"We are proud to bring people together to celebrate the best that Italy has to offer," said Ambassador Giuseppe Morabito.

Organized by the student-run LAU Hospitality Club and overseen by the Institute of Hospitality and Tourism Management Studies (IHTMS), the event enchanted participants of all ages.

"Our mission is to be part of society and to give people around us the opportunity to express themselves, to live, to laugh and to enjoy life," said LAU President Dr. Joseph G. Jabbra.

According to Dr. Said Ladki, head of IHTMS and chair of the Hospitality and Marketing Department, the event proved a successful test for the students. "Every year we explore different aspects of hospitality and tourism. This time we delved into new venture that seems to be a winner. The feedback was overwhelmingly positive."

With live music playing in the background, some wandered around the pasta or Italian tapas stations, while others, sipping nothing less than a limoncello-Arak mix, learned more about unique resorts where they could spend their next vacation.

"For me this is so surprising and exciting," said first-year banking and finance student Nadine Keraidieh who attended with a friend. "It shows that this university is not only about studying, but also about offering opportunities to discover other cultures, to network, to grow."

Serving pasta at one of the stands, Fawzi Aidi, a third-year management major who takes a course in hospitality, agreed: "This is all about PR, marketing and exposure, and it is extremely motivating for us to know that our university is doing what it takes to be the best."

While the buzzing students' faces started to fade with fatigue, their eyes showed overwhelming excitement. "We really worked hard for three straight days to prepare, but it was worth it. Look how happy people are!" said Charlotte Rabbath, an economics student taking a cooking course.

No one put it better than Vice President for Student Development and Enrollment Management Dr. Elise Salem. In an e-mail sent to Dr. Ladki, Salem expressed her profound admiration for the event organizers. "Thank you for transforming our campus last night into an Italian movie set. We felt like privileged actors eating, drinking and socializing with our colleagues while being introduced to the Italian culture."

The institute aims at involving students, academics, and business executives in an exchange forum and ongoing dialogue that bring business practices and university teachings together. It also offers a dynamic communication platform that fosters synergy, active learning, academic research, learning excellence, and practice-based knowledge sharing.

The presentation kept in line with the institute's mission to keep pace with business paradigm shifts in global communities while highlighting the role of human resources as an essential part of organizational management. Indeed, Bardawil's discourse underscored the importance of maintaining an unwavering sense of shrewdness in times of crisis, and the significance of making managerial decisions with aplomb.

In 1979, the San Francisco Chronicle published an article about MEA, labeling it the "airline that refuses to die." MEA was 33 years old at the time. Now in its 66th year, the ordeals that the airline has endured have doubled, said Bardawil, but "the MEA saga is not an account of these difficulties, but rather, of the decisions and actions that its management has taken to overcome them."

Bardawil explained that any given organization is an open system that interacts with a constantly changing environment, both politically and economically, thus shaping -- or occasionally tampering with -- its equilibrium.

"For an organization to thrive, it needs to be flexible and capable of introducing novel interventions whenever needed," said Bardawil. "These interventions can be organizational development interventions -- which include operational changes in focus, and modifications at the "action" level -- or they can be organizational transformation interventions, which could mean changing the vision of the organization as a whole."

In 1968, an Israeli attack on Lebanon left MEA 16 airplanes short, but what would have been a tragedy for any other airline gave MEA a chance to shine: within a mere 24 hours of the airline losing most of its fleet, it resumed its regular flights by borrowing aircraft from Morocco and Jordan. This incident also marked MEA's embarkment on its most capital strategic decision regarding its fleet: to operate using only one type of aircraft, Boeing.

"Every misfortune can be an opportunity," stressed Bardawil. "You have to be prudent and judicious -- you can't leave everything in the hands of fate."

Dr. Philippe Zgheib, assistant professor of management and head of IHR, says he hopes the institute will continue to host such prominent figures who deliver thought-provoking and inspirational lectures. "More than anything, the institute aims to bridge the gap between business practice and academia," he said. "And there is no better way to do that but to introduce our students to pioneering practitioners in the field of human resources."

All pictures used in the story are courtesy of MEA website.
 

The forum, in its third edition, was organized by CSR Lebanon, an independent consulting firm, which was recently appointed as Lebanon's official point-of-contact for the United Nations Global Contact (UNGC). Held under the high patronage of the Lebanese President General Michel Sleiman, the event was attended by a total of 30 international, regional and local experts, and highlighted the importance of CSR in addressing the challenges modern business challenges.

"CSR is recognized to be a voluntary approach that a business enterprise takes to meet or exceed stakeholder expectations by integrating social, ethical, and environmental concerns into its core business objectives," said CSR Lebanon founder Khaled Kassar. "Through its partnership with UNGC, CSR Lebanon aims to promote responsible business practices and transparent CSR reporting," he added.

LAU was one of the main universities that actively participated in the forum. Led by Dr. Maya Farah, assistant professor of marketing at the School of Business, M.B.A students Hassan Badran, Jad Madina, Mohamad Hindi, Nadim Saliba, Rayane El Dirany, Safaa Jawad, and Zeina Sidani participated in a round table discussion with Georg Kell, United Nations Global Compact executive director, and Ibrahim Al-Zu'bi, the head of CSR at Majid Al Futtaim Properties, who has a long experience in sustainability and CSR. This event was a golden opportunity for the students to be critical thinkers and learners in a highly challenging and constructive setting.

"I highly urge business leaders and officials to cooperate with young entrepreneurs in order to lay the foundations for a local network that promotes responsible business practices," said Kell, addressing the students.

"Indeed, participating in such an event made me -- a student and future leader -- recognize the need for such responsible actions in our region," said student Nadim Saliba.

At the heart of the discussion was the role of corporations in promoting environmental sustainability and responsible business practices, particularly when it comes to investment in conflict-affected areas. Though Lebanon is slowly integrating CSR into its corporate culture, the country still lags behind many of its MENA peers, particularly with regards to transparent reporting and raising awareness.

"We learned things that could surely not be taught in classrooms," Saliba said before adding, "We need to implement such environmentally responsible actions in our region. If it's the right thing, we have to do it, even if it costs more."‬

According to Farah LAU's participation in the forum allowed students to acquire and share knowledge -- among practitioners and youth -- about sustainability and the importance of CSR not only throughout the Middle East, but also globally.

"Universities are often looked upon to take a leadership role within societies and to lead by example."

The event was in line with the department's mission to familiarize students with knowledge, skills and abilities they need for building a successful career path.

"The key to a successful business is to have the right people in the right position," said Dr. George Najjar, LAU provost. "The old employment paradigm was based on land, capital and labor -- but there is a recognition now of the utmost importance of investing in human capital," he asserted as he kicked off the event.

Dean of the School of Business Dr. Said Elfakhani assured that LAU's School of Business is incorporating this awareness into the curriculum as well as university activities -- both on and off campus.

According to the United Nations Development Programme (UNDP), while Lebanese youth (15-24) represents half of the unemployed population, youth unemployment in Lebanon is estimated to be as high as the average for the Arab region - about 26% - the highest of all regions.

Speaking at the event, Delloitte Regional Talent and Communication Partner Rana Salhab said there is a real talent paradox in the Middle East. "There is high unemployment yet employers face major challenges in recruiting qualified talent," she explained.

On the other hand, according to Salhab employers have a challenge to attract top employees with meaningful and fulfilling work. "Retaining A+ employees is a priority. If they don't feel like the work adds meaning to their lives they will walk out the door," she insisted.

Echoing Salhab's observations Jihad Njeim, assistant vice president for human resources at LAU, stressed the importance of building a culture of employee retention. He also advised students on the importance of linking their personality with their chosen career path. "Your career starts at the age of eight," he said provocatively. "That is when your personality unfolds and it becomes clear what sorts of professions you will instinctively excel in."

Martin Purple is the first company in the Middle East and Africa to provide total Human Resources Outsourcing services. Liliane Nohra, the company's managing partner shared her experience with the audience and said that one of the most important skills to cultivate is cultural sensitivity. "Considering that many graduates look outside of Lebanon for careers, it is important to be in tune with the cultural differences you will face when abroad."

Nohra also reported that one of the major weaknesses Martin Purple finds when evaluating candidates for employment is significant difficulty working with authority.

On a positive note, the panel said that LAU graduates have a reputation for making an impact wherever they decide to pursue their careers.

"This event was very valuable because it gave students a rare opportunity to gain an inside look from the employers perspective," said Charbel Aoun, instructor at LAU's school of business and part of the organizing committee headed by Dr. Sylva Karkourian chairperson of the Department of Management Studies.

Indeed, says third-year political science student Maya Sawwan, "It's nice to know that a degree from LAU will take me far, but this event motivated me to make sure I have the right work ethics that employers are seeking."

The nature of portfolio management has also changed, and this week, financial expert Mirko Visko, managing director of wealth management firm Generation Alfa in Switzerland, visited LAU Beirut to explain how.

"Investors have become more conservative," says Visko, who is based in Geneva but has clients in Lebanon. "Popular investments now are those that yield dividends and those outside the formal financial markets, such as real estate or property."

Visko explained that conservative investments now makeup 50% of his clients' portfolios, much more than they used to.

The adage of investing is 'diversify, diversify, diversify,' and Visko hammered that point home to a room full of business school students, faculty members and representatives from the business community who attended the lecture, advising "you should have more than 10 different funds in your portfolio."

It's not only important to manage your investments, he says, but to scrutinize those overseeing them. Researching your fund manager's background to see if he or she has put their money in the same funds, or has incentives tied to the performance of your portfolio, is the mark of a responsible investor, he says, as is reviewing their performance through various up and down markets. He also warns against investing funds with more than $2 billion dollars.

Indeed, companies run by families are a safe bet as they have more long-term objectives, whereas those run by shareholders are frequently preoccupied with cost cutting and restructuring. As an example, he cites BMW, a family owned business whose stock is up 30%, versus Renault, a shareholder owned business, whose stock is at historic lows.

Dr. Josiane Fahed-Sreih, director of the Institute of Family and Entrepreneurial Business that hosted the lecture, says when it comes to finance in Lebanon, many businesses are a family affair. "We thought this was important for students to know how to manage their family business and their investments," she said.

For those who are not risk averse, Visko recommends investing in foreign exchange, the best litmus test for a country's overall economic health. "People are getting out of U.S. bonds and into emerging markets such as the BRIC (Brazil, Russia, India, China) economies."

Addressing the students directly, he warned them not to become obsessed with job titles, but to out themselves in a position where they are constantly gaining expertise.

"I learned that investment needs sound decisions, and that not all people succeed," said Sabine Hamoud, a second-year business student who wants to go into management. "And that the spoon doesn't come to your mouth, you have to feed yourself," she added, saying that she planned to study up on some of the financial terms Visko used in the lecture.
 

"A strong, sovereign, stable, independent Lebanon is what the U.S. wants to help foster," explained Connelly. According to the ambassador, one of the most important ways to accomplish this goal is to increase trade and safeguard the economy. "Armed conflict is less likely to occur in a country where the economic situation is good," she asserted.

Acknowledging the difficulty of sustaining a viable economy in a politically volatile region, Connelly pointed to certain endogenous disabling factors such as slow download speeds, as barriers to increased trade. In spite of the fact that Lebanon is connected to the massive undersea India Middle East Western Europe cable system, the country's download speed ranks 147th out of 180 countries.

However, Connelly believes there is potential for a robust economy and expressed admiration for the Lebanese people's impressive resilience to withstand turmoil. "For such a small country--smaller than most U.S. states--the Lebanese make a huge impact all over the world."

She also pointed to Lebanon's highly developed civil society networks as a strong foundation for advocating change.

The ambassador further singled out the successful LAU-Middle East Partnership Initiative (MEPI) as one of the most valuable investments for the future of the country. The U.S. State Department-funded program offers financial assistance in the form of scholarships to students from across the Arab world. Recruited applicants must demonstrate exemplary leadership qualities as well as academic excellence.

"This was a very thought-provoking presentation," said second-year LAU biology student Joan Khoury. "I was surprised to learn that the U.S. is Lebanon's number one trading partner and that trade quadrupled from 2005-2010. ... I hope our politicians can put aside their differences and focus on fixing our economy."

When asked what she considers to be some of Lebanon's unique assets, Connelly responded on an optimistic note: "LAU is an example of Lebanon's immense strength - a student body that is often trilingual with a strong entrepreneurial culture - these are all great attributes for trade."

Connelly left her hometown of New Jersey for Washington in 1975 to serve as a page in the U.S. House of Representatives. She officially presented her diplomatic credentials to Lebanese President Michel Sleiman as the 25th U.S. ambassador to the Republic of Lebanon in September 2010. Referring to her exceptional ascension up the diplomatic ranks of the U.S. Foreign Service, LAU President Dr. Joseph G. Jabbra remarked with admiration, "Her story is an American story."

Business etiquette and protocol, taught by Sarah Shebaya and Serge Chamilian on the Beirut and Byblos campuses, respectively, aims to school students in business and social etiquette. They also learn about common courtesies, formalities, and entertainments in both professional and personal settings.

Consequently, the students plan the soirées -- from the invitation cards and seating charts, to the food and press releases -- with phenomenal intricacy, working closely alongside LAU's faculty and staff members to create hearty dinner parties.

"What we learned in this class is of great value because it's useful for us in our everyday life," says Dana Hijazi, a business student. "Now we know that the way we greet our future boss, or even answer a simple email, can shape our career."

Previous themes have included "Arabian Night"; "The Mask Within," a masquerade ball themed dinner; and "Silent Auction," which featured an auction for the benefit of the Home of Hope orphanage in Kahalee.

This exercise is meant to help the students make a safe transition from theory to practice, Shebaya explains. "I always tell my students that they are bound to encounter important people and figures in their lives. They need to conduct themselves accordingly and manage their social affairs properly," she says before adding, "Not to mention that throwing dinner parties following traditional etiquette and protocol can be a great boost for your PR."
 

Speaking at the agreement signing ceremony on January 28, LAU President Dr. Joseph G. Jabbra hailed the partnership as a "golden opportunity to advance the university's mission to give back to society."

LAU will provide customized education and training programs based on UT's client needs. Much of the training will be given to Libyan companies, universities or government bodies. The "watershed" deal is expected to usher in a number of similar agreements with the private sector, said Provost Dr. George K. Najjar.

Universal Training is "thrilled at the new partnership," said company representative Naji Bejjani. "LAU is one of the most prestigious academic names in the region. This collaboration will create a powerful synergy and allow us to promote executive training services to a wide client base."

The agreement is proof of the esteem in which LAU is held across the region, says Dr. Said Elfakhani, dean of the School of Business. "Our university is a renowned institution with a proud history of business education. As UT's clients seek first-rate, university-backed programs, partnering with us allows them to access some of the region's best business education practitioners."

The school's interaction with the business world will benefit faculty and students alike as part of its mission is to engage with the regional business community. "Such exchanges bridge the gap between theoretical knowledge and practical experience," says Elfakhani.

"When an LAU professor delivers a training program within a particular industry, he or she brings back experiences that enrich and strengthen LAU's pool of expertise and knowledge. Bringing back real-life, industrial experience enhances pedagogy in the classroom as well."

LAU's exposure in new markets could also result in increased employment opportunities for LAU students, he notes.

This cannot be viewed as a normal commodity bull market, but rather as gold slowly returning to its historical role as the universal medium of exchange, store of value, unit of account and ultimate extinguisher of debt. In other words: money.

Gold has been used as money essentially for as long as human civilization has existed. This monetary role, however, was usurped by the US dollar in August 1971 when US president Richard Nixon ended the convertibility of dollars into gold. For the first time in history, the entire planet had forsaken the stability of gold and replaced it with a system of floating exchange rates anchored around the US dollar, the new global reserve currency. But since the quantity of the US dollars in circulation varied continuously with economic cycles and US monetary policy, the dollar's value itself was varying and volatile, rendering it an unstable anchor.

The instability of this monetary system has had predictable and disastrous consequences. Without a stable unit of account, economic miscalculation pervaded the world economy, manifesting in endless cycles of boom and bust, and economic and financial crises. But perhaps the most damning indictment of our monetary system is the sheer devaluation of the currency on which it is based. Whereas roughly USD 40 were needed to buy an ounce of gold in 1971, about USD 1,650 were needed to buy the same ounce in 2012, meaning that the dollar has maintained only 2.5% of its value in gold terms over the last 41 years. Other currencies have barely fared any better, with the British pound, Swiss franc, and Japanese yen at 3.6%, 10.4%, and 10.6% of their 1971 values in terms of gold, respectively. The worst of this devaluation, however, is arguably still ahead of us.

The removal of currency's link to gold means its quantity can be increased with little restraint, and this has led Western governments down the road of low interest rates and ever-increasing public spending, budget deficits, and public and private debt, which have now reached all-time highs. These debts can only be sustained via the continuous devaluation of the currencies in which they are denominated, meaning that the future devaluation of these currencies is likely to be even faster than the past four decades.

This pace of devaluation raises serious questions about the suitability of these currencies as long-term stores of value and media of exchange. This is best evidenced by the resurgence of global central bank demand for gold, as well as the drive by various global central banks to repatriate and audit their gold reserves after decades of neglect. The MENA region, however, seems to lag behind the rest of the world in this trend.

Gold holds a precious place in the culture of the Arab world, long called 'zeena w khazeena' (ornament and store of wealth) and continues to be commonly used as money and dowry. Yet the region's central banks, sovereign wealth funds, and institutional and private investors continue to be under-invested in it, and have their main holdings in the ever-devaluing western fiat currencies, with predictable consequences. One can only understand the problem of rising prices in countries like Egypt, Jordan, and Tunisia as the result of the ever-eroding value of their paper central bank reserves. Lebanon, on the other hand, with its large gold reserves, has experienced less price rises.

Regrettably, most inter-Arab trade continues to be denominated in unstable Western currencies whose ever-changing value is an impediment to sound economic calculation and planning. As the most stable measure of value and most liquid asset, gold would make an ideal central bank reserve and facilitate inter-Arab trade on a stable and predictable basis.
Finally, gold offers the only true safe haven for institutional and individual investors, since gold is the only financial asset with no counter-party liability - the only asset whose value is not dependent on others fulfilling their financial obligations. As the global financial system and its currencies continue to look vulnerable to shocks and collapses, the serenity, independence, and stability of holding gold becomes ever more alluring.

These are but some of the reasons why gold is regaining its monetary role around the world, and why the Arab world must catch up. There is, however, a strong need for public and private institutions to take active steps towards utilizing gold as money and providing convenient options for individuals to benefit from returning to humanity's true money.

Dr. Saifedean Ammous is professor of Economics at the Lebanese American University, foreign member of the Columbia University's Center for Capitalism and Society, and director of Thabit Economics research and advisory (http://www.thabit-economics.ch/).
© Zawya 2013

LAU got permission to post this article that was first published on Zawya.

How can decisions be optimized with the incorporation of these techniques?
Both statistical and mathematical techniques are used to train managers or businesspersons in objective reasoning. For example, forecasting sales for the next year is a must to plan for budgets, human resources skills, inventory, physical facilities, etc... Risk analysis in financial markets is needed to comprehend the function of portfolios which present reasonable risks of loss and better opportunities for gains, etc... project management techniques help estimate project time durations, budgets, and deadlines with minimal loss.

Quantitative techniques provide guidance to define decision-making under risk (probabilistic reasoning), under uncertainty (utilizing behavioral reasoning and satisfaction indices), and under virtual evaluation environments (utilizing simulation techniques).

Are such methods applicable to all types of industries?
Quantitative techniques are universal in their use and can be applied in any type of business: construction and civil engineering, in military operations and target evaluation, in Non-Governmental Organizations for promotional campaigns, etc.

You have just written a book about quantitative methods. Tell us more about your motivations for putting these tactics into print?
During the last two and half decades of our teaching careers, my brothers (who taught at LAU) and I used several textbooks that address quantitative methods techniques and management science methodologies and skills. But none of these textbooks created links among the techniques, skills, fundamentals of business management, and role of the specific quantitative techniques.
We approached the mathematics in a simplistic manner, adding meaning and benefits to all applied concepts with their corresponding models to reach the often sought appropriate decision making; mathematics is a core competency to achieve objective, and systematic, and business-valued results.

Also, students are comfortable with the textbooks published onshore by their own professors and carrying their LAU university name; simply because they can better comprehend the material, and secondly because their retail prices are well below their counterparts. In fact, with a retail price of only 20% of the classical known books, both instructors and students act together to fight the illegal habit of textbook photocopying.

How has LAU supported you in your research?
Frankly, we owe our colleagues at LAU, the administration, and the Riyad Nassar Library in general and its acting staff in particular for their assistance and guidance in acquiring reference material, for their eminent patience in providing library facilities and for their committed help during all the long nights we were at their premises. They deserve all our respect and recognition.

This article is the first in a series of Q&As with members of the LAU community, that will be posted on a monthly basis.

Incorporating arassia jam into any sort of cuisine -- much less Lebanese cuisine -- may at first glance come across as outré. But Arassia, a Beiruti fusion cuisine restaurant launched by LAU students Sari el Halabi and Fouad Debs, proves that such unlikely mélange is entrancing, to say the least.

"The concept of fusion cuisine is not new per se, but very few restaurants have attempted to combine fusion cuisine with Lebanese cuisine in the region," says el Halabi, managing partner of Arassia.

It all started in the summer of 2011. After attending a Dubai-based training organized by LAU, tourism and hospitality management students el Halabi and Debs casually flirted with the idea of starting a business together. What started off as a sheer pipedream, however, quickly became the duo's sole preoccupation upon their return to Beirut.

In December of that same year, the twosome embarked on an eight-months entrepreneurial venture, planning Arassia with painstaking attention to detail. Everything -- from the food served, to the décor, to the furniture -- was planned entirely by el Halabi and Debs, with Fady Rebeiz, lecturer at the Department of Hospitality and Tourism Management, acting as the duo's consultant and financial patron.

"We did everything ourselves from scratch," says Debs, managing partner of Arassia. "We chose the couches, designed the wallpaper, hung the chandeliers, bolted the wooden windows in place -- everything."

Rebeiz helped the two budding executives with Arassia's menu planning and management, all the while providing them with the requisite training to oversee the restaurant's financial transactions and operations. "They came up to me after class one day and asked for my advice. They were so refreshingly determined and eager to learn, that I had to say 'yes,'" recalls Rebeiz. "I have been the restaurant's consultant ever since."

Despite an unfortunate robbery that befell Arassia a couple of weeks ago, the duo's forceful willpower keeps them from giving in to disheartenment. "A robbery is the lesser of two evils. The country's political instability is what we -- and all businesses -- should be on the lookout for," says el Halabi, adding that he and his partner plan to franchise their outlet to other Arab countries.

Speaking highly of the entrepreneurial pair's ambition and devotion, chairperson of LAU's Department of Hospitality Management and Accounting Dr. Said Ladki says, "These two young, bright men are bound to succeed. They want to make a difference, and they are well equipped -- through both education and work experience -- to meet the needs of today's market. I have no doubt that they are here to stay."

Arassia is located on the ground floor of Najjar Bldg., Saydeh St. in the heart of Achrafieh. For reservations, please call 01 33 33 90.

The five-day visit that aimed at introducing Fernandes to the university kicked off with a lively discussion that gathered deans and senior administrators of prominent schools of business from Lebanon and the region.

The event centered on the importance of accreditation in today's interconnected, globalized world, as Fernandes offered valuable insights drawn from his countless years of experience in the field.

Established in 1916, AACSB International is a not-for-profit organization of more than 1,000 collegiate schools of business, corporations, and other organizations in more than 70 countries devoted to the advancement of higher education in business administration and management.

Fernandes began his tenure with AACSB International in 2000 and has been instrumental in transforming the organization into the most highly respected global accrediting body for management education.

The importance of seeking and getting accreditation is, according to Fernandes, twofold; it has an internal and external dimension. "When a school readies itself for accreditation, it either re-evaluates, re-confirms, or re-decides its mission; that's the most important thing, because mission tells the outside world, and the inside world what the school means," Fernandes explained.

From an external standpoint, AACSB accredited schools become part of a unique prestigious global network. "This accreditation is nearly 100 years old, and it was started by the top business schools of the day like Harvard, Wharton and Columbia... schools that are globally strong and still AACSB accredited today," he said. "So when you are accredited, you become one of us, one of that group, and this is a very important potential differentiator."

Pursuing accreditation through AACSB is a rigorous and intensive process. By hosting and attending the event, LAU and business school administrators have demonstrated the strength of their commitment to educational goals and quality management education.

LAU President Dr. Joseph G. Jabbra stressed that accreditation is "a journey, not a destination" and emphasized the university's mission of continuous excellence and continuous self-improvement.

"Earning accreditation is a voluntary process requiring significant commitment, self-assessment, peer review and dedication from a school's administration," explained Jabbra.

In recognition of Fernandes' extraordinary leadership, the Academy of Strategic and Entrepreneurial Leadership created an award in his honor. The John J. Fernandes Strategic Leadership Award is bestowed upon a dean, provost, president or other senior academic leader who demonstrates exceptional leadership abilities.

The first awardee of this international accolade was LAU Provost Dr. George K. Najjar last October.

"In today's globalized world we have to speak the same language, to ensure the same high quality and standards," explained Najjar.

"LAU will continue to facilitate the process of pursuing excellence in education management in the country and in the region," he added.

During the visit, LAU facilitated individual meetings between Fernandes and interested deans of schools of business.

Dignitaries, faculty, family and friends witnessed eight teams from various Lebanese high schools pitch their business ideas to a panel of jurors in the presence of Central Bank Governor Riad Salameh.

“The best gift in life is the gift of giving—not necessarily money but giving of oneself so that others may have a better opportunity at life,” said LAU President Dr. Joseph G. Jabbra as he reaffirmed LAU’s role as facilitator in the mission of serving the youth of Lebanon.

Founded in 2001, Injaz Lebanon is a nonprofit non-governmental education program dedicated to empowering youth by providing entrepreneurial opportunities and is supported by well-known leaders of the Lebanese business sector who volunteer their time to serve the community.

“Investing in the youth is investing in the future,” says Kamal Katra, chairperson of Injaz Lebanon and vice president of Merrill Lynch/BOA. “One of the main roles of Injaz is to help make a creative and innovative generation.”

Conversely, Governor Riad Salameh praised the NGO’s efforts in encouraging and strengthening youth reminding them they are important pillars of the economy.

Dr. Said El-Fakhani, dean of LAU School of Business, stressed the importance of fostering innovation and an enterprising spirit among the youth.

“As the largest business school in the Middle East we are shifting the education paradigm to be more inclusive of a curriculum that emphasizes experiential learning,” he explained.
“We want our graduates to learn how to create new jobs—jobs of the future.”

In preparation of the event, each team was given a stipend of $1,000 and six months to perfect their business plan and create an innovative product, which were proudly displayed at outdoor booths during the daylong conference. Marketing acumen, inherent value of the product and the sustainability of the business model were just a few of the criterion the four-member jury used to select the winning teams.

The panel of judges included well-known entrepreneurs Donald Battal, Michel Daher and Najat Rizk and Dr. Walid Touma, assistant professor at LAU’s School of Business. Addressing a captivated audience Touma discussed the importance of perseverance. “Don't give up, win the war in your heart.”

“Universities are cradles of entrepreneurship,” he continued expressing palpable pride that LAU chaperoned the highly important event.

“I was surprised to see such a high level of professionalism among the competition, it was very inspiring,” said 16-year-old Lorenzo Amiooni from Saints Coeurs – Sioufi, member of the team L’Equipe.

Indeed, participants were also provided with insights from successful Lebanese entrepreneurs such as Tony Haddad, the founder of Technica, an automation service for food, beverages and other types of containers.

Haddad’s decision to expand his nascent company coincided with Israel’s 1982 invasion of Lebanon. Despite the hardship that accompanied the times, he refused to sacrifice accountability. “We never made any excuses. We always delivered on time,” he said.

“Don’t wait for better times, make the times better.”

The conference also included an interactive presentation by laughter yoga instructor Sabine El Jizi and an exhilarating performance by a six-member African music group.

Irwin auditorium erupted in deafening applause when Visio, a company that devised a nationwide recycling plan, was announced as the winner. 16-year-old Ghida Itani from Beirut Baptist School was in charge of Public Relations for Visio and expressed great pride at being part of the winning team.“It has been an amazing journey… I gained a real sense of confidence from this competition and I learned a lot about business,” she enthused.

All eight teams will be invited back to LAU for a two-day business workshop in the Fall.

Mendelek and Omeira, both of whom are majoring in business marketing, partook in the same workshop in LSE: Organizational Management. The course addressed the various aspects and elements that help to shape corporate employees’ performance, such as their motivations and personality.

In spite of this being her first time studying abroad, Mendelek says she felt “well prepared for this course,” and that both she and Omeira were among “the most diligent of the class.”

“The marketing and psychology classes we took at LAU helped us do better at LSE,” explains Mendelek. “Many students had some trouble catching up, but we were familiar with a lot of the prerequisite concepts well ahead of time,” she adds.

But there’s more to studying abroad than the knowledge you bring back home, maintains Omeira – especially when you’re in a culturally rich city like London.

“Living alone in London helped me to be more confident and independent,” she says.

“It helped me to better acquaint myself with other cultures and befriend people from different nationalities, which will ultimately help me to perform better in any future job, where healthy communication and open-mindedness are vital,” she explains.

Conversely, Rabbath, an economics major, took a Public Finance course, which explored the analytical methods for the study of the public sector, and tackled the role of the state, both in theory and in practice.

Akin to her colleagues, Rabbath seized this occasion to test herself and assert her autonomy, while acknowledging that having the opportunity to study in one of the world’s leading economics schools is a reward in itself.

Still, it’s not always easy to live alone, admits Rabbath.

“The main challenge was having to organize my time between studying and sightseeing,” she says. “London is beautiful, but it’s kind of stressful when you’re completely on your own.”

According to Dean of the School of Business Dr. Said Elfakhani, one of the main advantages of studying abroad is the exposure one gets to various other cultures and academic environments.

“We live in a global village, and Lebanon’s market is only a small part of it. This is why gaining international experience is crucial in order to help our students be exposed to business customs in other countries,” he explains.

“We, at the School of Business, prepare our students for such experiences, making sure that they will make the best out of it.”

The event was attended by various members of the institute’s Family Business Leaders Network, the first network in the Middle East that allows young family business leaders to converge in order to discuss issues related to the proper functioning of family businesses.

“Our main goal here is to better acquaint the participants with common problems and challenges that are encountered in family businesses, while trying to come up with creative solutions to these conundrums,” says director of the institute Dr. Josiane Fahed-Sreih, moderator of the event.

The discussed case revolved around a family owned bar, The Crowne Inn, originally founded by the fictional Harvey Johnston.

After Johnston’s retirement, the second of his four sons, Bruce, agreed to take over the management of the bar, while orally consenting to cover his parents’ second mortgage, as well as their health insurance and medical bills for the rest of their lives. Bruce, however, fails to live up to this agreement with his parents.

After considering different legal options, the main issue, according to Fahed-Sreih, remains the absence of any written succession plan originally; which would make it more difficult for Bruce to be held accountable for breaking his side of the deal.

Another evident problem is the valuation of the business, she adds – who is legally allowed to determine the monetary worth of this, or any given, business?

The questions and issues tackled through the study of the fictional case gave way to engaging discussions among participants.

According to Mira Frem-Frenn, member of the Family Business Leaders Network and second-generation member of the family owned INDEVCO Group, The Crowne Inn is a prime example of how there are hidden problems in every family business.

“Agreements, in terms of shares and numbers, may seem fair, but once you delve deeply into family issues, the equality is not always justified,” says Frem-Frenn as other participants agreed.

Another aim of the roundtable discussion is to create networking opportunities, chiefly among second-generation members of family businesses, along with helping the participants to liaise with other members of family businesses, in order to learn about different practices.

“Sharing opinions, regardless of how controversial they are, takes us temporarily out of our day-to-day thinking,” says Johnny Chalhoub, general manager of Chalhoub Pharmaceuticals s.a.l and Cesar Chalhoub et fils s.a.l., who regularly attends IFEB’s roundtables.

“The discussions are useful as they help us find solutions to problems we think are unique; and the divers profiles of the participants give us the advantage of a wider and more comprehensive view of these solutions,” he adds.

Sponsored by the School of Business’s Institute of Family and Entrepreneurial Business, the forum drew together family business owners, leaders and members, as well as their senior executives and close advisors, to discuss common experiences and learn from peers who have already established constitutions.

A constitution, according to keynote speaker Raphael Debbane, chairman of Desco Holding SAL-Debbane-Sakaily Group, outlines and clarifies the rights and responsibilities of family shareholders to the business and to each other. It provides “long term guidance and balance to family shareholders, creating a cohesive group that speaks with one voice, thereby ensuring the competitive advantage of a family-run business,” he told the audience.

After 55 years in business together, Debbane and his five brothers decided to create a constitution to “prepare the new generation to take our place.” With 18 children between them, it was no easy task.

With the help of an experienced consultant, the family met multiple times to design a document that would withstand the test of time. They put their shared values, family vision and key principles down on paper, tackling the often-sensitive issues of bloodlines, inheritance, and exits from ownership.

Nothing was left off the table during the two-year process. “There can be no hidden agenda in a family business,” he said. “Either the business is for the family or the family is for the business, and we decided on the latter. This means that entry into it is an opportunity, not a birthright,” said Debbane. Family members must perform to the same high standards as non-family members, work within a defined role, never report directly to an immediate family member, and have the appropriate education and experience for the post, he clarified.

“This is the finished product,” he added, holding up a thick book. “Fifty-one pages long, and all of us have signed it — after discussing every article, line by line.”

IFEB Director and Associate Professor of Management Dr. Josiane Fahed-Sreih gave further insight into the process and theoretical framework behind forming constitutions. They should deal with three main phases of business life, she said — entry to business, life together, and exit policies.

“No one size fits all,” Sreih said, “and you must look at the culture of a family when trying to set up the right governance structure, for example, or the right composition for the board of directors, in order to succeed in the long term.”

Carl Bistany, board member of SABIS and president of SABIS Educational Systems and Services, said his family also grappled with the corporate governance structure of their business. “Should we allow non-family members on our board? (We did, in the end.) It sounds easy but when you get down to discussing it and signing a document that will live on for generations to come, it’s a daunting task,” he said.

Other guest speakers included Wafa Saab, CEO of Tinol Paints International Co. SAL, who touched upon her personal experiences as a liaison between the first and second generations of her family business; Georges Mallat, partner at Hyam G. Mallat Law Firm, who discussed the legal aspects of drafting a family constitution and a shareholders’ agreement; Nicos Sarris, visiting from Cyprus, who talked about the need and use of a family business constitution from his experience as general manager of Eureka Group; and Georges Azar, managing director of GA Consult, who highlighted family business valuations.

Youssef Abillama, board member of Abillama Group and CEO of MMG Overseas Ltd., served as the forum’s moderator.

“Family businesses are the fabric of business anywhere in the world, and Lebanon is no exception,” SOB Dean Dr. Said El Fakhani told the audience, adding that Lebanese are known entrepreneurs.

LAU Provost Dr. Abdallah Sfeir thanked the IFEB for systematically addressing “all of the problems these families face as their businesses grow and succession looms on the horizon.”

Nadia Azzam, a part-time instructor at the School of Business, organized the trip for students taking her International Marketing class in order to expose them to a “real-life business environment.”

She says that the field visit to the airport required extensive preparation and a number of official permits, but gave students “the chance to see how theories learned in the classroom are translated and applied into everyday business situations.”

“In addition, these field visits prepare our students to network with key authorities in Lebanese Customs in the future,” she adds.

Officials gave students a detailed account of the airport’s import procedures, covering customs inspections, tariffs and penalties, warehouse protocol, and documents required for entry.

A guided tour followed, bringing the students to various offices where they had a first-hand look at systems of document processing, tax payments, and merchandise clearance.

Students got a close look into cargo planes, visited warehouses filled with boxes and parcels, and witnessed freight being inspected, cleared, and electronically scanned before delivery to importers and agents.

Following a briefing by Zaher Abi Ghanem, head of the duty-free zone, the students visited duty-free sections at both the arrival and departure areas.

Dr. John McGill, chairperson of the Department of Management, Marketing, MIS, International Business Systems, and Family and Entrepreneurial Business at LAU Beirut, who accompanied the students, agrees that students learn best from experience.

“The field trip to Beirut Airport offered students many benefits — learning in a new environment, putting knowledge into practice, and exposing them to experience relevant to marketing,” McGill says. “Overall, it was a job well done.”

"The visit was interesting and efficient because we saw a direct application of what we have studied in class,” says business major Ola Chahine. “This enabled us to better understand what happens on the ground."

Fellow business student Sarah Rajeh agrees, adding that she hopes the customs control system they learned about continues to move forward in a systematic way, because in Lebanon, she says, “theories need to be properly implemented.”

This is not the first time Azzam has organized field trips for her students. In May of last year, she took her international marketing students to Beirut’s port, where they were exposed to loading and unloading of containers from docked vessels. In 2010 Azzam’s students visited a company specializing in a full range of international marketing services.

Vardon, along with the management of the Phoenicia InterContinental Hotels Group in Lebanon, met with students of the program at the LAU Hospitality Management Lab, and held a press release there to officially announce his visit to Lebanon.

“A vital component of our program here is to manage chefs,” says Dr. Said Ladki, professor and chair of the Hospitality Management and Accounting Department.

“Introducing the students to prominent international chefs — and helping them to experience a real taste of the industry — is part of the delivery of the program,” he adds.

The hospitality management program at LAU began in the 1990s, as part of an attempt to aid post-war economic reconstruction by training students for careers in tourism and hospitality.

Today, the Phoenicia InterContinental Hotels Groups and LAU have formed an alliance, with the former recruiting and training the latter’s graduating hospitality management students for a range of positions.

Vardon, an icon of neoclassical French cuisine who collaborated with multiple-Michelin-starred chef Alain Ducasse for 14 years, “reformed modern cuisine as we know it,” in Ladki’s words.

Traditionally, up to three Michelin stars are awarded to restaurants of superior quality, as well as to highly accomplished chefs.

One star indicates “very good cuisine in its category”; two stars, “excellent cuisine, worth a detour.” The three-star ranking is reserved for “exceptional cuisine, worth a special journey.”

“There are no fixed rules for obtaining Michelin stars,” says Vardon, adding that the Michelin Guide takes into consideration numerous factors aside from cuisine itself, including restaurant design and marketing techniques.

Vardon says off-handedly that eligibility is a matter of filling out and signing a form, signaling “that you accept the rules of having no rules” and consent to being evaluated. The real challenge, he adds, is to keep the stars once you’ve obtained them.

Along with the Michelin stars comes an increase in expected revenues. Once one, two and three stars are awarded, a 30%, 40-45% and 70-90% profit increase may be expected. Obtaining the Michelin stars is not only an honor, said Vardon, but an investment.

Ladki agrees. “We want to teach students how to use the expertise of a professional chef in order to boost their sales in the industry,” he says.

The hospitality management program plans to host a three-stars Michelin-rated chef in December, in order to build on the students’ knowledge, hands-on experience and exposure to excellence.
 

When a single member jealously guards resources, for example, the result is often failure of the family business, with all of its attendant consequences for family relationships. For a family business to mature and pass down successfully to the next generation, its founder must have other considerations than the drive for money and control. Even if his ultimate intention is to hand over the reins to a single offspring, proper consultation with other members of the family and fair distribution of family wealth are crucial to success.

My research into family businesses that fracture or disintegrate due to mismanagement suggests that much of the time, the core problem is greed on the part of the founder — or principle player — once the business has achieved a measure of success. Destructive actions may be prompted, for example, by a belief that his branch of the family is being exploited by another, especially if the latter is led by a passive or less knowledgeable partner who nevertheless inherited an equal position.

The Gucci family business provides a case in point. The man who made the family name an international symbol of luxury and sophistication was Aldo Gucci, but it was his father Guccio who founded the House of Gucci. When Guccio was alive, he played his sons off of one another (believing fraternal competition would be an entrepreneurial stimulant), and when the time came to pass on the family business, he gave two of his three sons, Aldo and Rodolfo, 50% shares, excluding not only the third son but also the hard-working daughter, Grimalda.

The subsequent disintegration of the family is almost Shakespearian in its scope. Greedy and power-hungry, and convinced that Rodolfo’s share was wholly out of proportion with his somnolent contribution to the family business, Aldo began pooling company resources to start a business with his sons, using the Gucci name. Quarrels between Aldo and Rodolfo gripped the family, and were brought to a head when Rodolfo’s son accused his uncle Aldo of tax evasion. Aldo lost his chairmanship and ultimately went to jail, Grimalda sued her brothers, Rodolfo’s son was killed by a hitman hired by his wife, and the Gucci group, besieged by 18 lawsuits, was sold to Louis Vuitton – Moët Hennessy.

Unchecked greed is a dangerous stimulant for family business in the best of times. When the business is handed on to the second generation it can become particularly toxic. Families should consolidate and rely upon their family value system, while working in parallel on a governance plan that balances a business ethos on one side with familial collectivism on the other. Families should scrupulously avoid letting their boards of directors become battlefields, and focus instead on encouraging members of the board to work together effectively for the collective good. Successful family businesses create forums of communication at the family level, taking care to maintain fairness in the process.

Leaders of family businesses, finally, should avoid relying excessively on their own perceptions and counsel, and instead solicit input and feedback from a wide network of involved family members. And they should do all they can to sideline and contain greed, especially in points of transition between generations.  

Dr. Josiane Fahed-Sreih is an associate professor at the School of Business on the Byblos campus and the director of LAU's Institute of Family and Entrepreneurial Business.

Nadia Azzam, a part-time instructor at the School of Business, organized the trip for the students taking her International Marketing course in the spring semester. “The idea came as I was trying to take the students out of the book,” Azzam says.

Dr. John McGill, chairperson of the Department of Management, Marketing, MIS, International Business Systems, and Family and Entrepreneurial Business at LAU Beirut, agrees that business students learn best from experience. Quoting Confucius, he says: “I hear and I forget. I see and I remember. I do and I understand.”

After a check of the special entrance permits by the port authorities and Lebanese security forces, Maroun Abi Aad from the port management handling and storage facilities welcomed the students and accompanied them throughout the visit.

The first stop was at the Beirut Container Terminal Consortium Center, where the terminal manager, Segean Jabbour, an LAU graduate, explained how vessels are closely followed up from their respective port of departure until they reach the Beirut port to prevent accidents, delays and traffic jam.

Jabbour and his team explained the terminal’s operations and how the container tracking system is used to optimize the shipping, loading and discharge procedures.

“Now, after I have visited the port, I learned better about the process shipments go through before the goods reach the buyer. I realize now the importance of the Beirut port in the region,” said student Mohammad Imad Sbeity.

Another student, Pascal Mantoufeh, added: “I was fascinated by the advanced technology used at the container terminal and how well organized the port management is.”

Then, a bus took the students, who were accompanied by additional port security members, closer to the cranes, where they witnessed how the downloading of the containers was done.

The students were excited by the idea of going up on one of the cranes. However, this was not possible as the group was large and not fully equipped with helmets and special phosphorescent jackets.

The students’ interest in the visit was reflected by the numerous questions they asked.

This is not the first time Azzam is organizing field trips for her students. In December 2010, she accompanied her marketing students to a certified leading company specialized in a full range of international marketing services. Detailed explanations of shipping, packing, loading, and customs formalities preceded a tour of the company’s warehouses, packing and storage facilities.

“I am planning other field visits in the future as they strengthen the exposure of our students to the business environment and give them the chance to evidence how the theories learned in the classroom are translated and applied into real-life business situations,” Azzam says. “In addition, these field visits encourage our students to network with successful market leaders.”
 

Chaker is also the founder and managing director of Middle East Consultancy Agency (MCA) People Solutions, which helps equip professionals with leadership skills.

He lectured to a packed auditorium of alumni April 29 at LAU Beirut, explaining that his tips can be applied in both professional and personal settings.

Chaker said the rules of etiquette are staples of all religions that have adopted some form of the golden rule that tells us to treat others how we would like to be treated.

“I think this is obsolete,” he said. “With globalization, it’s changed. I can’t treat a Japanese the way I treat a Lebanese or Syrian.”

Rather, he said, people should follow the platinum rule: treat others like they want to be treated. “How do you know how they want to be treated?” he asked the audience. “Learn their culture.”

Chaker listed a number of points that help people achieve professionalism in the workplace. The first and most important among them is punctuality, he said. Others include speaking and writing clearly, apologizing for errors or misunderstandings, accepting constructive criticism and feedback, presenting yourself pleasantly with good hygiene, choosing attractive (but not distracting) clothes, and avoiding even the smallest lies at all costs.

“If you lie once, you lose your credibility,” he said.

First impressions, he continued, are lasting impressions. It’s a point to keep in mind for your appearance, punctuality and attitude when meeting new people, but it shouldn’t be used to form judgments.

To leave a positive impression, he said, stand with a confident posture, make eye contact, keep body movement to a minimum, wear clean clothes and polish your shoes. Perhaps, above all, have pleasant expression.

“Smiles make miracles,” he said. “People tend to trust a smiling face.”

Chaker introduced what he called the rule of 13 for personal props and accessories. People should not wear more than 13 items, he said, including two earrings, a watch, bracelet, belt, buckle, shoes, adornments, pins, scarves, rings, purse, briefcase and other things.

Try to meet someone new every day, Chaker explained, because every person you meet offers the opportunity to learn from him or her.

When you go out with people, he said, don’t spend all your time on the phone, talking or sending messages to others.

Finally, he said, “be yourself and be proud of it. Remember, our goal is to build relationships.”

The event was the fourth installment of the “Keep Learning” Alumni Lecture Program organized by the LAU Alumni Relations Office.
 

The selective five-day (May 1–5) seminar brings together top students of more than 70 nationalities from Europe, Middle East and Africa.

The students collaborate in “running” a multinational business (based on an actual business case study), while developing their management and financial skills through interaction with P&G executives.

Travel and accommodation expenses for all participants are paid by P&G, and competition for slots is intense. El Feghali was one of 250 Lebanese applicants this year. After several interviews, he was shortlisted, then finally selected.

“I feel very lucky — even overwhelmed — to have represented LAU in Geneva,” he says. “I never thought I’d be the only candidate selected among thousands of applicants from the region.”

The selection process included multiple stages. The initial screening was done through verbal and quantitative reasoning tests as well as an IQ test.

In subsequent interviews with P&G’s Financial Planning and Analysis Group manager, along with other P&G managers in the company’s Lebanese and Egyptian offices, El Feghali was asked to solve a number of case studies to demonstrate financial and analytical reasoning.

P&G has been hosting the European Financial Leadership Seminar annually since 1991.

The company gave a presentation on financial careers at LAU Byblos in mid-January, at which Yamen Fakhredinne, financial manager at P&G, encouraged LAU students to apply to participate in the spring seminar. The presentation was organized by the LAU Byblos Student Services (Career Guidance) Office, which assisted El Feghali throughout the application and selection process.

“LAU helped me a lot through its career guidance office in Byblos, led by Ms. Rana Sakr,” says El Feghali.

He will share his experiences with fellow students during a presentation on May 23, at 12:00 p.m., in the Frem Civic Center, Room 205, at LAU Byblos. The event will also include presentations by student Mabelle Abi Ramia who attended the P&G Academy in Lebanon last year, and LAU graduate Antoine Choueiry, who currently works at P&G.

To learn more about the event and to sign up, contact Rana Sakr, LAU Byblos guidance officer, at rana.sakr@lau.edu.lb or ext. 2350.

The most recent workshops organized by the Cooperative Learning Center at LAU’s School of Business trained business students, graduates and faculty members on communication and presentation skills (in April), and job interview techniques (May 11–12).

“The mission of the center is to contribute to LAU’s academic excellence by providing services that support both students and faculty in achieving their academic goals,” says Dr. Tarek Mikdashi, dean of LAU Beirut’s School of Business, who oversees the center.

Through the various services it provides free of charge, CLC serves as a cornerstone for the growing School of Business at LAU Beirut.

The center tutors students, proctors exams, provides assistance to business students with special needs, schedules rooms and courses, and coordinates the Executive Master of Business Administration program.

CLC also works to create market awareness of LAU’s role in the business community, participating in career fairs and other exhibitions where the center represents the School of Business.

Last month’s workshop on communication and presentation skills consisted of 12 hours of instruction, divided into four sessions. Attendees described the experience as fun, friendly and interactive.

Participants had the option of attending weekly sessions on Wednesdays or Saturdays.

Hisham Hashash, the CLC senior academic assistant, expressed delight with the success of the workshop, which follows on that of the enormously popular Microsoft Excel seminar.

“The number of attendees has been huge and the level of seriousness and cooperation high,” says Hashash. “There has been a longstanding need for workshops of this kind.”

Manhal Saleh, an M.B.A. graduate, was excited to participate in the training program.

“It was an exciting and beneficial experience,” Saleh says. “I advise everyone to enroll in these workshops.”

The workshops provide the technical expertise that business students are likely to require in current or future occupations, according to Vicken Bahlawanian, CLC graduate assistant.

“The sessions offer practical training as well as learning theories,” Bahlawanian says.

CLC continues to plan for future training programs. “The center has scheduled upcoming workshops in effective team building, time management and conflict resolution management,” Mikdashi says.
 

Organized by the Institute of Family and Entrepreneurial Business at LAU’s School of Business, the panel discussion — titled “Succession Planning in Family Businesses” — featured three family business leaders and their perspectives on succession based on their lifetime experiences.

“In succession planning, the process of planning is more important than the plan itself,” said Dr. Josiane Fahed-Sreih, founder and director of IFEB and associate professor of management, in her opening remarks. “Unambiguous goals should be set in family business,” she added.

The event was organized to launch the Family Business Leaders Network under the auspices of IFEB — the first of its kind in the Middle East — whose objective is to gather young family business leaders to share best practices and solutions.

Rania Frem-El Khoury, executive director of Georges N. Frem Foundation, a non-profit organization that promotes civil society in Lebanon, presented FBLN’s aims and encouraged audience members to apply.

She highlighted the network’s code of conduct: confidentiality, respect and professionalism, participation, trust and openness, and non-solicitation.

“There is a study that says 85 percent of family businesses are not passing to the third generation,” said the event’s co-moderator (along with Fahed-Sreih) and FBLN’s vice chairman, Emir Youssef Abillama, who is the CEO of Maintenance Management Group (MMG). So, “how did you [successfully] guide your children to make the transition?” he asked the panel of three family business leaders.

The panelists all agreed that times are much different from when they joined the family business.

“In my case, there was no other choice but to join the company,” said Khalil Fattal, president of Fattal Group, a distributor of premium brands in the Levant. But “with our [my and my brother’s] own children, we wanted to give them the freedom to discover themselves better and choose a career on their own.”

“The most important thing is to discover your talent, and I insisted that their decisions would be welcomed by us with love and support,” Fattal added. Eventually, his son joined the business of his own free will.

Emir Samir Abillama, CEO of Al Amir Holding, specialists in the lift and elevator business — who has four sons, a nephew and two nieces — also felt that each child should be given the freedom to decide whether or not to join the business. The third-generation family members are now active shareholders and have brought diversification to the company through their individual professions.

“It makes sense that the new generation goes out on its own, has its unique experiences, and brings those back to the company,” Fahed-Sreih summarized. “That’s what we call added value.”

Antoine Boukather, president of A.N. Boukather (exclusive distributor of Mazda and Piaggio), said he transitioned the family’s automotive sales business to his two sons, Anthony and Nicolas, relatively smoothly. Each son is responsible for a separate operation, while he remains chairman of the Board.

The floor was then opened to the audience for questions and answers for the remainder of the event.

In 2011, FBLN will be conducting the following workshops: “Managing the Changing Corporate Culture as a Young Leader” and “Employee Stock Ownership Plans in Family Businesses.”

The Allied Academies is a non-profit federation of 14 affiliate academies that publishes 17 different journals in various fields of business.

Nasr, 25, graduated in the spring of 2010 and now works as an executive assistant in the Dean’s Office at the School of Business (Beirut campus).

“When my advisers and I were picking the topic in the beginning, I knew I wanted something that would be published or at least that someone would be interested in reading,” she says.

She decided to focus on determining what type of workplace commitment is more vulnerable to stress and what type leads to a longer career path.

“What kind of commitment does a person have to his job? Is it for the money? Is it for the culture of the organization he’s working for? Or is it out of loyalty to the organization? How is each type affected by stress?” Nasr explains.

The paper, titled “The Relationship between the Three Components Model of Commitment, Workplace Stress and Career Path: Application to Employees in Medium Size Organizations in Lebanon,” took Nasr a year to write.

She was surprised by the lack of literature on the subject, not just in Lebanon, but also in the Middle East.

Her primary research came from the results of 100 survey questionnaires with full-time and part-time employees working in medium-size organizations in Lebanon.

After getting positive feedback from Dr. Silva Karkoulian, her adviser and an associate professor at LAU’s Business School; Dr. Leila Messara, project reader and an assistant professor; and Dr. Tarek Mikdashi, the school's dean in Beirut, Nasr sent a manuscript to the Allied Academies.

“Her paper stood out because of interesting and creative findings in her research,” says Karkoulian, who has known Nasr since 2007, as her teacher and co-author of another paper.

After the Allied Academies accepted her paper, Nasr was invited to present at the organization’s fall 2010 international academic conference last month.

“I was already delighted with the idea that my paper had been accepted. But one day before traveling, I found out that I had also won the Distinguished Research Award,” she says.

Nasr’s paper will be published in the Journal of Organizational Culture, Communications and Conflict.

Jammal Trust Bank will offer one business student a full scholarship throughout her years at LAU, and Byblos Bank will sponsor 50 percent of the 2010–2011 tuition fees of five business and two engineering students.

On October 25, Anwar Jammal, JTB chairman and general manager, signed a gift agreement with LAU President Dr. Joseph G. Jabbra, to offer the Ali Abdullah Jammal Memorial Scholarship, named after Jammal’s late father, Ali Jammal, JTB’s founding chairman.

“What’s better than education? You give a person an education, and then with that they should be able to conquer the world themselves,” said Jammal during the meeting, which was held at LAU Beirut.

Jammal hopes that at least one of the beneficiaries will feel morally obligated decades later to start a scholarship fund in order to pass on their gift to deserving students.

“LAU is growing because of people like Anwar, who kept his father’s legacy,” said President Jabbra.

Earlier this month, another major Lebanese bank, Byblos Bank, offered $60,000 toward the Byblos Bank Annual Scholarship Grant to support business and engineering students. The bank contributed the same amount both in 2007 and 2008, in line with the vision of its chairman, Dr. Francois Bassil, to support the future of Lebanon through education.

For this academic year, seven students were anonymously chosen from among previous financial aid applicants to receive a sponsorship of half of their tuition.

The students met with Byblos Bank officials at the Beirut campus on October 14 and expressed their appreciation for the donation.

Rita Chalita, head of Retail Banking and Corporate Social Responsibility, and Jihane Khoury, talent manager, represented Byblos Bank at the meeting, which was organized by the LAU Development Office in coordination with the Financial Aid and Scholarships Office.

The two representatives explained the vision of Byblos Bank to the students in terms of supporting the education sector in Lebanon, and talked about internship opportunities at the bank.

“It is thanks to generous gifts, like those received from Jammal Trust Bank and Byblos Bank, that needy and deserving students from all Lebanese regions are given a great chance to have access to our university’s academic excellence,” says LAU Associate Director of Development Rami Majzoub.

The letters of intent included plans to offer an LAU Executive Master of Business Administration degree in Qatar, an executive-training program that could lead to an E.M.B.A., and a massive program to train teachers and principals at over 130 independent schools in the country.

"This is a great opportunity for all of us," said Dr. Joseph G. Jabbra, LAU president, after signing the letters of intent with Osama Hadid, the managing director of Al Jaber Engineering in Qatar and Al Jaber Group partner who headed the delegation, inside Irwin Hall's Faculty Lounge at LAU Beirut. "We're looking forward to a closer, more effective and productive relationship," added Jabbra.

The launching of the three programs, which is being overseen by the University Enterprise Office at LAU, is expected to take place in early 2011. UEO has played a major role in conceptualizing this cooperation and facilitating the process with Al Jaber Group.

The signing of the letters of intent followed a series of visits as well as meetings between UEO and representatives of Al Jaber Group and of LAU's School of Business, specifically Dr. Tarek Mikdashi, dean of the school in Beirut; Dr. Wassim Shahin, dean of the school in Byblos; and Dr. Elias Raad, chairman of the Business Studies Department in Byblos, director of the E.M.B.A. program, and director of the Institute for Banking and Finance at LAU.

LAU's School of Business will be the caretaker of the E.M.B.A. and executive-training programs. Faculty from the school will travel to Qatar to provide the same E.M.B.A. program that is also offered at LAU.

The teacher-training program will be coordinated by LAU's Teacher Training Institute and the School of Arts and Science, and will prepare instructors to meet teaching standards set by the Qatari educational authorities.

"This is a mega project and LAU will provide the academic support and teaching body," says Dr. Walid Touma, UEO director.

LAU was chosen to provide the three-component package by Integral Training and Development, a member of Al Jaber Group, in response to the country's Qatarization program, which aims to develop the Qatari workforce through education and training.

"It's an objective of the government in Qatar to provide more regular education for its students to cope with the working environment in the country," says Mohammad Nagib, the training and development manager at Integral Training and Development. "The students are usually sent outside Qatar for training, but we thought, 'Why don't we bring a university to Qatar that could provide the same?'"

LAU officers, Al Jaber Group and UEO members, and others involved in the project after the signing event.

Speakers praised the prominent business leader outside the new Essam Fayez Makarem Suite, comprised of the offices of the dean and his assistant on the top floor of the Business Building, for his continued support of education in Lebanon.

“We are gathered here today to honor a person who embodies the gift of giving,” said LAU President Dr. Joseph Jabbra during the ceremony, which was organized by the university’s Development Office.

“[Makarem] is a person who has been serving Lebanon, his community, and his society by his good deeds,” Jabbra added. “What is a better, a more noble cause than the cause of education? So, we are privileged today to honor Sheikh Essam Makarem because of his commitment to academic institutions.”

Makarem was born and spent much of his life in Nigeria where he established several successful businesses including Moukarim Metalwood Factory Limited, a furniture-manufacturing company; Mouka Limited, a foam-manufacturing outfit; and Nigeria Gas and Steel Ltd., which produces steel pipes and sheets, wires and nails.

“To name a space at the School of Business is not an easy decision as one needs to keep in mind what serves best the interests of our university, our school, its students, and our community,” said Dr. Tarek Mikdashi, dean of the Business School in Beirut.

Makarem said he chose to support LAU’s School of Business with the hope that the students will go on to help ease “economic and financial hardships” that many countries are suffering from.

“It is our duty to support institutions that promote and encourage education, and from which future generations will graduate, with the vision to perhaps offer solutions to today’s economic ailments,” he said.

“I have chosen LAU to materialize my belief in such support,” he added, “[because] this university has proven to be one of the world-class institutions of higher education which is providing our new generations with a second-to-none education, allowing them to become achievers in their careers and leaders in their society.”

Organized by LAU’s Institute of Family and Entrepreneurial Business, the seminar gathered business owners and entrepreneurs to hear Dr. Joseph Astrachan, executive director of Cox Family Enterprise Center at Kennesaw State University in Georgia, USA, share his long-standing expertise and professional advice.

In her opening note, Dr. Josiane Fahed-Sreih, IFEB director, highlighted the significance of the seminar, marked by the presence of E.M.B.A. students from Kennesaw State University who were visiting Lebanon. The 18-month E.M.B.A. program at Kennesaw State takes 15 students, who hail from family businesses worldwide, to the home country of each student, allowing them to learn firsthand about family dynamics and communication.

In presenting his study “Separating Myth from the Reality of Family Business,” Astrachan refuted the myth that planning assures effective succession. “The three keys to successful succession are: Board of directors, strategic planning, and family meetings, which I dub as the ‘Diet,’ ‘Exercise,’ and ‘Don’t Smoke’ of family business,” he said.

Strategic planning entails opening the lines of communication with the top management about the direction of the business, while family meetings help to set expectations, Astrachan explained. He added: Board meetings, ideally taking place three–six times per year, are meant to keep management accountable. According to research, having two outsiders to each family member on the board improves performance, not to mention that outsiders increase financial value.

“Family businesses don’t survive because of bad family dynamics and hard-fought trust,” Astrachan said, adding: “Relationship quality is needed to withstand the stress on family life and is highly dependent on the frequency of communication, average length of each communication, and average depth of communication.”

“It is important to be aware of the challenges and deal with them as they arise through open communication,” commented one of the attendees, Momtaz Daaboul, managing director of his Damascus-based family business, Madar Coil Coating.

For Georgina Ibrahim, a self-employed soft-skills trainer and a faculty member at LAU’s School of Business in Beirut, the seminar allowed her “to gain an insider look into family businesses.” Although it depends on each case, “there is no doubt that the role of communication is paramount for the success of any family business,” she added.

Since its inception, IFEB has had a packed calendar of activities. High on the list are educational programs and seminars about family business featuring local and international speakers.

This year, IFEB is launching the Family Business Network and an arbitration chamber to assist family businesses in conflict resolution.

Esteemed LAU Board of Trustees member, Lebanese-born Joseph Maroun gave an inspiring talk to School of Business students, faculty and staff on April 16, at LAU Beirut, about his rise to the top of the American baked-goods industry with his company Caravan Trading, after experiencing a successful and glamorous career as a pilot at Pan American airlines in the late ’60s and ’70s.

Last month, after more than 30 years since first starting Caravan Trading Company, Maroun sold his baking empire to an eager buyer that paid him exactly what he asked for, saying: “The joy of it all is the number that we sold the business for: $68 million up front. They gave my kids three-year contracts and doubled their salaries.”

“When you have a dream you have to pursue it at odds with anybody,” he told the crowd. “I wanted to achieve what I set out to do, and I did.”

Caravan sells products to some of the largest baking retailers and consumers in the United States, including George Weston Bakeries, Thomas’, Bimbo Bakeries (Oroweat), Otis Spunkmeyer, and the Department of Defense. The company is the trusted provider of Meals Ready to Eat for the U.S. military, and the creator of the Ready-To-Go Emergency Food Kit for disaster situations.

His recipe for success

Maroun immigrated to the United States as a teenager in the 1950s, in pursuit of an education in aeronautics, and in 1963, he graduated from the Pittsburgh Institute of Aeronautics with a degree in aircraft maintenance engineering.

With a passion to fly, Maroun earned instrument, private, and commercial licenses and a certificate in air transport, and his determination landed him a career in aviation, where he worked as engineer and pilot with such giants as Pan American Airways and the Federal Aviation Agency.

“I only wanted to fly,” he said.

While he was working for Pan Am, him and his wife missed the simple things from Lebanon, especially pita bread. They decided to try and figure out how to make it at home. It took them six months of trial and error — before someone told them to use yeast.

Maroun came to Beirut and learned the tricks of the trade during his weeks off, and quickly decided he wanted to establish his own company.

He was so ecstatic with the result, he decided he wanted to quit being a pilot and open a bakery — he was only in his mid-30s at the time and had already been made a captain. But it was a decision he felt strongly about.

“After being a pilot, you become a gambler,” he explained to the attentive audience. “As a pilot you gamble a lot, like on the weather when you’re flying.”

After quitting, he bought an old pizza oven — “because I couldn’t afford anything else at the time,” he said — and put his engineering background to use by making all the necessary modifications to it.

“I couldn’t afford employees so I called up all the pilots and stewardesses I knew and asked them to come and help me if they weren’t flying,” he told the smiling listeners. “I had a mix of pilots and stewardesses making pita bread with me.”

The rest, as they say, is history. “Within six months of opening, I was forced into automation,” explained Maroun, recalling the day he got a call from one of American’s biggest supermarket giants, Safeway. “Within six months, we had a semi-automatic plant together, running 24/7.

Maroun has served on LAU’s Board of Trustees since 1996. The couple founded The Joseph and Carmen Maroun Endowment Scholarship Fund to ensure equal opportunities to deserving, financially disadvantaged LAU students.

“Vision, leadership, and values all pay off. The value of what Joe has done to give back to society — well Joe has done it in a very honorable way,” said Dr. Walid Touma, an assistant professor in the School of Business and director of the University Enterprise Office, at the end of Maroun’s talk.

Touma looked toward the students and told them: “There is a humongous human being in all of you. You just have to play it.”

Majzoub was selected from a pool of some hundreds of candidates to be part of the Forum of New Leaders for Tomorrow, which “aims to be a unique, multi-stakeholder community of Arab and African young leaders who are shaping the global agenda and implementing a better cooperation between Arab and African Countries in the framework of the new South–South Cooperation,” according to an announcement on the Crans Montana Forum’s website.

During an April 10 session of the Crans Montana Forum on Africa, Majzoub gave a presentation titled “The South–South cooperation, the prospects of a rallying role via the Lebanese example.”

He was one of three people who gave short presentations as part of the session on “The New Leaders: How to Take Advantage of the South–South Cooperation?” and one of the four members of the Lebanese delegation.

“The idea was to focus on enhancing the South-South cooperation by enhancing the Africa–Middle East cooperation,” explains Majzoub, who analyzed the strong bonds developed among the countries of Africa and Middle East just by the Lebanese diaspora.

“I started the presentation historically when in the late 19th century the first wave of Lebanese immigrants arrived in West Africa thinking they were arriving in South America as they had set out as merchants,” says Majzoub. “In West Africa, the Lebanese settled in countries like Senegal where they established strong businesses and were able to be successful in their adopted country — but never forgot their own country.”

Majzoub says the success of the Lebanese in West Africa is an example of how a community can succeed in “strengthening the bonds between two continents.” He says the reason he talked about this was to inspire other communities in Africa by the Lebanese model.

Since 2008, Majzoub has developed an international career in JCI, being the first Middle Eastern person to hold such positions, starting with his election as international JCI vice-president assigned to Europe. He is currently serving as JCI UN affairs commissioner, acting as liaison officer between JCI and the United Nations for Africa and the Middle East.

JCI in Lebanon has approximately 200 members and is an initiative that Majzoub says kicked off 10 years ago, but was officially recognized by the Lebanese government five years ago. An international organization with presence in more than 120 countries, with about 200,000 members and hundreds of thousands of alumni, it focuses on offering young active citizens between 18 and 40 years of age the opportunities to develop their leadership skills and bring positive change to their societies.

The Crans Montana Forum on Africa is a unique community of young leaders from the Arab and African countries, identified thanks to their exceptional professional achievement and proven leadership experience in business and government.

The theme of this year’s forum was: “Africa after the London & Pittsburgh G 20s: The New Economic Parameters, Strategies with the New European Commission & Parliament.”

This year, the forum was held for the first time in Brussels — it was in Bahrain last year — and this offered a key opportunity for African, and international government officials and businesses, to assess the most influential of Africa’s stakeholders. This encompassed attracting some of the most influential leaders in business, government and civil society with the goal of contributing toward humanely making Africa a better place for foreign investment and business.

“In this new world of globalization, a South–South cooperation does not have to come at the expense of a North–South cooperation — economically or politically — because a strongly bonded Africa and Middle East can have better ties economically and politically with the North,” says Majzoub.

Choueiri, who died from a long-term illness on March 9, established an impressive repertoire as an advertising agent for many Arab media outlets including LBC television, Al-Jazeera, and newspapers An-Nahar, As-Safir and Al-Hayat.

“The legacy of Antoine Choueiri is a heavy one — I don’t envy you,” said Elie Samia, director of the Byblos Guidance Office, while addressing members of the Choueiri family. “You have to be able to fill it and carry it to set another milestone of greatness.”

Choueiri has been praised for his philanthropic work in Lebanon and opening up new advertising markets, while others have criticized him for creating a monopoly of advertisement sales in the country.

The event was organized by the Byblos-campus Student Council.

“We decided to commemorate the late Antoine Choueiri for his life of achievement … because in our opinion, legends never die,” said Elias Maalouf, the council’s president.

LAU music instructor Joseph Khalife performed a short piano piece before giving the floor to Georges Jabbour, president of the International Advertising Agency, who gave a presentation on advertising in the Middle East. During his presentation, he described advertising as “the essence of democracy.”

“We cannot have a free and independent media if we don’t have free financing, and advertising can secure free financing,” he said.

Following the presentation, the Student Council presented a short film it prepared highlighting some milestones of Choueiri’s life, before offering his family an honorary plaque.

“In the next three years, we’re going to need over 10,000 employees in different capacities,” said IHG area general manager, Haitham Mattar. “In Lebanon, we’re negotiating with investors to build new hotels across the country and that’s great news for students who are going to be looking for jobs in our industry.”

The IHG team was given a tour of the hospitality facilities at the campus, before being served lunch, prepared by students, inside the hospitality lab.

“It is extremely impressive to see the setup that you have in this facility,” Mattar said. “Our minds are blown with what we’ve seen.”

Dr. Said Ladki, chair of LAU’s Hospitality Management/Accounting Department, addressed the IHG representatives before lunch was served, and explained how the program was born in the 1990s to help rebuild the country’s economic infrastructure following the civil war, by training students in the hospitality industry.

“We know we are the best,” Ladki said, after describing the program’s state-of-the-art labs and software students use for training.

Following lunch, Mira Sinno, IHG area training manager in Lebanon, and Nicola Everitt, MENA talent resourcing manager, attempted to lure students to the company by using a PowerPoint presentation to highlight some of IHG’s most luxurious hotels, while describing its mission and goals.

“I, and I’m sure everyone else who works for InterContinental, are pretty proud to work for our group,” Evirett said. “We’re very passionate.”

During the presentation, the IHG representatives announced a new program recently initiated for graduating hospitality students in the region to rotate between three eight-month management positions at different IHG brand hotels across various countries in the Middle East and Africa.

The two-year MENA Graduate Future Leaders Program was first launched last year, and accepted a total of six students from the region. Evirett said 18 students will be selected for this year’s program which will start in November.

IHG operates roughly 4,400 hotels across the globe, under several brands that include the InterContinental, the Holiday Inn and Holiday Inn Express, the Crowne Plaza, Candlewood Suites, Hotel Indigo and Staybridge Suites. The group owns only one percent of those hotels and manages 14 percent, while the remaining 85 percent are franchised.

For more information on the graduate program or other career opportunities with IHG, please visit this page.

“Lack of trust is a real killer in a family business,” said Fahed-Sreih, who is also an associate professor of management at LAU, while explaining that the issue has torn apart families and destroyed businesses. “If you lose trust, the task of rebuilding it is one of the most difficult.”

The event was a part of a four-day program from March 17–20 organized by the institute, including a public conference on “Managing Family Wars” (March 17) — supported by the Indevco Group — followed by two seminars.

Held on March 18, the first seminar on “Family Wars: Managing Conflict and Risk in the Family Business” was addressed to family business owners and leaders, and their top executives and close advisers. The second seminar from March 19–20 focused on “Building Family Business Intelligence,” and was designed for business people, organizational leaders, professional service providers, educators and government officials.

Established under the School of Business, IFEB regularly holds seminars focusing on different issues in family business, while taking into account the cultural aspects of the participants who are mostly from Lebanon — where 95 percent of private businesses are family run, but usually include family business owners from other parts of the region as well.

“If you have an issue, we discuss it, but we don’t get personal,” Fahed-Sreih said, addressing the 18 or so participants that took part in the first seminar. “When it goes personal, the issue gets more intense.”

In addition to Fahed-Sreih’s presentation, the first seminar included a lecture by Grant Gordon, director general and co-founder of the Institute for Family Business in the United Kingdom, and co-author of Family Wars: Classic Conflicts in Family Business and How to Deal With Them. He presented strategies to help families run strong and viable businesses while avoiding conflict.

The second seminar on building family intelligence was led by Dr. David Pistrui, industry professor of business at the Illinois Institute of Technology in Chicago, who also serves as the Coleman Foundation Chair in Entrepreneurship.

Building family intelligence involves several aspects like innovation, the role of technology in business, and an entirely new concept called “design thinking.”

Pistrui explained that design thinking involves approaching business through multiple perspectives — such as sociology, anthropology, business administration, rapid prototyping, ethnographic research, and technology — and meshes them together to create a broad perspective.

“It’s a framework relevant to family businesses of two to 2,000, to assess problems and identify opportunities to create value around solving problems,” Pistrui said.

Pistrui, who has built an impressive repertoire over the past 25 years lecturing on issues related to family business across the Middle East, said design thinking “is a universal concept but culture plays into it regarding how you use cultural understanding to address opportunities to resolve conflict and innovate, both within terms of the business, and in terms of the family.”

The daylong public conference, which was held on March 17 to launch the two seminars, included a keynote address by Minister of Tourism Fadi Abboud who emphasized the importance of peaceful relations among family members in a country with a tradition of strong family kinship.

“Families are the cornerstone of society, and the well-being of families is a key element in moving toward a civilized society that can promote growth and development,” Abboud said.

The floor was shared throughout the rest of the day by about a dozen business leaders in Lebanon who shared their experiences and expertise on a variety of aspects in business ranging from the dilemma of quality versus productivity, establishing ground rules, and mother–daughter conflicts.

The lecture, which was organized by the Alumni Relations Office, was presented by Dr. Michel Chalhoub, associate professor at LAU’s School of Business, who introduced listeners to the concept of emotional intelligence before explaining how to apply it in the workplace.

“When you reach a certain level in senior management, there is a great deal of delegation,” Chalhoub said. “So you need to learn to work with other people.”

Emotional intelligence seminars became popular during the mid-1990s to help people in the workplace interact with colleagues and clients. They train individuals to manage their emotions when dealing with a situation by learning to understand that situation from the other person’s perspective.

“Emotional intelligence is not about acting emotionally,” Chalhoub explained. “Rather, it’s about perceiving, understanding and managing emotions to support sound, rational decisions.”

Chalhoub noted that the CEOs of some large corporations such as McDonalds and Walmart have been perceived by their colleagues and subordinates to be very open and perceptive toward emotional intelligence. Others, like Bill Gates and Steve Jobs, the CEOs of Microsoft and Apple, have been perceived to have a very low willingness to apply the concept and were known to walk out on meetings when they felt tension — yet they have been very successful.

The point led to a debate among alumni over the need for business leaders, managers, and those working in technology-related fields, to use emotional intelligence.

“This is the same exact debate that is going on outside,” Chalhoub said, explaining that there is no consensus over the role of emotional intelligence in the workplace.

Chalhoub ended the lecture by reminding audience members that emotional intelligence alone does not guarantee success. According to him, successful business plans require passion, ethics and logic.

“If you don’t have that passion, you’re not going to succeed,” he said.

About 20 students worked on the collaborative project, cooking hot dog rolls and packing the contents over the two days, alongside staff from three Rotana hotels in Beirut — Raouche, Hazmieh and Gefinor.

“Usually we celebrate Christmas differently at the university but we decided this time to do something for people that need to have joy on that day, so we came up with this idea,” says Georges Tamer, hospitality lab supervisor. “They are just small packages, but at least they will make the children happy.”

On December 18, the students and hotel staff packed four buses, two from LAU and two from Rotana Hotels, and travelled through Beirut and its suburbs to hand-deliver the boxes of treats to eight children's centers including Caritas, Dar Al Aytam and AFEL. They also spent some time interacting with the excited children.

The boxes contained sandwiches, muffins, chocolate milkshakes, potato chips, candy and apples. Each box and its contents were worth about $10.

Rotana Hotels, which has in the past provided LAU students with scholarships, financed the entire project, while LAU provided its facilities and other logistics.

“You’ve got all these young students who will be the future of the country so why not engage them in such a humanitarian activity?” says Lara Daniel, area director of Marketing and Communications at Rotana Hotels, and LAU business graduate.

“It’s doing good for the community, and it’s helping students at the same time,” she adds. “It’s a win-win situation.”

Preparations for the project began approximately two weeks earlier.

Dr. Said Ladki, chair of the Hospitality Management and Accounting Department at LAU, reveals the project was not strictly aimed at providing meals for children or experience for students.

He says Rotana Hotels is looking to hire fresh graduates and train them for management positions, so they used the opportunity to scout for potential recruits.

“The overt objective of this function is to help the needy,” Ladki says. “The covert objective is for Rotana to come and observe graduating seniors on a job, as to how they perform, so they can recruit them — It’s like a corporate test in a real-life situation.”

Entitled "Innovation@Cisco," the event tackled how the concept of business incubation at Cisco is being undertaken by the company's four-year-old Emerging Technologies Group. It was co-hosted by the university's schools of Business and Engineering.

The term "innovating incubation" in business and technology, as explained in Cisco's website, refers to the process of providing a favorable environment for nascent ideas to morph into business units -- and then nurturing these small, newly established businesses toward full development.

In the words of Dr. Walid Touma, director of LAU's University Enterprise Office and event moderator, "The biggest businesses started as small ideas."

Moretti outlined how his team at Cisco is currently working toward the ambitious goal of creating "a stream of billion-dollar businesses"; businesses valued at $1 billion within five to seven years of launching.

By pooling ideas from within the business community through such online networks as Cisco's Innovation Zone and its I-Prize competition, Moretti argued that "the key to success is to build a network to go and harvest these ideas, to find ways to connect the dots, and find the diamond in the rough."

Notable examples of successful ideas that, through incubation, have boomed into businesses worth billions are the TelePresence audio-video system and FlipVideo hand-held digital camcorder and video-sharing devices.

Both Moretti and Touma were enthusiastic about the potential of such innovation ventures for Lebanon, especially considering the country's heritage in creative businesses.

However, they identified three main obstacles that impeded progress in this area -- the small number of entrepreneurs, outdated legislation and a lack of infrastructure, particularly broadband.

"There is no shortage of capital in Lebanon," said Touma -- "there is a shortage of people, of laws and of infrastructure for mitigating the risks." He added that the government needs to partner with corporations and the financial sector in order to make investment in innovation possible.

Directors of leading Lebanese banks, NGOs, local entrepreneurs, and students, faculty and staff from other Lebanese universities were invited to the event.

The speakers encouraged the audience to sign the Broadband Manifesto -- that is also supported by LAU -- which is an effort by the Lebanese Broadband Stakeholders Group to mobilize support for widespread broadband access in Lebanon as a basic necessity for any economy.

The speakers also made an effort to inspire students to take the plunge into entrepreneurial life.

"There is nothing magical about being an entrepreneur," claimed Moretti, adding that while going into business is indeed a risk, young people should not be afraid to act on their ideas, because they have comparatively less to lose.

Read more about LAU's cooperation with Cisco.

The six seminars covered a wide variety of topics designed to train business professionals to improve their management skills, engage employees and lead their companies to success.

Each seminar lasted one day excerpt for the first one, titled "Bank Risk Management Before and After the Financial Collapse," which was held over a span of three days.

"I wouldn't say that [any one topic] is more important than the others," says Dr. Elias Raad, IBAF director. "Some people think bank risk management is an important topic, while others find leadership and teamwork to be important."

Dr. Joseph F. Sinkey, a former professor of financial institutions at the University of Georgia, led the bank risk management seminar, which was attended by 32 people. A distinguished scholar, Sinkey has published seven books and traveled to dozens of cities worldwide to give speeches and hold similar workshops.

An average of 36 people attended the other five seminars, which were led by Phillip Borzilleri, senior vice president of Morin & Associates, an American training and consulting firm for financial institutions, and a professor at DeVry University's Keller Graduate School of Management in St. Louis, Missouri.

IBAF was established in 1997 specifically for the purpose of holding training seminars, Raad explains.

"The Dean [of the School of Business in Byblos Wassim Shahin] and I thought that there is a need for training, especially in the banking area, so we established this institute," Raad says.

The IBAF seminars have taken place each year since the institute's founding, except 2007.

More information on the annual seminars can be found on the IBAF's website.

Local and regional professionals often lack training, specifically in the banking sector, as "some people don't have business degrees," said IBAF director Elias Raad, while others "have been on the job for a long time" and need to brush up on their knowledge of essential issues.

This year the seminars attracted 80 professionals to the Byblos campus. It's the program's 11th year.

Dr. Phillip Borzilleri, senior vice president of Morin & Associates and professor at DeVry University's Keller Graduate School of Management, led all the sessions, sharing with the participants his 25-year experience as a consultant and coach in operations, customer services, and employee relations.

A two-day seminar entitled "Bank Branch Management" aimed to help professionals determine what customers want and how to develop employee service skills. It focused on the importance of continuous service improvement to achieve customer satisfaction and loyalty.

Borzilleri presented total quality management tools managers could use to increase efficiency and reduce common (and often expensive) mistakes, redundancies, and wastes of resources.

Another seminar tackled the issue of the sub-prime mortgage crisis that has recently affected the U.S. economy and is threatening to have global repercussions. The causes, evolution, and main players of the crisis were discussed, followed with advice for bankers on how to protect their interests in the coming years.

It is important to discuss this topic in Lebanon so as to avoid the same problem here, explained Dr. Raad, who is also the Accounting, Banking, Finance and Marketing chairman in Byblos, and E.M.B.A. program coordinator.

Participants in another hands-on seminar were taught the skills and practical methods for building high-performance teams in banks, including conflict management and consensus decision-making.

The improvement of communication skills was discussed in a separate seminar. Through videos and games, participants learned how to communicate important messages and receive feedback on how their behaviors were being interpreted by their staff and co-workers. They were also exposed to the DiSC® style assessment, an online program that presents effective ways to understand other people.

Participants received certificates and E.M.B.A. students from LAU who took part in the event also earned credit for their attendance.

The event "exposes LAU to the business world," said Raad, adding that many of the attendees begin hiring LAU graduates as a result.

To find out more about the seminars, visit IBAF's website.

The study of these trends was the focus of a two-day colloquium that gathered prominent scholars, UN representatives and civil society members on the Byblos campus last week.

A multitude of issues related to the Arab family and the changes it is undergoing were addressed through 24 papers, with topics ranging from migration, war and conflict management, demographic changes, governance, business, education and child rights to psychological aspects, family relations, gender norms and values, eating disorders and social care.

Keynote speaker Dr. Saad Eddine Ibrahim, professor of Political Sociology at the American University in Cairo and distinguished visiting professor at Istanbul Kültür University, explained that the grounds of the traditional Arab family have been shaken by the "hyphenated families" (e.g., Lebanese-American), the high divorce rates of around 40% in the Gulf, the separation of families, the femininization of the Arab world, and the numerous civil or externally motivated wars in the region. Keeping an optimistic tone, he said, "Whether we like it or not... [globalization] is going to be with us... Let us understand it, learn how to deal with it, and be active participants in it; otherwise, we will become [its] victims..."

Dr. Josiane Sreih, associate professor and director of the Institute of Family and Entrepreneurial Business at LAU, said, "The Arab family is quite a complex entity, bound with its set of traditions and cultural ties on the one side, and its willingness to adapt to the advancement, openness and independence of the West [on the other], and finds itself in a triggering position and a difficult stage of adaptability."

The institute hosted the colloquium, funded by the Doha International Institute for Family Studies and Development, in an effort to spearhead discourse and research on the pressures and opportunities facing the Arab family and society. The initiative is particularly important, since "the issues of the family in the Arab world have been neglected at the level of serious empirical and theoretical work," said one of the presenters, Dr. Suad Joseph, professor of Anthropology and Women and Gender Studies, and director of Middle East/South Asia Studies at UC Davis.

The colloquium--the first of its kind in Lebanon--took about eight months to prepare. A scientific committee made up of LAU faculty screened all the papers received, adopting a 50% rejection rate to maintain quality.

Dean of the LAU School of Arts and Sciences Samira Aghacy said the conference "is an indication of the level of commitment our university has to interdisciplinary research and in particular to family studies in Lebanon and the Arab world."

Founded in 2000 by the School of Business, IFEB aims at becoming a forum to generate and exchange knowledge about family businesses, and enhancing their continuity and growth.

The 8th International Conference on the Economics and Finance of the Middle East and North Africa grouped participants from the U.S., the U.K., France, Switzerland, Iran, Tunisia, Egypt and Lebanon.

About 11 speakers including academicians, economists and financial experts submitted papers on the economy and finance of the MENA region. The School of Business at the Byblos campus organized the event May 22–24, 2006.

David Cobham from the Department of Economics at Heriot-Watt University in Edinburgh tackled exchange rate regimes and trade with implications for MENA countries. He outlined such implications against the background of MENA countries' current exchange rate arrangements and trade patterns.

"Exchange rate regimes can have large effects on the pattern of a country's trade," he said. "In choosing their exchange rate regimes, countries should aim to maximize their trade as a means to maximizing growth and welfare," he added. Cobham believes that while most MENA countries are operating with exchange rate regimes focused on the dollar, they would be better off with a focus on the euro.

Hadi Salehi Esfahani from the University of Illinois at Urbana-Champaign in the U.S. examined the evolution of trade policy in MENA countries since the 1960s. "Contrary to the current popular perception, until the 1980s, MENA countries were generally more open than the rest of the developing world. That situation changed in the 1980s and especially the 1990s as most MENA countries maintained their trade policies, while many other developing countries proceeded with liberalization," Esfahani told the conference.

Conference speakers also tackled issues related to monetary policies, social capital and governance, trade, finance and financial markets, as well as structure and growth of MENA economies.

On the sidelines of the conference, a public policy session on the Lebanese government's "Beirut I Proposal for Reform" was held with the participation of former Finance Minister George Corm, MP Farid El Khazen and Finance Ministry Consultant Saadeh El Chami. The roundtable discussion tackled the current economic situation in Lebanon and the problem of public deficit with its negative impact on economic activity and investment.

El Shami outlined the Lebanese government's economic reform proposal as based on two pillars: boosting growth to reduce public deficit and adopting new monetary and financial policies. While El Khazen regarded the proposals as offering short-term solutions to Lebanon's economic problems, Corm suggested launching economic dialogue between the Finance Ministry and the Central Bank to agree on the rescheduling of the country's debt.

LAU joined the bandwagon by hosting the Second Annual Banking & Finance International Conference in February 2006.

"The development of Islamic financial institutions depends on the success of their integration in the global financial market," said keynote speaker Dr. Ahmad Jachi, First Vice Governor at the Bank of Lebanon (Central Bank).

Economy and Trade Minister Sami Haddad praised LAU for hosting the conference saying Islamic finance had grown considerably in many parts of the world and was expected to mark further growth in Lebanon.

LAU President Joseph G. Jabbra said in opening remarks that the concept of Islamic banking promoted the principles of justice and equality.

"It did not start from a concern for loans and interests, but rather aims at bridging the gap between rich and poor and between rich nations and poor nations for the development of societies," he said.

The event held at the Beirut campus under the patronage of Lebanese Prime Minister Fouad Seniora featured 21 international speakers and was sponsored by Al Baraka Banking Group, Al Amin Bank, and BOL's participation.

Dr. Tarek Mikdashi, dean of the School of Business at the Beirut campus, said LAU had introduced courses in Islamic banking at the MBA level.

"The increasing international interest in the subject of Islamic banks comes as a result of expanding globalization that involves all in addition to new developments on the geo-political scene and the infant Islamic trade markets," he explained.

Three Islamic banks currently operate in Lebanon: Al Baraka Bank Lebanon, Arab Finance House and the Lebanese Islamic Bank.

"The relatively young Islamic financial market has developed at a fast pace during the past five years," said conference chair Michel Majdalani, but noted a shortage of Islamic financial products vis-a-vis overall growing transactions.

Al Amin Bank's Acting CEO, Mohammad Al Moutawaa, listed problems the Islamic financial market was facing and pointed to a need to introduce new financial tools and improve liquidity management in Islamic banks.

BOL's Jachi highlighted the need for product innovation as well as the development of an Islamic money market, a regulatory and supervisory framework, corporate governance, standardized financial reporting and transparency.

He cited conditions for setting up Islamic banks in Lebanon, namely ownership, capital management and the proper application of Shariah (Islamic law).

Speakers also drew on their respective countries' experiences and case studies in suggesting guidelines to govern the Islamic banking sector. They said the sector needed to adopt universal standards in the management of Shariah-compliant banking practices.