La Petite Américaine

My sweet friend Katherine recently launched her own sweet treat catering company called La Petite Americaine.   I met her originally through the Junior League of London and have had a chance to not only taste her delicious cakes but hear her story.

Katherine is no ordinary baker.  She takes classic and vintage recipes and puts her twist to them.  And, she's got the passion to back up her talent.  I remember sampling one of her cakes that had a jam filling.  Normally, I avoid cakes that have jam in them, but boy howdy, she made me a believer.  I don't remember the exact details, but Katherine provided a copious description of the ingredients she used and why she used them the way she did to make the cake moist.

One of my recent favorite quotes comes from one of my business school professors and goes something like "Great things happen when ordinary people become irrationally obsessed with something."  Katherine has put her heart and soul into her business with attention to the smallest of details.

If you're in London and find yourself needing to cater desserts for a party or event or just want to treat yourself, please check out La Petite Americaine.  Katherine will take good care of you. :)

http://www.lapetiteamericaine.co.uk/

Payal Style

A few years ago, I had the opportunity to meet the famous and highly regarded Mrs. Moneypenny (her real name is Heather) at a TEDx event in London.   I was still new to Britain, without a television, and  preferred to read the WSJ over the FT each morning, so I wasn't aware of her celebrity at the time.  In any case, I was able to impress her unknowingly with my TED talk, and recently she was very generous in offering me some advice as I'm hunting for the right next career move.   I feel very lucky that I had that privilege, and this blog post is to share some of the privilege to the 5 people that actually read this blog (haha).   It's based on some thoughts I stewed over after reading Mrs. Moneypenny's Careers Advice for Ambitious Women and my own operating strategies of being a woman in a man's world.   Everyone needs to develop their own "style" taking things that work for them and borrowing ideas from others.  This is my "Payal style".

Confidence matters.  Alot.  Men tend to carry themselves with more confidence than women.  I don't know precisely why, but from my sample of classmates, friends, and co-workers, it's clear to see.  This confidence thing is an uphill battle I'll likely face the majority of my career.  But, at least I'm more aware of it, and can work to boost it in situations that matter.   Saw this a few weeks ago on Pinterest, and it's my new motto.

Theory #1.  I have a theory that you're an average of the 5 people you hang out the most with.  The company you keep speaks of you as well, so make sure you surround yourself and spend time with people whose values are similar to your own and will make you a better person.

Accept that life's not fair.  In 2010, a report was published by Huran listing the top 20 self-made women billionaires.  11 out of the 20 were from China.  There are a couple of contributing factors including high GDP growth in China, a culture that values ambition and hard work, and one special thing that I hadn't thought about before: cheap and stigma free childcare.  In America, it's much more difficult to outsource your home life, and I for one wouldn't ever want to.   That means I'm going to have to dial down my career at some point.

Be gracious.  One of my favorite Directors that I worked with is a woman named Courtney.  She once paraphrased a quote (I think by Laura Bush?) that has always stuck with me, and something I try to live my life by.  Forgive the inaccurateness of it, but it goes something like "True grace is making anyone, no matter what stage of life they're in, feel comfortable."

Everyone has to eat.  As a sophomore at Texas A&M, I was a student leader/mentor in a prestigious freshmen leadership organization called ASSIST.   I had 64 freshmen that I looked after, helped, and invested time in so that they would not only have a great college experience but also grow as leaders.  This was a life changing experience for me (and alot of fun), but it was an incredible time suck.  A guy in the class ahead of me named Brian gave some advice over a campfire handover session that has always stuck with me.  He said that while this experience would be incredibly time consuming for me the following year, remember that everyone has to eat, exercise, study, shop, do laundry, etc.  And, you should take others to do those things with you.  I've found this advice to be incredibly effective for me over the years.  In college, I ended up taking freshmen to go to the grocery store with me, go run around campus, or spend evenings in the library together.  What we did mattered less than the fact that I wanted to spend time and invest in them. Over the years, I've adapted this to my professional and grad student life.   I think it also brings a sense of genuineness and realness to relationships.  While I do enjoy going out to a fancy cocktail lounge or club in London, sometimes I'd much rather go explore apartments or help a friend prepare for a salary negotiation.

Get your rear in gear.  And go join a gym or sports team.  Physical fitness makes me feel better and is an endorphin rush.  Going for a run is how I de-stress and think about things.  And, my new favorite fitness programme CrossFit also helps build confidence and gives me a sense of community.  I feel all women should carve out at least 3 hours a week for physical activity.

Read something.  All. The. Time.  I have very low tolerance for people who don't read.  I'm busy, but I always have a book (fiction and non-fiction).  Reading helps me continue learning and "escape".  I think it also gives me interesting things to add to conversations.  I love trading book recommendations with friends.

Pay it forward.  I'm blessed to have a number of champions and mentors that have watched out for me over the years.  I can never repay them for the profound impact they've had on me, but I can pay it forward to the next generation.  Mrs. Moneypenny had a great saying for this targeted at females, "There is a special place in hell for women who don't help other women." Amen, sister.

Be proactive.  An incredible Managing Director I used to work with named Chuck mentioned something to me in my first month working out of college that has always stuck.  He said that I should be proactive in managing relationships with professional colleagues.  In his words, "The relationship has to be there before you need it."

Accept that men will not cross-stitch.  Some of my hobbies like painting and cross-stitching are very girly.  No man will ever want to do those things as a company outing or social event.  Develop (or at least attempt to develop) an interest in their hobbies.  It turns out I actually love playing poker, and I'm glad I learned the game in business school while playing with a good group of friends in a weekly small buy-in game.   I suck at golf (and managed to hit my study group mate Pete in the face with a golf club...not my finest hour), but eventually I'll get there and progress past the driving range.  I've always loved American football and joined my business school classmates in a fantasy football league this year.  My good buddy Sheldon (aka Mr. Whippy) came up with this great idea as a mechanism for us to all keep in touch given that we're spread over several continents.  It's been great to play fantasy football with them (and I have a great team that is dominating the league!).  They've been very accepting of me being the only female in our league too.  I think women sometimes play the "they won't accept me in their realm" card too hastily.

Ask for favors. I learned this in my Paths to Power class (GREAT class!) at London Business School.  Men are much more comfortable and willing to ask for favors, negotiate salaries, request special treatment, etc.  Women need to do this too (in our own unique ways).  We played a game in Paths to Power that has always stuck.  Essentially, we were put into breakout rooms with 10 people.  Each person wrote two things they needed help with on Post Its and then placed them on the outline of a giant circle drawn on a white board.  The Post Its had everything from requests for interview help to places to live to asking for a coffee during the break.  The students then drew lines from their names in the center to those they could help.  Once all the Post Its were cleared off, you could see the end result was a giant web.  Humans systematically underestimate others' willingness to help, AND we underestimate the happiness that performing favors gives them.

Know the PIE equation.  I went to a fabulous London Business School / Committee of 200 conference recently.   An accomplished fellow woman from the South named Tanya Fratto mentioned something to me that has stuck.  She had a very distinguished career at GE and told us how GE folks use the PIE equation for career progression.  Performance. Image. Exposure.  Each is equally important, and women should not only focus on the P.  Performance will not take you to the top, and the sooner females become comfortable playing organizational politics, the better.  Also, they can demonstrate organizational savviness in the their own unique way.  Tanya gave the anecdote of how a macho man questioned her ability to turnaround a GE plant in small town America.  Tanya coyly remarked that she was selected because she knew how to shoot guns and drove an F-250.   When put into situations like that, women can either get defensive and go into heinous bitch mode or react in a lighthearted way and win people over.

You cannot have your cake and eat it too.  I've always strived to be a renaissance woman of sorts, and I have an unrealistic belief that I'll be able to balance a career, family, personal development, etc.  Mrs. Moneypenny drives home this point that you can't have it all.  List your priorities and make decisions based on them.  You will have to say "no" and disappoint others.  I believe there's alot of merit in this, but it's incredibly difficult for me to do. 

CrossFit Day 1

So, I decided to join CrossFit here in London to challenge myself recently.

What the heck is CrossFit?  It's a fitness craze from the US that is going global.  I had heard about it from my friend Holly in 2010 just as I was leaving Texas.  All my young friends were joining these gyms where you would go to a glorified warehouse to do a pre-determined intense strength and conditioning workout of the day (WOD).   The equipment isn't the fancy stuff you find in upscale gym clubs.  At CrossFit, you'll find free weights, bars, kettlebells, balls, rigs, rings, cables...the basics.  And, you'll find highly skilled trainers who keep you accountable and motivate you.  It's open to people of all fitness levels (because each exercise can be modified), but it is not for the faint of heart.

Through my friend Phil, I found out that CrossFit had opened in London.  There are only a handful of clubs right now.  The one closest to me (CrossFit Central London) has a huge waiting list and not the best customer service (they don't answer the phone or call you back).  And the woman I finally got ahold of was rude to me when I inquired how to get started and asked for a more affordable way to go through the fundamentals course (vs. the 180 GBP option she gave me!!).  So, I ventured a bit farther to CrossFit Evolving in Islington area.  I'm so happy I did.  The owner Scott was very welcoming when I called (he answered).  He said I could pop by the next day and get started right away. 

My fabulous trainer today was Mark.  AMAZING guy who teaches good form, is fun, and motivates you to complete the exercises to the best of your ability.   There were alot of squats and deadlifts today...quads and hamstrings will feel it tomorrow.  Can't wait for my next session!!

Overhead squats, 8/25/2012

I'm a Prim

Yesterday, I went on a five hour hike of Epping Forest in the UK.  (I can now say I've seen the end of the Central line).  Our group of five MBAs had a great time hiking and faffing around.

One reason time flew was the GREAT game we played.  It's called "Who Would You Be in The Hunger Games?"  We went around nominating, debating, laughing, etc. with what we came up with.  Good game to play in large groups of people where everyone knows everyone's character.  We then extended this to Harry Potter and Disney characters.

I found this great online quiz that tells you who you'd be in the the Hunger Games.

http://www.proprofs.com/quiz-school/story.php?title=what-hunger-games-character-are-you

My friends thought I'd be Rue or Prim (totally not a career).  The quiz said I'd be Prim.  I'll agree :)

Primrose Everdeen Prim is said to have a face as pure as a raindrop. As pure in fact as the primrose she was named after. Like Prim you are very reliant on other people although you do try your hardest to stand out and be unique. Wherever you go you get smiles all around and people love the sight of you. You try your best to help out wherever you go and you use your beautiful smile to cheer people up.  And finally, here's my favorite dress-up photo from the day.  A day in the life of the Tudors.

Tragedy and Hope from College Station, Texas

Living on the other side of the giant pond that is the Atlantic Ocean, I have to play detective every now and then.  I'm an active user of Facebook (not in a creepy stalker way) because it helps me keep up with the locus of my network in the US as well as my classmates who are scattering to literally every corner of the world.  I've noticed as an ex-pat that people will actively share good news (e.g. engagements, weddings, births) but rarely the bad news (e.g. divorce, sickness, death).  So, I have to passively put the pieces together and do some lateral thinking.   And, it matters because people matter to me.  

Last week, there was a shooting tragedy in College Station, Texas.  The incident was not related to Texas A&M University (I can't even imagine a student shooter ever stepping foot on campus).  My understanding is that a law enforcement officer had delivered a subpoena to appear in court for unpaid rent to the shooter at his home near the university campus, just south of Kyle Field.  This crazy man ended up opening fire and shot 65 rounds (!), ultimately killing the law enforcement officer and injuring others.  I don't understand why or how anyone could do this.  People from my beloved alma mater have shown an outpouring of love and helped to pick up the pieces.  Over 3,000 people attended the funeral service for the slain law enforcement officer.  

Another example hits closer to home and is the inspiration for this blog post.  I'm blessed to be part of two A&M families.  The first is Texas A&M University.  The second is Alvarez & Marsal, my former employer.  Using my Sherlock Holmes skills, I found out that one of the people injured in this shooting was the mother of a summer intern at Alvarez & Marsal.  Barbara Holdsworth was helping her daughter move into a home for her senior year at Texas A&M.   As an innocent bystander and out of nowhere, Barbara was shot multiple times through the back and was rushed to the nearest hospital to undergo surgery.  She is in critical care at the moment.  

Friends and family have mobilized to raise money for Barbara's medical expenses.  As a single mother of two children, I can't imagine the significant burden she must now be facing given the cost of healthcare in the US. I don't know who and how many people actually read this blog.  My hope is that some of you would consider donating to this fund for Barbara.  http://www.youcaring.com/fundraiser_details?fundraiser_id=7625&url=barb#.UC0YIJamvJQ.facebook

Reading the comments on the "Supporters" tab reminds me of the power of the human spirit.

I hope one day the US will come up with some sensible form of gun control legislation and insurance regulation to cover mental health because this type of event happens far too often.  In London, stories like this don't happen because quite frankly people don't own guns.  I respect the Bill of Rights and believe in individual liberties as much as the next American; however, was it really necessary for this shooter to own a handgun, a semi-automatic sniper rifle, an assault rifle, and a bolt-action rifle?  

Busyness

I operate at a high level and even faster pace.  I always have and likely always will.  Knowing thyself, a recent pin on my fab Pinterest boards caught my eye.   

There's some truth in it.  Being "busy" for the sake of being "busy" merits little respect.  In my opinion, busyness in the pursuit of extraordinary results or impact on lives of others does.

And know what your limit is.  My tolerance is on the higher end.  A few months ago, I tuned into the first ever TEDxWallStreet and saw CNBC host Jim Cramer speak.   He is an example of the extreme.  Unfortunately, I couldn't find a link to his TED talk (which was great!).  If you ever do get a chance, I highly recommend watching it.  I enjoy watching his show Mad Money every now and then and respect his platform stance of having individuals save, do their homework, and invest for their own future (since Social Security isn't going to be there for my generation likely).   Even though his routine is awe-inspiring, I know I could never do it.  Just watching his TED talk made me tired.  

Thankful for Firsts

The point of this series of blog posts is to highlight some of the things I'm thankful for these past two years and hopefully find some reason/purpose/"so what" for all this gratitude.

When I think back to my London years, I generally remember all the new things I've seen, done, tasted, etc. And these "firsts" are memories I treasure.  Here's a sample...

First MBA rugby world championship tour.  This was one of the FUNNEST weeks I've had this year.  Here's a group of my stream (B)est teammates...love these girls.

First half marathon.  Ran the Edinburgh race with my AMAZING friend Joyce in 2:21:40.  We've worked together quite a bit here in London.  I feel like we've been through it all, to hell and back.  And, it was great to symbolically cross the finish line with her.  This was such a happy moment at the end of such a happy Scotland trip with friends.

First Pimms.  One of my new favorite pasttimes is meeting up with this awesome chick Phillipa at the Windsor for an afternoon Pimms.  So British.

First costume competition.  In our first year, a group of ~10 stream B classmates decided to dress up as Charlie Chaplins for a Halloween party where there was a group costume competition.   We chose this costume because it was relatively easy to put together.  And, it was the first of many costume parties in business school.  I don't know what I'm going to do with this suitcase full of random costumes and accessories if/when I move...

First time organizing a hen do (a.k.a. bachellorette party).  Our fearless captain Carolyn (a.k.a. de Vil) got hitched this year.  And the women's rugby team couldn't not celebrate with her before the big day.  Lynnie (a.k.a Casper) and I put together an...err..."special" post match social at the Windsor.   That was a day never to forget.  Like our tour motto, what happens on tour stays on tour, I've got to keep mum about the shenanigans.  However, I will say I haven't laughed so hard or much in a very very long time.

First trip to Paris.  In all my previous travels, I had always avoided Paris and really the whole country of France.  The truth is that I wanted a boy to take me there.  Well, that wasn't going to happen anytime soon, and my dear friend Lis was working there in the fall of 2010 and invited me to spend a weekend with her.   And, it was love at first sight.  Any chance I get to go to this charming city, I'll jump at.  Here's a photo of us in front of one of the many gorgeous buildings and parks Paris has.  J'adore Paris!

First time to cut loose.  Our recent Scotland trip was one of my favorite trips I've had the past two years (and I've traveled alot).  I think it was because it was such a great group of people, and I decided to leave my work behind to enjoy the weather and company.  Boom.

First Thanksgiving abroad.  Even when you're away from home, you can find a group of people to celebrate the holidays with.

First Indian wedding abroad.  My mom recently came to London, and we traveled to a family friend's wedding in Birmingham.  It was good to get out of student mode and do some normal people activities.  This is a photo of us from one of the ceremonies.  First time I've worn a sari too.

First Aggie Muster abroad.  Who knew there was such a large Aggie community in London?!  I met some great folks, and it was great to see maroon, boots, and rings!

First TED conference.  I cannot believe I spoke at a TED conference (dream come true) with some amazing classmates and fellow speakers.  Such a happy day.

First Pride & Prejudice moment.  Like most girls, I have a thing for Jane Austen.  Our trip to Yorkshire / Derbyshire was one of the MANY great UK and international trips I've taken.  This photo is from Chatsworth House where Pride & Prejudice was filmed.  Aww.

First time leading a group of 35 students to India.  This India trek last December was a highlight of my time in school.  I met so many great people, worked with my awesome partner Sherene, and got to show others the greatness of India.

First time skiing.  The Swiss Alps aren't a bad place to learn.  Though I will need to take more lessons to truly pick this sport up.

First time bartending.  On Thursdays, we have a weekly (free) schoolwide happy hour.    I thought about taking bartending classes in Houston years ago, but I'm glad I didn't.  I picked it up here in London.  Here's a photo with Kieran (a.k.a. Moses) who taught me how to pour a beer and the fabulous Dina (a.k.a. Winner).

First alter ego.  Nicknames are a big deal here.  And mine is "Pi".   Long story of how I got it, and it's one of the more unique ones that's been given.  These nicknames that we give each other are a great way to quickly get to know each other and bond.   And some of them are SO funny.

Thankful for Interesting Conversations

I graduate from London Business School on Friday July 13 (yes, I'm wondering why that ominous date was chosen).  The most common question I've gotten over the past two years is along the lines of "what are you doing afterwards?"  And there's a subtle but overemphasized presumption in all of this that business school is solely a means to an end.  Yes, it is a great way to transition careers, advance in your current discipline, start a new venture later, etc.   But, for me, the point was rarely (close to never) about the afterwards part because I saw it as a truly transformational life experience.  One of my former clients (a great guy who got his MBA from Stanford) said this to me way back, and it's proven right (even for the cynical ones in my class).  I learned frameworks, how to articulate points, appreciate diversity and differences, question everything, realize there can be multiple "right" answers based on frame of "right", etc.   I also believe I'll be a better leader, manager, wife, mother, patron, volunteer, advisor, and friend because of this experience.

I go into nostalgic mode often these days as I'm sad to see these amazing two years end.  I am SO thankful for this experience that it brings me close to tears, and I don't know what to do with all of this thankfulness.  Since I've fallen off the cliff in blogging lately, I'm going to use this blog to explore that.  There has to be a "so what" or logical next step for me given abundance of gratitude.  I can give back to LBS with my time and resources later on.  But, is that it?

Reason #1 to be thankful: Interesting conversations

I was invited to a dinner at the Dean's home this evening and Terry Neill was one of the guests of honor.  Mr. Neill graduated from LBS in the 3rd MBA (formerly MSc) class and went on to join Anderson Consulting where he helped build the company from 300 people to +200,000 plus as Chairman of Anderson/Accenture.   He is a GREAT guy, and we had an interesting, interactive discussion with him + 10 students.  Some of the stickier things that I learned:

-Stanford professor Ray Levitt once said people don't change for rational reasons but rather emotional reasons (love, fear, hate, worry, etc.).  I don't quite agree with it completely but do think people are more likely to change and do so more quickly if there is an emotional hook.  Ideally, the rational arguments are packaged nicely with the emotional messaging.   There are so many examples I can think of that back this up from my Class Gift 2012 campaign...

-Accenture has two projects that are each worth +$1 billion.  One is helping the US Dept. of Homeland Security setup their systems and the other is with an energy company.  (Aside...hope my taxpayer dollars are  being used wisely.)   We now have organizations willing to spend a BILLION dollars to change systems/technology but not willing to make similar investments in people.  And people are infinitisimally more complex that binary computers.   Think about it.

-Notre Dame legendary coach Lou Holtz was giving a speech to business leaders at Harvard Business School once, and he was asked "How do you motivate your players each Saturday?"  Holtz thought a second and then replied, "My job is to not demotivate them on game day."   He then drove home the point to the corporate executives in the audience by asking them how many of their employees are motivated on day 1 of the job and whether they are still motivated.  Most aren't, and company leaders are responsible for this loss in motivation.  And, Terry argued (and I agree) that lack of trust is a driving force in this.

-A question to ponder:  Is human behavior predictable?   Some say yes...doesn't a stadium of football fans go crazy in sync when a goal is scored?  At the same time, I can think of so many situations where people react to situations in different ways based on their background, motivations, etc.   There's validity in both these points, and I feel the truth is in the middle.  I think there are certain universal human reactions to events and generalizations on how different people (ex. nationalities) will react to situations and make decisions.  Good managers can identify these broad buckets of predictable behavior.  Great managers are able to take this understanding a step further and can understand/read people within these categories.

-Employees must understand the customer and know "why" they are important.  Terry brought up an example of an Accenture client engagement with McDonald's many years ago.  The average tenure of a burger flipper in NYC was 32 days.  (Whoa.)   Some forward thinking McDonald's managers knew they had to bring some meaning to the daily task of burger flipping, so they invested in educating these employees on the customers - who they are, the economics of the business, best practices, etc.  Eventually, average burger flipper tenure rose to 4.5 years.  People (and customers) don't care about what you do as a company, they care about the why.

-There are 15 million Jews in the world.  That number seems surprisingly low to me given how strong, pervasive, and influential they are globally.   All over, most Jews have rich traditions, generally consistent behaviors, much recognition, etc.  Jewishness transcends the small (national) borders of Israel better than any other religion.  This factoid came up as we were discussing this trend of people identifying more with lifestyles than nationalities...call them glomads ("global nomads").

I had no idea what this evening was going to entail.  I thought it was just drinks but then found out it was a formal dinner event.  It was a lovely evening, and I came home energized after the interesting conversation with such an accomplished, curious, diverse, and helpful group of people that I feel blessed to have in my personal community.

Softly call the Muster...

January 1. February 14.  July 4. October 2.  November 29.  December 25. December 31.  These are important dates when it comes to holidays.  April 21 is another special day for all Aggies.  It's Muster.  

My good friend Merriam-Webster defines the word "muster" as "to cause to gather" or "convene".   It also is common in military speak.  I find the term to be elegantly perfect for this special Aggie tradition.   Here are a few photos from my first Muster in London.  It was good to see boots, rings, and maroon!

If I Had the Moolah...

I just finished taking a GREAT class called "Managing Sport & Entertainment" this spring.   Great guest speakers, topics, and cases that ran the gammut including Manchester United, Cirque du Soleil, Radiohead, NYC nightclubs, Broadway theater, YouTube, the book publishing industry, and much more.


If I had a couple hundred million dollars lying around, I'd invest in a sports franchise (though be a bit more price conscious than the likes of Magic Johnson recently).   Or an entertainment business (there is convergence). Sports franchises are full of passionate people who tend to make passionate decisions.  Take for example European football (whose revenues top those of the NFL, MLB, and NHL combined).  Even in the economic recession, there is no "revenue problem" for European football.  Fans will pinch pennies elsewhere before giving up on football.  Stadiums are sold out.  Lucrative media deals are struck year after year (plus you have new players like Al Jazeera who are just throwing money at it and driving up prices).  Teams have increasingly learned to monetize the brand with licensing deals.  And while all this money is coming in, there has been a wave of European football clubs going bankrupt (some are publicly listed) and others continuing to struggle financially year after year.   The virtuous cycle should be that money comes in, it's invested wisely on and off the pitch, more tickets sold, etc.  However, it's warped in the opposite direction for some clubs.  My hypothesis is that some of these football clubs (and other sports teams, in general) have passionate people making irrational decisions (record contracts given to players, bigger stadiums, etc.).   I feel there's a positive correlation between the sophistication of the team off the field and the sustainability of teams.    Seems ripe for some turnaround investors (and cash flows are more stable than you'd think).


Another story that stuck with me was that of Guy Lilberte, the founder of Cirque du Soleil.  Around each big top touring show Cirque has, there is a white picket fence.  Guy calls this his world when customers walk through this fence.  If you've ever been to a Cirque show, you know that it's an emotional roller coaster where you leave on a high.  Guy's purpose for starting Cirque was so that when people entered his world, they would forget the troubles and torments of their life and let him entertain and educate them on what is possible.  And then maybe, when they walk out of the picket fence, they will take a piece of his world with them.  The best entertainment businesses are driven by something other than profit.  I personally respect them for that and think that applies to most businesses in general.

Leaving on a Jet Plane

Yesterday, I attended a lunch & learn hosted by our London Business School Marketing Club (they do GREAT events).   The guest speaker was Rob Britton, a professor turned airline executive.  He spent over 20 years at American Airlines and left as Advisor to the Chairman.   In the 1970s, Rob helped launched AAdvantage, the first airline loyalty programme, and his seminar focused on the value of these frequent flyer programmes (the only marketing tactic that has really worked for airlines).

A few random factoids and musings I wrote down in my Moleskine about this challenging yet very interesting industry:
-There's significant spoilage by the very nature of the service.  Weak demand, stiff competition, overcapacity, etc. leads to empty seats.  A surprising 20% (!) of seats flew empty on flights last year in the United States.

-The airlines business has relatively low barriers to entry (not good from a firm standpoint).   And, on top of that there are high exit barriers.  New airlines seem to sprout up every year but think about how they don't go away as often.  Once an airline goes belly up, the assets (planes) are worth more cobbled together as a going concern than grounded separate planes.  And I don't imagine the secondary market for used (and many times old) aircraft is so great when the industry already has an overcapacity problem.

-The innovation in the industry has to come from customer experience (legroom, wifi, food, online distribution, etc.) and not the actual product or service (fast, long travel).  For over 30 years, most airplanes fly between 500-600 mph, which is slower than the speed of sound.  I don't quite understand all the physics behind it (need a Khan Academy talk!), but once a commercial jet breaks the speed of sound barrier, it becomes prohibitively expensive because of the amount of energy required.  More interesting info here: http://www.physicsforums.com/archive/index.php/t-173394.html

-Travelers prefer frequency to differentiation.  Boutique aspirants have tried to carve a niche in this space but fail every time.  Imagine a Goldman Sachs employee chooses to fly one of these high end airlines from NYC to London.   If and when a meeting runs over or there is bad weather, one of the legacy carriers could book him or her on the next flight out that day.  With a boutique airline, she or he may have to wait a day.  This resonated with me.  When I travel for work and return home, I want to get there NOW and will pay anything to make it happen.

-If you added up global airline profits throughout time, the sum is a loss.  That's not too surprising and could be used to call for shutdowns or thwarting of future investments.   However, I think airlines are similar to banks, they lubricate the rest of the global economy.  And thus, I foresee subsidization and loss minimizing policies for at least my lifetime.

Rob is a very entertaining and energetic speaker!   He is quite generous with his time too and does a circuit of top business schools each year.  Am going to solicit his help with an idea I came up with to see if British Airways or Lufthansa would be willing to give LBS Class Gift 2012 student donors the perk of airline status for a year.  I see it as a win-win-win marketing tactic for the airline, the school, and students.  Fingers crossed!

Don't be an Insider

"The real voyage of discovery consists not in seeking new landscapes but in having new eyes." -Marcel Proust

This French novelist was on to something with this quote.  One thing business school has taught me is that learning and problem solving aren't always necessarily about learning new things or seeing new problems.  Sometimes, it's about framing.  Or the content and delivery channel.  By this, I mean that alot of the learning in the past two years has come from cases (real experiences) and lively discussions.

One of the more interesting learning opportunities came about a week or so ago when convicted insider trader Garrett Bauer shared his story with students at London Business School and candidly took Q&A.   This event came from left field when Garrett contacted our PE & VC club and offered to do this.  I heard second-hand that the PE & VC club agreed to host this event because Garrett had similar other speaking engagements at US business schools and wanted to include us in the mix.

Essentially, Garrett was a day trader who used inside tips from a lawyer (his best friend) to make buy / sell decisions.  He did this for several years, and while it didn't always pay off, it doesn't change the fact that he acted on privileged and confidential information.

Garrett went into great detail on the information he got, the logistics of the scheme, how he got caught, and what it was like to be in prison.  He was tried in federal court, and it was there that he learned that his best friend ratted him out.  In a strategic move, Garrett plead guilty and was convicted.  He is now awaiting sentencing.  That is largely the decision of the federal judge who will give a sentence ranging from ~8-12 years based on the points accumulated from all the charges (insider trading, obstruction of justice from destroying a cell phone, and money laundering from using cash from an ATM to pay for insider tips).   Factors such as volunteer work, marital status and children, sickness, and amount of money recouped can influence the sentence given within the sentence guideline.   I don't believe Garrett is evil, and he's found an interesting way to use his time to teach others based on his experience and to also potentially lower his sentence.  He's also found the right audience with MBA students, and I believe he is sincere in his message of "it's just not worth it".   Not only for insider trading but also other "victimless crimes."

The Q&A lasted at least an hour.  The softball questions at first became a bit more candid and interesting as time passed.  I asked Garrett whether he had had a chance to talk to his best friend / insider trading accomplice since he was arrested.  He said that he had not and that his lawyer advised against it (because it would then lead to another type of charge added to his docket).  From what I could tell, he didn't show overt anger towards his friend for betraying him (surprising).  I certainly wouldn't be that forgiving.

The message of "it's not worth it" really came through.  (Not that I ever have or will user insider info).   From the way Garrett explained, I would never want to be the target of the federal prosecutors.  They make sure that they can win most cases they take to trial.  And many of the rules, precedents, and calculations are assymetric in favor of the feds.   He also did this for a decade, and didn't make that much (or any) money for many years at the beginning.   Plus, he made good money anyways.  Definitely not worth it.

Year of the Dragon

In January 2011, a few of my classmates decided to celebrate the New Year by jumping the fence and sneaking into Regents Park at night to light Chinese lanterns and toast with prosecco.

January 2012...we decide to make a tradition of it!  Our lanterns sailed much better this year given that it was much less windy (but equally cold!).   According to Chinese astrology, this is the year of the dragon, the mightiest of the signs.  Dragons are known for their dominance and ambition.  They live by their own rules and interestingly can feel unfilled and exhausted by their passions and enthusiasm.  I asked one of my Chinese friends how she traditionally celebrates Chinese New Year with her family.  Though different in specific traditions, there are striking similarities in how Western holidays are celebrated (great feasts, friends and family gathering, joyful greetings and optimism, parades, etc.).  I believe humans tend to overweigh the differences amongst cultures and discount the sameness.   This is an example.

I was curious to know what my Chinese zodiac sign is.  I was wanting some ferocious beast and was initially disappointed with the lackluster pig.  However, after actually reading about the character of pigs, I'm so happy I am one!!  Pigs are known for their diligence, compassion, and generosity.  They are giving souls (sometimes giving too much) and place a premium on honesty (which they expect to receive).  They have trouble asking for help (known pride issue), enjoy spending more than saving (ouch), and are astute bargain hunters (of course!).  Pigs can always be counted and are detail oriented.  And they enjoy opportunities that allow them to express their creativity.  I don't believe in astrology because I feel life circumstances and context (nurture) are as equally impactful as nature is in determining character.  However, it's hard for me to ignore how my Chinese zodiac sign perfectly nails qualities I aim for and am most proud of.   Just something to think about.

After our Chinese lanterns become specks of light in the distance and the bubbly was gone, we headed over to Berkeley Square.   My sweet friend Emily introduced me to this swanky area when we celebrated my birthday at Murano, an amazingly delicious Italian restaurant.  Another one of my friends ended up moving to this area and hosted a birthday gathering at The Only Running Footman (great pub on ground floor, two additional floors of fine dining, and an awesome chef's kitchen lounge on top floor).  If and when I land a job in London, I'm determined to settle in Berkeley Square :)

Pictures of the evening below.

MAXimum Fun

The holidays are always spent in Texas.  Always.

I spent a few days in Houston this December.  And what trip to H-town wouldn't be complete without going to Max's Wine Dive?  Things (people) change but also stay the same.  Here are some photos from the night taken with my new 35 mm prime lens (f/1.8) for my Nikon D5000.  This lens was recommended to me by three different friends plus Ken Rockwell's  website...totally worth it! 

Blast from the past.  LOVED seeing Menges (Laura) and Zappy (Holly)

 Me with the McMasters...can't wait for them to come back to London.  It's their turn :)

Reese and me reminiscing upon ex-pat life and Speed Scrabble

And, finally, being in Texas means that I can watch TV shows on demand with big HD TV's commonly found in homes.  My sister recommended the new TV show called Once Upon a Time to Me.  I disregarded it at the beginning because I thought it was insane to have a show about fairy tales.  Then, I learned the writers of LOST wrote this series too.  You can definitely tell because Once Upon a Time is all about the characters of the show and viewing their past to see how they became the way they are.  Watch in on Sunday nights!  Though I did watch ~8 episodes via Hulu on the TV.  It was a great 5 hours!