2019-2020 Annual Report: Innovation

MIM alumni work in tandem to meet critical pandemic demand

As classmates in PSU’s Master of International Management (MIM) program, Gabriela Franco (‘06) and Francisco Cuerva (‘06) teamed up on several projects together. Little did they know that one day they would work in tandem to help save lives in the face of a pandemic.
 
In 2008, Franco became the marketing director of Copan Diagnostics, Inc., the U.S. subsidiary of the global company COPAN Group based in Italy. Cuerva subsequently joined the company as its supply chain and customer service manager. Franco says their education perfectly suited their work at the small but international company.
 
“PSU’s MIM program taught us entrepreneurialism — how to think from a macro perspective while taking care of whatever needs to be done, no matter how small,” Franco notes. “That’s been incredibly valuable as we use these skills every day.”
 
Gold Standard

In 2003, COPAN invented flocked swabs, which have become a critical tool in COVID-19 testing. The swabs’ nylon fibers were a revolutionary breakthrough in clinical microbiology because they provided a better way to collect, release and preserve sample cells — extremely important aspects of a reliable testing process. 

When the COVID-19 pandemic hit, COPAN’s Italian manufacturing plant was one of the only two major manufacturers in the world making flocked swabs. 

“Suddenly, global demand exponentially exceeded our capacity,” recalls Cuerva. “Managing the volume of requests for tens of millions of swabs in this unprecedented situation was a new challenge. It meant a huge increase in production and shock to our supply chain.”

Although Copan Diagnostics generally operates as a wholesaler, the small privately held company found ways to streamline production.

“We looked at every possible path to help meet the demand,” Cuerva says. “Ultimately we were able to maximize supply to clinical laboratories across the U.S. by reducing redundancies in production, and by offering new and alternative products and preservation media.”

To help increase testing capacity, Copan Diagnostics teamed with different government agencies and many hospitals.

“We worked collaboratively to qualify different types of swabs and obtain approval for other sampling sites in the nose and throat,” Franco says. “We also produced sample collection videos in partnership with the CDC because if you don’t take a good sample initially, you aren’t going to have a great result,” she explains.

Hope on the Horizon

Copan Diagnostics manufactures products in the U.S., but none suited to assist with the COVID-19 crisis. In May, Apple awarded $10 million to help Copan Diagnostics add a new production facility in Southern California. The goal was to boost the availability of sample collection kit materials to more than one million per week.

“Even though we greatly increased capacity, it’s not enough,” says Cuerva. “The new facility is the light at the end of the tunnel.”

Franco’s entrepreneurial spirit remains intact, and she’s taken on an internal project management role for the move to the upcoming facility.

“What I like most about working here is that I’m able to make a difference,” Franco says. “We can have an impact and see the results.”

AACSB extends accreditation of The School of Business and accounting program

In February, AACSB International extended the business and accounting accreditation of The School of Business. AACSB is the longest-serving global accrediting body for business schools, and PSU is among the top 1% of business programs worldwide that hold prestigious dual-accreditation in business and accounting. 

PSU underwent a rigorous, multiyear peer-review process to demonstrate excellence in teaching, research, curricula development and student learning.

“AACSB accreditation reflects our commitment to innovation, impact and engagement,” said Cliff Allen, dean of The School of Business. “Our high standards are validated to ensure students receive the quality education they deserve.” 

The peer-review team noted a number of achievements in its business accreditation report, including:

• Improving the quality of academic research since the previous review, with the hiring of high-quality junior faculty as a significant contributor to this outcome
• Dispersing over $730,000 in funding to students in jeopardy of dropping out due to financial hardship; recipients have an 88% retention or graduation rate
• The Dean’s Future Leaders Group composed of undergraduate students at all levels of academic achievement who develop leadership and build confidence in letting authenticity drive their career
• The dedication of full-time, non-tenure track faculty in representing the core values of access to and quality of education
• Signature experiential learning activities that leverage community partnerships and maximize student competitiveness in the job market, including case competitions, consulting projects, PSU CO-OP and immersive industry-facing opportunities offered through centers of excellence

In addition to developing and implementing a mission-driven plan to satisfy the business accreditation quality standards, accounting accreditation required the satisfaction of a supplemental set of standards specific to the discipline and profession of accounting.

The accounting program was commended for: 

• Utilizing Accounting Excellence funds to supplement 1) student career services and 2) faculty research-related and professional development expenses that align with mission-driven, strategic initiatives
• Encouraging the use of QuickBooks and other relevant software in curriculum

As AACSB accreditation requires, PSU is entering its next five-year continuous improvement peer-review process to maintain high-quality research, teaching and student outcomes, including implementation and measurement of its strategic plan.

The School of Business has held AACSB accreditation since 1970 and the accounting program since 1989.

Students thinking forward with new Business Blockchain Certificate

In Fall 2019, The School of Business welcomed its first cohort of students pursuing the new Business Blockchain Certificate. Offered at both the undergraduate and graduate levels, curriculum for the first for-credit certificate program of its kind in the country came together through collaboration with regional industry experts driven to cement Oregon’s place as a leader in the blockchain arena. 

“Until now, there has been a missing layer in how universities focus on blockchain,” said Benjamin Diggles, co-founder of Constellation Network Inc. and PSU blockchain board member. “Blockchain has been pushed on the academic side, and we also need to focus on what the technology is building and changing in business.”

Using what Diggles calls a “deep bench of relationships,” particularly with the Oregon Enterprise Blockchain Venture Studio, PSU’s certificate strives to apply a new lens to the technology and incorporate industry mentors and expertise in the classroom. Blockchain goes well beyond cryptocurrency and has the potential to solve some of the biggest challenges facing businesses today.

However, getting key stakeholders on board with this mindset shift presents a major hurdle, Diggles said. Launching this certificate and pushing students to consider blockchain more creatively is part of a grassroots effort to drive broad blockchain adoption. Diggles said the program should attract students with a blend of interests in economics, tech and entrepreneurship. This year’s cohort certainly fit the bill, with students like Tatyana Budey forming what Diggles called “the tip of the spear for the new era.”

Budey is pursuing a degree in accounting with plans to obtain her CPA license and initially work in public accounting and auditing. Growing up, she was surrounded by a business-minded family and developed an interest in bookkeeping and accounting. Though cryptocurrency offered her first introduction to blockchain, she quickly recognized the business implications of the technology, including in the accounting field. She jumped at the chance to explore these opportunities in depth with PSU’s certificate.

“I believe blockchain is and will continue to be integrated into the accounting profession,” Budey said. “PSU has stepped up and embraced this change, encouraging me to do the same with the coursework this certificate offers.”

Budey hopes to eventually take on a career bridging the gap between business and tech, focusing on business blockchain implementation. Her plan aligns closely to Diggles’ long-term hopes for blockchain education at PSU.

“These students are going to be the instigators of change,” Diggles said. “What we’re doing is creating a ‘smart campus’ of sorts, a living playbook for how these technologies can be more broadly applied. Graduates of this program will be prepared for opportunities that don’t yet exist.”

Both Diggles and Budey called the first iteration of the Business Blockchain Certificate a success, pointing to knowledgeable, supportive faculty and real-world perspectives incorporated into the coursework. Budey said she feels the program is well positioned to continuously evolve, meeting the needs of each new group of students.

“Business and technology will continue to intertwine, and I am confident that The School of Business will be able to provide students with the necessary resources, connections and education to be a part of that innovation,” she said.

PSU first in Pacific Northwest to partner with Barron’s in Education

In February, The School of Business entered a new partnership with Barron’s in Education, a financial education program from Dow Jones. Portland-based McGee Wealth Management is sponsoring a two-year site license to Barron’s, one of the nation’s premier financial resources, that allows free 24/7 access for PSU students, faculty and staff.

PSU is the first in the Pacific Northwest to join over 65 schools participating in Barron’s in Education nationwide.

“Our collaboration with Barron’s and McGee Wealth Management gives our students greater involvement with the tools they need to succeed in the classroom and the workforce,” said PSU Master of Science in Finance (MSF) Academic Director Julie Hackett. “With access to Barron’s and Bloomberg, they are connected to two of the most trusted and current sources of business information.”

In April 2019, The School of Business opened the Bloomberg Finance Lab, complete with 12 computers equipped with Bloomberg Terminal. 

“I am stunned by having access to Barron’s on top of Bloomberg Terminal,” said MSF student Thanh Nguyen. “This way we have real-time information to gain the type of skills and knowledge that are essential for our career development. Because of donors like McGee Wealth Management, PSU can provide meaningful resources that enrich the student experience.”

In addition to Barron’s digital subscription that provides in-depth analysis and market commentary, the Barron’s in Education program offers curated weekly content for faculty to incorporate into curriculum, student ambassador positions, guest speakers and webinars, connections with corporate recruiters, and opportunities for students to tour the Barron’s Dow Jones headquarters in Manhattan.

“Real-world engagement and experiential learning are core values of The School of Business,” added Hackett. “Opportunities like these allow our students to better see themselves in a variety of finance-related careers.”

"We are so pleased to bring Barron's in Education to PSU, with support from McGee Wealth Management,” said Joe Lanza, director of financial education at Barron’s Group. “All PSU business students, faculty and staff will have access to Barron's digital content along with experiential learning elements designed to help promote financial proficiency for the next generation of business leaders.”

In 2019, Barron’s named Judith McGee, CEO of McGee Wealth Management, to its Hall of Fame, an award honoring a group of advisors who exemplify long-term success and commitment to their clients. Barron’s in Education aligns with McGee’s steadfast desire to improve financial comprehension among younger generations. She chose to gift the program to PSU because of the university’s commitment to innovation, access, inclusion and equity.

“I’ve been a life-long advocate of supporting financial education in Oregon’s high schools, colleges and universities,” said McGee. “My colleagues and I are delighted to have the opportunity to bring the Barron’s in Education program to PSU. We believe that this program may open doors for students to a career in the financial services industry.”

McGee was an early leader in the financial industry when in 1979 she was one of the first women in the western United States to become a Certified Financial Planner. In January during a finance career panel, she spoke to PSU business students about her professional journey from a single mother of two working as an executive assistant to a nationally ranked wealth manager.

“You must learn the human element of finance to be successful,” said McGee, stressing that wealth management is a helping occupation. “Interpersonal communication, empathy and understanding are critical to truly knowing a client’s wants, needs and desires.” 

She urged students to help clients make decisions based on long-term outcomes rather than immediate, emotion-based decisions.

PSU business alumni at helm of the two fastest growing companies in Oregon

The two fastest growing companies in Oregon are run by PSU alumni, according to the latest list released by the Portland Business Journal.

Peter Stott took the No. 1 spot with his trucking company Market Express. Chris Joseph followed with the second fastest growing company in Oregon: WYLD. Both Stott and Joseph are alumni of the PSU School of Business.
 
Joseph also made the list at No. 18 and 19 for his companies Wild Roots and Cascade Street Distillery. 

The annual list tracks revenue growth between 2016 and 2018. All told, the top 100 private Oregon companies accounted for $5.5 billion in revenue and about 14,000 employees. 

Several other PSU business alums made the list as well. At No. 13, McKean Smith LLC, a Portland law firm founded by attorney Collin McKean. At No. 21, Dean Reece, made the list for REECE Complete Security Solutions. And software company Smarsh took the No. 41 spot, where Parker Baldwin serves as chief financial officer.

Stott, who is also a member of the PSU Board of Trustees, certainly isn’t new to the transportation business. He started his first company in 1969 while a PSU student thanks to a loan from a professor, $90 of his own money and a single truck. That company, Market Transport, sold in 2006 for $197 million.

There are a few parallels between Stott’s first company and his latest, Market Express — but the newest companies’ accelerated growth can be contributed to decades of experience.

Market Express launched three years ago with one truck, trailer, driver and three employees.

Now, the company employs more than 350 and is one of the top five West Coast regional trucking companies. In 2018, the company posted gross revenues of $50 million. Revenue for 2019 is projected to surpass $75 million. According to the Portland Business Journal, Market Express’s revenue has grown 1776.37% between 2016 and 2018.

Stott said that his success is thanks to a trifecta of factors: his past successes, a strong economy and a great team.

“You’re not anything without a good team,” Stott said.

Market Express is also led by his nephew Greg Galbraith, who serves as president and chief marketing officer, and Executive Vice President and Chief Operating Officer Nick Campos.

Between the three of them, Stott added, they knew the majority of their customers right out of the gate. That institutional knowledge propelled Market Express forward and gave the startup an advantage most don’t benefit from.

Joseph also started his first company, Wild Roots, while a student at PSU. Founded in 2013, Wild Roots is now one of the top five Oregon distilleries. Since then, Joseph has launched two other companies that have found similar success.

WYLD, one of the largest edible cannabis brands nationwide, has grown the fastest, boasting 98 employees and 1326.57% revenue growth between 2016 and 2018.

Cascade Street Distillery was acquired in June, completing the portfolio.

WYLD especially has seen success because it plays in one of Oregon’s fastest growing industries: cannabis.

“When cannabis became legalized in Oregon, it was an opportunity I could not pass up on,” Joseph said. “My business partner, Aaron Morris, came to me with the idea of doing a line of edibles, similar to Wild Roots.”

WYLD —similar to its predecessor Wild Roots — was bootstrapped and launched in a garage.
 
“There are a lot of different factors that contribute to the overall success of each organization, but if I were to narrow it down it would be the product, packaging, people, and vision that really make them stand out amongst the crowd,” Joseph said.

Each brand boasts unique packaging, attention to detail and consistent, high quality products.

“We've achieved a lot in a small amount of time with limited resources,” he added. “All three companies are growing more than 100% each year, and continuously winning awards for product, package and growth. Each started with more of a garage or bootstrap mentality and are now all leaders in each of their respective industries.”