Fall 2002

Marie J. Toulantis, '81
Chief Executive Officer
Barnes & Noble.com

Maria J. Toulantis
Marie J. Toulantis is chief executive officer of Barnes & Noble.com, the publicly-traded Internet commerce company of which Barnes & Noble, Inc. and Bertelsmann A.G. own 36% respectively. Barnes & Noble.com (www.bn.com) offers millions of books, both new and out-of-print, music, DVDs/video, as well as online courses.

Ms. Toulantis joined Barnes & Noble.com as chief financial officer in 1999 and oversaw its successful initial public offering, which raised nearly $500 million in the largest Internet initial public offering to be completed at that time. She was appointed president and chief operating officer in 2001, and under her leadership, Barnes & Noble.com has become one of the top five e-commerce sites, attracting 10 million unique visitors per month, the largest audience reach of any brick-and- mortar company with an Internet presence.

Ms. Toulantis first joined Barnes & Noble, Inc. in 1997 as executive vice president with responsibility for finance and was later appointed chief financial officer. Prior to working for Barnes & Noble, Inc., she served as senior vice president at the Chase Manhattan Bank where she was responsible for the Bank's relationships with mid-sized companies in Manhattan.

Ms. Toulantis attended Pace University&'s Lubin School of Business where she earned a BBA in marketing.

Cyber Retail Leader—CEO of Barnes&Noble.com

"I think you should feel proud of the education that you are getting [here at Lubin]," said Marie J. Toulantis, '81, CEO of Barnes & Noble.com, during her lecture to undergraduate students on November 12, 2002, when she spent the day in the Lubin School of Business as an Executive in Residence. "In the end it's the hard work, the persistence, the determination, the discipline, and the focus that are going to get you where you want to go."

[Marie J. Toulantis]
Marie J. Toulantis, '81, in discussion with students after her lecture.
Before joining Barnes & Noble, Inc., Toulantis successfully climbed the corporate ladder at Chase Manhattan Bank. Equipped with perseverance and dedicated work performance, as well as her B.BA degree in Marketing from the Lubin School, earned through six grueling years of full-time work and fulltime study, she was chosen for a one-year, full-time Chase training program, the equivalent to an MBA program at the time. To stay in the program, Toulantis had to compete against Ivy League graduates, and she flourished. "The foundation that I got here at Pace really was able to get me through the program," she reminiscenced.

Ready for New Challenges
For the next two decades, Toulantis stayed in the corporate lending world, where she reached the position of Senior VP at Chase. In 1997, one of her clients, the founder of the Barnes & Noble, Inc., Leonard Riggio, offered her the position of senior vice president of Finance in his company. Pushing doubts away, Toulantis took the challenge, and in 1999 she was appointed CFO.

"We were in the midst of the dotcom revolution. We started Barnes & Noble.com and launched it on the Web in 1997, two months after I joined the company," said Toulantis to a small group of faculty members at a luncheon that started her day at the School. In 1999, she was named CFO of Barnes & Noble.com, and in 2001 - president and COO. "We definitely needed capital to grow … we sold half of the company to Bertelsmann A.G., a privately held German media giant … and a few months later [May, 1999] we took the company public ... raising about $500 million. That was, at the time, one of the largest IPOs," she remarked.

"It's All About Books"
"We were going to stay true to our roots," explained Toulantis later to a crowded auditorium of MBA students, in discussing the company's focus on the sale of books and related products. "Our goal was to differentiate ourselves from the competition by offering customers greater selection, faster delivery, and more authoritative content about books, music, and DVDs." She commented that this strategy helped the company to survive the deep carnage other Internet retailers suffered, and, according to a study undertaken by the University of Michigan, Barnes & Noble.com has the top customer satisfaction scores among retailers nationwide.

Work in Progress
"Growth is never a straight line up, with no bumps in the road," said Toulantis, who, among other things, put the company's infrastructure in place and set up the proper technology to keep the Web site working. Today, determined to become the best online destination for books, music, and DVDs, the company does a lot of direct marketing and multichannel advertising to attract more customers. They have created a number of new features for the Web site, set up discount programs for customers, such as Barnes & Noble gift cards, which Toulantis generously presented to the students in attendance when her presentation was over.

Forward Looking
"I have a really good team. It's important to recognize what people's strengths and weaknesses are and put them in the right jobs," commented Toulantis to her captivated audience, when asked about the approach she takes with her 1,000 employees. "Our sales will top $400 million this year. Our losses are declining dramatically, and our plan is to break even next year," summed up Toulantis, under whose leadership the company is consistently ranked among the top five e-commerce sites in the world, attracting more than ten million unique visitors per month, the largest audience any brick and mortar company has.

Fall 2002

Herbert L. Henkel, '79
Chairman, President and Chief Executive Officer
Ingersoll-Rand Company Limited

Herbert L. Henkel is chief executive officer of Ingersoll-Rand Company Limited. He is also the president of the company and chairman of its board of directors. Ingersoll-Rand is a diversified global industrial enterprise involved with infrastructure development, security and safety, climate control, and industrial productivity.

Mr. Henkel came to Ingersoll-Rand from Textron, Inc., where he was president and chief operating officer. Previously, he was president of Textron's industrial products segment. Before that, he was group vice president with responsibility for Textron&'s industrial segment. From 1987 to 1993, he was president of Greenlee Textron, a maker of tools for wire and cable installation and maintenance.

Before joining Textron, Mr. Henkel was president and chief operating officer of Southern Fastening Systems and Unifast Industries, Inc. Prior to joining Southern Fastening Systems and Unifast Industries, Inc., he served as vice president of sales and marketing of Chicago Pneumatic Tool Co. and Hilti, Inc.

Mr. Henkel earned a BS in aerospace engineering and applied mechanics and an MS in mechanical engineering from Polytechnic University. He has an MBA in executive management from Pace University's Lubin School of Business and serves on the boards of Pitney Bowes Inc. and C. R. Bard Inc.

Herbert L. Henkel, '79, Welcomes Students to the "Accelerating Breeze of Change"

Herbert Henkel, '79, chairman, president, and CEO of Ingersoll-Rand, a leading solutions provider for the major global markets of security and safety, climate control, and industrial infrastructure, spent October 14, 2002, meeting with students and faculty as part of Lubin's Executive in Residence Program.

[Herbert L. Henkel]
Herbert L. Henkel, '79, chairman, president and CEO of Ingersoll-Rand, talking with an international graduate student in finance.
"You will see as you go forward in your careers, the only thing that will be constant is this accelerating breeze of change," said Henkel to a combined group of Lubin students and faculty at the day lecture during his visit to the New York City campus. Henkel is also a new member of the Lubin Advisory Board.

Holding a B.S. and an M.S. in engineering from Polytechnic University, Henkel decided to change his career path and become a sales and marketing executive at Chicago Pneumatic Tool Company. To expand his business knowledge he enrolled in the Executive MBA program at Lubin. Following his graduation in 1979, he spent the next two decades working as a top executive in various industrial companies.

In 1999 Henkel became president and CEO of Ingersoll-Rand and since then has successfully transformed the old-economy company that focused on construction and mining equipment, into its present-day conversion to an electronic access control enterprise of the future, producing electronic keys, time and attendance devices, and homeland security projects.

Focus on the Customer
In his lecture to several undergraduate classes, Henkel spoke of changing Ingersoll Rand's focus from its product-centered approach to a customer-centered business practice. He underlined, "We talk to customers about everything that they needed to buy from us, every solution we could eventually provide. For us, the key thing is how we participate in the changing technology," he said.

"We did 30 million [dollars] worth of business with Home Depot five years ago. This year we will do slightly more than 250 million dollars, because we were able to expand from being a lock company to being a security company. We have added products; we have added solutions that allow us to increase sales."

Managing the Enterprise Horizontally
"I think to be successful in the 21st century all we need to do is to leverage the entire enterprise. This means you have to bring together the talents, energy, and enthusiasm of your people," explained Henkel in speaking of the strategy of sharing best practices at the company's various levels during his lecture to graduate students at the end of the day. "You take what one organization has learned over here and let the rest of your organization learn from that group. It is important not only to manage an [organization] vertically but also horizontally."

A People-Based Organization
"People are the base of the organization that continues to drive the company," opined Henkel. Admitting the challenge of getting 56,000 employees in 121 countries to all face the same way, Henkel emphasized, "In my model, if you don't get the people side right, you are wasting your time with the assets. Without people, the assets don't work effectively and efficiently."

Pointers for Future Leaders
As Henkel's Executive in Residence day at the Lubin School came to a close, he summed up his business philosophy by saying, "Don't look just at the history of a company. What I really encourage you to look at is what the picture and the prospect of the future [of the company] is because it can make a significant difference if you do." Obviously Herbert Henkel has put his vision into practice since he has successfully led Ingersoll- Rand, a $10 billion global company, on its journey into the 21st century, by embracing the concepts of change and risk as a way of life in a holistic business environment.