness Cloud Healthcare Reform Prognosis

KnowWPCarey — Wed, 12 Sep 2007 10:42:35 EST

The healthcare system in the United States has been slowly collapsing over the past 30 years, according to Bradford Kirkman-Liff, professor of health policy and biotechnology at the W. P. Carey School of Business. In a video interview conducted in collaboration with The Communications Institute, Kirkman-Liff explores the sources of pressure on the system, including the impact of large numbers of patients who are uninsured and the cost of pharmaceuticals. The prospects for reform, however, are clouded by what Kirkman-Liff calls the divisiveness of the national discussion.

Biologic Drugs a Good Buy in U.S.

KnowWPCarey — Wed, 12 Sep 2007 10:42:35 EST

The soaring cost of prescription drugs is a major concern in the United States, but drugs in one important category -- biopharmaceuticals, or drugs produced through biotechnology -- actually do not cost more in the United States. Michael F. Furukawa, assistant professor in the School of Health Management and Policy at the W. P. Carey School of Business, and his co-author found that while the United States is by far the biggest user of biopharmaceuticals, the prices for these drugs in the United States are comparable to those in a broad range of countries.

The Great Escape: Profiles in Career Change

KnowWPCarey — Wed, 12 Sep 2007 10:42:35 EST

It's possible that the 10 middle-class achievers profiled in Joshua Piven's "The Escape Artists" will teach you more about transforming your passion into a viable career than any of the high-flying Steve Jobses of the world. How so? Because struggling to copy the career path of a high-tech genius who helped create an enormous industry more likely qualifies as fantasy than future. But since the author focuses on ordinary individuals rather than mega-entrepreneurs, the people profiled in "The Escape Artists" provide useful examples of how to turn an obsession into a paycheck.

Hands on Management: Lifelong Learning Key to Business Success

KnowWPCarey — Wed, 12 Sep 2007 10:42:35 EST

Judi Hand, president and general manager of Direct Alliance, a business process outsourcer, visited the W. P. Carey School of Business recently to speak to an audience of students attending the Executive Luncheon Series. Her message -- that success depends on your ability to keep learning and keep questioning -- is as true for mid-career practitioners as it is for students.

Podcast: Michael Vick, Celebrity Endorsements, and the Fallout When an Icon Stumbles

KnowWPCarey — Wed, 12 Sep 2007 10:42:35 EST

Michael Vick's apparent involvement in the brutal "sport" of dog fighting is the latest incident to focus attention on celebrity endorsements. Companies that use sports stars to endorse their products are aware that the public attaches meaning to athletic performance -- an emotional tie that can propel marketing messages. But when an athlete gets in trouble, do the companies pay a price too? Given the risk that the human icon will fall down, what are the factors that make some of these potentially risky relationships more valuable to companies than others? Ray Artigue, faculty director of the W. P. Carey MBA Sports Business Program, and John Eaton, clinical faculty in marketing at the W. P. Carey School, discuss the Vick case and its ripple effects.

Reduce Risk by Building a Diversified 'Portfolio' of Customers

KnowWPCarey — Wed, 12 Sep 2007 10:42:35 EST

Companies typically try to acquire the kind of customers that are immediately profitable, or show the most potential for long term value. Ruth Bolton, Michael Hutt and Beth Walker -- marketing researchers at the W. P. Carey School of Business -- have learned that companies would be wise to apply portfolio theory in their quest for customers. Firms that identify the risk-return characteristics of all of their potential customers, then build a "customer portfolio" that can reap returns in both good times and bad, are shielded against tough times in the marketplace.

Jumbo Woes in the Mortgage Market

KnowWPCarey — Wed, 29 Aug 2007 10:42:35 EST

The meltdown of the subprime mortgage industry, often associated with the lower end of the U.S. housing market, continues to spread upward, bringing uncertainty into the jumbo mortgage loan market (loans above $417,000). Luxury home communities are impacted, but so are less fancy neighborhoods in cities such as Los Angeles, where mortgages on small homes occupied by middle income families fall into the jumbo category. At this point the severity and duration of the impact on the high-end market are still unknown. The surprise is how far the subprime contagion has already spread, say experts at the W. P. Carey School of Business.

Edison Invented the Light Bulb (and Other Myths of Innovation)

KnowWPCarey — Wed, 29 Aug 2007 10:42:35 EST

From the light bulb to the Google algorithm, new ideas have changed the way we live and have created great wealth for those who bring them to market. Many of the old ideas we have about innovation are false, however. Scott Berkun, a member of the Internet Explorer team at Microsoft in the 1990's, has produced a compact book, "The Myths of Innovation," that uncovers the inaccuracy in some well-known legends, and offers insights on when, where and how innovation happens. He finds few "Eureka!" moments. Instead, many of the great innovations came after wrong turns and persistent effort.

Entrepreneurs Pursue Passion and Profits

KnowWPCarey — Wed, 29 Aug 2007 10:42:35 EST

Self-confidence, persistence, flexibility, and an affinity for success are the hallmarks of an entrepreneur: A person who'll take an idea and run with it -- frequently to the bank. At a luncheon event on September 26, the W. P. Carey School of Business will announce recipients of the 2007 Spirit of Enterprise Awards.™ Here, a selection of 2006 winners share their business stories, each in its way a tale of the heart as well as the brain.

A Picture is Worth a Thousand Numbers: Bringing Data Alive on the Big Screen

KnowWPCarey — Wed, 29 Aug 2007 10:42:35 EST

In our last issue, Ajay Vinze and Raghu Santanam, both information systems professors at the W. P. Carey School of Business, discussed how principles of supply chain management might be applied to public health emergencies. In the second half of our two-part look at their research, they describe their collaboration with the Decision Theater, a high-tech visualization facility at Arizona State University, to present their data in a way that will permit decision makers who are not "numbers people" to better prepare for emergencies by playing out "what if" scenarios in advance.

No Phone for You! Sprint-Nextel Cuts Off High-Maintenance Customers

KnowWPCarey — Wed, 29 Aug 2007 10:42:35 EST

Telecom giant Sprint-Nextel recently decided about a thousand of its customers were just a little bit too demanding, so it went ahead and fired them. The remarkable move made headlines nationwide and since has left business analysts to ponder two questions. First, was Sprint justified? Second, is Sprint's bold, controversial move a sign of things to come? The answer to the first question, say experts from the W. P. Carey School of Business, isn't so easy. As for the second? That's a resounding "Yes."

Podcast: How the Fed Influences Credit Market Liquidity

KnowWPCarey — Wed, 29 Aug 2007 10:42:35 EST

As the stock market continues to shake following the crash of the subprime market, all eyes are on the Federal Reserve. Now more than ever it's important to understand how the Fed works. For example, what is the federal funds rate and how does it differ from the discount rate? Here with a primer on how the Federal Reserve operates is Herbert Kaufman, professor of finance at the W. P. Carey School of Business.

Collect Calls: How the IRS Aims to Bring in More Money

KnowWPCarey — Wed, 29 Aug 2007 10:42:35 EST

IRS officials estimate some $290 billion dollars that should have come into federal coffers in 2001 never made it into Uncle Sam's pockets. But, take heart. The IRS has a seven-component strategy for bringing in the bucks. In the second part of a series on the tax gap, Charles Christian, director of the School of Accountancy at the W. P. Carey School of Business, points to the agency's goal of expanding information-reporting vehicles as one change that might bring in a healthy payback.

Closing the Gap: Why the IRS Wants to Practice Random Acts of Audit

KnowWPCarey — Wed, 15 Aug 2007 10:42:35 EST

According to IRS estimates, there is a $345 billion gross "tax gap" for 2001. The tax gap is the difference between taxes the IRS thinks should have been paid and taxes that actually were paid. Not surprisingly, "the tax gap is, on and off, seen as a revenue source," says Charles Christian, professor of accountancy at the W. P. Carey School of Business.

Marketers Using New Media: Brands Can Be Defined by the Interactive Experience

KnowWPCarey — Wed, 15 Aug 2007 10:42:35 EST

With consumers increasingly comfortable with interactive technologies such as online social networks, high-speed connections and new media tools, it's now easier than ever for marketers to connect with their customers. It is also easier than ever for consumers to ignore brand messages. But while consumers may be fed up with one-way messages and annoying interruptions, they are willing to be entertained and engaged, and may choose to participate in an experience that communicates the brand's message. This new approach to marketing was the subject of a presentation at the recent American Marketing Association Consortium, hosted by the W. P. Carey School of Business.

The Globalization of Sushi: From Street Snack to Gastronomic Delicacy

KnowWPCarey — Wed, 15 Aug 2007 10:42:35 EST

From its origin as an economical means of preserving dried fish to its current ubiquitous presence in supermarkets and five-star restaurants, sushi presents a fascinating glimpse of the rise and fall (and rise again) of Japan's modern economy and the similarly wild ride of sushi's culinary centerpiece, the bluefin tuna. Sasha Issenberg's "The Sushi Economy: Globalization and the Making of a Modern Delicacy" is a great read for the student of global economics or a raw-fish fanatic who wishes to learn about the people, places and technologies that make up the popular phenomenon known as sushi.

Podcast: The Future of Newspapers

KnowWPCarey — Wed, 15 Aug 2007 10:42:35 EST

Media titan Rupert Murdoch has finally succeeded in buying the company that owns the venerable Wall Street Journal. Now media experts are wondering what's next, not only for the Journal, but also for newspapers in general. Here to comment is Andrew Leckey, director of the Donald W. Reynolds National Center for Business Journalism and investment columnist for the Chicago Tribune.

Murdoch Buys Dow Jones: What Does It Mean for the Wall Street Journal?

KnowWPCarey — Wed, 15 Aug 2007 10:42:35 EST

Reaction to Rupert Murdoch's $5.6 billion takeover of the Dow Jones Co. and The Wall Street Journal is a reminder of how highly businesspeople value the venerable news organization. Some fear that Murdoch will bring tabloid style or political advocacy to the bible of business, but experts at the W. P. Carey School of Business predict that these fears are likely to go unrealized.

Video: The Crooked Line About Illegal Immigration

KnowWPCarey — Wed, 15 Aug 2007 10:42:35 EST

The illegal immigration debate is a example of the old saw about econometrics: the discussion is often a crooked line from an unproved assumption to a foregone conclusion. In this video interview, Dawn McLaren, research economist at the W. P. Carey School of Business, takes apart some of the myriad assumptions about illegal immigrants that lead to politically expedient but often erroneous conclusions. This inaugurates a partnership between Knowledge@W. P. Carey and AnalysisOnline, the "content arm" of The Communications Institute -- a nonprofit organization dedicated to raising the level of knowledge and discussion on critical issues in society.

Disease Outbreak and Bioterrorism: The Ultimate Supply Chain Test

KnowWPCarey — Wed, 15 Aug 2007 10:42:35 EST

In the event of a disease outbreak or bioterrorist attack, public health officials must make decisions about how to allocate finite medical resources -- decisions that impact the spread of the disease and the number of lives lost. Ajay Vinze and Raghu Santanam, both information systems professors at the W. P. Carey School of Business, wondered what might be the best way to allocate critical resources in such scenarios. They realized that, viewed from a business perspective, the public health system is actually a very large and complex supply chain -- in many ways even more intricate than the highly developed supply chain of an enterprise like Wal-Mart.

Now you see it, now you don't: Arizona's vanishing budget surplus

KnowWPCarey — Tue, 14 Aug 2007 10:42:35 EST

Arizona has enjoyed flexibility in its state budget-building for the last several years, thanks to a revenue spike that piled up into a welcome and useful surplus. That flexibility is disappearing, however, as revenues lag compared to the recent past. The state's current budget concerns are indicative of how much the sagging housing market can affect a state economy that is still healthier than most, and it shows that doldrums in the national economy may be deeper and longer-lasting than previously thought, according to W. P. Carey School economists Dennis Hoffman and Tracy Clark.

Lobbying to stay competitive

KnowWPCarey — Wed, 01 Aug 2007 10:42:35 EST

Two-thirds of all bills introduced in state legislatures are filed at the request of state or local government agencies, business associations, social activist groups, companies, or individual citizens. Most of those are brought to the legislature by legislative advocates, or lobbyists. Indeed, for businesses, having an advocate at the legislature -- both in Washington, D.C. and at the state capitol -- is a crucial part of staying competitive, according to Gerry Keim, associate dean, W. P. Carey MBA.

Loyalty programs: Mining for gold in a mountain of data

KnowWPCarey — Wed, 01 Aug 2007 10:42:35 EST

To customers, there's not much to loyalty programs; on the surface they're usually just a piece of plastic and a "Here's how much you saved" line at the bottom of a receipt. But experts at the W. P. Carey School of Business say that for companies, the programs can be phenomenally more complex and important than taking a trifling percentage off a customer's bill.

Miscellaneous is powerful: the new order of order

KnowWPCarey — Wed, 01 Aug 2007 10:42:35 EST

In the world of the miscellaneous, information isn't the important stuff; it's what happens between those bits and pieces that counts, according to David Weinberger. In "Everything is Miscellaneous: The Power of the New Digital Disorder," Weinberger argues that it is the connections we build around information that create value and meaning in our world.

The British are coming: How Tesco plans to cater to the U.S. market

KnowWPCarey — Wed, 01 Aug 2007 10:42:35 EST

Mark Barratt wants to see Tesco succeed in America. The British expatriate and assistant professor of supply chain management at the W. P. Carey School and his wife have lived in the U.S. for five years, and they still haven't found a one-store replacement for the U.K.'s monster chain. Tesco's five-year, $2 billion commitment to the U.S. is beginning with the opening of 58 stores in California, 31 in Arizona and 13 in Las Vegas, bringing a taste of what's made it the world's third-largest retailer.

Healthcare coverage for all: hits, misses and possible fixes

KnowWPCarey — Wed, 01 Aug 2007 10:42:35 EST

As more and more states begin targeting insurance reform, the costs and problems they face become increasing evident. Still, the current system of health-insurance coverage in the U.S. has been "crumbling for 30 years," says Bradford Kirkmann-Liff, a professor in the School of Health Management and Policy at the W. P. Carey School of Business. In part two of Knowledge@W. P. Carey's coverage of state health care initiatives, Kirkman-Liff joins his colleague, Marjorie Baldwin, director of the health-management school, in offering ideas on reforms that could protect the 45-million Americans without health insurance safety nets.

Podcast: Hedge funds and the collapse of the subprime market

KnowWPCarey — Wed, 01 Aug 2007 10:42:35 EST

The collapse of the subprime market has hit hedge funds hard. According to Anthony Sanders, professor of finance and real estate at the W. P. Carey School of Business, many hedge funds forgot due diligence when the real estate market was hottest, and are now stuck with bad paper. Although the long term effects have yet to be seen, some consumers will feel the repercussions in constrained lending policies. An upturn in the housing market would help, and Sanders thinks that may happen sooner than some have predicted.

Healthcare reform: more chatter or change ahead?

KnowWPCarey — Wed, 18 Jul 2007 10:42:35 EST

If interest in the movie "Sicko" is any indication, insurance woes are moving to the forefront of public concerns. Will we soon see real reform that gives the 45-million Americans with no insurance coverage a safety net? Probably not, according to W. P. Carey School health care experts Marjorie Baldwin and Bradford Kirkman-Liff.

Does consortium bidding by private equity firms undermine competition?

KnowWPCarey — Wed, 18 Jul 2007 10:42:35 EST

Paralleling the boom in private equity deals in recent years has been a growing sense of alarm about these multibillion dollar transactions. One aspect that has elicited special concern is the growing trend of "club bidding" -- the formation of consortia of two or more private equity firms to acquire companies at public auction. But determining whether consortium bidding undermines competition is not a simple matter, according to Elizabeth Bailey, clinical assistant professor of economics at the W. P. Carey School of Business.

Give a Little, Sell a Lot: How Free Samples Influence Shoppers' Buying Behavior

KnowWPCarey — Wed, 18 Jul 2007 10:42:35 EST

The supermarket sample is a familiar ploy, but those tasty bites appear to have more impact than marketers imagined. New research from W. P. Carey marketing Professor Stephen Nowlis shows that customers who sample something pleasant subsequently desire more -- more of anything good -- than those who did not have the treat. Conversely, customers who are exposed to something unappealing end up wanting less. The study has broad implications for retailers.

Unleashing your inner 'Public Speaker Extraordinaire'

KnowWPCarey — Wed, 18 Jul 2007 10:42:35 EST

You don't have to be a high-powered executive, consultant or candidate to find practical lessons in Timothy J. Koegel's "The Exceptional Presenter: A Proven Formula to Open Up! and Own the Room." Whether you're interviewing for a job, teaching a class, speaking at a PTA meeting or leaving a voicemail message, this book has important information that will make you a more dynamic communicator.

All the job's a stage: Role-playing in the services industry

KnowWPCarey — Wed, 18 Jul 2007 10:42:35 EST

People who work in service positions -- police officers, hair stylists, dentists, real estate agents -- are aware that they are on stage, playing a role, while on the job. Playing a role involves knowing when and how that role's being played, and setting some boundaries between you and your clients or customers. In a recent study published in Group & Organization Management, Blake E. Ashforth, management professor at the W. P. Carey School of Business, and his co-authors interviewed 105 different "service agents" about the ways in which they manage the line between who they "really are" and their working role.

Purchasing physician preference items: The search for a cure

KnowWPCarey — Wed, 18 Jul 2007 10:42:35 EST

Today's health care leaders are constantly challenged with the seemingly incompatible goals of improving patient care while developing strategies to reign in skyrocketing costs. Among the many cost-reduction ideas batted around the industry, one of the most promising -- yet often overlooked -- areas is supply management. Recent research by Professor Eugene S. Schneller of the School of Health Management and Policy at the W. P. Carey School, examined the PPI purchasing and standardization efforts of 25 major U.S. hospitals.

Creating fair practices for Chinese investors

KnowWPCarey — Mon, 02 Jul 2007 10:42:35 EST

Too often, Chinese customers buy wealth management products without a real understanding of what they're getting into, according to Xiaoling Wu, deputy governor of the People's Bank of China. Wu was speaking at the Fourth Annual Executive Forum, hosted by the W. P. Carey School of Business and the Shanghai National Accounting Institute. To grow wealth management services in the next decade, she said, Chinese institutions would do well to clarify regulations, communicate with customers, and offer a higher level of service to China's new investors.

Scalping goes upscale: The secondary ticket market's online revolution

KnowWPCarey — Mon, 02 Jul 2007 10:42:35 EST

The Internet has revolutionized ticket scalping, turning it into an electronic extension of the box office, driven by sleek advances in computer hardware and software and by a spate of clever, aggressive online ticketing companies. Experts at the W. P. Carey School of Business discuss the transformation of the secondary ticket market from a seedy, backstreet operation to a sophisticated white-collar trade.

Study shows university research benefits regional economy

KnowWPCarey — Mon, 02 Jul 2007 10:42:35 EST

Some of the benefits of scientific research conducted in universities are obvious. Great laboratory discoveries expand our understanding of the world, cure diseases, and make life better in myriad ways. In a study for the Science Foundation Arizona public-private partnership, a team of scholars from the W. P. Carey School of Business and the Eller College of Management at the University of Arizona have identified another important benefit of university-based research: regional economic development.

Podcast: What information is used to determine stock price?

KnowWPCarey — Wed, 20 Jun 2007 10:42:35 EST

A company's financial statements play a critical part in how its share prices fare in the markets. But financial statements aren't the only sources of information markets use to determine the valuation of a company. Professor Herbert Kaufman, vice chair of the finance department at the W. P. Carey School of Business, teaches a class on the essentials of finance and accounting for the W. P. Carey School's Center for Executive and Professional Development. Here, Kaufman explains the kinds of information markets use, and how they use that information, to determine the value of a company's stock.

How to beat the Devil's Advocate and create an innovation culture

KnowWPCarey — Wed, 20 Jun 2007 10:42:35 EST

Nine simple words, "Let me just play Devil's Advocate for a minute," have torched many a fledgling concept, writes Tom Kelley, author of "The Ten Faces of Innovation." The Devil's Advocate is "the biggest innovation killer in America today." But Kelley has a remedy for the Devil's Advocate: the ten innovation personas that, he writes, can "put the Devil's Advocate in his place."

Shouldering Triple Responsibilities: Social responsibility in Chinese banking

KnowWPCarey — Wed, 20 Jun 2007 10:42:35 EST

Social responsibility is not just about handing out money, or establishing a charity or a fund, said Huaqing Wang, assistant chairman of the China Banking Regulatory Commission and director-general of the China Banking Regulatory Commission (CBRC), Shanghai office. In his keynote address to the Fourth Annual Executive Forum, hosted by the W. P. Carey School of Business and the Shanghai National Accounting Institute, Wang argued that banks must take a broader definition of "service."

Service as innovation: China's coming service revolution

KnowWPCarey — Wed, 20 Jun 2007 10:42:35 EST

Soon, innovation in China will take the form of a move from a primarily manufacturing economy to a more service-oriented one, according to experts gathered at the Fourth Annual Executive Forum in Shanghai. The forum is part of graduation exercises for the W. P. Carey MBA Shanghai, an executive MBA program delivered by the W. P. Carey School of Business and the Shanghai National Accounting Institute.

Tips for techs: keeping your livelihood alive despite IT offshoring

KnowWPCarey — Wed, 20 Jun 2007 10:42:35 EST

Information technology jobs rank high on the list of those most likely to be outsourced to other countries, and thousands of such jobs have been "offshored" in recent years. Despite the trend, there are ways to cut the vulnerability of your IT position, according to Benjamin Shao and Julie Smith David, two professors of information systems at the W. P. Carey School of Business. They offer job-saving tips for techs in a recent paper on the impact of offshore outsourcing.

Following the money: What's really behind the slowdown in Mexican border arrests?

KnowWPCarey — Wed, 20 Jun 2007 10:42:35 EST

In the past year, the U.S. government took strong measures to seal the border with Mexico, and the U.S. Border Patrol is reporting that arrests are down 10 percent from last year. Advocates of tougher enforcement point to these facts and say that the crackdown is deterring would-be illegals. But Dawn McLaren, research economist at the W. P. Carey School of Business and a specialist in border issues, has another explanation. The effect of increased security on the border is actually indirect, she says: much of the recent drop can be attributed to labor economics instead.

A few good professors: U.S. business schools suffer a dearth of doctorates

KnowWPCarey — Wed, 06 Jun 2007 10:42:35 EST

A shortage of business faculty with doctoral degrees has troubled academia for more than a decade, and although universities have deftly adjusted to keep teaching and research alive, the scarcity of Ph.D.s in the marketplace eventually could undermine businesses' ability to compete.

An in-depth look at the modern CPO

KnowWPCarey — Wed, 06 Jun 2007 10:42:35 EST

Today's Chief Purchasing Officers are well-paid, well-educated, and well on their way to finally earning CEO respect, according to a new report from the W. P. Carey School's CAPS Research. Thomas Hendrick, Ph.D., professor emeritus of supply chain management at the W. P. Carey School, examines these and other attributes of today's CPOs to better understand the men and women at the top of the corporate procurement field.

A tale of two professions: why you may know a hospitalist but not an RCT

KnowWPCarey — Wed, 06 Jun 2007 10:42:35 EST

Since their first appearance some 20 years ago, "hospitalists" -- doctors who manage patient care during a hospital stay -- have assumed an increasingly complex role in the healthcare system. Conversely, the attempt by the AMA to address a nursing shortage by the creation of a bedside care worker called the "registered care technician" was a short-lived and unsuccessful experiment. Professor Eugene Schneller of the School of Health Management and Policy at the W. P. Carey School, examined the successful hospitalist movement and the failed RCT implementation in a chapter for the recently-published "Managing Change in the Public Services."

Kitchen-table dreamers find support system in Ladies Who Launch

KnowWPCarey — Wed, 06 Jun 2007 10:42:35 EST

Is there something different about female entrepreneurs? The authors of "Ladies Who Launch: Embracing Entrepreneurship & Creativity as a Lifestyle" say yes. Women's entrepreneurial success (1) doesn't have to start with a traditional business plan, (2) is a process that can and should be enjoyed, and (3) has everything to do with feminine intuition and nurturing skills, according to authors Victoria Colligan and Beth Schoenfeldt.

Predicting more and enjoying it less: How 'anticipated regret' takes the fun out

KnowWPCarey — Wed, 06 Jun 2007 10:42:35 EST

When people make predictions about certain events, their enjoyment in watching those events decreases, according to a recent study by W. P. Carey School marketing professors Naomi Mandel and Stephen Nowlis. This is likely the result of "anticipated regret" -- the fear that they may be proven wrong. In fact, the anxiety caused by the concern that one might lose may be more powerful than the sting of actually losing.

Podcast: Financial statements tell compelling stories about companies

KnowWPCarey — Wed, 06 Jun 2007 10:42:35 EST

Managers, markets, and the many players who must contract with a firm: all three groups need credible information about companies. The financial statement -- which includes the income statement, balance sheet and statement of cash flows -- tells a compelling story when read as a whole. Phil Drake, clinical professor of accountancy at the W. P. Carey School, talks about the information contained in the financial statement and who needs to know it.

Myth and misunderstanding in Arizona

KnowWPCarey — Mon, 04 Jun 2007 10:42:35 EST

How much do you know about the economy of your state or region? Does it matter if the general public understands their economy? Robert E. Mittelstaedt, dean of the W. P. Carey School of Business, recently administered a pop quiz at a lunch meeting, and the business leaders in attendance discovered that their knowledge of Arizona is laced with misperceptions. No matter where you live or do business, getting the facts about the economy is important. "Without more knowledge of economic interactions and realities, how can voters make sound judgments on economic issues that show up on the ballot, like bond and tax proposals?" Mittelstaedt asks.

Craig Weatherup: Learning from success and failure

KnowWPCarey — Wed, 23 May 2007 10:42:35 EST

The essence of leadership is the ability to make the right decision, and to be able to do that leaders need breadth of experience. Take risks, advises Craig Weatherup, retired chairman and CEO of The Pepsi Bottling Group, and open yourself to new experiences in your personal and professional life. And, understand that failure is a great teacher. Weatherup addressed some 650 W. P. Carey MBA, masters degree and doctoral graduates at the Spring 2007 convocation.

Innovate competitively by using new technology, namely academics

KnowWPCarey — Wed, 23 May 2007 10:42:35 EST

As companies shift from product to services focus, they face the challenge of a larger, more dynamic and more diverse customer base. Some are turning to universities for assistance from academics to find ways to improve operations or customer relations. It's a mutually beneficial relationship: professors and graduate students get first-hand access to business realities while companies receive data that can translate to new, innovative strategies. Recently top executives met with a group of marketing academics at the 42^nd American Marketing Association Sheth Foundation Doctoral Consortium hosted by the W. P. Carey School of Business.

Podcast: Managing the business of health care

KnowWPCarey — Wed, 23 May 2007 10:42:35 EST

Peter Drucker, sometimes called the father of modern management, once commented that health care organizations are the most difficult to manage of all organizations. For example, American health care is defined by legislative mandate yet implemented in the private sector. Further complicating the system is the fact that the majority of physicians who deliver hospital care are independent contractors and not employees of the hospitals. Indeed, clinicians at all levels need management skills, not only to navigate Medicaid and Medicare regulations, but also to build and operate new programs. The W. P. Carey School's David Patton, professor of practice in the School of Health Management and Policy, is teaching a series of courses designed to introduce these skills to physicians, nursing executives and others who run this complex system.

Christopher Cole: Emerging trends in real estate investment

KnowWPCarey — Wed, 23 May 2007 10:42:35 EST

"In real estate, if you keep yourself in front of long-term demographic trends, you will prosper," observes Christopher Cole, founder and chief executive of the Cole Companies, who received the Distinguished Achievement Award at the W. P. Carey undergraduate convocation recently. A survivor of Phoenix's boom-and-bust real estate markets for more than 28 years, Cole maintains real estate as an investment class is in its baby years. The biggest inflows of capital, he says, have yet to happen.

Working on master data management? Smart strategists plan for convergence

KnowWPCarey — Wed, 23 May 2007 10:42:35 EST

Chances are, service-oriented architecture and an active data warehouse are coming to your IT shop, if they haven't already done so. According to Michael Goul, professor of information systems at the W. P. Carey School of Business, those technologies will dovetail with master data management (MDM), and smart companies should plan for the convergence that's on the way.

Product contagion: How consumers' fear of cooties can cut into profits

KnowWPCarey — Wed, 23 May 2007 10:42:35 EST

Everyone needs garbage bags. Women need maxi-pads. Cat people need cat litter. And parents with babies buy diapers. But according to Andrea Morales, an assistant professor of marketing at the W. P. Carey School of Business, the fact that we need these items doesn't change the fact that we can be repulsed by them. And if retailers were smart, says Morales, they would be sure to keep these undesirable items away from other, less icky products -- or else.

Not so fast: Closer look at the data reveals weaknesses in Arizona economic growth

KnowWPCarey — Mon, 21 May 2007 10:42:35 EST

Arizona's record of economic progress in recent years is well documented. In 2006, the state led the nation in population and job growth and was fifth in growth of personal income. But a close examination of more detailed data reveals important weaknesses in the state's surging economy, according to economist Lee R. McPheters, senior associate dean of the W. P. Carey School of Business, in a recent speech to the Economic Club of Phoenix. In perhaps the most telling measure of economic well-being -- per capita income -- Arizona actually is lagging most of the rest of the United States, he said.

U.S. appetite for ethanol fuels rise in Mexican corn prices

KnowWPCarey — Wed, 09 May 2007 10:42:35 EST

Tortillas, and the corn used to make them, have been a Mexican staple for thousands of years. So it's no surprise that tens of thousands packed into Mexico City's central Zocalo plaza to protest a spike in the price of tortillas and other staple goods. The price increase and subsequent demonstration were unwelcome developments in a country that had just endured a bitterly contested presidential election. While these events in Mexico may seem unrelated to the United States' efforts to wean itself from foreign oil, they are, in fact, closely linked.

'Deep Economy' challenges the more-is-better worldview

KnowWPCarey — Wed, 09 May 2007 10:42:35 EST

In a world economy where growth serves as the measurement of a nation's success, we are programmed in every way to equate "more stuff" with positive outcomes. A groundswell of thinking, however, suggests that the gospel of eternal growth as we know it can't exist forever. In his book "Deep Economy: The Wealth of Communities and the Durable Future," Bill McKibben writes that we're headed for certain disaster if the current growth models continue.

The Internet grows up: What Web 2.0 means to business

KnowWPCarey — Wed, 09 May 2007 10:42:35 EST

When a big software company releases a new product it often comes with the now ubiquitous "version" number: 1.0, 2.0, etc. In the past few years, a second version of the Web has emerged with the moniker Web 2.0. Not a single technology or product, Web 2.0 is a term meant to encompass many technologies and signifies that the way we use the Internet is evolving. W. P. Carey School professor of supply chain management Kevin Dooley and colleague Raghu Santanam, a professor of information systems, say that the new-and-improved web has very real implications for how we interact with and profit from the web.

Brand equity: It's worth more than companies realize

KnowWPCarey — Wed, 09 May 2007 10:42:35 EST

Plenty of consumers sip Maxwell House coffee because it's "good to the last drop," and would proudly answer "yes" if asked, "Doesn't your dog deserve Alpo?" The brand-building punch of such slogans helps companies turn shoppers into customers. But if brand equity boosts sales to consumers, doesn't it make sense that it also affects relationships with resource suppliers, corporate partners, government bodies and other constituencies? Cheryl Burke Jarvis, professor of marketing at the W. P. Carey School of Business, thinks that companies are undervaluing brand equity in their financial calculations.

Where are the shareholders' mansions? CEOs' home purchases, stock sales, and subsequent company perf

KnowWPCarey — Wed, 09 May 2007 10:42:35 EST

While U.S. corporate CEOs acquire enormous estates, shareholders are being left out in the cold. In a new study, W. P. Carey finance professor Crocker Liu, director of the school's Center for Real Estate Theory and Practice, and David Yermack, professor of finance at New York University, examined the size, cost, and financing of the primary residences of CEOs of the Standard & Poor's 500. They found that when CEOs purchase very expensive or particularly large estates, their companies' stock performance falters.

Podcast: How Strategic Sourcing Became the Golden Goose

KnowWPCarey — Wed, 09 May 2007 10:42:35 EST

Strategic sourcing, including early supplier involvement and outsourcing, provides significant competitive advantage to companies and represents a fundamental change in the way firms drive the bottom line. Thomas Choi, professor of supply chain management at the W. P. Carey School of Business, looks back 20 years to explain how the relatively mechanical procurement function evolved into supply chain management, a sophisticated approach to managing cost, increasing quality and driving profitability.

Women and minorities' high quit rates make corporate diversity difficult

KnowWPCarey — Wed, 25 Apr 2007 10:42:35 EST

Many companies have noted that attrition among women and minorities in the professional and managerial ranks hampers progress on building a diverse workplace. A new study that analyzed quit statistics for a staggering 475,458 professionals is the first to conclusively prove that corporations are losing these employees at rates higher than they're losing white employees. W. P. Carey management Professor Peter Hom explains that although the study does not address the reasons why women and minorities leave, it does serve as a launching point for discussion. If corporations don't do something to address the problem, he says, the diversity pipeline will continue to be dry.

Business and the media: A rapidly evolving relationship

KnowWPCarey — Wed, 25 Apr 2007 10:42:35 EST

Cognizant of the way information ricochets through the media these days, companies need to redouble efforts to be sure that the information they release about themselves is the right data at the moment, and that it's accurately transmitted. In a recent speech to the Economic Club of Phoenix, Andrew Leckey, director of the Donald W. Reynolds National Center for Business Journalism at ASU's Walter Cronkite School of Journalism and Mass Communication, discussed the changing relationship between business and the media.

Straight and narrow: Steering an ethical course through international waters

KnowWPCarey — Wed, 25 Apr 2007 10:42:35 EST

For Marianne Jennings, a healthy market economy depends on four pillars -- business, investors, government and customers. Each relies on the others in a symbiotic relationship that leads to mutual benefit and smooth operations. But when ethical lines are crossed, even in just one of the four areas, everyone is at risk. "If one of these [four groups] falls, the system falls," said Jennings, a professor of legal and ethical studies at the W. P. Carey School of Business, during a recent speech in Mexico City.

Be your own disruptor: Out-innovate your competitors and win

KnowWPCarey — Wed, 25 Apr 2007 10:42:35 EST

"85 percent of CEOs have innovation on a short list of strategic priorities. But then they put it off," said Tom Kelley, the featured speaker at Arizona State University's 2007 Design Excellence Dinner. "In principle, everybody's for innovation, but in practice innovation gets put in the important-but-not-urgent pile." Kelley, author of "The Art of Innovation" and "The Ten Faces of Innovation," warns that putting it off until tomorrow can cause a firm to lose its competitive advantage.

The Neglected Moneymaker: Customer Retention

KnowWPCarey — Wed, 25 Apr 2007 10:42:35 EST

A lot of companies focus on competition, innovation and cost-cutting to drive cash flow. But according to Ruth Bolton, marketing professor at the W. P. Carey School of Business, successful firms understand that cash flow is derived from customers. When customers are more satisfied and loyal, they buy more and remain customers longer. "That delivers more profitability to the bottom line," she says.

Public opinion guru shares his wisdom in 'Words That Work'

KnowWPCarey — Wed, 25 Apr 2007 10:42:35 EST

The title of the new bestseller by Republican pollster Frank Luntz may be somewhat misleading -- an ironic twist given the subtitle "It's Not What You Say, It's What People Hear." The title of "Words That Work" snags readers looking for a primer on effective language and usage, but the book turns out to be something different. Luntz does deliver some language lessons, however he seems more interested in telling tales from the political trenches.

Podcast: Learning to avoid the pitfalls in project management

KnowWPCarey — Wed, 25 Apr 2007 10:42:35 EST

The planning, execution, and completion of projects is a challenge for organizations in both the public and private sectors; projects that are either late or plagued with problems continue to make the news. In this interview, supply chain management Professor Dwight Smith-Daniels -- who has been teaching project management courses for more than 15 years -- discusses four major categories of business projects and the lessons to be learned from both successful and failed projects.

Reports of the Phoenix real estate market's demise have been greatly exaggerated

KnowWPCarey — Fri, 20 Apr 2007 10:42:35 EST

Phoenix, now the fifth largest city in the United States, could be the poster child for metropolitan areas where a bursting residential housing bubble has created economic discord. After parsing data from both the commercial and residential sectors, however, the Phoenix real estate market appears much stronger than the national press paints it, according to Larry Seay, chief financial officer of Phoenix-based Meritage Corp., and Crocker Liu, McCord Chair in Real Estate at the W. P. Carey School of Business. Seay and Liu spoke at an April 5 seminar in Phoenix entitled "Frontiers in Real Estate: Hedging Your Bets," presented by the W. P. Carey School's Center for Real Estate Theory and Practice.

Know-How: leadership skills for 21st century business

KnowWPCarey — Wed, 11 Apr 2007 10:42:35 EST

Ram Charan's "Know-How: The 8 Skills That Separate People Who Perform From Those Who Don't" could be about politics or about any meaningful human endeavor. Instead, it is about business. The author's insights have made him a renowned figure in the realm of corporate consultancy, and his work has garnered praise from leaders such as GE's Jack Welch and "Seven Habits" guru Stephen R. Covey. In "Know-How," Charan does not offer any easy answers, but he does point out the critical nature of what can happen when an industry does not respond immediately to signals of change (both internal and external) relevant to its survival.

Cover your basis: hedging real estate risk

KnowWPCarey — Wed, 11 Apr 2007 10:42:35 EST

Since the turn of the millennium, real estate has become one of the fastest growing investment sectors, not just in the United States but globally as well. But as much as we would like to think otherwise, there's considerable risk involved in real estate investing. One way to ameliorate that risk is through hedging practices, according to Robert Edelstein, a real estate professor at the Haas School of Business at the University of California, Berkeley, and Anthony Sanders, the Bob Herberger Arizona Heritage Chair in Real Estate and Finance at the W. P. Carey School of Business.

Attitude adjustment: judges' views of auditors take a dive

KnowWPCarey — Wed, 11 Apr 2007 10:42:35 EST

The attitudes judges hold toward auditors have eroded since the accounting debacles of Enron, WorldCom and others earlier in the decade. Not only do judges have lesser views of auditors, they also have conflicting views with auditors. In fact, auditors see their roles and standards differently than those in both legal and business communities. That expectations gap is one of the problems facing auditors today, according to Philip Reckers, Marianne Jennings and Kurt Pany at the W. P. Carey School of Business.

Accrual intentions: Investors miss vital clues for smart stock buys

KnowWPCarey — Wed, 11 Apr 2007 10:42:35 EST

There are plenty of judgment calls associated with accrual accounting, giving managers some wiggle room in recognizing expenses and income. But can investors spot the wiggle? Do they identify and price that discretionary portion of earnings correctly? The W. P. Carey School's Dahlia Robinson looked at the issue and discovered that most investors don't. There's opportunity here for investors with the savvy to take advantage of the price corrections that follow when earnings realities catch up with earnings-release hype. But Robinson questions whether there's a regulatory imperative lurking in her findings, as well: "Maybe requiring some accrual information in the earnings announcement would be beneficial for the market."

Podcast: A look at the subprime market

KnowWPCarey — Wed, 11 Apr 2007 10:42:35 EST

Marginally qualified buyers who rode subprime loans and deals such as zero-percent-down mortgages into the housing market are facing hard times this year. Many whose credit histories indicated a tendency to default are in fact losing their houses. And with housing prices edging down from last year's high points, institutional investors may find they will not be able to fully recover their investments. Adding pain, a large number of adjustable rate mortgages (ARM) are scheduled to reset this year, raising payments on some mortgages 65 to 100 percent. Finance and real estate Professor Anthony Sanders takes an in-depth look at the most troubled sectors of a tricky real estate market.

Making it personal: IBM's Customer Obsession Program

KnowWPCarey — Wed, 11 Apr 2007 10:42:35 EST

IBM's Customer Obsession Program (COP) is focused on achieving a world-class client experience, service delivery that is consistently the best, and a passionate commitment to the customer. The goal is to communicate to customers that a specific person at IBM cares whether their business does well. In a recent speech at an executive education symposium sponsored by the Center for Services Leadership at the W. P. Carey School, Scott Dougall, general manager of IBM's GTS Americas Technical Support, explained how "customer-obsessed" service results in customer relationships that drive profitability in the good times and sustain you through the bad.

AZ state spending: Up or down?

KnowWPCarey — Tue, 10 Apr 2007 10:42:35 EST

Spending by state government in Arizona is on the rise. But when viewed over the last 15 years, adjusted for both inflation and population growth -- and measured against how much money taxpayers earned in Arizona -- the increase in state spending has not kept pace, according to Dennis Hoffman, director of the L. William Seidman Institute, and Tracy Clark, associate director of the JPMorgan Chase Economic Outlook Center.

Brian Walker: Lessons from crises and recovery

KnowWPCarey — Wed, 28 Mar 2007 10:42:35 EST

The chair reserved for the president and CEO at Herman Miller, a successful and innovative office furniture maker, must have appeared comfortable when Brian Walker took the helm in 2000, but it soon became a hot seat. After the business furniture industry collapsed in 2001, Walker orchestrated the rebuilding of the company. Now leaner than before, Herman Miller has expanded its global footprint and has refocused on green issues without relinquishing its leadership as a design innovator. The W. P. Carey School of Business honored Walker recently as the Dean's Council of 100 Executive of the Year.

Podcast: Tips for filing your 2006 tax return

KnowWPCarey — Wed, 28 Mar 2007 10:42:35 EST

With tax returns due on April 16, we get an extra day to file this year. In a recent interview, Professor Charles Christian, director of the School of Accountancy at the W. P. Carey School of Business, shared some information that individuals should consider as they prepare their 2006 personal income taxes. A well-known tax researcher, Christian was appointed recently to a three-year term on the IRS Advisory Council. The council suggests operational improvements, offers constructive observations about current or proposed IRS policies, programs and procedures, and advises the IRS on particular issues having substantive impact on federal tax administration.

Another steak or another year of life? Consumption choices and the rise in health spending

KnowWPCarey — Wed, 28 Mar 2007 10:42:35 EST

Americans currently spend about 15 percent of gross domestic product (GDP) on health care, but new research is projecting that by 2050, we'll be spending more than 30 percent of our income on health. "It's true that the Congressional Budget Office's long-range forecast shows the deficit exploding due to health spending that's increasing faster than GDP," said economist Charles Jones of the University of California, Berkeley. "But before we think about what the solution is, understanding why health shares are rising is a critical ingredient."

Keeping promises: Closing the services gap

KnowWPCarey — Wed, 28 Mar 2007 10:42:35 EST

Would your customers say that the services they received from your company are the services they expected to get? If not, then your company may suffer from a services quality gap. Marketing professor Mary Jo Bitner, the academic director of the Center for Services Leadership at the W. P. Carey School of Business, says succeeding in services is "all about promises." She and her collaborators have developed a strategic approach that enables companies to evaluate how well they keep their promises and how to close the gaps.

Economists are from Mars, policymakers are from Venus: Translating the language of science

KnowWPCarey — Wed, 28 Mar 2007 10:42:35 EST

While many scientists applaud former Vice President Al Gore and his documentary, "An Inconvenient Truth," some scientists have said that the film exaggerates the nature of environmental problems and/or makes conclusions that the science doesn't uphold. Part of the problem may be that scientists and policymakers don't speak the same language. The controversy highlights an enduring problem: how to translate the highly specialized language of science. The 18th Annual Health Economics Conference hosted by the School of Health Management and Policy at the W. P. Carey School of Business recently tackled this problem in the context of health policy.

Consumer preferences and the relationship between health and consumption

KnowWPCarey — Wed, 28 Mar 2007 10:42:35 EST

In an ideal world, consumers' choices in relation to the incremental costs of producing goods and services would dictate what gets produced, and at what price. Choices should tell us about preferences. But it's not an ideal world and it is harder for analysts to uncover preferences when there are arbitrary, institutionally-imposed, incentives or distorted messages. In his keynote presentation at the 18th Annual Health Economics Conference, W. P. Carey Economics Professor Kerry Smith addressed the issue of how to determine whether consumers' health spending choices were the result of institutionally-imposed incentives, misleading messages, or rational behavior.

Study supports reining in smoking ads

KnowWPCarey — Wed, 14 Mar 2007 10:42:35 EST

Research co-authored by marketing Professor Rajiv K. Sinha of the W. P. Carey School of Business shows that the later in life people start smoking, the more likely they are to quit. And, the longer people wait to light up, the more likely it is that they never will smoke at all. But those who take that first puff early in life are most likely to be doomed to a lifelong addiction. "Our findings support the congressional move to further limit cigarette advertising, as they provide evidence that targeting youth has the potential of converting 'never smokers' to 'forever smokers,'" Sinha says.

IT evolution, Part 2: Could REA analysis topple ERP systems?

KnowWPCarey — Wed, 14 Mar 2007 10:42:35 EST

Enterprise resource planning (ERP) systems have a growing reputation for being big, slow, pricey and just about impossible to change once they're installed. Those aren't exactly promising survival traits in competitive environs that demand IT agility. In the conclusion of our two-part story, Julie Smith David, associate professor of information systems at the W. P. Carey School of Business, discusses REA (resources, events and agents) analysis, a method of system modeling that may meet the information and agility requirements of corporate computing today.

Podcast: Learn to read the economic tea leaves

KnowWPCarey — Wed, 14 Mar 2007 10:42:35 EST

Are the chances of a recession increasing, and if so, should we be altering our behavior? Economists use various economic indicators to track segments of the economy, to explain current behavior and project future activity. Dennis Hoffman, professor of economics and director of the L. William Seidman Research Institute at the W. P. Carey School, talks about these bellwethers, and what they say about the current economic situation.

Trials and tribulations: Attorney Mark Belnick talks about Tyco

KnowWPCarey — Wed, 14 Mar 2007 10:42:35 EST

In an early morning speech recently, attorney Mark Belnick recounted his career as a litigator at a powerful New York firm, and the events that made him a defendant in one of the Tyco corruption cases. Acquitted on criminal charges, Belnick served his message like a cup of black coffee to the W. P. Carey MBA -- Executive Program students in the audience: cutting corners ethically leaves you with no place to stand when things go wrong.

Act fast! CPOs have little time to deliver big results

KnowWPCarey — Wed, 14 Mar 2007 10:42:35 EST

After watching dozens of chief purchasing officers come and go as the leaders of supply chain operations in 30 of the world's largest companies, researchers came to a simple conclusion: The CPO's chair has become a true corporate hot seat. The study, "Supply Leadership Changes," was conducted on the behalf of CAPS Research, a nonprofit research organization supported by the W. P. Carey School of Business and the Institute of Supply Management.

Benchmark report: A snapshot of cross-industry trends in purchasing

KnowWPCarey — Wed, 14 Mar 2007 10:42:35 EST

With this issue Knowledge@ W. P. Carey inaugurates a series of stories about the benchmark reports issued by CAPS Research, a research center co-sponsored by the W. P. Carey School of Business and the Institute of Supply Management. The first, its cross-industry report, reveals trends that have been developing over time. "The reports offer companies the opportunity to take a snapshot of where they are relative to their peers," says Steven Wade, director of benchmarking programs.

Wikinomics challenges old-economy business model

KnowWPCarey — Wed, 14 Mar 2007 10:42:35 EST

The premise of best-selling author Don Tapscott's new book, "Wikinomics," is a message that is either frightening or exhilarating, depending on your place in the business world and your willingness to embrace the inexorably rising tide of mass collaboration in a digitally-driven culture. Like Thomas Friedman's "The World is Flat" and James Surowiecki's "The Wisdom of Crowds," it already has begun to wake up and shake up global organizations from top to bottom.

Now for the good news: U.S. exports strong, especially in the West

KnowWPCarey — Wed, 28 Feb 2007 10:42:35 EST

In 2006, the United States' trade deficit in goods was $836 billion, a record for the fifth year in a row and an 80 percent increase from four years earlier. But there actually is good news for the United States in the latest international trade data, according to researchers at the W. P. Carey School of Business. In 2006, the U.S. exported $1.04 trillion in goods, up almost 16 percent from 2005. While all U.S. states participate in exports, the strongest region now -- both in volume of exports and export growth -- looks to be the West.

Focus on global sourcing: Strategies for success

KnowWPCarey — Wed, 28 Feb 2007 10:42:35 EST

Across virtually all industries and geographic regions, manufacturers share one common goal: to increase profitability by decreasing costs. A growing number of manufacturers, both in the United States and around the world, have embraced global sourcing as a fast-track method for achieving that goal. However, when it comes to the effectiveness of most companies' global sourcing initiatives, there is plenty of room for improvement, finds a new study from Professor Robert Monczka of CAPS Research, a nonprofit supply chain research organization jointly sponsored by the Institute for Supply Management and the W. P. Carey School of Business.

Podcast: Learn the principles of effective leadership

KnowWPCarey — Wed, 28 Feb 2007 10:42:35 EST

Great companies and great leaders are often synonymous, but what does it take to be a great leader? Angelo Kinicki is professor of management at the W. P. Carey School of Business. As a consultant, Kinicki often works with top management teams. Here, Kinicki discusses the principles of transformational and managerial leadership in increasing the efficiency of executives and the companies they lead.

IT evolution: Why ERP systems face extinction

KnowWPCarey — Wed, 28 Feb 2007 10:42:35 EST

With any luck at all, there isn't a giant asteroid headed our way soon, but in the world of information technology, an extinction event may be on the horizon. Enterprise resource planning (ERP) systems -- those monolithic software packages that evolved to tame companywide data -- may be heading the way of trilobites and dinosaurs. Once in place, ERP systems are rigid, says Julie Smith David, an associate professor of information systems at the W. P. Carey School of Business -- not the adaptive trait that leads to success in a dynamic environment.

Shaking the world: The economic ascension of China

KnowWPCarey — Wed, 28 Feb 2007 10:42:35 EST

"Let China sleep, for when she wakes, she will shake the world." Napoleon's words seem to be the inspiration behind the title of James Kynge's book, "China Shakes the World: A Titan's Rise and Troubled Future -- and the Challenge for America." Kynge's book centers on "the appetite that the world's most populous nation unleashed on the planet in the first few years of the twenty-first century" and, more specifically, how that appetite has affected the world; how it has affected China itself; and the price that the world has paid for the behemoth's economic ascension.

Getting out early: An analysis of market-making activity

KnowWPCarey — Wed, 28 Feb 2007 10:42:35 EST

Stock market analysts move markets, and not just because investors believe in the validity of their research and legitimacy of their opinions. In an important new study, Assistant Professors Jennifer L. Juergens and Laura Lindsey examined affiliated market-making activity around analyst recommendation changes and found a dramatic effect on trading activity for the issuing brokerage firms around both upgrades and downgrades.

Family values: Building a billion-dollar business

KnowWPCarey — Wed, 28 Feb 2007 10:42:35 EST

Risk management is the major change that has swept the construction industry in the past decade, according to Robert G. Hunt, chairman and chief executive officer of Hunt Construction Group. In a speech before the W. P. Carey School's Economic Club of Phoenix, Hunt described how a family business that is one of the largest construction firms in the country builds success.

Podcast: The tangled web of illegal immigration -- what do we really know?

KnowWPCarey — Wed, 14 Feb 2007 10:42:35 EST

The ascent of a Democratic majority in Congress shifts the balance in the debate on illegal immigration. Voices on both sides quote numbers to prove their points, but as decision makers formulate policy, it's important to separate myth from reality. Dawn McLaren, research economist at the W. P. Carey School of Business, cuts through the spin about the demographics and the economic impact of the immigrant population and uncovers some commonly held assumptions that may not be true.

Heart smart management: Emotional intelligence in the corporate world

KnowWPCarey — Wed, 14 Feb 2007 10:42:35 EST

Emotional intelligence (EI) is a measure of how well individuals can manage their own moods, and how well they can read the moods of others. Though some critics question the scientific validity of EI, real-world results have been promising. According to multiple studies, companies that emphasize EI have reported increased productivity, higher sales, happier employees and lower staff turnover.

Get ready for tough choices or tough times, educators warn

KnowWPCarey — Wed, 14 Feb 2007 10:42:35 EST

"Tough Choices or Tough Times" is not recommended reading for bedtime, if you're hoping for a good night's sleep. The 26-member Commission on the Skills of the American Workforce's new report updates its 1990 report in which a wakeup call was issued amid the emerging trend of economic globalization. This new 2006 report is no jargon-laden bureaucratic screed, but a plainspoken and urgent proposal for a top-to-bottom reworking of the American education system.

The gentle science of persuasion, Part 6: Scarcity

KnowWPCarey — Wed, 14 Feb 2007 10:42:35 EST

In the digital age, more information is available to more people than ever before. But not all the information. Truly unique and rare information -- a hot stock tip, for instance, or a warning of an impending market shift -- remains a near-priceless commodity. Smart businesspeople want the inside edge, and they're willing to pay to get it. In the final installment of a six-part series on the science of persuasion, psychology and marketing Professor Robert Cialdini discusses how the principle of "scarcity" can be leveraged to convince people to buy into our suggestions, heed our advice or accept our business proposals.

Do knowledge management incentives pay off?

KnowWPCarey — Wed, 14 Feb 2007 10:42:35 EST

When employees make up their minds that a knowledge management (KM) system is more trouble than it's worth, they simply stop using it. This decision affects the employer's bottom line and is a crucial factor in whether the big aspirations for a KM system pan out. Indeed, such investments frequently under-perform, which leaves companies wondering how they can get more value out of their knowledgebases. Govind Iyer and Sury Ravindran, associate professors of information systems at the W. P. Carey School, decided to look at the problem from a new angle -- and found some surprising results.

Flexibility's price tag: gain time, lose career footing

KnowWPCarey — Wed, 14 Feb 2007 10:42:35 EST

Flextime, telecommuting and part-time employment are popular employee enticements. But, are these attractive benefits also drawbacks for corporate warriors who choose to utilize them? Often they are, according to research conducted by Philip Reckers, an accountancy professor at the W. P. Carey School of Business. Reckers and his coauthors found that those who work flextime and part-time hours were less likely to be picked for the best assignments and their career prospects took a hit. What's more, the negative impact was greater for men than for women.

Economic outlook: A healthy economy if policymakers let the engine go

KnowWPCarey — Wed, 14 Feb 2007 10:42:35 EST

When it comes to the economic outlook for 2007, Nobel Laureate and W. P. Carey School professor of economics Edward Prescott is optimistic. "The economy will be healthy," Prescott says, "unless Congress implements policies that would impede economic growth -- such as policies that would increase tax rates or regulations that would adversely affect productivity growth."

Insuring the uninsured: President Bush joins the healthcare debate

KnowWPCarey — Wed, 31 Jan 2007 10:42:35 EST

President Bush's private-insurance initiative, unveiled during the 2007 State of the Union address, keeps alive the debate over how to get at least some of the estimated 47 million uninsured Americans into the system. Experts at the School of Health Management and Policy at the W. P. Carey School of Business offer two perspectives. Bradford Kirkman-Liff, professor of health policy and biotechnology, sees the president's initiative as a missed opportunity. School director and Professor Marjorie L. Baldwin views it as a constructive step toward expanding health care coverage through market solutions.

The gentle science of persuasion, Part 5: Authority

KnowWPCarey — Wed, 31 Jan 2007 10:42:35 EST

People trust experts. In courtrooms, expert witnesses sway the views of jurors. On television, expert analysts shape public opinion on everything from politics to sports. And in the real world, people give their trust -- and their money -- to experts every day, says psychology and marketing Professor Robert Cialdini. In the fifth of a six-part series, Cialdini discusses the principle of "authority" -- one of the six basic principles of persuasion.

Can the government control corporate fraud?

KnowWPCarey — Wed, 31 Jan 2007 10:42:35 EST

Can the government control corporate fraud? Probably not, according to Securities and Exchange Commissioner Paul Atkins, and besides, ever-escalating regulation likely would hinder a free-market economy. Atkins, who has devoted much of his 20-plus year career to helping law enforcement investigate and rectify investing scams, recently spoke to students at the W. P. Carey School of Business on the subject of business ethics.

Why doctors are reluctant to swallow the IT pill

KnowWPCarey — Wed, 31 Jan 2007 10:42:35 EST

In a recent study, researchers at the W. P. Carey School of Business found that only about a third of doctors use computers for patient notes, and about 10 percent prescribe electronically. Michael Furukawa, Jonathan Ketcham and Mary Rimsza were trying to uncover the reasons for this reluctance to adopt information technology and how the situation might be changed. Their conclusion: If you want to understand how likely doctors are to use new office technologies, look first at how they get paid.

Why don't the statistics show the boom? Unmeasured investment in the 1990s

KnowWPCarey — Wed, 31 Jan 2007 10:42:35 EST

There's a large discrepancy between the number of per capita hours people actually worked in the 1990s and the number of hours predicted by the official statistics and the standard growth model. In their most recent paper on the topic, Nobel Laureate and W. P. Carey professor of economics Edward Prescott and his colleague Ellen McGrattan find that the discrepancy between the actual data and the official statistics comes from the fact that the official statistics don't account for investments in intangible capital.

Master of the domains: The revival of Network Solutions

KnowWPCarey — Wed, 31 Jan 2007 10:42:35 EST

In 2003, when corporate turnaround wizard Champ Mitchell became chairman and CEO of Network Solutions, the company was in serious trouble. At a recent luncheon meeting of the W. P. Carey School's Economic Club of Phoenix, Mitchell described how he rebuilt the crumbling corporation into "the most successful online company in the world."

Podcast: The big gamble -- Super Bowl advertising

KnowWPCarey — Wed, 31 Jan 2007 10:42:35 EST

In the Super Bowl advertising arms race, companies spend millions on mere seconds. Is it worth it? Nancy Stephens, associate professor of marketing, says no. Companies that spend huge sums hoping to hold the attention of the large Super Bowl audience compete with the party atmosphere around the big screen TV. But Ray Artigue, executive director of the W. P. Carey MBA Sports Business Program and former senior vice president of marketing for the NBA's Phoenix Suns, says the gamble can be worth it, depending on the product or service being promoted and the size of its market.

Two heads are better than one: Multi-physician practices improve heart patients' outcomes

KnowWPCarey — Wed, 17 Jan 2007 10:42:35 EST

Although single-physician practices still are dominant in the United States, multi-physician practices tend to provide better care for people who suffer heart attacks. Heart attack patients receive less-timely treatment and have worse chances of survival if they are treated by solo physicians rather than physicians from larger practices, according to a new study authored by Jonathan Ketcham, an assistant professor at the W. P. Carey School of Business.

Podcast: Subsidized stadiums -- If you build it they will come?

KnowWPCarey — Wed, 17 Jan 2007 10:42:35 EST

The sports industry operates by its own set of rules when it comes to achieving and measuring success. In Part Two of our discussion, Knowledge@W. P. Carey looks at the economic impact teams have on local economies. Ray Artigue, executive director of the W. P. Carey MBA Sports Business Program and former senior vice president of marketing for the NBA's Phoenix Suns, discusses publicly-funded stadiums and other aspects of the sports business. Joining him is Robert Stearns, professor of practice in the W. P. Carey School's finance department and chairman and chief executive officer of Quepasa Corporation.

New ethics rules change the lobbying landscape

KnowWPCarey — Wed, 17 Jan 2007 10:42:35 EST

Strict new ethics rules governing lobbying interactions with members of Congress make it more crucial than ever for businesses to diversify their influence-building strategies. The W. P. Carey School's management Professor Gerry Keim, who studies the relationships between business and government, says companies need to develop grassroots advocacy networks among employees.

Doing business on the U.S.-Mexico border

KnowWPCarey — Wed, 17 Jan 2007 10:42:35 EST

The area north and south of the U.S.-Mexico border is a unique region that is economically distinct from the rest of the United States and Mexico. Although political storms continue to rage on both sides of the border, everyday business goes on and will continue, albeit at a slightly subdued pace, according to W. P. Carey experts Dawn McLaren, a research economist, and Jose Mendez, professor of economics and faculty director of the W. P. Carey MBA Mexico City program.

The Long Tail: Wagging the dog in the Information Age

KnowWPCarey — Wed, 17 Jan 2007 10:42:35 EST

Internet technology now enables consumers to access a limitless marketplace with the click of a mouse. Wired magazine editor Chris Anderson in 2004 coined the catchphrase "The Long Tail" to describe this seismic shift. His book, "The Long Tail: Why the Future of Business is Selling Less of More," describes the phenomenon and how it applies to nearly everything, from economics to popular culture in the Age of Information.

The gentle science of persuasion, Part 4: Consistency

KnowWPCarey — Wed, 17 Jan 2007 10:42:35 EST

Nobody likes being known as a liar or as wishy-washy or erratic. So, when people make public commitments or promises, they will almost always want to back up those words with action. They have little choice: For reputation's sake, they must do so. In the world of psychology, this is a principle known as "consistency," and according to Robert Cialdini, it's one of the six key principles behind the science of persuasion.

Accounting cues bolster or bust restructuring efforts

KnowWPCarey — Wed, 17 Jan 2007 10:42:35 EST

Accounting practices can influence behavior that aids or thwarts organizational efforts to get the job done, according to research conducted by Casey Rowe, an assistant professor of accounting at the W. P. Carey School of Business. Traditional accounting systems reinforce departmental borders and impede restructuring because they promote competition at a time when cooperation, open communication, and cross-functional teamwork are needed. As organizations ebb and flow through periods of continuous and discontinuous change, accounting systems need to be changed to motivate competition or cooperation as appropriate.

For love or money? The unrequited passion of the sports fan

KnowWPCarey — Wed, 03 Jan 2007 10:42:35 EST

The passion of fans for their teams is the stuff of family lore and Hollywood scripts, and it's that emotional charge that makes the business of sports distinct. What other business can claim that its customers are in love with its product? But television revenues, high ticket prices and a myriad of entertainment choices are changing the economics of the industry. Is the romance cooling for fans, and if so, what does it mean for sports? Experts from the W. P. Carey School of Business faculty weigh in.

Bill Strickland: Role model for social entrepreneurship

KnowWPCarey — Wed, 03 Jan 2007 10:42:35 EST

A new breed of entrepreneur is combining for-profit ventures with non-profit social causes to create a hybrid brand of philanthropy. Pittsburgh-based leader William E. Strickland, Jr. could be considered the grandfather of the movement. His presentation at the recent 17^th annual Compete Through Service Symposium, sponsored by the Center for Services Leadership in the W. P. Carey School of Business brought an audience of executives to its feet.

Do the math: U.S. companies face shortage of technical talent

KnowWPCarey — Wed, 03 Jan 2007 10:42:35 EST

Bill Swanson, the chairman and chief executive officer of Raytheon Company, needs a continual supply of people highly educated in mathematics, science and engineering. Speaking at the W. P. Carey School's Economic Club of Phoenix, Swanson described Raytheon's efforts to keep the U.S.'s technical talent pipeline full.

Borrowing and building technology: How the poor get rich and the rich get richer

KnowWPCarey — Wed, 03 Jan 2007 10:42:35 EST

Why are some parts of the world rich and getting richer? Why are some nations mired in poverty? And what explains the differences in prosperity among states and regions in the United States? In a white paper issued this month, economics Professors Arthur Blakemore and Berthold Herrendorf examine these questions -- among the most fundamental in economics -- with an eye toward policy. After all, if economists can discover how economies improve their living standards, then the logical next step is to craft policies to make it happen.

Do employers discriminate against the disabled?

KnowWPCarey — Wed, 03 Jan 2007 10:42:35 EST

Persons with disabilities earn less and are less likely to be employed, a phenomenon often explained away as the result of lower productivity due to the impact of functional limitations. In an important new book, economists Marjorie L. Baldwin and William G. Johnson review economic studies utilizing labor-market data that suggest employer discrimination may contribute to the poor outcomes for workers with disabilities.

Podcast: The new economics of sports business

KnowWPCarey — Wed, 03 Jan 2007 10:42:35 EST

Professional sports are a multimillion dollar industry -- an industry that is increasingly playing by rules that don't apply to other businesses. Ray Artigue, executive director of the W. P. Carey MBA Sports Business Program and former senior vice president of marketing for the NBA's Phoenix Suns, discusses the curious business of sports with Knowledge@W. P. Carey. Joining the conversation is Robert Stearns, professor of practice in the finance department at the W. P. Carey School of Business and chairman and chief executive officer of Quepasa Corporation.

The gentle science of persuasion, Part 3: Social proof

KnowWPCarey — Wed, 03 Jan 2007 10:42:35 EST

Social psychologists have long known that human beings often make choices about what to think, and what to do, based on the thoughts and actions of others. Simply stated: We like to follow the crowd. As a psychological phenomenon, it's called "social proof." And according to Robert Cialdini, the Regents' Professor of Psychology and Marketing at Arizona State University and Distinguished Professor of Marketing in the W. P. Carey School, "social proof" is one of the six key principles underlying the powerful science of persuasion.

Even with a housing hangover, Arizona's economy will be strong in 2007

KnowWPCarey — Wed, 06 Dec 2006 10:42:35 EST

In 2007, Arizona's economy will continue to expand even as the state begins to face the consequences of the 2004-2005 housing frenzy. That's the report from economists Lee McPheters, senior associate dean of the W. P. Carey School, and consultant Elliott Pollack, featured speakers at the 43rd Annual Economic Forecast Luncheon co-sponsored by the W. P. Carey School's Department of Economics and Chase.

Job-hunting in the age of Monster: Protecting your online reputation

KnowWPCarey — Wed, 06 Dec 2006 10:42:35 EST

Maybe it wasn't the MySpace photo that cost an applicant the chance for a second interview with his dream employer, but something on that page turned off the corporate hiring manager who had been impressed during an hour-long interview. Sites like MySpace have changed the dynamic for job-hunters and recruiters alike, according to Neal Bruce, vice president of alliances at Monster (formerly Monster.com). Bruce, a featured speaker at the Center for Service Leadership's 17^th annual "Compete Through Service: The Moment of Truth" symposium, talked about the emergence of "digital identities," and how companies are using this new source of information.

The gentle science of persuasion, Part 2: Reciprocity

KnowWPCarey — Wed, 06 Dec 2006 10:42:35 EST

Most people want to give back to people who do something nice for them. In fact, social mores dictate that a favor should be returned in kind, and we apply pejoratives to those who do not: ingrates, moochers. In the second of a six-part series, psychology and marketing Professor Robert Cialdini talks about this phenomenon, which he calls "reciprocity," and examines how the need to repay a kindness can be used to persuade others to agree -- or to work -- with us.

New math: Educating the 21st century workforce

KnowWPCarey — Wed, 06 Dec 2006 10:42:35 EST

Counselors, teachers, and leaders from industry and the community recently met at a conference sponsored by ASU's Center for Research on Education in Science, Mathematics, Engineering and Technology (CRESMET). The agenda: to discuss how educators and businesses must collaborate to prepare students for learning and career paths appropriate to today's global marketplace. Their observations are pointed at Arizona, but are instructive nationwide.

Acclaimed restaurateur serves up tasty lessons in hospitality business

KnowWPCarey — Wed, 06 Dec 2006 10:42:35 EST

Danny Meyer's account of what may be the world's toughest entrepreneurial challenge -- opening a successful restaurant in New York City -- is as enjoyable as a meal at your favorite Italian bistro. Indeed, it's easy to forget that "Setting the Table: The Transforming Power of Hospitality in Business" is, in fact, a book about business. It's also an insightful autobiography, a gastronomical experience and the story of a kinder, gentler way of cultivating success -- financial, personal and even spiritual.

U.S. economic forecast for 2007: cooling off but no recession

KnowWPCarey — Wed, 06 Dec 2006 10:42:35 EST

The economy will cool off because of a slowing housing market and rising energy prices but will experience a soft adjustment and modest growth in 2007, according to John B. Taylor and Peter Wall, two speakers at the 43rd Annual Economic Forecast Luncheon, co-sponsored Dec. 6 in Phoenix by the W. P. Carey School's Department of Economics and Chase.

The gentle science of persuasion, Part 1: Liking

KnowWPCarey — Wed, 22 Nov 2006 10:42:35 EST

The ability to persuade others is critical to success, whether you are selling cars or a new corporate strategy. Psychology and marketing Professor Robert Cialdini has examined the component parts of influence, in the lab and on the street. He has learned that persuasion is a science as well as an art. Today, Knowledge@W. P. Carey begins a six-part series that explores Cialdini's principles of persuasion. The first: the importance of liking the person you are trying to persuade.

Divided we stand: Why a Democratic Congress is good for business

KnowWPCarey — Wed, 22 Nov 2006 10:42:35 EST

Corporate America shouldn't fear the Democratic takeover of Congress, despite the party's anti-business reputation. The shift in power to the Democrats will actually make it easier for business interests to be heard in the capital, said Gerry Keim, professor of management at the W. P. Carey School of Business, in a speech in Washington the day after the election.

Betting on basics: An investment banker goes public with what appeals to financiers

KnowWPCarey — Wed, 22 Nov 2006 10:42:35 EST

Named one of "America's 50 Most Powerful Women" by Fortune magazine, Cristina Morgan has represented her firm on more than 100 IPOs for such familiar names as Adobe, Google, Pixar and Netscape. Recently she was inducted into the W. P. Carey School's Alumni Hall of Fame. Here, Morgan talks about the role of the investment banker, and weighs in with some advice for individuals interested in making their own stock picks.

US Airways-Delta merger: A bad deal for consumers?

KnowWPCarey — Wed, 22 Nov 2006 10:42:35 EST

US Airways has issued an $8 billion hostile bid for bankrupt Delta Airlines. The move surprised industry observers, who note that US Airways itself is the product of a merger that the Tempe, Arizona-based airline is still striving to sort out. W. P. Carey School of Business Dean Robert Mittelstaedt -- a private pilot who follows the airline industry closely -- talked with Knowledge@W. P. Carey about the bid and its potential impact on the aviation sector. Some mergers, he said, are good for consumers, but others benefit companies more than their customers. A US Airways/Delta marriage is probably the second type, he warns.

The shape of things to come in the U.S. economy

KnowWPCarey — Wed, 22 Nov 2006 10:42:35 EST

"Subpar," when applied to upcoming economic growth, is not an epithet businesses like to hear. It doesn't sit very well with consumers either. Unfortunately, however, subpar economic growth is what the country should expect for the remainder of 2006 and 2007, according to Paul Kasriel, senior vice president and director of economic research, The Northern Trust Company. Kasriel recently received the 2006 Lawrence R. Klein Award for Blue Chip Forecast accuracy at a New York City ceremony hosted by the W. P. Carey School of Business.

Expanding the innovation horizon in the global marketplace

KnowWPCarey — Wed, 22 Nov 2006 10:42:35 EST

At the recent Compete Through Service Symposium sponsored by the W. P. Carey School's Center for Services Leadership, Michael E. Daniels, senior vice president of IBM Global Technology Services, presented a recap of the findings of IBM Global Business Services' 2006 CEO study, "Expanding the Innovation Horizon." The study based its conclusions on in-depth interviews conducted by IBM with 765 CEOs, business leaders, and public sector leaders from around the globe.

What's in a name?

KnowWPCarey — Wed, 22 Nov 2006 10:42:35 EST

A rose by any other name would smell as sweet, but would a businessperson without a popular first name be as likely to savor the smell of success in the executive suite? Maybe, because success is mainly merit-based, but a common name doesn't hurt, according to research by Lee McPheters, senior associate dean at the W. P. Carey School of Business. To his surprise, McPheters found that six names accounted for 35 percent of the highest-paid executives in Phoenix.

Merge right: Avoiding the clash of corporate cultures

KnowWPCarey — Wed, 08 Nov 2006 10:42:35 EST

As companies adopt a strategy of growth via brand acquisition it beomes increasingly important to understand the corporate cultures -- the core values, ways and beliefs, business principles and traditions -- of the new members of the family. At the 17^th annual Compete Through Service Symposium sponsored by the Center for Services Leadership in the W. P. Carey School of Business, executives from Luxottica Retail discussed the lessons they learned from an acquisition gone awry.

Is your company ready to blog?

KnowWPCarey — Wed, 08 Nov 2006 10:42:35 EST

A well-executed business blog is a 24-hour opportunity to interact with customers, impress Wall Street, spark business-to-business opportunities, track industry trends, spot brand deterioration and spook competitors, all maintained at a low-rent cyber address. Does your company have one? Speaker Toby Bloomberg explored the marketing potential of the blogosphere at the Compete Through Service symposium sponsored by the W. P. Carey School's Center for Services Leadership.

Developing a globally competitive economy: Challenges and opportunities

KnowWPCarey — Wed, 08 Nov 2006 10:42:35 EST

As Arizona strives to find and maintain a place in the global economy, it faces many of the same challenges as the nation. In a speech at the W. P. Carey School's Economic Club of Phoenix, Bank of America CEO Kenneth Lewis said that to be competitive, Arizona and America must focus on business and community development. To do so, he said, we need to bring together community leaders from business, academia, and government.

Customer service and the purpose-driven organization

KnowWPCarey — Wed, 08 Nov 2006 10:42:35 EST

Indifferent employees alienate shoppers, run off clients and botch deals with a shoulder-shrug. They don't care, and that message acts like static on a bad telephone connection, canceling out any lucrative communication. How to turn that attitude around? Four things, says management strategist Don Peppers: a sense of ownership in the company, open communication, no secrets and no excuses. Together, all four also create an environment where failure is tolerated as long as you learn from your mistakes and missteps. Peppers spoke at the Compete Through Service symposium sponsored by the W. P. Carey School's Center for Services Leadership.

Darwinian manager vs. GEO leader: Winning tactics of the gifted boss

KnowWPCarey — Wed, 08 Nov 2006 10:42:35 EST

What kind of boss are you? Consultant and author Dale Dauten proposes a new model guaranteed to boost performance exponentially while moving the company dynamic beyond traditional hierarchies. He calls it the GEO leader -- GEO as in "Great Employees Only" which is the title of Dauten's latest book, subtitled "How Gifted Bosses Hire and De-Hire Their Way to Success."

Oil company consolidation and the price of gasoline: Studying the studies

KnowWPCarey — Wed, 08 Nov 2006 10:42:35 EST

Elizabeth M. Bailey, clinical assistant professor of economics at the W. P. Carey School of Business, has been studying the debate over oil industry consolidation and prices. She finds that critics of the oil giants, as well as those who defend them, may skew their conclusions by the assumptions they make. "In order to understand the results, people need to understand the assumptions," she says.

Mortgages, credit cards, and the new bankruptcy code

KnowWPCarey — Wed, 08 Nov 2006 10:42:35 EST

The new, tighter U.S. bankruptcy code has not only made it harder for people to erase their debts and easier for creditors to get more of what they are owed, it also has made bankruptcy statistics a less relevant and reliable economic indicator, according to Dawn McLaren, a research economist at the W. P. Carey School of Business.

Are investors really fooled by earnings manipulation?

KnowWPCarey — Wed, 08 Nov 2006 10:42:35 EST

Accrual accounting, which allows firms to adjust cash flow from operations, is intended to provide flexibility so that financial statements can be made more informative. Nevertheless, managers may instead use the flexibility to mislead stakeholders about the underlying strength of the company. The extent to which investors and analysts are influenced by earnings manipulation is at the heart of recent research by a team led by W. P. Carey School of Business finance Professors Michael Hertzel and Jeffrey Coles.

Marriott's transition from lodging to branding

KnowWPCarey — Wed, 08 Nov 2006 10:42:35 EST

In the past decade, Marriott International pioneered the development of multi-branding strategy as it transitioned from a lodging company to a brand company. Mike Jannini, executive vice president and general manager for Marriott brands, was a speaker at the "Compete Through Service" symposium, presented by the Center For Services Leadership. Here he talks with Knowledge@W. P. Carey about Marriott's multi-branding strategy, how employees and travelers helped to shape that strategy, and what the future holds for this hospitality company that started as a root beer stand in Washington D.C. in 1927.

Wanted: Internet logistics expertise

KnowWPCarey — Wed, 08 Nov 2006 10:42:35 EST

Online retailers seek logistics service providers offering high-quality supply chain management knowledge. But new research by supply chain management professor Elliot Rabinovich shows retailers need to look before they leap into a contract with a provider.

From the causes of booms to the size of our debt: Dispelling seven macroeconomic myths

KnowWPCarey — Wed, 25 Oct 2006 10:42:35 EST

The U.S. government debt is massive -- and growing out of control. Our debt is a burden on our grandchildren; failing to decrease it today is selfish and myopic. Those are statements that most Americans have become accustomed to hearing. They're also two of seven widely propagated myths which 2004 Nobel Laureate and W. P. Carey School professor of economics Edward Prescott sought to dispel in a recent presentation at the Economic Club of Phoenix.

The weakest link: Keeping your data secure in a collaborative business environment

KnowWPCarey — Wed, 25 Oct 2006 10:42:35 EST

Few companies operate independently in the Electronic Age, which means that the security vulnerability of every business partner -- outsourcer, client, whatever -- whose computer system has access to yours is a potential portal to your most sensitive data. In a presentation during the "Cultivating and Securing the Information Supply Chain" symposium sponsored by the W. P. Carey School's Center for Advancing Business through Information Technology, researchers described a Department of Defense-funded study on investing in IT security.

Interview: Developing middle management through executive education

KnowWPCarey — Wed, 25 Oct 2006 10:42:35 EST

Companies that retain their competitive edge have learned how to raise up leaders in the ranks of middle management who have the skills to drive corporate strategy. Executive education and professional development programs are noted for developing individual potential, but some companies are finding that the classes can be laboratories where groups of employees can work out solutions and plan strategy. Management Professor Amy Hillman describes the progress she has observed in a class she teaches regularly for Executive Education at the W. P. Carey School of Business. "Leadership: Aligning Strategy, Talent and Culture" is offered regularly throughout the year. Click here to listen.

John Mumford: An innovative venture capitalist turns to philanthropy

KnowWPCarey — Wed, 25 Oct 2006 10:42:35 EST

The venture capital industry has honored John Mumford, a founding partner in the Silicon Valley firm of Crosspoint Venture Partners, with its lifetime achievement award. But it was not just his skill in leading the early-stage venture firm to success that earned Mumford this respect; it was also his reputation for maintaining the highest standards of ethics in his dealings. Recently, the W. P. Carey School of Business inducted Mumford (Accountancy, '67) into its Alumni Hall of Fame. That evening Mumford shared a podium with William Huizingh, the now-retired professor who turned Mumford's life around while he was at ASU. Grateful former students, including Mumford, have endowed a teaching award in Huizingh's name. Now Mumford hopes to emulate his mentor by helping young people who are off to a bad start.

Working it out: Stock-market players detect and reward smart outsourcing

KnowWPCarey — Wed, 25 Oct 2006 10:42:35 EST

Last year, some 28 percent of corporate managers surveyed told Evans Data, a market research firm, that their primary driver for outsourcing was cost cutting. You'd think saving money would catch the eye of Wall Street but, in fact, it doesn't. Researchers Haluk Demirkan, Michael Goul and Robert St. Louis from the W. P. Carey School of Business examined the effect outsourcing announcements had on firm value as measured by abnormal stock returns; they found that only truly innovative contracts made investors take notice and applaud the decision with market buy-in that elevates stock value.

Naked Conversations: Why companies should jump on the blogging bandwagon

KnowWPCarey — Wed, 25 Oct 2006 10:42:35 EST

Robert Scoble and Shel Israel, the authors of "Naked Conversations: How Blogs Are Changing the Way Businesses Talk with Customers" are so passionate about the value of business blogging, they admit having toyed with the idea of titling their book "Blog or Die." Blogging, the authors insist, promises to be the long sought Holy Grail of business-to-customer relations -- the perfect tool for companies that wish to create a meaningful dialog with and subsequently win over their target customers.

Effective leadership: Building a successful corporate culture

KnowWPCarey — Wed, 25 Oct 2006 10:42:35 EST

Year in and year out, cars manufactured by Toyota Motor Corp. are praised by automobile critics and lauded by loyal customers. The cars sell extraordinarily well and, come year's end, can almost always be found at the top of the rankings in reliability, quality and customer satisfaction. What's Toyota's secret? Surprisingly, according to management experts Gerry Keim and Angelo Kinicki at the W. P. Carey School of Business, it's not engineering.

When the cure is worse than the disease: the HP debacle

KnowWPCarey — Wed, 11 Oct 2006 10:42:35 EST

In early 2005, Hewlett-Packard's board of directors was embroiled in controversy. Board discord anonymously spilled into the media, and an effort commenced to find and plug the leaks of board deliberations. The probe has erupted into scandal, indictments and congressional hearings. Experts at the W. P. Carey School of Business say the HP saga is rich with lessons about corporate governance and ethics.

Interview: Marianne Jennings discusses the ethics of the HP situation

KnowWPCarey — Wed, 11 Oct 2006 10:42:35 EST

The HP situation provides a many-faceted illustration of ethics in the breach, according to Marianne Jennings, professor of legal and ethical studies at the W. P. Carey School of business and author of "The Seven Signs of Ethical Collapse: How to Spot Moral Meltdowns in Companies ... Before It's Too Late." Jennings says that the actions of a board member in leaking company information to the press were unquestionably wrong, but the board's shady investigation only exacerbated the legal and ethical breakdown. Jennings shares her observations in a conversation with Knowledge@W. P. Carey. Click here to listen in.

Podcasting: Where does it go from here?

KnowWPCarey — Wed, 11 Oct 2006 10:42:35 EST

The question has been debated for centuries: if a tree falls in the woods and no one hears it, does it make a sound? Conventional wisdom says yes, but that no one will notice. The axiom could be applied to podcasting. Can the corporate world profit from "the hippest and coolest communication tool on the Internet … a must-have for consumers," as the production company, Palegroove Studios, calls it?

Keep it to yourself? The costly stigma of mental illness

KnowWPCarey — Wed, 11 Oct 2006 10:42:35 EST

Sixteen years after the Americans with Disabilities Act (ADA) passed, workers with mental illness still face a disheartening choice: keep their health problems a secret at work, or risk being shunned, passed over, paid up to one-third less, or even fired, according to a new study conducted by the School of Health Management and Policy at the W.P. Carey School of Business.

A 'building code' for convergence: Managing IT in the public sector

KnowWPCarey — Wed, 11 Oct 2006 10:42:35 EST

As chief information officer for the state of Arizona, Chris Cummiskey directs computer operations for 114 agencies ranging from the Acupuncture Board of Examiners to the Weights and Measures Department. In a presentation during the "Cultivating and Securing the Information Supply Chain" symposium sponsored by the W. P. Carey School's Center for Advancing Business through Information Technology, Cummiskey described the partnerships and collaboration that make it work.

Coming soon from a utility near you: More power to the people

KnowWPCarey — Wed, 11 Oct 2006 10:42:35 EST

For the past 10 years, the electric utility industry has focused on competition and restructuring. According to Bill Post, chairman of the board and chief executive officer of Arizona Public Service (APS), Arizona's largest electric utility, the end result of competition is an increased emphasis on consumers -- one that defines the new era utilities are entering. Post, a W. P. Carey graduate who is a 2006 inductee into the school's Alumni Hall of Fame, discusses the future of his industry.

Cat Whisperers: Can 'Persuasion Architecture' Win Over Finicky Customers?

KnowWPCarey — Wed, 11 Oct 2006 10:42:35 EST

Consumers today are flooded with a dizzying array of media options: blogs, Internet consumer sites, slick TV ads, satellite radio and target market mail campaigns. The result? Your potential customers are likely better informed than ever -- maybe even better-informed than your sales people. Bryan and Jeffrey Eisenberg, authors of "Waiting for Your Cat to Bark? Persuading Customers When They Ignore Marketing," say that companies must face up to the fact that in many cases the customers themselves -- not company PR -- determine the reputation of a product. The Eisenbergs say this spells the end for the conditioned-response model in traditional marketing and calls for a new approach.

Supply base complexity: Finding the right balance

KnowWPCarey — Wed, 11 Oct 2006 10:42:35 EST

Finding the optimal number of suppliers to form your supply base is not easy -- nor is it the only factor buying companies must juggle in order to manage their suppliers effectively. New research from Thomas Choi, professor of supply chain management at the W. P. Carey School of Business, shows that companies need to go beyond just looking at how many suppliers they have in their supply base. They need to consider the three dimensions of supplier complexity, then calculate the impact of each on a variety of supply chain factors.

Analyze this: Listening to experts doesn't always work

KnowWPCarey — Wed, 27 Sep 2006 10:42:35 EST

A recent study tracked investor reaction to more than 50,000 reports issued by 2,794 analysts between 1993 and 1999. While the data show that both large and small investors react to analyst counsel, the larger -- and presumably more sophisticated -- traders tend to make more money doing so. Compared to those making larger trades, smaller investors seem less aware of conflicts that securities analysts may face, and this lack of understanding translates into less profitable stock-market decisions.

The evolving science of services

KnowWPCarey — Wed, 27 Sep 2006 10:42:35 EST

The W. P. Carey School, through its pioneering Center for Services Leadership, has been at the leading edge of research concerning the services sector, which now accounts for 75 to 80 percent of the U.S. economy. Recently, academics outside of business schools are beginning to take an interest in learning about the dynamics of services. This rising interest in what is being termed "services science" not only signals a new appreciation for the vast influence of services on the global marketplace, but also hints at the possibility of exciting new interdisciplinary research that could help solve problems both in the business world and elsewhere.

Spirited enterprise: secrets of entrepreneurial success

KnowWPCarey — Wed, 27 Sep 2006 10:42:35 EST

Each year, the Spirit of Enterprise Center at the W. P. Carey School of Business presents the Spirit of Enterprise Awards™ to companies that demonstrate ethics, energy and excellence in entrepreneurship. To mark the tenth year of the award, Knowledge@W. P. Carey interviewed a selection of winners from previous years to uncover some of the secrets of entrepreneurial success.

Trust me: Building strategic partnerships in a global marketplace

KnowWPCarey — Wed, 27 Sep 2006 10:42:35 EST

Trust has always been the cornerstone of a successful business relationship. But in a global marketplace, your business partners may include a myriad of companies spread across the globe, linked by information gateways. Issues of trust, privacy, security and validation -- integral components to maintaining an effective information supply chain -- were the subject of a panel discussion at the recent "Cultivating and Securing the Information Supply Chain" symposium sponsored by the W. P. Carey School's Center for Advancing Business through Information Technology (CABIT).

Keeping the customer dissatisfied? How businesses can recover from service failure

KnowWPCarey — Wed, 27 Sep 2006 10:42:35 EST

Strategies for recovering from service failures can have a dramatic impact on profitability, according to research conducted at the W. P. Carey School of Business. That's because most business profit comes from keeping current customers satisfied, not from developing new accounts. So, it's crucial that managers and executives know how to handle service failures. But in reality, many business leaders are clueless about what to do when their best efforts come up short.

A penny for your thoughts: When customers don't complain

KnowWPCarey — Wed, 27 Sep 2006 10:42:35 EST

When it comes to consumer contentment, managers and executives should not mistake silence for satisfaction. Most unhappy customers never say a word; they just take their business elsewhere. Consumer-complaint expert Nancy Stephens, an associate professor of marketing at the W. P. Carey School of Business, urges companies to do everything possible to encourage unhappy consumers to give businesses the chance to make things right -- and to keep their customers.

Now serving one billion

KnowWPCarey — Wed, 27 Sep 2006 10:42:35 EST

The promise represented by a billion customers is intoxicating to foreign businesses eyeing the emerging market in China. But success depends upon understanding China's mindset, including its focus on history and its dedication to preserving the Chinese "essence." China wants success for its enterprises on the same high level as that enjoyed by the world's great corporations. Nevertheless it will apply the lessons it learns to the Chinese way of doing business. "One Billion Customers: Lessons from the Front Lines of Doing Business in China " is journalist and businessman James McGregor's report on how to do business in China.

What Is the Information Supply Chain?

KnowWPCarey — Wed, 13 Sep 2006 10:42:35 EST

Like a physical supply chain, an information supply chain (ISC) is comprised of the organizations that connect with each other to produce a desired end -- product or service -- for a user. But where other supply chains may be roughly linear, the information supply chain is more reminiscent of a web, according to Ed Kamins, senior vice president and chief operational excellence officer at Avnet, Inc. Kamins moderated a panel at the recent "Cultivating and Securing the Information Supply Chain" symposium sponsored by CABIT. Enmeshed in this web, Kamins said, are four key players: the manufacturer, the distributor, the value-added reseller and the end user.

The New CIO: Chief of the Information Supply Chain

KnowWPCarey — Wed, 13 Sep 2006 10:42:35 EST

Thin client technology and the Java card have enabled business to create a data-centric world with a mobile workforce. The creative possibilities in this environment are boundless, but freedom from the office comes with increased risk. The CIO is in charge of creating and securing that new workspace, and organizations have no choice but to deal with this new reality. Maybe a new title is in order, too: chief of the information supply chain.

What's In a Name: Cardinals Stadium Seeks a Partner

KnowWPCarey — Wed, 13 Sep 2006 10:42:35 EST

Arizona Cardinals Stadium, a $355 million, multi-purpose, high tech athletic entertainment facility, is considered among the top ten in the world. When it officially opened on September 10 it sported all the bells and whistles, except one: a corporate name and a lucrative naming rights contract. Naming rights are key to the success of a franchise, say ASU experts, because they provide critical cash, good will and branding opportunities. Observers are wondering: are the Cardinals asking too much money (an undisclosed amount) for naming rights; are negotiations stuck on the Cardinals negative image; is the Glendale stadium too remote; or are the Cardinals just too distracted with operational issues?

Surprising Jump in Tax Revenues: Will It Last?

KnowWPCarey — Wed, 13 Sep 2006 10:42:35 EST

Recent estimates of the United States' federal budget deficit just keep getting better. On July 11, the president announced that after a record $413 billion shortfall in fiscal year 2004 and a $319 billion deficit in 2005, the deficit estimate for 2006 was $296 billion, down from the original estimate of $423 billion. On August 4, the Congressional Budget Office put the deficit estimate for fiscal year 2006 (which ends September 30) even lower, at $260 billion. Although the tide of red ink is ebbing -- thanks to higher corporate and individual tax receipts -- the good news stems from factors that may be only temporary, according to experts at the W. P. Carey School of Business.

Information Flow Crucial to Effective Disaster Response

KnowWPCarey — Wed, 13 Sep 2006 10:42:35 EST

Hurricane Katrina delivered an excruciating lesson on "information integration in action, not theory," according to Steve Cooper, chief information officer at the American Red Cross. The nation's largest natural disaster highlighted the value of information and the crucial role played in any organization -- government, non-profit or private sector -- of the information supply chain, he noted. Speaking at a symposium sponsored by the W. P. Carey School's Center for the Advancement of Business through Information Technology, Cooper warned that "not having the right information at the right time leads to bad decisions."

Housing Balloon Springs a Slow Leak

KnowWPCarey — Wed, 13 Sep 2006 10:42:35 EST

Picture the U.S. housing market as a bright red, helium-filled balloon bumping around the ceiling for the last couple of years, but currently suffering a slow leak that interrupts its sprightly bounce, suggests Crocker Liu, professor of finance and real estate at the W. P. Carey School of Business. The latest figures from the National Association of Realtors say sales of previously-owned homes dropped 4 percent in June and July, falling to a 30-month low and adding to a record for-sale home inventory of 4 million. However, Liu contends the market is simply reacting to the Mardi Gras good times of the recent past with a much-needed correction.

Terms of Achievement

KnowWPCarey — Wed, 13 Sep 2006 10:42:35 EST

When experiences are significant enough to be personally transformative, the stories that reflect those experiences can be compelling. In "Succeed on Your Own Terms: Lessons from Top Achievers around the World on Developing Your Unique Potential," authors Herb Greenberg and Patrick Sweeney have assembled a collection of four dozen powerful personal stories to communicate some of the intangibles that lead to success.

Back to the 80s: Are We In for a Real Estate Repeat?

KnowWPCarey — Wed, 13 Sep 2006 10:42:35 EST

The amenities of desert living have long brought a strong inflow of new residents to Arizona, which is good for the real estate market but bad for institutional memory: Those who have not lived very long in the Grand Canyon State might not know about the great real estate downturn of the late 1980s and early '90s. As the state and national real estate boom (some call it a bubble or a balloon) fueled by the low-interest policy of the Federal Reserve 2001-2004 cools off, investors, homebuyers and real estate professionals with long memories may be wondering if the approximately four-year plunge of 1987-91 is about to repeat.

Group Buy-in: How the Urge to Fit In Sways Purchase Satisfaction

KnowWPCarey — Wed, 13 Sep 2006 10:42:35 EST

Corporations utilize multi-person buying committees to be sure that high-ticket decisions are based on broad input and merit. But new research about customer satisfaction that draws on social identity theory shows that members of buying groups may align their opinions with those of the group, especially if the individual members are strongly connected. W. P. Carey marketing Professor Ruth Bolton says managers should consider this issue when forming buying groups and setting up their processes. Other measures to protect the process include building a measure of anonymity into reports, providing information well in advance of discussions, and fostering a culture where it is OK to disagree.

A Healthy Environment -- Priceless

KnowWPCarey — Wed, 13 Sep 2006 10:42:35 EST

The idea of melding economic and environmental goals is not new, but acceptance is growing for the idea that a healthy environment is part of a healthy economy. "Green accounting" refers to the application of the principles of environmental economics, which ascribe tangible economic value to natural resources. These principles can be applied to valuing marketable natural resources like trees and oil deposits as well as more intangible factors like air quality, and even not-so-green issues like the valuation of a person's leisure time.

The Effects of University Research on Local Economies

KnowWPCarey — Wed, 13 Sep 2006 10:42:35 EST

Do university research programs tend to stimulate employment and raise the average level of income in the local area economy? This is the central question behind W. P. Carey School of Business economist Kent Hill's recent paper "University Research and Local Economic Development." Hill finds that university research programs do have local economic impacts, even in today's global economy; however, these impacts vary greatly among universities and, on average, are modest in size.

The Two Faces of Entrepreneurship, Part 2: Innovative Entrepreneurs Bring New Wealth to the Economy

KnowWPCarey — Wed, 13 Sep 2006 10:42:35 EST

All entrepreneurship is not the same. Innovative entrepreneurs create and commercialize new products, services and business practices, in contrast to the replicative entrepreneurs -- those who open businesses that support a growing population, such as restaurants and dry cleaners. Experts at the W. P. Carey School of Business and Arizona State University caution that the two kinds of entrepreneurs impact economies in very different ways at different stages of economic development. Because of this, the dynamics of entrepreneurship should be weighed carefully by policy makers.

Learning from the Mistakes of the (Formerly) Rich and Infamous

KnowWPCarey — Wed, 30 Aug 2006 10:42:35 EST

The corporate failures of Enron, WorldCom, HealthSouth and Tyco were separate tragedies, but they share a common theme: ethical breakdown that started at the top and permeated the organizations. In her newly-released book, ethics expert and W. P. Carey management Professor Marianne Jennings dissects the failures and identifies the cultural flaws that led to disaster. "The Seven Signs of Ethical Collapse: How to Spot Moral Meltdowns in Companies ... Before It's Too Late" provides guidance to those in charge of cultural reform in companies as well as those looking for good investments.

Get a Life: Research Shows that Employees Would Like To

KnowWPCarey — Wed, 30 Aug 2006 10:42:35 EST

Your employees may be satisfied with their office duties, co-workers, immediate supervisors, and even their paychecks. But, that doesn't necessarily mean they're happy enough to stay on the job. Recent research by W. P. Carey management professors Peter Hom and Angelo Kinicki shows that if employees are feeling conflict between work and non-work roles, they may be dissatisfied enough to quit -- or at least think about it. And, contrary to popular wisdom, it isn't just work/family conflict that leaves people feeling job discontent. Even the loss of leisure time might vex some workers to the termination point. The researchers also found that "job-avoidance" behaviors are obvious signals that could mean "turnover trouble ahead," but fortunately there is plenty an employer can do to curb profit-cutting employee resignations.

Keep 'Em Separated? The Shifting Boundaries between Work and Home

KnowWPCarey — Wed, 30 Aug 2006 10:42:35 EST

Cell phones, PDAs and laptop computers are the "Trojan Horses" of the modern world. Carried home or on vacation, they transport work from the office through the walls of our personal lives. Maintaining a boundary between work and home and between the roles we assume in those places has always been tricky. Some people build those walls high and thick, keeping work and home separate, while others try to take care of business and family by mixing the two together. It's always been complicated, but our gadgets exacerbate the problem. W. P. Carey management Professor Blake Ashforth takes a close look at the dynamics, and offers words of advice for companies and employees.

Why Can't We All Just Get Along?

KnowWPCarey — Wed, 30 Aug 2006 10:42:35 EST

Workplaces are the setting for sitcoms and cartoons for good reason -- they are networks of imperfect human relationships that provide plenty of material to comedy writers. We laugh about it, but the truth is that almost everyone at some point has said, "This would be a great job if it weren't for the people." Psychotherapist Katherine Crowley and entrepreneurial consultant Kathi Elster have written a self-help book for bosses and employees who find themselves locked in an exhausting dance with a dysfunctional colleague. They say we are not helpless, however. "Working with You Is Killing Me: Freeing Yourself from Emotional Traps at Work" guides readers out of those murky office situations.

After the Storm: Adjusting To Natural Disasters

KnowWPCarey — Wed, 30 Aug 2006 10:42:35 EST

The first anniversary of the disaster wrought by hurricanes Katrina and Rita, which destroyed more than 400,000 homes in New Orleans and along Mississippi's Gulf coast, raises questions about how an area's housing market recovers from disaster --and about the wisdom of locating housing along historic or scenic waterfront areas that are vulnerable to storm damage. Bringing perspective to this dynamic housing picture is Kerry Smith, an environmental economist who recently joined the faculty of the W. P. Carey School of Business. He is co-author of "Adjusting to Natural Disasters," a study evaluating years of housing data collected since Hurricane Andrew, which struck South Florida in 1992. The results of this study shed some light on the prospects of the current Gulf Coast recovery.

Americans Unwilling To Give Up Their Gas

KnowWPCarey — Wed, 30 Aug 2006 10:42:35 EST

Despite higher gas prices, American consumers have not backed off their demand for gas, apparently preferring to cut back consumption in other areas. Average U.S. gas prices were 31.2 cents per gallon higher on August 21, 2006 than on the same date in 2005, yet fuel deliveries to gas stations increased 1.7 percent in July over the same period in 2005. However, prices in real dollars -- adjusted for inflation -- have been higher 13 times since 1919. The current price increases do not yet seem to be sufficient to persuade consumers to make significant lifestyle changes.

Healthcare Transparency: Just What the Doctor Ordered

KnowWPCarey — Wed, 16 Aug 2006 10:42:35 EST

How do you know which hospitals are doing the best job? Patients, insurers and employers all have a stake in the answer to this question, but up until now factual information on hospital and nursing home performance has been scanty, and what is out there is based on differing criteria. A new program designed by the Ambulatory Care Quality Alliance called "Quality Health Improvement" (QHI) is a strong first step in bringing transparency to healthcare. Arizona and five other states have been chosen to pilot the project, which will rate hospitals on 26 "quality measures." Arizona HealthQuery, a database of health information on more than seven million people, will be the foundation of the state's project. Arizona HealthQuery was created at ASU's Center for Health Information and Research.

Rational versus Holistic: Two Very Different Approaches to Executive Decision Making

KnowWPCarey — Wed, 16 Aug 2006 10:42:35 EST

When complicated decisions have to be made -- whether about salaries, layoffs or growth strategy -- executives often rely on their underlying values to help them sort through possible options. Profit maximization and rationality form the basis of one such set of values; many leaders follow this approach. Some, however, employ a more holistic approach. They believe that a company's strength can manifest itself in any number of ways, and that firm value is derived from socially complex resources and relationships. New research from the W. P. Carey School of Business shows "holistic" decision-making may create better long-term results for a company than the more traditional "rational" approach.

Meeting Software: Strategic Value beyond Time and Space

KnowWPCarey — Wed, 16 Aug 2006 10:42:35 EST

Convenience and cost-savings are powerful incentives for companies to use technology as a way of convening meetings, and they do so knowing that an electronically-mediated session will be different from a face-to-face meeting. Compare a conversation to an e-mail exchange and the differences in the content and quality of the communication are obvious. Ajay Vinze, director of the W. P. Carey School's Center for the Advancement of Business through Information Technology, has studied what happens when meetings move away from the conference table. If managers understand the dynamics they can utilize these technologies strategically, he says.

Don't Mess with Mr. In-Between

KnowWPCarey — Wed, 16 Aug 2006 10:42:35 EST

The BMW in the Costco parking lot is the operative metaphor of Michael J. Silverstein's new book, "Treasure Hunt: Inside the Mind of the New Consumer," co-authored with John Butman. Silverstein describes the flip side of "trading up" -- the trend in the luxury sector that was the subject of his best-selling first book of the same name. Consumers are buying more pricey goods, he writes, but they are also "trading down" -- treasure hunting -- for bulk goods and items that do not have high emotional value. The phenomenon creates huge opportunities for companies that figure out how to meet customers at the bottom or the top of the price continuum, and disaster for those stuck in the middle.

Forging New Links in the Supply Chain

KnowWPCarey — Wed, 16 Aug 2006 10:42:35 EST

Manufacturers have learned to work closely with their suppliers to decrease costs and reduce time to market, but focusing on buyer-supplier relationships may no longer be enough to achieve competitive advantage. Thomas Choi, a W. P. Carey professor of supply chain management, is spearheading new research that examines the relationships between a firm's suppliers. He and his co-authors have discovered that sometimes a company's procurement and manufacturing success -- and ultimately, its bottom line -- is affected by the ability of its suppliers to work together effectively.

What is Small Business? Unraveling the Numbers

KnowWPCarey — Wed, 19 Jul 2006 10:42:35 EST

What is small business? According to the Small Business Administration's size standards, an enterprise may still be considered "small" if it employs as many as 1,500 people with revenues up to $32.5 million. But the state of Arizona's brackets are narrower: businesses that employ fewer than 100 full-time employees, or gross less than $4 million in the previous fiscal year. The numbers can be confusing, but the distinction is important as policy-makers consider what governmental policies will best encourage the growth of these businesses. No matter what definition you use, small business makes up the large majority of all businesses in Arizona and in the U.S., and plays an important role in keeping the U.S. economy competitive.

Thinking Before You Act

KnowWPCarey — Wed, 19 Jul 2006 10:42:35 EST

Damaging business blunders usually can be traced to poor decisions. A manager decides to try something new but does not have the right information, does not ask questions and does not understand the politics. Author Justin Menkes asserts that too many executives rely on trial and error to find the right answer, but it is the ability to think clearly before acting that sets star executives apart. In "Executive Intelligence: What All Great Leaders Have," Menkes explores the attributes of successful business leaders, and proposes a hiring technique that could help companies identify and hire people who possess these qualities.

The Two Faces of Entrepreneurship, Part 1: Replicative Entrepreneurs Serve Growing Population

KnowWPCarey — Wed, 19 Jul 2006 10:42:35 EST

Entrepreneur magazine recently ranked Arizona as the top hot spot for entrepreneurs. However, it is replicative, not innovative, entrepreneurs who are flourishing in Arizona. Replicative businesses -- such as dry cleaners, movie rental shops, and grocery stores -- serve growing populations by mimicking tried-and-true business models. Innovative entrepreneurs either are export-oriented or have a unique product or service that is not easily duplicated locally. Part 1 of this two-part series focuses on replicative entrepreneurs and their value to the economy.

Get Real: Honest Job Previews Can Cut Employee Turnover

KnowWPCarey — Wed, 19 Jul 2006 10:42:35 EST

Employee turnover is an expensive process. Human resources experts estimate the cost of turnover to range between 93 percent and 200 percent of an exiting worker's annual salary, depending on the employee's skill level. Small businesses, where the loss of one employee is often deeply felt, are hit especially hard by turnover. One way to control these costs is to take measures to be sure the recruit isn't disillusioned after his first week. A needy employer might be tempted to oversell a job to an applicant, but this can backfire. Experts say honesty is the best policy, and one way to present a clear snapshot of the job is to provide a "realistic job preview."

Changing Channels: It's All About What Clicks With Customers

KnowWPCarey — Wed, 05 Jul 2006 10:42:35 EST

When Dell Computer Corp. announced in May that it is opening two retail stores, retail industry observers took note. Dell, with $56 billion in revenue this year, was a pioneer in developing the online model of retailing. Brick-and-mortar retailers have followed, creating their own online stores. So why is Dell increasingly interested in the mall? It's an experiment to see if the company can reach a less tech-savvy segment of the market. Marketing experts at the W. P. Carey School of Business comment that Dell's move into a traditional retail setting, like the online ventures of the storefront retailers, is an example of a company experimenting with sales channels. Adding channels helps companies target groups of consumers. What's not clear is whether more channels increase sales.

Evidence-Based Management: Finding the Hidden Treasure in Corporate Databases

KnowWPCarey — Wed, 05 Jul 2006 10:42:35 EST

Until now, the data collected by companies about their customers and their business processes was relatively cumbersome to use. Companies often relied on industry "folklore" to make decisions, because the tools available to mine their own vast databases yielded screen after screen of numerical entries in spreadsheet cells. Managers needed analysts to comb the reports for insights. But a new generation of technology is enabling managers to easily harness real data when making decisions. This new capability has given rise to a fresh approach called "evidence-based management." Companies are now looking for managers who can help them capitalize on this recently-acquired access to the treasure of insight in their databases. In response, universities are looking for ways to prepare the new breed.

Clashing Cultures Contribute to Racial Disparities in Medical Care

KnowWPCarey — Wed, 05 Jul 2006 10:42:35 EST

Clashing cultural cues – rather than discriminatory doctors – could cause at least part of the medical care gap between black and white Americans, according to a recent study of patient adherence by Jonathan D. Ketcham, a professor of health management and policy at the W. P. Carey School of Business, and Karen E. Lutfey of the New England Research Institutes in Watertown, Massachusetts. Ketcham said that his results indicated "no evidence of a negative stereotype against black patients. In fact, it seemed to be only about communication - the physicians and patients disagreed about how adherent they were."

'Blink: The Power of Thinking Without Thinking'

KnowWPCarey — Wed, 05 Jul 2006 10:42:35 EST

Making a good first impression may be harder than you thought. Best-selling author Malcolm Gladwell, in his latest offering called "Blink:The Power of Thinking Without Thinking," proposes that the unconscious mind makes many decisions in two seconds flat. The mind, Gladwell writes, thin-slices data to extract what it deems the most important nuggets, and then rushes to judgment. Prior experience and expertise form the brackets of this efficient search. Those who wish to avoid the erroneous impressions resulting from stereotyping may want to widen their search parameters by exposing themselves to more experiences. And marketers, too, should consider what they can do to help consumers accept products that are outside of their frame of reference.

The Privatization of Fannie Mae

KnowWPCarey — Wed, 05 Jul 2006 10:42:35 EST

Fannie Mae's recent $11 billion accounting scandal drew headlines, but even before that, critics, analysts and academics have urged that the time has come for this Government Sponsored Enterprise (GSE) to be completely privatized. Herbert Kaufman, a finance professor at the W. P. Carey School of Business who has been studying GSEs for many years, is among those who argue for privatization. By the 1980s the GSEs had served an important purpose in integrating the mortgage markets into the capital markets, Kaufman says, but at that point they should have been privatized. The issue, he continues, is the government's possible contingent liability in case of default.

No Risk, No Reward? Not Necessarily ...

KnowWPCarey — Wed, 05 Jul 2006 10:42:35 EST

In our competitive culture "no risak, no reward" is an axiom. But is all risk the same? In their new paper, "Not All Risk Taking is Equal: Firm Performance and the Motivation for Executive Decisions," Nathan Washburn and co-authors studied the risk-taking behaviors of executives. They found that the real question facing executives is not whether to take risks, but what kinds of risk to take. "What we ended up accomplishing was to present a new perspective on executive risk taking," Washburn says.

Passing the Baton: Who Succeeds the Icon?

KnowWPCarey — Wed, 05 Jul 2006 10:42:35 EST

The withdrawal of Bill Gates from his full-time role in the Microsoft empire he created raises the specific question of how -- and even whether -- an icon can be replaced. Gates' move also highlights the general question of how best to handle management succession. Opinions among experts at the W. P. Carey School of Business vary widely, and not everyone is sure that a company should even try to replace an icon. They agree, however, that a smart corporate culture ensures that progress survives management transitions.

Starbucks Banks on the Middle Kingdom's Middle Class

KnowWPCarey — Wed, 21 Jun 2006 10:42:35 EST

Foreign retailers are focusing their attention on China with its huge potential customer base. While urban incomes are rising, the problem is that the majority of the Chinese population remains mired in rural poverty, awaiting economic and political reforms that may not materialize for another decade, if at all. One U.S. company whose early foray into China has met with success is Starbucks. CEO Howard Schultz, who spoke at the Third Annual Executive Forum in Shanghai hosted by the W. P. Carey School of Business and the Shanghai National Accounting Institute, believes his company's thoughtful, committed and cooperative approach proved key to the coffee giant's popularity in the Chinese marketplace.

How May I Help You? Revolutionizing Service in China

KnowWPCarey — Wed, 21 Jun 2006 10:42:35 EST

Service is the next frontier in the Chinese economy. As China's biggest cities begin their transformation from manufacturing to service centers, Chinese corporations must relax and adapt their management style if they are to compete in the global service sector, according to panelists at the recent Third Annual Executive Forum in Shanghai hosted by the W. P. Carey School of Business and the Shanghai National Accounting Institute. The requirements of a successful service sector include flexibility, the ability to move and invest ahead of the growth curve, and careful human resources management -- all new concepts for Chinese managers accustomed to the mindset of a command economy.

China's Economy: Some Cooling, then Fair Weather Long Term

KnowWPCarey — Wed, 21 Jun 2006 10:42:35 EST

Nobel Prize-winning economist Lawrence Klein was one of the first Western scholars to establish close ties with China's economic policymakers. Since his first visit to the mainland in 1980, Klein has been a consultant to the State Information Center, helping it establish economic models for policy planning. "When I first came to China at the beginning of reform, you wouldn't say that China was a leading power and that it should be taken into account in the shaping of the global system," says Klein. "That is no longer the case." He believes it is in everyone's best interest to ensure that China's development proceeds without any major upsets -- and the key to this development is efficiency, particularly in the service sector.

Advice to U.S. Tourism and Hospitality Industry: Learn Some Mandarin

KnowWPCarey — Wed, 21 Jun 2006 10:42:35 EST

As China's economy grows and stringent travel restrictions are relaxed, urban middle- to upper-class Chinese are increasing looking beyond their borders for travel. While a staggering 31 million Chinese traveled abroad in 2005, only 100,000 visited the United States. One reason is political -- the U.S. has yet to apply to the Chinese government for "approved destinations status," a bilateral agreement allowing Chinese tourists to bypass consular formalities by allowing travel agents to handle all visa applications. Another reason is cultural: U.S. hotel, airline, and tourism industries should prepare for the new wave of Chinese tourists by studying up on their preferences -- or risk losing out on the 50 million Chinese tourists expected to be traveling abroad annually by 2010.

Counterfeit Meds Could Be As Close As Your Corner Drugstore

KnowWPCarey — Wed, 07 Jun 2006 10:42:35 EST

American consumers pay top dollar for medications they assume are pure and unadulturated. But we don't always get what we pay for, according to researchers who are sounding the alarm about the growing presence of counterfeit drugs in the marketplace. A spokesman for the Food and Drug Administration recently reported that the global pharmaceutical market is "under unprecedented attack from a variety of sophisticated threats." Experts at the W. P. Carey School of Business concur, and they say intensive R&D efforts are under way to develop new methods of improving the security of the global pharmaceutical supply chain.

SOX: No One-Size-Fits-All Solution to Dishonest Accounting

KnowWPCarey — Wed, 07 Jun 2006 10:42:35 EST

The auditing and reporting requirements of the Sarbanes-Oxley Act -- effective since 2004 for larger and midsize corporations and yet to take hold for the smallest companies -- have triggered complaints about the costs and questions about the effectiveness of the law. Accommodating Sarbanes-Oxley (a.k.a. SOX) has cost corporations millions as executives and employees undergo special training in compliance. Its requirements for accounting oversight and independence, and its checks on conflicts of interest and fraud, have resulted in a mixed verdict on its effectiveness so far, say experts at the W. P. Carey School of Business.

Take Off Your Shoes and Ask for Slippers: Integrating Corporate Culture in Global Business

KnowWPCarey — Wed, 07 Jun 2006 10:42:35 EST

As globalization moves into ever more culturally diverse locations, the question of business and culture – "the Lexus and the olive tree" in the lexicon of Thomas Friedman's bestseller of the same name -- becomes increasingly germane. For Western businesses that want to operate in culturally-different countries, how do they maintain their own management practices while successfully doing business away from home? The answer is integration. A management professor at the W. P. Carey School suggests that a decision point arises when local cultural practices are inconsistent with the company's policies. In these cases, companies can make successful decisions by compromising a bit on both sides -- and introducing a bit of creative thinking.

Steer Clear of the Boss-as-Buddy Dilemma, Experts Warn

KnowWPCarey — Wed, 07 Jun 2006 10:42:35 EST

The structure of the modern workplace has made it such that friendships are being formed between employees and managers. For one thing, people are spending more time at the office than ever before, so it's natural that their social circles are being filled out with other people in the workplace. In addition, as companies encourage managers to assume the roles of coach and mentor to employees, corporate-made barriers that once kept the two sides apart have crumbled. A management professor at the W. P. Carey School of Business has studied workplace relationships, and he sees the boss-as-buddy scenario as fraught with trouble. "There are contradictions between being a friend and being a boss," says Blake Ashforth. "And those contradictions are real. If you don't expect them, that's when they can cross the line and cause real trouble."

Universal Health-Care Coverage: Cheaper in the Long Run?

KnowWPCarey — Wed, 07 Jun 2006 10:42:35 EST

Thirteen years after then-First Lady Hillary Clinton's 1,000-page universal health-care plan met with derision, an increasing number of public policymakers are coming full circle, advocating mandatory enrollment for everyone and coverage regardless of age, income and pre-existing medical problems. Evidence of the apparent attitude adjustment is obvious in state legislatures, where proposed laws such as Massachusetts' Health Care Trust, which would establish a universal, single-payer health plan for all Massachusetts residents, are being debated. Legislators' willingness to embrace single-payer salvation reflects less a change of heart than a key realization: Statistics indicate universal health care is cheaper, in the long run, than the status quo. Arizona health policy experts gathered to discuss these issues at a "Faces of the Uninsured" conference recently in Phoenix.

High-Flying CEOs Risk Losing Touch with Their Companies

KnowWPCarey — Wed, 07 Jun 2006 10:42:35 EST

Are America's top CEOs living in a world apart from the rest of us? The average compensation package for a CEO of an S&P 500 company last year was $11.7 million -- about 185 times greater than the average salary of a rank-and-file employee. Even in the wake of the recent corporate accounting scandals, boards are still happy to pay whatever it costs to bring in their CEOs of choice. It's hard to blame executives for taking what's offered. But there's a risk to the high life: Those who live too well, say experts at the W. P. Carey School of Business, can alienate their employees, lose touch with customers and, ultimately, put their companies at risk -- simply because they no longer understand the world around them.

Research Supports Value of IT Consults in Post-SOX Age

KnowWPCarey — Wed, 07 Jun 2006 10:42:35 EST

In the wake of spectacular corporate collapses, the Sarbanes-Oxley Act established new rules on a scale not seen since those meant to ameliorate the economic calamities of the 1930s. But three experts at the W. P. Carey School of Business argue that although many of the law's provisions are sound, it may overreach in others. The researchers disagree with the common perception that the pre-SOX consulting fees paid by companies to their auditing firms were actually veiled bribes or leverage to ensure positive audit opinions. They also concluded that, despite growing skepticism, businesses believe that information technology is more than a simple commodity and can indeed produce value and competitive advantage.

CANAMEX Corridor Opens New Options for Trade with Asia

KnowWPCarey — Wed, 24 May 2006 10:42:35 EST

The CANAMEX Corridor of Innovation initiative has been working in recent years to plan improvements to public and private shipping, rail, highway and inspection facilities through a multistate cooperative of Arizona, Nevada, Utah and Idaho. Now, most truck and freight train traffic in Arizona goes east and west. CANAMEX (aka "Smart Corridor") has the potential to free up north-south trade in North America and more efficiently reach out to the Far East. CANAMEX can expand trade to more markets by easing bottlenecks, according to experts at Arizona State University and the W. P. Carey School of Business. Stepped-up trade with China, Japan and other Asian nations has made Los Angeles-area ports so busy that CANAMEX planners are looking south for easier access to the Pacific trade routes.

Take Note: Laptop Supply Chain is Not What You'd Expect

KnowWPCarey — Wed, 24 May 2006 10:42:35 EST

U.S. sales of notebook PCs outpaced desktop computers for the first time in 2005, garnering 53.3 percent of the total PC retail market, according to research firm Current Analysis. Behind the notebook industry's success lies a flexible, time-sensitive supply chain that straddles the globe in the design, manufacturing, configuring, and delivery of merchandise to customers. Top-selling brands such as Dell, HP, Apple, and Compaq are all based in the United States, but the computers themselves (like most consumer electronics these days) are manufactured half a world away in China. What's interesting about the notebook supply chain is the fact that many of the players for these high-tech products rely not on technology at all, but rather on personal relationships, to get the job done.

High Commitment, Strong Performance: Companies Can Have Both

KnowWPCarey — Wed, 24 May 2006 10:42:35 EST

In recent years, the proliferation of business layoffs, the rise in use of contract and part-time employees, vanishing pensions and eroding health-care benefits all testify to a new employer/employee relationship. This new relationship began to emerge in the 1980s, when getting "lean and mean" was a common corporate credo, and under this new liaison, corporate loyalty to employees took a direct hit. But has this proven to be a successful strategy? A study headed by a professor of international management at the W. P. Carey School of Business found a lack of mutual commitment between employers and employees is highly correlated with negative employee behaviors and weaker financial performance.

An Engaging History of 'The Street' -- Warts and All

KnowWPCarey — Wed, 24 May 2006 10:42:35 EST

When seasoned financial journalist Eric J. Weiner sat down to write a history of Wall Street, he decided to let the larger-than-life characters do the talking for him. The result is a fascinating account of the events that have shaped American business, and America as a whole, for the past 146 years. In this remarkably revealing and surprisingly readable book, Weiner invites his readers into the exclusive clubs, tense boardrooms, and luxurious New York high-rises where billions have been made and lost, where a nation's financial footing has been threatened and saved (more than once), and where Wall Street legends have risen and fallen.

'Warrior Spirit with a Servant's Heart': SWA's Thriving Culture of Service

KnowWPCarey — Wed, 24 May 2006 10:42:35 EST

A lot has changed in the airline industry since an upstart Southwest Airlines opened for business with 198 employees and three planes in 1971. "This is an industry that has managed to lose $40 billion in the past four years," says David Ridley, recently retired vice president of marketing and sales for Southwest, in a speech at the W. P. Carey School of Business. "Since its inception in the early '30s, the industry has been in the red." Yet Southwest manages to soar above the industry's dismal history. Ridley pointed out that Southwest has achieved consistent profitability -- the company will pay its 119^th consecutive quarterly dividend next month -- without a single "involuntary furlough." At the same time it has created a workplace culture that has landed the company year after year in the top five of Fortune magazine's best places to work.

Can the Flow of Knowledge Be Captured in a Business-Process Rubric?

KnowWPCarey — Wed, 24 May 2006 10:42:35 EST

Remember the last time your organization developed a new product? Think about how many people were involved and how much expertise you had to find within the organization: marketing, engineering, operations, accounting and sales. Few would disagree that new product development is an intense process, as are undertakings such as developing a strategic plan or putting together a competitive bid. Researchers at the W. P. Carey School of Business say these processes are more than just complicated -- they fall into a new rubric called Knowledge Intensive Business Processes (KIBP). Is it possible to apply what has been learned about improving basic business processes to more complex, knowledge-intensive processes? The researchers believe it is.

Focus on Goals, Ethics for 'Me Inc.,' Stauth Urges MBA Grads

KnowWPCarey — Wed, 24 May 2006 10:42:35 EST

What's next? That's the first thing graduates hear after "congratulations." But the deeper question is one that graduates should continue to ask themselves throughout their careers: "what comes after 'next'?" After retiring as CEO of Fleming Foods, Bob Stauth spent the next eight years mentoring W. P. Carey MBA students. Speaking at the W. P. Carey School's recent graduate convocation, Stauth advised students to approach their careers as if they were managing "Me Inc." Pursue a forward strategy to make sure that your career plans match your passion, he advised, and when faced with questionable practices, hew faithfully to your ethical standards.

Arizona Sets Sights to Become a Player in the Global Economy

KnowWPCarey — Wed, 10 May 2006 10:42:35 EST

Arizona is at a crossroads, looking back at 25 years of spectacular growth and forward to a future that, while promising, is also uncertain. As one of 10 identified "megapolitan" areas in the U.S., Arizona faces the choice of creating high-quality jobs or ignoring that need. Since ignoring it isn't an option, leaders in business, education and government throughout the state are joining forces to create a region where the biotech and nanotech industries can thrive. These and other relevant topics were discussed today at the annual forecast lunch hosted by the Economic Club of Phoenix: "Arizona in the Global Economy: Ready or Not?"

Picky, Picky: Consumers Tend to Reject 'Contaminated' Merchandise

KnowWPCarey — Wed, 10 May 2006 10:42:35 EST

Did you ever notice how shoppers often thumb through magazines, but when it comes to making a purchase, they never pick the one at the front of the rack? The reason is perceived "product contamination." A W. P. Carey School of Business marketing professor was among a group of researchers interested in exploring the phenomenon of product contamination and the costs to retailers. Their findings confirmed that consumers are significantly less likely to buy an item they believe was touched by other consumers. The results, the researchers say, should hold obvious interest for retailers and merchandisers, who probably lose an untold amount of money each year due to product contamination.

Not Every Retailer Needs E-Commerce to Score Global Success

KnowWPCarey — Wed, 10 May 2006 10:42:35 EST

The U.S. Department of Commerce reports that 2005 U.S. e-commerce sales rose to $86.3 billion -- 25 percent over 2004 sales. Yet e-commerce represents only around 2 percent of U.S. retail sales. Why are some successful companies, even some large ones (think IKEA or Bath and Body Works), not embracing fully the proven sales driver that is the Web? A new research study of cost-to-serve dynamics for Internet retailing answers this question. The simple fact is, Internet sales are just not a good fit for every product, according to the researchers.

Beauty and the Sales Commission: Looks Can Boost Performance

KnowWPCarey — Wed, 10 May 2006 10:42:35 EST

You wouldn't expect to see a scrawny, spectacled, beak-nosed Chippendale dancer any more than you'd expect Hooters to hire an obese waitress. But, surely, looks don't matter for the highly educated and trained sales professionals that pharmaceutical companies send to doctors' offices. Or do they? As it turns out, research co-authored by a W. P. Carey School marketing professor shows that looks do make a difference -- even when the salesperson is selling something as serious as medication to someone as scientifically-minded as a physician.

Supply Chains Critical to Well-Being of Health-Care Systems

KnowWPCarey — Wed, 10 May 2006 10:42:35 EST

In the health-care field where precision is literally a matter of life and death, it may seem strange, even a little frightening, that a crucial supportive function like inventory and purchasing often is a hit-or-miss process. But unlike other industries where supply chains receive detailed attention, in the health-care system, no one's yet figured out how to cross the t's and dot the i's. While there are some high performing systems, others fall short of the supply-chain efficiencies that have been adopted in other industries. Several researchers at the W. P. Carey School of Business are attempting to find a way to benchmark how hospital supply chains work. A best-practices model, the researchers hope, will result in a new benchmarking approach that could boost health-care reform significantly.

No Pain, No Gain: Yuan Float Leads to Fairer Trade -- at a Cost to U.S. Consumers

KnowWPCarey — Wed, 10 May 2006 10:42:35 EST

Since China began floating its currency 10 months ago, allowing it to fluctuate in value against the U.S. dollar, the yuan has appreciated by about 3 percent. As the yuan floats higher, the United States' trade deficit with China could shrink as China imports more American-made goods and Americans buy less Chinese goods. The upside is fairer trade, but the downside is that American consumers will tend to pay more for Chinese-produced textiles and electronics. The yuan float comes amid continuing pressure by U.S. politicians to protect jobs, but experts at the W. P. Carey School of Business caution against an excess of protectionism, saying job losses in the U.S. will be low-tech and that they will be replaced by higher-paying jobs higher up the technology food chain.

'The Only Sustainable Edge': A Diagnostic Toolkit for Business Leaders

KnowWPCarey — Wed, 10 May 2006 10:42:35 EST

A series of questions designed to function as business diagnostic tools by Ivy League researchers John Hagel III and John Seely Brown are, on their own, well worth the $25 retail price of "The Only Sustainable Edge." Woven through the book, their questions repeatedly gather executives 'round the conference table to pony up answers to essential questions on spending, performance and profit centers versus return on investment, R&D and other key calculations. The authors argue convincingly that once a company has exploited these diagnostic tools fully, leaders will know what operations should be outsourced, spun off, sold, expanded, initiated or shut down.

The Dinosaur Myth: Mainframe Behemoths Aren't Dead Yet

KnowWPCarey — Wed, 26 Apr 2006 10:42:35 EST

The mainframe, in its fifth decade of existence and long thought to be the old, gray mare of institutional computers, has not died the speedy death most people assumed it would. Far from dinosaurs, mainframes have proven to be reliable and essential, and they still handle an estimated 70 percent of business data. The unexpected endurance and indispensability of mainframe server technology in big business may have faked out the job market: Experts in the industry and at the W. P. Carey School of Business say a shortage of mainframe-trained technicians looms as the mainframe generation nears retirement after decades in which younger technicians gravitated toward other, sexier, areas of enterprise computing. IBM has come up with an idea to avert the coming shortage of mainframe technicians: The IBM Academic Initiative, which fosters coordination between universities' curriculums and IBM's mainframe expertise, is designed to encourage a greater supply of mainframe workers for its customers through cooperative higher education ventures.

'Analysis Engines' Enhance Speed, Accuracy of Internet Searches

KnowWPCarey — Wed, 26 Apr 2006 10:42:35 EST

Google is a lifesaver for information seekers who would otherwise be lost in the quagmire of cyberspace -- still, it has its flaws. Work is under way in technology circles to develop a better mousetrap -- building on Google's superior Web search functions to vastly improve the search efficacy of public Internet databases. One remedy seems to be IBM's UIMA (unstructured information management architecture. While UIMA is not a search engine, it is a software platform allowing searchers to use concepts, themes and ideas -- rather than keywords -- to scan databases with sophisticated software components called "analysis engines." The analysis engines "scan documents and identify concepts and relationships in documents," says an IBM senior manager. W. P. Carey School of Business scholars take a look at this and other new Web research tools.

In a Post-9/11 World, Experts Find Ways to Crack E-Mail Code Language

KnowWPCarey — Wed, 26 Apr 2006 10:42:35 EST

Long before the Patriot Act put government online eavesdropping in the daily news, plenty of sneaks were finding ways to keep their schemes hidden from snooping eyes. Al Qaeda operatives, for instance, reportedly substituted the word "wedding" for "attack" in e-mail messages. Finding such word substitutions has been a hit-or-miss process for federal investigators trying to ferret out online treachery, or even for corporate security pros trying to catch employee collusion. However, new research proves that computer programs are capable of detecting word swaps that conceal the true meaning of e-mail messages. An information management professor at the W. P. Carey School of Business joined with colleagues at other universities to test word-detection methods. The team found that the best approach combines several measures of linguistic oddity.

(B)2B or not (B)2B? To Move from Products to Services Is the Question

KnowWPCarey — Wed, 26 Apr 2006 10:42:35 EST

Ever since industry powerhouses like General Electric launched enormously successful services divisions in the mid-1990s, an increasing number of goods-producing companies have attempted to make the jump into services as well. They have good reason. Launching such a division can not only generate profits, but also give old-school manufacturing companies a leg up on competition that may not yet be in the services game. But some have not have enjoyed business-to-business success -- some, in fact, have failed miserably when attempting to get into the services game. A paper co-written by the director of the W. P. Carey School's Center for Services Leadership titled "Forming Successful Business-to-Business Services in Goods-Dominant Firms" offers valuable insights for companies eyeing a move into B2B services.

Can Arizona Universities Reconcile 'Nearly Free' Mandate With Improvement Mission?

KnowWPCarey — Wed, 26 Apr 2006 10:42:35 EST

The Arizona Constitution mandates that "the instruction furnished shall be as nearly free as possible" at the state's universities, and that the state appropriate money for the "development and improvement" of its universities. In 1998, the Arizona Board of Regents adopted an operational interpretation of "as nearly free as possible" that maintains resident undergraduate tuition at Arizona universities in the bottom one-third among the 50 states' senior public institutions. A recent report published by the W. P. Carey School of Business reviews the constitutional requirements and examines how the operational interpretation has influenced financial resource levels at Arizona universities. "First, the operational one-third rule is essentially arbitrary," says report co-author Dennis Hoffman. "Second, the list of 50 senior public institutions is not a list of peer or aspirant peer schools. Third, the 'development and improvement' mandate takes on more significance under the current operational interpretation of the 'as nearly free' clause."

The Importance of the Test Drive: Explaining Worker Turnover Differences Between the U.S. and Europe

KnowWPCarey — Wed, 26 Apr 2006 10:42:35 EST

Following weeks of strikes and protests, French President Jacques Chirac recently withdrew a proposed youth-labor law that sought to lower France's 22 percent youth unemployment rate by making it easier to hire and fire workers under the age of 26. The controversy highlighted differences in labor practices in Europe versus the United States -- a topic that W. P. Carey economics Professor Richard Rogerson has explored in depth. In a recent paper that looks at worker turnover in the United States and in Europe, Rogerson and his co-author suggest that when government policies interfere in the ability of employers and workers to "test drive" a new relationship, the economic costs can be very large.

True Consumerism: The Cure for an Ailing Health Care System?

KnowWPCarey — Wed, 26 Apr 2006 10:42:35 EST

In a few years, one out of every five dollars spent in this country will be consumed by the health care system, according to Michael McCallister, president and CEO of Humana, Inc. By the year 2022, if trends continue, it will cost $55,000 to insure the average American family, he warned. "As we move toward a global market, we can't expect the economy to soak this up indefinitely without other implications," McCallister said in a speech at the W. P. Carey School's "Transforming American Healthcare: Pathways to Change" symposium. Solutions, he said, include adoption of technology by the health care industry and a paradigm shift toward true consumerism.

eBay's Meg Whitman: An 'Absolutely Fearless' Innovator

KnowWPCarey — Wed, 12 Apr 2006 10:42:35 EST

Peers laud her cross-cultural savvy, noting that while other dot-com era startups crashed and burned, hers went global. Meg Whitman, who was presented with the Dean's Council of 100 Executive of the Year Award from the W. P. Carey School of Business, has led eBay to leadership as the world's biggest cyber-auctioneer. Soon, eBay will offer another service to the online community. The eBay Express specialty site will feature bestsellers at fixed prices.

IT is Prescription for Ailing U.S. Health Care System

KnowWPCarey — Wed, 12 Apr 2006 10:42:35 EST

This is the decade when the world will undergo profound disruptions in health care -- "sweeping change that threatens established models and businesses," according to Caroline Kovac, general manager of IBM's health care and life sciences division. Part of that change will be driven by lengthening life expectancy, which has increased 30 years over the last century, Kovac says. As the baby boomers reach their golden years, the system will be burdened by chronic conditions like heart disease, arthritis, diabetes. Their care will force medical costs ever skyward. Kovac asserts that our health-care system's salvation lies in using IT to move toward personalized, molecular medicine with an emphasis toward proactive, rather than reactive, approaches to patient care.

Gold Producer Faces Unique Challenges in Controlling Its Supply Chain

KnowWPCarey — Wed, 12 Apr 2006 10:42:35 EST

At first glance, it would appear that supply-chain troubles would be a stranger to the gold mining industry. But heading the world's largest producer of gold presents different kinds of challenges and opportunities, according to Wayne Murdy, CEO of Newmont Mining Corp. "We have the luxury of producing a product that sells itself. We have virtually no advertising budget. We have virtually no sales organization," Murdy told an assembled group of supply-chain executives at the W. P. Carey School of Business. "There are virtually no receivables, because of the fact that when we deliver the gold, the money is wire-transferred instantly." And yet, Newmont has accumulated some of its reserves through mergers and acquisitions, which eventually saddled the company with inefficient and redundant supply chain bureaucracies. Murdy shared with the audience how Newmont managed to tackle these issues while fostering initiative and teamwork among its managers and vendors.

Public Shaming Spurs 'Worst Boards' to Clean Up Their Act

KnowWPCarey — Wed, 12 Apr 2006 10:42:35 EST

What happens after a respected national magazine names a company to its list of worst corporate boards? Public shaming appears to spur companies to take action, and the result is often good for shareholders. W. P. Carey School of Business accountancy Professor Dahlia Robinson and co-authors watched 50 firms that had been pilloried by Business Week and found evidence that governance and performance improvements tend to follow. In fact, the researchers found that two years after attaining the Business Week listings, 34 of the 50 designated "worst boards" had made observable board changes including new directors from outside the corporation, removal of CEOs or "other changes to improve the structure of their boards."

Institutional Investors Making Big Splash in Hedge Fund Pool

KnowWPCarey — Wed, 12 Apr 2006 10:42:35 EST

Long considered an elite investment for high net-worth individuals, smaller private banks and certain institutional investors, the hedge fund market has grown up from a multimillion-dollar cottage industry into one where assets total more than $1 trillion. And the bulk of the growth in the past five years has been attributable to the entrance of institutional investors. Experts say the flood of capital has caused overcapacity in some hedge fund strategies, which, in turn, has caused deteriorating market conditions. Overall, pension fund managers are not at risk when investments are made in hedge funds or other alternative investments, says Herbert Kauffman, finance professor at the W. P. Carey School of Business. "But," he adds, "they are more at risk than they were when they didn't risk any of it in these alternative investments. To the extent alternative investment allocations keep expanding, however, there may come a time when increased alternative investment allocations can become very worrisome."

Ball-Park Estimates: Strategies Similar for Sports Bettors, Investors

KnowWPCarey — Wed, 12 Apr 2006 10:42:35 EST

The sports betting world may seem like an unlikely laboratory to test theories of investment-strategy psychology, but a team of finance scholars has done just that. In fact, the researchers say, the market for investments and the market for sports wagering are similar in several important ways, including the role of information, expert opinion, sentiment and middlemen in each. The researchers used data from the sports betting market to test a key investment-psychology theory, and discovered that in the real world, sports bettors did not behave the way the theory predicted they would.

Successful Women Share Pathways to Empowerment

KnowWPCarey — Wed, 12 Apr 2006 10:42:35 EST

Working women face a plethora of issues in their lives: decisions about taking time off for family; whether to start their own company; if, when and how to advance their education. While navigating the path to success, women find many obstacles -- some in their environment, others within themselves. So, how does a woman define and achieve her own idea of success in her work, personal and spiritual life? Several successful women got together to speak on the subject at the recent Women's Empowerment Seminar hosted by the W. P. Carey School of Business.

Government Has Crucial Role in Health-Care Reform, Says Bradley

KnowWPCarey — Thu, 06 Apr 2006 10:42:35 EST

"The best health care in the world is here in America. But the reality is ... we don't have the best health-care system in the world," said Bill Bradley, former Democratic senator from New Jersey. The current system is unsustainable, he said, echoing what many health-care professionals and those outside the system have been saying for years. It can be remedied if people call on their government to develop common goals, guiding principles, and measurable successes. Among the principles Bradley suggested: providing all individuals with a choice of health-care plans at differing costs; copays of some sort for all services; individual responsibility for behaviors such as smoking and obesity that cause health problems, and a cooperative effort of government and private companies to end to the cost-shifting game.

Supply-Chain Makeover Rejuvenates Medical Center

KnowWPCarey — Thu, 06 Apr 2006 10:42:35 EST

Chief financial officers searching for ways to cut costs while jump-starting service might want to spend an afternoon with Allen Caudle, vice president of supply chain at Swedish Medical Center in Seattle, Washington. Caudle's supply-chain strategies saved Swedish more than $30 million in 2005. As his peers increasingly rely on group purchasing organizations (GPOs) to get better prices from vendors, Caudle and his team manage spending the old-fashioned way, through strict internal buying policies, central purchasing, self-contracting and tight vendor control. A devotee of Toyota's "lean management" approach, Caudle eyes everything from technicians' work habits to the time it takes housekeeping to clean empty rooms. His slogan is: "Use our minds before we spend our bucks."

Health-Care Transformation: Crisis or Opportunity?

KnowWPCarey — Thu, 06 Apr 2006 10:42:35 EST

When Thomas Donohue scans the American health-care landscape, he sees an opportunity. Despite the critics, regardless of the estimated 45 million in the nation without health-care coverage, no matter the annual double-digit cost increases, Donohue believes that -- with hard work and some common business sense -- a broad-based coalition can put health care on the path to positive change. We should no longer spend time worrying about what government is going to do about health care, says Donohue, president of the U.S. Chamber of Commerce, in a recent address before the Transforming American Healthcare National Symposium sponsored by the W. P. Carey School of Business. "It is time for us to decide that there are lots of things we can do as institutions, as businesses, as universities, as communities, that will improve the system."

Will Consumers Lead the Health-Care Revolution?

KnowWPCarey — Thu, 06 Apr 2006 10:42:35 EST

Major obstacles must be overcome before crucial advances such as nationwide electronic medical records or gene-targeted drugs are available to most Americans, according to health communications professor Gary Kreps. So many of us are frustrated with the deficiencies of our health-care system that sooner or later, we'll force a "modern revolution" from the bottom up, he predicts. Once the dust settles, a new health-care model will emerge with an increased focus on prevention and early detection of disease. But Kreps foresees other changes, too, including "a shift from a provider to a consumer revolution" that mandates much more home-based care, customer-friendly doctor's offices and clinics, and a stronger emphasis on eliminating pain and discomfort.

Drug Research Needs Paradigm Shift, Says FDA Commissioner

KnowWPCarey — Thu, 06 Apr 2006 10:42:35 EST

Researchers are beginning to define diseases by their biological pathways rather than their symptoms, and medicate accordingly. Developing better drugs, faster, hinges on "new science" -- biomedical research into the cause of disease; nanotechnology; bioinformatics to capture and synthesize health data, and biological/micro assembly methods. According to FDA Deputy Commissioner Janet Woodcock, scientists and computer experts already are hard at work in each of these areas. "Biomarker development must be tied to drug development and the FDA must participate," Woodcock says. "We need to translate the science into drug development, and we need mechanistic clinical evaluation, not empirical evaluation."

Change from the Inside Out: Keystones are Risk, Competence and Persistence

KnowWPCarey — Thu, 06 Apr 2006 10:42:35 EST

Many health-care professionals believe a true transformation of the system requires changes from within. Rather than piecemeal fixes around the edges or in pockets, the very fabric that makes up the system -- the infrastructure -- has to change in order for the system to get ahead of the technological and medical advances. One example of this kind of fundamental change began in the mid-1950s, when a Duke University medical school professor attempted to alleviate the shortage of physicians by creating a new model of teaching medical students: The physician assistant came to be a critical member of the health-care community. Another important change will occur when leaders fully collaborate with a team, recognize that everyone brings something different to the table, and acknowledge that they don't always have all the information. The keystones of transformation, say health-care innovation experts, are risk, competence and persistence.

Arizona Seizes Initiative with 'Health-e Connection' Project

KnowWPCarey — Thu, 06 Apr 2006 10:42:35 EST

Arizona's health information technology (HIT) industry and health-care delivery system are on the brink of radical transformation as Arizona Health-e Connection prepares to publish its proposal offering a "road map" for development and implementation of a statewide, unified HIT network. "What the road map does is clearly position us front and center to take a leadership position -- to become sort of a model for other states," said panel moderator Ajay Vinze, director of the W. P. Carey School's Center for the Advancement of Business through Information Technology (CABIT).

'Drug Wonks' Pushing for Reform in Pharmaceutical R&D

KnowWPCarey — Thu, 06 Apr 2006 10:42:35 EST

Robert Goldberg is among several leading pharmaceutical experts promoting the shift toward evidence-based medicine. Co-founder of the nonprofit Center for Medicine in the Public Interest (CMPI), Goldberg asserts that the evidence-based approach is focused on a basic biological fact: Various individuals respond differently to the same medicine. And, the same disease can work differently from one person to another. As Goldberg explained, "There isn't one form of cancer or heart disease; there are many paths to getting sick and many paths to wellness." The CMPI bills itself as a clearinghouse of the latest and greatest information on drugs -- their development, safety and accessibility -- and is best known for its blog, Drugwonks.com.

Natural Gas Prices Defeat Hopes for Cheap, Plentiful Energy in the West

KnowWPCarey — Thu, 06 Apr 2006 10:42:35 EST

At the time of the California energy supply crisis of 2001, a number of Western states were net exporters of electricity. They realized the Golden State would need much more electricity than it could supply itself. As a result, "a whole bunch of new power plants and extensions of old power plants were constructed elsewhere in Western states," says research economist Dawn McLaren of the W. P. Carey School of Business. "Everybody was planning to construct a power plant." But the new plants were built to utilize generators fired by then-cheap natural gas. Today, thanks to the ravages of hurricanes Rita and Katrina and other factors, the spiraling cost of natural gas has created a whole new set of energy worries for consumers in the West.

Fallout from a Corporate Scandal: Enron Q & A

KnowWPCarey — Wed, 29 Mar 2006 10:42:35 EST

In Houston this week, the prosecution rested its case the fraud-and-conspiracy trial of Enron's founder and former chairman, Kenneth Lay, and former chief executive, Jeffrey Skilling. The 2001 implosion of Enron amid an avalanche of accounting failures, inflated profits and collapsed stock has been on public show since the trial opened nearly nine weeks ago. Experts at the W. P. Carey School of Business recently took part in a question-and-answer survey on the reverberations of the Enron scandal. Here, they weigh in with their observations and advice since the notorious collapse cost thousands of Enron employees their livelihoods and life savings.

'The Wal-Mart Effect' Probes the Good, the Bad and the Ugly

KnowWPCarey — Wed, 29 Mar 2006 10:42:35 EST

Go to Google and key in "Wal-Mart." You'll get some 121 million hits -- mostly a roiling, passionate stew of haters and defenders of the retail giant with the smiley-face mascot and the motto "Always Low Prices. Always." What you won't find, is indifference. That's because Wal-Mart affects all of us in deeply important ways. Charles Fishman's new book, "The Wal-Mart Effect: How the World's Most Powerful Company Really Works -- and How It's Transforming the Economy," details how the retail behemoth influences not only its suppliers, but also our shopping patterns, our ideas about quality and consumption, and the character of communities.

Top Customer Service Providers Value Their Front-Line Employees

KnowWPCarey — Wed, 29 Mar 2006 10:42:35 EST

A smart customer service employee knows there is a fine line between a pleasant, efficient discussion of the customer's needs leading to the discovery that she would be better served with the company's upgraded service ... and an exchange resulting in that same customer canceling her service, slamming down the phone in frustration. In either case, the result depends largely on the qualities of the individual employee. But how many companies realize the value in acquiring and retaining a top-flight front line of service employees? A marketing professor at the W. P. Carey School of Business and her colleagues believe that successful companies do more than come up with a strategy to provide customized customer service -- they know it is the employees on the front line who have to implement that strategy.

Wishing Upon a Star Won't Ensure a Mutual Fund's Astral Performance

KnowWPCarey — Wed, 29 Mar 2006 10:42:35 EST

The allure of a star is nearly irresistible, and mutual fund investors are not immune. Investors are drawn to mutual fund families that boast a stellar performer, and the less luminous funds in the family benefit from a spillover effect resulting from their proximity to the headliner. This benefits fund managers, who are compensated based on assets under management, but the presence of a star in the portfolio does not necessarily mean that all of the funds in the family will do well for investors. Research by a W. P. Carey School of Business finance professor concludes that an investing strategy that consists simply of hitching onto stars is naive.

Pediatric Studies Link TV Advertising with 'Global Fattening'

KnowWPCarey — Wed, 29 Mar 2006 10:42:35 EST

Since 1980, the proportion of overweight U.S. children ages 6 to 11 has more than doubled, according to the Centers for Disease Control. Childhood obesity doesn't stop at our nation's borders; it's a global trend. The usual suspects -- poor eating habits, lack of exercise, parental obesity, genetics, and even demographics all play a role -- but one controversial "x-factor" is emerging as a primary catalyst for the explosive growth of overweight children: television food advertising. Numerous studies at the W. P. Carey School of Business and around the world have found a link between the number of TV commercials children watch and the amount and type of food children consume.

Tax Amnesties: Revenue Drivers or Duds?

KnowWPCarey — Wed, 29 Mar 2006 10:42:35 EST

Tax amnesties, which have been offered in 35 states and the District of Columbia since the 1980s, are enjoying a wave of popularity. Data from the Federation of Tax Administrators show that since 2000, states have offered 35 tax amnesty programs. Under these programs, errant taxpayers face no penalty, no prosecution and, sometimes, no interest on delinquent taxes they pay. The state, on the other hand, gets its money and, possibly, some new taxpayers on the rolls. This may sound like a winning proposition for all, but some researchers at the W. P. Carey School of Business question the value versus the cost. Tax amnesty programs don't come without a price tag, they say -- and the downside of these deals actually may outweigh the minimal new revenue that amnesties usually bring in.

How to Embrace Globalization and Succeed in Business

KnowWPCarey — Wed, 15 Mar 2006 10:42:35 EST

"Offshore Nation" is a guide for business leaders interested in the how-to aspect of services globalization. The authors, outsourcing consultants for many Standard & Poor's 500 companies, stick to what they know best by writing a book that is a strategy guide as well as a best practices approach to global outsourcing. The book offers a look at services globalization, what it means for business enterprises, and the best ways a company can optimally leverage services globalization as part of its overall corporate strategy.

Border Out of Control: Flawed Policies Result from Unreliable Data

KnowWPCarey — Wed, 15 Mar 2006 10:42:35 EST

Policymakers are operating in the dark when they tackle immigration issues, a research economist from the W. P. Carey School of Business recently told a gathering of state legislators from around the country. Without accurate data, said Dawn McLaren of the W. P. Carey School of Business, reform measures will produce the same results as policies past: unintended consequences. The United States has failed to address the labor market forces leading it to produce flawed immigration policy, according to McLaren. Among these unintended consequences: a continuation flood of illegal immigration and the creation of new black markets.

Basic Research by Universities Is Critical to U.S. Innovation

KnowWPCarey — Wed, 15 Mar 2006 10:42:35 EST

Basic research is the raw material of new knowledge and the base of an innovative society, says Dennis Hoffman, associate dean for research at the W. P. Carey School of Business. But how much public money should be spent on the research and development infrastructure, and what role should universities play? A paper written by W. P. Carey research Professor Kent Hill suggests that universities are better suited to pursue basic research than private firms or other research organizations. Hill's paper, "Universities in the U.S. National Innovation System," is one of a series written for ASU's Productivity and Prosperity Project (P3), a public policy research initiative.

Corporate Culture Can Drive Change -- Or Scuttle It

KnowWPCarey — Wed, 15 Mar 2006 10:42:35 EST

Much has changed at Goodrich Corp. since its tire-making heyday. Through a series of acquisitions, the company has recast itself as a $5.4 billion aerospace and defense powerhouse, and eventually dropped the tire business altogether. Along the way, company executives began to think about culture as an enabler of the new company strategy. With the help of the W. P. Carey School of Business, Goodrich is now in the early stages of a process that executives hope will not only bring a new sense of teamwork to the company, but also support its new long-term strategy. It's no small effort, but experts say the culture project at Goodrich, imposing though it may be, is essential to the company's long-term success.

No Stopping Wal-Mart In Its Quest for Uber-Efficiency

KnowWPCarey — Wed, 15 Mar 2006 10:42:35 EST

Few readers of The Wall Street Journal were surprised when a recent article about Wal-Mart noted that the discount retail behemoth generates 2 percent of the U.S. Gross Domestic Product. Just about every urban neighborhood, small town and rural area seems to have its own Wal-Mart, yet the company's sales continue to climb ever higher. Can the mighty retailer continue to grow at the current pace? Absolutely, according to a group of supply chain experts at the W. P. Carey School of Business. Overseas expansion is one avenue of expansion. Another is technology, which is already key to Wal-Mart's success. To gain even more control over its supply chain, the company is pushing various initiatives designed to cut costs even more, increase efficiency and improve purchasing decisions.

'New' US Airways Streamlines a Multicultural Legacy

KnowWPCarey — Wed, 15 Mar 2006 10:42:35 EST

Less than a year ago, when America West Airlines chief Doug Parker announced plans for the merger of his company with US Airways, critics called the plan "Project Dumbbell." Industry insiders considered US Airways one of the "legacy" carriers, dinosaurs mired in historic ways of doing business, unable to respond with agility to fast-changing market conditions. But, Parker recalls, "We recognized we could take the best of both companies and make a nationwide network with reasonable prices." One of the first problems was the name of the newly merged entity. US Airways was favored for its nationwide name recognition. "Unfortunately, that brand recognition did not have great perceived value," says Parker, now CEO of the newly-merged carrier, "So, part of our problem was to rehabilitate the brand."

Spin-offs Can Profit Parent Companies -- At a Price to Managers and Employees

KnowWPCarey — Wed, 15 Mar 2006 10:42:35 EST

Merger mania and a bigger-is-better mentality largely rule the business world, but sometimes the exception -- spin-offs -- provide an alternate path to prosperity if the organization can weather the storms of such a radical change. Among the keys to spin-off success are supportive management and flexible employees, according to Kevin Corley, a management professor at the W. P. Carey School of Business. "Two words help us understand why spin-offs occur: money and flexibility," Corley says. "The biggest reason for spinning off part of a company into its own independent entity is that there is an opportunity for the owners and/or shareholders of the parent company to realize a monetary gain through the spin-off."

Home Shoppers Finding Less House for More Money in the West

KnowWPCarey — Wed, 15 Mar 2006 10:42:35 EST

The Phoenix, Arizona metro housing market may be showing signs of cooling off, but new home prices have never been hotter. It wasn't long ago that, amid the excitement over stratospheric housing prices in the region, affordability was something of an afterthought. But now the question is whether and how people can still afford to buy homes in the Phoenix area -- a market where buyers traditionally have gotten more bang for their buck compared to other places in the nation. The affordability update is featured in the current issue of the Western Blue Chip Economic Forecast published by the W. P. Carey School of Business.

Asthma Treatment Patterns Hold Surprises for Arizona Researchers

KnowWPCarey — Wed, 01 Mar 2006 10:42:35 EST

Asthma sufferers in Maricopa County, Ariz., who are on private health insurance plans are more likely to visit hospital emergency rooms for treatment than those on public insurance plans. That's one of the surprising findings in a new report, "Asthma in Maricopa County," by Arizona HealthQuery, a community health data system managed by the Center for Health Information and Research at the W. P. Carey School of Business. Professor Mary Rimsza said the finding came as something of a surprise to researchers.

Wi-Fi Part 3: Municipal Networks Spark Wi-Fi War in Washington

KnowWPCarey — Wed, 01 Mar 2006 10:42:35 EST

Across the U.S., city-sponsored plans to provide low-cost wireless Internet access have sparked opposing pieces of legislation in the House and the Senate. H.R. 2726 would prohibit municipal governments from offering telecommunications, information or cable services, while S.B. 1297, the Community Broadband Act of 2005, would preserve and protect the ability of local governments to provide broadband capability and services. Which proposal will triumph in the Wi-Fi war? Considering that co-sponsors of the Community Broadband Act sit on both sides of the aisle, politics alone probably won't decide the victor. Public opinion may have a stronger say.

Hamilton Jordan Pleads Case for Cancer Research Funding

KnowWPCarey — Wed, 01 Mar 2006 10:42:35 EST

An "ironic blessing and sense of purpose" steers Hamilton Jordan's life these days. Once President Jimmy Carter's chief of staff, Jordan now defines himself as a four-time cancer survivor dedicated to spreading hard-won knowledge about the health-care system to a public which may not fully realize the prevalence of cancer, and the scarcity of research dollars. Jordan shared his story with an audience at the Stuart A. Wesbury, Jr. Awards luncheon sponsored by the W. P. Carey School of Business. Jordan's message was simple: Early detection saves lives. Researchers urgently need more funding.

Market Developments Squeeze Giant Business Groups in Emerging Economies

KnowWPCarey — Wed, 01 Mar 2006 10:42:35 EST

Suppose your business is looking for manufacturing partners or trying to get a toehold in some emerging economy -- South Korea or India, for instance. Wouldn't you want to align your company with an organization that already has market clout in that locale? If so, you'd probably be looking for a business group and, chances are, your prospective partner is no pushover. More and more emerging-economy firms that are becoming increasingly competitive, say W. P. Carey School of Business researchers.

'Lipstick on a Pig': A Handbook for Modern-Day Crisis Communications

KnowWPCarey — Wed, 01 Mar 2006 10:42:35 EST

Spin is dead, according to communications expert Torie Clarke. The key to crisis communications is to own up immediately to your mistakes. In her book "Lipstick on a Pig: Winning in the No-Spin Era by Someone Who Knows the Game," Clarke writes that it's no longer possible to hide or explain away bad news. The Internet, together with a proliferation of electronic devices, connects us to traditional news sources, entertainment and e-mail 24 hours a day, seven days a week, just about anywhere in the world. Add blogs, podcasts, citizen journalists and disgruntled employees, and you get the picture of an environment where any piece of information -- including missteps -- can be trumpeted to the world instantaneously.

'Designing the Customer's Experience' Builds Strong and Lasting Bonds

KnowWPCarey — Wed, 01 Mar 2006 10:42:35 EST

It is no longer enough for businesses to provide customers with what they need. The savviest are offering "experience-centric service." By continually focusing on and refining the shopping or service experience, companies build a dollar-producing bond with customers that goes beyond mere product satisfaction to actual anticipation, according to Aleda Roth, a supply chain management professor at the W. P. Carey School of Business. Roth proposes that the same experience-centric approach that brings customers back again can also succeed in expanding their consumption and satisfaction, and ultimately, the company's revenue. "I'm interested in how a company can actually design their customers' experience, and in doing so, make a huge difference in profitability," Roth says.

Smooth Integration of Web Services Depends on Common Vocabulary -- Part Three

KnowWPCarey — Wed, 15 Feb 2006 10:42:35 EST

Many IT professionals, called upon to specialize in the integration of Web services, have morphed into "service choreographers." In working to employ service-oriented architecture (SOA), they are developing "ecosystem" awareness, an understanding of IT services interrelationships. In this third part of a series on the new IT paradigm, W. P. Carey Professor Michael Goul explains that the key to easily employing SOA may well start with ontology, or "a common vocabulary that allows multiple stakeholders to communicate and interact." Goul is a member of a team of researchers in an ontology development project aimed at creating just such a common vocabulary for IT services. Once complete, it could dramatically simplify how companies share capabilities and interact in service-oriented IT infrastructures.

A Little Goes a Long Way for Corporate PAC Contributors

KnowWPCarey — Wed, 15 Feb 2006 10:42:35 EST

The huge sums raised by corporate-driven Political Action Committees are legend, but the average voter is unaware of just how effective such contributions can be. Most citizens and even shareholders accept the existence of PACs, but questions arise when the legislation or favor that the company wanted ends up hurting more people than it helps, or when decisions are influenced more by money than by people -- people who have only their votes to give. Research co-authored by a W. P. Carey School of Business professor quantifies the impact of business contributions and comes up with some surprising conclusions.

SaaS Integration: The Emerging Trend in Service-Oriented Architecture

KnowWPCarey — Wed, 15 Feb 2006 10:42:35 EST

Businesses large and small are becoming familiar with SaaS (software as a service) -- most easily defined as software bought and maintained by an outside party which charges business customers to access their applications via the Internet. The rapid widespread adoption and integration of SaaS is facilitated by a continuing push toward service-oriented architecture. The future belongs to companies willing to join the next wave of the high-tech revolution, if they haven't already done so. "This is a journey, not a destination," says one IT expert in a recent presentation at the W. P. Carey School of Business. "We will always be moving toward a service-oriented architecture, not getting there."

For Extra Security, Try the Supercalifragilisticexpialidocious Approach

KnowWPCarey — Wed, 15 Feb 2006 10:42:35 EST

There may actually be a useful purpose for those annoying song lyrics that get stuck in your head. Easy-to-remember phrases could be the basis of a much more secure method of protecting computer information and accounts. They can be used as pass phrases. Research conducted by two information systems professors at the W. P. Carey School of Business demonstrates that, while there is no foolproof method of password security to ward off hackers, a long pass phrase is the best defense. Each additional character in a security code, be it password or pass phrase, means that it takes exponentially longer for a hacker's algorithmic program to find the correct combination of characters and unlock the password.

Fear and Loathing in the Office: Studying the Art of the Performance Review

KnowWPCarey — Wed, 15 Feb 2006 10:42:35 EST

Annual performance reviews can set stomachs to churning throughout the office, and with good reason. Tensions can run high if employees are put on the defensive by a supervisor who hasn't learned to conduct an evaluation effectively and with finesse. A professor of management at the W. P. Carey School of Business and his fellow researchers have discovered the key to successful performance reviews. Feedback, the researchers found, is more likely to be accepted and acted upon by employees if the criticism is given in specific, detailed terms, by a trusted, knowledgeable manager, in an environment that has been carefully cultivated to be feedback-friendly.

How to Handle a Windfall: Arizona Ponders Its Spending Priorities

KnowWPCarey — Wed, 15 Feb 2006 10:42:35 EST

It's high noon at the Arizona Capitol -- but unlike past partisan shootouts over spending cuts, this this year's standoff concerns the $1 billion revenue surplus. The windfall, an outcome of tax revenues in a red-hot real estate market, is the focal point of dissent over whether and how to spend it. And Arizona is not the only state with this dilemma. Data suggest that the flow of estimated income tax payments is strong nationwide -- strongest in states that have experienced rapid acceleration in their real estate sectors. But the temporary nature of these surpluses -- assuming the real estate boom won't last forever -- is forcing the question of how much should be used to support new permanent expenditures or tax cuts.

Adaptability: Essential Ingredient for Successful Project Management

KnowWPCarey — Wed, 15 Feb 2006 10:42:35 EST

Good projects frequently fail -- even when experienced managers are at the helm. In fact, the average project today will change the very nature of its organization in the process of fulfilling its objective, according to Dwight Smith-Daniels, a former professor of supply chain management at the W. P. Carey School of Business. With globalization, many projects now involve entities outside the company, outside the country. And projects are presenting unprecedented levels of uncertainty. Often it's difficult at the outset to define the desired outcomes, or the necessary resources and skills needed. The solution is a new approach to project management that builds in the adaptability business conditions now require.

Outsourcing Executive Sees 'Win-Win' Solution for Global IT Strategies

KnowWPCarey — Wed, 15 Feb 2006 10:42:35 EST

Cultural compatibility, along with quality software engineering and support, made India-based Tata Consultancy Services a $2.24 billion software outsourcing company with a tight grip on the Western market. "Software we write runs your banks, airlines, insurance companies," says Surya Kant, vice president of TCS. Kant was a featured speaker recently at the first session of the W. P. Carey School's new MSIM (Master of Science in Information Management) Executive Lecture Series. American businesses provided approximately 60 percent of TCS revenue in 2005. And Westerners will keep coming back for more, Kant says, because the Indian firms do it right, at a lower cost, to customer specifications.

Health Care Industry: Reform or Face Consumer Backlash 'Tsunami'

KnowWPCarey — Wed, 15 Feb 2006 10:42:35 EST

Salaries and wages are flat due to the increasing costs of medical insurance ... Some companies have done away with paying for health benefits altogether ... Soon health insurance as part of retirement plans may become just a memory. These are just some of the conditions in the medical world today leading to an inevitable revolution in the U.S. health-care industry, according to Dr. Jerome Grossman, director of the health-care delivery policy program at Harvard University's John F. Kennedy School of Government. Grossman discussed his ideas while visiting the W. P. Carey School as a featured speaker in the "Transforming American Healthcare" lecture series.

Part Two: Cities Peg Wi-Fi as Next Must-Have Amenity

KnowWPCarey — Wed, 15 Feb 2006 10:42:35 EST

"Just as parks have benches and trees, community wireless is a community benefit," according to a nonprofit Wi-Fi provider in New York City. "Wi-Fi has become an amenity that's almost a necessity for the business traveler," says one ASU professor. Another professor at the W. P. Carey School of Business believes broadband Internet access is analogous to electricity. Part Two of a series on the impact of municipal broadband access explores these and other viewpoints prompting U.S. cities to begin scrambling to provide public wireless Internet access. Experts in the Wi-Fi industry predict that in the next few years, hundreds of millions of dollars will be spent Wi-Fi projects as the U.S. attempts to catch up with 18 nations -- including Hong Kong, South Korea, Israel, Taiwan and the Netherlands -- that rank higher in overall household penetration of broadband Internet access.

Will Investors Seek Greener -- and Less Risky -- Pastures as Housing Market Cools?

KnowWPCarey — Wed, 15 Feb 2006 10:42:35 EST

The twin burdens of appreciation and increased mortgage rates finally seem to be making an impact on the red-hot housing market of the past few years. The National Association of Realtors reports that sales of existing homes dropped 3.1 percent nationally in December 2005 compared to December 2004. The explosion in real estate investment started when the stock market tanked, says Dawn McLaren, a research economist at the W. P. Carey School of Business. The trend may be reversing. "Money right now is in real estate. When the stock market starts to outweigh the gains in real estate, then there will be a flow of money going that way."

The Nation's Health-Care Supply Chain: A Holistic Perspective

KnowWPCarey — Wed, 15 Feb 2006 10:42:35 EST

If there is one area of discourse within supply chain dynamics that has been ignored or underplayed, it is the complexity of the health-care supply chain. This lack of evidence-based inquiry has hampered the field, which has lacked a comprehensive, research-substantiated offering. A new book, "Strategic Management of the Health Care Supply Chain," by Eugene Schneller, professor of health management and policy in the W. P. Carey School of Business, and the late Larry Smeltzer, begins to fill the gap. The authors define the key themes and issues in the health-care supply chain, offering solutions that acknowledge its burgeoning influence and its impact on the economy.

Should Business Support 'Grassroots Lobbying' by Employees?

KnowWPCarey — Wed, 01 Feb 2006 10:42:35 EST

It has long been the practice of business to employ lobbyists in an attempt to influence policy makers and regulators about such issues as environmental laws, trade policies and government spending programs. Amid the current media frenzy over the bribery scandal involving lobbyist Jack Abramoff, a researcher at the W. P. Carey School of Business discusses a new strategy for businesses: the cultivation of employee involvement in lobbying through education and solicitation of workers' feedback. Gerry Keim, associate dean of MBA programs, suggests that employers invest in educating employees about how the public policy process affects them. Employee-supported business lobbying promises to be more effective than traditional business lobbying, Keim says, and could bring about government policies that benefit more people all along the economic scale.

Immigration Issues 'Heating Up Quickly,' Says U.S. Treasurer

KnowWPCarey — Wed, 01 Feb 2006 10:42:35 EST

Addressing a mixed audience recently at the W. P. Carey School of Business, U.S. Treasurer Anna Escobedo Cabral breezed through an economic update before plunging into the controversial issue of illegal immigrant workers. As talk turned to Mexico, the nation's second-largest trade partner and homeland to an estimated 10 million-plus people living in the U.S. illegally, the U.S. Treasurer described a guest-worker program being proposed by the Bush administration. "If we eliminate all these people overnight from the economy, there will be chaos," she warned -- not to mention $10 tomatoes.

Tipping Point: Morality, Group Psychology Influence Gratuities

KnowWPCarey — Wed, 01 Feb 2006 10:42:35 EST

You probably didn't stop to consider that the $2 tip you left the waiter at lunch today involves a complex web of social psychology, personal morality and economics. In a study of the tipping behavior of individuals and groups, W. P. Carey School of Business economics professor William J. Boyes and his colleagues agree that tipping is "in essence, an implicit contract created between employer, employee and customer." But it's not just the quality of service that determines a customer's tipping behavior, Boyes says. Variables such as a group's size, type of event, even the sex of the customer are some of the factors at play.

Blazing Your Own Trail to an Extraordinary Career

KnowWPCarey — Wed, 01 Feb 2006 10:42:35 EST

"Nine out of 10 people are unfulfilled in their professional careers," according to former executive recruiter Richard A. Smith. But that means one in 10 are those who manage to find the way to unlock the potential in themselves and their organizations. They influence the world around them, have fun and make more money. In "The 5 Patterns of Extraordinary Careers," Smith counsels readers to calculate their market value the way a stock analyst evaluates a company. Then, he says, be ready to act when those rare, career-defining opportunities arise.

Ready or Not, New IT Paradigm Requires Knowledge Sharing -- Part 2

KnowWPCarey — Wed, 01 Feb 2006 10:42:35 EST

A paradigm shift has rocked the information technology world, changing the way companies acquire the technical capabilities to complete business processes. Service-oriented architecture (SOA) is changing the way IT professionals work together, challenging them to find ways to confidently share information across workgroups, departments or even corporate boundaries. For some companies, success in this new environment might mean organizational change. Part Two of Knowledge@W. P. Carey's series on changes in the IT industry examines new research about the ways firms can prepare to succeed in an SOA world.

Join the Club: Costco Founder Urges Business to Promote Higher Education for Low-Income Kids

KnowWPCarey — Wed, 01 Feb 2006 10:42:35 EST

"What is a guy selling mayonnaise in 50-gallon drums doing in education?" Robert Craves asked the audience during a recent presentation at the W. P. Carey School's Economic Club of Phoenix. One of seven founders of Costco Wholesale Corp., Craves helped create the company's successful club model. Now Craves is expanding the membership idea to his latest venture: ensuring that high-potential, low-income kids get a college education. Craves wants business leaders to help more people become members of that unofficial club -- to help kids from lower income families get their baccalaureate degrees, and thus a chance to become financially secure.

Consumer Backlash Stings in Response to Sneaky Sales Tactics

KnowWPCarey — Wed, 01 Feb 2006 10:42:35 EST

A company is unlikely to gain satisfied and loyal customers when they feel they've been duped. Companies that employ stealth marketing -- otherwise known as undercover or guerilla marketing -- hire shills to pitch products or services to potential but unsuspecting consumers. It may seem a clever idea on its surface, but research shows stealth marketing can be a risky tactic. Several W. P. Carey School of Business professors recently shared their opinions of stealth marketing, citing examples of campaigns that backfired, alienating rather than attracting potential customers.

At the End of the Day, Beneficiaries Pay: Changing Investment Management Firms Can Be Costly

KnowWPCarey — Wed, 01 Feb 2006 10:42:35 EST

When an employee underperforms, supervisors must decide whether to fire that person or wait to see whether performance improves. In the balance are the transition costs of finding a replacement and getting that person up to speed -- costs could be saved if the original employee improves. For the sponsor of a retirement plan, the decision to fire an investment management firm that is producing disappointing results also carries a cost, which ultimately impacts the its beneficiaries. Plan sponsors often chase what W. P. Carey School finance Professor Sunil Wahal calls "hot hands" -- investment managers who have recently turned in high numbers. But in a study that has attracted attention from both sponsors and managers, Wahal suggests that expecting a newly hired high flier to continue at top altitude may sometimes be expecting too much.

Risky Business: Winning the Entrepreneurial Race

KnowWPCarey — Tue, 31 Jan 2006 10:42:35 EST

What does it take to get a new venture up and running? Conventional wisdom suggests that the entrepreneurs should hit the pavement in high gear and then keep up the pace. Research shows, however, that speed alone is not a guarantee for success. A W. P. Carey School professor and entrepreneur has evidence that entrepreneurs need to allow enough time to make good decisions, to be creative, and to capitalize on serendipity. Executing tactical events through a slow and steady pace, rather than rushing to get to market first, gives entrepreneurs the experience and confidence necessary to make important strategic and visionary decisions that help them over the tipping point.

Classics: Recommended Reading for Students, Entrepreneurs, Executives

KnowWPCarey — Tue, 31 Jan 2006 10:42:35 EST

A classic is defined as something that has lasting significance or worth. Knowledge@W. P. Carey offers a selection of books that have passed the test for a group of W. P. Carey School of Business faculty. Most of these works would not be filed under "business," yet they examine strategy, organization, technology, service and other topics, albeit through a variety of lenses. The lessons and ideas within these books win them a place on the required reading list of any business person who values a broad and deep perspective -- in private life as well as at work.

Health-Care Industry Seeks 'Green' Alternatives to Curtail Its Substantial Waste Stream

KnowWPCarey — Tue, 31 Jan 2006 10:42:35 EST

The health-care industry is beginning to adopt the principles of sustainable procurement -- a "green" approach to purchasing which takes into account the efficient use of nonrenewable resources and the potential for recycling. Research Professor Helen Walker, an international expert visiting ASU from the University of Bath in the United Kingdom, recently focused attention on the trend during a speech sponsored by the W. P. Carey School's Health Sector Supply Chain Research Consortium. A number of the consortium's corporate members, including Premier, Novation and Amerinet, are actively involved in advancing sustainable purchasing.

W. P. Carey Faculty Share Favorite Books of 2005

KnowWPCarey — Tue, 31 Jan 2006 10:42:35 EST

With 2005 drawing to a close, Knowledge@W. P. Carey takes a look back at the year's crop of books. With so many titles to choose from it would be easy to miss the best. Here, a group of W. P. Carey School of Business professors offer their picks and in some cases, a comment on the book. Topics range from biography to leadership, ethics, technology infrastructure and more.

ERP May Fall Short of Evolving Business-Process Agility Goals

KnowWPCarey — Wed, 18 Jan 2006 10:42:35 EST

Business-process agility is top-of-mind for many business and technology executives these days. But just what is it? Why do companies need it? How do they get it? And what role does technology play? Once heralded as revolutionary, the bulky Enterprise Resource Planning (ERP) software packages that enabled companies to better manage internal functions are at the center of a debate over the best way to achieve agility. Whether firms retrofit their ERP systems or commit to the new on-demand model, it's certain that success in the global markets will be hooked to agility.

Guts and Glory: 'Airline' Offers Glimpse of Front-Line Action at Southwest Airlines

KnowWPCarey — Wed, 18 Jan 2006 10:42:35 EST

Since the founding of Southwest Airlines more than 34 years ago, iconic founder Herb Kelleher has demonstrated that success follows when a company focuses on what the customers really want. In the case of an airline, that would be getting passengers where they want to go, on time, for the lowest possible fare -- and having fun along the way. The strategy worked for Southwest because management has honed to the underlying principle that employees who are valued and trusted by the company will, in turn, treat customers with the same respect. Kelleher recently received the Global Services Leadership Award, presented annually by the W. P. Carey School's Center for Services Leadership. Here, he talks about the reality show "Airline," where Southwest's fabled customer service representatives demonstrate how the airline's philosophy plays out on the line.

Shareholder Activists Take Bold Steps to Manage Corporate Behavior

KnowWPCarey — Wed, 18 Jan 2006 10:42:35 EST

Shareholder activism is nothing new, but in the past two years it has surged and expanded into a continuum of responses to the way corporations perform. In his research, Stuart Gillan, a visiting assistant professor of finance at the W. P. Carey School of Business, writes that at one end of this burgeoning continuum are shareholders who register their reaction to a company's performance by simply buying or selling stock. At the other end are those who buy into a corporation through takeovers and institute changes in the way the company is operated. The amount and intensity of such activism comes in waves usually dictated by economic forces and the missteps of a corporation's management team. And right now, Gillan says, the wave is at a crest.

Silver Lining Scenario Prevails in 'Winning Smart After Losing Big'

KnowWPCarey — Wed, 18 Jan 2006 10:42:35 EST

They say everyone loves a winner, but it is the losers who fascinate us. The media serve up a rich buffet of details when public figures fall hard. But author Rob Stearns, a member of the W. P. Carey School's finance faculty, writes that every life includes loss; what's important is what you do next. His book, "Winning Smart After Losing Big," examines the never-pretty phenomenon of failure and the grueling process of getting back into the game. The message is universal, as shown by sales of the book in China, where "Winning Smart After Losing Big" went into a second printing this winter. Stearns recently delivered his message before a packed auditorium at the Guanghua School of Management at Peking University. "Losing is a normal part of being alive," says Stearns. "But, so is winning after losing."

Performance Management Leadership: 'Blocking and Tackling' of the CEO Playing Field

KnowWPCarey — Wed, 18 Jan 2006 10:42:35 EST

The study of "transformational leadership" has dominated leadership literature since the first wave of celebrity CEOs emerged into the limelight in the early 1990s. But Angelo Kinicki, a professor of management at the W. P. Carey School of Business, says it's time for researchers to look beyond charisma and transformational leadership as a focal point of study. Kinicki and two colleagues have set forth their analysis of a skill set called Performance Management Leadership. PML "encompasses broad and proactive leader behaviors that serve to motivate, direct, support, modify, assist, monitor and reinforce employees in pursuit of goal accomplishment." In football terms, Kinicki says, PML is the "blocking and tackling" of business leadership -- the hard work of getting the most out of your workers, every day.

New Kid on the Block: Will WiMax Bump WiFi in Municipal Coverage Plans? Part One

KnowWPCarey — Wed, 18 Jan 2006 10:42:35 EST

One day soon, mobile Internet users in Philadelphia, Denver, Boston and more than 300 wireless-networked cities across the nation won't need to find a coffee shop with WiFi access. They will simply open their laptops (or PDAs) and log on, wherever they are. But just as cities ramp up their plans to go wireless, WiMax – a brand new technology with the potential to leave WiFi in the dust -- looms on the horizon. Here, Knowledge@W. P. Carey presents the first part of a series of stories examining the business impact of wireless broadband access.

Despite Acts of God and Markets, U.S. Economic Growth Engine Churns On

KnowWPCarey — Thu, 22 Dec 2005 10:42:35 EST

As the U.S. economy struggled with uncertainty over the housing market, abrupt surges in gasoline prices and a pending change of leadership at the Federal Reserve, the nation's underbelly took a hard punch from Hurricane Katrina. But the economy managed to stay on its feet, and seems likely to continue to do so, according to Anthony Chan, managing director and senior economist with JPMorgan Asset Management in Columbus, Ohio. Chan was a guest speaker at the 42^nd Annual Economic Forecast Luncheon presented by Chase/Bank One and the W. P. Carey School of Business.

'Alpha Dogs': A Manual for Entrepreneurial Pack Leaders

KnowWPCarey — Thu, 22 Dec 2005 10:42:35 EST

To be successful, you needn't rack your brain in search of the new "new thing." In fact, you're more likely to hit it big by seizing on an everyday, even mundane product or service and delivering it to customers better than competitors, says Donna Fenn, contributing editor to Inc. magazine and author of "Alpha Dogs: How Your Small Business Can Become a Leader of the Pack." Fenn shared her guidelines for entrepreneurial success at the 16^th Annual Compete Through Service symposium, a conference for senior executives presented recently by the W. P. Carey School's Center for Services Leadership.

Teams Cozy Up to the Fans with CRM's 'Personalized Marketing' Strategy

KnowWPCarey — Thu, 22 Dec 2005 10:42:35 EST

Imagine a software strategy that allows an organization to combine the disparate data threads it collects about customers, then, using the Web and other technologies as well as non-technical methods, put the data to work to develop closer ties with customers. This is CRM, or Customer Relationship Management. With CRM, sports teams can cater specifically and efficiently to fans' needs and whims, react to trends, reward loyalty, fix problems, and retain its current clientele and attract more. A panel of sports executives discussed the state of CRM in their industry at the annual meeting of the Sport Marketing Association recently at the W. P. Carey School of Business.

Light Rail Project a Defining Moment for Many Small Businesses

KnowWPCarey — Thu, 22 Dec 2005 10:42:35 EST

The construction of Phoenix's first light rail transit line is delivering a punch to the businesses along its route. Valley Metro broke ground in March and expects to complete the 20-mile line by December 2008. Despite plenty of forewarning and the city's earnest efforts to mitigate the effects of construction, by its very nature the project still comes as a shock. Major infrastructure improvements create both challenges and opportunities for businesses -- if they have the fortitude, flexibility and luck to see it through, says Mary Lou Bessette, director of The Spirit of Enterprise Center at the W. P. Carey School of Business.

RFID Technology Gaining Popularity With Suppliers, Retailers

KnowWPCarey — Thu, 22 Dec 2005 10:42:35 EST

Companies in the tech and pharmaceutical industries are increasingly adopting Radio Frequency Identification to track products from their manufacturing plants through the supply chain. Taking the first steps toward savvy use of RFID serves to both satisfy mandates from major customers (such as Wal-Mart and the U.S. Department of Defense), and boost internal supply chain efficiencies. Though the technology itself is still fairly immature, it is quickly winning hearts and minds among retailers and suppliers, according to Mark Barratt, a supply chain management professor at the W. P. Carey School of Business.

Breathing New Life into Phoenix: a Downtown's Struggle to Rise

KnowWPCarey — Thu, 22 Dec 2005 10:42:35 EST

"What is the city but the people?" Shakespeare once wrote. Pondering the destiny of Arizona's largest urban center, Wellington Reiter expresses a similar view. In order to make Phoenix a dynamic downtown, says Reiter, dean of ASU's College of Design, its leaders must "start thinking about the people -- who breathe life into urban centers." Phoenix is a city built in reverse, Reiter told a gathering at the ASU Chase/Bank One Economic Forecast Luncheon. "Most cities would have been built up first, and later in their careers would figure out where to put the stadiums. We did it the other way around to try to convince ourselves, and others, that we were a grownup town."

Looking Ahead to 'Slower' Economy, Arizona Still Outpaces Nation

KnowWPCarey — Thu, 22 Dec 2005 10:42:35 EST

Arizona's economy will be slowing down a bit in 2006. But in Arizona, "slow" is a relative term. The state expects to see 97,000 new jobs created next year -- a growth rate of 3.9 percent, compared to 1.5 percent for the nation as a whole. The West in general and Arizona in particular are expecting a much stronger year than the rest of the nation. Still, as Arizona's economy has grown, so has its links to the national business cycle. "Two or three decades ago we had our own cycles," says Lee McPheters, associate dean and professor of economics at the W. P. Carey School of Business. "But now we definitely are a very diverse economy and we look like the national economy ... That is really the basis for why 2006 is not going to be as strong as 2005."

Saving the Children: Nearly a Third of Arizona's Child Fatalities Are Preventable

KnowWPCarey — Wed, 07 Dec 2005 10:42:35 EST

In 2004, Arizona reported the deaths of 1,048 children under 18. Nearly a third of them didn't have to die, according to the Arizona Department of Health Services' Child Fatality Review Team. In its 12^th annual report, the team it reviewed 98 percent, or 1,031, of last year's reported deaths, and found that 309 were preventable. "Every year we are struck by the number of deaths that are preventable," said Dr. Mary Rimsza, research professor at the W. P. Carey School's Center for Health Information and Research and chairman of the review team.

Play Ball: Sports Sponsorships Require an Evolving Marketing Plan

KnowWPCarey — Wed, 07 Dec 2005 10:42:35 EST

For major marketers, competing and winning in the sports arena means more than simply affiliating a product with the team that posts the most points or the athlete who stands out in the draft picks. Marketers like Coca-Cola have learned that when it comes to navigating the tide of sports, they can no longer assume that their brand and product will be a standout player. It's all about appealing to sports fans as consumers, and adapting to their changing demands. John Cordova, director of sports transaction management at Coca-Cola, knows that scoring points and continuing to hold a lead among soft-drink consumers at sports venues requires an evolving marketing playbook.

Suns CEO Pays Tribute to a Sports Marketing Mastermind

KnowWPCarey — Wed, 07 Dec 2005 10:42:35 EST

It's hard to believe that the NBA could ever have been described as a marginalized sport, but that's exactly how Rick Welts, president and chief operating officer of the Phoenix Suns, describes the league during its early days. In his address before the Sport Marketing Association recently at the W. P. Carey School of Business, Welts paid tribute to Bill Veeck, one of the early the marketing masterminds in baseball. Veeck was an inspiration for the new face and profitable stamp on professional basketball and the arenas where the games are played. Owner of the Chicago White Sox, St. Louis Browns and Cleveland Indians, Veeck stunned the sport with his stunts and promotions designed to get fans into stadium seats, and just as important, to enjoy the game.

Voters Assess Priorities and Kill Spending Limits, Anti-Tax Initiatives

KnowWPCarey — Wed, 07 Dec 2005 10:42:35 EST

Voters nationwide said "thanks, but no thanks' to tax-cut initiatives and government-spending limits in the Nov. 8 elections. Although their choices turned the tide of anti-tax politics for now, relentless forces will keep the tide surging in and out, according to experts at the W. P. Carey School of Business. While nobody welcomes a tax increase with open arms, voters are more inclined to accept taxes that are tied to broadly agreed-upon goals. "The general aversion to taxes would be considerably reduced if tax dollars are put to good use -- such as building, maintaining and supporting infrastructure that can provide the spring board for greater and sustained growth," says Sanjay Gupta of the W. P. Carey School.

Workplace Relationships Set the Tone for Job Performance

KnowWPCarey — Wed, 07 Dec 2005 10:42:35 EST

Your workplace relationships with co-workers as well as bosses have a huge impact on how you view the organization, and whether you perceive your work as being worthwhile. That perception has a direct bearing on your attitude and how you perform, according to a new study co-authored by a management professor at the W. P. Carey School of Business. The traditional "top-down" organizational culture tells only part of the story; it's often the person occupying the next cubicle that shapes who you are at work, the study found.

DuPont Economists share Klein Award for Accurate Forecasts

KnowWPCarey — Wed, 07 Dec 2005 10:42:35 EST

Two of the nation's top economic forecasters, Robert C. Fry and Robert Shrouds of the DuPont Corp., received the 2005 Lawrence R. Klein Award for Blue Chip Forecast Accuracy recently at a ceremony in New York City hosted by the W. P. Carey School of Business. The award, named after economist Lawrence R. Klein -– credited with creating modern economic forecasting –- recognizes accuracy and consistency in forecasting. Shrouds and Fry beat out some 50 competitors by achieving the smallest error between forecast and actual values in four key indicators -- gross domestic product (GDP), consumer price index (CPI), unemployment, and the Treasury bill rate –- over the four-year period of 2001 to 2004.

Dubious Protection: New Medicare Drug Coverage Could Erode Retiree Perks

KnowWPCarey — Wed, 07 Dec 2005 10:42:35 EST

If Congress gives it, will employers take it away? That was a question lawmakers considered when debating prescription drug coverage as a new Medicare add-on. In fact, the Medicare Modernization Act of 2003 provides $71 billion over the next 10 years to reward and repay employers who keep "qualified" retiree drug coverage in place. This year, it looks like most employers will take the bait and enjoy the cash subsidy. But what about next year? The shrinking prevalence of employer-sponsored health insurance is a longstanding trend, and many foresee further erosion to retiree benefits ahead.

Real Estate Market Looks Ahead to a Soft Landing, Not a Nosedive

KnowWPCarey — Wed, 23 Nov 2005 10:42:35 EST

No market can sustain the staggering 46 percent appreciation over a year -- the rate experienced in the Greater Phoenix area, according to real estate analysts. While the Chicken Littles have been warning about the worst-case scenario -- a disastrous real estate "bust," it's very unlikely to happen, according to economists throughout the nation. Instead, they envision a soft landing, and the eventual return to a more normal, balanced market. Some areas, notably in the West, continue to see strong growth in home sales, but the month-to-month comparisons are beginning to show a slowing trend.

The Hidden Costs of Dishonesty: Ethics is Vital to Business Education

KnowWPCarey — Wed, 23 Nov 2005 10:42:35 EST

The hidden costs of dishonesty can fundamentally derail organizations, creating an imperative for business leaders to have clear and meaningful codes of conduct, according to a W. P. Carey School of Business researcher. A recent survey shows both encouraging and troubling trends: 22 percent of respondents believe one has to "bend the rules" or act unethically to get ahead... and that's the good news. The bad news? More than 40 percent said they would act unethically if directed by their boss.

New IT Paradigm: Software Evolves From Product to Service

KnowWPCarey — Wed, 23 Nov 2005 10:42:35 EST

A sea change is reshaping the information services/information technology (IS/IT) industry. Managers accustomed to creating value and solving problems for their companies by writing code or purchasing and implementing software packages are now focused on managing services in a dynamic Web environment. A research team at the W. P. Carey School of Business is proposing a new orientation for IS/IT managers, one that applies the principles of supply chain management.

"Before You Quit Your Job": Inspiration for Would-be Entrepreneurs

KnowWPCarey — Wed, 23 Nov 2005 10:42:35 EST

In 2004, approximately 580,900 new businesses were launched, according to the Small Business Administration. Another 576,200 closed for a variety of reasons ranging from closure to sale for profit, mergers, acquisitions and retirement. With that much action in the marketplace, Robert T. Kiyosaki and co-author Sharon L. Lechter should find plenty of readers for their entrepreneurship message. Their book, "Before You Quit Your Job," is meant to inspire novice and experienced entrepreneurs alike, offering "10 Real Life Lessons Every Entrepreneur Should Know About Building a Multimillion-Dollar Business."

Gainsharing in Health Care: Cost-Saving Kick Start...or Kickback?

KnowWPCarey — Wed, 23 Nov 2005 10:42:35 EST

As the price of health care continues to rise, hospitals around the country have turned to a 70-year-old economic model -- gainsharing -- to try to bring down costs. In its simplest form, gainsharing involves monetary rewards for workers' innovative cost-cutting ideas. Over the years, gainsharing has evolved into many forms and in many industries, eventually making its way into health care where it is generating controversy today. The health-care field brings its unique issues to the table: Not only are there difficulties in measuring the financial aspects of outcomes, there are ethical issues involved. But, some researchers note, as gainsharing models evolve in health care, they may prove beneficial for patients as well as physicians and hospitals.

Bloggers Beware: Corporate Image Can Soar or Plummet in Blogosphere

KnowWPCarey — Wed, 23 Nov 2005 10:42:35 EST

In a recent survey, 43 percent of marketing executives cited "customer influence by word-of-mouth" advertising as a technique they planned to use in the next six months. Blogs are likely to be tapped in that effort, since 22 percent of those surveyed indicated plans to showcase their company and offerings in the blogosphere. But this medium is not without risks, and even big kids in the marketing sandbox can make detrimental blog blunders. "If you think about ways people can learn about a product, almost all are marketer-controlled," according to James Ward, a marketing professor at the W. P. Carey School of Business. Ward cautions that the "private talk" found in blogs is perceived to be credible, and "when that trust is undermined [by marketing ploys], consumers feel a sense of moral outage."

Winter of Discontent: Will Fuel Prices, War Worries Affect Holiday Retail Sales?

KnowWPCarey — Wed, 23 Nov 2005 10:42:35 EST

Internet retailers and big-box stores are bracing for the seasonal shopping boom. Consumers are finding a dizzying array of choices among ever-increasing promotional hype and ever-lengthening holiday retail season. But this year, retailers have a challenge to meet: The holiday spirits of many consumers are dampened by spiraling energy prices, economic uncertainty, a storm-battered homeland and the war in Iraq. An economist at the W. P. Carey School says heating prices may have the greatest effect on consumer spending. "If the winter is mild, the impact will be mild. If the winter is normal, the impact will be noticeable but survivable. If the winter is cold, the impact on retailers -- particularly in colder parts of the country -- could be really significant."

Big Changes May Mean Big Turnover Amid Service Transition

KnowWPCarey — Wed, 23 Nov 2005 10:42:35 EST

Expect to lose a big chunk of your staff once you dive into the cultural-change process, warn executives of companies that have made the leap successfully. For example, during United Airlines' reorganization and overhaul of airport services, many supervisors accustomed to the old ways of doing business were unsettled. Some initially fought the changes, eventually deciding to come onboard. Others, unable to make the leap, quit. Services-savvy PetSmart opened its own dog grooming school when it decided to provide the service in its stores but lacked the skilled manpower. IBM Global Services lost customer service reps who were unwilling or unable to cross-train in hardware/software. The cultural transition can be a rough and painful journey, the experts agree -- but in the end it's worth it.

The Transformation of IBM: Rebooting from the Ground Up

KnowWPCarey — Wed, 23 Nov 2005 10:42:35 EST

Service technicians once were at the helm of IBM's support process; one group handled a client's hardware service while another fixed software bugs. Those were the dark days of the '90s, when IBM itself was on the verge of bankruptcy, and the warranty and service departments were part of the train wreck. Today, service is a smoothly integrated part of the product life cycle, literally built in during manufacturing, automated to the point of "self-healing" and finessed by highly trained techs. It's an example of how service innovation can help transform an organization, according to a spokesman for today's streamlined IBM Global Services.

PetSmart's Bare-Bones Epiphany Ushers in Services for 'Pet Parents'

KnowWPCarey — Wed, 23 Nov 2005 10:42:35 EST

PetSmart's 15,000 employees, from executives to dog groomers, refer to customers as "pet parents." The practice is grounded in the company's belief that Americans treat their pets like furry family members -- enough to spend almost $36 million on pet supplies and services this year. The key to success in this market, PetSmart has found, lies in services, which account for 20 percent of its growth annually. With clinics for grooming and training, as well as the PetsHotel and Doggie Day Camp, PetSmart truly understands pet owners. Just ask store employees, who enjoy an unusual perk: they can bring their own pets to work.

Out of Chapter 11, Into Friendlier Skies: A Sleeker United Upgrades Customer Service

KnowWPCarey — Wed, 23 Nov 2005 10:42:35 EST

The United Airlines scheduled to emerge from bankruptcy court early next year is a battle-scarred, stripped-down survivor, operationally superior to the company that nosedived into Chapter 11 three years ago. United's fleet is streamlined, now flying just five types of planes, the work force whittled, union contracts renegotiated and the legacy pension plan terminated. The process was excruciating, according to Larry De Shon, United's senior vice president of airport operations. "It got ugly. But I had to focus and stay focused. Now, after three years in bankruptcy court, United is fundamentally stronger."

Customer Rage: It's Not Always About the Money

KnowWPCarey — Wed, 23 Nov 2005 10:42:35 EST

Seventy percent of American consumers report having a bad customer-service experience that left them "upset" or "extremely upset" in the last 12 months, according to a new national survey. And that should ring alarm bells for service providers across the nation, because it's estimated that the angriest consumers negatively influence about 18 others. Contrary to most companies' assumptions, it's not a refund that most customers are after. "Most people want simple or non-monetary remedies to resolve their problems and complaints, which overturns one of the universal truths companies use to guide their policy-making," notes one researcher.

Top-Performing Investment in Your Portfolio: a College Education

KnowWPCarey — Wed, 09 Nov 2005 10:42:35 EST

Over the course of a lifetime, college-educated people will enjoy a higher level of prosperity, more job opportunities, and a better quality community than their non-college peers. They also tend to make wiser choices about marriage, reproduction, civic participation, careers and purchases, and as parents, they are more likely to pass on a respect for the value of education to their children. The "spillover effects" of college-educated workers include better wages, productivity, fringe benefits and working conditions for all workers in a given region. These were among the findings of a study undertaken by the L. William Seidman Research Institute at the W. P. Carey School of Business. The bottom line, according to co-author Dennis Hoffman: "Earning a college degree, simply, yields incredible returns."

New Mindset: Evolving from a Product to a Services Provider

KnowWPCarey — Wed, 09 Nov 2005 10:42:35 EST

In terms of strategic vision, the role of services is growing swiftly and surely among American businesses, according to researchers. This often requires an attitude change in which everyone from senior management to the rank and file must view themselves as service suppliers rather than product providers. Communications must become a top priority, because service companies thrive only when information flows freely between provider and customer, as well as within the service provider itself. These and other critical issues were discussed by academics and industry leaders at the 14^th Annual Frontiers in Services conference hosted recently by the Center for Services Leadership at the W. P. Carey School of Business.

Details, Details: Small Survey Errors May Produce Fallacies in Research Results

KnowWPCarey — Wed, 09 Nov 2005 10:42:35 EST

Businesses rely on research to gather data and process it into the knowledge needed to identify markets and satisfy customers. When exploring questions about attitudes, beliefs and other intangibles, researchers use Structural Equation Modeling (SEM) to analyze data. A W. P. Carey School of Business marketing professor and her co-authors have discovered that a significant percentage of academic researchers used the wrong measurement approach in their studies, resulting in deceptive conclusions. If the researchers performing studies for businesses follow the pattern, companies may be making critical business decisions based on misleading research findings.

Friedman's 'Flat' World View Resonates with Readers

KnowWPCarey — Wed, 09 Nov 2005 10:42:35 EST

Thomas Friedman's "The World Is Flat: A Brief History of the Twenty-First Century" has captured the attention of people from every walk of life –- people who are trying to make sense of the rapidly changing business and political environment. Friedman's book, which has been on the New York Times bestseller list for 28 weeks, attempts to explain global trends will shape the future for today's generation of college graduates. Knowledge@W. P. Carey asked a group of experts to share their impressions of the author's take on the "flattening" of our world.

In the NFL, Winners and Losers Benefit from Savvy Marketing

KnowWPCarey — Wed, 09 Nov 2005 10:42:35 EST

What is a strong team brand worth? In the National Football League, it can be staggering. Forbes magazine reports three franchises topped the billion-dollar mark, while three others were above $900 million with the league average at $819 million. While some revenue streams are shared equally among the NFL teams, others -- local media rights, parking and concessions, stadium naming rights, local sponsorships and advertising –- are not. And here is where the magic of marketing enters the picture. The Seattle Seahawks, which enjoys significant marketing advantage as the only NFL team in the northwest, is looking to develop fan "avidity" among the strategies it is using to build up its brand.

The New Blue Light Specials: Flu Shots, Strep Tests, Sutures

KnowWPCarey — Wed, 09 Nov 2005 10:42:35 EST

In recent years grocery stores and discount retailers have been leasing space to banks, pharmacies, beauty parlors and even optometrists in an effort to increase foot traffic and sales. The latest twist on the trend brings health-care clinics to the places where people shop. Drug store chains and discount retailers like Target and Wal-Mart have joined forces with health-care companies to open in-store medical clinics operated by nurse practitioners or physician's assistants. The concept is not without its critics, but proponents say it can be a boon to people with minor health-care issues and no insurance, who otherwise might end up in the local hospital's emergency room.

'Deviant Management' Can Turn a Losing Company into a Winner

KnowWPCarey — Wed, 09 Nov 2005 10:42:35 EST

In 1997, Yellow Transportation landed in Fortune magazine's least-admired companies list. "We were a $2.5 billion company," says Greg Reid, senior vice president. "But we kept operating the same old way. Also we were losing money –- huge, huge siphons of money." Desperate to yank Yellow from its rut, executives spent a year visiting customers, shadowing employees and talking, talking, talking. The solution? The company embraced "deviant leadership," a management style that encourages "thinking outside of the box, or saying there never was a box." By 2003, Yellow snagged the number-one spot in its industry on Fortune's most-admired companies list, and remained there in the 2004 and 2005 lists.

Consumer Outcry Uncorks Opportunities for Small Wineries

KnowWPCarey — Wed, 26 Oct 2005 10:42:35 EST

The Supreme Court ruled in May that Michigan's ban on direct shipment of wine to consumers was inequitable because it applied the ban only to wine shipments from out-of-state wineries. The ruling was hailed as a victory for small wineries as well as consumers, who had been pushing for legislative direct-shipping relief for years. However, not everyone in the wine industry greeted the High Court ruling with cheers. While the small wineries tend to favor direct-to consumer shipping, wholesalers who distribute wines continue to raise objections.

'Services Science': The Next Big Thing in Business Schools?

KnowWPCarey — Wed, 26 Oct 2005 10:42:35 EST

Progressive American universities will need to create a new academic discipline, services sciences, management and engineering, to provide the necessary high-value, services-centric graduates of the future. "The world is becoming a services system," explains Jim Spohrer, director of IBM's Almaden Services Research. Spohrer spoke recently at a symposium sponsored by the W. P. Carey School of Business's Center for Services Leadership. To meet the needs of today's economy, Spohrer said, universities will need to adapt, bridging the academic and business silos to develop the knowledgeable services work force of the future.

Roles, Not Tasks, May Be Key to Workplace Performance Measurement

KnowWPCarey — Wed, 26 Oct 2005 10:42:35 EST

At the most basic level, the performance of individuals allows organizations to realize their strategic goals. But what is performance? A W. P. Carey School of Business management professor says that the way organizations define, think about and measure performance profoundly impacts the effectiveness of its people. For many years performance was conceived simply as the ability to accomplish a list of tasks. Organizations whose mission requires a dynamic environment are finding that they need a new way of thinking about performance in order to succeed. For those firms, task-oriented standards are giving way to a model of performance based on roles or values.

Executive Role Models Crucial in Building Ethical Workplace Culture

KnowWPCarey — Wed, 26 Oct 2005 10:42:35 EST

Building an ethical culture has become increasingly important for boards and CEOs, but the task is not as simple as instituting policies and procedures. Employees are looking for consistent role models, according to a researcher at the W. P. Carey School of Business. Setting high standards means companies must take a good, hard look at their leadership and view it in all settings. They must recognize that executive behavior off the job can affect the firm in a variety of ways.

Psychiatrists in Short Supply Throughout Western States

KnowWPCarey — Wed, 26 Oct 2005 10:42:35 EST

A study from the new Center for Health Information and Research details a shortage of psychiatrists across the nation that is particularly severe in Western states. Anchoring the bottom of a list that ranks states by number of psychiatrists per 100,000 population are Idaho, Wyoming, South Dakota, North Dakota, and Alaska. In Arizona, the shortage leaves some counties with no psychiatrists at all. The situation is particularly acute in the pediatric specialties. As a result, pediatricians and primary care physicians are acquiring additional training in mental health services, and in some cases are assisting psychiatrists to shoulder the caseload.

Tomorrowland is Here, Thanks to Digitization of Services

KnowWPCarey — Wed, 26 Oct 2005 10:42:35 EST

Digitization is fast becoming ubiquitous, widening the horizon for businesses to expand their service products. Gary Bridge, senior vice-president of Cisco Systems' Internet division, took an audience of researchers and business leaders from 28 countries on a high-speed tour of these new opportunities at the 14^th Annual Frontiers In Services conference, co-hosted by the W. P. Carey School's Center for Services Leadership and the Center for Excellence in Service at the Robert H. Smith School of Business, University of Maryland. From digitally enhanced product marketing to remote service delivery to tele-robotic remote surgery, companies are using digitization to grow services revenues.

'Know Thyself' is the First Step to Successful Knowledge Management

KnowWPCarey — Wed, 26 Oct 2005 10:42:35 EST

Knowledge Management (KM) systems have provided companies with a tool that allows them to collect and provide access to the collective expertise of their employees. The appeal is obvious: Sharing experiences and lessons leads to efficiency and innovation. But KM is not a system where "if you build it they will come." Some companies have reported impressive returns, but others have declared KM a disappointing underperformer. The key, according to an information systems professor at the W. P. Carey School of Business, is a holistic management approach that takes into consideration corporate culture and climate.

Self-Service Technologies Should Benefit Customers, Not Just Bottom Lines

KnowWPCarey — Wed, 12 Oct 2005 10:42:35 EST

Companies like to implement self-service technologies because of the potential cost savings and the appeal of the cutting-edge. But a surprising number of managers fail to implement their own SSTs effectively, according to a study by several professors of marketing at the W. P. Carey School of Business. "The companies that plan their strategies well, and the ones that integrate their customers into the equation, are the ones that will succeed," says Mary Jo Bitner, director of the school's Center for Services Leadership.

Mass Customization Satisfies Consumer Demand for Low Cost and Variety

KnowWPCarey — Wed, 12 Oct 2005 10:42:35 EST

The marketplace has come a long way since Henry Ford's all-black Model T, mass produced at a price "everyman" could afford. Today's consumers want products designed the way they like, at the right price and with quick availability. For those products, mass customization is the solution, according to a professor of supply chain management at the W. P. Carey School of Business. Manus Rungtusanatham says companies can provide customers with the choices they desire by paying attention to the number and complexities of the variables, then devising their supply chains and assembly lines to meet demand.

Study Links Entrepreneurial Success with Higher Education

KnowWPCarey — Wed, 12 Oct 2005 10:42:35 EST

There is a significant correlation between higher education and small-business success, according to a recent study by Behavior Research Center of Phoenix conducted in partnership with the Spirit of Enterprise Center at the W. P. Carey School of Business. According to the poll, 75 percent of the owners have a university degree or degrees from business colleges and community colleges. Among firms that are "healthy and growing," 52 percent are guided by university graduates, a third of whom have MBAs. "In the knowledge economy, everyone is going to have to be a lifetime learner," says one W. P. Carey expert involved in the study.

More Focused Competitors May Be Albertsons' Undoing

KnowWPCarey — Wed, 12 Oct 2005 10:42:35 EST

Albertsons, with its approximately 2,500 grocery stores in 37 states, is reeling from competition brought on by Wal-Mart with its sharply reduced prices. In September, the troubled grocer hired Goldman Sachs & Co. and Blackstone Group LP to look at its options -- including selling. Other grocery chains, however, are faced with the same formidable competition -- and yet they are managing to survive and thrive. Why isn't Albertsons absorbing the Wal-Mart punch like the others? Experts at the W. P. Carey School of Business take a look at an industry fraught with cut-throat competition and razor-thin profit margins.

Our Bodies, Our Buying Behavior: Should Real Ads Have Curves?

KnowWPCarey — Wed, 12 Oct 2005 10:42:35 EST

The "Dove girls" advertising campaign has caught the attention of media consumers, and no wonder. In a world where the marketing of thin and flawless Victoria's Secret "Angels" dominate the prime-time landscape, suddenly there is a top-tier national campaign featuring curvy, real-world women parading proudly across the pages of People magazine in plain white underwear. But can the Dove girls' obviously healthy body image -- refreshing though it may be -- actually boost women's self-esteem, not to mention product sales? Marketing professors from the W. P. Carey School of Business say the research isn't conclusive.

Experts Set Forth Options for the Shape of New Orleans to Come

KnowWPCarey — Wed, 12 Oct 2005 10:42:35 EST

Potential rides high in the city of New Orleans these days–- potential to build a hurricane-hardened infrastructure, to relocate residential areas to higher ground and to commit to preserving a unique multicultural heritage. In Part Two of a series on the future of New Orleans, a cross-disciplinary cadre of experts at Arizona University says this post-Katrina interlude is an opportunity for higher-level thought and planning. They envision a new and dynamic city that will serve as a model of intelligent and sustainable design. This is also a chance to address those issues which one social scientist described as "responsible for the inequities revealed by Katrina, ranging from substandard housing to inadequate education to the lack of decent job prospects."

Hurricanes' One-Two Punch Won't Knock Out Western Economies

KnowWPCarey — Wed, 12 Oct 2005 10:42:35 EST

Local economies in the Gulf region have taken a major blow from hurricanes Katrina and Rita, but the long-term impact of these major storms will be minimal throughout the United States as a whole, according to many economists. Western states' economies in particular, with healthy growth in employment, income and population, will continue to thrive. However, there is a dark cloud looming over the nation, according to Western economic experts. The threat of rising energy prices and in turn, prices of goods and services, is a potential drag on consumer confidence. The consequences are far-reaching -- and likely to impact everything from grocery prices to tourism.

Katrina's Heavy Blow Reveals Health Care Frailties

KnowWPCarey — Wed, 28 Sep 2005 10:42:35 EST

Without the experience of a war on its shores, the United States has not developed a plan to provide health care to large numbers of people at once. Even the terrorist attacks of Sept. 11, 2001, did not result in this kind of planning. Exacerbating the situation, decades of cost-cutting and tight reimbursements have left the health-care system in the United States with almost no excess capacity. In the aftermath of wind and water, Louisiana and the Gulf Coast must determine how best to care for its sick with greatly reduced facilities. W. P. Carey School experts comment on the challenges and opportunities ahead.

Ports in a Storm: Katrina Tests Resilience of Nation's Supply Chain

KnowWPCarey — Wed, 28 Sep 2005 10:42:35 EST

Is the on-demand, just-in-time environment of today's global supply chain particularly vulnerable to catastrophic events such as the one visited on the Gulf Coast by Hurricane Katrina? Will skyrocketing energy costs and shipping disruptions drown economic growth in the near future? Or will contingency planning and high-tech supply chain management solutions prove crucial to mitigating the effects of Katrina and returning us quickly to business as usual? Professors of supply chain management at the W. P. Carey School of Business comment on the various post-disaster scenarios likely for the region and the nation in the weeks to come.

All in the Family: After Employee Pricing Strategy, What Next?

KnowWPCarey — Wed, 28 Sep 2005 10:42:35 EST

The auto industry's ubiquitous employee discount plans dominated summer advertising, but after two extensions, all three will end soon. Begun by General Motors in June and copied by Ford and Chrysler in July, the promotion spurred record sales and depleted 2005 stock, but may have been a short-term fix for struggling U.S automakers. A W. P. Carey marketing professor says the promotion served as a valuable learning tool, and the lessons learned about consumer preferences will help the Big Three forge ahead with new ideas for increasing sales in the months to come.

K@WPC Readers Weigh In With Their Thoughts on Gulf Coast Disaster

KnowWPCarey — Wed, 28 Sep 2005 10:42:35 EST

In our last newsletter we invited Knowledge@W. P. Carey readers to share their questions about what might be ahead for New Orleans and the region. Some of this week's stories address the issues raised in those letters –- if not answering the questions, at least expanding and deepening them. A sampling of readers' questions and thoughts follow.

"Reinventing the Bazaar" Probes the Good, the Bad and the Ugly of Markets

KnowWPCarey — Wed, 28 Sep 2005 10:42:35 EST

Competition can be liberating, says John McMillan, a Stanford economics professor and author of "Reinventing the Bazaar: A Natural History of Markets." McMillan pinpoints two seminal events that drastically changed the free-market economy: the reunification of Germany in 1989 and the privatization of the Internet in 1995. Both created prolific opportunities that, in turn, affected –- and continue to influence -- every type of economic player, from the self-employed handyman to corporate behemoths.

Who's On First? Decision-Making in the Midst of Disaster

KnowWPCarey — Wed, 28 Sep 2005 10:42:35 EST

Experts say the Hurricane Katrina recovery effort arguably represents one of the great natural disaster recovery and redevelopment challenges in U.S. history -- perhaps exceeding even the Dust Bowl of the 1930s and the San Francisco earthquake of 1906. But before the work can begin in earnest, the stakeholders in New Orleans must decide what to do –- and this first step may turn out to be as difficult as the renaissance itself. Two professors from the W. P. Carey School of Business have made a study of the science of individual and group decision-making, and they offer their thoughts on the overwhelming task that lies ahead.

The Saving of New Orleans: Demolition, Preservation, Reincarnation?

KnowWPCarey — Wed, 28 Sep 2005 10:42:35 EST

Part One: While it seems inevitable that one day thousands of former New Orleans residents will return home, it's equally likely that the city will not so much be rebuilt as reincarnated -- and that the effort will prove successful only with radically new approaches to land use and a strict adherence to high standards of planning and accountability. Even with new and improved levee systems, pumping facilities and flood-control strategies, experts say it may be time to abandon the lowest-lying areas. In the first of a two-part discussion of whether and how to begin rebuilding the city, experts from the ASU community and the W. P. Carey School of Business weigh in with their opinions.

'Modern-Day James Bond' Shares Tips for Thwarting Corporate Spies

KnowWPCarey — Wed, 28 Sep 2005 10:42:35 EST

Most crooks aren't all that smart and spies are no exception, according to former National Security Agency analyst Ira Winkler. Getting confidential financial and technical information right from the source is simpler than you'd think. Most hackers and spies don't have special aptitude for intelligence theft. What they do have is (a) some sort of training and (b) the willingness to perform as trained over and over again -- what Winkler calls "the repeatable process required for expertise." Understanding this basic formula is key to protecting computer security systems, the expert told his audience during a recent security symposium at Arizona State University.

Spy vs. Spy: FBI Seeks Sleuthing Partners in Homeland Security Mission

KnowWPCarey — Wed, 28 Sep 2005 10:42:35 EST

InfraGard is an association of businesses, schools, state and local law enforcement and private individuals dedicated to sharing information and intelligence "to prevent hostile acts against the United States." The FBI partner organization consists of a national network of 84 local chapters whose members are unpaid volunteers. Founders initially courted IT managers at large companies, figuring they could assist the government in fighting cyber-crime while protecting their own corporate interests. However, since the 9/11 attacks four years ago, they're increasingly recruiting professionals with non-IT backgrounds to join.

Is Centralized Identity Management the Solution to Cyber-Security Issues?

KnowWPCarey — Wed, 28 Sep 2005 10:42:35 EST

Passwords are "the dirty little secret" of the computer-security industry, says Arvind Krishna, a software security expert. The use –- and misuse – of passwords illuminates a cyber-security conundrum: is it about the user, or the data? Industry experts like Krishna study the plethora of security screw-ups for clues. Krishna favors centralizing identity management –- he mentions passports as a real-world example -– but much work and deep thinking must be done before such a concept can become workable in the cyber-security world.

IT Systems Security Requires Vigilance at All Levels

KnowWPCarey — Wed, 28 Sep 2005 10:42:35 EST

The average hacker used to be a cyberspace vandal whose prime motivation was mischief and developing a reputation as an IT wizard. Over the past year, however, hackers have increasingly used their skills to break into inadequately guarded systems to steal money and valuable data. And companies are now exposed on more fronts than ever. Firms that take IT governance seriously are 20 percent more profitable, according to Rob Clyde, chief technology officer of computer security vendor Symantec Corp. The CTO should be in on every top-level decision, he advised, and IT security should be the responsibility of every unit in the organization.

Taxing Only Corporate Sales: Boon or Boondoggle for State Economies?

KnowWPCarey — Wed, 14 Sep 2005 10:42:35 EST

When Intel named Chandler, Ariz., as the site of its next U.S. fabricating plant, politicians touted the announcement as validation that changing the state's corporate income tax formula had been a wise move. Arizona is among several states changing its tax formulae to boost economic development. But do such moves bring states the business upswing they seek? In fact, research suggests states may give up more than they gain when they tinker with tax formularies to encourage corporate investment. In the Intel case, a corporate executive also cited Arizona's strong research universities, its commitment to develop a deeper infrastructure in science and technology, and its support of educational improvements as playing a role in the decision to locate there.

Buy vs. Build: Chinese Firms Seeking Familiar Brands in Global Strategy

KnowWPCarey — Wed, 14 Sep 2005 10:42:35 EST

When growing companies consider entering a new market, is it better to buy or build your own brand? Last year, the Chinese manufacturer TCL acquired the television operations of Thomson SA, a multinational electronics manufacturer based in France that owns the RCA brand. In December, Beijing-based Lenovo completed the purchase of IBM's personal computer business, acquiring among other things the ThinkPad brand. These acquisition moves represent a strategy on the part of Chinese companies to ease their entry into Western markets by hitching a ride on well-known American names.

Selling Services: A Brave New World

KnowWPCarey — Wed, 14 Sep 2005 10:42:35 EST

Selling and providing services is not what it used to be. Thanks to an ultra-competitive B2B services market and an increase in the number of companies contracting core functions to outsourced providers, purchasing departments have reinvented their services buying process. For salespeople, that means learning a whole new approach. In the end, sealing the deal for service providers today is less about savvy salesmanship and a product packed with bells and whistles, and more about demonstrating the ability to understand customer needs and correctly align the sales process with the purchasing process.

Creative Financing Could Hurt Borrowers When Housing Market Cools

KnowWPCarey — Wed, 14 Sep 2005 10:42:35 EST

Almost anyone can buy a home these days, thanks to specialty mortgages that lower the financial threshold for admission into the hot real estate market. But amid the storm of marketing and media play, one topic that isn't getting much notice is the potential economic impact of this type of lending when new homeowners find themselves paying the price for using creative financing. Experts at the W. P. Carey School of Business discuss what lies down the road for these homeowners when the real estate market begins its inevitable adjustment and begins to cool off. For many, it comes down to a gamble on the continuing health of the U.S. economy.

Will Merger Lift US Airways Above Beleaguered Airline Industry?

KnowWPCarey — Wed, 14 Sep 2005 10:42:35 EST

It's been a smooth ride so far for the pending US Airways-America West merger. Some analysts believe the deal – shareholders will vote Sept. 13 on the proposed merger – and the low-cost style of airline that would emerge, is a flight plan for survival for an industry that remains in a struggle for profitability. Others are not so optimistic. Regardless of the outcome, it's the nimble newcomers that are succeeding in a field once dominated by the industry giants. With their lumbering, old-fashioned business models, large airlines are "locked in a death spiral of competition," in the words of one observer.

Whither 'Internet Anarchy?' Controlling Adult Content Online

KnowWPCarey — Wed, 14 Sep 2005 10:42:35 EST

The Internet Corporation for Assigned Names and Numbers (ICANN) -- the organization that determines who gets what domain name on the World Wide Web -- recently delayed decision on a proposed .xxx string that would identify content produced by the "responsible online adult-entertainment community." Part of the intent of .xxx is to label this material so that those who do not want to view adult content are less likely to encounter it accidentally. But an information systems professor at the W. P. Carey School of Business questions the effectiveness of .xxx, and suggests that the Internet faces a much deeper problem –- its lack of ownership –- making many issues, including the management of adult content, difficult to resolve.

Insurers, Government Struggle to Manage Risk of Terrorist Acts

KnowWPCarey — Wed, 14 Sep 2005 10:42:35 EST

In the aftermath of the terrorist attacks of Sept. 11, 2001, insurance coverage for commercial property and casualty loss in the event of terrorism became hard to find and prohibitive to purchase. Congress responded in November 2002, enacting the Terrorism Risk Insurance Act. TRIA temporarily put the federal government in the property and casualty risk reinsurance business, agreeing to share in the compensation costs resulting from acts of terrorism. Meantime, insurance companies were to have assessed their exposure and learned how to price and underwrite terrorism policies. In December, unless Congress takes action, the TRIA will expire, but insurance companies have yet to come up with a way to provide meaningful and manageable terrorism coverage.

NHL and Its Teams get a Second Chance for a First Impression

KnowWPCarey — Wed, 31 Aug 2005 10:42:35 EST

The National Hockey League's owners recently reached a one-sided agreement with the NHL Players Association, ending the lockout that claimed the entire 2004-05 season. Michael Mokwa, faculty director of sports business in the W. P. Carey MBA, says hockey's approach to mollifying fans after the lost season will be fascinating to watch. "What hockey needs to do most is to demonstrate that it truly cares about its fans and that it respects them and needs them," says Mokwa. Many teams have come up with creative marketing strategies combining lower-priced tickets, expanded cheap-seat sections, and better fan accessibility to the players.

Pricing Schemes Reduce Corporate Taxes by Billions

KnowWPCarey — Wed, 31 Aug 2005 10:42:35 EST

Multinational corporations, including some of the icons of American business, routinely cut tax liability through pricing schemes. By dropping the cost of goods sold to subsidiaries and inflating the price of goods that come back to the U.S., multinationals transfer profits -- and tax liability -- to tax-friendly nations. Experts estimate that corporations shift $62 to $87 billion of pre-tax income out of the U.S. each year resulting in substantial tax revenue losses. Legislation pending in Congress could help plug corporate tax-haven loopholes.

Academics Tackle Global Issues in Partnership with Real-World Managers

KnowWPCarey — Wed, 31 Aug 2005 10:42:35 EST

University business school professors gathered recently at the W. P. Carey School of Business to discuss supply-chain issues and the sophisticated software designed to assist manufacturing plant managers. The visiting professors -- members of the Global Manufacturing Research Group (GRMG), an international supply-chain brain trust -- teach manufacturing management while recording its rapid evolution around the world. They were at the W. P. Carey School of Business to hear from real-world plant managers about their day-to-day supply chain concerns which, in this case, dealt with software glitches.

On Campus or Online: Can Universities Deliver Quality MBA Programs Both Ways?

KnowWPCarey — Wed, 31 Aug 2005 10:42:35 EST

Web-based higher education and distance learning has come a long way in recent years, and more professionals than ever before are pursuing their MBAs in cyberspace. What they often find there, however, is a confusing, crowded marketplace. Online MBA and other postgraduate degrees are booming, with hundreds of universities and for-profit institutions offering programs of varying types and quality worldwide. Students who choose traditional research universities can't help but ask: does an Internet-based MBA program offer the same level of excellence -- and carry the same cache after graduation -- as its on-campus sibling?

Q and A: The Conundrum of Private Placement Discounts

KnowWPCarey — Wed, 31 Aug 2005 10:42:35 EST

A paper published a dozen years ago by finance professors Michael Hertzel and Richard L. Smith is still causing a stir among valuation practitioners and tax officials. "Market Discounts and Shareholder Gains for Placing Equity Privately" published in the Journal of Finance in 1993, challenged the notion that private placement discounts can be uniformly applied as marketability discounts in valuing closely-held firms. In a finding somewhat tangential to the thesis of the paper, Hertzel and Smith discovered that private placement discounts vary widely, depending on circumstances. Their tables are often used in cases where disagreements develop over the value of privately held firms. Hertzel has recently completed another study on private placements that is likely to add more fuel to the fire.

Cat and Maoist: Chinese Officials Debate China's Economic Development with a Nobel Laureate

KnowWPCarey — Wed, 31 Aug 2005 10:42:35 EST

Europe and the U.S., which had been clamoring for a free-floating Chinese currency in the hopes of addressing growing trade deficits, got their wish this summer when China announced a limited float for the Yuan. While the announcement should please many free-market economists –- among them Edward C. Prescott, 2004 Nobel Laureate and professor at the W. P. Carey School of Business -- Chinese national leaders have made it clear that when it comes to its economy, they do not welcome external "advice."

Send in the Crowds: Are the Many Wiser Than the Few?

KnowWPCarey — Wed, 31 Aug 2005 10:42:35 EST

There is an old Spanish proverb that says, "He who does not mix with the crowd knows nothing." James Suroweiki would likely agree. In his book "The Wisdom of Crowds," Surowiecki turns conventional wisdom on its head with the assertion that crowds are smarter than we think they are. In fact, he says, given the right conditions, groups can help us make smarter decisions than even the greatest "experts" in our midst. Throughout the book, Surowiecki makes the case that the collective knowledge of crowds is a valuable commodity that can be put to good use in government, science and business.

Hot Jobs: Southwest Leads in U.S. Employment Growth

KnowWPCarey — Wed, 17 Aug 2005 10:42:35 EST

Knowledge@W. P. Carey introduces "Business West," the first in a continuing series of articles focusing on topics of timely and special interest to the Western states. This issue, Business West examines job growth numbers throughout the

U.S.

, highlighting the Southwestern states leading the pack. What is behind the surging growth in Arizona and Nevada, and what does it portend? Dawn McLaren, an economist with the Bank One Economic Outlook Center at ASU's W. P. Carey School of Business, joins with experts around the West in discussing the issue.

Government IT Partnerships Key to Tomorrow's Work Force

KnowWPCarey — Wed, 17 Aug 2005 10:42:35 EST

In tomorrow's economy, "jobs will go to the best-educated work force, where there is a strong IT infrastructure, innovation and a supportive government," says John Chambers, the dynamic CEO of Cisco Systems Inc. Addressing an audience at ASU's W. P. Carey School of Business, Chambers warned that other nations are outpacing the U.S. when it comes to harnessing information technology to maximize productivity. He calls for a committed partnership between the government and education toward strengthening the IT infrastructure and ultimately, fueling economic growth.

Examining HealthSouth's Chain of Errors, Link by Link

KnowWPCarey — Wed, 17 Aug 2005 10:42:35 EST

The $2.7 billion dollar accounting fraud at HealthSouth Corp. involved 1,272,118 separate fraud entries, which went undetected for at least 15 years. In June a federal jury acquitted HealthSouth founder and former CEO Richard M. Scrushy on 36 criminal charges in connection with the fraud. As the case moves to civil courts, investors and executives are asking how a fraud of this magnitude, involving so many people, could have escaped notice for so long. The HealthSouth case will be examined this fall in "Knowledge@W. P. Carey Live," a series of conversations on current business issues with W. P. Carey experts.

Central, Eastern European Economies Benefit from 'Boomerang Investing'

KnowWPCarey — Wed, 17 Aug 2005 10:42:35 EST

The transition economies of Central and Eastern Europe presented lucrative opportunities for Western investors who were willing to accept the risk of becoming involved in these hitherto untapped markets. But the uncertainty and hazards of operating in these emerging economies impacted native entrepreneurs as well. The result is a pattern of direct foreign investment originating in those countries, as central and eastern European business people found ways to park profits safely in companies based outside their native lands. Sometimes that money makes its way home as foreign investment, where it enjoys some protections not available to other homegrown capital.

Somebody Has to Do It: Workers in 'Dirty Jobs' Cope With Stigma

KnowWPCarey — Wed, 17 Aug 2005 10:42:35 EST

What could an undertaker, a welfare counselor and a prostitute possibly have in common? All three are employed in occupations deemed undesirable by most people. A professor of management from the W. P. Carey School of Business joined with several colleagues to study so-called "dirty work" and the coping strategies used by workers, along with strategic approaches used by managers in "dirty" occupational fields. The researchers found that those employed in these jobs typically need to develop normalizing strategies to counter the social, physical or moral "taint" resulting from their undervalued work.

Gimme Shelter: Boomers Nearing Retirement Consider Housing Options

KnowWPCarey — Wed, 17 Aug 2005 10:42:35 EST

As prices soar in many real estate markets around the country, observers are eagerly waiting to see to see what will happen next. One of the subplots of the unfolding drama is the imminent retirement of the baby-boom generation. Iconoclastic in their youth, boomers have tried to redefine life's stages as they have aged. At retirement they get another chance to make an impact. Will the generation that trusted no one over age 30 gravitate toward age-restricted communities? Will they downsize, or not? It will be interesting to see where this group wants to live post-career.

TABOR Laws: Discipline or Disaster for State Spending?

KnowWPCarey — Wed, 17 Aug 2005 10:42:35 EST

The Taxpayer Bill of Rights, also known as TABOR, is shaping up as a powerful movement in the continuing battle to control government spending. But whether it is a grassroots phenomenon or a grass fire depends on your point of view. Designed to limit state spending by pegging taxes to the cost of living and population growth, TABOR is viewed as the holy grail by fiscal conservatives, but a debilitating affliction by moderates. Colorado's version, passed in 1992, is being used by both sides to argue their case.

Fools Rush Out: Plan Carefully Before Outsourcing Customer Services

KnowWPCarey — Wed, 03 Aug 2005 10:42:35 EST

Attracted by potentially large savings, companies are increasingly shipping customer service functions offshore where third-party providers often shoulder the work. Companies that try this strategy do well to remember that customer service is often a defining component of the company's brand, and missteps in this area can be costly indeed. Headlines have trumpeted the most spectacular of the failures, yet many firms admit that the flops don't worry them. Experts warn that pursuing the benefits of offshoring is a delicate balancing act, and offer tips to make outsourcing customer service work.

Troubled Automaker Faces Fight for Its Life

KnowWPCarey — Wed, 03 Aug 2005 10:42:35 EST

Throughout its nearly 100 years of existence, General Motors has been an icon of business. "What's good for GM is good for the country" -- a loose paraphrase of a statement made 50 years ago by a GM president -- has come to summarize for many the pervasive role of corporations in America. Yet the icon appears to be crumbling. Standard and Poor's downgraded the company's credit rating in May, first quarter losses were huge, and the company recently announced the layoff of 25,000 employees. W. P. Carey experts look under the hood to comment on problems that stretch deep into GM's supply chain.

Corporate Culture as a Road Map to Success

KnowWPCarey — Wed, 03 Aug 2005 10:42:35 EST

Everyone knows the legendary success stories of corporate culture -- Southwest Airlines comes immediately to mind -- but research has not been able to pin down exactly how culture influences financial performance. Researchers at the W. P. Carey School of Business set out to find the link. The answer, they discovered, was in the realization that there is no one simple path leading from cultural values to outcomes. The reality is much more complex: The connection between corporate culture and financial success is actually indirect.

Ephemeral Boon: State Coffers Swell With Irregular Capital Gains

KnowWPCarey — Wed, 03 Aug 2005 10:42:35 EST

State tax revenues are up –- way up –- in the strongest first-quarter growth since 1991. The unexpected boost may have lawmakers feeling like kids who just got birthday bucks from grandma. But this isn't a good time to go on a spending spree, according to economists who have been watching state funds expand. That's because these tax collections are coming from capital gains income, which means the revenue generated could be chancy and fleeting.

Arizona's Physician Shortage Hovering Near Critical Stage

KnowWPCarey — Wed, 03 Aug 2005 10:42:35 EST

If states were graded based on the number of doctors in service to the population, Arizona would get a D-minus, according to a recent study undertaken jointly by the School of Health Management and Policy at the W. P. Carey School of Business and the University of Arizona College of Medicine. The numbers place Arizona near the bottom of a ranking of states based on their supply of physicians, along with Oklahoma, Mississippi and Alaska. And while Arizona's population continues to climb at a record pace, the inrushing tide of immigrants contains few doctors. With the growth of the population and the aging of the baby-boomer generation, that D-minus grade is about to get worse.

Is 'Tyrannosaurus Rex' Management Style Bound for Extinction?

KnowWPCarey — Wed, 03 Aug 2005 10:42:35 EST

The debate over the qualifications of John Bolton, the Bush Administration's nominee as U.S. ambassador to the United Nations, included reports that he is known for bullying subordinates. In the past, some companies tolerated tyrannical bosses, whose abrasive interpersonal style and capricious use of power turn offices into gulags. But research by W. P. Carey School of Business faculty indicates that the boss from Hades actually damages his or her organization, eroding the link between merit and reward, alienating subordinates, impairing teamwork and creating an intolerance of ambiguity. Companies facing competition may find that they cannot afford to harbor despots any longer.

High-Quality Job Availability Slipping Throughout U.S.

KnowWPCarey — Wed, 03 Aug 2005 10:42:35 EST

Economic development today is all about quality jobs. But how does a community know if it is succeeding? Until now, job quality has been measured indirectly or through a simplistic method that produced somewhat misleading (and often conflicting) results. The L. William Seidman Research Institute at the W. P. Carey School of Business took on the challenge, developing a new way of measuring job quality. Its findings: Job quality has been declining nationally for decades. Currently, the highest-quality jobs can be found along the Atlantic coast.

China Steps Up Pace in Reform of Capital Markets

KnowWPCarey — Wed, 03 Aug 2005 10:42:35 EST

Traumatic losses have punctuated the recent history of the Shanghai and Shenzhen stock exchanges -- a paradox when viewed in the context of China's rapid economic growth. The underperformance of the exchanges underscores the need to address capital market reforms, including accounting transparency and shareholder and creditor rights. W. P. Carey School finance professor Jeffrey Coles explored the liquidity and regulatory problems that afflict the Chinese exchanges at the Sino U.S. New Market Economy Forum held recently in Beijing.

A Little Chaos Can Be Good for Labor Markets

KnowWPCarey — Wed, 03 Aug 2005 10:42:35 EST

A move to protect American textile jobs has escalated into a nasty tit-for-tat trade battle between the U.S. and China. Following a surge in Chinese garment imports earlier this year, the U.S. slapped retaliatory quotas on Chinese trousers and shirts, arguing that the high volume of imports could put domestic firms out of business. It's a somewhat ironic reversal: the U.S., which has one of the freest labor markets in the world, is embroiled in a protectionist fight against China, where the "iron rice bowl" lives on with many workers in government jobs. A W. P. Carey economist argues that economies are best served when politicians leave labor markets alone.

Chinese Firms Launch Effort to Become Global Players

KnowWPCarey — Wed, 03 Aug 2005 10:42:35 EST

Political friction is just one of many hurdles Chinese firms must clear as they begin venturing beyond their home territory. They'll also have to wrangle with cultural differences and learn to localize operations to suit foreign markets. The overseas expansion process is just now getting under way in China. At the Sino U.S. New Market Economy Forum held recently in Beijing, a panel on globalization agreed that China has yet to develop a truly multinational company of its own. But that may change before long. As one expert says: "There's a strong sense of comparison: that if the Japanese and Koreans could do it, so can China."

China's Potential Hinges on Smart, Sustainable Growth

KnowWPCarey — Wed, 03 Aug 2005 10:42:35 EST

Much has changed in China since the film "Golden Path" debuted during the Cultural Revolution. Back then, a character in the movie who argued that rich people are good was portrayed as an arch-villain. That's no surprise, since the reigning Communists considered the pursuit of wealth to be utter heresy. Only after the late 1970s, when Deng Xiaoping launched the first of China's free market reforms, did that notion begin to change. Now many Chinese -- especially the younger generation -- are avidly seeking to get rich. However, the nation should resist the temptation to rush headlong into the pursuit of wealth and instead begin to consider more sustainable growth strategies, in order to maintain the health of the environment and the well-being of its people.

Prescott: Free Trade Is Key to China's Economic Potential

KnowWPCarey — Wed, 03 Aug 2005 10:42:35 EST

China's economy has made huge strides since Deng Xiaoping commenced market reforms in 1979. Edward C. Prescott, the 2004 Nobel Prize laureate in economics and professor at the W. P. Carey School of Business, estimates that China's standard of living now stands at about one-seventh the level of the world's leaders. Beijing authorities are eager to narrow the gap further between China and advanced industrialized countries. Prescott believes the answer is not to be found in conventional economic theories on trade volumes or comparative advantage. He argues that China needs to cast off constraints on supply -- and that promoting free trade will play an essential role in the process.

Pensions Both Public and Private: Underfunded and Under Fire

KnowWPCarey — Wed, 06 Jul 2005 10:42:35 EST

United Airlines set an unhappy precedent for companies struggling to fund their pension plans when it defaulted on its pension obligations, shifting $9 billion of its personal pension obligations to the Pension Benefit Guaranty Corp. The move contributed to the massive deficit of the PBGC, which insures private pension plans. Testifying this week before a congressional committee on the looming crisis of underfunded pension plans, David Walker, head of the Government Accountability Office, said, "Unfortunately, when it comes to pension funding, too many high-risk companies do what is legally permissible -- rather than what is right -- when deciding how much money to put into their pension plans."

China MBAs Prepare for Growing Market Economy

KnowWPCarey — Wed, 06 Jul 2005 10:42:35 EST

Chinese students used to look abroad for graduate business education, but increasingly stringent visa regulations and the importance of maintaining local professional networks have made local and joint-venture programs in China much more attractive. The W. P. Carey MBA Shanghai is an example of a customized joint venture program. The rigorous curriculum is delivered by an international faculty in an atmosphere characterized by spirited classroom give-and-take. Recently its first class of students -- an elite group of Chinese executives and government officials -- received their degrees.

Rebuilding Social Security: The Labor Elasticity Effect

KnowWPCarey — Wed, 06 Jul 2005 10:42:35 EST

In the debate over Social Security, Nobel Laureate Edward C. Prescott has been a strong voice for a shift away from the current pay-as-you-go model -- in which current workers pay for current retirees -- to a mandatory personal saving plan, in which workers' savings are put into low-cost, highly diversified funds. The personal saving approach would guarantee financial security for retirees in a country where the ratio of worker to retiree is declining, Prescott says, and would help boost the country's overall economic performance as well.

Quaker City's Economic Development History Holds Lessons for Phoenix

KnowWPCarey — Wed, 06 Jul 2005 10:42:35 EST

Philadelphia and Phoenix have nothing in common -- or do they? Robert E. Mittelstaedt, dean of the W. P. Carey School of Business, draws on his years as an engaged Philadelphian to analyze the growing pains of his new home in the desert. He discovers that although the two towns are as different as cheese steaks and tacos, both thrive or falter under the same economic realities. Glittering in the Arizona sun, Phoenix can still take a lesson from the venerable City of Brotherly Love. West or east, it's about managing your assets.

'Clockspeed' Concept Offers Boon to Health Care

KnowWPCarey — Wed, 06 Jul 2005 10:42:35 EST

How efficiently hospitals keep track of health-care supplies can make the difference not only in cost but also the quality of patient care. There's plenty at stake: the Health Industry Group Purchasing Association reports that "goods and purchased services" is the second-largest expense -- after labor costs -- in hospital settings. Eugene Schneller and the late Lawrence Smeltzer of the W. P. Carey School of Business spent the last few years studying procurement processes employed in U.S. hospitals. They discovered that a key to streamlining health-care delivery may lie in the industrial supply chain concept of "clockspeed."

Scurrilous or Savvy? Free Market and the Practice of Ticket Reselling

KnowWPCarey — Wed, 06 Jul 2005 10:42:35 EST

Witnessing the arrest of a man buying a ticket outside a World Series game angered Stephen Happel enough to spur him to begin researching the common (though often illegal) phenomenon of secondary markets for event tickets. "I'm a free-market economist who loves to see voluntary exchange that benefits everyone," says Happel, a professor of economics at the W. P. Carey School of Business. A free market for tickets, he argues, benefits the teams and fans alike. But the secondary marketplace has expanded beyond the guys who peddle tickets on the corner before game time. Choosing to join what they have been unable to beat, teams are getting in on the action.

Deep Supplier Relationships Drive Automakers' Success

KnowWPCarey — Wed, 06 Jul 2005 10:42:35 EST

Building deep supplier relationships is a key facet of success for Japanese automakers Honda and Toyota. Through a supplier-partnering hierarchy, the two companies work with suppliers to reduce costs, increase efficiencies, and maximize market share. One ASU professor has spent his career studying the auto giants, and reveals what's behind their revolutionary practices. He found that the Japanese take care to cultivate relationships with their suppliers, integrating a "tough love" approach of high standards and demanding requirements. Driving this philosophy is their belief that the suppliers' success is absolutely crucial to their own.

Culture Clash on Horizon for East-Meets-West Merger

KnowWPCarey — Mon, 27 Jun 2005 10:42:35 EST

The America West-US Airways merger combines the bicoastal strengths of the two carriers to produce a more airworthy national line. But issues of culture could complicate life for the new entity, which will need all of its attention focused on the fierce competitive head winds. Experts at the W. P. Carey School of Business assess the chances that the merged airline will achieve cruising altitude.

Should Businesses Work Harder to Thwart Identity Thieves?

KnowWPCarey — Tue, 07 Jun 2005 10:42:35 EST

Identity theft hit almost 10 million Americans in 2003 at a total personal cost of $5 billion. Businesses and financial institutions were also victimized at an estimated cost of $48 billion. Up to now consumers have viewed the businesses through which they have been robbed as unwilling accomplices; however, experts say that businesses are getting off too easily. When necessary –- to get defense contracts, for example -– businesses will invest in security protection. Information systems experts at the W. P. Carey School of Business suggest that the time may have come for regulators to insist that business afford the consumer equal protection.

The Road to RHIOS: Health Care IT Networks on the Horizon

KnowWPCarey — Tue, 07 Jun 2005 10:42:35 EST

The availability of health data has implications for individual patients, health-care systems and policymakers, yet despite advances in information management, patient health records to a large extent are still scattered and difficult to retrieve. A research team at the W. P. Carey School of Business created a database of patient information that aggregates information about disease and treatment from physicians, clinics and hospitals without compromising confidentiality. The database has been useful to health-care planners and public health researchers -– and is a model of local innovation as the nation moves toward the regional health information sources.

Outsourcing: Effective Strategies Necessary for Long-Term Success

KnowWPCarey — Tue, 07 Jun 2005 10:42:35 EST

As more jobs move offshore, outsourcing appears to be one of the leading strategies used by companies to gain competitive advantage. But a new research study has determined that while outsourcing may be widespread, most companies have to failed to optimize its value through strategic planning. A research study jointly sponsored by A.T. Kearney Inc. and CAPS: Center for Strategic Supply Research at the W. P. Carey School of Business looked at outsourcing practices and developed guidelines for improvement. Companies should plan on three phases for successful outsourcing: planning and analysis, contracting and relationship development and implementation.

Confidence Game: Are Consumers Still Playing by Conventional Rules?

KnowWPCarey — Tue, 07 Jun 2005 10:42:35 EST

As consumer outlook surveys chart plunging numbers, some experts are noticing that the trend coincides with President Bush's declining approval ratings. Could it be that the public's view of the economy is more closely linked to the political climate than researchers thought? This powerful crosscurrent of economic, sociological and political thinking presents a new challenge. Economists must now determine whether the confidence numbers are a short-term blip or the signal of the beginning of a downward trend.

Can't Stop the Music: Industry Fails to Keep Pace With Consumer Habits

KnowWPCarey — Tue, 07 Jun 2005 10:42:35 EST

The Supreme Court is expected to rule next month whether Grokster, a Napster-like file-sharing network for downloading music and other digital entertainment, can be held liable for facilitating copyright infringement. But even if the music industry wins the case, two marketing professors at the W. P. Carey School of Business argue that it will ultimately lose if it keeps fighting consumers. Their research suggests that trying to stem music downloads through legal action and technology is likely to cost the industry more business than it preserves.

Hot Real Estate Market Tests Nerves of Buyers, Sellers, Investors

KnowWPCarey — Tue, 07 Jun 2005 10:42:35 EST

The Phoenix real estate market continues to support the state's reputation as a hot spot, but Arizona is not the only place where that sector is booming. In fact, other cities have surpassed the desert metropolis to claim the top rankings for real estate price increases. The potential for handsome gains has attracted speculators; however, economists are wary about the future. The last time the nation saw a real estate run-up of this magnitude was in 1988, when 24 metro housing markets experienced a surge in housing prices. It remains to be seen whether the cycle will repeat and carry the real estate market into a painful decline, or whether there are new unpredictable patterns forming.

Toward a Smarter Model of Performance Management

KnowWPCarey — Tue, 10 May 2005 10:42:35 EST

Donald Trump's weekly pronouncement "You're fired!" makes for blockbuster TV ratings, but as a model for performance evaluation it leaves much to be desired. That's the opinion of W. P. Carey School of Business management professor Robert L. Cardy. His new book, "Performance Management: Concepts, Skills and Exercises," steers managers away from the bellowing/bullying model and toward a cooperative structure in which employees take a more active role. The goal is to make both judges and the judged partners in professional development, for the greater good of the organization.

Study: Tax-Break Incentives for Business Seldom Pay Off

KnowWPCarey — Tue, 10 May 2005 10:42:35 EST

Tax breaks are widely promoted by economic development agencies and the business lobby as an effective tool to promote corporate investment. Cities use the offer of tax breaks to lure development –- often to prevent neighboring communities from landing the companies with the most potential for creating jobs or sales. The practice is hotly debated, yet despite the controversy public officials appear unlikely to abandon it. An accounting scholar at the W. P. Carey School examined one form of tax incentive –- corporate income tax breaks –- and found evidence that in fact, the increased investment public officials hope to buy infrequently comes to pass.

Study Links Environmental Causes to Human Evolutionary Development

KnowWPCarey — Tue, 10 May 2005 10:42:35 EST

Using health information dating from the Civil War, researchers have arrived at some intriguing conclusions about the "environmentally induced change to human physiology" which has led to a steady increase of healthier longer-lived people in developed nations. A University of Chicago economics professor presented the study findings during a recent health care symposium in Phoenix. The remarkable findings identified the existence of a synergism between technological and physiological improvements which has produced "a form of human evolution that is biological but not genetic, rapid, culturally transmitted and not necessarily stable."

Political Wheel of Fortune: Is Wall Street tied to Presidential Cycle?

KnowWPCarey — Tue, 10 May 2005 10:42:35 EST

For the last 30 years, especially during elections, investors have speculated about the apparent link between stock market behavior and the U.S. presidential election cycle. To the observer, returns seem to be higher during the second half of a president's term than the first. Is it true, or has this phenomenon been merely an intriguing coincidence? A W. P. Carey School of Business finance professor analyzed market behavior going back to 1803 and confirmed that the pattern is real. The reasons why are not so clear.

Should Health-Care Costs Be Purely Market-Driven?

KnowWPCarey — Tue, 10 May 2005 10:42:35 EST

The solution to the increasingly expensive U.S. health-care system is to abandon insurance plans and government programs -- and throw the beast into the open marketplace, according to 2004 Nobel Laureate Edward C. Prescott, professor of economics at the W. P. Carey School of Business. Prescott outlined the economic logic of his economic hypothesis at a recent Phoenix symposium on the future of health care.

Pitfalls Inherent in Ranking Financial Professionals

KnowWPCarey — Mon, 09 May 2005 10:42:35 EST

From business schools to baseball batters, we use rankings to determine who's the best. Investors, too, look to rankings to assess the performance of financial professionals. The market has responded by providing several indices to gauge the success of funds, but investors need to look closely before deciding which ranking to use when making decisions. The indices can be misleading if you don't know what they are measuring.

Knowledge May be Your Company's Greatest Untapped Resource

KnowWPCarey — Mon, 09 May 2005 10:42:35 EST

Your company's most valuable resource may be locked inside the brains of employees. A W. P. Carey School of Business professor has written a paper that describes ways a business can unlock and use this powerful resource. "Measuring Knowledge Management Capabilities" presents a game plan for creating a knowledge management infrastructure that pinpoints knowledge sources and then helps employees solve problems and achieve goals, such as developing new products, raising an existing product's sales or boosting productivity.

Keep Options Open with a 'Best-of-Breed' Software Strategy

KnowWPCarey — Mon, 09 May 2005 10:42:35 EST

While integrating different software applications is always a challenge, it is easier when the different components come from the same vendor and are designed to fit together. But don't assume the path of least resistance is always best for your organization, says Julie Smith David, associate professor of information systems at the W. P. Carey School of Business. David has been studying whether it is better for a company to buy its enterprise systems from a single source or to choose a composite. Her study shows that in many cases, using one vendor's offerings to provide all of an enterprise's functionality is not always the best for the bottom line.

Fair and Focused: Management of 'Cross-Functional Teams'

KnowWPCarey — Mon, 09 May 2005 10:42:35 EST

"Cross-functional teams" comprise employees and managers from separate divisions or organizational units within a company. Generally, these teams handle non-routine tasks or projects, addressing critical strategic issues such as change management or growth initiatives. An accountancy professor at W. P. Carey School of Business takes a look at whether changes in the way that management control systems are structured can help to keep cross-functional teams on target. Professor Casey Rowe's research provides evidence that people often fail to recognize how subtle changes in the structure of management control systems can affect informal or social controls such as corporate culture, and how powerfully these "softer" forms of control impact cross-functional team performance.

E-Tailers Must Win Trust to Gain Ground Over Bricks and Mortar

KnowWPCarey — Mon, 09 May 2005 10:42:35 EST

Lacking chic surroundings or cordial salespeople, e-tailers must work harder at gaining the trust, respect and ultimately loyalty of their customers. A research team at the W. P. Carey School of Business has concluded that "value congruence" is the best possible goal of e-tailers who want to attract and retain customers.

CEOs with COOs: Two Heads Are Not Necessarily Better Than One

KnowWPCarey — Mon, 09 May 2005 10:42:35 EST

Depending on the size of the corporation, the diversity of its products and the background of the CEO, a COO as second-in-command can be a help or a hindrance, according to a new study by professors from the W.P. Carey School of Business and Pennsylvania State University. The study, CEOs Who Have COOs: Contingency Analysis of an Unexplored Structural Form, reported that in many instances, "CEOs who have COOs deliver lower organizational performance than those who do not." The study probes this phenomenon and offers several possible explanations.

Branding Tied to Core Values Attracts Talented Work Force

KnowWPCarey — Mon, 09 May 2005 10:42:35 EST

Companies know that finding the right people to take care of business is critical for success. But how to attract and hold onto those people? A W. P. Carey School of Business management professor has identified a new use for the branding concept: focusing on human resource management. Companies that develop a brand for their personnel practices have a powerful competitive advantage in the talent marketplace. Some have successfully aligned their employment and product brands, but in many cases the most lasting value results from employment brands that are tied to a firm's core values rather than to its product.

Boomers to Challenge Limitations of Health-Care System

KnowWPCarey — Mon, 09 May 2005 10:42:35 EST

The airline industry provides a gloomy metaphor for health care, according to Brandeis University economist Stuart Altman, who spoke at a W. P. Carey School of Business symposium recently. With hospital care dominating the growth in health-care costs, institutions that can focus on the patients and procedures covered fully by insurance will be robust. Hospitals that serve the poor and the uninsured will falter –- like big airlines committed to providing ubiquitous service, even in unprofitable markets. With the baby-boom generation aging into high utilization, pressure on the system will only increase. Altman outlines the hard decisions ahead.

Biodesign Institute Studies Customized Prescription Technology

KnowWPCarey — Mon, 09 May 2005 10:42:35 EST

Only a handful of the nation's medical schools now teach molecular science, but soon doctors without this education will be on the road to obsolescence. Scientists are looking deep into the genetic code to find an answer in the molecules to the riddles of disease diagnoses and treatment. Variations within the molecular structure of genes, called haplotypes, may explain why a drug helps one patient but triggers an adverse reaction in another. When fully understood, haplotypes will play a leading role in diagnosis as well as prescription.

Catastrophe Modeling: A New Approach to Managing Risk

KnowWPCarey — Mon, 09 May 2005 10:42:35 EST

Before Hurricane Hugo swept through parts of the southern U.S. in 1989, the insurance industry had never suffered a loss of more than $1 billion from a single disaster. Since then, numerous catastrophes have exceeded that figure, even as development in danger zones continues to increase. It's a trend that emphasizes, as never before, the need to manage risk on both a national and a global scale. "People today are asking the question, 'How do we scientifically evaluate catastrophic risk?'" says Wharton's Howard Kunreuther, co-author -- along with Patricia Grossi -- of Catastrophe Modeling: A New Approach to Managing Risk. The book analyzes the role of catastrophe modeling in developing risk management strategies to help reduce losses from future disasters, ranging from floods and hurricanes to environmental damage and terrorism.

Accounting for The Abuses At AIG

KnowWPCarey — Mon, 09 May 2005 10:42:35 EST

When accounting problems at American International Group surfaced last winter, it looked like a small matter next to the corporation–busting scandals of the Enron era. But AIG directors acted as if the company's very survival was at stake, removing Maurice Greenberg as CEO and later forcing him to step down as chairman. The heart of the problem is this: No one can be sure how big the scandal will grow, because it involves business relationships, insurance products and accounting practices so arcane that few people understand them - including a controversial product known as "finite insurance."

Dissatisfied Consumers Turn Tables on Companies in Cyberspace