Jones Journal -- Alumni Magazine of the Jones Graduate School of Management, Rice University

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Deanna Sheaffer, Editor
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Jones School of Management - MS 531 Rice University
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Schuler’s Mission at Enron
– By Tamara Blaha, Class of 2002

Doug Schuler, our intense and unique ethics professor, has been a member of the Jones School faculty since the early 1990s. Some may be surprised to learn that Schuler does not specialize in ethics, but holds a doctorate in corporate and political strategy, specializing in international trade and foreign investment policies.

Schuler’s work at Enron focuses on applying his academic interests in corporate political strategy to real world situations.

Every year many professors take sabbaticals to seek personal and professional enrichment. Typically, a sabbatical consists of completing development projects or taking the opportunity to work with leading scholars in their academic field. This semester, Schuler has taken a different path to self-enrichment, working with two project teams at Enron Corporation. Enron is a strong and loyal supporter of the Jones School, and Schuler has said that he feels privileged to have the opportunity to work with such an innovative and strategically focused company.

Schuler’s work at Enron focuses on applying his academic interests in corporate political strategy to real world situations. One of the projects concerns developing the framework for trading a new commodity. This commodity, a new business for Enron, experiences large price fluctuations and has been increasingly subject to governmental regulation via trade policy. Schuler’s expertise in political strategy and trade is an asset to Enron. By developing a framework for trade that anticipates the impact of government interaction, Enron will be better prepared to estimate government reaction to various trade options and how those reactions will affect future margins for Enron.

The second project concerns the California energy issue. Enron, as a major player in the development of deregulated markets in both gas and power, continues to review its strategic position in California. The complexity of the political and regulatory issues have proven challenging for Enron and others.

Many in California do not want an out-of-state corporation like Enron trying to “control” electricity in their state. Currently Enron is trying to limit the political damage to the energy providers in California by working with the governor, legislators, regulators, other providers, utilities, and large users. In doing this, Enron hopes to ensure that the California legislature does not block them from the market. Schuler’s expertise in political strategy and government relations is an advantage in monitoring the energy situation in California, thereby helping Enron create a successful strategy for competing in the California market.

Schuler enjoys being a professor and teaching at Rice. He likes the small and intimate setting that Rice offers students and faculty. In conducting academic research, professors are required to make numerous assumptions and, in many cases, these assumptions must be simplified in order to resolve the issue.

However, in an MBA program, real world examples and cases form the foundation of the education. Schuler believes that working in corporate America, with a prestigious firm such as Enron, will improve his value as a teacher and researcher by adding real business qualities to his research. Schuler also believes his work with Enron will improve his ability to offer insight into classroom discussions by, as he says, putting “flesh on the beast.”