no. 2-0021

Hasbro Interactive
In 1995 at the Tokyo Toy Fair, Alan Hassenfeld, chief executive of toy and game company Hasbro, decided it was time once again for his company to take a risk on interactive games. The company had been stung when betting on the notion that consumers would spurn traditional board games in favor of the electronic variety. However, the personal computer, with its improving multimedia capabilities, looked to be the future of gaming. Mr. Hassenfeld spoke with Tom Dusenberry, an ambitious rising star from Parker Brothers, a game company that Hasbro had acquired in 1991. Familiar with Mr. Dusenberrys work, Mr. Hassenfeld admired his creativity and capability. Mr. Dusenberry believed that interactive games had a brilliant future. He was also a talented visionary, proficient at activating others enthusiasm for futuristic ideas. His effusiveness accelerated Mr. Hassenfelds interest, and soon Mr. Hassenfeld charged Mr. Dusenberry with building a new division, to be named Hasbro Interactive. He was to write a business plan, form a team, and go to market, starting with a handful of existing CD-ROM products that Hasbros long-standing toy and game divisions had developed in a decentralized fashion. Over the course of his career at Parker Brothers, Mr. Dusenberry gained direct experience in most aspects of the game business. He had started working on a loading dock and had been promoted several times through positions in manufacturing, marketing, and sales. He survived the consolidation that followed Hasbros acquisition of Parker Brothers and was promoted again, this time into product development. Throughout his career, he had remained connected to developments in interactive gaming. Running Hasbro Interactive would be his first experience as a general manager, and it was the break he had been waiting for. He recalled: My career goal was to end up with Alan Hassenfelds job. I thought Hasbro Interactive was the best way to get there because it would give me exposure to the board of directors [who eventually would choose Mr. Hassenfelds successor]. My strongest skill is leadership. Hasbro Interactive would allow me to let my leadership ability unfold.
This case was written by Professor Chris Trimble of the Tuck School of Business at Dartmouth. The case was based on research sponsored by the William F. Achtmeyer Center for Global Leadership. It was written for class discussion and not to illustrate effective or ineffective management practices. Version: 03/22/04. Unless otherwise noted, the information in this case was gathered from one of the following sources: (1) SEC filings, (2) internal Hasbro, Inc. documents, and (3) interviews listed in Appendix 1. 2004 Trustees of Dartmouth College. All rights reserved. To order additional copies please call: 603-646-0898
Dave Wilson, head of Hasbros game division, supported Mr. Hassenfelds move, believing that the one-off development of interactive products that was proceeding in many parts of Hasbro was too timid an approach. He also supported the nomination of Tom Dusenberry as head of Hasbro Interactive: I thought that Tom was the perfect manager for this business. He had a combination of intellect, product creativity, and a tremendous drive to succeed all positive assets. He was a tremendously ambitious, dynamic, and aggressive manager who understood the [interactive] business well.
A Brief History of Hasbro, Inc.
Polish immigrant Henry Hassenfeld, Alans grandfather, founded Hasbro as Hassenfeld Brothers, Incorporated, in Pawtucket, Rhode Island, in 1923. The company manufactured a variety of inexpensive products, eventually turning to toys in the 1940s. But it was not until toy inventor George Lerner sold Hasbro president Merrill Hassenfeld, Henrys son, a quirky idea for $500 and a 5% royalty in 1951 that the company hit pay dirt. Mr. Potato Head was a set of plastic noses, ears, eyes, mustaches, glasses, hats, and such with which children decorated potatoes or other foods. (Later a plastic spud was included in the package.) For reasons nobody could quite understand, Mr. Potato Head was a smash hit. Hasbros future was in toys. A bit more than a decade later, Hasbro had another tremendous hit G.I. Joe. The company continued to grow and went public in 1968. When Merrill passed away in 1979, the board of directors named his eldest son, who had been involved in the company since a very young age, the new CEO. Under Stephen Hassenfelds leadership, Hasbro became one of the fastest growing companies in America. The acquisition of game company Milton Bradley in 1984 helped accelerate that growth. When Stephen died suddenly in 1989, leadership passed to younger brother Alan. An acquisition of Tonka, including Parker Brothers, followed. Hasbro properties then included many well-known products, including Monopoly, Batman, Nerf, Play-Doh, Raggedy Ann, Candy Land, Scrabble, Barney, and many more. The toy industry evolved into a two-horse race: Hasbro vs. Mattel. G.I. Joe vs. Barbie. After fending off a takeover bid from Mattel in 1996, Hasbro reached $3B in revenues for the first time that year, behind Mattel at $3.8B.1

Hasbro history abridged from G. Wayne Miller, Toy Wars (Times Books, 1998).
Tuck School of Business at Dartmouth William F. Achtmeyer Center for Global Leadership
Investments in Interactive Games before Hasbro Interactive
Hasbro Interactive was not the first time that Hasbro or companies it had acquired had invested in electronic games, which came into vogue toward the end of the 1970s. At consumer friendly prices under $40, electronic games haunted traditional game industry executives, who wondered if their companies could survive without their own electronic games. By the early 1980s, Ataris video game system (users inserted individual game cartridges into a main control console that used standard televisions for display) was familiar to nearly every child in America. Milton Bradley, still independent at the time, made an acquisition that led to the launch of its own video game system, called VecTrex. Many observers believed that VecTrex was technically superior to Atari, but Ataris vast installed base was difficult to overcome. Third-party software developers focused on developing games for Atari because that was where the biggest dollars were. VecTrex struggled and inflicted severe financial damage on Milton Bradley, and the company sought an acquirer. They succeeded in enticing Hasbro. Though the VecTrex failure cost Milton Bradley its independence, its executives had gained skills in managing outside software developers in the process. Soon they were making lower-risk investments by working with outside software developers to create video games for existing hardware platforms such as Nintendo. The development group conceptualized ways to convert well-known games into an electronic format, did some high-level design and visual work, and then turned the software development over to outside contractors. Some of the companys more technology-savvy employees monitored the contractors work. This remained Hasbros business model for interactive games for some time, both within the Milton Bradley group and within other Hasbro divisions. The company created a brand with a traditional board game or toy, and then translated the concept to video. They never started a game or toy development project with video in mind they waited to see if the traditional project would succeed first. There was one significant exception. In the early 1990s, Hasbro began an ambitious project to develop a virtual reality system a piece of electronic headgear that would create the sensation of moving in a three-dimensional world. Hasbro executives believed that virtual reality had the potential to be so engaging that Hasbro would topple market leaders Nintendo and Sega. Much depended on the development of a leading-edge microprocessor. But by 1995, after Hasbro had invested a few years and tens of millions of dollars, it did not appear that such a microprocessor could ever be produced at a price that consumers would bear, and the company wrote off the investment. Preferring the more immediate possibilities of CD-ROMbased games for personal computers and soon for the Internet Hasbro formed Hasbro Interactive.

Building Hasbro Interactive
Hasbro Interactive was created as a separate and independent division. Legally, it was a wholly-owned subsidiary of Hasbro. Mr. Dusenberry hired five people from Hasbros game division in Springfield, Massachusetts, home of Milton Bradley, and set up shop in Beverly, Massachusetts, home of Parker Brothers. Recognizing that Hasbro employees did not have all of the requisite skills to make the business succeed, Mr. Dusenberry hired a number of outsiders, including Tony Parks, a software developer who was well known within the video game industry, and several experienced interactive game salespeople. Mr. Dusenberry made all operational decisions, including those relating to organizational structure, product selection, and partnership agreements. He reported to Hasbros corporate offices in Pawtucket, specifically to vice chair Sonny Gordon, an executive with a legal background and expertise in mergers and acquisitions. Mr. Hassenfeld and John ONeill, the CFO, also provided oversight. This reporting structure gave Hasbro Interactive substantial separation from the rest of Hasbro. Hasbro Interactive followed Hasbros annual planning and review cycle without significant interaction with other divisions. Hasbro Interactive immediately generated revenues with five of Hasbros existing CDROM products. (Hasbro Interactive paid an internal royalty back to Hasbro.) Hasbro Interactives most important customers were buyers employed by large retail chains, who selected only 5-8% of thousands of available titles. Hasbro Interactives early products were not blockbusters, but their well-known brands generated consistent sales from year to year. Top sellers in any particular year, by contrast, often had short lives. With the support of Mr. Wilson, head of Hasbros game division, Mr. Dusenberry established cooperative operational interactions with Hasbro where needed. For example, Hasbros manufacturing group handled product packaging on a cost-plus basis. And, without any formalized relationship, marketing teams within Hasbro cooperated with Hasbro Interactive to ensure that branding remained consistent as Hasbro Interactive translated traditional products into interactive formats. Al Verrecchia, a senior executive at Hasbro who would become CEO in 2003, commented: Naturally, when Monopoly was turned into an interactive game, the games group had a chance to see what was happening. Monopoly is the crown jewel of Hasbro. It is the best-selling game of all time, and you want to be very careful with it. But it was in the spirit of lets work things out, not you must get the permission of the brand manager.

Because several insiders familiar with existing brands transferred to Hasbro Interactive, Mr. Dusenberry felt that little interaction was required. Though Hasbro brand managers resisted some of Hasbro Interactives edgier designs, there were no major disagreements. Hasbro Interactive paid an internal licensing fee for use of the existing brands. Early titles included Tonka Trucks, Candy Land, Play-Doh, Mr. Potato Head, Battleship, Yahtzee, and others. CD-ROM versions of Monopoly and Scrabble won industry honors. Because software games did not compete for the same retail shelf space as traditional games, Hasbro toy and game executives did not fret about cannibalization. Unfortunately, the opportunity to cooperate in sales was limited. Even where the same retail chain bought both traditional and electronic games, different buyers made purchases based on different criteria. Plus, the standard industry terms differed, especially with respect to returns of unsold product from the retailer to Hasbro.
Accelerating Hasbro Interactives Growth
Hasbro Interactive broke even or came close to doing so in the early years. The divisions plans called for continued growth at profit. Mr. Dusenberry found himself frequently in front of Wall Street analysts, touting the potential of Hasbro Interactive. Revenues more than doubled in 1997, from $35M to $86M. That year, Hasbro Interactive had two games on the industry top-10 list (Frogger and Tonka Search and Rescue). As a result of this strong performance, Hasbros bonus plan paid handsome rewards to Hasbro Interactive employees. Numerous new cars appeared in the Hasbro Interactive parking lot in early 1998. Hasbro Interactive hoped to at least double revenues again that year. To achieve the goal, Mr. Dusenberry expanded Hasbro Interactives activities beyond translating existing Hasbro properties to interactive format. For example, he purchased a license to produce games based on the successful television game shows Jeopardy and Wheel of Fortune. He also purchased rights to all Atari games, hoping to renew interest in classics such as Asteroids and Missile Command. Further, the division announced it was developing its own game from scratch for the first time. Finally, in August, Hasbro Interactive announced the acquisition of two companies, Microprose and Avalon Hill, for $70M and $6M, respectively, to expand its product line further. Microprose employed a roughly $20M/year development staff, which represented approximately a 50% increase in product development spending for Hasbro Interactive. At the time of the acquisition, Mr. Dusenberry commented that the acquisitions were only the beginning of Hasbro Interactives plans.2

Hasbro Interactive to Stabilize into Christmas, Reload Acquisition Guns in 99, Multimedia World, September 17, 1998.
The venture gained momentum through 1998. Frogger became one of the top five games on Sony Playstation. As the Christmas season approached, Mr. Dusenberry, under pressure from the corporate offices, raised the revenue target for 1998 to $200M and urged his team toward achieving the milestone. The team fell slightly short of the goal, generating $196M in revenues. But Hasbro executives considered the year a success nonetheless. Hasbro Interactive generated $23M in profits.
Growth Challenges for Hasbro
Hasbro made several acquisitions through Hasbro Interactives early years. Nearly ten independent business units reported to corporate management. Hasbro executives believed that this structure would spawn greater creativity, innovation, and entrepreneurship. But the multi-business-unit structure placed new and unfamiliar demands on senior leaders, who generally agreed that strategic planning, budgeting, and business performance reviews were not Hasbros strengths. One described the planning process as back of the envelope. Nonetheless, the basic management philosophy at Hasbro was similar to that in other multi-business-unit corporations. Disparities between plans and actual results influenced perceptions of the performance of business unit heads more than any other factor, tempered by the understanding that certain aspects of Hasbros business were inherently unpredictable. For example, while sales of the game Monopoly could readily be projected based on years of history, toys tended to have much shorter life cycles, and projecting the outcome of any new toy launch was next to impossible. Toys tied to movies were even harder to predict, since they relied upon the success of the movie. David Hargreaves, a finance executive who would later become Hasbros chief financial officer, elaborated: We know what kind of products these are. The fact that you are off plan at the end of the year doesnt mean you are going to get fired as long as, through the year, you come back and say, My business is not doing so well and these are the reasons why and this is what I am trying to do about it. Through 1998, to spur organic growth, the company became more aggressive in setting revenue targets for each division. To achieve the targets, most or all of the companys risky initiatives had to succeed. They did not, and an unusually high number of divisions missed their budgets. Encouraged by the board, Mr. Hassenfeld initiated an outside search for a new president and chief operating officer someone who could help Hasbro operate more professionally and who could step in as chief executive if necessary. In the first of what would turn out to be several changes in the senior management team that year, Mr. Hassenfeld hired Herb Baum in January 1999. Mr. Baum, who had
previously served as the chief executive of Quaker State Oil, recalled the decision to accept the challenge at Hasbro: They were looking for outside leadership to enhance the companys management skills. They were looking for someone to come in and bring some discipline. Alan Hassenfeld did a great job of charming me. And he told me that I would be running the company. To increase the perceived level of accountability to plans, Mr. Baum modified the planning system. For example, he called monthly meetings that included every business unit head. For the first time, each participated in all other reviews. All business units reported standard metrics known as value drivers. This naturally increased the sense of competitiveness, although at the time, the competition was limited, as no division felt that it was unable to get the resources it needed to execute its growth plans. Mr. Baum included Hasbro Interactive in the meetings and named Mr. Dusenberry a sector head, clarifying his status as a peer of other business unit managers.

Hasbro Interactive Shoots for the Stars
Mr. Baum was intrigued by the potential of Hasbro Interactive. He viewed traditional toys and games as having very limited growth potential by comparison. He also admired Tom Dusenberry: Tom had a great strength for bringing his people together. He was a good team leader. He had a vision for the business. Soon, early in 1999, there was talk of Hasbro Interactive reaching $1B in revenues within as little as three years. This would require continuing to nearly double revenues annually. Although the target was merely conversational, it was also emotional. It fueled ambition. If Hasbro Interactive achieved the goal, it would vault into position as one of Hasbros largest and most important divisions. The lofty goal changed behavior and affected decision-making. Some senior executives expressed concern about the risks inherent in pursuit of such rapid growth. But nobody acted to put a stop to the $1B aspiration. Mr. Dusenberrys excitement about his businesss potential to reach $1B was transparent to his colleagues. At the time, technology stocks were skyrocketing, and Wall Street encouraged Hasbro to increase investment in Hasbro Interactive. And, Hasbros arch-rival, Mattel, had just announced that it would acquire educational software developer The Learning Company for over $3.5B, taking Mattels interactive revenues to nearly $1B. Mr. Dusenberry and a few members of his staff began scouring the earth to find new ideas. To pursue the good ones, they hired dozens of product developers, signed
several agreements with outside developers, and expanded the number of platforms for which they intended to develop games including a highly anticipated new platform from Sega known as Dreamcast. They made several additional acquisitions and licensing deals. In April, they licensed eleven well-known video games, including Pac Man and Dig Dug from Namco. In June, they created a sports division and signed a five-year licensing deal with Formula 1 to expand their motor sports category. In August, they acquired Europress to move into educational games. Mr. Dusenberry even aspired to acquire Electronic Arts, a video gaming giant with revenues approaching $1B. This string of deals, while consistent with what competitors were doing, dramatically exceeded the plans set forth in the 1999 budget, agreed to in the fall of 1998. Hasbro Interactive was operating with ambition, but without a multi-year plan that estimated the total investment that would be required to reach profitability at $1B in revenues. Through 1999, several Hasbro senior executives began to lose confidence in Hasbro Interactive, despite Mr. Hassenfeld and Mr. Baums continued support. The first precipitating event came early in the year, when Mr. Dusenberry reported the magnitude of product returns from the 1998 holiday season. The returns were large enough to recast Hasbro Interactives 1998 results from a very positive light to a neutral one. The issue caught Hasbro business unit leaders by surprise because they were accustomed to the standard agreements with the retail trade for toys and games, which had very strict conditions for the return of unsold product. The industry standard for software, by contrast, mimicked the publishing industrys very liberal standards. The aggressive sales tactics toward the end of 1998 had come back to haunt Hasbro Interactive. Additional confidence was lost when Hasbro Interactive initiated a Monopoly promotion with Burger King, because Hasbro already had a Monopoly promotion with McDonalds. As a result, some felt that stricter oversight from the established business units was necessary. Jane Ritson-Parsons, who managed licensing agreements for Hasbro, described why she actually found it easier to manage external licensees of Hasbro properties: We have Hasbro personnel at Hasbro Interactive. They do not feel the need to consult with us because they believe that they know what is going on with the brand. But they cant do the research that we do and they dont have the consumer insights that we use to manage our business. A third factor that led to lost confidence in Hasbro Interactive was revisions in financial projections. In addition to higher-than-expected product returns, prices in the industry were dropping as competition intensified. Further, Hasbro Interactives development team missed deadlines and exceeded initial cost projections on several

products. Some new products missed the important holiday season. Developers pointed out that gaming systems were becoming more and more complex, and development times had to lengthen as a result up to as long as two years.
Tightening Controls at Hasbro Interactive
Mr. Verrecchia, who had been promoted to CFO at Hasbro, expressed the strongest concern among his colleagues. Finance executive Mr. Hargreaves, after studying operations at Hasbro Interactive at Mr. Verrecchias request, noted that Mr. Dusenberrys CFO was so busy valuing acquisition targets that he had little time left over to manage Hasbro Interactives financial monitoring systems as efficiently as possible. In fact, business information that was considered standard within Hasbro was unavailable within Hasbro Interactive. Such criticisms annoyed Mr. Dusenberry, who wanted to focus on the future. Some senior executives perceived that Mr. Dusenberry felt he was above concerns about financial details. Responding to pressures for closer supervision of Hasbro Interactive, Mr. Baum started spending more time there. He also hired Charlie McCarthy, a past colleague, to serve as Mr. Dusenberrys chief operating officer, and Jackie Daya, a financial executive from the publishing industry who had managed the integration of several acquired companies, to replace the CFO. Mr. Baum asked both to keep an eye on costs. Within only a few days of starting work with Hasbro Interactive in the fall of 1999, Ms. Daya warned that the division was going to fall far short of expectations for the year. She began implementing more exacting financial systems. At the time, it was difficult for Hasbro Interactive managers to gather information regarding the amount of inventory currently in the retail trade or the total amount of the commitments to outside product developers. Part of the problem was that there were delays in transferring contract information from paper to the financial system. Another issue was that Hasbro had recently installed a new financial reporting software package. The system was optimized for the toy and game business, and did not fit Hasbro Interactives business. Mr. Dusenberry described the impact of the new system on his business unit as a disaster. Ms. Dayas changes were not welcomed at Hasbro Interactive, where employees bristled at anything that they perceived could dampen innovation and creativity. Mr. Dusenberry felt that Ms. Daya was a divisive influence, and his team began to lose confidence in the corporate leadership. Ms. Daya, for her part, did not take the antagonism personally. She believed that Hasbro Interactive personnel were primarily reacting to the fact that her activities were bringing negative information into full view. (Months later, Ms. Daya felt that Hasbro Interactive had accepted the more disciplined processes she put in place. They caused minimal disruption and clarified what was going on in the business.)

Tuck School of Business at Dartmouth William F. Achtmeyer Center for Global Leadership 9
Ms. Dayas next challenge was helping Hasbro Interactive prepare for the 2000 planning cycle. In doing so, she discovered that forward-looking sales plans and product development plans often did not mesh. For example, the sales plan would show revenues for a product before the scheduled launch date. Once such issues were corrected, and revising estimates to make them more realistic based on past experience, the revenue forecast was reduced but was still ambitious at greater than $400M for the year. A few months later, the company closed the books for 1999. Hasbro Interactive had lost $74M on $237M in revenues. Mr. Dusenberry argued that the loss in the accounting sense was a good investment in the divisions future. He reflected on how his colleagues reacted: I learned that there is a fine line between investment and loss. Herb Baum would talk investment and Al Verrecchia would talk about loss and they were both talking about the same expenditures. Several division heads found it difficult to be supportive of Hasbro Interactives product development spending because they felt that there was no clear roadmap in place. Making some more nervous, Mr. Dusenberry wanted to capitalize product development expenditures. While Generally Accepted Accounting Principles allowed that software development expenditures could be capitalized when products were developed based on a proven technology, the practice was unfamiliar within Hasbro, and the company preferred to have standard managerial reporting across all sectors. Concerned about his fate after having lost such a significant sum, Mr. Dusenberry quietly began making inquiries about career options outside of Hasbro.

Launching Games.com

Earlier in 1999, Hasbro had created a venture to offer gaming over the Internet. At the time, many established corporations were trying to cash in on extremely high Internet valuations by creating high-profile online ventures. Mr. Hassenfeld, believing that Mr. Dusenberry had his hands full as it was, asked Mr. Verrecchia, then serving as an executive vice president of manufacturing and operations, to explore online possibilities. Mr. Hassenfeld felt that the company was starting out ahead Hasbro had had the foresight to reserve the URL games.com back in 1995. Outside market research agencies were estimating the potential of Internet gaming to be greater than $1B. Hasbro believed that its traditional game properties were uniquely suited to the Internet because they were not graphics-intensive, and the Internet at that time could support limited graphics. Several ideas regarding how to
generate revenue from online gaming, including pay-per-play, advertising, and sponsorships of tournaments, were discussed. Mr. Verrecchia worked to establish the necessary agreements to get games.com off the ground. First, he needed to find a partner to operate and support the Web site so that Hasbro would only have to provide the content. After frightening discussions with America Online, Mr. Verrecchia chose the Go To Network in December 1999. Though the name was not as well known as America Online, it had grand ambitions backed by high-profile investors, including Paul Allen of Microsoft. Mr. Verrecchia also had to work through some significant legal complications. For example, some popular Hasbro properties were tied to licensing agreements with the original inventors. At the time such legal agreements were created, nobody visualized the Internet. Was an Internet game the legal equivalent of a consumer electronics product? If a license allowed distribution in North America, did that include distribution over the Internet? As these issues were addressed, Hasbro built a $100M game studio in Silicon Valley. Immediately thereafter, however, the company ran into difficulties hiring a sufficient number of product developers. The market for talented developers was so competitive that it was difficult for Hasbro to compete without lucrative options packages on the table. Hasbro, like many other companies at the time, was also losing managers to the dot-coms, the most notable of whom was Meg Whitman, a toy executive who became the CEO of eBay. Hasbro began investigating what would be required to take games.com public with a tracking stock. Agog with visions of personal wealth, Hasbro employees interested in transferring to games.com concerned themselves with options packages on the (still nonexistent) tracking stock. They agreed to forego additional options on Hasbro stock in order to receive them. Alan Hassenfeld commented: Everybody in Silicon Valley was throwing options around, and every potential hire wanted to know when we were going public. Greed became the mentality, and it became very disconcerting to watch. Because of the hiring difficulties, Hasbro announced that they would delay the launch of games.com until 2001.

Further Difficulties for Hasbro Interactive
Hasbro Interactive proceeded somewhat more carefully in 2000, a year that would prove the beginning of the end for many software companies caught up in the dotcom frenzy. The company continued to develop new products but made fewer, more deliberate bets. Despite the fact that one product, Roller Coaster Tycoon, became the
industrys best seller, Hasbro Interactive suffered early in 2000 when returns were once again disappointingly high. Worse, the division continued to miss product development deadlines. Further, it became clear that certain properties, particularly a flight simulator game, cost far more to maintain than was anticipated. Many employees within Hasbro Interactive, once energized by the divisions promise, wondered if their jobs were secure. It was also a difficult year for Hasbro as a whole. Several major product lines fell short of expectations, including Star Wars, Furby, and Pokemon. With fewer resources available, debates between business unit heads about appropriate uses of capital became much more contentious. Hasbros stock price dropped from $37 in the spring of 1999 to $11 by the middle of 2000. For the first time in more than two decades, Hasbro would lose money in 2000. In March, Mr. Verrecchia, who had maintained a conservative and concerned point of view on Hasbro Interactive, convinced the senior team that Hasbro Interactive should create a business plan that incorporated a long-term goal of $300M in revenues, not $1B. Mr. Dusenberry was dismayed, believing that growth far beyond that level was possible with a commitment to invest. A few months later, a frustrated Mr. Dusenberry announced his intention to leave Hasbro, but to his surprise, Mr. Hassenfeld and Mr. Baum worked hard to get him to stay. They even agreed to put games.com under his control. Only a short time later, in August, Mr. Baum received an offer that he could not refuse a position as chief executive of Dial Corporation. Although Mr. Hassenfeld had given him a great deal of latitude as president and COO, Mr. Baum had already been a CEO and wanted to return to a position of full control. Mr. Verrecchia was promoted to Mr. Baums position. With Mr. Hassenfelds support, he moved once again to curtail the losses at Hasbro Interactive. Soon thereafter, he let Mr. Dusenberry know that he was looking at strategic options for Hasbro Interactive. He wanted to sell the division. Mr. Dusenberry agreed to support the effort. By the end of the year, Hasbro sold Hasbro Interactive, including the games.com website, to a French company, Infogrames, for $100M. The deal provided that Infogrames license Hasbro properties, creating ongoing revenue streams for Hasbro. At roughly the same time, concluding a well-publicized disaster story, Mattel sold The Learning Company, and received nothing more than a share of the companys future earnings. Two months later, in February 2001, Infogrames laid off 40 of the 150 employees working at the former headquarters of Hasbro Interactive.

Refocusing Hasbro and Learning from Hasbro Interactive
From 2001 through 2003, Mr. Hassenfeld and Mr. Verrecchia executed a strategy of refocusing Hasbro on excellence in its core activities and succeeded in restoring the company to profitability. Mr. Verrecchia was promoted to CEO in May of 2003, his thirty-eighth with Hasbro, and Mr. Hassenfeld retained the title of chair. In Hasbros portfolio there remained one property with an interactive component, Wizards of the Coast, which Hasbro had acquired in 1999. Hasbro had managed the property separately from Hasbro Interactive, and it was still performing well. Its lead product, Magic: The Gathering, was an engrossing fantasy and role-playing game that involved establishing characters with certain attributes that fought in battles. The concept spawned large sales of trading cards, plus a desire for a great deal of online interaction among fans of the game. It was unlike any other Hasbro Interactive property in that sense, so it was not clear how to translate the success of Magic: The Gathering to additional interactive successes for Hasbro. The Internet frenzy had waned. One sign of the times was that Electronic Arts, which had once paid millions to America Online to put its games online, was receiving a fee from America Online for use of its product. And it appeared that families were forsaking the PC and returning to the family room to play traditional board games. Mr. Verrecchia commented: I think that when you sit around on a Friday night and play Scrabble or Monopoly with your family and neighbors with some pizza and beer you are having a completely different experience than when you sit in front of your computer playing alone or even with an anonymous partner over the Internet. Nonetheless, interactive products remained an important part of the Hasbro strategy. But Hasbro would rely on licensing their brands to external developers. In retrospect, some executives felt that licensing should have been the approach all along. The company also began to analyze the extent to which their interactive products affected the sales of traditional games. Hasbro executives drew many conclusions from the Hasbro Interactive experience. A common conclusion was that with any ambitious growth plan, it is important to set specific expectations in advance regarding tolerable losses in the early years. Mr. Verrecchia commented: I think the way we went about it was emotional rather than strategic. I do not think we really sat down and tried to put together a plan. Tom [Dusenberry] promoted it, and he got the support that he needed.
Mr. Dusenberry, who by 2003 was serving as chief executive of Marblehead Entertainment, which focused on games for wireless devices, summarized his own conclusions: Hasbro Interactive is really two stories. It is the story of an independent company, effectively managed outside of Hasbro until 1999, and then it is the story of how, in 1999, Hasbro decided to help us out. We went from total independence to being totally controlled by corporate. It was a great success story going from zero to $200M in four years, but then in 1999 corporate management wanted $1B and they had to own a piece of the success. Mr. Dusenberry continued: I really respect Al Verrecchia. He is a bright son of a gun and he has done a great job in turning Hasbro around. And perhaps he also deserves credit for recognizing tremendous risks associated with any attempt that Hasbro makes to stretch beyond its existing capabilities in traditional toys and games. Several senior executives shared nearly equivalent viewpoints regarding Mr. Dusenberrys role in the Hasbro Interactive story and his general strengths and weaknesses. Mr. Dusenberry was a tremendous visionary, motivator, inspirer, and promoter, they believed. But his weaknesses in finance and operations, a point of concern for some even before Hasbro Interactive was launched, appeared to be critical factors leading to Hasbro Interactives downfall. His consistently rosy projections, even in the face of bad news, eventually cost him his credibility. To some he appeared at times simply to be in denial. One executive described Mr. Dusenberry as an outstanding thoroughbred that needed reins and a good jockey. He needed to be married with the right partner to round out his skills. Too strong a belief in too rosy a future was hardly limited to Mr. Dusenberry. Mr. Hassenfeld commented: People became bigger than they really were. Too many people, too much overhead, too many egos. Regrettably, it all imploded. At the end of the day it was my fault, because I was watching over the whole thing. People began approving things that never would have been approved a year or two earlier. While acknowledging the need for an outside hire as COO, Mr. Hassenfeld regretted turning over so much authority so quickly to Mr. Baum. In Mr. Hassenfelds view, Mr. Baums heart was never in the business like the hearts of those who had been with Hasbro for decades.

Mr. Verrecchia drew his own lessons from the experience, believing that it was prudent to be much more cautious in diversifying beyond the core business, and that it was important to maintain strong links with the core when doing so. He also concluded that it was a mistake to accelerate spending so quickly, or even to aspire to grow so quickly. Further, he believed it was important that any new venture report to a general manager of an established business. Finally, he resolved not to pay quite such close attention to Wall Street: Businesses must stay on strategy. Unfortunately, there is always pressure from Wall Street to produce immediate results even when it is detrimental to your long-term health. If you allow yourself to be caught up in Wall Street pressures, your business will suffer. That is why I don't have a problem telling the Wall Street community that we will not run our business based on their opinions.

Appendix 1

Interviews for this case included: Alan Hassenfeld, Chairman of the Board, Hasbro, Inc. Al Verrecchia, President & Chief Executive Officer, Hasbro, Inc. Dave Wilson, President, Games, Hasbro, Inc. David Hargreaves, Chief Financial Officer, Hasbro, Inc. Herb Baum, former President and COO, Hasbro, Inc. Jackie Daya, Senior Vice President Corporate Finance, Hasbro, Inc. Jane Ritson Parsons, President, Hasbro Properties Group, Hasbro, Inc. Tom Dusenberry, former President, Hasbro Interactive

VOL.5 NO.3

Hannah Overcomes the Odds
Supporting Parents across South Florida

Born without a Face

page 9

Genetics

Julianas Story

A Magical Place

Announcing the Amazing Andy and the Great Gaston!
President and Chief Executive Officer Miami Childrens Hospital

Thomas M. Rozek

President Miami Childrens Hospital Foundation

Robin Reiter-Faragalli

Director of Marketing & Public Relations

Marcia Diaz de Villegas

Miami Childrens Hospital
Director of Marketing & Community Relations, Miami Childrens Hospital Foundation

Ivette R. Diaz

Editor

Rachel Perry

Contributing Writers
Ivette Diaz, Maria Moldes, Daniel Brantley, Jenny Havron, Heather Henning, Erin King, Sheryl K. Montle, Kiki Thompson, Toby Pendergrass, Jason Skinner

Designer

Marianne R. Dunn

Developed by

(800) 624-7496

Dear Friends, Sincerely,

MIAMI CHILDRENS HOSPITAL
MIAMI CHILDRENS HOSPITAL BOARD OF DIRECTORS 2005
Rene Murai, Esq.,Chairman Gary Gregory, Vice Chairman Deise Granado-Villar, MD, Secretary Georgina Angones; Jos A. Bengochea, MD; Peter Bermont; Evalina Bestman, PhD; Jos A. Carro, MD; Miles Gilman; Ghislain Gouraige Jr.; Manny Kadre; Andrew Labbie, MD; Sarah Legorburu-Selem, MD; Juan Carlos Mas; Christian C. Patrick, MD, PhD; Gene Prescott; Thomas M. Rozek; Moises Simpser, MD; Mario Trueba; JoAnne Youngblut, PhD, RN; Robin Reiter-Faragalli, Ex-Officio
MIAMI CHILDRENS HOSPITAL FOUNDATION OFFICERS AND DIRECTORS
Mark Blank, Chairman Robin Reiter-Faragalli, President J. David Scheiner, First Vice President Alan Ojeda, Second Vice President William L. Morrison, Treasurer Thomas M. Cornish, Secretary Donald H. Altman, MD; Neil R. Chrystal; Jesus Diaz; Constance M. Fernandez; Victor Lopez; Juan Carlos Mas; Mario Murgado; Kenneth J. Reilly; Roberto Rocha; Susan M. Sibley; Eric W. Sulzberger; Teresa V-F Weintraub; Judy Weiser; Dawn White; Thomas M. Rozek, Ex-Officio
When a child is born with a genetic disorder such as Downs syndrome, the family often has lots of questions and concerns. Thats where the Division of Clinical Genetics and Metabolism at Miami Childrens Hospital comes in. The genetic counselors are helping many parents find the support and education they need. They also meet with families who have risk factors based on their ethnicity or family history. You can read about this exciting program on page 4. Youll also learn about little Hannah Saenz, who was born with her bladder outside of her body. With only a limited time to perform a very delicate surgery, doctors at Miami Childrens repaired Hannahs bladder. Shes now perfectly happy and healthy. You may have seen the program on Juliana Wetmores remarkable life and her experiences at Miami Childrens on Discovery Healths The Learning Channel (TLC). If not, youll be captivated by the story of the girl who was born without a face. Her brave parents have helped her remain healthy and develop normally throughout the many surgeries necessary. We hope you enjoy this issue, which is packed with helpful information for parentsfrom the exciting features on our web site to new clinical research studies currently underway. Thank you for your support of our programs, services and the new technology and procedures we continue to bring to the families of South Florida and beyond.
Christian C. Patrick, MD, PhD
CHIEF MEDICAL OFFICER/SENIOR VICE PRESIDENT FOR MEDICAL AND ACADEMIC AFFAIRS

Childrens Gazette

Fall 2005
Enjoying one of her favorite activities playing at the beach is a joy to Hannah Saenz, who was born with her bladder outside of her body.

Overcoming

PATIENT PROFILE:
fter a normal pregnancy and delivery, Marisela and Michael Saenz couldnt wait to see their beautiful baby girl. Right away, though, they noticed something was wrong. Incredibly, Hannah Saenz was born with a condition known as bladder exstrophyher bladder was outside of her body and turned inside out. Hannah was taken to Miami Childrens Hospital with only a 48hour window to perform a delicate surgery to repair her bladder.

A MATTER OF URGENCY

Hannah Saenz
urologist on staff at Miami Childrens. He explained Hannahs condition and the urgent need to repair her bladder. Due to the flexibility of Hannahs bones in the first few days of life, Dr. Labbie would be able to repair her bladder and reset her pelvic bones without breaking them.

THE DELICATE PROCEDURE

It didnt take but a moment to realize something was a little off, says Marisela, recalling the first time she held Hannah in the delivery room. I thought it was because of the angle I was looking at her, but her umbilical cord was a little down and off to the side and she had a tiny, balloon-like protrusion in her abdomen. The obstetrician who delivered Hannah thought the protrusion could be her bladder and called for the opinion of the neonatologist on staff, who agreed. Soon afterward, the family received a visit from Andrew Labbie, MD,

With bladder exstrophy, the bladder isnt roundits flat like a pancake, explains Dr. Labbie. We have to make it into a ball and place it where it should be in the abdomen. Because the umbilical cord was placed at the top of her bladder, we also had to create a bellybutton. To assist with positioning the pelvic bone, Hannah needed orthopaedic surgery and a cast to keep her pelvic bone in place. For six weeks following the surgery, Hannah was in the cast that went from under her arms to her ankles.

THE ROAD TO RECOVERY

(UTIs), which are common for children affected by the condition. Hannah had ureter implantation surgery performed by Dr. Labbie, and her UTIs disappeared. Dr. Labbie and his staff have been wonderful, says Marisela. When we first heard about bladder exstrophy, the prognosis sounded very bleak. Some children never retain continence, but Hannah has and her bladder has grown significantly. Our 6-year-old little girl is a miracle thanks to Dr. Labbie and Miami Childrens Hospital.

FUN FACTS ABOUT HANNAH

HOBBIES Ballet, being outdoors (climbing trees, swinging on a swing set, collecting snails and rocks, etc.) FAVORITE DESTINATION: The beach WHAT SHE WANTS TO BE WHEN SHE GROWS UP: Ballerina (previously, Hannah wanted to be a doctor because she loves learning about science and the human body)
Despite the critical condition in which she was born, Hannah recovered beautifully from surgery and continued to do well. Then, around age 2, she began having complications due to frequent urinary tract infections

Fall 2005 Childrens

Gazette

Wture Fu

of the
rom the time a woman becomes pregnant, her childs best interest lies at the center of every decision the family makes. Genetic counseling can help parents make important decisions, even before a child is born, by understanding if that child will have any special challenges. Some parents who carry genes for fatal disorders can decide if they want to have children of their own, if they will adopt or if they will choose a life without children. Family history and ethnicity are the most important genetic components and predictors (see All the Children of the World) for future generations.
People who choose to have genetic counseling answer extensive questions about their cultural heritage as well as give detailed family history information. Counselors review these results and then discuss the genetic risk factors and predilections in detail. Genetic counseling is about education and helping people cope with genetic information, says Katherine Schain, MS, CGC, genetic counselor on staff at Miami Childrens Hospital. We give people information about their children, their pregnancies and themselves so they can make informed choices based on an array of options.

ITS A BEAUTIFUL LIFE

Genetic counseling is helping more and more people cope with both inherited and non-inherited genetic disorders. Whether people receive counseling when they are pregnant, after their child is born or for a family disease such as cancer, genetics are changing the face of health care.
Dr. Bauer sees all children as a blessing, regardless of their mental or physical condition. She loves them and it shows. Her enthusiasm for working with parents and children alike helps me keep going during difficult times. Frances Capo, whose
9-year-old daughter Natalie has Downs syndrome
Frances Capo is the mother of two girls, 9-year-old Natalie and 8-year-old Amanda. Each is doing very well in school and acts like any other little girl with one difference: Natalie has Downs syndrome.

fall 2005

Could Genetic Counseling Help You?
You may want to consider genetic counseling if any of the following risk factors apply to you and your family: an amniocentesis detects a chromosomal defect in the unborn baby prenatal testing detects an abnormality you have experienced multiple miscarriages with no known cause you have epilepsy or diabetes that requires you to take insulin you have inherited diseases or birth defects in your family history you have a child with a genetic disorder or birth defect you are a mother-to-be who is 35 or older ethnicity or race is a factor (see All the Children of the World) you have an extensive family history of cancer
You never expect something like this, says Frances. We have no history of this chromosome in our family, so we didnt see it coming. After Natalie was born, Frances met with Mislen Bauer, MD, Medical Director of the Division of Genetics and Metabolism, clinical geneticist and pediatrician on staff at Miami Childrens. Genetic testing showed a clear diagnosis of Downs syndrome. Dr. Bauer sat down with the Capos and explained what Downs syndrome is and the chances for another child of theirs to have the same condition. She provided them with helpful resources such as a support group for parents of children with Downs syndrome, educational materials and advice about how to best raise Natalie for a healthy life. Natalie goes to a public school and participates in a regular classroom, says Frances. She is entering the fourth grade, is outgoing
and does everything along with all of the children in our family. She can do whatever she sets her mind to.
HELPING GENERATIONS TO COME
Dr. Bauer and Schain serve people in the community who have questions about genetic issues. For example, a woman with a strong family history of breast cancer who has two daughters can discuss the risk of her or her daughters developing the disease. The more we know and learn about genetics, the greater our chances are for having healthy children, says Dr. Bauer. Diabetes, cancer and heart disease are all conditions that have a significant genetic component. Unlocking the genetic code for one disease will help the future of medicine. It will also help the future of our children. Call the Division of Genetics and Metabolism at Miami Childrens Hospital at (305) 663-8595 for genetic counseling.

Genetic counselors dont alter ones genetic material or make decisions for people. We are a resource for those who are looking for answers to genetic questions. Genetics are becoming part of our everyday lives not only with regard to pregnancies, but with chronic diseases as well. Understanding genetics and having professionals who can provide this information will become increasingly important in the future. Katherine Schain, MS, CGC, genetic counselor
on staff at Miami Childrens Hospital

All the Children of the

enlarged liver or spleen as well as bone deterioration. Once genetic testing confirms the disease, the enzyme can be replaced and the individual can lead a healthy, disease-free life. There are several other genetic conditions that are more common in this ethnic group for which testing is available.

CAUCASIANS

Every ethnic group has a genetic predisposition for certain diseases or medical conditions. The diverse cultures in South Florida encompass all of these ethnicities and the unique heritage they bring with them. Here are a few of the most common genetic disorders among specific ethnic groups.
AFRICAN-AMERICAN, CARIBBEAN AND HISPANIC
Sickle cell disease occurs when the shape of red blood cells changes. Such changes cause high infection risk, anemia and severe pain. One out of every 10 African-Americans are carriers. Blood transfusions and antibiotics can treat the disease.

ASHKENAZI JEWISH

One in 29 Caucasians carries the gene for cystic fibrosis. Those who have this illness experience lung and digestive problems. Daily lung treatments may be required as well as antibiotics to treat infection. Digestive troubles can be treated with diet and medication.
MEDITERRANEAN, SOUTHEAST ASIAN AND AFRICAN
The Ashkenazi Jewish population in Miami and surrounding areas has a prevalence for Tay-Sachs syndrome, a neurological condition. Babies are born with no evident disorders but begin to physically and mentally deteriorate. A recessive gene carries the disease. There is a 25 percent chance of passing it on to each offspring if one parent is a carrier. In addition, one out of 40 Ashkenazi Jewish people carry Canavan disease, a slowly deteriorating disorder of the central nervous system. Symptoms become visible by the time a child is 3 to 5 months of age. Gaucher disease is another genetic condition within the Jewish community. This disease results from a missing enzyme, which can cause an
These groups are at a higher risk for thalassemia. A group of anemias within the body, the disease can range from moderatewith no symptoms presentto severe. Treatment for thalassemia consists of red blood cell transfusions. Miami Childrens Hospital hosts free genetic screenings to determine your familys risk. Call (305) 663-8595 for more information.

fall 2005 Childrens

Convenient Imaging,

Enhanced Care

Good news for families in southern Dade County: When your child needs an X-ray or ultrasound, services are just around the corner. Imaging technology is now available at Miami Childrens South Dade Center, one of Miami Childrens Hospitals outpatient facilities.
his fall the South Dade Center added outpatient radiology services such as X-ray and ultrasound, making care a lot more convenient for the residents of southern Dade County.
In the past, parents have asked their childrens physicians if there was another option for radiology services that would allow them to go to an outpatient facility rather than drive to Miami Childrenswhile still receiving the same level of care, says Ginger Kinch, Director of the South Dade Center. Now that weve added X-ray and ultrasound, patients can get the same quality care and service thats available at the hospital in a setting thats more convenient for them. Miami Childrens South Dade Center has served the community for the past four years, offering a Rapid Care Center that provides after-hours
care for children with minor illnesses and injuries. Other services include rehabilitative services, adolescent medicine, preventive medicine and an Early Steps program, which provides care for children at risk for developmental delays. Now, with the addition of ultrasound and X-ray, the center will be able to provide more comprehensive care under the same roof. The center also plans to add MRI and CT services in the near future. Having walk-in X-rays and ultrasound by appointment means patients can take care of more of their healthcare needs closer to home, Kinch says. Its a great option for the community. Walk-in X-rays are performed Monday through Friday, from 4 to 7 p.m. Ultrasound is available by appointment only and requires a prescription. For more information or to schedule an ultrasound appointment at the South Dade Center, call (305) 662-8293. The centers direct line is (786) 268-1777.

for Better

Partnership

Health

PhD, MBA, Director of the Research Institute at Miami Childrens. Patients and families can rest assured that new areas of study such as medication for cancers and cardiovascular disease are administered and conducted by highly trained researchers.

ENHANCED SERVICES

iami Childrens Hospital is proud to offer young patients a higher level of care through a recent partnership with Quintiles Inc., a worldwide organization that provides healthcare industries with professional services, information and partnering solutions in the pharmaceutical and biotechnology areas.

BENEFITS OF THE PARTNERSHIP
The collaboration with Quintiles Inc. provides Miami Childrens with the opportunity to train new clinical investigators at the hospital, gain access to a wide range of clinical trials and offer new and advanced medicines to patients. In all areas of this partnership, safety is a top priority, says Stuart Horowitz,
Several areas at Miami Childrens benefit from clinical research, including: adolescent medicine allergy/immunology cancer cardiovascular disease gastrointestinal hematology neonatology
nephrology neurosciences psychology pulmonology radiology Children who have needs in these areas and others also benefit from participating in studies with investigational medications and medical devices. Before children become part of any such study, their parents or legal guardians must give permission. For more information about Miami Childrens partnership with Quintiles Inc. or to see if your child is eligible, call (800) 432-6837.

Philanthropic Profile

he World a k i ng t
Hasbro Latin America: Helping make the present and future of Miami Childrens Hospital a little bit brighter.
n recent years, Hasbro Latin America has made a difference in the lives of children at Miami Childrens Hospital with something more than its toys. The company hosts an incredible pre-holiday toy sale at one of its warehouses and donates 20 percent of the proceeds to Miami Childrens Hospital Foundation. In addition, it has donated toy products and sponsored Miami Childrens events. All in all Hasbro has contributed more than $70,000 to Miami Childrens, and most importantly, through its corporate generosity, it has helped to put smiles on the faces of countless children treated at Miami Childrens Hospital.

A ONE-OF-A-KIND SALE

The annual toy sale features many of the brand names and toys for which Hasbro is recognized, including the very popular Star Wars action figures. Last year more than 5,000 shoppers flocked to the weekend sale looking for holiday gifts from name brands including Playskool, Play-Doh, Tonka,
GI Joe, Milton Bradley, Parker Brothers, Transformers and My Little Pony. This years sale will also include items from Littlest Pet Shop and B-Daman. Hasbros Pre-Thanksgiving sale has grown tremendously thanks to the efforts of the Hasbro team, the help of the volunteers and the fantastic deals offered to the public on name brand toys. Many people dont realize how big the toy sale is, explains Victor Velarde, Director of Sales at Hasbro Latin America. Its very exciting to be able to provide great merchandise at a great price and at the same time have a positive impact on the continued development of Miami Childrens and the well-being of children who turn to the hospital for care. Everyone at Hasbro Latin America is proud of the support they provide to the hospital. The best part about the toy sale is helping the community, says Raul Puga, Sales Manager with Hasbro Latin America. Knowing were helping children while working with one of the best childrens hospitals around makes the entire experience worthwhile.

magic and pull rabbits out of a hat, recalls Dr. de Cardenas, with a chuckle. When the program for the talent show was published, the then 12-year-old Dr. de Cardenas discovered to his dismay that his name appeared with the promise that he would perform magic tricks. He was then forced to scramble to learn tricks in time for the holiday talent venue. Like Dr. Labbie, Dr. de Cardenas continued to pursue magic over the years. He practiced during medical school at the Central University of Madrid and later as a U.S. Army surgeon during the Vietnam War, where he would use magic tricks as a way to distract and amuse injured soldiers.
A SPELLBINDING PERFORMANCE
Yearsand many card, rope and rabbits-out-of-the-hat tricks later Drs. Labbie and de Cardenas look forward to their annual hospital magic show, which is one of the highlights of Miami Childrens holiday calendar. Theres nothing like standing on a stage in front of a crowd of children and seeing the excitement on their faces, Dr. Labbie says. When kids are mesmerized and able to forgeteven if its just for a few minutesthat theyre in the hospital, weve done our job.
Dr. Labbie discovered the art of illusion as a boy growing up in Miami. Captivated by a magic instructors sleight of hand, Dr. Labbie began a hobby that would last his lifetime and even serve as his career before he decided to pursue medicine. I was a full-time magician performing at birthday parties and in clubs and restaurants when I decided to be a physician. I used my magic tricks on interviews while I was applying to medical schools, says Dr. Labbie, who earned a medical degree from Northwestern University in Illinois. He also performed regularly during his fellowship at Baylor University in Houston.
Gaston de Cardenas, MD, chief of otolaryngology, a.k.a. The Great Gaston; poses with Jordy Sanchez and Andrew Labbie, MD, urologist, a.k.a., The Amazing Andy during a magical performance.
he shrieks and giggles of children as they ate chocolate cake and watched a colorful clown make balloon animals filled the air at Juliana Wetmores 2-yearold birthday party in March. Only the guest of honor couldnt eat any birthday cake or laugh with her friends. Julianathe subject of an hourlong Discovery Health Channel documentary titled Born without a Face that aired nationally in Augustneeded her fathers help blowing out the candles. She has a rare condition called Treacher Collins Syndrome (TCS) that affects one in about 10,000 babies each year. Born without an upper jaw, cheekbones, eye

Julianas Story: Born without a Face T
An energetic and happy 2 year old, Juliana Wetmore has developed normally. Here she waves at her reflection with her mother, Tami.
sockets or ears, Juliana has the most severe case of TCS in medical history.
FACING THE FUTURE WITH HOPE
Days after the birthday celebration, Juliana and her parents made the six-hour trip from their home outside of Jacksonville, Florida, to the Craniofacial Center at Miami Childrens Hospitalthe states referral center for children with craniofacial anomalies. There, Chief of Plastic and Reconstructive Surgery S. Anthony Wolfe, MD, used innovative medical techniques to fix a hole in her skull and lengthen her lower jaw. It was Julianas 15th surgerymost of them performed at Miami Childrensand the most
major procedure she has undergone to date as the craniofacial doctors help construct her face and features. Discovery Channel crews captured Julianas devoted parents Thom and Tami as they prepared for the surgery, as well as the actual fivehour procedure, which was a success. Juliana has a long road ahead of her, but shes already come far. When she was born, some doctors didnt think she would live. Now plans are in the works for a college fund. She has a ballerinas feet, a pianists fingers and a perfect brain, says Thom. We know she has a lot to show the world.
Got a Question about Your Childs Health?
The answer could be just a click away at www.mch.com! our child has a fever and
youre not sure whether to take him to the doctor or wait it out at home. If youre like many parents, you might turn to the Internet for advice. But with more than 100,000 health-related sites, how do you know which one to trust? Turn to the experts at Miami Childrens Hospital. Youll be amazed at the variety of topics you can find at www.mch.com, from treating your childs fever to identifying symptoms for numerous medical conditions.
topics for parents, children and teens or learn the latest in childrens health news. While your health questions are answered, your young children can learn about their bodies and their health with kid-friendly games, quizzes and articles. The site also features sensitive topics for teens ranging from drugs and alcohol to concerns about body image.

TURN TO US

WHAT YOULL FIND
To access the wide range of health topics, simply click on For Patients at www.mch.com then KidsHealth. From there you can browse different
Let www.mch.com be your trusted resource for health information for your familybut dont stop there! Check our web site to find community education, sign up for a free monthly e-newsletter or learn the latest childrens health advisories. Visit www.mch.com today, where a world of health information is at your fingertips.

Foundation Events Recap

MCH Foundation Thanks Wal-Mart
Wal-Mart Day was recently held at MCH Foundation. Wal-Mart district managers, store managers and associates were able to see first hand why their continued support is so crucial. Activities included a tour of the hospital and the Wal-Mart Healthmobile and meeting one of our Childrens Miracle Network families. Thank you to Wal-Mart, its associates and customers for their unwavering support!

Hersheys Kissmobile

Hardware Conference
The 17th annual Hardware Conference was held at the beautiful Marco Island Marriott. Once again, vendors donated their product booths for the live and silent auctions to benefit MCH Foundation. Thank you to Tom & Dale Chasteen (Ace Dealers) for another great event in 2005!

CMN News

It is with great pleasure that we welcome Outback Steakhouse as a new Childrens Miracle Network sponsor. Many exciting promotions are planned for 2006, and we look forward to working with the 14 locations in Miami-Dade, Broward and Monroe counties.
The Hersheys Kissmobile and costumed characters recently made their annual visit to Miami Childrens. Patients had their pictures taken with the costumed characters and received goodies from Hersheys.
Swing for Smiles Golf Tournament
Wed like to welcome the following new RE/MAX offices to the CMN family: RE/MAX Beach Properties in Hallandale RE/MAX Diamond Group in Ft. Lauderdale RE/MAX Ft. Lauderdale Vista Health Plans corporate team was this years first place winner at our summer golfing event hosted at the Biltmore Golf Course. A special thank you to our sponsors, Dimension Leasing, Bell South and Arellano Construction for their support of Swing for Smiles.
From left, Thomas M. Rozek, President, Miami Childrens Hospital; Patrick Reagan; Peter Joseph; Andy Balash; Danny Garcia; and Robin Reiter-Faragalli, President, Miami Childrens Hospital Foundation

Cold Stone Creamery

Cold Stone Creamery franchisee Al Kahn celebrated the grand opening of his Coral Gables store by donating the proceeds from the sale of the Grand Opening Weekend Ice Cream Passes to Miami Childrens Hospital Foundation. Congratulations Al and stay cool!

Robin Reiter-Faragalli (center) receives a check from Cold Stone Creamery franchisee, Al Kahn, and Susan Veillette, general manager.
Romance 106.7 FM Summer Toy Drive
SBSs Romance 106.7 FM received a call from a parent whose child was being treated at Miami Childrens. The parent requested help collecting toys for the Cancer Unit. DJs Alberto Sardias and Nancy Elias asked listeners and business contacts to bring toys to the station located at 1001 Ponce de Leon Boulevard in Coral Gables. They presented MCHF with a donation of toys and music CDs for the kids in the MCH Cancer Center. The Miami Lakes Congregational Church joined their efforts. They also held a toy drive and donated a wonderful assortment of toys. Thanks to Romance 106.7 for their support.

Cartier Charity Sale

Susan Pullin and Cartier Bal Harbour hosted the first Cartier Charity Sale in South Florida with a portion of the proceeds benefiting Miami Childrens Hospital Foundation. The famous French watchmaker and jeweler provided a fabulous selection of Cartier watches and jewelry as well as gift items that included pens, scarves and gorgeous leather items at up to 50 percent reductions for the public. The sale, which has been traditionally hosted in New York City, topped all previous sales records for the company. Thanks to Susan and her entire team of sales associates and to Cartier for its $30,000 contribution to Miami Childrens.

Judicial Cocktail

The Miami Beach Bar Association hosted its Annual Judicial Cocktail at Lincoln Roads trendy hot spot TOUCH. A portion of the proceeds benefited Miami Childrens Hospital Foundation. Thank you to all of those who contributed, and a special thanks to event co-chairs Jamie Segal and Joshua Entin for a fun-filled evening with the Judges on the Road.

Upcoming Events

November 11
Queen of Hearts Luncheon & Saks Fifth Avenue Fashion Show featuring Angel Sanchez at the Fontainebleau Hilton. For more information, please contact Ann Lyons at (786) 268-1830.
From left: Gilbert Squires, board member; Joshua Entin; Jamie Segal; and Mitchell Zeiger, president of the Miami Beach Bar Association

November 12 & 13

Local participants of Marriotts Torch Relay will complete their portion of the relay in South Florida. This years relay begins in Washington, DC, and ends in Los Angeles. For more information, please visit www.torch-relay.org or call (786) 268-1827.

November 19 & 20

The Fifth Annual Hasbro Toy Sale will be held at JAS Forwarding, 2750 NW 84th Avenue, in Miami, from 8 a.m. to 6 p.m. on Saturday and 9 a.m. to 3 p.m. on Sunday. For more information, please contact Alexis Viera at aviera@mchf.org or (786) 268-1827.

December

Legal Sea Foods will make a donation to MCH Foundation for every Legal Seafoods Holiday gift card purchased during the holiday season. Gift cards can be purchased at three South Florida locations: Town Center in Boca Raton, The Oasis at Sawgrass Mills and CityPlace in West Palm Beach. For more information, please contact Maria Moldes at mmoldes@mchf.org or (786) 268-1832.

Planned Giving

My 4-year-old nephew, Josh, was recently admitted to Miami Childrens Hospital with Kawasaki syndrome, an extremely rare illness that can cause permanent damage to the heart. Josh was diagnosed early, so his heart will suffer no permanent damage, but his illness made us realize how quickly children become vulnerable to sickness or diseaseand the effects on their families and loved ones. We wanted to help, so we created Joshs special fundKeep Kids Smiling. Supporting the Hospitals Child Life Department, these funds help children with acute or critical illnesses or injuries who are hospitalized for long periods of time. The Child Life Department receives many donations, but has an ongoing need for certain items such as musical toys, crib mobiles and DVDs for teenagers. The continued support of Keep Kids Smiling will aid the purchase of recreational and educational items, carefully selected by Child Life Specialists and distributed throughout Miami Childrens inpatient units. There are limitless needs at Miami Childrens. If youd like to do something special, please call Karen Dudley, Vice President of Development at the Foundation, and shell help you find the perfect fit. You can also make a tax-deductible donation to MCH Foundation for Keep Kids Smiling in memory of or in honor of someone special. Sincerely, Staci Ehrenkrantz and the Ehrenkrantz Family

January/February

Aventura Mall and The American Performing Arts Network will host the 2006 Miamis Most Photogenic Baby Contest. Photographs will be taken at Aventura Mall Thursday, January 26 through Sunday, January 29 from 10 a.m. to 7 p.m. (Sunday from noon to 5 p.m.). Awards ceremony on Sunday, February 26 at 1 p.m. Event is open to all children from infants through 5 years of age. For more information, please visit www.photogenicbaby.com.

January 7

King Tut Exhibition and Cocktail hosted by Mr. & Mrs. J.W. Marriott Jr. at the Museum of Art, Ft. Lauderdale, from 6 to 9 p.m. Proceeds benefit CMN. Tickets: $100 per person. For more information, contact Maria Moldes at mmoldes@mchf.org or (786) 268-1832.

Holiday Toy Drives

During the holiday season, please consider hosting a toy drive to benefit the children at Miami Childrens. All toys should be new and unwrapped. Sorry, we cannot accept plush toys, balloons or candy. Toy donations may be dropped off at Miami Childrens Hospital Foundation, 3000 SW 62nd Avenue in Miami. For more information, please contact Alexis Viera at aviera@mchf.org or (786) 268-1827.
Seeing Joshs smile melts my heart. What better than to spread his smile to other kids?

Kids Korner

AMAZING MAGIC

TRICKS

Are you looking for a great way to impress your friends? Why not try magic tricks with just a few supplies and the wave of your hand, youll have your audience saying, Wow!
ere are two tricks that are perfect for beginners and are sure to be crowd-pleasers.
COIN TRICK EFFECT: The magician shows a
glass upside down and a coin on a colored sheet of paper. Then he or she puts a handkerchief over the glass and moves it to the side. When the magician removes the handkerchief, the coin has disappeared! SUPPLIES AND PREPARATION: Youll need a sheet of construction paper, a clear glass and a coin. First, trace the
glass onto a sheet of paper and cut out the circle. Then tape it to the glass (be sure to use the same color paper so itll blend in). SECRET: As youre moving the glass under the handkerchief be sure to place it directly over the coin. Because the sheet of paper covers the bottom of the glass, it will seem as though the coin has disappeared!
ICY TRICK EFFECT: The magician pours water
SUPPLIES AND PREPARATION: Youll
need a cup or glass you cant see through, a small sponge and ice cubes. Prepare the cup by putting the sponge in the bottom and drop a few ice cubes on top. SECRET: After you pour about an inch of water into the cup it will be soaked up by the sponge. Then when you blow into the cup, wave your hand over it and turn it overall that will fall out are the ice cubes!
into a cup, blows into the cup and then turns it over and ice cubes fall out.
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