Russell Flaum, Executive Vice President, ITW, Lake Forest MBA Class of 1984
Leading ITW in the New Economy
When Signode Packaging Systems was acquired by Illinois Tool Works (ITW) in 1986, Russell Flaum was in the midst of a promising marketing career at Signode. Having earned his LFGSM MBA two years earlier, he was ready for what happened next: a promotion to Vice President of Marketing followed quickly by a promotion to President of ITW/Signode’s U.S. Operations. Just two years later, Flaum was appointed to his current position as Executive Vice President ITW. In this position since 1992, he is responsible for over 70 business units and 4,500 ITW employees who manufacture and market industrial packaging worldwide.
Not only was Flaum’s career changed radically when Signode was acquired, but the new Signode division was decentralized and divided into about 50 separate business units, each functioning with near autonomy. As the old Signode transformed and Flaum learned and applied ITW’s new business principles, the business units under his direction grew quickly. By 1999, they had more than doubled their sales and tripled their earnings.
"My LFGSM MBA gave me the tools to be able to take advantage of the opportunities available when Signode was acquired," says Flaum. "The courses in accounting and financial management gave me a financial background to support my marketing and general management efforts. The MIS course gave me basic familiarity with information technology. And I took Business Law. That was my favorite course. It helped me understand anti-trust laws and do a business analysis from a different viewpoint."
Today as in the past, Flaum remains a loyal supporter of LFGSM, serving on the Board of Directors since 1997. "I am a strong believer in the model of practical education," he reflects. "It helps students apply what they’re learning much more quickly. LFGSM’s students are, on average, older and more experienced in business, bringing greater value to the classroom. The high level of class participation in that setting alone is worth the price of admission."
"I serve on LFGSM’s Board," he continues, "because we at ITW have a vested interest in sending our future leaders to a good school that provides a practical education. That way, employees can apply their lessons here immediately."
How does Flaum feel the School compares with other area MBA schools in preparing future business leaders? "Many business leaders today need to take more risks," he asserts. "People may be wary of risk-taking now because of recent corporate scandals. But the risks leaders need to take are in terms of new ideas and new products, not ethics. A 100% practitioner faculty has an edge over tenured academicians when it comes to teaching risk-taking because they have done it. Students have a better opportunity to learn risk-taking at LFGSM than anywhere else."
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