Identical Twins: George T. Shaheen, Management Consultant and Executive and Gerald L. Shaheen, Executive

Transcription

1 Identical Twins: George T. Shaheen, Management Consultant and Executive and Gerald L. Shaheen, Executive I. George: Business Achievements II. III. IV. Jerry: Business Achievements Family The Brothers Shaheen/Grade/High School Education/Elmwood V. College Education, Et Al. VI. VII. VIII. IX. The Identical Twins: Mirror Image Jerry. Caterpillar George: Anderson, Et Al. WebVan: Harvard Business School Study , Andrew Mcafee X. Thinking, Fast and Slow: Daniel Kahneman (2014)

2 I. George Business Achievements. A. Former Chairman/CEO: Anderson Consulting; 30 years. B. Former President/CEO: WebVan. C. Board of Advisors: Kellogg School, Northwestern University. D. Trustee: Bradley University. E. Boards: Business /7 Customer, Network Appliance, newscale, Inc., Siebel Systems, think3, WebVan Group, Inc., Closedloop Solutions. 1

3 II. Jerry: Business Achievements. A. Caterpillar, Inc.: from 1967 to 2008/40 years. 1. Staff assistant 2. Group President: 12,000 employees. 3. VP/Caterpillar overseas: Europe, Africa, Middle East and former Soviet Union. B. Boards. 1. Past chairman of the US Chamber of Commerce. 2. Ford, AGCO Corp. 1, lead director, Aquila, UtiliCorp United, Association of Equipment Manufacturers, Mineral Information Institute. 3. Charitable: OSF, National MS Society, Peoria Next. 1 AGCO is a global leader focused on the design, manufacture and distribution of agricultural machinery. It supports more productive farming through a full line of tractors, combines, hay tools, sprayers, forage equipment, tillage, implements, grain storage and protein production systems, as well as related replacement parts. 2

4 III. Family. A. Louis and Charlotte Shaheen (age 96)/Polish and Lebanese. 1. Elmwood, Illinois: Grocery store//bowling alley. B. Children. 1. Charlotte Inskeep: George: 1944, plus 15 minutes. a. Darlene. 3. Jerry: (1) Son/Accenture. (2) Daughter/4 children. a. Pam Cuthbert. 4. Work experience. (1) 3 daughters: Chicago/pharmacy major. a. Meat cutting, stocking shelves, unloading trucks, sorting potatoes. b. Corn tassels, bean fields, bailed hay/store. 3

5 IV. The Brothers Shaheen: Grade/High School Education/Elmwood. A. Elmwood High School. 1. Class size: Band: Flute and Clarinet. 3. Football, baseball, basketball. 4. Split scholarship. B. Teachers. 1. First Grade, Miss Eckstrand. 2. Roma Shively. 3. Latin teacher, Mrs. Monroe. C. Memorable experiences. 1. Tap dancing/sister/canton/baton lessons. 2. Noon whistle. 3. Elmwood Community band. 4. Santa Claus parade. 5. Movie theater: 25 cents/ticket, popcorn and bubble gum. 4

6 V. College Education, Et Al. A. Bradley University: BBA marketing (1966)/MBA (1968). B. Sigma Nu: rotating presidencies, pledge trainer. C. Jerry: Tuck Executive Program, Dartmouth College (1968). 5

7 VI. The Identical Twins: Mirror Image. A. Consistent patterns. 1. Education. 2. Friendship. 3. Business. B. Divergent patterns. 1. Jerry: Caterpillar from inception to retirement. 2. George. a. Arthur Anderson. b. Anderson Consulting. c. WebVan. 6

8 VII. Jerry: Caterpillar. A. Market capitalization: $68 billion. B. Revenues: $55.7 billion. C. Product lines. D. Number of employees: 116,579. 7

9 VIII. George: Anderson, et al. A. Accenture f/k/a Anderson Consulting years/numerous Fortune 500 clients. 2. Mission: critical systems. B. Anderson: The journey. 1. Ended August 7, 2000 a. $10 billion revenues b. $1 million arbitrator s decision vs. $14.6 billion/$7.7 million for each 1,900 equity partners vs. $1 billion, less than $600, George s role: arbitration victory/accenture. 3. Enron scandal: October 2001/defacto dissolution of Arthur Anderson. C. Webvan. 1. Louis Borders/MIT, Math/initial funding a. Louis, I think this is going to be a billion dollar company. Borders had responded, Naw, it s going to be $10 billion. Or zero. b. Experience had proved Borders correct, but certainly not in the way he and his colleagues had hoped. 8

10 IX. WebVan: Harvard Business School Study , Andrew Mcafee. A. Overview. 1. High point: best capitalized on-line grocer at $800 million raised from investors/ipo. 2. Low point: July 9, 2001: 18 months, doors closed. 3. Louis Borders/MIT math/the Borders Group. B. George. 1. September 1999/CEO of Anderson Consulting, world s largest consulting firm; $10 million bonus/11 months, plus venture investments pay out. 2. WebVan compensation. a. $500,000/1/9 th of Anderson Consulting. b million shares, plus 15 million options. c. Potential stake: $100 million. 3. WebVan executives recruited. a. Goldman Sachs & Co, Oracle Corporation, Federal Express, American Stores Company, Marriott International and General Electric. b. David Beirne/Benchmark Capital/first financier: This could be the biggest company to come out of Silicon Valley. 9

11 X. Thinking, Fast and Slow: Daniel Kahneman (2014). A. Dan Kahneman. 1. Nobel Prize in economics Professor of psychology emeritus: Princeton. B. Overview. 1. System 1: think fast (2 + 2)/first impressions, intuition. 2. System 2: think slow (67 x 97)/analysis/mental effort. C. Personality: the entrepreneur. 1. Chance of small business survival for 5 years: 35%. a. Estimate of chances for success: 60%/200% of reality. b. 81%/success at 7 out of 10/35% failure zero. c. Vancouver Island/deserted motel/alberta school teachers/cheap 6 or 7 prior failures. 2. Cognitive ease/bias. 3. This is a case of overconfidence. They seem to believe they know more than they actually do know. D. Risk of loss/regret avoidance. 1. Good: from $100,000 to $150, Very bad: from $150,000 to $100,000: 200%/status quo/risk averse. Y:\19\ \Shaheen\Executive Summary.doc 10