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IN THIS ISSUE: A FAMILY AFFAIR//GETTING TO KNOW YOU//HAPPY RETIREMENT
‘Family firms have lower insolvency rates; they are more profitable and have a higher percentage of female directors.’ A Family Affair (see pages 8–11)
Alumni Magazine for Durham University Business School
Spring 2013 Issue 23
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CONTENTS IN THIS ISSUE‌ Page 6
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faculty under one roof and will dramatically improve the student’s facilities as well as create significantly more flexible space for students’ individual and group study, as well as hospitality. You can see from the work in progress picture that the redevelopment is coming along very nicely indeed.
You may have seen our announcement last autumn that, following an extensive rebranding exercise, the School has been renamed Durham University Business School. The review, which consulted with many of the School’s internal and external stakeholders, sought to better align us with the heritage and prestige of our parent organisation, Durham University. 2013 will be a momentous year in the history of the Business School, most notably because by autumn we will be back in our newly extended and renovated building at Mill Hill Lane. This will bring together the majority of the School’s
By the start of the next academic year we aim to have increased our faculty number to over 130, representing considerable growth over the past ten years. One of the most recent additions to the School is the new Professor of Leadership, Robert Lord. Robert joins us from the University of Akron where he held the position of Distinguished Professor of Psychology for 38 years. Another new faculty member is Dr Emmanuel Adegbite, Lecturer in Accounting who is the feature of our regular ‘Introducing’ piece on page 25. I wish them both a warm welcome to Durham. This year also marks the end of an extensive exercise to co-ordinate the School’s research centres. With the outcome of the Research Excellence Framework due in 2014, research, and its impact, continues to be high on the School’s agenda. For that reason we have taken this opportunity to share some of our faculty’s recent work: Dr Louise
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Scholes recently joined Durham and has been looking at the retail casualties of some of the UK’s best known brands and how research has suggested that familyowned businesses may have had better survival rates during what has been the biggest recession in post-war Britain (pages 8–11). Another relatively new member of staff is Dr Markku Jokisaari. Our article ‘Getting to know you’ looks at Dr Jokisaari’s research on the importance of social relations for new employees and how interaction between newcomers and more experienced members of an organisation can sometimes mean the difference between success and failure for new recruits (pages 14–15). And finally, Professor Kevin Dowd discusses the confidence in defined contribution pension schemes and its effects on future generations’ retirement plans (pages 20–21). We are entering a very exciting, yet challenging, time for the School. I welcome your contributions and comments and invite you to put forward any suggestions you may have as to how we might work together to further enhance the School’s future.
Professor Rob Dixon, Dean
SCHOLARSHIP AWARD
OBE FOR ALUMNUS
Congratulations to Jon Kilmartin, the winner of the Durham Executive MBA Scholarship Competition. The competition provided a full-fee scholarship for the School’s Executive MBA programme, and Jon, who is based in London and currently working for global sports media, management and entertainment firm IMG, began his studies in January. To learn more about the programme visit: www.durham.ac.uk/business/degrees/ mba/pt
MBA alumnus Moses Anibaba (2001) has been awarded an OBE in the latest UK New Year’s Honours list. Moses, who is Director, British Council in Ghana, received the award in recognition of his services to UK cultural interests in West Africa.
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SUCCESS FOR CGLEE LANDMARK LEADERSHIP PROGRAMME An innovative leadership programme for professional women in Saudi Arabia delivered by the School’s Centre for Global Learning and Executive Education (CGLEE) was the first of its kind. Run in collaboration with the British Council its aim is to enhance the leadership skills, knowledge and attitudes of women in senior positions. The programme, which has been heavily oversubscribed, has been received with great enthusiasm and another is planned for later this year. An online network has been set up for the participants to share experiences and on-going learning.
OFFICIAL OPENING OF THE PALATINE CENTRE Durham University’s new Palatine Centre was formally opened in October last year by Nobel Prize winning scientist and President of the Royal Society, Sir Paul Nurse.
Valerie Amos, Under-Secretary-General for Humanitarian Affairs and Emergency Relief Coordinator at the United Nations Office for the Coordination of Humanitarian Affairs (honorary Doctor of Civil Law); Ken West MBE, the pioneer of natural burials (honorary Master of Arts); musician Graham Johnson OBE (honorary Doctor of Music), and Professor Huw Beynon, a distinguished industrial sociologist (honorary Doctor of Letters).
Congratulations go to Dr Michael Guo who successfully made it to the long list for the EIU Business Professor of the Year. The long list comprised ten professors who had been nominated and voted for by their students and alumni. The competition attracted 222 nominations from 31 universities worldwide and over 30,000 votes were received. Four shortlisted candidates will now compete in a live ‘teach-off’ for the $100,000 prize.
ALUMNI – UPDATE Welcome to the first edition of DUBS Alumni News of 2013, the first edition since the School changed its name from Durham Business School to Durham University Business School. Those of you who graduated prior to 1999 will have known the School in the days when it was originally called Durham University Business School and will be familiar with the ‘DUBS’ acronym. We believe that aligning ourselves with the University in this way provides a great opportunity to strengthen our brand globally.
We are now approaching the final stretch of our time at Ushaw College, and whilst we have very much enjoyed this impressive historic site, we are looking forward to retuning to Mill Hill Lane where we will have access to the first class teaching facilities that we have been telling you about for so long. You may be interested to visit the School’s website to view the on-site time lapse video footage to see how the redevelopment is progressing: www.durham.ac.uk/business
THE LINDISFARNE GOSPELS COME TO DURHAM For three months this summer (July to September), one of the world’s most precious books, the Lindisfarne Gospels, will be on show in an exhibition at Durham University’s Palace Green Library. The exhibition will provide a compelling new contemporary interpretation of this unique book, and an extensive programme of events including art and music, workshops and conferences, pilgrimages and retreats, exhibitions and performances will be staged.
The contractors tell us that progress is on schedule and we should be re-occupying the building at the end of the summer, ready for the fresh cohort of students starting the new academic year. When the School reopens, donors and supporters of our ‘Take Your Seat’ campaign will be able to proudly view their plaques in one of the brand new lecture theatres. On page 12 you can read messages from some of the contributors to the campaign and hear why they wanted to be remembered in this way.
For the latest news and updates about the exhibition, visit www.lindisfarnegospels.com
HONORARY DEGREES AT WINTER GRADUATION The University honoured four successful national and international figures in equal opportunities and human rights, sociology, music and natural burials at its Winter Congregation celebrations in January. Durham’s Vice-Chancellor, Professor Chris Higgins, presented honorary degrees to prominent figures in their fields: Baroness
Pictured left: Ken West, Professor Higgins and Baroness Amos.
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As well as faculty collaboration, we have a number of alumni contributions to this issue. Graham Kenny’s (MSc 1971) book on diversification strategy is the focus of our book review and there is an opportunity to win a copy of the book by answering the competition question set by reviewer, Brad Atkinson (DBA 2006) (page 22). To find out what an alpha blogger is, read our regular Q&A feature on page 17, which in this issue is on Lisa Pollack (BA 2004) who works at the Financial Times. And alumnus Bryan Morton (MBA 1996) shares why he decided to get involved in the School’s future by joining the School’s Development Board on page 13.
in this issue and at the online events calendar to find out more about planned visits to China, India, the USA and Canada.
community to offer free management consultancy to charities. For information contact the Cranfield Trust directly. www.cranfieldtrust.org
Volunteering is a big part of Durham University culture and the Business School in particular is a big supporter of local community groups. The MBA elective – Project Sri Lanka – is an ‘all-inclusive’ project bringing together students and staff with community and regional partners in activities which aim to assist with both the reconstruction and regeneration of tsunami-devastated communities in southern Sri Lanka. A volunteering opportunity that might interest our UK-based alumni is the Cranfield Trust, an organisation which seeks to recruit volunteers from the business
We continuously look for ways in which we can improve our offering and member benefits package. Our most recent addition to the online ‘Knowledge Portal’ is the Henry Stewart Talks Marketing and Management Collection which offers free access to over 700 specially prepared audiovisual lectures delivered by leading academics and practitioners on a vast range of business topics (see page 2).
to network with alumni, our Global masters students and prospective students, as well as further professional development and enhance career prospects. Highlights of the events can be seen on pages 28 –29.
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Whilst the redevelopment at Mill Hill Lane is underway, alumni and friends of the School have been invited to join our ‘Take Your Seat’ campaign and sponsor a seat in one of the new lecture theatres. Some have sponsored a seat in their own name, some have commemorated their class and some have chosen to dedicate their donation to the memory of a treasured classmate. Here are just some of the reasons why people have supported the School in this way.
Best wishes Dr Scholes has taught undergraduate, postgraduate and MBA students and currently supervises PhD students. She is on the editorial board of the International Small Business Journal and her articles appear in a number of mainstream academic journals. Her research interests include family firms, entrepreneurial activity, private equity and venture capital.
Alexandra McNinch Alumni Relations Manager
Finally, I’d like to announce the winners of the competition run at Winter Graduation. Two members of the network who had used our online
Our programme of international events includes Leading Edge Career Workshops and the D8 Masterclass series and could be coming to a city near you! I encourage you to take a look at the ‘Dates for the Diary’ section
Here, we take a look at two recent research reports she co-authored for the IFB (Institute for Family Business) Research Foundation (ifb.org.uk).
At our 35-year reunion in July last year, classmate Peter Pearson referred to our ‘life-changing year’ at the Business School in 1976–77 and indeed it was. Most, in fact all of us, left with a great ‘can-do’ attitude which over the years has enabled us to succeed, and even excel, in a number of fields. Whilst the reunion provided an opportunity to remember, it also provided an opportunity to give back and for that the ‘Take Your Seat Campaign’ provided the perfect way. Some of us have already named seats for ‘The Class of 1976–77 Class Reunion’ and also in memory of our beloved classmate Con Jenkins. We hope that more of our class will join in and name a few more. This may just be the start – even now two 1976–77 graduates are talking about creating a fund to provide an annual scholarship for a local student.
SAMUEL TEDJASUKMANA, UK MSc in Finance & Investment 2006–07 Benefiting from ‘The Dean’s Scholarship’ helped me greatly in financing my MSc degree study at DUBS. The degree has proved to be very useful in my career. Participating in this ‘Take Your Seat’ campaign is just one small way that I can give back to the School, and continue to be part of its certainly very bright future!
TOM MULLEN, USA Full-time MBA 2008–09 For me, the Business School provided a charmed mixture of travel, insight, and camaraderie in a beautiful location. The experience changed my outlook on what’s truly important in life and for that I am grateful. This is the reason I chose to support the ‘Take Your Seat’ campaign.
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Can you help us? For more information or to get involved, please get in touch: Call: 01794 830338 Email: admin@cranfieldtrust.org or visit our website: www.cranfieldtrust.org
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So, is there a solution to keeping new recruits in the workplace? Two recent studies highlight how making use of socialisation and interaction can help us to understand the success and failure of retaining new recruits. Whether businesses are eager to maintain or even grow staff levels, it is crucial that they also consider the full costs of losing staff voluntarily. For every employee that is lost, organisations have to meet the costs of advertising, hiring and retraining as well as the expense associated with paying for overtime or temporary help. Lost productivity and recruiting and training new staff is an expensive business. Any insight into how to make that journey from newcomer to experienced employee permanent is something companies can’t afford to ignore. In The Oxford Handbook of Organisational Socialisation (The Oxford University Press), Dr Markku Jokisaari and Professor Jari-Erik Nurmi review socialisation in ‘Getting the Right Connections? The Consequences and Antecedents of Social Networks in Newcomer Socialisation’. Drawing on the learning experience of newcomers in organisations, they propose a theoretical model and disclose how interaction between newcomers and more experienced members of an organisation can sometimes mean the difference between success and failure for new recruits. And where previous studies have mainly examined newcomers’
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interactions with supervisors and co-workers, the authors highlight
the importance of the contribution of larger social networks within an organisation to successful socialisation. Scholars of organisational socialisation recognise that socialisation is a learning process during which newcomers face many different tasks that are critical to their success in their transition into an organisation. For example, one critical task for newcomers is to learn the skills and practices required to perform their job. This learning is then reflected in job performance.
Looking at the social network approach provides a background to help understand the role of social environment in organisational socialisation – or the process through which a new employee learns to adapt to an organisational culture. By examining the social network factor, Dr Jokisaari and Professor Nurmi suggest that the influence between networks and socialisation is reciprocal: networks lead to learning, success and adjustment; this, in turn, leads to more learning and better network development.
All Onboard If socialisation is successful, it can lead to positive outcomes for new employees. Such positive outcomes include greater job satisfaction, better job performance, more organisational commitment, a reduction in stress and, ultimately, less desire to leave a job. These outcomes are particularly important to an organisation looking to retain staff. In all, it is now recognised that organisational socialisation is a process
that fosters both companies to retain their new workers and new employees to learn organisation-specific and job-specific skills and practices, and adjust to the work. Fewer future graduates will not have the option of looking at a job for life and will need to change careers often. Employees, therefore, face an increased number of job changes and related work transitions including starting a variety of new roles during their careers. And with these new roles comes the need to learn organisationand job-specific skills and practices, in addition to settling into to a new organisational environment.
Hello, Goodbye However well socialisation opportunities have been presented to newcomers, it might be that some feel they just don’t fit into a new organisation. The risk of voluntary turnover is highest among new employees, showing, in part, that transition into a new job can often be unsuccessful. For example, it has been estimated that in the EU countries, about nine per cent of the employed population changed employer voluntarily during a year. Obviously, there is a need to better understand the problems associated with transitions into new organisations, and the related socialisation of new employees. Previously, scholars of organisational socialisation have argued that the interaction between newcomers and employees in an organisation is the main channel through which newcomers can learn their roles in the organisation. Dr Jokisaari’s study highlights how the supervisor of a new employee is often a
person who typically has positional power and related resources to foster newcomer socialisation, learning and the adjustment to work. Supervisors have formal authority and power to influence the formation of new employees’ roles in their job, and their job assignments. Supervisors also play a central role in providing knowledge and feedback through which role behaviours in the job and organisation are learned. Supervisors may also have the formal authority to influence subordinates’ advancement in the organisation, such as a recommendation for promotion, or allocating new job assignments.
Newcomers’ Social Networks In other research carried out by Dr Jokisaari, ‘The Role of Leader-Member and Network Relations in Newcomers’ Role Performance’, published in the Journal of Vocational Behavior, employees were issued with questionnaires and supervisors were asked to rate the newcomers’ job performance. As part of the research, a survey, carried out in Finland, gauged new employees three months after joining their organisation. The participants were permanent employees, their previous job experience in the current occupational field was just under four years, 85 per cent were women, and the median age was 29.5 years. Participants’ occupations included engineers, marketing assistants, dentists, teachers, cooks, nurses, nurse assistants, physiotherapists and psychologists. To indicate the quality of their leader relations, the employees graded such statements as: ‘I usually know where I stand with my supervisor’; and ‘I usually know how satisfied my supervisor is with me’. In addition, the employees evaluated their social networks in the new workplace.
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Drawing from up-to-date data, this latest IFB report looks at the performance of family businesses in the financial crisis and subsequent recession compared to non-family businesses’ performance, and examines expectations over the coming year. Family businesses account for two-thirds of firms in the UK private sector, and provide 9.2 million jobs – 40 per cent of total private sector jobs. In simple terms, this is 50 per cent more than the entire UK public sector and makes family firms the largest source of employment in the private sector.
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not interconnected, they offer more heterogeneous information and advice than persons belonging to a single group. In line with this, the characteristics of new employees’ social networks are related to their learning in the job which is reflected in job and creative performance.
Ties that Bind The social network approach also argues that network-based resources foster career success in the organisation. Through social network ties, people can obtain resources such as credentials and referrals, which may endorse their advancement in the organisation. These credentials and referrals are particularly important among new employees, since they may not yet have their own visibility in the workplace. Furthermore, job applicants and new employees seem to benefit already in the recruitment phase from their social network ties. Applicants who have a social tie to the organisation or who are recommended by a current employee in the organisation attain higher initial salaries and present more appropriate resumes compared to those applicants who do not have a social tie to the organisation.
Business School alumna Lisa Pollack (BA Economics, 2000–04) talks about her career and life post-Durham. She is a reporter for the Financial Times’ Alphaville blog, having previously worked as an analyst at Bank of America in New York City and for financial data company, Markit in London.
Q. What is your current role? A. I’m a reporter for the Financial Times’ Alphaville blog covering financial markets and economics. As well as writing, I do a lot of behind the scenes work around the website and various project work. Q. What would you say has been the most satisfying aspect of your career so far?
Interestingly, when a new employee is recruited through a personal relation, they are less likely to quit their job compared to employees who were recruited through formal channels such as recruitment advertising. New employees’ social networks support their adjustment to work. For example, close friendship ties in the workplace relate to organisational commitment; conversely, a peripheral position in social networks can be connected to lower job satisfaction.
The results revealed that the structure of the newcomers’ networks related to their job performance, and that their networks, characterised by strong ties, related to their work-group performance. The quality of the newcomers’ leader-member relations also had a direct relationship to their organisation member performance.
Dr Jokisaari’s studies highlight why it is important for organisations to make a robust plan for new starts when they join the ranks. These social relations will not only help foster good associations, but they will also directly impact on how successful a new employee’s transition will be into the organisation – and, in turn, how successful the organisation will be in retaining the employee after the initial settling in period.
In these studies, Dr Jokisaari also discusses ‘network density’. This concept looks at the importance of connectivity, ie the more interconnected a person’s social ties are, the higher the network density. Network research has argued that when people are
To find out more about Dr. Jokisaari’s work, visit his staff profile on the School’s website.
A. That’s tough to decide. The Alphaville blog provides me with a lot of pleasure in being able to explain complex financial topics in a digestible and fun way. Then there is the satisfying, but quite unexpected, upside of getting to meet people I admire. Only a week into my current job, I met Satyajit Das who is the author of my favourite book Traders, Guns and Money. Reading that book guided my career path. Q. What are your fondest memories of your time in Durham? A. That’s easy, Academic’s ‘Office Hours’, of course! Throughout the week, I’d build up lists of questions for my lecturers and I’d go to almost all their Office Hours. Usually they each had two hour-long drop-in sessions a week. Most of my classmates only showed up to these when there was some big assignment due in the near future. For me, those extra two hours of one-on-one tuition were priceless.
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Q. Do you feel that your Durham degree and connections have helped your career? A. Until you get some real work experience under your belt, you’re going to be judged on your academic performance. Part of that is down to the marks you achieve, and part of it is the reputation of the academic institutions you attend. Having a good degree from Durham can help get you in the door, but it’s up to you to take it from there. It’s incredibly enjoyable to see some of the friends I made when at Durham succeed in their chosen career paths. There’s more to come from them for sure. Q. What is the most exciting thing you have done since graduating? A. I’m going to add ‘and terrifying’ after the ‘exciting’ part. When I first graduated (after doing an MPhil in Economic and Financial Research at Maastricht University in the Netherlands), I went to work for a bank in New York City. I left after a couple of years and at the time I thought it’d take me a long time to find another job. As it turns out, I didn’t have a period of unemployment at all. I landed a job at a financial data company in London and got some time to study for the Chartered Financial Analyst
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WINTER GRADUATION 2013 On Friday 11 January 2013 Durham University Business School students celebrated the successful completion of their respective degrees by making their way to Palace Green, processing into Durham Cathedral and taking part in what is one of the proudest moments of a student’s University career – Congregation.
In turn each of the graduands proudly shook the hand of Professor Chris Higgins, the Vice Chancellor of Durham University, as they received their degree in recognition of their hard work. Following the formal ceremony, the Business School’s Alumni Network invited the new graduates to continue their celebrations at a drinks reception in Fisher House, Ustinov College. There presentations were made by programme directors to students who had won awards in recognition of their academic achievements.
AWARDS AND ACCOLADES MA MANAGEMENT AWARDS:
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HAPPY RETIREMENT? The subject of pensions must be one of the most boring imaginable, but one thing that is even less appealing is a long retirement lived out in grinding poverty. Yet all over the developed world, pension schemes are going through major reforms in response to a common threat. This threat is funding or, rather, the lack of it: many pensions schemes face the prospect of running out of money unless something is done to increase their ingoings or reduce their outgoings, or both.
Damian Grunow: Best Dissertation in MA Management Programmes BEST ACADEMIC PERFORMANCE: Maria Condrea: Human Resource Management Michael Horrocks: Financial Management Tobias Mies: Management Overall Best Academic Performance in the MA Management Programmes was awarded to Michael Horrocks.
MSC FINANCE AWARDS: Shalala Bayramova: Best Dissertation in MSc Finance Programmes Fang Zhang: Joint First Prize for the DUBS Trading Challenge (StockTrak) Jinfu Sun: Joint First Prize for the DUBS Trading Challenge (StockTrak) BEST ACADEMIC PERFORMANCE: Alexandros Zormpalas: International Banking & Finance Bastian Schrapel & Chang Liu: Finance & Investment Charlotte Braeken: Finance Eric Gusmaroli: Corporate & International Finance Jonathan Humphrey: International Money, Finance & Investment Kamil Heydarov & Meiko-Lars Schmidt: Accounting & Finance Moritz Weber: Economics & Finance Overall Best Academic Performance in the MSc Finance Programmes was awarded to Moritz Weber.
MA/MSC MARKETING AWARDS: Syeda Mariam Humayun: Best Dissertation Laura Molyneux: Best Academic Performance
MBA (FULL-TIME) AWARDS: Katharina Dolezil: Best Business Project/Dissertation (award sponsored by Alcatel-Lucent) Rebecca Walters: Best Academic Performance (award sponsored by SAGE) Weylin Poon: Best Business Project/Dissertation (award sponsored by Worshipful Company of International Bankers) BETA GAMMA SIGMA MEMBERSHIP was awarded to the following students in recognition of their academic achievement: MBA (full-time): David Pallash, Isabel Velasco Gamboa, Katharina Dolezil, Priya Swamikuttan, Rebecca Walters, Sebastian Wolfgarten & Weylin Poon Global MBA: Claas Siegmueller & Nikolay Gorgiev Global MA Management: Sebastian Schubert
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With the shift to DC, the first issue that arises is the contribution rate: how much should people save towards their pension plan? This is where the fun begins. For a start, few people appreciate the scale of the contributions needed. Most people would expect a pension in retirement equal to perhaps two thirds or three quarters of their final salary, which is the norm for people recently retiring in DB schemes. However, they imagine that can obtain such pension with impossibly low contribution rates. To given an example, if a typical man aged 25 saves, say, five per cent of his salary in a DC pension scheme over a 40-year
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horizon, illustrative simulations of my PensionMetrics DC pension model suggest that he can expect a pension equal to around 21 per cent (yes, 21 per cent: this is not a typo!) of final salary. The results for women are worse – and sometimes much worse. Then you have the problem of improving life expectancy: life expectancy has been growing strongly in recent decades. Higher life expectancy might be a good thing for the people who live longer – assuming that they have a decent pension to enjoy it – but it is a bad thing for the pensions schemes that have to pay out for longer. Indeed, perhaps the biggest problem currently facing DB schemes is what is cheerfully known as the ‘toxic tail’ – the risk that granny will not die as expected in her mid to late eighties but will survive well into her nineties. This risk is potentially fatal to the pensions industry. There is also the issue of charges – the dirty secret of the pensions industry. One thing the industry is very good at is charging its clients: there are fixed charges, charges for assets-under-management, charges for periods when the individual is not contributing, charges for leaving a pension schemes and various other charges too, my favourite being ‘Total Expense Ratio’ charges which are meant to summarise all charges but often don’t. The industry is also very good at hiding charges from
members so they don’t realise how much they are actually paying. Not surprisingly, there is currently a lot of pressure on them to cut charges and make them more transparent: the Pensions Minister, Steve Webb, recently warned the industry that on the charge issue he was ‘watching them like a hawk’. The industry’s response is reminiscent of a child being dragged to the dentist. Now add in longevity risk and realistic charges, and our 25-year-old male is now looking at a pension income equal to only just over 12 per cent (!) of his final salary. One can’t help wondering why he would bother: perhaps he should take President Obama’s advice to ‘seize the day’, ie, eat, drink and be merry and forget about pensions altogether. The government’s response is to encourage people to join DC schemes by offering tax concessions and just recently, by introducing auto-enrolment, in which millions of employees without private pensions will be automatically enrolled in their employer’s pension plan unless they explicitly opt out. However, the tax concessions would seem to be pointless: a private boast within the pensions industry is that they can extract all these for themselves through cleverly designed charge regimes. As for auto-enrolment, there is a very real danger that many people least able to afford it will find themselves contributing to pension schemes that deliver little back. On balance, it is probably better to see the government’s role in pensions as part of the problem rather than the solution. Over the years, the government has periodically
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In the UK, this issue manifests itself in a shift away from traditional Defined Benefit (DB) schemes (schemes in which a member’s entitlements are specified, such as final salary schemes) to Defined Contribution (DC) schemes in which the member builds up their own pension pot and gets the pension income this pot is worth. This change solves the problem of pension funds running out of money by transferring risks to the plan member, who now has to take the daunting responsibility for their own pension and run the risk of an impoverished retirement if they get this wrong. The days of generous DB pensions are over – except for those already on them or high-level public servants whose benefits are taxpayer financed.
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Here Kevin Dowd, Professor of Finance and Economics at Durham University Business School, shares his own, personal, views on pension schemes.
Are you looking ahead with confidence to the day when you begin receiving your pension cheques?
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chopped and changed the system, often pulling the rug from those who had relied on previous government promises. It has also gone in for policies, which my friend, the Reuters columnist Martin Hutchinson, aptly described as policies of sadoeconomics, in which the government punishes groups it dislikes: a notorious example being the ‘euthanise the rentier’ policy of the post-war years, whose aim was to destroy the real incomes of those who lived on their savings – a policy which succeeded magnificently and pauperised many who had done the right thing and saved for their pensions in earlier years. The government has also regularly raided pension funds when it suited it (one thinks of Gordon Brown’s famous ‘pension raids’ of the late 1990s), and since 2009 the Bank of England has been undermining pensions through its Quantitative Easing policies, which are literally killing the returns that pension funds can deliver. One also has to consider the debt that the government has been issuing in vast amounts since at least the late 1990s. We are not talking here of just the ‘official’ debt – this has just passed 80 per cent of GDP and this is bad enough – but this is merely the tip of the iceberg. The unofficial debt – commitments entered into, but not provided for; think of the Private Finance Initiative, for example – is much bigger. Respectable estimates put it some between 500 per cent and 1000 per cent of UK GDP. All this represents a very big can kicked down the road for younger people to pick up. Nor should one see the state pension system as the solution. The state pension system is massively under-funded and its obligations are a major component of the unofficial government debt just mentioned. Fans of state pension schemes should also consider the fate of the Soviet state pension system, one of the glories of the Socialist System: this was very generous and promised pensions in some cases of 100 per cent of final salary. However, after the break up of the USSR the state pension systems in ex-Soviet countries collapsed and many pensioners found themselves with nothing to live on. This highlights the point that any pension system is only as good as its solvency.
So what should young people do? The conventional advice is that they should save more and plan to retire later, and there is certainly something to this. My advice is that if you choose a DC pension, go for one with low and transparent charges: PensionMetrics simulations show that charges are the key driver and will make a big difference to your pension. Don’t be fooled by industry propaganda about highcharging fancy investment strategies: these don’t work but the industry likes them because they are very profitable; in fact, they are very profitable precisely because of the high charges. You should also consider ‘out of the box’ alternatives. One I like is the ‘gold DIY pension plan’: buy gold and bury it in the garden. Another I like is the oldest pension scheme of all, the ‘DIY peasant pension plan’: save, stash your wealth where predators can’t find it and have a big family to look after you when you are old. This has been widely used for thousands of years and so presumably must have something going for it. There is no question that young people are getting a raw deal: the norm these days is that they are saddled with college debts, have difficulty landing a good job, have little realistic prospect of getting on the housing ladder until well into their thirties and face a lifetime of rising taxes to pay off all the cheques that their elders have written on them. And now we are telling them
The reports establish that there are three million family businesses in the UK, made up predominantly of Small and Medium-sized Enterprises (SMEs). Family firms generated revenues of ÂŁ1.1 trillion in 2010, or 35 per cent of private sector turnover. Of these revenues, family firms made a ÂŁ346 billion value-added contribution to UK GDP, or nearly a quarter of the total.These businesses are estimated to have contributed a staggering ÂŁ81.7 billion in tax receipts to the UK Exchequer, or 14 per cent of total government revenues in 2010.
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When it comes to staff retention, the UK falls behind the rest of Europe and the US with employee resignations costing businesses up to ÂŁ42 billion a year.
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Her research was also pivotal in the report The UK Family Business Sector – Working to grow the UK economy published in November 2011. This report was commissioned by the IFB Research Foundation and prepared by Oxford Economics as a comprehensive evaluation of the UK family business sector. The report uses data collected by the Department for Business, Innovation, and Skills (BIS), and follows up on the 2008 IFB Family Business Sector Report UK Family Business Sector, An Institute for Family Business by Capital Economics.
While many companies are desperately looking for an effective survival plan, it seems that an alternative business model does appear to be successful and exists in the family business sector. Family firms are continuing to thrive and grow. In many cases, family firms are out-performing other businesses – a testament to their strength and resilience. At a time when the UK government is highlighting the importance of entrepreneurship as crucial to the recovery of the economy, what can we learn from this research?
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GETTING TO KNOW YOU‌
Bryan Morton MBA alumnus (Class of 1996) Pharmaceutical Entrepreneur.
The report investigates family businesses in the UK and focuses on their industrial and geographical context and their governance and performance relative to non-family businesses from 2007 to 2009.
Dr Scholes was a co-author of the IFB (Institute for Family Business) Research Foundation report titled UK Family Businesses: Industrial and Geographical Context, Governance and Performance, which was compiled by Nottingham University Business School (NUBS) and Leeds University Credit Management Research Centre (CMRC) and published in 2010.
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Dr Markku Jokisaari is a recently appointed Research Fellow at Durham University Business School specialising in organisational socialisation and working relationships. His latest work includes ‘The Role of leader-member and network relations in newcoming performance’ 2013. The focus of this piece is a review of his work on ‘Getting the right connection? The Consequences and Antecedents of Social Networks in Newcomer Socialisation’ which features in The Oxford Handbook of Organisational Socialisation.
For further details of how you can support current and prospective students, the building project, or to learn about other ways to engage with the School contact Jason Coleman, Development Executive on +44 (0)191 344 5446 or jason.coleman@durham.ac.uk.
I would like to encourage other classes to do the same.
UK businesses have recently experienced the worst trading conditions since 2008. And with the global financial crisis triggering the deepest recession in postwar Britain, the subsequent recovery has been sluggish to say the least. However one area of business may have suffered a little less: according to recent studies, family-owned firms were better off during the crisis. Indeed, some firms have gone so far as to claim that being a family business had helped.
Two recent research projects that compare and contrast family businesses with nonfamily businesses, and how they have addressed governance and performance during recession, have revealed interesting evidence about the resilience of the family business.
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A UMN UPDA E
Dear DUBS alumni,
After years at the head of the family business I realised that my engineering training was not enough for me to deliver a top performance. Balancing a business, a family and an MBA was always going to be a challenge. Fortunately the very helpful support and flexibility provided by both the Business School and the MBA team enabled me to complete my degree and acquire knowledge that only a high-level globally recognised MBA offers. So, my donation is my symbolic way of saying thank you.
As we review the latest retail casualties for the first part of 2013, it looks likely that the demise of more iconic British businesses will be inevitable this year. However, family-owned businesses seem to be bucking the trend, and some are even set to prosper. So what are their secrets to riding out economic storms? Two recent studies suggest that the reasons might be more about long-term survival goals and not just down to customer loyalty to the name above the door.
One explanation is that most family-owned firms benefited from a more cautious strategy during the boom years, which left them less exposed to the downturn in demand. However, as fears of a contraction loom in the final quarter of 2013, are family-owned businesses ready to ride out the next storm?
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I hope you wonâ&#x20AC;&#x2122;t mind me interrupting a page of your magazine to introduce myself. In 2011, a member of staff from DUBS came to see me in Oxford and asked degree meant to me fifteen me what my Durham years or so after graduation. The question took me by in truth, I committed myself surprise because to my work and family after graduating without ever to give any in-depth thought really pausing to my studies and their impact on my entrepreneurial pharmaceuticals. Eighteen successes in months on from that meeting, School in a number of however, I have re-engaged ways and write to encourage with the you to consider doing the same. Over the past year I travelled to Durham on several occasions faculty, and the Schoolâ&#x20AC;&#x2122;s and met with the Dean, leadership team. I have members of been enthused by the Schoolâ&#x20AC;&#x2122;s commitment to underpin demonstration of its and inform its research and teaching with the skills both now and in the future that industry is seeking, (as well as one can predict!). The Dean is not only interested in what attributes are desirable but in each and every continent in Durham, or the Square Mile, of the world. Another thing is that Durham is a unique that my visits served to remind me university with an ability to appear far bigger an institution is. I recently learnt for instance than it actually that employers from around the top 20 universities globally the world regard Durham as being among for the employability of its graduates and that its the way nationally in university sports participants lead team sports, two facts that I find incredibly encouraging. As well as developing its core strengths in academic and research excellence, in its physical infrastructure. the School is investing I encourage you to take a look on their website visit â&#x20AC;&#x201C; it really does look or better still to arrange impressive. The business to case for undertaking the convinced me to support expansion and refurbishment the project in the form of making a donation to myself and a few others name a room. Furthermore, who I will duly name and â&#x20AC;&#x2DC;shameâ&#x20AC;&#x2122; as David Ellis, Brian and John Lo have established Robinson, Graeme Bell a fundraising board to help identify others to support Why? Because itâ&#x20AC;&#x2122;s widely known that to produce the project too. the best graduates, a university most gifted students, employ needs to enrol the faculty of the highest calibre expectations of a well-informed and provide infrastructure that meets the international student cohort. the build project. There The Board doesnâ&#x20AC;&#x2122;t just are many other equally seek help for worthwhile initiatives that our philanthropic support would benefit greatly from and I would appreciate the opportunity to discuss detail. If you would like these with to get in touch then please contact the Schoolâ&#x20AC;&#x2122;s Development you in more Jason Coleman who, along with the Dean, represents Executive, the School on the Board, the necessary arrangements. and he will make I thank you for taking the time to read my letter and look forward to seeing the School, on future visits many of you about back to Durham City.
MARCO TULIOMATEUS, BRAZIL Global MBA 2007
ELAINE (YI) CHEN, CHINA Full-time MBA 1998â&#x20AC;&#x201C;99
Dr Louise Scholes joined Durham University Business School last September as a Senior Lecturer in Entrepreneurial Management, and is an expert in family business. She previously worked as a research scientist for Unilever and achieved an MBA at Nottingham University Business School. After securing a research position there in the Centre for Management Buy-out Research, she lectured in the Entrepreneurship Group.
As always, I welcome any feedback that you have on this issue or the alumni network in general. Happy reading!
D
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I do so appreciate the learning/education opportunities that the Business School gave to me back in 1998. That experience has benefited my career in a profound way, as well as having paved my future in a decent manner, both financially and psychologically. Life is treating me well, so Iâ&#x20AC;&#x2122;m taking up my social obligation to give back.
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A FAMILY AFFAIR
resources within a month of graduation were selected at random to receive prizes. Congratulations go to Benjamin Chance (BA 2006), who won a ÂŁ100 iTunes voucher, and Philip Lesmana (MBA 2011â&#x20AC;&#x201C;12), who won a ÂŁ50 Amazon voucher.
Use your talents and management expertise to support local charities
As an international Business School, it comes as no surprise that we have alumni situated in all corners of the globe. To support our members we have launched the biggest programme of international events that the School has ever had. In March we had six events within one week with staff visiting locations including Mumbai, Frankfurt, Geneva, Sri Lanka and Delhi. These events provide great opportunities
TAKE YOUR SEAT...
BOB BURNS (USA), GEORGE BELL (AUSTRALIA), PETER PEARSON, LIZ THORLEY, AND GEOFF LODGE (UK) MSc Management Class of 1977
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EIU BUSINESS PROFESSOR OF THE YEAR
UNIVERSITY NEWS
The building houses key student services and the Universityâ&#x20AC;&#x2122;s headquarters on one site and is the culmination of a four-year, multi-million pound development programme to create a hub at the heart of the University in Durham City. It brings together for the first time all student-facing services, alongside the newly re-named and extended Bill Bryson Library, and the new Durham Law School.
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SCHOOL NEWS
DEANâ&#x20AC;&#x2122;S WELCOME
that they donâ&#x20AC;&#x2122;t have any realistic prospect of a decent pension either. Not your fault, son, but if you wanted a good pension you should have been born earlier.
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This is a good recipe for an ugly and protracted intergenerational war â&#x20AC;&#x201C; and one senses that young people are beginning to wake up. After all, why should they pay for all the benefits their elders will have enjoyed when the system they paid into wonâ&#x20AC;&#x2122;t be there for them when they retire? Or, rather, if they retire: most wonâ&#x20AC;&#x2122;t be able to afford it.
w
From a pensions perspective, this is just a return to the long-run historical norm. From this perspective, a decent pension is largely a feature of the 20th century. Most people before the 20th century never got one and most people after wonâ&#x20AC;&#x2122;t get one either. For me this winter has been full of long days â&#x20AC;&#x201C; given the current business environment of economic and fiscal uncertainty and working for the CFO ofa large government healthcare agency in the Washington, DC area. Left unchecked cynicism thrives in this current, zero-sum environment. This was my mind set as I received a copy of Graham Kennyâ&#x20AC;&#x2122;s book, Diversification Strategy: How to grow a business by diversifying successfully. Dr Kenny weaves an appropriate blend of academic literature and case studies to frame an operational definition of diversification that cuts through ambiguity to establish a performance framework and to identify the common characteristics found in a panel of firms that have demonstrated excellence in the execution of a diversification strategy.
performance, how to achieve an effective mix in decentralising business functions and activities to develop competitive advantage. The strategic management field has advocated diversification for decades, however in my experience of teaching strategic management to undergraduates and performing consulting engagements I have found the literature to be lacking. The r
Let me give you the bottom line up front: â&#x20AC;&#x2DC;Diversification Strategyâ&#x20AC;&#x2122; is a good read at less than 210 pages within four parts. It is also a pragmatic book that is written in a style that sounds more like the voice of a trusted advisor than an academic researcher. Kenny provides insight related to the internal dynamics of organisational governance found in firms that have demonstrated excellence in managing diverse business units. Topics include how to balance the roles and responsibilities among a central office and diverse operational business units to provide effective governance, how to measure
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Level 2 exam before taking on the role. Sometimes scary situations turn out for the best with a combination of luck and perseverance. Q. If you were to offer some advice to current students, what would it be? A. Hard work and resourcefulness count for just as much, if not more, than natural intelligence. Donâ&#x20AC;&#x2122;t just study to pass an exam â&#x20AC;&#x201C; thatâ&#x20AC;&#x2122;s a very shorttermist perspective to take. Truly knowing a topic is a good habit to get into when youâ&#x20AC;&#x2122;re a student. Also if you donâ&#x20AC;&#x2122;t like what youâ&#x20AC;&#x2122;re doing admit that it wasnâ&#x20AC;&#x2122;t the right decision and try to change it today, not tomorrow. When I arrived at Durham I was convinced I wanted to read engineering as I enjoyed A-level Physics. As it transpired engineering turned out not to be for me and I switched to economics after a year. A lot of people stay in situations they know arenâ&#x20AC;&#x2122;t right for them, donâ&#x20AC;&#x2122;t be that person if you can help it. Q. What about your plans for the future? A. I am keeping an open-mind! Thus far, hard work and luck have brought me some very interesting opportunities. I donâ&#x20AC;&#x2122;t want to get too set in a fixed path or I might not be as willing to jump to the next challenge when the chance comes.
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DEAN’S WELCOME faculty under one roof and will dramatically improve the student’s facilities as well as create significantly more flexible space for students’ individual and group study, as well as hospitality. You can see from the work in progress picture that the redevelopment is coming along very nicely indeed.
You may have seen our announcement last autumn that, following an extensive rebranding exercise, the School has been renamed Durham University Business School. The review, which consulted with many of the School’s internal and external stakeholders, sought to better align us with the heritage and prestige of our parent organisation, Durham University. 2013 will be a momentous year in the history of the Business School, most notably because by autumn we will be back in our newly extended and renovated building at Mill Hill Lane. This will bring together the majority of the School’s
By the start of the next academic year we aim to have increased our faculty number to over 130, representing considerable growth over the past ten years. One of the most recent additions to the School is the new Professor of Leadership, Robert Lord. Robert joins us from the University of Akron where he held the position of Distinguished Professor of Psychology for 38 years. Another new faculty member is Dr Emmanuel Adegbite, Lecturer in Accounting who is the feature of our regular ‘Introducing’ piece on page 25. I wish them both a warm welcome to Durham. This year also marks the end of an extensive exercise to co-ordinate the School’s research centres. With the outcome of the Research Excellence Framework due in 2014, research, and its impact, continues to be high on the School’s agenda. For that reason we have taken this opportunity to share some of our faculty’s recent work: Dr Louise
Scholes recently joined Durham and has been looking at the retail casualties of some of the UK’s best known brands and how research has suggested that familyowned businesses may have had better survival rates during what has been the biggest recession in post-war Britain (pages 8–11). Another relatively new member of staff is Dr Markku Jokisaari. Our article ‘Getting to know you’ looks at Dr Jokisaari’s research on the importance of social relations for new employees and how interaction between newcomers and more experienced members of an organisation can sometimes mean the difference between success and failure for new recruits (pages 14–15). And finally, Professor Kevin Dowd discusses the confidence in defined contribution pension schemes and its effects on future generations’ retirement plans (pages 20–21). We are entering a very exciting, yet challenging, time for the School. I welcome your contributions and comments and invite you to put forward any suggestions you may have as to how we might work together to further enhance the School’s future.
Professor Rob Dixon, Dean
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SCHOOL NEWS SCHOLARSHIP AWARD
OBE FOR ALUMNUS
Congratulations to Jon Kilmartin, the winner of the Durham Executive MBA Scholarship Competition. The competition provided a full-fee scholarship for the School’s Executive MBA programme, and Jon, who is based in London and currently working for global sports media, management and entertainment firm IMG, began his studies in January. To learn more about the programme visit: www.durham.ac.uk/business/degrees/ mba/pt
MBA alumnus Moses Anibaba (2001) has been awarded an OBE in the latest UK New Year’s Honours list. Moses, who is Director, British Council in Ghana, received the award in recognition of his services to UK cultural interests in West Africa. SUCCESS FOR CGLEE LANDMARK LEADERSHIP PROGRAMME An innovative leadership programme for professional women in Saudi Arabia delivered by the School’s Centre for Global Learning and Executive Education (CGLEE) was the first of its kind. Run in collaboration with the British Council its aim is to enhance the leadership skills, knowledge and attitudes of women in senior positions. The programme, which has been heavily oversubscribed, has been received with great enthusiasm and another is planned for later this year. An online network has been set up for the participants to share experiences and on-going learning.
EIU BUSINESS PROFESSOR OF THE YEAR Congratulations go to Dr Michael Guo who successfully made it to the long list for the EIU Business Professor of the Year. The long list comprised ten professors who had been nominated and voted for by their students and alumni. The competition attracted 222 nominations from 31 universities worldwide and over 30,000 votes were received. Four shortlisted candidates will now compete in a live ‘teach-off’ for the $100,000 prize.
UNIVERSITY NEWS OFFICIAL OPENING OF THE PALATINE CENTRE Durham University’s new Palatine Centre was formally opened in October last year by Nobel Prize winning scientist and President of the Royal Society, Sir Paul Nurse. The building houses key student services and the University’s headquarters on one site and is the culmination of a four-year, multi-million pound development programme to create a hub at the heart of the University in Durham City. It brings together for the first time all student-facing services, alongside the newly re-named and extended Bill Bryson Library, and the new Durham Law School. HONORARY DEGREES AT WINTER GRADUATION The University honoured four successful national and international figures in equal opportunities and human rights, sociology, music and natural burials at its Winter Congregation celebrations in January. Durham’s Vice-Chancellor, Professor Chris Higgins, presented honorary degrees to prominent figures in their fields: Baroness
Valerie Amos, Under-Secretary-General for Humanitarian Affairs and Emergency Relief Coordinator at the United Nations Office for the Coordination of Humanitarian Affairs (honorary Doctor of Civil Law); Ken West MBE, the pioneer of natural burials (honorary Master of Arts); musician Graham Johnson OBE (honorary Doctor of Music), and Professor Huw Beynon, a distinguished industrial sociologist (honorary Doctor of Letters).
THE LINDISFARNE GOSPELS COME TO DURHAM For three months this summer (July to September), one of the world’s most precious books, the Lindisfarne Gospels, will be on show in an exhibition at Durham University’s Palace Green Library. The exhibition will provide a compelling new contemporary interpretation of this unique book, and an extensive programme of events including art and music, workshops and conferences, pilgrimages and retreats, exhibitions and performances will be staged. For the latest news and updates about the exhibition, visit: www.lindisfarnegospels.com
Pictured left: Ken West, Professor Higgins and Baroness Amos.
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ALUMNI – UPDATE Welcome to the first edition of DUBS Alumni News of 2013, the first edition since the School changed its name from Durham Business School to Durham University Business School. Those of you who graduated prior to 1999 will have known the School in the days when it was originally called Durham University Business School and will be familiar with the ‘DUBS’ acronym. We believe that aligning ourselves with the University in this way provides a great opportunity to strengthen our brand globally.
We are now approaching the final stretch of our time at Ushaw College, and whilst we have very much enjoyed this impressive historic site, we are looking forward to returning to Mill Hill Lane where we will have access to the first class teaching facilities that we have been telling you about for so long. You may be interested to visit the School’s website to view the on-site time lapse video footage to see how the redevelopment is progressing: www.durham.ac.uk/business The contractors tell us that progress is on schedule and we should be re-occupying the building at the end of the summer, ready for the fresh cohort of students starting the new academic year. When the School reopens, donors and supporters of our ‘Take Your Seat’ campaign will be able to proudly view their plaques in one of the brand new lecture theatres. On page 12 you can read messages from some of the contributors to the campaign and hear why they wanted to be remembered in this way.
As well as faculty collaboration, we have a number of alumni contributions to this issue. Graham Kenny’s (MSc 1971) book on diversification strategy is the focus of our book review and there is an opportunity to win a copy of the book by answering the competition question set by reviewer, Brad Atkinson (DBA 2006) (page 22). To find out what an alpha blogger is, read our regular Q&A feature on page 17, which in this issue is on Lisa Pollack (BA 2004) who works at the Financial Times. And alumnus Bryan Morton (MBA 1996) shares why he decided to get involved in the School’s future by joining the School’s Development Board on page 13. As an international Business School, it comes as no surprise that we have alumni situated in all corners of the globe. To support our members we have launched the biggest programme of international events that the School has ever had. In March we had six events within one week with staff visiting locations including Mumbai, Frankfurt, Geneva, Sri Lanka and Delhi. These events provide great opportunities
to network with alumni, our Global masters students and prospective students, as well as further professional development and enhance career prospects. Highlights of the events can be seen on pages 28 –29. Our programme of international events includes Leading Edge Career Workshops and the D8 Masterclass series and could be coming to a city near you! I encourage you to take a look at the ‘Dates for the Diary’ section
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in this issue and at the online events calendar to find out more about planned visits to China, India, the USA and Canada.
community to offer free management consultancy to charities. For information contact the Cranfield Trust directly. www.cranfieldtrust.org
Volunteering is a big part of Durham University culture and the Business School in particular is a big supporter of local community groups. The MBA elective â&#x20AC;&#x201C; Project Sri Lanka â&#x20AC;&#x201C; is an â&#x20AC;&#x2DC;all-inclusiveâ&#x20AC;&#x2122; project bringing together students and staff with community and regional partners in activities which aim to assist with both the reconstruction and regeneration of tsunami-devastated communities in southern Sri Lanka. A volunteering opportunity that might interest our UK-based alumni is the Cranfield Trust, an organisation which seeks to recruit volunteers from the business
We continuously look for ways in which we can improve our offering and member benefits package. Our most recent addition to the online â&#x20AC;&#x2DC;Knowledge Portalâ&#x20AC;&#x2122; is the Henry Stewart Talks Marketing and Management Collection which offers free access to over 700 specially prepared audiovisual lectures delivered by leading academics and practitioners on a vast range of business topics (see page 2).
resources within a month of graduation were selected at random to receive prizes. Congratulations go to Benjamin Chance (BA 2006), who won a ÂŁ100 iTunes voucher, and Philip Lesmana (MBA 2011â&#x20AC;&#x201C;12), who won a ÂŁ50 Amazon voucher. As always, I welcome any feedback that you have on this issue or the alumni network in general. Happy reading! Best wishes Alexandra McNinch Alumni Relations Manager
Finally, Iâ&#x20AC;&#x2122;d like to announce the winners of the competition run at Winter Graduation. Two members of the network who had used our online
Use your talents and management expertise to support local charities 7KH &UDQË&#x2030;HOG 7UXVW LV D XQLTXH IUHH PDQDJHPHQW FRQVXOWDQF\ IRU 8. EDVHG FKDULWLHV :RUNLQJ ZLWK D UHJLVWHU RI YROXQWHHU FRQVXOWDQWV DURXQG WKH 8. PRVW RI WKHP DOXPQL RI OHDGLQJ EXVLQHVV VFKRROV ZH VXSSRUW RYHU FKDULWLHV D \HDU ZLWK SUR ERQR FRQVXOWDQF\ SURMHFWV <RXU EXVLQHVV VNLOOV FDQ KHOS FKDULWLHV WR LPSURYH WKHLU SODQQLQJ Ë&#x2030;QDQFLDO PDQDJHPHQW PDUNHWLQJ JRYHUQDQFH +5 DQG ,7 Č? KHOSLQJ WKHP GHOLYHU WKHLU YLWDO VHUYLFHV HIIHFWLYHO\ LQ WKHVH YHU\ FKDOOHQJLQJ WLPHV 3URMHFWV DUH Ë&#x160;H[LEOH DQG WDLORUHG WR Ë&#x2030;W DURXQG \RXU ZRUN DQG RWKHU FRPPLWPHQWV DQG DUH VXSSRUWHG E\ 7KH &UDQË&#x2030;HOG 7UXVWČ V QHWZRUN RI UHJLRQDO 3URMHFW 0DQDJHUV &UDQË&#x2030;HOG 7UXVW YROXQWHHUV WHOO XV WKDW WKHLU DVVLJQPHQWV DUH SHUVRQDOO\ DQG VRFLDOO\ UHZDUGLQJ ZLWK RI WKHLU ZRUN GLUHFWO\ KHOSLQJ FKDULWLHV DQG RIWHQ SURYLGLQJ D OLIHOLQH IRU WKH FKDULW\Č V H[LVWHQFH :H DOVR RIIHU VSHFLDOLVW VXSSRUW RQ HPSOR\PHQW LVVXHV YLD +51HW RXU RQOLQH +5 DGYLFH VHUYLFH SURIHVVLRQDOO\ PDQDJHG WR GHOLYHU SUR ERQR +5 DGYLFH ,I \RX DUH DQ +5 SURIHVVLRQDO DQG ZRXOG EH LQWHUHVWHG WR OHDUQ PRUH DERXW YROXQWHHULQJ \RXU +5 VNLOOV SOHDVH PHQWLRQ +51HW ZKHQ \RX FRQWDFW XV
Can you help us? For more information or to get involved, please get in touch: Call: 01794 830338 Email: admin@cranfieldtrust.org or visit our website: www.cranfieldtrust.org
8
A FAMILY AFFAIR Dr Louise Scholes joined Durham University Business School last September as a Senior Lecturer in Entrepreneurial Management, and is an expert in family business. She previously worked as a research scientist for Unilever and achieved an MBA at Nottingham University Business School. After securing a research position there in the Centre for Management Buy-out Research, she lectured in the Entrepreneurship Group. Dr Scholes has taught undergraduate, postgraduate and MBA students and currently supervises PhD students. She is on the editorial board of the International Small Business Journal and her articles appear in a number of mainstream academic journals. Her research interests include family firms, entrepreneurial activity, private equity and venture capital. Here, we take a look at two recent research reports she co-authored for the IFB (Institute for Family Business) Research Foundation (ifb.org.uk).
As we review the latest retail casualties for the first part of 2013, it looks likely that the demise of more iconic British businesses will be inevitable this year. However, family-owned businesses seem to be bucking the trend, and some are even set to prosper. So what are their secrets to riding out economic storms? Two recent studies suggest that the reasons might be more about long-term survival goals and not just down to customer loyalty to the name above the door. UK businesses have recently experienced the worst trading conditions since 2008. And with the global financial crisis triggering the deepest recession in postwar Britain, the subsequent recovery has been sluggish to say the least. However one area of business may have suffered a little less: according to recent studies, family-owned firms were better off during the crisis. Indeed, some firms have gone so far as to claim that being a family business had helped. One explanation is that most family-owned firms benefited from a more cautious strategy during the boom years, which left them less exposed to the downturn in demand. However, as fears of a contraction loom in the final quarter of 2013, are family-owned businesses ready to ride out the next storm? Two recent research projects that compare and contrast family businesses with nonfamily businesses, and how they have addressed governance and performance during recession, have revealed interesting evidence about the resilience of the family business. Dr Scholes was a co-author of the IFB (Institute for Family Business) Research Foundation report titled â&#x20AC;&#x2DC;UK Family Businesses: Industrial and Geographical Context, Governance and Performanceâ&#x20AC;&#x2122;, which was compiled by Nottingham University Business School (NUBS) and Leeds University Credit Management Research Centre (CMRC) and published in 2010.
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The report investigates family businesses in the UK and focuses on their industrial and geographical context and their governance and performance relative to non-family businesses from 2007 to 2009. Her research was also pivotal in the report ‘The UK Family Business Sector – Working to grow the UK economy’ published in November 2011. This report was commissioned by the IFB Research Foundation and prepared by Oxford Economics as a comprehensive evaluation of the UK family business sector. The report uses data collected by the Department for Business, Innovation, and Skills (BIS), and follows up on the 2008 IFB Family Business Sector Report ‘UK Family Business Sector, An Institute for Family Business’ by Capital Economics. Drawing from up-to-date data, this latest IFB report looks at the performance of family businesses in the financial crisis and subsequent recession compared to non-family businesses’ performance, and examines expectations over the coming year. Family businesses account for two thirds of firms in the UK private sector, and provide 9.2 million jobs – 40 per cent of total private sector jobs. In simple terms, this is 50 per cent more than the entire UK public sector and makes family firms the largest source of employment in the private sector.
While many companies are desperately looking for an effective survival plan, it seems that an alternative business model does appear to be successful and exists in the family business sector. Family firms are continuing to thrive and grow. In many cases, family firms are out-performing other businesses – a testament to their strength and resilience. At a time when the UK government is highlighting the importance of entrepreneurship as crucial to the recovery of the economy, what can we learn from this research?
The reports establish that there are three million family businesses in the UK, made up predominantly of Small and Medium-sized Enterprises (SMEs). Family firms generated revenues of £1.1 trillion in 2010, or 35 per cent of private sector turnover. Of these revenues, family firms made a £346 billion value-added contribution to UK GDP, or nearly a quarter of the total. These businesses are estimated to have contributed a staggering £81.7 billion in tax receipts to the UK Exchequer, or 14 per cent of total government revenues in 2010.
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KEEPING IT IN THE FAMILY
SURVIVAL OF THE FITTEST?
FAMILY PLANNING
Researchers uncovered characteristics such as family firms having older directors (around 51 years) than non-family firms (around 49 years), and that the average age of directors increases for non-family firms as the firm size increases. Also, in general, family firm directors tend to be more experienced than non-family firm directors. Although this disappears as firm size grows, family firm directors have more industrial directorship experience regardless of the firm size. Directors of large firms tend to be more experienced overall regardless of firm category, family or non-family. Out of 300,000 family firms in 2009, around 52,000 had non-family directors on board. The 2010 study found that family firms tended to have a greater percentage of female directors (around 44 per cent) than non-family firms (around 32 per cent).
So, is the secret to success really down to keeping it in the family? Dr Louise Scholes says that family firms have been more resilient during the recession: ‘The survival and resilience of family firms is vital to the UK economy. Family firms have lower insolvency rates; they are more profitable and have a higher percentage of female directors. They have been particularly resilient in this recession’.
The research also indicated that legislation has generally been supportive of the family business sector in recent years, but there are still opportunities to encourage further growth through targeted policy measures.
Family-owned businesses are mostly involved in agriculture and extraction (89 per cent), hotels and restaurants (85 per cent), and in wholesale and retail trade and repairs (77 per cent), and these are distributed evenly among the UK regions (around 30 per cent) with the exception of London where the percentage of family businesses is as low as 20 per cent. However, Yorkshire and Scotland have lower incidences of family firms compared to the other parts of the UK among large sized firms.
Vince Cable, the Secretary of State for Business, Innovation and Skills in the coalition government, said in a foreword to last year’s IFB report that: ‘Family firms have a strong presence and include many businesses which are now powerful exemplars of British industry. The government is firmly on the side of enterprising family businesses and enterprise more generally.’
The IFB, for example, has called for the government to boost enterprising family firms by removing discrimination in the tax system, cutting red tape and bureaucracy around employment legislation and working with family firms to plan for the future and secure jobs. Accessing credit to fund investment will continue to be a critical issue. The evidence in the 2011 report indicates that attention needs to continue to be focused on ensuring the flow of credit to smaller family businesses. It is suggested that the government could also help with the creation of a bond market accessible to medium-sized companies, which would fill an existing void.
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STRONG FOUNDATIONS
RECESSION-PROOF
FLYING THE NEST
After the banking collapse in 2008, the proportion of SME family businesses applying for finance rose from 18 per cent to 30 per cent in 2010. SME family firms increased their demand for external finance to obtain working capital, rather than to fund investment projects during the recession.
As demand for credit rose during the recession, the report also indicates that family firms were more successful in obtaining external finance. Of the SME family firms that applied for external finance in 2010, 76 per cent were successful compared to 68 per cent of non-family SME firms.
In 2009 both medium-sized and large family firms had higher ratios of retained earnings to total assets than did their non-family counterparts. This may have been linked to the relative balance sheet strength of family firms prior to the recession and the lower risk taking nature of family firms.
Family businesses also appeared to be less vulnerable to corporate dissolutions; while insolvency rose in family firms, they were lower than for their non-family counterparts. Again, this was perhaps a reflection of stronger balance-sheet fundamentals prior to the recession.
As for future expectations and strategies, SMEs were asked whether they anticipate the closure or full transfer of their business within the next five years. In both the 2008 and 2010 surveys, a higher proportion of family businesses expected the closure or transfer of their business compared to non-family firms. In 2010, 29 per cent of family businesses (860,000 family SMEs) expected the closure or transfer of their business compared to 17 per cent of non-family businesses.
‘Of the SME family firms that applied for external finance in 2010, 76 per cent were successful compared to 68 per cent of non-family SME firms.’
Obviously, the recession did affect family firms’ survival rates. The corporate insolvency rate rose in 2009 for both family and non-family businesses. The increases are significant in proportionate terms, with the insolvency rate of small firms more than doubling to 1.6 per cent, for medium-sized firms more than tripling to 2.67 per cent, and for large firms increasing by over a factor of four to 3.23 per cent.
Although strong foundations and a commitment to future generations mean that family businesses may be more able to fight for survival, the family business sector does need government support in order to prosper in the long term. The general consensus was that government action could help give family firms access to basic support, such as market intelligence. Dr Scholes adds: ‘The ability of family firms to innovate is vital for their survival and the coherence of the family and their culture can enhance innovation and increase survival rates. Families that are too risk averse may limit innovation and have lower survival rates.’ You can read more on Dr Scholes’ work and publications on her staff profile on the Business School website at www.durham.ac.uk/business
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TAKE YOUR SEAT... Whilst the redevelopment at Mill Hill Lane is underway, alumni and friends of the School have been invited to join our ‘Take Your Seat’ campaign and sponsor a seat in one of the new lecture theatres. Some have sponsored a seat in their own name, some have commemorated their class and some have chosen to dedicate their donation to the memory of a treasured classmate. Here are just some of the reasons why people have supported the School in this way. ELAINE (YI) CHEN, CHINA Full-time MBA 1998–99
BOB BURNS (USA), GEORGE BELL (AUSTRALIA), PETER PEARSON, LIZ THORLEY, AND GEOFF LODGE (UK) MSc Management Class of 1977 At our 35-year reunion in July last year, classmate Peter Pearson referred to our ‘life-changing year’ at the Business School in 1976–77 and indeed it was. Most, in fact all of us, left with a great ‘can-do’ attitude which over the years has enabled us to succeed, and even excel, in a number of fields. Whilst the reunion provided an opportunity to remember, it also provided an opportunity to give back and for that the ‘Take Your Seat Campaign’ provided the perfect way. Some of us have already named seats for ‘The Class of 1976–77 Class Reunion’ and also in memory of our beloved classmate Con Jenkins. We hope that more of our class will join in and name a few more. This may just be the start – even now two 1976–77 graduates are talking about creating a fund to provide an annual scholarship for a local student. I would like to encourage other classes to do the same.
I do so appreciate the learning/education opportunities that the Business School gave to me back in 1998. That experience has benefited my career in a profound way, as well as having paved my future in a decent manner, both financially and psychologically. Life is treating me well, so I’m taking up my social obligation to give back. SAMUEL TEDJASUKMANA, UK MSc in Finance & Investment 2006–07 Benefiting from ‘The Dean’s Scholarship’ helped me greatly in financing my MSc degree study at DUBS. The degree has proved to be very useful in my career. Participating in this ‘Take Your Seat’ campaign is just one small way that I can give back to the School, and continue to be part of its certainly very bright future!
MARCO TULIOMATEUS, BRAZIL Global MBA 2007 After years at the head of the family business I realised that my engineering training was not enough for me to deliver a top performance. Balancing a business, a family and an MBA was always going to be a challenge. Fortunately the very helpful support and flexibility provided by both the Business School and the MBA team enabled me to complete my degree and acquire knowledge that only a high-level globally recognised MBA offers. So, my donation is my symbolic way of saying thank you. TOM MULLEN, USA Full-time MBA 2008–09 For me, the Business School provided a charmed mixture of travel, insight, and camaraderie in a beautiful location. The experience changed my outlook on what’s truly important in life and for that I am grateful. This is the reason I chose to support the ‘Take Your Seat’ campaign.
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Dear DUBS alumni, I hope you won’t mind
me interrupting a page of your magazine to intr oduce myself. In 2011, a member of staf f from DUBS came to see me in Oxford and asked degree in pharmacolog me what my bachelor y from Aberdeen Univer sity and my MBA from years after graduation. Durham meant to me ma The question took me by ny surprise because in truth, my work and family esp I committed myself to ecially after graduating from DUBS without eve in-depth thought to my r really pausing to give studies and their impact any on my entrepreneurial Eighteen months on fro successes in pharmaceutic m that meeting, howeve als. r, I have re-engaged with of ways and write to enc the School in a number ourage you to consider doing the same. Over the past year I trav elled to Durham on sev eral occasions and met faculty, and the School’s with the Dean, members leadership team. I have of been enthused by the Sch commitment to underp ool’s demonstration of in and inform its resear its ch and teaching with the skills both now and in the futu that industry is seeking, re (as well as one can pre dict!). The Dean is not only inte rested in what attributes are desirable in Durham, but in each and every con or the Square Mile, tinent of the world. An other thing that my visi is that Durham is a unique ts served to remind me university with an ability to appear far bigger an is. I recently learnt for inst institution than it actual ance that employers fro ly m around the world reg the top 20 universities glo ard Durham as being am bally for the employability ong of its graduates and tha the way nationally in uni t its sports participants versity team sports, two lead facts that I find incredibly encouraging. As well as developing its core strengths in academ ic and research excelle in its physical infrastruct nce, the School is investi ure. I encourage you to ng take a look on their web visit – it really does look site or better still to arr impressive. The busine ange to ss case for undertaking convinced me to suppor the expansion and refu t the project in the form rbishment of making a donation to myself and a few others name a room. Furtherm who I will duly name and ore, ‘shame’ as David Ellis, Bri and John Lo have establis an Robinson, Graeme Bel hed a fundraising board l to hel p identify others to sup Why? Because it’s widely port the project too. known that to produce the best graduates, a uni most gifted students, em versity needs to enrol the ploy faculty of the highes t calibre and provide infr expectations of a well-in astructure that meets the formed international stu dent cohort. The Board the build project. There doesn’t just seek help for are many other equally wor thwhile initiatives that wou our philanthropic suppor ld benefit greatly from t and I would appreciate the opportunity to disc detail. If you would like uss these with you in mo to get in touch then ple re ase contact the School’s Jason Coleman who, alo Development Executive, ng with the Dean, repres ent s the Sch the necessary arrangem ool on the Board, and he ents. will make I thank you for taking the time to read my letter and look forward to seeing the School on future visi many of you about ts back to Durham City. Bryan Morton MBA alumnus (Class of 1996) Pharmaceutical Entrep reneur.
For further details of how you can support current and prospective students, the building project, or to learn about other ways to engage with the School contact Jason Coleman, Development Executive on +44 (0)191 344 5446 or jason.coleman@durham.ac.uk.
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Dr Markku Jokisaari is a recently appointed Research Fellow at Durham University Business School specialising in organisational socialisation and working relationships. His latest work includes ‘The Role of leader-member and network relations in newcoming performance’ 2013. The focus of this piece is a review of his work on ‘Getting the right connection? The Consequences and Antecedents of Social Networks in Newcomer Socialisation’ which features in The Oxford Handbook of Organisational Socialisation.
GETTING TO KNOW YOU… When it comes to staff retention, the UK falls behind the rest of Europe and the US with employee resignations costing businesses up to £42 billion a year. So, is there a solution to keeping new recruits in the workplace? Two recent studies highlight how making use of socialisation and interaction can help us to understand the success and failure of retaining new recruits. Whether businesses are eager to maintain or even grow staff levels, it is crucial that they also consider the full costs of losing staff voluntarily. For every employee that is lost, organisations have to meet the costs of advertising, hiring and retraining as well as the expense associated with paying for overtime or temporary help. Lost productivity and recruiting and training new staff is an expensive business. Any insight into how to make that journey from newcomer to experienced employee permanent is something companies can’t afford to ignore. In The Oxford Handbook of Organisational Socialisation (The Oxford University Press), Dr Markku Jokisaari and Professor Jari-Erik Nurmi review socialisation in ‘Getting the Right Connections? The Consequences and Antecedents of Social Networks in Newcomer Socialisation’. Drawing on the learning experience of newcomers in organisations, they propose a theoretical model and disclose how interaction between newcomers and more experienced members of an organisation can sometimes mean the difference between success and failure for new recruits. And where previous studies have mainly examined newcomers’
interactions with supervisors and co-workers, the authors highlight the importance of the contribution of larger social networks within an organisation to successful socialisation. Scholars of organisational socialisation recognise that socialisation is a learning process during which newcomers face many different tasks that are critical to their success in their transition into an organisation. For example, one critical task for newcomers is to learn the skills and practices required to perform their job. This learning is then reflected in job performance. Looking at the social network approach provides a background to help understand the role of social environment in organisational socialisation – or the process through which a new employee learns to adapt to an organisational culture. By examining the social network factor, Dr Jokisaari and Professor Nurmi suggest that the influence between networks and socialisation is reciprocal: networks lead to learning, success and adjustment; this, in turn, leads to more learning and better network development.
All Onboard If socialisation is successful, it can lead to positive outcomes for new employees. Such positive outcomes include greater job satisfaction, better job performance, more organisational commitment, a reduction in stress and, ultimately, less desire to leave a job. These outcomes are particularly important to an organisation looking to retain staff. In all, it is now recognised that organisational socialisation is a process
that fosters both companies to retain their new workers and new employees to learn organisation-specific and job-specific skills and practices, and adjust to the work. Fewer future graduates will not have the option of looking at a job for life and will need to change careers often. Employees, therefore, face an increased number of job changes and related work transitions including starting a variety of new roles during their careers. And with these new roles comes the need to learn organisationand job-specific skills and practices, in addition to settling into a new organisational environment.
Hello, Goodbye However well socialisation opportunities have been presented to newcomers, it might be that some feel they just don’t fit into a new organisation. The risk of voluntary turnover is highest among new employees, showing, in part, that transition into a new job can often be unsuccessful. For example, it has been estimated that in the EU countries, about nine per cent of the employed population changed employer voluntarily during a year. Obviously, there is a need to better understand the problems associated with transitions into new organisations, and the related socialisation of new employees. Previously, scholars of organisational socialisation have argued that the interaction between newcomers and employees in an organisation is the main channel through which newcomers can learn their roles in the organisation. Dr Jokisaari’s study highlights how the supervisor of a new employee is often
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a person who typically has positional power and related resources to foster newcomer socialisation, learning and the adjustment to work. Supervisors have formal authority and power to influence the formation of new employees’ roles in their job, and their job assignments. Supervisors also play a central role in providing knowledge and feedback through which role behaviours in the job and organisation are learned. Supervisors may also have the formal authority to influence subordinates’ advancement in the organisation, such as a recommendation for promotion, or allocating new job assignments.
Newcomers’ Social Networks In other research carried out by Dr Jokisaari, ‘The Role of Leader-Member and Network Relations in Newcomers’ Role Performance’, published in the Journal of Vocational Behavior, employees were issued with questionnaires and supervisors were asked to rate the newcomer’s job performance. As part of the research, a survey, carried out in Finland, gauged new employees three months after joining their organisation. The participants were permanent employees, their previous job experience in the current occupational field was just under four years, 85 per cent were women, and the median age was 29.5 years. Participants’ occupations included engineers, marketing assistants, dentists, teachers, cooks, nurses, nurse assistants, physiotherapists and psychologists. To indicate the quality of their leader relations, the employees graded such statements as: ‘I usually know where I stand with my supervisor’; and ‘I usually know how satisfied my supervisor is with me’. In addition, the employees evaluated their social networks in the new workplace.
not interconnected, they offer more heterogeneous information and advice than persons belonging to a single group. In line with this, the characteristics of new employees’ social networks are related to their learning in the job which is reflected in job and creative performance.
Ties that Bind The social network approach also argues that network-based resources foster career success in the organisation. Through social network ties, people can obtain resources such as credentials and referrals, which may endorse their advancement in the organisation. These credentials and referrals are particularly important among new employees, since they may not yet have their own visibility in the workplace. Furthermore, job applicants and new employees seem to benefit already in the recruitment phase from their social network ties. Applicants who have a social tie to the organisation or who are recommended by a current employee in the organisation attain higher initial salaries and present more appropriate resumes compared to those applicants who do not have a social tie to the organisation. Interestingly, when a new employee is recruited through a personal relation, they are less likely to quit their job compared to employees who were recruited through formal channels such as recruitment advertising. New employees’ social networks support their adjustment to work. For example, close friendship ties in the workplace relate to organisational commitment; conversely, a peripheral position in social networks can be connected to lower job satisfaction.
The results revealed that the structure of the newcomers’ networks related to their job performance, and that their networks, characterised by strong ties, related to their work-group performance. The quality of the newcomers’ leader-member relations also had a direct relationship to their organisation member performance.
Dr Jokisaari’s studies highlight why it is important for organisations to make a robust plan for new starts when they join the ranks. These social relations will not only help foster good associations, but they will also directly impact on how successful a new employee’s transition will be into the organisation – and, in turn, how successful the organisation will be in retaining the employee after the initial settling in period.
In these studies, Dr Jokisaari also discusses ‘network density’. This concept looks at the importance of connectivity, ie the more interconnected a person’s social ties are, the higher the network density. Network research has argued that when people are
To find out more about Dr Jokisaari’s work, visit his staff profile on the School’s website.
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Q&A Business School alumna Lisa Pollack (BA Economics, 2000–04) talks about her career and life post-Durham. She is a reporter for the Financial Times’ Alphaville blog, having previously worked as an analyst at Bank of America in New York City and for financial data company, Markit in London.
Q. What is your current role? A. I’m a reporter for the Financial Times’ Alphaville blog covering financial markets and economics. As well as writing, I do a lot of behind the scenes work around the website and various project work. Q. What would you say has been the most satisfying aspect of your career so far? A. That’s tough to decide. The Alphaville blog provides me with a lot of pleasure in being able to explain complex financial topics in a digestible and fun way. Then there is the satisfying, but quite unexpected, upside of getting to meet people I admire. Only a week into my current job, I met Satyajit Das who is the author of my favourite book Traders, Guns and Money. Reading that book guided my career path. Q. What are your fondest memories of your time in Durham? A. That’s easy, Academic’s ‘Office Hours’, of course! Throughout the week, I’d build up lists of questions for my lecturers and I’d go to almost all their Office Hours. Usually they each had two hour-long drop-in sessions a week. Most of my classmates only showed up to these when there was some big assignment due in the near future. For me, those extra two hours of one-on-one tuition were priceless.
Q. Do you feel that your Durham degree and connections have helped your career? A. Until you get some real work experience under your belt, you’re going to be judged on your academic performance. Part of that is down to the marks you achieve, and part of it is the reputation of the academic institutions you attend. Having a good degree from Durham can help get you in the door, but it’s up to you to take it from there. It’s incredibly enjoyable to see some of the friends I made when at Durham succeed in their chosen career paths. There’s more to come from them for sure. Q. What is the most exciting thing you have done since graduating? A. I’m going to add ‘and terrifying’ after the ‘exciting’ part. When I first graduated (after doing an MPhil in Economic and Financial Research at Maastricht University in the Netherlands), I went to work for a bank in New York City. I left after a couple of years and at the time I thought it would take me a long time to find another job. As it turns out, I didn’t have a period of unemployment at all. I landed a job at a financial data company in London and got some time to study for the Chartered Financial Analyst
Level 2 exam before taking on the role. Sometimes scary situations turn out for the best with a combination of luck and perseverance. Q. If you were to offer some advice to current students, what would it be? A. Hard work and resourcefulness count for just as much, if not more, than natural intelligence. Don’t just study to pass an exam – that’s a very shorttermist perspective to take. Truly knowing a topic is a good habit to get into when you’re a student. Also if you don’t like what you’re doing admit that it wasn’t the right decision and try to change it today, not tomorrow. When I arrived at Durham I was convinced I wanted to read engineering as I enjoyed A-level Physics. As it transpired engineering turned out not to be for me and I switched to economics after a year. A lot of people stay in situations they know aren’t right for them, don’t be that person if you can help it. Q. What about your plans for the future? A. I am keeping an open-mind! Thus far, hard work and luck have brought me some very interesting opportunities. I don’t want to get too set in a fixed path or I might not be as willing to jump to the next challenge when the chance comes.
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WINTER GRADUATION 2013 On Friday 11 January 2013 Durham University Business School students celebrated the successful completion of their respective degrees by making their way to Palace Green, processing into Durham Cathedral and taking part in what is one of the proudest moments of a student’s University career – Congregation.
In turn each of the graduands proudly shook the hand of Professor Chris Higgins, the Vice Chancellor of Durham University, as they received their degree in recognition of their hard work. Following the formal ceremony, the Business School’s Alumni Network invited the new graduates to continue their celebrations at a drinks reception in Fisher House, Ustinov College. There presentations were made by programme directors to students who had won awards in recognition of their academic achievements.
AWARDS AND ACCOLADES MA MANAGEMENT AWARDS: Damian Grunow: Best Dissertation in MA Management Programmes BEST ACADEMIC PERFORMANCE: Maria Condrea: Human Resource Management Michael Horrocks: Financial Management Tobias Mies: Management Overall Best Academic Performance in the MA Management Programmes was awarded to Michael Horrocks.
MSC FINANCE AWARDS: Shalala Bayramova: Best Dissertation in MSc Finance Programmes Fang Zhang: Joint First Prize for the DUBS Trading Challenge (StockTrak) Jinfu Sun: Joint First Prize for the DUBS Trading Challenge (StockTrak) BEST ACADEMIC PERFORMANCE: Alexandros Zormpalas: International Banking & Finance Bastian Schrapel & Chang Liu: Finance & Investment Charlotte Braeken: Finance Eric Gusmaroli: Corporate & International Finance Jonathan Humphrey: International Money, Finance & Investment Kamil Heydarov & Meiko-Lars Schmidt: Accounting & Finance Moritz Weber: Economics & Finance Overall Best Academic Performance in the MSc Finance Programmes was awarded to Moritz Weber.
MA/MSC MARKETING AWARDS: Syeda Mariam Humayun: Best Dissertation Laura Molyneux: Best Academic Performance
MBA (FULL-TIME) AWARDS: Katharina Dolezil: Best Business Project/Dissertation (award sponsored by Alcatel-Lucent) Rebecca Walters: Best Academic Performance (award sponsored by SAGE) Weylin Poon: Best Business Project/Dissertation (award sponsored by Worshipful Company of International Bankers) BETA GAMMA SIGMA MEMBERSHIP was awarded to the following students in recognition of their academic achievement: MBA (full-time): David Pallash, Isabel Velasco Gamboa, Katharina Dolezil, Priya Swamikuttan, Rebecca Walters, Sebastian Wolfgarten & Weylin Poon Global MBA: Claas Siegmueller & Nikolay Gorgiev Global MA Management: Sebastian Schubert
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HAPPY RETIREMENT? Are you looking ahead with confidence to the day when you begin receiving your pension cheques? The subject of pensions must be one of the most boring imaginable, but one thing that is even less appealing is a long retirement lived out in grinding poverty. Yet all over the developed world, pension schemes are going through major reforms in response to a common threat. This threat is funding or, rather, the lack of it: many pension schemes face the prospect of running out of money unless something is done to increase their ingoings or reduce their outgoings, or both. In the UK, this issue manifests itself in a shift away from traditional Defined Benefit (DB) schemes (schemes in which a member’s entitlements are specified, such as final salary schemes) to Defined Contribution (DC) schemes in which the member builds up their own pension pot and gets the pension income this pot is worth. This change solves the problem of pension funds running out of money by transferring risks to the plan member, who now has to take the daunting responsibility for their own pension and run the risk of an impoverished retirement if they get this wrong. The days of generous DB pensions are over – except for those already on them or high-level public servants whose benefits are taxpayer financed. With the shift to DC, the first issue that arises is the contribution rate: how much should people save towards their pension plan? This is where the fun begins. For a start, few people appreciate the scale of the contributions needed. Most people would expect a pension in retirement equal to perhaps two thirds or three quarters of their final salary, which is the norm for people recently retiring in DB schemes. However, they imagine that can obtain such pension with impossibly low contribution rates. To give an example, if a typical man aged 25 saves, say, five per cent of his salary in a DC pension scheme over a 40-year
horizon, illustrative simulations of my PensionMetrics DC pension model suggest that he can expect a pension equal to around 21 per cent (yes, 21 per cent: this is not a typo!) of final salary. The results for women are worse – and sometimes much worse. Then you have the problem of improving life expectancy: life expectancy has been growing strongly in recent decades. Higher life expectancy might be a good thing for the people who live longer – assuming that they have a decent pension to enjoy it – but it is a bad thing for the pensions schemes that have to pay out for longer. Indeed, perhaps the biggest problem currently facing DB schemes is what is cheerfully known as the ‘toxic tail’ – the risk that granny will not die as expected in her mid to late eighties but will survive well into her nineties. This risk is potentially fatal to the pensions industry. There is also the issue of charges – the dirty secret of the pensions industry. One thing the industry is very good at is charging its clients: there are fixed charges, charges for assets-under-management, charges for periods when the individual is not contributing, charges for leaving a pension scheme and various other charges too, my favourite being ‘Total Expense Ratio’ charges which are meant to summarise all charges but often don’t. The industry is also very good at hiding charges from
Here Kevin Dowd, Professor of Finance and Economics at Durham University Business School, shares his own, personal, views on pension schemes.
members so they don’t realise how much they are actually paying. Not surprisingly, there is currently a lot of pressure on them to cut charges and make them more transparent: the Pensions Minister, Steve Webb, recently warned the industry that on the charge issue he was ‘watching them like a hawk’. The industry’s response is reminiscent of a child being dragged to the dentist. Now add in longevity risk and realistic charges, and our 25-year-old male is now looking at a pension income equal to only just over 12 per cent (!) of his final salary. One can’t help wondering why he would bother: perhaps he should take President Obama’s advice to ‘seize the day’, ie, eat, drink and be merry and forget about pensions altogether. The government’s response is to encourage people to join DC schemes by offering tax concessions and just recently, by introducing auto-enrolment, in which millions of employees without private pensions will be automatically enrolled in their employer’s pension plan unless they explicitly opt out. However, the tax concessions would seem to be pointless: a private boast within the pensions industry is that they can extract all these for themselves through cleverly designed charge regimes. As for auto-enrolment, there is a very real danger that many people least able to afford it will find themselves contributing to pension schemes that deliver little back. On balance, it is probably better to see the government’s role in pensions as part of the problem rather than the solution. Over the years, the government has periodically
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chopped and changed the system, often pulling the rug from those who had relied on previous government promises. It has also gone in for policies, which my friend, the Reuters columnist Martin Hutchinson, aptly described as policies of sadoeconomics, in which the government punishes groups it dislikes: a notorious example being the ‘euthanise the rentier’ policy of the post-war years, whose aim was to destroy the real incomes of those who lived on their savings – a policy which succeeded magnificently and pauperised many who had done the right thing and saved for their pensions in earlier years. The government has also regularly raided pension funds when it suited it (one thinks of Gordon Brown’s famous ‘pension raids’ of the late 1990s), and since 2009 the Bank of England has been undermining pensions through its Quantitative Easing policies, which are literally killing the returns that pension funds can deliver. One also has to consider the debt that the government has been issuing in vast amounts since at least the late 1990s. We are not talking here of just the ‘official’ debt – this has just passed 80 per cent of GDP and this is bad enough – but this is merely the tip of the iceberg. The unofficial debt – commitments entered into, but not provided for; think of the Private Finance Initiative, for example – is much bigger. Respectable estimates put it some between 500 per cent and 1000 per cent of UK GDP. All this represents a very big can kicked down the road for younger people to pick up. Nor should one see the state pension system as the solution. The state pension system is massively under-funded and its obligations are a major component of the unofficial government debt just mentioned. Fans of state pension schemes should also consider the fate of the Soviet state pension system, one of the glories of the Socialist System: this was very generous and promised pensions in some cases of 100 per cent of final salary. However, after the break up of the USSR the state pension systems in ex-Soviet countries collapsed and many pensioners found themselves with nothing to live on. This highlights the point that any pension system is only as good as its solvency.
So what should young people do? The conventional advice is that they should save more and plan to retire later, and there is certainly something to this. My advice is that if you choose a DC pension, go for one with low and transparent charges: PensionMetrics simulations show that charges are the key driver and will make a big difference to your pension. Don’t be fooled by industry propaganda about highcharging fancy investment strategies: these don’t work but the industry likes them because they are very profitable; in fact, they are very profitable precisely because of the high charges. You should also consider ‘out of the box’ alternatives. One I like is the ‘gold DIY pension plan’: buy gold and bury it in the garden. Another I like is the oldest pension scheme of all, the ‘DIY peasant pension plan’: save, stash your wealth where predators can’t find it and have a big family to look after you when you are old. This has been widely used for thousands of years and so presumably must have something going for it. There is no question that young people are getting a raw deal: the norm these days is that they are saddled with college debts, have difficulty landing a good job, have little realistic prospect of getting on the housing ladder until well into their thirties and face a lifetime of rising taxes to pay off all the cheques that their elders have written on them. And now we are telling them
that they don’t have any realistic prospect of a decent pension either. Not your fault, son, but if you wanted a good pension you should have been born earlier. This is a good recipe for an ugly and protracted intergenerational war – and one senses that young people are beginning to wake up. After all, why should they pay for all the benefits their elders will have enjoyed when the system they paid into won’t be there for them when they retire? Or, rather, if they retire: most won’t be able to afford it. From a pensions perspective, this is just a return to the long-run historical norm. From this perspective, a decent pension is largely a feature of the 20th century. Most people before the 20th century never got one and most people after won’t get one either.
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BOOK REVIEW Diversification Strategy: How to grow a business by diversifying successfully Dr Graham Kenny Dr Brad Atkinson (DBA 2002–06) gives his verdict on this book written by fellow alumnus, Dr Graham Kenny (MSc Management 1970–71).
For me this winter has been full of long days – given the current business environment of economic and fiscal uncertainty and working for the CFO of a large government healthcare agency in the Washington, DC area. Left unchecked cynicism thrives in this current, zero-sum environment. This was my mind set as I received a copy of Graham Kenny’s book, Diversification Strategy: How to grow a business by diversifying successfully. Dr Kenny weaves an appropriate blend of academic literature and case studies to frame an operational definition of diversification that cuts through ambiguity to establish a performance framework and to identify the common characteristics found in a panel of firms that have demonstrated excellence in the execution of a diversification strategy. Let me give you the bottom line up front: ‘Diversification Strategy’ is a good read at less than 210 pages within four parts. It is also a pragmatic book that is written in a style that sounds more like the voice of a trusted advisor than an academic researcher. Kenny provides insight related to the internal dynamics of organisational governance found in firms that have demonstrated excellence in managing diverse business units. Topics include how to balance the roles and responsibilities among a central office and diverse operational business units to provide effective governance, how to measure
performance, how to achieve an effective mix in decentralising business functions and activities to develop competitive advantage. The strategic management field has advocated diversification for decades, however in my experience of teaching strategic management to undergraduates and performing consulting engagements I have found the literature to be lacking. The result has been much discussion in academic and trade literature on assessing competitive advantage, identifying core competencies and identifying market opportunities to provide competitive advantage but little guidance in the matters of building and governing organisations to execute that strategy. Admittedly, the literature created the concept of the celebrity CEO – a fragile conceit that often did not disentangle the personality from the action, again falling short of tactical guidance. Importantly, while Kenny does employ a panel of case study diversification exemplars, his book is not a hagiography of the chief executives in those firms. In fact, in one chapter Kenny makes a strong case that frames the history of a certain celebrity CEO in an eye-opening reassessment of his performance. Kenny does take from his cases the facts and fundamentals of past performance to provide compelling guidance on how to achieve the characteristics necessary
to create value. For example, part two of the book is essentially a work plan on how to navigate the art and science of implementing strategy to align your organisation’s architecture and governance successfully. Part of Kenny’s thesis is the need to open the mind to the meaning of diversification, to break some probably long held axioms, and to transform your operational thinking. Interestingly, his discussions of governance and the role of common core functions would benefit any organisation in finding efficiencies, not just organisations with diverse business units. In writing this book, Graham Kenny has made the process of navigating the transformational paths necessary to implement effective corporate and business unit strategy easier for those readers who are willing to take the first steps of that journey with him.
Competition Time! To win a copy of the book answer the following question: Who is the investor and CEO nicknamed ‘The Oracle of Omaha’? Email your answer along with your name, address and course of study to business.alumni@durham.ac.uk
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DUBSIC (China) Sharing the Knowledge The School’s first international committee – DUBSIC – was launched last year in China. With ten alumni members, DUBSIC’s mission is to advance the School’s strategic objectives in China. There are many items under discussion, but one that was tabled at the second meeting in December has already gained momentum. Following on from the Leading Edge Career workshops held in Shanghai, Beijing and Hong Kong, where recent graduates were given the opportunity to meet companies who were recruiting across various sectors, DUBSIC members felt that more could be done on an on-going basis to help support
recent graduates and improve their employability prospects. With this aim in mind, a quarterly ‘Alumni Career Expert Panel’ with experienced alumni discussing topical business issues for the benefit of recent graduates has been introduced.
extremely encouraging. With 35 Durham alumni in attendance, as well as a small number of friends from other UK Universities, indications are that delegates are already eager to sign up for the next event planned for 15 June.
The first of these expert panels, which focused on the theme of Digital Marketing, took place on 9 March in the Xin Tian Di area of Shanghai. DUBSIC members sourced the venue, identified appropriate panellists, and planned delivery of the entire session. Panel members with experience from across different sectors, shared their insight and participated in a Question & Answer session before chairing smaller round table discussions on real-life business cases. Feedback has been
You can see from the photographs below how interactive and engaging the session proved to be. I would like to thank everyone involved in arranging the event, but special thanks must go to the masterminds behind the idea, DUBSIC members, Ocean Wang and Lana Savanovich. If you would like to learn more about DUBSIC and the School’s activities in China, please join the Linkedin Group ‘DUBS China’ or the Weibo account run by alumni ‘ DurhamAlumni’.
www.durham.ac.uk/business/alumni
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WHAT’S YOUR NEXT MOVE? Log on to www.durham.ac.uk/business/alumni and click on the Career Gateway/Resources/Video Library
For more information contact the DUBS Alumni Relations Team on +44 (0)191 3345 277 or via business.alumni@durham.ac.uk
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introducing...... Dr Emmanuel Adegbite, Lecturer in Accounting Emmanuel Adegbite joined the Business School in September 2012 as a Lecturer in Accounting. Researching, teaching and consulting in the broad area of Accounting and Corporate Governance, his work has been published across a wide range of peer-reviewed academic journals such as the Journal of Business Ethics and International Business Review. His work also appears in books by leading publishers such as Palgrave MacMillan and Cambridge University Press. His current and future research interests are focused on the governance and responsibility of the modern corporation – a fast-growing area in business management literature – and he is willing to supervise doctoral students who are broadly interested in these areas. Emmanuel recently presented at a Durham University alumni event in Lagos, Nigeria.
What are the most challenging parts of your job? Balancing multiple commitments ranging from teaching and research related activities to fulfilling my administrative duties is a challenge. Academics typically don’t have a nineto-five job; it’s more like a job that never ends unless you choose to pause for a bit. What do you want to achieve? I aspire to deliver high quality learning experiences for all my students through research-led education. I also get great satisfaction from helping organisations, even countries; improve their governance practices for the benefits of all of their stakeholders. What drives you? Excellence! Being an academic is challenging but very inspiring. Watching students develop in their learning is extremely motivating. Seeing the usefulness of your own research, adding it to a body of knowledge, practice and policy provides a great ‘feel good factor’.
What was the best career advice you were given? To publish! What advice would you offer to someone thinking of an academic career? Listen and learn… I would recommend talking to an academic you aspire to be like. Given time, this should provide you with an insight of what it is like to work in academia and help you discover if it’s really what you want to do. What are you currently working on at Durham University Business School? Presently I am teaching an undergraduate Business Accounting and Finance module and a postgraduate Financial Statement Analysis module, as well as working on my current research which relates to corporate governance and responsibility in weak institutional contexts.
You can read more about Dr Adegbite’s work and interests on the Academic Faculty section of the Business School website: www.durham.ac.uk/business
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CLASS NOTES JOHNNY CHOY MSc MANAGEMENT 1978–79
DUMISANI MSIBI MBA (FULL-TIME) 2000–01
DR ELIAS GHANTOUS PhD IN ECONOMICS 1973–80
Late last year Johnny was awarded Queen Elizabeth’s Diamond Jubilee medal for significant contribution to Canadian society. Since immigrating to Canada 30 years ago he has been active in his community through volunteer work with non-profit organisations. His involvement has included: fundraising for charities, youth leadership training, healthcare, education, community policing, and family services. Despite family commitments and the demands of being a corporate executive, he has given freely not only his time but also his professional skills and financial resources to many non-profit organisations.
Dumisani has been appointed Group Managing Director at Swaziland Development Finance Corporation (FINCORP), one of the leading development financial institutions in Swaziland. His primary role is to provide strategic leadership for the entire organisation. Prior to this he was Deputy MD for the organisation. Dumisani currently also serves as the Chairman of the Board of the Youth Enterprise Fund as well as being a Board Member of the Federation of Swazi Employers and Chamber of Commerce (FSE & CC) and a Board Member of the Swaziland Enterprise & Entrepreneurship Program (SWEEP).
Dr Elias Ghantous will be 75-years-old this year and is enjoying life in Beirut with his wife Leila. The couple married in 1965 and are looking forward to celebrating their 50th wedding anniversary in 2015. It was in 1973 that Dr Ghantous secured a scholarship from the British Council to study at the Business School, where he earned a PhD in Economics. In 2006 he was awarded the Medal of Lebanese Merit (Ordre du Chevalier) by the President of the Republic, in recognition of his services to Lebanon. He currently works as an Economic Advisor to the State Minister.
LIZ SCOTT MBA (EXECUTIVE) 2001–03 Earlier this year Liz gave birth to Francesca (pictured), who is now four months old. Liz is now starting to dip back in to her work with Rainbows End Coaching Limited where she holds the position of Director.
OCEAN WANG MBA (FULL-TIME) 2008–09 Ocean Wang was married on 27 April 2013 in Shanghai. He met his wife, Jessie, at a Korn/Ferry Coaching Certification Course and, last November, Marie Claire magazine featured an interview with the couple about their love story which was published as the cover story in the January 2013 China edition.
CONRADO GONZÁLEZ VERA MBA (FULL-TIME) 2005–06 After graduating with his MBA in 2006 Conrado González Vera moved back to his home country of Mexico where, in 2011, he was appointed the position of Rector of the Universidad de La Ciénega del Estado de Michoacán de Ocampo. Conrado married Nallely on 18 August 2012 and they are delighted to announce that they are expecting their first child. He’d like to encourage fellow alumni to keep in touch, either via Facebook or at conrad4u@hotmail.com
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GEMMA PAN MA MANAGEMENT 2002–05
ALEXANDRA MELNIKOVA MSc FINANCE & INVESTMENT 2004–05
EJINE OLGA NZERIBE MBA 2000–01
Congratulations to Gemma Pan on the birth of her baby boy Ty Alexander McCaffrey (pictured). Ty arrived on Friday 22 February 2013 at 9:18pm; weighing 8lbs 14oz. Gemma and her husband are currently living in the US and are looking forward to bringing Ty to Durham on his first holiday this summer. Gemma was the main contact for the Shanghai Local Association and is still very much active in the network, therefore well known by many of you.
We are delighted to be sending ‘double’ congratulations to Alexandra Melnikova on the birth of twins – Varvara and Boris (pictured). The adorable pair was born on Tuesday 22 May 2012.
Last October Red Star Express Nigeria, an affiliate of FedEx USA, launched an entrepreneurial book entitled Inspiring Growth – The History of Red Star Express written by DUBS alumnus Ejine Olga Nzeribe. The book was a part of Red Star Express Nigeria’s 20th anniversary celebrations and delivers some hardlearned lessons that business people will benefit from, draws out salient points in growing a business and showcases a significant success story in the Nigerian business world.
STEVE CROMPTON BA BUSINESS ADMINISTRATION 2009–12 When Steve completed his dissertation on enterprise social networks last year, there was little academic research available and the enterprise social landscape is still being carved out by academics today. Since then his dissertation has evolved in to a white paper being used by Enterprise Strategies and Steve has now landed a job at Yammer (recently acquired by Microsoft). He is now part of the Customer Success Team ensuring that businesses are realising the value of enterprise social and uses many of the change management techniques taught during his time at Durham.
GABRIELA CASTRO-FONTOURA BA ECONOMICS 1999–02 Gabriela has published an e-book with Enterprise Nation titled Doing Business with Latin America, which she would like ‘to be a first point of call for UK exporters interested in these fascinating markets, from Brazil to Chile, from Mexico to Argentina and beyond’. Gabriela stresses that ‘the book doesn’t have all the answers, but it does have some great questions, expert advice and case studies’. The e-book is available at www.enterprisenation.com/shop/ doingbusinesswithlatinamerica
JOHN HOOD GLOBAL MBA 1999–05 John Hood and his wife Paola are thrilled to announce the arrival, last November, of baby John Paul. Having married in May 2011 in Paola’s native Mexico, they tied the knot again in December 2011 in Melbourne Australia, where they currently live.
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1. Liz Scott 2. Dumisani Msibi 3. Ocean Wang 4. Dr Elias Ghantous 5. Conrado González Vera 6. Gemma Pan 7. Alexandra Melnikova
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local association news DUBS Alumni Global Network
Curtis Moore (President of the Association), Senator Kerryann Ifill, His Excellency Paul Brummell (the British High Commissioner), Mrs Brummell, Sophia Sam (alumni committee member) and Dr Grenville Phillips (Co-Director of CariMEC).
CARIBBEAN The Durham Caribbean MBA Alumni Association held its annual dinner at the Barbados Yacht Club on Saturday 16 November 2012. The focus of the event was the celebration of 10 years of Durham University offering its MBA in the Caribbean via its association with CariMEC and the recruitment of the partnership’s 200th student. The event began with a cocktail reception which was followed by addresses made by the President of the Association,
ERNST & YOUNG PRIZE FOR TOP STUDENT – Richard Black Presented by Mr Rendra Gopee, Partner at Ernst & Young.
Mr Curtis Moore; the British High Commissioner, His Excellency Mr Paul Brummell; Dr Graham Dietz, on behalf of Durham University Business School; and the CEO of CariMEC, Dr Christina Parkinson. The keynote speaker was Her Honour Senator Kerryann Ifill, President of the Senate and an alumnus of the Durham Caribbean MBA.
Blind as well as money for the development of the Caribbean Alumni Association. Prizes were donated by many large organisations in Barbados. The evening was a huge success and well attended by 75 alumni, students and guests. The main photo (above) shows those guests still celebrating at the close of the event.
A magnificent buffet dinner followed, and then music and dancing. The event also included a raffle which raised $500 for the National United Society for the
DEAN’S PRIZE FOR BEST DISSERTATION & PHILLIPS ASSOCIATION PRIZE FOR BEST PERFORMANCE – Rosanne Trotman Presented by Dr Grenville Phillips.
CARIMEC PRIZE FOR MOST CONTRIBUTED TO THE PROGRAMME – Christian Paul Presented by Dr Christina Parkinson, the CEO of CariMEC.
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The event forms part of a global series of Leading Edge Career Workshops designed to aid recent graduates in their postDurham employment journey. With an active and committed alumni community in India, further activities are planned in 2013 including a D8 event with Durham University Business School Deputy Dean Professor Geoff Moore on the topic ‘Corporate Social Responsibility Matters’.
FRANKFURT
SRI LANKA
Dr Christos Tsinopoulos led our first D8 event in Frankfurt, Germany with his topic ‘Supply Chain: How well do your customers and suppliers know your products?’ The event was well attended by both alumni and current students including 23 full-time MBA students who attended the event as part of their International Study Week visit. Alumni valued the opportunity to attend such a Masterclass and reminisced as they spoke of the happy memories made during their time studying at the School.
On Friday 22 March Durham University Business School held a gathering of MBA students, prospective students, alumni and corporate guests at the stunning Mount Lavinia Hotel. The British Colonial heritage hotel, located in a breath-taking beachfront location close to the Sri Lankan capital city Colombo, provided the perfect venue for our D8 event. The evening, led by Professor Sue Miller, was themed on the topic ‘Strategy Success: Getting Decisions to Work’ and received very positive feedback from attendees on its interesting topic and speaker.
MUMBAI Alumni and prospective students gathered in Mumbai on Wednesday 20 March for the most recent Alumni Leading Edge Career Workshop hosted by Business School Career Consultant, Fiona Ward.
GENEVA As part of our D8 series Dr Graham Dietz delivered a workshop to 36 students, staff and alumni in Geneva entitled ‘Trust in Uncertain Times’. Dr Dietz’s interactive presentation entertained those in attendance focusing on how trust is built, enhanced and sustained among colleagues and between leaders and their followers. Feedback from local alumni was very positive with Christal Adamou stating, ‘It was just brilliant, many thanks to Dr Dietz for his excellent and entertaining presentation. I was also grateful for meeting current and former Durham peers on this occasion. Please come back again’.
The session started with a lively panel discussion led by corporate guests and senior alumni who gave their perspective on the Indian labour market and current recruitment outlook within their respective firms. Guests benefited from insights into companies such as HSBC, Ernst & Young and Whiz MBA and shared their own experiences of strategies for differentiation in today’s competitive marketplace. The interactive workshop which followed focused on giving alumni the tools to identify career values, set appropriate career goals and create strategies to achieve these goals. Senior alumni shared their experiences with more recent graduates.
6 June 2013 Local Associations are the perfect way to keep in touch with other Durham University Business School alumni in your area. The next Global Get-together date is 6 June 2013. As usual this is just a guide. If it is more convenient for your group to meet at another date and time please do so. If you are interested in joining these or any other groups throughout the world – in your location or perhaps in a business area you frequent – please email us and we will put you in touch with a Local Association Leader. Alternatively, if there is not yet a Local Association in your area, contact the Alumni Relations Team and we can investigate setting one up.
We look forward to hearing about your events and receiving photographs. If you require any help in arranging a get-together please do get in touch.
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DATES FOR THE DIARY EVENTS
RECRUITMENT EVENTS
ALUMNI GLOBAL GET TOGETHER
QS WORLD MBA TOUR Dubai – Friday 17 May 2013
Thursday 6 June 2013
ACCESS MBA FAIRS D8 BEIJING Ian Whitfield Financial Markets
New York, USA – Wednesday 22 May 2013
Thursday 13 June 2013
SHANGHAI ALUMNI PANEL Saturday 15 June 2013
PREVIEW/ OPEN EVENTS
D8 LONDON Dr Mike Nicholson Crisis Management
DURHAM UNIVERSITY BUSINESS SCHOOL MBA OPEN EVENT
Thursday 11 July 2013
Ushaw College, Durham, UK Thursday 23 May 2013 Friday 28 June 2013 Monday 29 July 2013
D8 MUMBAI Professor Geoff Moore Corporate Social Responsibility Matters Wednesday 24 July 2013
D8 DELHI Professor Geoff Moore Corporate Social Responsibility Matters Friday 26 July 2013
D8 & LEADING EDGE CAREER WORKSHOPS IN NORTH AMERICA Autumn 2013 (cities and dates TBC)
For a list of preview and open events, please visit the Business School website at www.durham.ac.uk/dbs/degrees/ mba/ft/events Please note that some dates, speakers and venues are provisional or yet to be confirmed.
WOULD YOU LIKE TO HELP PROMOTE DURHAM UNIVERSITY BUSINESS SCHOOL? We regularly attend recruitment events around the world and love it when we are joined by alumni. Not only does it give us the chance to catch up with you, but prospective students really value the opportunity to speak with our graduates. If you would like to volunteer to help at such an event in your country we would like to hear from you.
FOR FURTHER INFORMATION To book places for these events, contact the Alumni Relations Team on: E: business.alumni@durham.ac.uk T: +44 (0)191 334 5277
NEWS
DUBS
ALUMNI
Alumni Relations Team Alexandra McNinch (nee Sedgwick), Alumni Relations Manager Katharine Aspey, Alumni Coordinator Durham University Business School Alumni Relations Team Ushaw College Durham DH7 9RH UK t: +44 (0)191 334 5277 f: +44 (0)191 334 5218 e: business.alumni@durham.ac.uk UK DUBS Alumni Network Local Associations Northern (based in Durham) Southern (based in London) International Local Associations Jordan Canada Malaysia Caribbean Mexico China, Beijing New Zealand China, Shanghai Nigeria Denmark Norway Egypt Pakistan Germany Russia Ghana Singapore Gibraltar South Africa Greece South America Hong Kong Switzerland Hungary Turkey India United Arab Emirates Indonesia United States of America Japan To be put in contact with other alumni in your area, please contact the Alumni Relations Team.
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