How a Late-Career Setback Led Executive to Better Job

The bad news reached B. Joseph White one Saturday last May: He had lost the race to become University of Michigan’s permanent president, despite successful stints as its interim leader and business-school dean.

By JOANN S. LUBLIN
Staff Reporter of THE WALL STREET JOURNAL

"I felt very, very bad," remembers Mr. White, a lanky man with a long, angular face. "It was a moment of great sadness because something I loved doing I wasn’t getting to keep doing.” The rebuff marked his first major career setback in 27 years of being a professor, corporate executive and university administrator.

It’s terribly disappointing to lose any coveted promotion, job or business venture — even more so when the bulk of your working years are behind you.

How you handle such a setback influences whether the blow scars you or bolsters you for future success. The ways Mr. White coped — including a frank, public admission of his disappointment — offer insights into taking the constructive path.

"I really admire what he did" because an open expression of feelings can speed recovery from a career setback, suggests Carole Hyatt, a New York leadership speaker and author. "Our society trains us to hide from setbacks. But what we really want to do is expose them to light so they can go away."

Mr. White, now 56 years old, assumed the interim presidency in January 2002, shortly after he completed his 10-year deanship. "He did a very good job” and was seriously considered for the permanent post, says Laurence Deitch, chairman of the university’s board of regents. Business-school deans rarely run top-tier universities, however. Michigan chose University of Iowa President Mary Sue Coleman, a biochemist.

The well-publicized announcement made it impossible for Mr. White to mourn in private. But the coverage started him on the road to recovery by bringing him advice from his wide personal and professional network. "There is important work in the world for a person of your ability and integrity," wrote Fred Alger, founder and CEO of Fred Alger Management. Mr. White has been a trustee for some of the New York money-management firm’s funds since 1999.

Despite such support, Mr. White found himself filled with self-doubt and forced to reassess his strengths. "I had my core professional identity swept away," he explains. He felt unsure, for instance, about resuming full-time faculty work after not doing so for two decades. "What was I going to teach?" he wondered.

Mr. White decided not to blame others for his turndown nor let the episode diminish him in any way.

He demonstrated his resolve by trying to arrange a flawless transition. Among other things, he prepared extensive background materials, then briefed Ms. Coleman face-to-face in Iowa.

Mr. White brought his inner turmoil to a cathartic conclusion during a campus dinner to honor his interim leadership in July 2002. University regents and senior officials expected perfunctory remarks. Sensing a "teachable" moment, the veteran professor instead spoke candidly about his loss to an already uneasy crowd.

"It’s no secret to anyone in this room that I’m disappointed not to be able to serve the university in the years ahead," Mr. White declared. He went on: "We can choose how to think about and react to disappointment. At the extremes, one line of thought leads to bitterness and a shriveled soul; the other leads to wisdom and growth." Mr. White said his own career disappointment had enabled him to challenge himself about "what will be my work, my contributions, my sources of satisfaction and self-esteem?" He got a standing ovation.

Mr. White then resumed a leave to prepare business-school courses and research projects. Several other big universities wooed him for their top job. But he lacked the same enthusiasm that he felt for Michigan.

When Mr. Alger unexpectedly offered his firm’s No. 2 spot, Mr. White reacted differently. Much of the firm’s investment team had perished during the 9/11 attacks — including President David Alger, Fred’s brother and a close friend of Mr. White. The professor admired the firm’s determination to rebuild.

Moving to New York, Mr. White became Alger’s managing director Feb. 1. Recruiters suggest he earns at least twice the $326,000-a-year he made running Michigan. More importantly, he believes lessons learned from his setback are helping him flourish. "I’m a better leader, more confident, more empathetic, more resilient and wiser for having successfully navigated a major career disappointment.”

Hints of his enhanced empathy emerged recently. Though numerous Alger funds are performing well, the firm manages far fewer assets than three years ago. It announced a 15% staff reduction in early April.

Mr. White anticipated layoff victims’ anguish and made sure outplacement counselors attended the job-cut announcement. "I felt positively that we needed to do that," he says, pounding his fist hard.

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