Kellstadt Graduate School of Business

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insideKellstadt Blog


insideKellstadt Blog

Read inside opinions from faculty and staff at DePaul University and Kellstadt. Check back often for new posts!

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Kelly Pope, of the School of Accountancy, researches white collar crime. Last week she prepared to visit a former professor who is in prison for his involvement in a $66 million Ponzi scheme. What follows is her experience heading into the visit:

March 20: It is Sunday morning and I am preparing to go to prison tomorrow. Should I be nervous? What should I wear? Make-up? How do I respond when they call my name? Will the guard accept a handshake? I am checking the weather for tomorrow on my phone. Can I bring my phone? These are the questions I am contemplating as I get ready for my trip to Butner Federal Correctional Facility in Butner, N.C., tomorrow.

The facility is home to some legendary criminals, including notorious Ponzi schemer Bernard Madoff. There is also a professor at the Butner facility, former economics professor Dr. Albert Parish, who is serving a 26-year sentence for his involvement in a $66 million Ponzi scheme. Fortunately for me, my arrangement at Butner is very different from the other 3,600 inmates. I will be on the other side of the visitor’s table, visiting Dr. Parish.
I hold my role as an educator in high regards and I never imagined visiting a fellow colleague in academia at a prison where he is serving a 26-year term. I grew up 45 minutes from Butner but Tuesday will be the first time I view life on the inside. My research encompasses the intricacies of white-collar crime, and when I am inside Butner the consequences of these crimes will be true before my eyes.

Butner Federal Correctional Facility, considered the “Crown Jewel” of the Bureau of Prisons system, consists of two medium-security prisons, a minimum-security prison camp and a medical facility. It has the largest psychological medical complex in the entire federal prison system and is home to one of the top drug abuse programs in America.

Preparing for my visit to prison is both intriguing and frightening. I am recalling some of Hollywood’s portrayals of prison. On the television series "Prison Break," actor Wentworth Miller’s character tattooed the prison blueprint on his body in efforts to help his brother escape from prison. In the movie "The Shawshank Redemption," Tim Robbins plays a former accountant who swindles a warden out of thousands of dollars. I learned that Butner is known to be akin to a college campus. I will find out first hand if this feels like college and whether Dr. Parish feels like a professor in that environment. I doubt it, but I look forward to the experience.

(A version of this post was originally published on Pope’s blog on Forbes.com.)

Kelly Pope is Assistant Professor in the School of Accountancy and Management Information Systems at DePaul University.

Technology Will Drive How Customers and Brands Interact

Wednesday, March 16 2011 01:53:42 PM

By Robert Galka, Department of Marketing – Companies are working to use technology to interact dynamically with consumers.

Imagine walking through the shopping mall when suddenly your Smart Phone alerts you to a product offering. The store you are about to pass has a Read/Write Object sensor near the entranceway. The sensor has identified you through your Smart Phone as a prior customer who has not purchased from the store in the last 6 months. It utilizes information from its customer file to best match an offering for you. It sparks your interest and you enter the store.

Scenarios like this are closer to coming true. My experience teaching Customer Relationship Management is helping me work with companies to leverage technology to connect with their customers. My current project with a Japanese auto manufacturer is focusing on how to enhance its cars with the capabilities that consumers will expect in the next 5 to 10 years. Radio Frequency Identification Technology installed in cars may soon allow consumers to enable their autos to do more than just provide directions. It is not far fetched to think that while driving, your car may enable bill payment, provide entrance to parking lots, and allow voice recognition to control household appliances or security and sprinkler systems — all based on the driver’s identity.

As we move forward, technology like this will drive consumers’ relationships with brands. Strap yourself in and enjoy the ride.

Robert Galka is an Executive-In-Residence in the Department of Marketing at DePaul University.

Mutiny’s History Continues in Modern Organizations

Wednesday, March 09 2011 10:45:50 AM

By Patrick J. Murphy, Department of Management – Have you ever jokingly cried “Mutiny!” during a meeting? It’s not as taboo as shouting “Fire!”, but have you thought about why this term generates such passion? Mutiny has a rich history that continues today.

Mutiny is defiance of existing authority or leadership inside an organization by the organization’s members. It intends to influence operations via conflict, coordinated action, promotion of certain interests or seizure of power. Although these actions can transform authority structures or remove leaders, their aim is rarely to damage the organization. Of course, a mutiny may be woefully misinformed or end up failing badly, but the core intent is usually constructive and utilitarian.

My colleague Ray Coye and I have researched mutiny extensively. In addition to being business school professors at DePaul, we are maritime service veterans with an interest in history. Our research about mutiny has won some major awards, and now we're turning it into a business book to be published in 2012 by Yale University Press.

For years, Coye and I have examined mutiny in organizations using lessons from historic cases on sailing ships. For four centuries, these vessels dominated commerce and trade in the Western hemisphere, and thousands of them were active during any given year. Throughout this period, mutinies in ships’ wooden confines were just as common as restructurings or layoffs in today’s companies. By contrast, today’s dominant form of commercial activity, the industrial organization, is only about 200 years old.

There are differences between modern organizations and sailing ships, but it would be foolish to downplay the similarities. In both settings, skilled people work together in a social context defined by management activity, resources, structures, objectives and strategies. In these contexts, mutiny emerges from the same human complexities. Whereas historic mutinies could be frighteningly violent, today's are social and intellectual. Surprisingly, modern mutinies are less sophisticated than historic ones. A historic mutiny could surgically transform flawed authority and improve the organization.

Mutiny and leadership are two sides of the same coin. You would probably agree that poorly executed leadership is not a positive thing. Would you also agree that well-executed mutiny is not a negative thing? Indeed, there are usually two sides, but a “good versus evil” approach by either one will generate uncertainty for all. Rather than framing the issue in terms of positive versus negative, try to understand mutiny as an immutable force of human nature that has evolved into a quieter expression in modern settings.

Patrick J. Murphy is Associate Professor in the Department of Management at DePaul University. He can be reached through his website, profpjm.com.

By Robert Rubin, Department of Management – At some point, all managers are confronted with the reality that their personal success on the job depends upon the success of the people they manage. Thus the all too frequent lament, “I just can’t find good people.”

I heard that grievance recently in my doctor’s office. Knowing that I spend my time teaching and researching human resource issues, he spoke bluntly: “I just wish hiring people was more like the diagnostic practices of medicine — something akin to an MRI for predicting future job performance.”

As it turns out, the most effective selection practices are in many cases more predictive than many common medical diagnostic tools (for different criteria, of course). For decades, Industrial-Organizational Psychologists have conducted research on the usefulness of various predictors of job performance. The results might surprise you. The most effective hiring tools include work samples, general mental ability tests, structured interviews and job knowledge tests.

Comparing the predictive utility of these tests to tests in medicine can be eye opening. For instance, a well-constructed work sample is up to 1.5 times more accurate in predicting job performance than mammogram screenings are at predicting breast cancer. A standard test of general mental ability is 9 times more predictive of job performance than a ventilatory lung function test is for lung cancer. A structured interview is 25 percent more accurate in prediction than a home pregnancy test.

Of course many medical tests are extremely accurate. The point is that like in medicine, some tools are better than others when it comes to selecting people for jobs. The trick for managers is to gravitate toward the more effective tools and ignore the less effective ones. This isn’t always easy as some tools appear to be sound on the surface. Take for instance the use of personality tests, which are scored, are reliable across people and often can converge with managers’ notions of “a good employee.” The evidence, however, suggests that personality tests are weak predictors of future performance.

My physician told me that medicine is often more art than science. Although this is certainly true in many professional realms, when it comes to selecting people for success on the job, it’s more science than art.

Robert S. Rubin is Associate Professor in the Department of Management at DePaul University.