Career Reflections: Advice from Halvar Trodahl

5. November 2013

OPN spoke with Halvar Trodahl, a senior associate at McKinsey & Company, a global management consulting firm, to get his perspective on working as a consultant with a Ph.D. in physics.

What is your current role, and what are your day-to-day responsibilities?

As an associate at McKinsey & Company, I do project-based work with a small team of consultants to help our clients solve their toughest challenges. These challenges can range from determining strategic direction and market response to optimizing operations and developing business technology implementation. On a day-to-day basis, this means working closely with our McKinsey team as well as the client team to help build a deep understanding of the problem, the potential solutions, and the ability of our clients to succeed in tackling this and future challenges.

We work with leading organizations across the private, public and social sectors to increase their capabilities and leadership skills at every level and every opportunity. We do this to help build internal support, get to real issues, and reach practical recommendations.

What path did you take to get to your current position?

As I worked toward my Ph.D., I explored roles outside of my academic discipline in order to understand in which direction I wanted my career to move after graduate school. These explorations included teaching in areas outside of the physical sciences and taking on leadership positions in student organizations.

How do you feel that your science background has been helpful in your career?

I like to distinguish between the content knowledge and process knowledge that I developed during graduate school. Of these, my process knowledge is something I constantly draw on in my current work. The primary example of this is problem solving. As a Ph.D. student I honed my ability to take a complex problem, break it into its constituent parts, solve these piece by piece through hypothesis formulation and data analysis, and pull these together to form a coherent and holistic story. This process is something I use on a daily basis in my work as a consultant. On the other hand, I typically don't use, or expect to use, the content knowledge that I developed in my studies (e.g., quantum mechanics, nano-fabrication).

Is there anything that you wish you had done differently in your own education or career?

I would have spent more time exploring opportunities outside of physics during graduate school. In particular, I would have worked with student and university organizations early on so as to explicitly develop my leadership capabilities. I found these types of experiences very influential and wish I had pushed myself to have them from day one.

What one piece of advice would you give to someone who wants to follow a similar career path?

Explore career and extracurricular activities broadly and as early as possible. Having a range of experiences will help develop a baseline by which you can better understand which career options you are most interested in pursuing. Additionally, these experiences will arm you with a set of valuable tools that can be applied regardless of which path you choose to follow.

Halvar Trodahl is a senior associate at McKinsey & Company. Halvar joined McKinsey in 2012 after completing a Ph.D. in physics at Harvard University. Originally from New Zealand, he completed undergraduate degrees in science and business at Victoria University of Wellington. Halvar taught in a variety of disciplines throughout his academic career, ranging from global health to management theory.

 

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Read to Succeed

20. May 2013

Milton Chang

I began reading several business publications when I was in graduate school in the 1960s. I had a hard time understanding them at first, but it became progressively easier, and over time, they gave me valuable insight into that world.

Whether you plan to start a company or not, I believe that every engineer can benefit from knowing something about business and management. You’ll have a better sense of how technology fits into real-world enterprises; become more effective on the job; learn how to interact with management; and lead people and projects, even when you make engineering decisions.

Moreover, as a practical matter, it is almost impossible to maintain an edge in a 40-year career as a pure technologist. Learning about business and management enables engineers to move into managerial positions and to remain vital and productive. It gives a technical person the opportunity to oversee projects that follow a product’s development from the idea stage to market application. Moreover, anyone who does want to start a business will embark on the process with less fear of the unknown and avoid fatal mistakes from the start.

Reading business magazines and newspapers is a good way to begin learning about the business world. There are four publications on my can’t-miss reading list: Bloomberg Businessweek, Forbes, Fortune and The Wall Street Journal. While some of these periodicals overlap in content, each one offers a different emphasis and perspective.

Bloomberg Businessweek (formerly Business Week)
If you only subscribe to one business magazine, this should be it. I like the section on “Global Economics,” which offers useful background information that helps drive decision-making in industry. I also like the “Technology” department, which keeps me abreast of what’s new with a wide range of products and businesses beyond optics and photonics.

Forbes
This magazine zooms in on the business strategies of specific companies. The “Technology” section highlights interesting new products and innovative ideas. “Entrepreneurs” covers the process that entrepreneurs go through to start companies and explores how they deal with the challenges they encounter along the way. “Investing” provides valuable information that guides how to make wise investment choices.

Fortune
Fortune gets into more specifics about successful, high-profile individuals. What do these people do and how do they live? I always find an interesting scoop in the “Scandals” section. It describes ill-gotten wealth and serves as a good reminder that we cannot always believe what we encounter.

The Wall Street Journal
Published six days a week, this is a great day-to-day resource that provides up-to-date information about what’s going on in business. It is a must-read for anyone who wants to optimize their investment in anything—whether it is in the stock market or real estate.

Other gems
Through reading, you can open yourself up to a vast array of career options—and simply broaden your perspective on life. With that in mind, I also recommend reading a local newspaper every day and following the Economist to learn more about the rest of the world.

And, of course, I wish more people would read my book, Toward Entrepreneurship, Establishing a Successful Technology Business. It is an easy read, and it covers much of what you’ll learn in an MBA program, but it is customized for the individuals in our industry.

Yes, you are successful because you were focused enough to become an expert in your field. Broadening a bit to strike a balance can help you to accomplish even more. Reading these publications is a painless way to start!

Milton Chang (miltonchang@incubic.com) is the managing director of Incubic Management and an OSA Fellow. He was president of Newport and New Focus, and he took both companies public. He is the director of mBio Diagnostics and Aurrion. He is a trustee of Caltech and a member of the SEC Advisory Committee on Small and Emerging Companies.

Academic careers, Career, Communication skills, Nontraditional science careers, Small business and entrepreneurs , , , , , , ,

Career Advice from Top Entrepreneur Milton Chang

16. October 2012

Milton Chang

At this week’s Frontiers in Optics meeting, Milton Chang shared his advice about how to forge a path toward entrepreneurship at the OSA Student Leadership Conference. Here are highlights from his talk.

Many of you are already off to a good start toward constructing a fulfilling technical career: You have shown active involvement in your community and picked a technical field for your future. You will find your niche and do well.

I was once where you are: wondering what to do with my career. I immigrated from Hong Kong for college; worked my way through my undergraduate years; and was employed by an aerospace company for a few years. Then I joined a start-up as the 7th employee. Eventually I became president of that company—The Newport Corporation—and took it public.

You too can build a successful future. With your technical know-how, you can do anything you want, as long as you continue to broaden yourself, learn and study. Here’s how to ensure that your career will move in the right direction over the long term:

Gain as much expertise as possible to compete for opportunities. Hiring managers are looking for someone with expertise who can get the job done. Having a graduate degree is a great starting point—

but don’t stop there. Learn as many skills as possible to gain access to jobs that others will not have. Often having the combination of a few skills will lead you to many more opportunities than you would have with just one area of expertise: 1+1=10.

Having a breadth of knowledge enables you to make sound decisions. When choosing your career path, you don’t want to have blinders on—so make sure you learn about subjects beyond your technical area. In particular, having business acumen and an understanding of management can make you more effective on the job as an engineer and also provide you with more career options.

Your reputation and your network are your resources. There are two types of networking you can engage in as a professional: The “shoulder slapping” variety, in which you forge friendly connections with a wide range of others, and the stronger relationships you have with a few confidantes. Both types are important to your career.

For those interested in pursuing the entrepreneurial path, here’s how to get started:

Be really good at what you do and know your industry. This is the #1 requirement for being an entrepreneur. You need both technical expertise and knowledge of business and management. Avoid pursuing an idea that is outside of the industry you know intimately; instead go for a niche that capitalizes on your expertise and grow the business over time as you gain experience.

Start by joining a well managed company. Perish the thought of starting a company right out of school—you simply don’t know enough yet. Strive to succeed by first learning what it takes to succeed and by building your professional reputation and network.

Take on project management. You don’t want to just grind away at a narrow task or technology that could at some point become obsolete. Engaging in big-picture project management will help you gain well-rounded skills, build your network and learn how the world works. This is what will make you become more valuable over time. Volunteering for a professional society is a great way to start.

In summary, I recommend that you think broadly about your career first, and then decide later if entrepreneurship is right for you. For more specifics on starting a business, read my book Toward Entrepreneurship: Establishing a Successful Technology Business.

Milton Chang (miltonchang@incubic.com) is the director of Precision Photonics, mBio and Aurrion, a trustee of Caltech, and a member of the SEC Advisory Committee on Small and Emerging Companies.

Career, Job Search, Nontraditional science careers, Small business and entrepreneurs , , , , ,

A Guide to Structures for your Small Business

4. November 2010

By Bill Greener 

Thinking about a start-up? More and more enterprising scientists are applying their knowledge of technology and industry to their own new businesses. What does it take to shape one’s vision into a sustainable business? A solid business plan is obviously important. However, even before that, you must figure out which type of business entity will best suit your needs. This decision will affect everything from the amount of taxes and paperwork you’ll face to your personal liability to the bottom line. Here are the major options you have, along with their advantages and drawbacks.

Sole proprietorship: Someone who owns an unincorporated business by himself or herself. The main advantage is ease of formation. To get started, you need only perform a simple filing with a County Clerk’s office.  The tax implications and reporting requirements are straightforward, involving taxation at individual tax rates and standard IRS Schedule C filing. There is no separate entity tax. 

However, as your own boss, you are the sole risk manager and the profit/loss center—for better or worse. Your liability is unlimited, but you may have restricted sources of capital and funding.

General partnership: An association of two or more people who co-own a business for profit. These partnerships are generally easy to form at the state and county levels. Partners agree how to share profits and losses, which flow through the partnership to each partner’s individual tax return via a form K-1. General partnerships are typically not subject to federal or state business entity taxes. The general partners, however, are jointly liable for the obligations of the entity.

Limited partnership: One or more limited partners and at least one general one. Limited partners cannot be active in the business management; if they are, they risk losing their “limited” status.

Limited and general partnerships are similar in areas of taxation and what is referred to as “special allocation of income and loss.” Government fees for partnership formation may be higher for a limited partnership than for a general one, however. State regulations may require notices about the partnership formation to be published.

C-Corporations are your large business “Inc’s.” Corporate business entities provide greater segregation between their owners and the entity itself than is provided for in partnership arrangements.

Taxation issues are comprehensively addressed by the IRS, under subchapter “C” of the Internal Revenue Code. C Corporations require corporate officers and directors whose identities must periodically be reported to the state.

On the plus side, a C Corporation is taxed for income purposes as a separate corporate entity at both the federal and state levels. In addition, the number and types of shareholders are unrestricted. Shareholders have limited financial liability even if they participate in corporate management; rather, the corporate entity becomes the liable party. In a C Corporation, the retained corporate earnings can be kept in the business.

On the other hand, C Corporations are subject to double taxation; corporate income is taxed at the corporate level, while dividends are taxed at the individual (shareholder) level. The formal requirements of a C Corporation include government formation fees, significant record- and book-keeping, shareholder meetings and corporate elections, the issuance of stock certificates, and the sale of stock for raising capital.  Financial losses are only deductible at the corporate level.

S Corporation: A small business entity that makes a valid election with the IRS to be taxed differently than a C Corporation. S Corporations generally pay no corporate income taxes on their profits. Instead, shareholders pay income taxes on their proportionate shares of the corporate profits. Thus, an S Corporation is considered a pass-through entity similar to a partnership, but shareholders enjoy the limited liability of a corporate structure.

Among the limitations: These entities must be domestic corporations organized under state law, and shareholders are limited to fewer than 100 and to certain entities such as individuals, estates and trusts. All individual shareholders must be citizens or residents of the United States. Unlike a C Corporation, an S Corporation cannot have retained earnings.

Limited liability companies, or LLCs, are formed by filing Articles of Organization with a state’s secretary of state. The IRS taxes LLCs as if they were partnership entities.  There are no restrictions on the number or types of owners or the extent of owner participation in management. An LLC will be dissolved when certain events occur; for example, bankruptcy, the death of a member, or the incapacity or withdrawal of any member unless otherwise voted upon. Annual filing fees are required.

Bill Greener is a U.S. registered patent attorney who practices in Ithaca, N.Y. and is a partner in the firm of Bond, Schoeneck & King, PLLC. This blog post is based on an article that appeared in the May 2007 issue of Optics & Photonics News.

 

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