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| FROM Kellogg MBA Blog: Research. Design. Build. — The power of design thinking |
![]() By Vandana Sathpathy As I hunched over my bathroom sink for the umpteenth time recently, I wondered why it was acceptable for most adults to bend over to about half our height multiple times a day. “Adjustable sinks – Why aren’t they a thing yet?” I thought to myself. I then went online to dig deeper and research the same question. This is the effect internalizing design thinking has had on me. I no longer accept the status quo because it exists; I question how a product might be if I could design it on a blank canvas in a new, unbiased way that satisfies user needs. Kellogg’s Research-Design-Build class simplified the design thinking process into three major buckets: Research It is important to identify the right problem to solve. We learned we need to first recognize if there is a problem, and then define the scope of the problem. We don’t want to ask people outright what they want, because as Henry Ford said, “If I had asked my customers what they wanted, they would have said a faster horse.” Our class was asked to solve a problem, any problem, for Northwestern. And to do this, each team in our class spent two weeks on research — doing interviews with students and faculty, shadowing people, taking pictures and videos, and generally observing how people interacted with the Northwestern environment. Teams refined their research objectives and project focus over the course of those weeks based on some interesting, relevant and actionable (IRA) insights we derived from our user research. Design Once we had our problem statement and insights, it was time to start brainstorming and designing solutions. Each class was structured such that there would be a gallery walk where all teams presented their last week’s work to receive feedback from peers and professors, and in the remainder of the class we learned tactical tools and frameworks that would aid us in designing possible solutions. We used Post-its and sticky notes while brainstorming to record our ideas, and were open to moving those around or just discarding them and starting with a fresh board. We were encouraged to think beyond the obvious and to come up with ideas that pushed boundaries, were innovative and grounded in insights. We learned the “Yes, and” approach to idea generation. One of the first things Professor Greg Holderfield told us at the beginning of the class was: ‘Ideas are not precious. Experiment with them.” And that’s what we did during this phase. The focus was to generate lots of ideas and enjoy the process of idea generation. Build We were asked to evaluate and validate the ideas we generated during the Design phase. We thought about the desirability, feasibility and viability of our proposed concepts. Would our solution solve a problem for people? Would users want our product or solution? How easy is the solution to implement? Is it scalable? I was struck by the power of simple prototyping and the use of storyboards to tell a story and present an innovative solution instead of a PowerPoint presentation, and how much more interesting and compelling these presentations were. I have since used storyboards to present product concept ideas even in job interviews, and they were well received! —– In the second half of the course, our class had the opportunity to apply the design thinking frameworks we learned in the first five weeks to address problem statements set by a client — Protein Bar. It was challenging and exciting to visit different Protein Bar stores in Chicago, interview customers and staff and observe people’s in-store behavior to innovative solutions — rooted in insights — to the problem statements set by Protein Bar. Each team presented interesting new ideas and got feedback from Protein Bar executives who visited our class during the midway mark; this gave teams a chance to validate ideas and course correct if need be in preparation for the final. We presented our final solutions to Samir Wagle, the CEO/President of Protein Bar, and this was an invaluable exercise in bringing all we learned to life and pitching potential ideas to a top-level decision maker receptive to innovation. Overall, this was a course that validated my decision to apply to Kellogg’s MMM Program, and I know I will have the opportunity to apply this newly gained design thinking toolkit in my upcoming internship as well as my post-MBA endeavors. Learn more about Kellogg’s MMM program Vandana Sathpathy is a first-year MMM student from India who spends almost as much time traveling the world as she does at Kellogg. She has thoroughly explored both sides of the fence in the technology space, having worked at a startup as well as a large software services company. Filed under: Academics, Student Life Tagged: Design, design innovation, design thinking, experiential learning, Innovation, MMM, research-design-build |
| FROM Kellogg MBA Blog: A closer look into cash conversion cycles | MBA Learnings |
![]() Second-year student Rohan Rajiv is blogging once a week about important lessons he is learning at Kellogg. Read more of his posts here. Let’s imagine a company we’ll call Nile, Inc. Nile is a vegetable retailer who has the following metrics:
![]() Nile takes 20 days to convert inventory to cash – 10 days to convert it from inventory to a sale, and 10 more days to convert the sale to cash. However, since it takes 10 days to pay suppliers, we can now reduce the 20-day number to 10 days. These 10 days are Nile’s cash conversion cycle (CCC). The cash conversion cycle is an important idea since this means that Nile requires 10 days’ worth of working capital (Current Assets – Current Liabilities on the balance sheet) to keep its business solvent. Since, at any given point, Nile will require enough cash to support 10 days of operations, if it doesn’t have the cash itself, it will always need access to a revolving line of credit that can make sure the business runs. Reducing the CCC is an attractive prospect for most small businesses, as it means less dependence on external capital. It also reduces the working capital requirements of the firm. Amazon is an example of a firm that does an outstanding job with working capital management. ![]() As you can see, Amazon’s CCC is actually negative. This means that Amazon receives cash very quickly and turns over its inventory quickly, but takes much longer to pay its suppliers. The business is practically throwing off cash. Negative CCCs work well for growing businesses, but when businesses stop growing, these cycles can be painful since it means you have to pay your suppliers greater amounts than you make. A big thanks to Professor Efraim Benmelech and my Financial Decisions course for deepening my understanding of working capital and CCCs! Rohan Rajiv is a second-year student in Kellogg’s Full-Time Two-Year Program. Prior to Kellogg he worked as a consultant serving clients across 14 countries in Europe, Asia, Australia and South America. He interned at LinkedIn in Business Operations and will be heading back to LinkedIn full-time after he graduates in June 2016. He blogs a learning every day, including his MBA Learnings series, on www.ALearningaDay.com. Filed under: Academics, Student Life, Uncategorized Tagged: academics, MBA Learnings |
| FROM Kellogg MBA Blog: A closer look at cash conversion cycles | MBA Learnings |
![]() Second-year student Rohan Rajiv is blogging once a week about important lessons he is learning at Kellogg. Read more of his posts here. Let’s imagine a company we’ll call Nile, Inc. Nile is a vegetable retailer who has the following metrics:
![]() Nile takes 20 days to convert inventory to cash – 10 days to convert it from inventory to a sale, and 10 more days to convert the sale to cash. However, since it takes 10 days to pay suppliers, we can now reduce the 20-day number to 10 days. These 10 days are Nile’s cash conversion cycle (CCC). The cash conversion cycle is an important idea since this means that Nile requires 10 days’ worth of working capital (Current Assets – Current Liabilities on the balance sheet) to keep its business solvent. Since, at any given point, Nile will require enough cash to support 10 days of operations, if it doesn’t have the cash itself, it will always need access to a revolving line of credit that can make sure the business runs. Reducing the CCC is an attractive prospect for most small businesses, as it means less dependence on external capital. It also reduces the working capital requirements of the firm. Amazon is an example of a firm that does an outstanding job with working capital management. ![]() As you can see, Amazon’s CCC is actually negative. This means that Amazon receives cash very quickly and turns over its inventory quickly, but takes much longer to pay its suppliers. The business is practically throwing off cash. Negative CCCs work well for growing businesses, but when businesses stop growing, these cycles can be painful since it means you have to pay your suppliers greater amounts than you make. A big thanks to Professor Efraim Benmelech and my Financial Decisions course for deepening my understanding of working capital and CCCs! Rohan Rajiv is a second-year student in Kellogg’s Full-Time Two-Year Program. Prior to Kellogg he worked as a consultant serving clients across 14 countries in Europe, Asia, Australia and South America. He interned at LinkedIn in Business Operations and will be heading back to LinkedIn full-time after he graduates in June 2016. He blogs a learning every day, including his MBA Learnings series, on www.ALearningaDay.com. Filed under: Academics, Student Life, Uncategorized Tagged: academics, MBA Learnings |
| FROM Kellogg MBA Blog: The future of social impact at Kellogg |
![]() By Eric Wulf The Kellogg Net Impact Club recently interviewed Megan Kashner ’03, Kellogg’s new director of social impact. Kashner brings a wealth of knowledge and experience from the social and non-profit sectors. Kashner is founder and CEO of Benevolent, a non-profit organization that redesigned how people experience the stories of low-income families and how we can act as small-dollar donors and advocates in order to make a real impact on Americans’ lives. We sat down with Kashner to learn more about her vision for social impact and its application at Kellogg. Why did you decide to come back to Kellogg in this role? The opportunity to help shape the world’s next generation of business and social leaders as they ready themselves to lead with impact was simply alluring. Kellogg has always felt like home to me, and to be invited home to lead up the area closest to my heart was truly an honor. I’ve spent my entire adult life in the social impact space – working with children, families, communities, marketplaces, companies and more. This role will allow me to shape and support our students and alumni who will choose full-time careers in impact, as well as those who will go forth and lead with their values in their business careers. For me, this is an opportunity to catapult impact thinking and action into every corner of leadership. You’ve held a variety of roles within the non-profit sector, both before and after your MBA from Kellogg. What do you think is the value of an MBA in the social impact space? The MBA, and in particular the Kellogg MBA, is a critical tool in the impact space — whether in service to social entrepreneurship, nonprofit leadership, corporate social responsibility practice, impact investing, sustainability in the supply chain or other market-based social influence areas. Prior to my own MBA experience at Kellogg, I found myself in positions of increasing responsibility and leadership in the nonprofit sector without the tools to truly benefit the organizations and missions I was working for. The Kellogg MBA prepared me — and prepares social impact leaders — to consider impact from a market perspective, complete with dependencies, analytics, leverage and a marketing lens. In leading my own impact startup, I have found myself using every nuance of my Kellogg experience, from my coursework to my network. What is Kellogg’s approach to teaching social impact? Kellogg has a three-pronged approach to teaching and preparing students to lead with impact.
Many students are interested in social impact but don’t plan on entering into that field immediately after graduation. How do you plan on engaging the broader Kellogg community around social impact? We know that more 75% of students are members of one or more of Kellogg’s 13 social impact clubs. We know as well that a much smaller percentage of these same students will pursue full-time impact positions when they graduate. What this means is that we don’t need to spur interest in the broader Kellogg community; we need to satisfy appetite. Engaging students who are already interested will involve listening, being responsive and providing the courses, speakers, experiences and content that these students who are interested in leading with their values and bringing impact into their careers and into their lives seek. I look forward to learning what students are interested in and rounding out our Kellogg offerings with the right content and programming. What is your vision for social impact at Kellogg? My vision for social impact at Kellogg is actually a vision of social impact beyond Kellogg. If we build and develop our social impact offerings and experiences well, then we’ll be graduating leaders out into all roles and industries with the knowledge, skills and confidence to bring responsibility, impact and a robust world view into every project, decision and strategy. Kellogg students and alumni already lead in many impact areas. We’ll be seeing many more social entrepreneurs and business leaders making waves for their ethics and actions, investment professionals leading newly conceived portfolio choices, and more. And it’ll all have a purple tinge and a Kellogg flavor. Eric Wulf is a second-year MBA student at Kellogg and the marketing vice president of the Net Impact Club. Prior to Kellogg he served in the Peace Corps and worked in public sector finance in Washington, D.C. After his MBA, he will be joining Deloitte Consulting’s Strategy & Operations practice in Chicago. The Kellogg Net Impact Club is a student-run organization and an official chapter of the Net Impact national organization. The club is dedicated to promoting social impact at Kellogg and shaping some of the world’s most talented socially oriented business leaders. Filed under: Academics, Student Life Tagged: Net Impact Club, non-profit, social impact |
| FROM Kellogg MBA Blog: Kellogg Zell Fellows take center stage |
![]() Kellogg’s Zell Fellows Program is designed to help students develop market-ready businesses by graduation. Zell Fellows have the unique opportunity to found a startup or grow their fledgling venture with the help of $25,000 in funding, as well as leadership coaching and mentoring from seasoned entrepreneurs. Clear Admit recently spotlighted the Zell Fellows Program and its innovative entrepreneurs, including second-year student Blair Pircon. Pircon discussed with Clear Admit how she’s used Zell Fellows resources to develop her startup The Graide Network, an online marketplace that connects teachers with qualified teaching assistants who can grade student assignments. Read more about Pircon and The Graide Network Clear Admit also interviewed Zell Fellows Program Director David Schonthal on the program’s unique design, inherent value and future plans for development. From Clear Admit: Though best known for producing a steady stream of crackerjack consultants and marketing mavens, Northwestern’s Kellogg School of Management is also making inroads when it comes to educating entrepreneurs. Through the Kellogg Innovation & Entrepreneurship Initiative (KIEI), the school is pioneering a lean methodology approach to launching new ventures that is steeped in experiential learning. To complement its “new venture creation” track, coursework that takes students through the full life cycle of new ventures from ideation to launch, Kellogg also features a special program offering support to MBA students who are trying to get ventures off the ground by graduation. Called the Zell Fellows Program, it is open to students who are either founding a startup or looking to grow an early-stage venture. In December, nine students were selected as the newest cohort of Zell Fellows, with ventures ranging from a service that takes the stress out of packing lunch by delivering customized, allergy-friendly meals directly to families’ homes to a platform that creates interactive guides that hotels can give their guests at check in. According to David Schonthal ’09, program director and clinical assistant professor of innovation and entrepreneurship at Kellogg, more than 100 students expressed interest in the program this year and roughly 60 submitted applications to be considered for participation. The cohort size remains small, though, because that’s part of the program’s unique, intrinsic value. Read the full Clear Admit article About the Zell Fellows Program The Zell Fellows Program — formerly known as the Zell Scholars Program — is an application-only, two-quarter program funded by Equity Group Investments LLC Chairman Sam Zell. Now in its third year, the Zell Fellows program has already provided executive support to 19 fellows who are running or have founded businesses. Learn more about the 2015-16 cohort of Zell Fellows and their entrepreneurial endeavors Filed under: Academics, Student Life Tagged: entrepreneurship, Growth, Innovation, Zell Fellows |
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