Faculty Smackdown: Prof. James Schrager
On New Ventures, Old Cars and Teaching at the GSB
Ed Slapansky, '07, Matt Birch, '07 and Danielle Young, '07
Issue date: 1/11/07 Section: GSB Life
"You don't know who you're dealing with, do you, Mr. Foley?" This quote, spoken masterfully to Axel Foley (played by Eddie Murphy) in the film 'Beverly Hills Cop', is often used by Professor Schrager in his class New Venture Strategy to emphasize the power of certain parties over others in an entrepreneurial context. This quote captures the essence of Professor Schrager, a man who finds great reward in reaching into his wealth of experience and passing knowledge to students in an effort to simulate the type of people and situations we "will be dealing with" in business. Through a structured framework and very candid feedback, Schrager transforms MBA students into entrepreneurs.
In his youth, Schrager's dream was to become a professional motocross racer. However, one day, he realized that he did not have the propensity to "take the turn" at the speed needed to ever make this dream into reality. Luckily for us, Schrager redirected this ambition off of the dirt paths of motocross and positioned it onto the raceways of business, first as an accountant, then as a turnaround artist, and finally as a hybrid international corporate advisor / professor. He may not have been able to "take the turn" in motocross but he has definitely proven his ability to do so as a corporate advisor and professor. This experience exemplifies an important emphasis of Schrager's teachings: know your boundaries, redirect if necessary and put your energy behind your passions.
In the following interview, we hope to shed more light on just exactly "Who We Are Dealing With" as Schrager students.
Sitting in class at Oakland University as an undergrad, did you have the idea that you'd be a professor someday?
The thought came to me in an Economics class. There were a group of academically trained Professors with PhDs and vast amounts of research-based knowledge, and along with them Senior Lecturers without advanced academic degrees who none-the-less had loads of information to impart. I had the crazy idea that I wanted to be both, that is get a PhD for the research background, and blend with that some significant business experiences. I thought that would be an ideal combination. It was hard to keep pushing forward in two different directions at the same time, but with a bit of luck, it all got done.
Please discuss your consulting firm, the Great Lakes Group and why it is headquartered in South Bend Indiana.
Great Lakes Group is an umbrella for the various consulting and board related work that I do outside of my work as a professor. It is located in South Bend for family reasons.
Wow, that's a long commute to Hyde Park!
Yes it is. I enjoy the drive though. I use this time to listen to books and different tapes. I especially enjoy listening to Milt Rosenberg's "Extension 720" broadcast on WGN. ["Extension 720" is a two-hour discussion show which airs Monday through Friday from 9 to 11 p.m. and is "just about everything except pop psychology and poodle-trimming."]
In the August 2005 Business Week article, "DaimlerChrysler: Divorce, German Style? Automotive expert James Schrager discusses where Jürgen Schrempp went wrong -- and how to fix the outfit. For one, 'get rid of Chrysler'", your experience working in the automobile field is highlighted.
Why don't you focus more on this industry in your New Venture Strategy course?
New Venture Strategy concentrates on start-up strategy. Many of the issues in the automobile sector, especially in regard to turnaround efforts, are better classified as corporate strategy issues. Although there is cross-over, I prefer to keep the course focus on earlier stage ventures, such as concept stage healthcare concerns and the case studies of young entrepreneurs. My course emphasis is to convey a series of models abstracted from the cases which allow students to categorize ideas quickly, discuss benefits, note problems, and ideally, predict performance in an ultimate effort to help students think strategically as entrepreneurs (and business people in general).
Speaking about automobiles, please tell us more about your car collection.
As a hobby, I have a modest collection of old Porsches that I work on with our two sons. We like to buy cars other people don't want, cars that need repair or restoration. This is not for show; it's mostly a way to get my fingers dirty on the weekends.
What is your favorite Porsche model?
[Grinning from ear to ear] The Porsche 356. It is the model I focused my book on, "Buying, driving and enjoying the Porsche 356; Ownership series; 2001." (Professor Schrager also hosts a repeat column in Sports Car Market Magazine (www.sportscarmarket.com)
Our favorite review of Professor Schrager's book on Amazon.com is: "Mr. Schrager even tries to explain the feeling and joy of owning and driving the 356 in metaphysical ways as you can not explain, by the means of logic, why people get so deeply in love with this car." Replace the phrase "owning and driving the 356" with "owning and operating your own enterprise" and "car" with "profession" and you have a typical review of the New Venture Strategy course; proof that passions are transferable between both work and life pursuits, a subtle life lesson Schrager demonstrates.
If you started writing another book tonight, what would it be about?
Actually, I am! That is what I will work on after I get home this evening. I am writing a book about entrepreneurship based on the Make-Me-A-Million projects prepared by the New Venture Strategy students.
I see from your background you have the C.P.A. designation. You don't come off as the typical public accountant. Please describe what directed you into the land of accountancy? Although you do not practice public accounting, did passing the C.P.A. make a material difference in your business career?
After dropping out of the University of California (Davis) Economics PhD program to ride motocross, I came to a point where I needed a job. Accounting offered lots of possibilities so I studied for the C.P.A. exam and passed. Looking back, this designation has been extremely valuable. Accounting is the language of numbers that underlies business. It opens many doors and compliments the other commercial disciplines well, even Economics.
What disappoints you as a teacher?
Not much. If anything, I just wish that I could reach every student with the same degree of impact and I continually think about how to do that.
What delights you as a teacher?
When students take their best shot, work hard and are wrong. Then I can teach them how to come to the correct answer, how to think about the problem or situation the right way. This is the value of cases used in class: as a real-world foundation on which to apply the models we develop.
In the classroom, you exude an outstanding aura of confidence. What worries you when you are standing up there looking out over the students' faces?
Not much … I guess to answer this, I would say that I worry that some points are not crystal clear. In my teaching I try to accomplish three things: (1) Present a really interesting problem that will be useful to our students, (2) give everyone a chance to match wits with the instructor, and (3) when the case is solved, something the student has never seen before is illuminated and can be provided instinctually in a future situation.
How do you make sure you are successful in this approach?
I read students' papers carefully. Also, I listen closely to students' answers and feedback. I place a lot of emphasis on knowing my students and tracking their development through this material.
Have you ever made a student cry?
Some of my jokes are pretty bad, but I don't think I've yet observed outright sobbing.
How have you seen Chicago GSB students change through the years?
The students keep getting better, with even more real-world smarts along with their academic qualifications. It was interesting during the dot-com boom. Many students did not want to work for others and "pulled the trigger" quicker to become entrepreneurs. Post-boom, many of them had failed and I often heard the phrase "how did you know".
In your class, you focus on the importance of having level headed advisors. Who is this for you?
I have been very lucky to have had many great business mentors. At the University, my dissertation Chairman, Al Madansky has been terrific in helping through all kinds of situations. The Chicago faculty is blessed with so many superb mentors.
Sorry to sound morbid, but, one day the business community will no longer have James Schrager. What will be the first line of your obituary?
Husband, father, friend, teacher.
Now for a series of short questions:
Do you own an IPOD? No
One thing the Chicago GSB should do better? Student parking
One thing the Chicago GSB does perfect? Allows the faculty maximum creativity and develops an exceptionally high standard for research. This is what is behind the Nobel awards.
Favorite place? Chicago, Illinois
Most exciting place to visit? Johannesburg, South Africa
Last Motorcycle you owned? [Big grin again] Oh Yes! A Penton 125cc Motocross bike.
Favorite Book? Milton Friedman's Capitalism and Freedom
One thing all Chicago GSB students should do?
Go to the Museum of Science and Industry, or, even more importantly, TOUR A FACTORY. It is incredible how much can be gained through this experience.
Do you believe a person changes?
Yes, people can change, but it is painful. It all comes down to being brutally honest with yourself. If you're not, it will all fall apart. As soon as you lose honesty, it's all Las Vegas, just a crap shoot, so you might as well place your bet on double zero on the roulette wheel.
You run into a former student / recent grad right as they are heading out of Hyde Park and ready to re-enter the business world. What last minute piece of advice do you leave them? In Schrager speak, what is your pithy quote?
Find a way to be productive while having a great time.
How about advice to all of us in general?
As I learned from motocross racing, life is about understanding what you can and can't do. This allows redirection from failure and points you in the right direction.
Thank you Professor Schrager.
(Professor Schrager is offering his course twice during the winter semester, once during spring semester and once during summer semester. This class is a definite must-take. Although it is catered to entrepreneurial focused students, it delivers a series of unique lessons that are applicable to any career pursuits.
Please visit: www.lib.uchicago.edu/e/busecon/busfac/Schrager.html for a select bibliography of James Schrager's published books and articles. These are great readings, especially for students who already have taken New Venture Strategy.)
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In his youth, Schrager's dream was to become a professional motocross racer. However, one day, he realized that he did not have the propensity to "take the turn" at the speed needed to ever make this dream into reality. Luckily for us, Schrager redirected this ambition off of the dirt paths of motocross and positioned it onto the raceways of business, first as an accountant, then as a turnaround artist, and finally as a hybrid international corporate advisor / professor. He may not have been able to "take the turn" in motocross but he has definitely proven his ability to do so as a corporate advisor and professor. This experience exemplifies an important emphasis of Schrager's teachings: know your boundaries, redirect if necessary and put your energy behind your passions.
In the following interview, we hope to shed more light on just exactly "Who We Are Dealing With" as Schrager students.
Sitting in class at Oakland University as an undergrad, did you have the idea that you'd be a professor someday?
The thought came to me in an Economics class. There were a group of academically trained Professors with PhDs and vast amounts of research-based knowledge, and along with them Senior Lecturers without advanced academic degrees who none-the-less had loads of information to impart. I had the crazy idea that I wanted to be both, that is get a PhD for the research background, and blend with that some significant business experiences. I thought that would be an ideal combination. It was hard to keep pushing forward in two different directions at the same time, but with a bit of luck, it all got done.
Please discuss your consulting firm, the Great Lakes Group and why it is headquartered in South Bend Indiana.
Great Lakes Group is an umbrella for the various consulting and board related work that I do outside of my work as a professor. It is located in South Bend for family reasons.
Wow, that's a long commute to Hyde Park!
Yes it is. I enjoy the drive though. I use this time to listen to books and different tapes. I especially enjoy listening to Milt Rosenberg's "Extension 720" broadcast on WGN. ["Extension 720" is a two-hour discussion show which airs Monday through Friday from 9 to 11 p.m. and is "just about everything except pop psychology and poodle-trimming."]
In the August 2005 Business Week article, "DaimlerChrysler: Divorce, German Style? Automotive expert James Schrager discusses where Jürgen Schrempp went wrong -- and how to fix the outfit. For one, 'get rid of Chrysler'", your experience working in the automobile field is highlighted.
Why don't you focus more on this industry in your New Venture Strategy course?
New Venture Strategy concentrates on start-up strategy. Many of the issues in the automobile sector, especially in regard to turnaround efforts, are better classified as corporate strategy issues. Although there is cross-over, I prefer to keep the course focus on earlier stage ventures, such as concept stage healthcare concerns and the case studies of young entrepreneurs. My course emphasis is to convey a series of models abstracted from the cases which allow students to categorize ideas quickly, discuss benefits, note problems, and ideally, predict performance in an ultimate effort to help students think strategically as entrepreneurs (and business people in general).
Speaking about automobiles, please tell us more about your car collection.
As a hobby, I have a modest collection of old Porsches that I work on with our two sons. We like to buy cars other people don't want, cars that need repair or restoration. This is not for show; it's mostly a way to get my fingers dirty on the weekends.
What is your favorite Porsche model?
[Grinning from ear to ear] The Porsche 356. It is the model I focused my book on, "Buying, driving and enjoying the Porsche 356; Ownership series; 2001." (Professor Schrager also hosts a repeat column in Sports Car Market Magazine (www.sportscarmarket.com)
Our favorite review of Professor Schrager's book on Amazon.com is: "Mr. Schrager even tries to explain the feeling and joy of owning and driving the 356 in metaphysical ways as you can not explain, by the means of logic, why people get so deeply in love with this car." Replace the phrase "owning and driving the 356" with "owning and operating your own enterprise" and "car" with "profession" and you have a typical review of the New Venture Strategy course; proof that passions are transferable between both work and life pursuits, a subtle life lesson Schrager demonstrates.
If you started writing another book tonight, what would it be about?
Actually, I am! That is what I will work on after I get home this evening. I am writing a book about entrepreneurship based on the Make-Me-A-Million projects prepared by the New Venture Strategy students.
I see from your background you have the C.P.A. designation. You don't come off as the typical public accountant. Please describe what directed you into the land of accountancy? Although you do not practice public accounting, did passing the C.P.A. make a material difference in your business career?
After dropping out of the University of California (Davis) Economics PhD program to ride motocross, I came to a point where I needed a job. Accounting offered lots of possibilities so I studied for the C.P.A. exam and passed. Looking back, this designation has been extremely valuable. Accounting is the language of numbers that underlies business. It opens many doors and compliments the other commercial disciplines well, even Economics.
What disappoints you as a teacher?
Not much. If anything, I just wish that I could reach every student with the same degree of impact and I continually think about how to do that.
What delights you as a teacher?
When students take their best shot, work hard and are wrong. Then I can teach them how to come to the correct answer, how to think about the problem or situation the right way. This is the value of cases used in class: as a real-world foundation on which to apply the models we develop.
In the classroom, you exude an outstanding aura of confidence. What worries you when you are standing up there looking out over the students' faces?
Not much … I guess to answer this, I would say that I worry that some points are not crystal clear. In my teaching I try to accomplish three things: (1) Present a really interesting problem that will be useful to our students, (2) give everyone a chance to match wits with the instructor, and (3) when the case is solved, something the student has never seen before is illuminated and can be provided instinctually in a future situation.
How do you make sure you are successful in this approach?
I read students' papers carefully. Also, I listen closely to students' answers and feedback. I place a lot of emphasis on knowing my students and tracking their development through this material.
Have you ever made a student cry?
Some of my jokes are pretty bad, but I don't think I've yet observed outright sobbing.
How have you seen Chicago GSB students change through the years?
The students keep getting better, with even more real-world smarts along with their academic qualifications. It was interesting during the dot-com boom. Many students did not want to work for others and "pulled the trigger" quicker to become entrepreneurs. Post-boom, many of them had failed and I often heard the phrase "how did you know".
In your class, you focus on the importance of having level headed advisors. Who is this for you?
I have been very lucky to have had many great business mentors. At the University, my dissertation Chairman, Al Madansky has been terrific in helping through all kinds of situations. The Chicago faculty is blessed with so many superb mentors.
Sorry to sound morbid, but, one day the business community will no longer have James Schrager. What will be the first line of your obituary?
Husband, father, friend, teacher.
Now for a series of short questions:
Do you own an IPOD? No
One thing the Chicago GSB should do better? Student parking
One thing the Chicago GSB does perfect? Allows the faculty maximum creativity and develops an exceptionally high standard for research. This is what is behind the Nobel awards.
Favorite place? Chicago, Illinois
Most exciting place to visit? Johannesburg, South Africa
Last Motorcycle you owned? [Big grin again] Oh Yes! A Penton 125cc Motocross bike.
Favorite Book? Milton Friedman's Capitalism and Freedom
One thing all Chicago GSB students should do?
Go to the Museum of Science and Industry, or, even more importantly, TOUR A FACTORY. It is incredible how much can be gained through this experience.
Do you believe a person changes?
Yes, people can change, but it is painful. It all comes down to being brutally honest with yourself. If you're not, it will all fall apart. As soon as you lose honesty, it's all Las Vegas, just a crap shoot, so you might as well place your bet on double zero on the roulette wheel.
You run into a former student / recent grad right as they are heading out of Hyde Park and ready to re-enter the business world. What last minute piece of advice do you leave them? In Schrager speak, what is your pithy quote?
Find a way to be productive while having a great time.
How about advice to all of us in general?
As I learned from motocross racing, life is about understanding what you can and can't do. This allows redirection from failure and points you in the right direction.
Thank you Professor Schrager.
(Professor Schrager is offering his course twice during the winter semester, once during spring semester and once during summer semester. This class is a definite must-take. Although it is catered to entrepreneurial focused students, it delivers a series of unique lessons that are applicable to any career pursuits.
Please visit: www.lib.uchicago.edu/e/busecon/busfac/Schrager.html for a select bibliography of James Schrager's published books and articles. These are great readings, especially for students who already have taken New Venture Strategy.)
Viewing Comments 1 - 10 of 10
Vivek Pandey
posted 11/12/07 @ 3:44 AM CST
I have heard a lot about Prof Schrager. One of my classmates from undergrad came from Manchester to Chicago on an exchange program and the most lasting impression he had about Chicago was the class he attended of Prof Schrager. (Continued…)
Jason Aplon
posted 1/21/08 @ 1:54 AM CST
I had the pleasure to work with and learn from Prof. Schrager in the early 1990's in California. His inspiration and spirit of exploration stayed with me long after I changed directions in my life. (Continued…)
Gabriel Rovayo
posted 9/01/09 @ 4:49 PM CST
El profesor James Schrager es un gran estratega. Sus precisiones sobre lo que un CEO debe hacer en estrategia, lo hacen un referente mundial:
grovayo
Gabriel Rovayo
posted 9/01/09 @ 5:01 PM CST
He recibido clases con el distinguido Prof. James Schrager. Me ha impresionado gratamente la manera de llegar a los CFO en el curso que he tomado en Chicago. (Continued…)
Karl T. Muth
posted 10/11/09 @ 6:55 PM CST
I haven't yet had a class with Professor Schrager, but this interview is full of wisdom. My father, however (also a Booth alum), recently came back after decades in the business world and took a class with him and said it was one of the best learning experiences he's ever had. (Continued…)
powerlifting forum
posted 12/07/09 @ 1:56 PM CST
El profesor James Schrager es un gran estratega. Sus precisiones sobre lo que un CEO debe hacer en estrategia, lo hacen un referente mundial:
muscle building forum
posted 12/07/09 @ 1:58 PM CST
I had the pleasure to work with and learn from Prof. Schrager in the early muscle building 1990's in California. His inspiration and spirit of exploration stayed with me long after I changed directions in my life. (Continued…)
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