The document is a newsletter from Warwick Business School Alumni Association from summer 2003. It provides updates on faculty, alumni, programs and events at WBS. It highlights that WBS rose to 34th in the FT global rankings and 4th in the UK in executive education. It also provides tributes to professors Peter Doyle and Tony Steele who recently passed away and notes their contributions to WBS.

1. warwick business school alumni association magazine: summer 03
the
money
issue

2. summer 2003
www.wbs.ac.uk/alumni/nexus.cfm
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Enterprising teaching at WBS
Shrewd investors
Hedging your bets
Business alchemy
news: WBS alumna Hedda Bird (DLMBA 1991–98)
featured in the Financial Times on 11 February.
Hedda is MD of 3C Training, which is pioneering a
14 How to pick a winner
training course delivered by telephone. The pros
16 Launching a business
18 Building bridges
and cons of the course were discussed in the FT’s
19 Career development INSIDE TRACK: A classroom by conference call.
22 Alumni adventurers For more information visit www.3Ctraining.co.uk
Geoff Percy, (EMBA 1985–89) Chief Executive of
Accantia, featured in the Daily Telegraph in early
February and the March issue of Trailblazer
magazine – Growing Business. According to the
Daily Telegraph, Geoff is the man who put the ‘can’
diary
in Accantia, which was formed as the result of a
management buy out of the consumer business
high praise from the Ambassador from Smith & Nephew Plc in June 2000. With
sales of £94m last year, the Birmingham-based
A feature on Warwick Business School entitled ‘The Wonder of
www.wbs.ac.uk/alumni/ Warwick’ in Ambassador in December, included a graduate’s home of the Simple and Lil-lets toiletries brands
perspective from Kevin Engelbretson (FMBA 2000–01) who now competes strongly with Proctor & Gamble in the
MBA 10 Year Reunion works as business product manager for telecoms company 02. premier league.
Saturday 20 September 2003
Radcliffe House reception
followed by dinner at the
Forest of Arden Hotel and
Country Club
Academic Update Seminar
honours for alumni
Congratulations to Lesley James (MAIR 1976–77)
Saturday 18 October 2003
who was awarded a CBE in the New Year’s
Radcliffe House
Topic: Images of Strategy
Honours list for services to the Partnership
Speakers: Fund Assessment Panel (DTI). Also to
Professors Karen Legge, Joanne Segars (MAIR 1986–87) Board Member,
Lesley James
John McGee, Robin Wensley, Occupational Pensions Regulatory Authority who
and David Wilson.
was awarded an OBE in the Queen’s Birthday
London Evening Seminar honours list for services to the Pensions Industry.
February 2004
WBS Annual Dinner
Thursday 13 May 2004
IOD, London Philippa Norman appointed Genentech VP
The appointment of Philippa Norman (MBA 1988–89, BSc Biochemistry
regional events 1982–85), to vice president, Global Supply Chain, was announced in March
by leading biotechnology company Genentech (NYSE: DNA) from their
Regional events are also held
South San Francisco HQ. In this role, she has responsibility for Genentech’s
overseas, in the Midlands, Oxford
supply chain management organisation.
and London.
Previously vice president of Knowledge Acquisition at Ingenuity Systems,
Midlands
Thursday 11 September 2003 Philippa spent nine years at SmithKline Beecham PLC in supply chain
Tuesday 18 November 2003 strategy development, manufacturing management and global logistics,
culminating as vice president and director of a network of 10 manufacturing
London facilities around the world. Early in her career, she worked in the UK at
Friday 3 October 2003
Eli Lilly & Co. and the Institute for Animal Health.
Tuesday 11 November 2003
Friday 5 December 2003
new look nexus – special 24 page edition: Your favourite alumni magazine has undergone
a design makeover and we are eager to hear what you think of the new look. Please email your comments to
Pam.barnes@wbs.ac.uk and we will include a selection in the next issue, due out in January 2004.
Designed by Parenthesis +44 (0)24 7622 9658

3. :
news update
Recognition in Brazil: WBS was the subject
of strong media coverage in Brazil in
June, with an article in Valor Economico,
the leading business daily paper,
describing WBS as ‘a dream place for
world class executives’. The article
highlighted the modernity of the
campus, its excellent quality of life and
how the university has risen fast in
various rankings to become a world class
centre of excellence. Don Antunes,
Dean's Fellow (Strategic Management)
was also interviewed on Brazil’s national
radio and the WBS Football Management
course featured in Brazil’s top business
magazine Economia.
Recruiting stars of the future:
WBS rises again in worldwide rankings Warwick's continuing commitment to
excellence is shown by the recruitment of
WBS has risen to 34th position in the influential Financial Times World MBA 12 new faculty who will be joining WBS
rankings, published in January, making it 8th in Europe, and 3rd in the UK, over coming months. We welcome:
splitting Cambridge and Oxford (2nd and 4th respectively). WBS has now risen Alberto Franco ORS, Philip Hancock
20 places over the past three years. and André Spicer IROB, Zoe Radnor
OM, Zulfiqar Shaf, Kostas Koufopoulos,
‘This is great news, for both staff and students at WBS. It is also great news for our
Silvia Rosetto, Giorgio Valente, Simuna
14,000 former students working around the world – a vindication for them that
Scarparo AFIN. Three new Professors:
they studied at one of the best business schools in the world’ said Dr Simon
Ruth Davies ORS, Richard Elliot and
Collinson, former Associate Dean for the Warwick MBA. Nigel Piercy MSM.
Further confirmation of WBS’s position as one of the world's top business schools They come from as far afield as the
came from The Financial Times Executive Education survey, published in May. University of Melbourne, Australia, and
The survey placed WBS 4th in the UK and 30th in the world, a rise on last year of the Institute d’Economic Industrielle,
one place and three places respectively. The comprehensive survey looks at a range Universite des Sciences Sociales,
of issues from course design and value for money to food and accommodation. Toulouse, bringing a depth and range of
experience to the already internationally
renowned Warwick faculty.
Top honour for WBS Professor
kicking off the new season Professor Sir George Bain was awarded
the honorary degree of LLD in the
June 2003 saw WBS launch the second year of its highly Summer Degree Ceremonies at
successful programme for Football Management. Warwick in July. George worked at
Developed in partnership with bodies from the WBS when it was the School of
footballing community, the qualification is designed to
Industrial and Business Studies. In 1970
complement existing coaching qualifications. The course
he joined Hugh Clegg at Warwick to
continues to receive media interest both here and abroad,
take up the post of Deputy Director of
Stuart Pearce
as the new cohort includes such well-known names as
the internationally-recognised
ex-England players Tony Adams and Stuart Pearce.
Industrial Relations Research Unit. In
1974 he took over as its Director and
served in that role until 1981.
solving a $40 billion riddle changing students He accepted the post of Chair of the
School in 1983. It was in this role that
A team at WBS in the Innovation, Knowledge & Ravi Monteiro and Daniel Jones are the first he transformed it into the leading
Organisational Networks (IKON) Research has been awarded WBS undergraduate students to go on the
international business school it is
a £500,000 grant by The Economic and Social Research exchange with Wharton School, University of
today, and changed the name to
Council and the Engineering and Physical Sciences Research Pennsylvania and will start their studies in
nexus: summer 2003
Warwick Business School. In 1989 he
Council to research ways in which knowledge transfer can September. Wharton, the top-ranked US
left WBS to become Head of London
be improved in the field of biomedical research. ‘No-one business school, contacted WBS in the
Business School. He was knighted for
knows the true value of the ‘lost’ research for the simple autumn to explore exchange possibilities and
services to higher education and the
reason that it never makes it to market,’ says Jacky Swan, is currently the only UK business school with
Low Pay Commission in 2001.
Professor of Organisational Behaviour at WBS. which they are working.
3

4. a message from the Dean of WBS
: across a range of undergraduate
and postgraduate courses.
This Spring the Warwick
community lost two valued
members: Professors Peter Doyle
and Tony Steele, and we pay
our tribute to them both below.
This autumn will see an almost
unprecedented influx to WBS of
first-rate new academic staff from
around the world. We are looking
forward to welcoming them to
the Warwick family and we
expect them to continue our
progress towards becoming the
I hope to meet many more of you
at the second Annual Dinner
which is planned for 13 May
2004 and will be hosted by
George Cox, Director General of
the Institute of Directors, in the
gracious Nash room of their
London headquarters.
We are very pleased to be able
to include here an article Tony best European business school. Warwick Business School’s
wrote for inclusion in Nexus on You will have the opportunity foundation is superlative research
how to increase the odds of to meet some of them at and teaching excellence and your
Warwick Business School has winning. This is complemented alumni events. work, as Warwick graduates,
long been known for its by an article about Professor This May I attended the first brings our reputation for quality
entrepreneurial spirit. This Stewart Hodges’ research into the Warwick Business School dinner, to over one hundred countries.
edition of Nexus is the ‘money’ options markets. There are also which was hosted by Lord Jeff I look forward to your continuing
issue with a series of articles on articles from WBS alumni who are Rooker (MA IR 1971–72), at the support.
entrepreneurship and finance. using the knowledge House of Lords. This distinctive
Since the new year, WBS has they gained at Warwick to venue launched what I hope will
launched the Enterprise Teaching develop their corporate strategy become a rich tradition as alumni
Group which will ensure that this as entrepreneurs or in the and students mixed with current
expertise is brought to students finance sector. and past WBS staff. Howard Thomas
tribute
For WBS, the Spring term was Chairman of WBS who was the Accounting and Finance
overshadowed by the sad deaths responsible for bringing Peter Group organised a gathering to
of two of the leading lights of the Doyle to WBS, through to fellow celebrate his life, following on
School. Peter Doyle and Tony marketing professionals, from the funeral. The event was
Steele both joined WBS as academics, past and present held at the University's Scarman
professors, both achieving this students and alumni of WBS, and House, next door to WBS, and
promotion at an unusually young Peter's family. Messages and included friends, family and
age, and tragically both lost long tributes were sent from as far colleagues from academia and
Peter Doyle
battles against cancer. This cruel afield as India, Greece, Japan, the professions.
disease took them within weeks New Zealand and North America. Tony and Peter were not only
of each other, at an age when A commemorative book on Peter's absolute experts in the
they still had much to give in life and career is currently being academic sense, they were both
their careers. compiled; two copies of this will lively and entertaining
Peter died on 30 March, and a be produced, one copy to be well-rounded individuals with a
tribute event was organised given to the Doyle family, one to great sense of humour. We will
jointly by the University and be kept at WBS. miss their commitment to WBS
WBS on 20 May, in the Ramphal Tony died on 21 April, having and their dedication and
Tony Steele
Theatre on campus. A wide fought his illness to the end, and enthusiasm for their own
:
spectrum of guests attended this insisting on leading the Critical subjects, for the wider world of
event, from top academics such Issues in Management third year business study and research,
as Professor Sir George Bain, core course for the Undergraduate and their wish to improve and
Vice-Chancellor of Queen’s Programme at WBS this academic extend the boundaries of
University, Belfast, and past year. His family and colleagues in knowledge and expertise.
For more information visit w www.wbs.ac.uk/news/features/doyle.cfm w www.wbs.ac.uk/news/features/steele.cfm

5. first for WBS
An historical event took place on Thursday
8 May, with the School’s first ever Annual
Dinner. As befitting a first, this premier
event was held at one of the most
prestigious venues in London, the House of
Lords. WBS alumnus Lord Jeff Rooker
(MAIR 1971–72) hosted a unique assembly
of over 120 invited guests, faculty, board
members, alumni, staff and current students.
british cabinet office
looks to warwick On arrival, Palace of Westminster guides took
guests on a tour behind the scenes,
concluding in the House of Commons. With
its outside terrace overlooking the Thames,
the Cholmondeley Room provided a superb
Professor David Wilson was invited by the House of Lords to teach Members of the setting for reminiscing over the excellent
House and senior civil servants, including Black Rod, about strategy implementation dinner, as guests were reunited with former
and effective organisation design. On Friday 28th March David led a three-hour lecturers, classmates, students and colleagues.
session with 30 Members and Civil Servants to help them identify where issues lie, To the chimes of Big Ben, Dean Howard
which are critical, and how developments will be made in the future. Thomas proposed a toast to the School and
This is part of a larger process led by the Cabinet Office, which is looking at how its successes, including the 5 star ranking
Parliament can be re-organised. They are particularly interested in how the and the excellence and popularity of our
House of Lords Committee Structure is organised, how information is conveyed programmes, with our MBA programme
into the House, and on what basis they make decisions. recently ranked above Oxford. Lord Rooker
‘The Cabinet Office looks to Warwick for business expertise and training responded with a witty speech recalling his
which is quite exciting,’ explains David. They will be seeking a partner days at Warwick in the early ‘70s, and the
business school to continue the process of improving decision-making and
somewhat unconventional route his political
this may well turn out to be Warwick Business School.
career has taken since.
David Wilson is Professor of Strategic Management at Warwick Business
School. He has served as an Advisor to the Cabinet Office and various
Alumnus Mike Callanan confirmed: ‘The
government departments as well as to many private sector companies. venue, organisation, food and atmosphere
His research interests are: strategic decision making and performance; were all superb. As a result we had a
comparative studies of public/private organisations; strategic change and pleasurable and memorable evening. It will
politics in organisations; links between leadership, strategy and be a hard act to follow.’ This event proved so
performance and strategy implementation. popular that tickets sold out within hours.
He was invited to lead the session at the House of Lords with George Cox, the
Next year’s Annual Dinner will be held in
head of the Institute of Directors. Black Rod was part of the session because,
the beautiful Nash room at the Institute of
as well as his famous ceremonial role, he oversees the committee structure in
nexus: summer 2003
Directors in London.
the House of Lords. ‘The day had proved a great success,’ concluded David,
‘and the House of Lords fully intends to follow up this initiative.’
5

6. keynote lecture
An invited audience of faculty, alumni and the simulation demonstrated that a range
doctoral students attended a keynote of structures could be equally effective.’
lecture on organisational design by
These findings resonate with those found
Professor Nicolaj Siggelkow of Wharton
by David and his colleagues who studied
School in May.
the relationships between implementation
Nicolaj Siggelkow and David Wilson
According to David Wilson, Professor of characteristics of strategic decisions and
Strategic Management: ‘This lecture the effectiveness (or otherwise) of the
showed how some of the nostrums about outcome. They found that organisational
the appropriateness of organisational structure did not feature as a key factor in
structure can be questioned. Using a these processes. Successful decisions could
simulation approach, Nicolaj demonstrated be made in highly centralised
that centralised, de-centralised and organisations which were facing turbulent
network (liaison) could be equally effective environments and vice versa. Indeed,
given certain contextual parameters.’ structure itself only seems to matter when
it impedes decision processes. Unless
‘In particular, appropriate forms of German-born Nicolaj has been in the USA
structure gets in the way, then it seems
structure - those which led to greater speed since 1990 and met his collaborator Jan
there are no simple ideal types as proposed
of action and decision making – were Rivkin when he did his PhD at Harvard.
by earlier contingency models such as
contingent upon both the characteristics of Commenting briefly on his visit, Nicolaj
those by Burns and Stalker.
the problem (simple versus complex) and said: ‘I have known Andrew for a couple of
the environment facing managers (stable Professor Siggelkow was invited to WBS years and was delighted to accept his
versus turbulent). Only in extreme cases of by Andrew Pettigrew, WBS Dean Research. invitation to Warwick. I am very impressed
stability or turbulence were Burns and Andrew commented, ‘His work with the new building and what Howard
Stalker's nostrums that centralised exemplifies the use of a variety of research has been telling me about studying the
structures are appropriate in stable methods to beam in on a consistent MBA by different disciplines and the
conditions and decentralised structures research theme’ how and why strategic ability to switch between, which I feel may
appropriate in turbulent conditions choices and changes in firms are linkable to be unique, particularly the distance
supported. In all other cases, firm performance. learning MBA with local tutors.’
book now! Forthcoming Warwick Open Programmes
Short Courses Accredited Open Programmes
October 2003 Designed for practising managers who wish to refine and formalise their
2 Business & Responsibility: The Global Compact management knowledge and skills, these practical courses are delivered
tbc Entrepreneurship as 8 x 3-day modules over 18 months and lead to a University of
Warwick Diploma.
November 2003
3 Managing Knowledge Warwick Diploma in Applied Management
17–18 Images of Strategy: The Impact on the Firm Next course starts 8 October 2003
January 2004 Warwick Diploma in Service Leadership
13–14 Marketing: Building and Managing Strong Brands Next course starts 24 November 2003
27 Managing Critical B2B Relationships
For full programme information and booking details, contact Warwick Business School Executive Programme
on tel 02476 524395 e-mail execqueries@wbs.ac.uk or visit our website at www.wbs.ac.uk/corporate

7. enterprising teaching at WBS Can entrepreneurship or entrepreneurial
behaviour be taught or is it innate? ‘I am
probably quite unorthodox,’ says Nigel
Sykes. ‘People need to find out who they are
and how they fit with other capabilities.
I focus less on the notion of the
entrepreneur and more on the
entrepreneurial team, the importance of
developing our talents, and application of
the skills learned on other courses.
‘The course becomes
entrepreneurship in action.
Everyone has a talent and
can make a valuable
Nigel Sykes
contribution so that is the
teaching approach I take’
In Spring of 2003 Warwick Business School own businesses directly after their course,
launched the Enterprise Teaching Group. but from the pattern of the alumni
Where is the money?
This formalises the change for the long- database it is clear that most Warwick Especially in the current climate, finding
standing research group, the Centre for MBAs will be self-employed at some point funding for a new venture can be tough.
Small and Medium Sized Enterprises, in their careers. There are also a number of On the very popular new course, Dr
which now shares its expertise with current students on the MBA course each year who Andrew Burke seeks to provide students
WBS students through teaching. are already entrepreneurs. For example, with an understanding of the venture
Sara Shailer who had started her project capital market from different perspectives:
A whole series of entrepreneurship courses that of the investor in a venture capital
management company, Accompli, in 1995
are being taught to Warwick undergraduate fund, the entrepreneur, and others who
graduated with the Warwick MBA this July.
students with nearly 700 students taking work in the sector. He looks at what VC’s
‘The modular programme of study really
courses over the coming year. These range do and how they seek to add value, he
worked well with running a business at the
from, ‘Understanding enterprise’ taught by examines legal aspects and the
same time,’ she commented.
Dr Francis Greene, through to ‘Critical management of a VC fund. He also teaches
issues in management’ taught by Professor the financial economics which underlie
David Storey. Innovatively, several courses The mythical entrepreneur new venture finance.
are aimed at Warwick undergraduates who Nigel Sykes and Dr Andrew Burke
are taking science or engineering degrees teach Warwick MBAs a course called
but who will undoubtedly need business ‘ENTREPRENEURSHIP AND NEW VENTURE
skills in the future. CREATION’. The course has two major
themes: entrepreneurial behaviour and the
All variants of the Warwick MBA also take
entrepreneurial process. Students learn what Headed by David Storey, the Enterprise
courses taught by the Enterprise Group.
is involved in setting up a business, the Teaching Group comprises Stephen
There have always been a subset of
problems of growing a business and the Batstone, Andrew Burke, Francis Greene,
Warwick MBAs who go on to start their
preparations and role of the business plan. and Nigel Sykes
WBS hosts international launch
The launch of the new International Journal departments including Harvard, MIT, successful entrepreneurship are skills and
of Entrepreneurship Education attracted Berkeley, UCLA, Warwick, Cambridge and perspectives that can largely be taught.
international media attention at WBS and INSEAD attended the launch, where These are the skills that the Journal will be
nexus: summer 2003
the Mercia Institute of Enterprise. Editorial Dr Andrew Burke (WBS and UCLA) one of promoting.’ The IJEE is published by Senate
board members from the world's leading the Journal's founding editors, stated, ‘The Hall Academic Publishing. Details are
business schools and economics constant features that are associated with available at www.sentatehall.com
7

8. David Tilles and Clive Gillmore

9. ‘David and I both think our
Management Sciences degrees from
Warwick gave us many different skills
as well as the perspective to see what
interlinks and forms a whole’
D avid Tilles (BSc, Man. Sciences, 1971–74)
met Clive Gillmore (BSc, Man. Sciences,
1979–82) for the first time when he
interviewed him for a job at the British
merchant bank, Hill Samuel. Now they run
an extremely successful London based investment
management firm, Delaware International Advisers, as
Managing Director and Deputy Managing Director
respectively. A winner of the 2001 Queen's Award for
domestic client base and US mutual funds capability.
They also gave us equity ownership in the business.
We were bringing them our experience of international
markets at a time most American pension funds
invested very parochially.’
‘David saw that there was huge potential growth in this
segment of the global financial services industry. At that
time the average US pension fund might only have an
international allocation of 2%-4% and we expected that
international trade, their company mainly invests on
proportion to grow to over 15%,’ Clive explains.
behalf of North American based pension funds,
‘There was a lot of investment theory at the time on the
endowments and foundation clients like Pfizer, State of
benefit of diversification and when you combine
New York and Stanford University in stock markets
domestic US and foreign investments together you can
throughout the world. They have seen their share of
lower total portfolio volatility and have the potential to
this huge and competitive US market double over the
increase return’.
last five years, and in spite of the volatility in the
international investments, they have stayed focused on
‘The first year was hard work,’ remembers David.
providing their clients with above index returns for all
their products at low levels of risk.
‘It took three years to get our first $1 billion under
‘David was the entrepreneurial catalyst,’ Clive explains.
our management for fifteen or so clients’
In 1990 David moved with his entire team of nine In the following years many US, Canadian, Japanese,
international investment professionals from Hill Samuel Australian and South African pension funds embraced
to set up a new company. ‘It was less of a risk for the rest international investment and Delaware. David and
of us because we were a bit younger, but we all agreed to Clive's new company, Delaware International Advisers,
no change in our salaries and no bonuses for two years,’ was able to grow from the initial team of ten in 1990 to
remembers Clive, which even as one of the youngest in just under 100 people today. The assets under their
the team, meant a substantial reduction in income after management have grown from $20 million for one
nearly ten years successful work in the City. client to $16,000 million for over 70 large institutional
clients. They have been one of the fastest growing
‘We knew our future as a team lay elsewhere,’
companies in the City with over 90% of their annual
says David. ‘We had a few choices but Delaware
sales coming from overseas customers.
Investments, a US-based asset management company,
nexus: summer 2003
offered to fund our whole team for two to three years ‘It was David's entrepreneurial vision to be in the right
for no return and agreed to give us access to their place at the right time, but he also brought together a
9

10. shrewd investors continued:
multi-skilled team. For example, I can lead the market's boom and bust of the ‘I see two challenges in our future and you
aspects of our investment side but also past few years, the long-standing have to have the vision to know you are well
involve myself in winning new business. recession in Asia, and keep adding to positioned no matter what happens,’ says
David and I both think our Management their client base? Clive. ‘The financial services industry is
Sciences degrees from Warwick gave us going to consolidate in the medium term
‘We take a long view on fundamental
many different skills as well as the and in the longer term we have the
value. We are consistent and systematic in
perspective to see what interlinks and influence of demographics. People will live
our investment approach over time, and
forms a whole,’ says Clive. longer and they will need to give greater
this has proved itself,’ says David. ‘Our
emphasis to income. Our income based
Their team has remained remarkably average international portfolio has only
approach to equity evaluation fits this
steady, with six out of nine of the original fifty companies, and with 24 equity
scenario very well as does our capability in
company founders still with Delaware. analysts this means that the team can
managing Global Fixed Income instruments.
Over time they have recruited 35 focus on knowing fewer companies, in
We believe our firm is well placed in both
investment professionals and only ever greater depth over a longer term
the medium and the long term.’
lost five. They credit this stability, sense of evaluation period. This marks us out
team spirit and loyalty with much of their relative to competitors who tend to David and Clive obviously share a long
success in achieving good investment try to cover too many companies and successful history together and they
results and retaining clients. By keeping superficially and trade the holdings in both credit their Warwick degrees with
the company fairly compact, based in a their portfolios frequently.’ starting them off. David relates an
single location, always on one floor with anecdote of their first meeting when he
‘Investment fund management is about
open plan offices and the management in interviewed Clive for a job at Hill Samuel.
people and methodology,’ says Clive.
accessible glass fronted offices, everyone ‘I asked him about his degree from
‘For Equity markets we use a long term
feels a strong sense of esprit de corps. Warwick. I inquired where the University
dividend discount model which is based
Probably most importantly, every member of Warwick was. Then why isn't it called
on profit flows. We focus on return and
of the team shares in the same incentive University of Coventry? As he dealt with
our approach is income based. This is a
plan. Thirty percent of the company's that, I asked him about the 'sciences' part
better long term map.’ Considering that
profits are put in an incentive pool and of his Management Sciences degree and
Delaware has retained both its clients
shared out amongst all of the staff so that questioned could management really be
and staff over the internet boom when
employees feel motivated to see the scientific? In the end, of course, I told him
offering low-risk and non-speculative
company succeed. I had the same degree from the same
returns was extremely unfashionable,
University, and despite that hired him!’
So how can they guarantee a reasonable they must know what works.
return in the current climate, ride out
Warwick Business School’s Master’s degree companies including: JP Morgan, Deutsche
in Financial Mathematics (MSFM) takes Bank, Foreign and Colonial, Baring Asset
some of the cleverest mathematical brains, Management, and London Clearing
teaches and trains them for one year, and House.’
when they graduate they are snapped up
The companies work with Stewart to set
on the employment market by financial
the projects, and then he manages the
institutions. Each summer, MSFM students
students to ensure they deliver a useful
are available for projects with companies.
report back. Assignments run from the
‘Our students do exciting projects end of June to mid-September and
for companies,’ explains Professor companies do not incur any costs unless
Stewart Hodges who is the Academic they require students to travel.
Director of the programme. ‘The projects
are on topics like risk measurement and
management, derivatives valuation, If you think you may be able to offer an
investment management, financial MSFM student project, please contact
Financiers of tomorrow, current students Jianping Feng and Miao engineering, and computational work. Professor Stewart Hodges on
Chen are doing their MSc projects with London Clearing House This year projects will be completed for stewart.hodges@wbs.ac.uk

11. hedging your bets by Emily Fay
If you were to have bet in the Martell Grand Professor Stewart Hodges, at Warwick ‘For the put options in both markets, one and
National horse race on a 1-10 horse, a horse Business School’s Financial Options Research three month horizons, we found there was
the bookies think has a 90% chance of Centre (FORC), and a team of international evidence that investors are usually overpaying
winning, then for every pound you bet you collaborators have recently completed some for all put options as an expected cost of
would get £1.13 back if your bet paid off. research to examine if the above premise insurance,’ continues Stewart, ‘the patterns of
On the other hand, if you bet on a real translates from horse race betting to average return map onto the betting average
outsider, with a 100-1 chance, you could options markets. return.’
win a fantastic return.
‘We investigated this for the S&P 500 futures, This is primarily of interest to institutional
What about the expected returns on these the FTSE 100 futures, and the British investors like Goldman Sachs and Deutsche
bets? We know that on average the bookies Pound/US dollar futures for the 17 years Bank where those who use options for
win, but they expect to win more on some from 1985 through 2002,’ explains Stewart. trading or hedging will be able to make use of
kinds of bets than on others. The averages ‘We found that there was a definite this extra information to guide them.
show that the expected return to the punter relationship between calls on the FTSE 100
is worst on outsiders (which really deserve with three months to expiration. Moreover,
even longer odds) and best on the favourites there are slight profits from deep-in-the-
(which should have slightly shorter ones). money calls on the S&P futures and
increasingly greater losses as the call options Further reading: ‘The favourite / long-shot
For bets on strong favourites the punter can
are out-of-the-money.’ They did not find the bias in S&P 500 and FTSE 100 Index futures
nexus: summer 2003
expect a small positive return, whereas for all
bias on the FTSE 100 futures but a significant options: the return to bets and the cost of
other bets the expected return is negative.
long-shot bias does exist for the deepest insurance’ FORC preprint 2003/125 available
out-of-the money options. from stewart.hodges@wbs.ac.uk
11

12. hot off the press
Members of the WBS IKON group have
released a new book that draws together
some of the major strands of the unit’s
entente cordiale
research. Managing Knowledge Work by
Sue Newell, Maxine Robertson, Harry
Scarbrough & Jacky Swan. Published by
Palgrave Press, Managing Knowledge Work
is aimed at academics, students and
practitioners who are involved in
Tim Soar (EMBA In 1997, Vanessa studying, teaching, practising and
1991–97) has lived Couchman (MBA managing knowledge work, the book
in Japan, Argentina, 1989–90) fulfilled provides a coherent and integrated
Venezuela, France her ambitions of account of the critical issues involved.
and Spain. A native living and working
English speaker, in France by setting
he also speaks up as a freelance Max Moullin (MSc MSOR 1974–75) has
fluent Spanish consultant and recently written Delivering Excellence in
and French business writer Health and Social Care published by
Open University Press. According to the
The former Commercial Director and ‘Today, I suspect that the MBA is
foreword ‘Its review of the different
General Manager of MG Rover in often a springboard for new business
approaches to measuring quality and to
Argentina, recently moved with his start-ups. When I took mine it was
promoting excellence in health and
family to Barcelona, Spain. Last year usually a stepping-stone from one
social care is comprehensive and
Tim started his own executive interim corporate career to another.
thorough.’ Max is a senior lecturer in
management consultancy, Proyectos No exception, I went from the
TQM and Organisational Excellence at
Limited providing specific publishing industry via the MBA
Sheffield Hallam University. Further
management and project resource to to the Audit Commission.
details can be obtained from
companies throughout Europe.
I did not have the courage to go www.amazon.co.uk
His latest assignment teamed him it alone straight from Warwick,
up with MG Rover again, this time and the corporate experience
as Interim Sales Director of MG Rover I gained afterwards was essential,’ Disabled parents are the subject of a
España in Madrid for a 5 month explains Vanessa. timely new book by WBS alumnus
period to achieve a number of Richard Olsen (MA Sociology of Labour
After leaving the Audit Commission,
specific objectives. 1987–1989; PhD Industrial Relations,
she started with a small client base.
1989–1993). The book, Parenting and
‘My experience has been gained in A local contact was invaluable, guiding
Disability: Disabled Parents' experiences of
dynamic international environments, her through the systems and language.
Raising Children, published by the Policy
where it is paramount to define key According to Vanessa, ‘Once set up,
Press, is the product of work carried out
project goals with multi-cultural modern communications technology
at the Nuffield Community Care Studies
stakeholders and shareholders, and made it possible to work remotely and
Unit, University of Leicester.
then achieve them,’ says Tim. Over much of my work is done via email
www.prw.le.ac.uk/nccsu/
the last 18 years he has worked mainly and Internet. Having the contacts to
within the automotive industry on start with made all the difference.’
major business development projects,
Now she has a thriving client base, Gerardo Patriotta obtained his PhD in
both commercial and manufacturing.
mainly in the public sector. The main Industrial and Business Studies at WBS
‘I enjoy the challenges of working in advantage of working as I do is the (1995–99). Now Associate Professor of
different cultures and languages lifestyle. I do come to England on a Strategic Management at the Rotterdam
enormously and really believe that we monthly basis to see clients, carry out School of Management, Erasmus
have still only scratched the surface in projects and market myself. Working University, Gerardo reports the release of
terms of inter-EU collaboration. The as I do does not seem to have been a his first book with Oxford University
EMBA gave me some fundamentals of barrier to securing assignments.’ Press. Organizational Knowledge in the
thinking that are applicable and valid Making – How Firms Create, Use, and
Setting up your own business is never
in my day-to-day work wherever I am Institutionalize Knowledge. This book aims
simple but Vanessa would seem to
in the world. Of great value to me to fill the gap between theory, method,
have achieved the best of both worlds.
were the experiences and different and practice by developing a
approaches we shared amongst the phenomenological approach to the study
diverse participants during the EMBA.’ of knowing in the context of organizing.
www.oup.com

13. business alchemy:
One of the main accusations hurled at
turning theory into practice
by Robert Craven
seen as a good thing…unless the initiative
Business Schools is that of irrelevance to the can demonstrate value for money. In
reality of the business ‘coalface’. No matter essence he has set the agenda for the
how much the academic defends the need provision of business support so that it will
for academic rigour, research excellence, the ‘do what it says on the tin’.
need to deliver a set number of academic
And how does David’s body of work sit in
journal articles per year or the fact that their
the real world? Has he made a difference?
department has to be run like a business…
I think that the answer is ‘Yes’.
the fact is that these accusations of ivory
tower behaviour will emerge. In the seminar room or with clients, the
excellent fast-growth businesses really are
Professor David Storey from the Business
obsessed with David’s triad: strategy,
School’s CSME (Centre for Small and
As a business speaker, I pride myself on marketing and teams; the issue here is to
Medium-sized Enterprises) has achieved a
using plain English, yet my work is communicate this with the aspiring
reputation as the academic in the field of
underpinned with David’s work. business. In government small business
SME research. His accolades (in the academic
policy and in the Business Link movement,
world) are numerous: So my question is: The whole small business industry was
David’s challenges to the effectiveness of
does David’s work help businesses? shaken by David’s challenge to the old view
business support have changed the way
that investing in start-ups is a good thing –
To declare my interest, I am an that success has been measured.
David said and proved that to get the
entrepreneur who has run restaurants,
biggest bang for your buck, governments David and I set up what has become known
sound recording studios and training
should invest in the successful high growth as the biggest and the best training
companies. Currently, I run The Directors’
businesses which are more likely to produce programme for UK bankers along with
Centre, a management consultancy that
more jobs than the start-ups. This was the world-class training for business advisers
works with fast-growing businesses. I am
raison d’etre for the creation of the and their businesses. These programmes
author of two best-selling business books.
Business Link movement in 1991. took the theory and fed it to the coalface –
In a former life, I worked at the CSME,
theory and practice worked together. And
acting as Programme Director for several It was David who revealed that high
the results were incontrovertible: the bank
programmes that worked exclusively with growth businesses tend to be more focused
saw market share and profits increase,
entrepreneurs or their bankers or their on marketing than the run-of-the-mill
business advisers saw their clients’ profits
advisers. My interest has always been in average business. He also noted how the
increase and our entrepreneurs saw their
delivering value for money ‘interventions’ really good businesses tend to focus on the
turnover and profits increase. And these
to clients, irrespective of the source or triad of strategy, marketing, and teams.
successes become the stamping ground to
academic rigour of the offerings. All I want
David likened the skills of the investigate what made them successful,
is tools that work to give to my clients.
entrepreneur to those of a whitewater which feeds more research and more
So, the question for me, as an entrepreneur, rafter – obsessed with getting into the training and consultancy.
has to be: ‘Does David Storey’s work add right current (=marketing!), but aware that
Robert Craven is Author of Kick-Start Your
value to the clients I work with?’ and the the outside environment can also destroy
Business and Customer Is King (Foreword
answer is ‘Yes’. you (=strategy).
by Sir Richard Branson). The Financial Times
David’s book ‘Understanding The Small Essentially, David challenged how has recently described him as ‘the
Business Sector’, and his work with ‘The government had dealt with small business. entrepreneurship guru’. He runs the
Ten Percenters’ with Deloitte and Touche, As a result of his work, it is no longer management consultancy for growing
both focus on the needs and the possible to assume that ‘helping small businesses, The Directors’ Centre.
environment in which businesses live. businesses’ or ‘helping start-ups’ can be E rc@thedc.co.uk w www.thedc.co.uk
In February 2003, Adrian Finn, a part C distance learning According to Adrian, ‘To succeed, you need a clear strategy
enterprising bid MBA student, used his entrepreneurial skills, his savings
and re-mortgaged his home to set up his own consultancy,
based on some thorough market research. Cash flow is
critical, plus lots of self-belief. Making use of all possible
EpurchasingPlus. contacts and opportunities is a must in securing those first
‘I had always intended to start my own business eventually few contracts. We are currently dealing with about 30-40
but I was never totally clear as to what form this would medium to large organisations, with turnovers from £22m
take. Doing the MBA provided the clarification and the to £280m. They are using e-auctions on anything from
energy and telecoms through to office paper and raw
nexus: summer 2003
necessary pointers I needed to consider,’ explains Adrian.
materials, with savings averaging 16%.’
His company provides ePurchasing solutions, particularly
e-auctions and collaborative solutions, to medium to large With an expected turnover for the first year of £250k
sized enterprises, targeting organisations wishing to generate Adrian looks set to continue bidding in a strong market.
rapid returns from their respective ePurchasing investments. For more information visit www.epurchasingplus.co.uk
13

14. how to pick
a strategy to tip the odds in your favour
by Professor Tony Steele
Although we live in an uncertain world rich with unknown opportunities, this does not mean we are victims
of chance. There are strategies that can tip the odds in our favour. Here is a rule that guarantees to improve
your chances of making a good choice…
one loser following another. A one in three chance
step one: followed by another one in three chance. This is bad luck,
but will only occur one in nine times. A rule that reduces a
Carefully assess the first opportunity. Use this first opportunity below average choice from one in three times down to one
to learn as much as you can about what is on offer in nine seems useful.
step two: Two thirds of the time above average
Reject this first opportunity Having reduced your chances of making a below average
choice, the rule must have improved your chances of
step three: making an above average choice. The chances of picking a
winner can be worked out similarly. If the first option was
Accept the next opportunity that is as least as good as the
above average, then the rule says you will not settle for
first opportunity that you turned down anything less. You will pick a winner for sure. You may
have to wait for the next prospect that is as least as good as
In general, the choices you have to make, once you have the one you turned down.
unwrapped them, walked around and mulled them over, The chance that the first option is a winner is one in three,
can be either a top choice – a winner; a grade two – an also but there are more chances of ending up with a winner. If
ran; or a grade three – a loser. the first option you turned down was an also ran or a loser
It does not matter how you label them, or the criteria that then the rule states that you wait for something equal or
you apply to judge the choices as they reveal themselves, better. You wait for the next option and only choose it if it
they can be classed as average, below average or above is an also ran or a winner. The chance it is a winner is 1 in
average. Only with experience will you eventually learn 2. So another way of picking a winner is to first pick an
what to look for. We have to learn on the job. If there are average followed by a winner, or a below average followed
three grades, then in the face of your ignorance there is a by a winner. The chance of picking a winner has risen.
one in three chance that you will end up with a below
average choice. odds without odds using
choice the rule the rule
A third of the time below average
Using the rule you can change things in your favour. To above average ‘a winner’ 1 in 3 6 in 9
end up with a below average choice you need to go average ‘an also ran’ 1 in 3 2 in 9
through three steps. When the opportunity appears, you
study it closely. You do not know how it compares to below average ‘a loser’ 1 in 3 1 in 9
others that may arise. You have to decide with limited
information. You do not realise it is a below average choice.
In any event, the rule is to reject it. The rule has doubled the odds of picking a winner, from
one third of the time to two thirds of the time.
The next opportunity arises. If it is a below average option,
then since it is as good as the choice you have just turned Life can be big consequences following from small actions.
down, you will accept it. To end up with a below average Randomness, unpredictability, chaos are also opportunities.
choice using the rule, you need to have the misfortune of We can tip the odds in our favour.

15. alumni out and about
With events in Hong Kong, Germany, awarded the WGAHK scholarship, the very
Greece and Kenya, as well as the London first Warwick scholarship established by a
Evening Seminar, the Warwick Debate, local alumni association outside the UK.
the first ever WBS Annual Dinner, One of the after dinner speakers was Sue
reunions and the Summer Ball, Beech, Assistant Programme Manager of
the spring and summer terms have the MBA by Distance Learning programme
been action-packed. at WBS.
alumni event in athens: Dimitris Kadis
Hong Kong Germany Maria Chryssoulaki (left) & Tina Iordanidou (right)
WBS alumna Yvonne Leung (BSc ManSci The second get-together of WBS Alumni
1984–87) was elected President of Warwick in Munich was held in March, organised
Graduates Association (Hong Kong) at their by Christian Hoefter (FMBA 01-02). Greece
annual dinner in January. Johnny Li He says: ‘The get-together was great fun Gatherings in Athens were well attended
(DLMBA 1987–92) remains Vice Chairman. and everyone thoroughly enjoyed the in April and June, organised by Maria
WBS Undergraduate Danny Fung has been evening. We met old friends and revived Chryssoulaki (MBA 1997–98) and
the good spirit of our study.’ Tina Iordanidou (MBA 1999–00). In June,
WBS Professor John McGee’s topic was
Kenya ‘New Strategies for a New Economy’ at
WBS Alumni met in the Nairobi Safari Club the Athenaeum Intercontinental Athens.
Hotel on Sunday 23 March. Committee The presentation was followed by dinner
members of the Warwick Alumni-Kenya at the poolside. The evening proved an
Chapter came along to talk about social excellent opportunity to meet prospective
events and community activities. The event Warwick students, catch-up with fellow
was hosted by Ann Jackson, Marketing and Warwick alumni and participate in a
International Relations Officer at WBS. topical presentation.
The WGAHK annual dinner See page 23 for more event reviews.
warwick business school alumni association magazine: summer 03
New look for Nexus
the
We are constantly looking at ways to develop
money
and improve communications to our Alumni, issue
particularly with our flagship magazine
Nexus. Over the past six months, we have
undertaken a comprehensive design review
of the magazine, with the involvement and
support of members of the WBS Alumni
Board, faculty and staff at WBS. The quality of
design concepts submitted was extremely
high and we are pleased to announce that
Parenthesis, a design company based locally,
conceived the winning design for this special
24-page issue.
Due out in January 2004, the Winter issue
will focus on Marketing, with articles from
top academics and successful marketeers.
nexus: summer 2003
The Alumni Team (left to right) Caroline Hughes, Emily Fay, Pam Barnes, Nicola Price, Sue Cresswell
As always, we welcome your input, so please
We welcome Nicola Price and Caroline Hughes to the Alumni team. Nicola provides essential organisational skills and administration
email Pam.barnes@wbs.ac.uk with articles support , while Caroline’s role will be consolidating the wonderful alumni support we receive from our contacts around the world,
relevant to the marketing sector. to organise global business networks and special interest groups.
15

16. launching a business in a
recess10n steps to
success
Rupert Howell started his first
business, the ad agency HHCL,
in 1987 three weeks before
Black Monday and sold it in
1997 for £24 million