Stephen M. Ross School of Business :: University of Michigan

research focus

Social Networks to Social Dollars
DECEMBER 20, 2011

Americans today spend more of their time online interacting with social networks and blogs than any other activity. The question for companies is how best to connect with the market using social media. Through third-party sites like Facebook? Or via their own branded networks? New research from marketing professor Puneet Manchanda suggests companies that create their own online communities get a quick and significant return on their investment. These firms also maximize engagement with customers and pick up valuable information that's harder to get through sites like Facebook.
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executive focus

Mind Over Marketing
JANUARY 10, 2012

Truly successful companies like Apple Inc. and the Procter & Gamble Co. go beyond market research, focus groups, and analytics to really understand their customers. But penetrating the mind of the consumer requires a step outside the functional parameters, says marketing professor John Branch. The most effective organizations ask probing questions about why customers behave the way they do, he says. In this Q&A, Branch explains how to build this kind of thinking into a company's culture. He brings his expertise to the Ross Executive Education course Business Acumen for High-Potential Executives, next offered March 27.
Read Q&A // Business Acumen for High-Potential Executives // More Executive Education

research focus

Being Happy at Work is Nice, But Thriving is Better and More Productive
JANUARY 19, 2012

While it may come as little surprise that happy employees are more productive, a high-performing workforce needs more than just a feeling of contentment. Workers need to thrive, says professor Gretchen Spreitzer. "We think of a thriving workforce as one in which employees are not just satisfied and productive but also engaged in creating the future—the company's and their own." The professor of management and organizations defines thriving employees as those with "a bit of an edge. They are highly energized, but they know how to avoid burnout." In a recent study published in Harvard Business Review, Spreitzer and her co-authors demostrate that employees with vitality and opportunities for learning perform better, are more committed to their jobs, and miss less work.
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case study

Investing in Impact: Making the Case for Patient Capital
JANUARY 11, 2012

Creating social impact through business requires more than money, laws, and market focus. It requires all of the above. But this nascent sector, which seeks to redefine the black-and-white bottom line, faces unique challenges in the finance community. How to raise capital? How to measure social impact? How to value an intangible return? Those issues, and methods to deal with them, drive the case study "Good Capital and the Emergence of the Social Capital Market," supervised by finance professor Gautam Kaul and written by Lauren Foukes, BBA '06/MBA '12.
Read Article // Good Capital and the Emergence of the Social Capital Market (Click "Inspection Copy" for Free Case) // More Case Studies

commentary

A Free Lunch in a Perfect Storm
JANUARY 3, 2012

Investors fastened their seatbelts for a bumpy ride in 2011, navigating existential issues of grave concern. Some feared the collapse of the euro. Others worried about European sovereign debt, bank defaults, and a possible global depression. The U.S. economy offered surprising bright spots, despite the stormy outlook. Both volatility and correlations went up. In the following commentary, finance professor Nejat Seyhun reveals some excellent risk management opportunities on the horizon.
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research focus

Illegal Backdating: Small Firms Get a Free Pass
NOVEMBER 17, 2011

Smaller companies are more likely than larger firms to commit illegal backdating of executive stock options but are less likely to be punished, according to new research by professors Cindy Schipani, M.P. Narayanan, and Nejat Seyhun. "Our results show that small firms, although not exempted from regulation prohibiting undisclosed backdating and no less culpable than large firms, have been spared the bulk of law enforcement," Schipani says.
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research focus

How to Win the War on Credit Card Debt
NOVEMBER 28, 2011

The typical American consumer holds multiple credit cards with an average balance of more than $1,000 per card. So how to repay them? Common wisdom and advice from personal finance gurus suggests paying off the smaller debt first, regardless of the interest rate, to get a quick win. But new research from marketing professor Scott Rick shows this approach makes it harder to dig out of credit card debt. Paying off the smaller debt is such an ingrained human bias that consumers are likely to continue the method even when it's not optimal. The study has implications for consumers, banks that issue credit cards, and policymakers.
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your turn

If you have a question or topic you’d like to see addressed in the next issue of Ross Thought in Action, email us at rossthought@umich.edu.