Genius at Work

Dr. Jeong H. Kim leads a 3-D approach to innovation at
Alcatel-Lucent Bell Labs

In March 2006, not long after he became president of Alcatel-Lucent Bell Labs, Dr. Jeong H. Kim was asked to make a presentation to senior officials of the Chinese government. The topic: how to fuel innovation.

Bell Labs, after all, had a reputation as one of the world’s most productive research labs. Since its founding in 1925, the company has generated more than 32,000 patents, and Bell Labs researchers have amassed six Nobel Prizes, an Emmy, a Grammy, and an Oscar for breakthroughs such as the transistor, the laser, and the UNIX operating system.

While preparing his speech, Kim realized he had a problem: Chinese languages do not have a direct translation for the word “innovation.”

“In the English dictionary, innovation is defined in two dimensions: the creation process, and the impact,” Kim says, noting that this definition is not sufficient in today’s dynamic market. “The missing element is timing: timing of the creation, and timing of the impact. So I put those parameters on an axis and created a cube.”

The resulting visual model for innovation not only bridged the language barrier for Kim’s Chinese audience, but it also has become a valuable management tool as he oversees a dizzying array of research initiatives at Bell Labs, which parent company Alcatel-Lucent calls the center of its innovation engine.

The cube is a tool that allows Kim to evaluate each research endeavor based on three dimensions: the time frame for when it will be relevant (immediately or in the future); the development process; and its projected impact, whether it’s an incremental step forward or a revolutionary change.

Each corner of the cube is associated with a different type of project: an innovation intended for the current market that is disruptive and analytical, for example, falls into the Entrepreneur corner. “I’m emphasizing disruptive research at Bell Labs because that is what is needed in a hypercompetitive market,” Kim says, adding that he steers those projects toward Alcatel-Lucent Ventures, an incubator he set up to commercialize certain types of innovation.

An innovation that is current, disruptive, and artistic, on the other hand, would fall into the Genius corner. “We have a researcher who became interested in how spiders build webs and found a principle that he can apply to complex network optimization,” Kim says. “That’s an example of a genius at work.”

The cube also helps Kim to steer Bell Labs away from less promising corners, like Pointless and Black Hole, to discourage pie-in-the-sky projects.

That Kim has thrived in the challenge of marrying bold ideas with marketable applications is not surprising. He came to the United States from South Korea when he was 14 and unable to speak English. Working at a convenience store through most of high school, he earned a spot at Johns Hopkins University where, in just three years, he completed degrees in electrical engineering and computer science while also helping to launch a technology start-up. From there he joined the U.S. Navy as an officer on a nuclear submarine, socked away a master’s in technical management, earned his doctorate in reliability engineering at the University of Maryland, and launched Yurie Systems, a data technology firm that Lucent eventually acquired for $1.1 billion in cash.

It was partly his ability to turn abstract ideas into billion-dollar technologies that in 2005 landed Kim the position of president at Bell Labs — the first to come from a background in business rather than research. That choice was deliberate, says Patricia Russo, chief executive officer of Alcatel-Lucent.

“Under Jeong Kim’s leadership, Bell Labs is providing Alcatel-Lucent with a competitive advantage while still supporting and fostering the fundamental research the labs have always been known for,” Russo says. “He brings a unique perspective to Bell Labs — an entrepreneurial spirit and proven track record in both commercializing new technology and leading high-performance technical teams.”

Since taking on his current role, Kim has guided Bell Labs in the development of a wave of new tools for managing wireless and other data networks, while continuing to work in cutting-edge frontiers like nanotechnology and quantum computing — keeping it all in balance.

“Innovation can lead to improved competitiveness in the market, which will result in the success of your company,” Kim says. “My goal is for Bell Labs to be a key driver and a thought leader in our industry. It’s a never-ending battle, building a better and brighter future for all of us.”

James Rogerson leads a group of instructors at MSR Houston

James Rogerson works with his hands. As a racer, he’s used them to stay ahead of the competition. And as chief instructor at MSR Houston, which bills itself as “the premier road racing facility in Texas,” he uses them to teach students who want to be fast on the track or safe on the road.

MSR Houston is no ordinary learning institution. Opened in 2005, the sprawling facility covers 381 acres in Angleton, 35 miles south of Houston. The longer of its two tracks is a 2.38-mile, 17-turn road course; a 1,200-meter, 17-turn go-kart track stands adjacent. Racing is only part of the entertainment for MSR Houston’s 192 members, who also enjoy amenities such as private garages, suites overlooking the tracks, and the opportunity to view private testing when professional racing teams come to the facility.

Rogerson, 62, and his instructors serve a clientele that includes teens taking basic driver education, state troopers in training, amateur enthusiasts looking to improve their skills, and young hot-shots seeking to advance their racing careers. We caught up with Rogerson, a Houston native, during testing for this year’s Atlantic Championship series, and he was eager to share some of the wisdom he’s gained over 40 years as a racer and instructor. Rogerson’s knowledge is obvious as he discusses the intricacies of the hairpins and straightaways of MSR Houston’s road course. His pointers on taking the correct cornering line, braking, and matching revs are just the kind of advice we applied as we guided the Viper SRT-10 that Dodge generously provided for our track session. Rogerson’s ability to convey his knowledge in a truly relaxed fashion is what makes him an effective instructor, whether the teaching objective is controlling speed or just learning personal limits.

“You’re more effective as an instructor if you’re calm and don’t try to give a lot of input all at once,” Rogerson explains. He tailors his instruction to the individual, taking time to find out if the student is an engineer, businessperson, or writer, and talking to each on a technical level he or she can understand.

Teaching teens is especially rewarding for Rogerson, who says MSR Houston’s atmosphere makes its youth driver education classes particularly effective. “We teach them what the dynamics of car control are about, take them out and let them make mistakes. When they get it the first time, you can feel it click.”

Rogerson’s connection to racing generates respect, even from those who arrive at MSR Houston with their own ride in tow. Hoping to satisfy their need for speed, they turn to Rogerson for technical pointers on acceleration and braking technique. Some are enthusiasts with time — and money — to burn. Others have come to MSR Houston seeking a racing license, which they can earn in as little as three days of instruction from Rogerson and his staff.

The transition from racing to teaching was gradual for Rogerson. He began racing motorcycles as a teenager, eventually earning sponsorship from Suzuki. By his late twenties he had made a switch to cars and Sports Car Club of America solo autocross competition and won a national title. Rogerson then made his way into road racing and the Spec (Mazda) Miata Series, finishing fourth in points in the competitive Southwest Division in 2004. He still cites the diminutive Miata as his favorite racing mount. “You have to drive it so far over the tires,” he says, meaning that racers push the car to the limits of its available grip, “and you’re with a bunch of guys doing the same thing.”

When not at MSR Houston, Rogerson shares a passion for international cuisine with a group of racers who meet routinely to sample the city’s array of global food offerings. “Anywhere they’ve ever drilled oil, workers have sampled the local food,” says Rogerson. “And, chances are, there’s someone in Houston who has come here to put it on the menu.”

Keeping It Simple

Marten Hoekstra of UBS makes common sense of wealth management

“Some things are simple and easy,” Marten Hoekstra observes. “Others are simple and hard. Our business is very hard but also very simple.”

Few would argue that financial services is an easy business to succeed in, particularly in the past 12 months. But UBS Wealth Management continues to succeed and has grown to become the world’s largest wealth manager, with responsibility for approximately $3 trillion in invested assets. Hoekstra is deputy CEO of Global Wealth Management and Business Banking, and the head of UBS’ Wealth Management Americas division, whose territory includes the United States, where UBS manages $716 billion in assets.

A 25-year veteran of the financial services industry, Hoekstra started on the front lines as a financial adviser. There, he emphasizes, is where the most essential, or “simple,” element of the wealth management business exists — the relationship between financial adviser and client.

“American clients, in particular, tend to focus on adviser selection almost ahead of firm selection,” Hoekstra points out. “In most of the world, people choose the firm ahead of the adviser.”

Most clients spend their adult lives seeking an adviser who makes the right decisions for them. Increasingly, Hoekstra says, they are choosing UBS. Wealth Management Americas is now the fifth-largest wealth manager in the U.S., in part through acquisitions but also through its reputation for service. “I think if you continue to improve the quality of your client experience, clients will vote with their money,” he says.

The way wealth management clients “vote” is different than it was 25 years ago, when Hoekstra began his career as a financial adviser. The adviser-client relationship is less centered on transactional advice today, he says, instead skewing more toward holistic wealth management, including planning, risk management, and asset allocation.

“Clients used to think part of an adviser’s value was to give a quote or do order entry,” Hoekstra explains. “Now, clients can get a quote or place orders themselves. They’re seeking a relationship with someone who takes time to understand their needs and helps them make decisions. That’s very different from ‘Tell me what stock to buy.’”

Though he might give you a stock pick, Hoekstra would be just as enthused about recommending a bicycle. Away from UBS he’s an outdoorsman with an affinity for mountain biking. Like other UBS execs, American-born Hoekstra has spent time in Switzerland, where he fell in love with Zurich’s proximity to the Alps and the range of mobility choices available to the Swiss.

In fact, Hoekstra’s love of cycling and his career as a wealth manager sync nicely with his support for World Bicycle Relief, a charity that aims to support simple, sustainable transportation through the provision of bicycles. “The real reason I love their work is that it combines two major interests. I love bikes, and my main charitable interest is alleviation of poverty and oppression, inclusive of economic limitations. Something as simple as a bicycle can make a huge difference to a family and a local community.”

Back at Wealth Management Americas, Hoekstra says the current dip in the business cycle hasn’t dented his ambitions. He believes that growth can be achieved by providing existing and potential clients with straightforward, honest information.

“Clients expect clarity and fact-based confidence in difficult times,” he says. “Part of a long-term plan is facing challenging times and not abandoning the plan, assuming it is in keeping with your risk tolerance. So, a phone call today is worth more to a client than it is when markets are going straight up.”

It’s simple and hard.

Corporate travel managers keep companies in fighting form

The plan of attack, for the corporate travel manager, goes something like this: On any given day, six or 12 or 100 execs need to get to Houston or Cleveland or London — or to a client meeting someplace in between. In the scrum for plane tickets, rental cars, wireless connections, and the occasional lost laptop, the corporate travel manager employs strategy, defense, and the kind of travel savvy that comes only from having booked thousands of trips.

In today’s global economy, it’s expected that businesses and their best people be available, in person, to their customers around the world. The National Business Travel Association (NBTA) estimates that its members manage and direct some $170 billion in travel expenditures annually. As travel approaches the top spot in many companies’ budgets, travel managers are moving to the front lines of cost control, becoming essential soldiers in the war on expenses. NBTA President and CEO Kevin Maguire notes that the rules of corporate travel have changed, creating increased complexity. And the skills of travel managers themselves have evolved appropriately. “We’re in a time when creativity to solve problems is at its peak,” he says. And ultimately that’s what corporate travel managers do: solve problems.

Rescue, Incorporated

Katina Tryforos, travel manager for airline programs and customer service at Deloitte LLP and its subsidiaries, has handled her share of challenges. In addition to negotiating contracts with airlines and maintaining relationships with important suppliers, she also plays an essential “customer service” role for Deloitte executives on the road. “At any point in time I may be called upon to help an executive find the laptop he left behind, explain why one traveler’s ticket costs more than his neighbor’s, or help clear a seat on a flight that was totally sold out,” Tryforos says.

With thousands of Deloitte’s 40,000 professionals on the go annually, all booking their travel through the company’s travel agency and online booking tool, hers is much more than a nine-to-five job. But Tryforos is the first to cite the rewards, whether that means assisting a busy VIP or helping an executive get back from a trip in time for his daughter’s ballet recital. Plus, she knows that by easing the process, she is improving productivity and, ultimately, the company’s bottom line.

Economists and Sommeliers

According to Maguire, having a managed travel program can easily save an organization up to 15 percent in overall travel costs. He notes that a manager who is actively involved with hotel and transportation vendors can smooth the way for both sides and save a bundle.

Pascal Struyve, global director of travel and meeting services for the air-conditioning manufacturer Trane Inc., agrees. Struyve, who is based in Brussels, leads a department that serves Trane offices in 40 countries. He sees himself as a travel sommelier — tracking down the best travel experience for the lowest possible cost.

While corporate travel managers work hard for their own organizations, they also help their suppliers, including Continental. Both Tryforos and Struyve serve on the Continental Corporate Advisory Board, providing valuable feedback and suggestions to help the airline improve service. “Being part of such a think tank helps create value for both parties,” Struyve says. “Therefore, it makes the partnership between customer and supplier stronger.”

You don’t know until you ask, adds Tryforos. “Whenever I request feedback from my travel experts — the road warriors — I know that it helps Continental develop strategies that will make a positive impact.”