3. 3
message from the acting dean 3
It is a great privilege to now be in post as advocates and leaders) and in developing our strategic international
Acting Dean of WBS, as we say farewell to partnerships. This will not only sustain WBS, but also advance our
Howard Thomas and undertake a rigorous standing in Europe and consequently make us a more serious global
recruitment process for a permanent Dean. contender.
To ensure WBS drives ahead its vision and
mission to be firmly positioned with the 3 Research excellence
top European business schools by 2015, we We need to prepare as never before for the next Research Excellence
cannot afford to rest on our laurels. As such, Framework (REF). Although the criteria and metrics for assessing
Professor Nigel Thrift, Vice-Chancellor, has asked me to remain in post research excellence have yet to be clarified, there is little doubt that
for a year if required. I shall also ensure there is a smooth handover to exercise will focus on the quality of publications, number of research
the new Dean so that he or she does not start the job on day one with grants, number of PhDs and completion rates as well as that slightly
the disadvantage of no or little contextual understanding of the School. elusive 'impact' factor (yet to be properly defined). It is certain that
I have offered to spend a few weeks helping and advising the new our competitor schools will be similarly gearing up and preparing
appointment as necessary. for the REF which is currently scheduled to take place in 2012/2013.
I look forward to working with our Associate Dean for Research,
Over the year ahead I have identified three main challenges but also, and you all to ensure that we have the strongest possible return of
of course, opportunities that we need to deliver on as we drive ahead excellent research activities.
to 2015:
If we can advance in these areas, we are sure to overtake our
1 Global relevance and accessibility competitors and to bring advanced relevance and value, not only to
We need to demonstrate more fully our influence upon the world of our existing community of alumni, friends, donors and associates,
practice and policy. We also need to communicate effectively how but to a growing one. Working closely with Deputy Deans Professor
our research is listened to and acted upon, across industries. It is Bob Johnston and Professor Simon Collinson, with the scrutiny
our responsibility in an uncertain world to be working alongside and and guidance of our advisory boards and alumni volunteers, not to
advising governments, executives, board members and managers to mention our corporate and institutional partners, and with
help solve global issues. These global challenges include (inter alia) Ben Plummer-Powell and our development and alumni relations
organisational resilience to extreme events; the use of knowledge and team, we can succeed despite the challenges. As my late friend, Peter
creativity in innovation; service transformation; leadership, governance Doyle often reflected, 'success builds success'. This is, therefore, not
and the economic and social impact of an ageing population; and, of a time to put the brakes on, but to accelerate and to build upon our
course, sustainable energy – a most fitting focus for this edition of legacy. With your help, I know we will achieve our goals.
nexus.
Thank you to you all for your support over the years and I hope to
2 Partnerships and investment continue to meet and work with as many of you as possible in 2010.
Undoubtedly there will be further cuts from the UK government to
higher education. By demonstrating relevance and value through our
research and teaching, we need to command greater corporate and
individual financial support to ensure we can continue to invest in
our faculty appointments, in the most talented students (our future Professor David Wilson
contents 12 26 17
In this edition of nexus we focus on global energy
4/5 Development and alumni relations office/Alumni board
6–9 WBS news
10/11 The challenge of energy:
David Elmes, Professor Richard Higgott, Dr Gill Owen
12 Competitive markets and the home of the future:
Ian Peters
13 Making the UK a world leader in CCS technology:
Nick Horler
14 A 'more electric' automotive landscape: Henri Winand
7 13
15 Working in wind: Lars Landberg
16 What next with the oil and gas sector? Paul Nicholson
17 The low carbon society: Professor Andrew Sentance
18 WBS development programme
19 personal and career development
20 Warwick Global Conference: India report
21-24 Overseas and UK networks – news and event reviews
25 Hot off the press
26/27 Alumni news and appointments
4. 44 nexus: spring 2010
the development and alumni relations office and alumni board
If we were asked to reflect on 2009 has been a challenging but
2009, most of us would probably highly successful year for your
recall the same thoughts: a year Alumni Board and we are sure that
of financial turmoil, of failing 2010 will present even greater
banks and immense challenges for challenges, as we seek to establish
businesses – a period of instability an ever increasing presence in
and uncertainty for most of us. many regions and professional
sectors across the world.
As an alumnus of WBS, we hope
and believe you have been better Our Board priorities for 2010 will
equipped to face these hurdles focus on four main areas:
head on and to make the best
of them. Throughout such tough H Communication: including
times, our alumni have shone further developments to our
through, achieving promotions, new alumni web site to enable
establishing successful start-ups peer-to-peer interaction and
and receiving business accolades greater access to research and
and awards. You can find details information
of these achievements in the H Enhancing the alumni offering:
following pages. moving towards a framework of
additional tailored services
Times of crisis offer us a tremendous opportunity. As an individual, or H International development: a key area of our activity as we seek to
as an organisation, they encourage us to reflect on our core values, to support the development of new networks and activities across a wider
re-focus and re-prioritise, to connect and re-connect with those important range of countries
to us and to prepare robustly for the time ahead. They also demonstrate H Student engagement: working with alumni to develop relationships
our need to put the foot on the gas, not to ease off – as Acting Dean David with each and every current student cohort to enhance graduation
Wilson has demonstrated. activities.
Your School and your Alumni Association could never be more relevant There were changes within your Board during 2009, not least of which
– as you seek to broaden your professional networks, extend your was Gill Thewlis’ decision to step down as Chair. I would like to express my
knowledge and support your career path, we are driving ahead the thanks to Gill and other Board members who, individually, have all made
services we offer to you. We have had an unprecedented increase in our significant contributions during their time on the Board.
global events, international groups, professional groups and mentors, and
we were overwhelmed by the number of applicants we received to join The induction of our new Board members is underway and following
our Alumni Board. our Board Retreat in January, we are developing action plans for the
forthcoming year, building on our understanding of what you need and
In 2010 we shall continue to work with you to ensure that we deliver want from your Alumni Association. We trust you will continue to connect,
a relevant and world-class service, driven and supported by our key learn and develop with us in 2010.
alumni advocates. Ongoing access to knowledge and research and an
unparalleled professional network will form the basis of this service. Nick Jessett (EMBA 1985–89)
Chair of the WBS Alumni Board
Finally, my thanks to all of our alumni and friends who are working so hard
to deliver even more value to our Association and to our School. Even in a thank you to previous board members
challenging economic environment we have more donors and donations
than ever before. Together we are making a tremendous difference – we From top left:
look forward to working with you further in 2010.
Gill Thewlis
Alison Bond Ananda Roy
Deputy Director, Development and Alumni Relations Mark Whitley
David Sykes
Jemima Bird
some key dates for 2010 Karamjit Singh
Saturday 19 June : Academic Update seminar Janet White
Kate Spencer
Friday 12 November: Entrepreneurship event
Paul Edwards
Saturday 13 November: Warwick Global Conference : Warwick
Simon Peatfield
W www.wbs.ac.uk/alumni/events.cfm John McGee
Usman Adam
5. 55
your new alumni board members
Cristiano Coppola Tanya Sammut Bonnici
(FTMBA 2007–08) (PhD 1999–2004)
European Client Relationship Manager, Lecturer, University of Malta
Unipart Logistics
Through the Alumni Board, I wish to contribute
I have joined the WBS alumni board primarily to to the development of a portfolio of services that
raise the profile and image of the School among add value to the professions of alumni across
the alumni and the general public. the globe, and which increase the significance of
being part of the WBS Alumni Association.
Julia Evans Matt Stocker
(MMBA 1995–2000) (BSc Management Sciences 2001–04)
Chief Executive, National Federation of Builders Director, Matt Stocker Ltd
The Board demonstrates the WBS commitment Having benefited greatly from my own
to engaging with and listening to its alumni in a involvement with the WBS Alumni Association,
very meaningful and constructive way. It makes I am excited by this opportunity to be part of
sense for any business to listen to is customers developing the Association and extending these
and this is one of the ways WBS does this. benefits to other alumni.
I want to be part of this 'big' conversation!
Andrew Fletcher Alison Watts
(FTMBA 1990–91) (MMBA 2001–08)
Owner & Managing Director, Icendris Ltd
I have benefited greatly from the work of the
Alumni Association and want to ‘give something As MD of a management training company, I am
back’. A senior, experienced leader, I offer passionate about people development. I hope
commercial and client relationship skills and a to support the Board's engagement strategy by
strong international interest. further developing the Continuous Professional
Development offering.
Richard Owen Hilary Robertson
(DLMBA 1986–91) (DLMBA 1989–97)
Director, Holland House Associates Ltd BPO Strategy Director, Steria
I get a lot out of my WBS alumni activity and I aim to bring experience of working with
hope to use my skills and experience to help teams from the emerging economies with their
increase the benefit of engaging with WBS to appetite for continuous development to help us
alumni generally. harness all the talent in our alumni network.
Navdeep Athwal Ronan Morrissey
Current student, MSc Marketing & Strategy Current student, Warwick MBA by full-time
Class of 2009 study, class of 2009
As an Alumni Board member I will act as an I wish to advise current students what can be
ambassador for WBS and thereby contribute to gained from developing a relationship with the
its continued success across the world. I will be Alumni Board and also to bring students’ ideas
looking at new ways of reconnecting the alumni to the Board’s attention.
and students.
Jon Lees
For more information about the key role of the WBS Alumni Board
w www.wbs.ac.uk/alumni/theboards.cfm
As both the new Executive Director of the
Warwick MBA and as an alumnus of the Link with us on LinkedIn
programme (EMBA 2002–06), I am delighted
to have joined the Alumni Board. I hope this Join us on Facebook
will enable me to maintain and improve the
Follow us on Twitter
relationship between the MBA and its alumni
community. Links to all the groups can be found at w www.wbs.ac.uk/alumni
6. 6 nexus: spring 2010 WBS news
awards and achievements
for staff... WBS faculty influence public sector policy-
One of the most sought-after and makers and executives
coveted international awards for
academic faculty working in the field Professors John Benington and Jean Hartley of the Governance & Public
of management is the annual Best Management Group co-authored a paper, commissioned by the National
Article Award given by the academic School of Government and the Public Service Leaders Alliance, setting
journal, Academy of Management out the parameters to promote and cultivate leadership capability across
Review. The US-based journal is one the public service. This paper achieved strong media coverage, both in
of the top two academic journals in national and international print and online news media, and across the
all of management, by citations and range of public sector media outlets.
on most other measures. Michael
Mol, Associate Professor of Strategic Minister for Local Government, Dr Brian Gibbons, announced the
Management, was announced membership of the Welsh Anglesey Recovery Board, including Dr Zoë
the 2008 winner for the article Radnor, Associate Professor (Reader), Operations Management.
Management Innovation, jointly-
authored with Julian Birkinshaw A new Ipsos MORI report highlighted the major contribution made by the
and Gary Hamel of London Business Michael Mol WBS Postgraduate Diploma in Local Government Management (PDLGM)
School. Previous winners include to the intellectual and professional development of graduate trainee
renowned academics from schools such as Harvard, Wharton and managers in the local government sector.
Columbia. The article brings to the forefront the need for organisations to
be innovative in their management practices, as much as they are in their
products and business processes.
Much to her surprise and delight,
and with some embarrassment, both
awards at the 18th annual IPSERA
(International Purchasing and Supply
Education and Research Association)
conference were won by Helen
Walker, Associate Professor at WBS Undergraduate student prize winners
in the Operations Management surrounded by UBS presenters and WBS faculty
Group.
Helen Walker Congratulations to Juergen Branke
Our Dean Professor Howard Thomas attended his farewell lunch, held at
of the Operational Research &
WBS, on Monday 21 December. He received a camera and camera holder,
Management Sciences Group and Qing Wang of the Marketing & Strategic
and to reflect his love of the sport of rugby and his Welsh nationality,
Management Group, both have been through the University's promotion
a Welsh rugby shirt and Welsh rugby football signed by many WBS
panels and are promoted to full Professor. Zoë Radnor of the Operations
colleagues.
Management Group was promoted to Associate Professor (Reader) earlier
this year.
Howard officially left at the end of January, to take up the role of
Distinguished Professor of Strategic Management and Dean of the Lee
In addition, Scott Dacko, Amanda Goodall, Loizos Heracleous, Keith Grint,
Kong Chian School of Business at Singapore Management University. He
Bob Johnston, Michael Mol – again!, Howard Thomas, Qing Wang, and
has been made a WBS Emeritus Professor.
David Wilson have all received recent and varied acknowledgements or
prizes for their research and publications.
for WBS …
Warwick Business School has been
fully reaccredited by the Association
of MBAs (AMBA). The AMBA report
confirmed that all our efforts to
develop and improve our offering
and services have been successful and AMBA’s recommendations were
positive.
In the rankings, we have again risen in the annual WhichMBA Guide, now
branded as The Economist's ranking. WBS is now 22nd in the world, a rise
of 9 places in 3 years. Professor Howard Thomas (centre) with colleagues
David Wilson and John McGee at his farewell lunch
7. WBS news nexus: spring 2010 7
programme news
WBS with Cardiff and Manchester Business Schools – all top tier Undertaking their Practice of Management module, five MBA students at
university-based business schools – signed up to work collaboratively WBS worked with the international peace building organisation CORD to
on the Undergraduate Partnership Programme (UPP), developed by help develop their social networking programme. CORD, based close to
The Institute of Chartered Accountants in England and Wales (ICAEW). campus in the nearby town of Leamington Spa, has worked in the post-
The UPP is designed to offer undergraduate students of accounting conflict field for 42 years in 26 major conflict zones. 'Communications and
and finance the opportunity to gain work experience in a professional the world of new media are vital components of CORD's operation, and
accountancy firm or similar business environment as part of their degree. offer huge potential to engage with more people in the work of building
Dr Raymond Madden, Executive Director of Learning & Professional peace,' commented CORD’s Chief Executive Brian Wakley.
Development at ICAEW, commented, ‘As we have seen so starkly, nobody
is immune from the current economic climate and this initiative will help
provide students with invaluable support to help them gain employment
or further their education.’
An alternative way of studying for the MSc in Management – by blended
learning – was launched in August with a start date of April 2010. This
Masters course by full-time study took its first intake in 2006. WBS is
an established leader in the provision of distance and blended learning
programmes and is recognised as an innovator in online learning. The
blended learning format will be taught by intelligent use of current
technology, including the highly popular and successful wbsLive. wbsLive
is a virtual classroom environment which offers audio, video, application
sharing and content display to anyone with a computer and an internet
connection. Using this system students will interact with the lecturer via
text or voice in real time, carry out group work in online breakout rooms
and present findings and make presentations live to other colleagues
online. It will therefore build upon the tried and tested techniques of
MBA students help CORD on Practice of Management module
blended learning, enabling candidates to continue studying while already
in employment or looking for work, during a career break, or even on
vacation.
Deloitte, the business advisory firm, is pioneering a new initiative
from global conference to local
with WBS to bring a real life systems integration consulting project to entrepreneurship pilot
postgraduate students. MSc students on our Information Systems and
Management course begin their academic year with a module designed The Warwick Global Conference
jointly by Deloitte consultants and Warwick academics. series aims to provide an
opportunity for global business
The first cohort of the Warwick Diploma in Service Leadership, taught and political leaders, policy makers,
by WBS faculty in Singapore at the prestigious Singapore Institute of and academics to examine some
Management, has recently graduated with a record 100 per cent success of the most critical issues affecting
rate. The third cohort of over 30 participants commenced study in July. business, economic and social
growth. New Delhi was chosen to
launch the Warwick Conference
Series on Saturday 14 November
2009 and thanks to the sponsors, speakers and all attendees, the event
was a great success. The WBS Development & Alumni Relations Office
(DARO) and alumni took the opportunity to host several networking
events in India before the conference. See the full report on P20.
Business Link West Midlands announced a high profile ‘Business
Transformation’ pilot in collaboration with WBS to support sustainable
high growth and business transformation of small and medium-sized
Warwick Diploma in Service Leadership graduates enterprises (SMEs) with high growth potential across the West Midlands.
‘This is an exciting initiative which will undoubtedly help hard-working
Donations by Warwick Business School's ‘Friends of WBS’ have led to and potentially successful entrepreneurs. The resulting growth of the
two awards being offered for MBA applicants in 2010 who suffer with participating firms will be of benefit to the West Midlands as a whole, and
long-term disabilities. One totalling £2,500 is for Distance Learning MBA provide relevant, targeted and practical support to businesses which need
applicants, and the other – a £10,200 scholarship for a Full-time MBA this kind of assistance in the current challenging times,’ said Professor
participant with a long-term disability or with a dependent child or Roger Mumby-Croft of the Enterprise Hub at WBS.
partner with a long-term disability.
There is more news we do not have room to report in full – honours for our Honorary Professors, the annual Warwick Finance conference in London,
Cornell-Warwick doctoral conference, MBA sailing reports, wbsLive goes live, to name but a few. See all our news at w www.wbs.ac.uk/news
8. 8 nexus: spring 2010 research review
A study by Dr Julia The Local Government
Kotlarsky, ISM, acts Centre celebrated
on evidence that its 21st anniversary
Europe's CFOs and in autumn 2009,
CIOs need help having contributed
to communicate significantly to the
the full return on School's profile and
investment from ongoing research
Julia Kotlarsky Gill Owen Xavier Lemaire Howard Davis
outsourced business effort. The Centre has
arrangements. Results of research by Cognizant Dr Gill Owen and Dr Xavier Lemaire, CMuR, recently been awarded a new research contract
in conjunction with WBS, carried out among undertake research on sustainable energy from the Department for Environment, Food
CIOs and CFOs across the UK, Germany, policy in developed and developing countries. and Rural Affairs (Defra) for work on Costs and
Switzerland, Benelux, France and the Nordics, Over the past three years they have been efficiency savings to local authorities from new
highlight how business leaders are not getting producing reviews of policy and regulation as roles and responsibilities arising from the Flood
to grips with measuring the full financial impact it affects sustainable energy in a number of and Water Management Bill. This will be led
of the outsourcing contracts they commission. regions of the world, with a particular focus on by Howard Davis, Acting Director, and Katrina
‘A combination of proven methodology, developing countries. Regions covered include: Ritters.
industry expertise, and tight integration of Latin America; Eastern, Central and Southern
business strategy into outsourcing objectives to Africa; Central and Eastern Europe. Their most Commissioned by the Institute of Customer
effectively measure, improve and communicate recent review covered India – both at federal Service, an LGC research report entitled It’s
outsourcing's true impact is required to ensure level and a state by state analysis. They are a culture thing – The challenge of change –
outsourcing delivers on its promises,’ confirmed currently working on a similar review for China customer service in local government, examining
Julia. and the Chinese provinces. Xavier is particularly the nature and development of customer
w tinyurl.com/yakbxvj interested in off-grid regulation in rural areas service approaches in local government in the
of developing countries, whilst Gill’s focus is on UK, has been attracting media interest.
Professor Paul smart meters and smart grids. w tinyurl.com/yj4k3hs
Stoneman, MSM, has w tinyurl.com/yls6eqs
produced a report
on Soft Innovation,
published by National A project on Professor Joe
Endowment for Improving the Nandhakumar, ISM,
Science Technology capacity of healthcare has been awarded
and the Arts organisations to funding under the
Paul Stoneman act on evidence in Innovation Research
(NESTA). The report
patient safety aimed Initiative for an
uncovers a picture of rapid innovative change
to investigate the exploratory project
of an aesthetic nature – what he terms 'soft
practical problems on Valuing innovation:
innovation'. Paul argues that current policy Davide Nicolini Joe Nandhakumar
and available an exploratory study
distorts the economy by supporting innovation
solutions for healthcare practitioners doing of developing business models for 'serious'
of a technological and functional nature, and
Root Cause Analysis (RCA). RCA is a widely computer games. Professor Harry Scarbrough
neglecting innovation of a soft kind. While
used investigation methodology for reviewing and Dr Nikiforos Panourgias are also involved.
recognising the increased levels of support
patient safety incidents and preventing their 'Serious games' are products that seek to
governments have given to the creative
re-occurrence through producing organisational use the technologies of computer games
industries in recent years, he calls for an
learning. The research, the first of its kind in and the skills of computer game developers
'overhaul' of innovation policy to recognise soft
the UK, was conducted by a multidisciplinary and designers to address the problems of for
innovation activities both within and outside
team led by Dr Davide Nicolini, IKON, and example, training and development, decision-
the creative industries.
w tinyurl.com/lqah78 funded by the EPSRC. It examined how RCA making, and organisational change, which face
is applied in the aftermath of different types most businesses and organisations. The project
of adverse events, the challenges it poses aims to contribute to theory development in
New research from for the investigators and the organisation, this area by exploring the relevance of a new
Dr Sue Bridgewater, whether it is perceived as useful, and whether theoretical framework – termed 'regimes of
MSM, highlights the the recommendations generated through worth' – to an empirical study of two case-
problems which occur the process impact generate organisational studies of serious games innovation.
when football clubs learning. w tinyurl.com/y9enwnm w tinyurl.com/yk7vjug
change managers.
Popular myth
would have it that In partnership with The scheme is a B2B voucher scheme designed
Sue Bridgewater
a football manager Aston Business School, to broker new partnerships between SMEs and
‘is never more than six games away from the CSME has recently creative firms and is located in Manchester.
sack.’ Certainly, football managers tend to be won a three-year
dismissed when they have had a poor run of contract to evaluate Professor Stephen Roper of WBS will be leading
results – although occasionally the trigger may the Creative Credits on the econometric aspect of the evaluation,
be pulled after a victory or may be prompted by Innovation Voucher supported by PhD student Lorraine Morley.
something other than results. scheme being funded
Stephen Roper
w tinyurl.com/yas59v8 by NESTA. w tinyurl.com/yho8hj6
9. research review nexus: spring 2010 9
Since June 2008, In the SOLAR unit,
researchers from research is being
WBS and the conducted into one
Computer Science of three priority
department led by areas, 'Security and
Vladimir Deineko resilience'. In addition
(ORMS) have been to the established
working on designing large research project
Paul Marginson Guglielmo Meardi Vladimir Deineko Bridgette Sullivan-Taylor
optimal routes on organisational
Professor Paul Marginson and Guglielmo for commercial waste collection services in resilience and how MNCs and SMEs are
Meardi, IRRU, have compiled a report for Coventry City Council (CCC). The collaboration developing the capability to cope with strategic
the online European Industrial Relations is supported by the EPSRC funding body and decision making under uncertainty, a new
Observatory on the impact of multinational the centre for Discrete Mathematics and its project has begun which examines an increasing
companies on collective bargaining over pay Applications (DIMAP). First results report that threat facing organisations working in emerging
and conditions across the 27 member states application of new algorithms may lead up to markets and offshore locations (in the energy
of the European Union. The report finds that 20 percent savings in transportation costs (fuel and other sectors). The project examines how
under multi-employer bargaining arrangements consumption, use of vehicles, etc). organisations are managing body politics ie;
MNCs have been a major source of pressure w www.warwick.ac.uk/go/dimap the risk of kidnapping and hostage taking in
for decentralisation, giving greater scope for these locations and how intelligence is being
company negotiation. Under single-employer For years WBS has used a special tool to shared between target organisations both off
bargaining, MNCs often act as pacesetters. allocate students into equitable teams, and onshore. Anyone working in organisations
MNCs make widespread use of cross-border to spread evenly students with different and locations facing these risks who would
comparisons of costs and performance in local backgrounds, skills and cultural origins. The be interested in participating in this research
negotiations in manufacturing. The result is combinatorial type algorithms behind the should contact
implementation of cost-saving and flexibility- tool had been developed by Vladimir and PhD E Bridgette.Sullivan-Taylor@wbs.ac.uk
enhancing measures, particularly in a context of student Thomas Ridd. Warwick Venture experts w www.wbs.ac.uk/faculty/research/solar.cfm
company restructuring. Relocations, actual and are currently involved in the commercialisation
threatened, heighten the coercive pressures on of this product. More information about WBS research can be
local negotiators. found via the Press Centre in news and features
w tinyurl.com/ye5kfen w www.balancedgroups.com w www.wbs.ac.uk/news
connect, learn, develop – Recognising that learning and development
never ends, have a look at the increased
Warwick is now on iTunesU
w www2.warwick.ac.uk/itunesu
online number of short courses available through
Executive education and the Careers team,
Since the launch of your new alumni web site as well as some of the services run by the
in July 2009, new services have been and will Development and Alumni Relations office.
continue to be added as we seek to improve our w www.wbs.ac.uk/alumni/personaldevelopment
service to you. Check out the media area where
you can access an increasing library of podcasts Looking for a former classmate or new contact?
and clips from previous events and activities Use our online directory to get back in touch
around Warwick w www.wbs.ac.uk/alumni/directory
w www.wbs.ac.uk/alumni/podcasts
Link with over 3000 members on LinkedIn
The new student page launched for induction Connect with the 2000 members on Facebook
in October 2009, demonstrates our ongoing Follow us along with 400 followers on Twitter
commitment to WBS students. Links to all the groups can be found at
w www.wbs.ac.uk/alumni/students-class-reps w www.wbs.ac.uk/alumni
contact details Pam Barnes Development & Alumni Ben Plummer-Powell In–house photography by John Weatherly
Alumni Publications Officer Relations Administration Director of Development and Alumni
Alumni Association t +44 (0)24 7652 4396 T +44 (0)24 7652 2813 Relations nexus is the magazine of the Alumni
Warwick Business School e pam.barnes@wbs.ac.uk E alumni@wbs.ac.uk T +44(0)24 7652 4188 Association, Warwick Business School
University of Warwick E ben.plummer-powell@wbs.ac.uk T +44 (0)24 7652 4306
Coventry CV4 7AL Alison Bond Ann Jackson
United Kingdom Deputy Director, Development Development and Alumni Charlotte Wilkes The views contained in nexus are those of
t +44 (0)24 7652 2813 and Alumni Relations Relations Officer Associate Director, Development contributors and not necessarily those of
f +44 (0)24 7652 3719 T +44 (0)24 7652 4176 (International Affairs) T +44(0)24 7615 0075 Warwick Business School or the University
E alumni@wbs.ac.uk E alison.bond@wbs.ac.uk T +44 (0)24 7652 8197 E charlotte.wilkes@wbs.ac.uk of Warwick
W www.wbs.ac.uk/alumni E ann.jackson@wbs.ac.uk Design by Morse–Brown Design
Kathryn Chedgzoy Jen Young w www.morsebrowndesign.co.uk
Development and Alumni Tracy Lynch Development and Alumni Relations
Relations Officer Development and Alumni Events and Office Co-ordinator
(Corporate Affairs) Relations Officer T +44 (0) 24 7615 0171
T +44 (0)24 7615 0515 (Student & Regional Affairs) E jennifer.young@wbs.ac.uk
E kathryn.chedgzoy@wbs.ac.uk T +44 (0)24 7652 8487
E tracy.lynch@wbs.ac.uk
10. 10 nexus: spring 2010 energy
the challenge of energy
David Elmes, Academic Director, The Warwick Global Energy MBA, sets out the challenges facing the energy sector and
introduces the ways in which teaching at WBS is tackling those challenges.
As we are preparing articles on the energy Who's who and the roles that institutions are evolution of the industry and its role in society:
industry for this edition of nexus, there is playing are also shifting. Countries that own the role of regulation, the development of
daily speculation in the press on whether the energy resources look to do more themselves. the low carbon economy and the politics of
UN Climate Change Summit in Copenhagen Previously, they might have relied on energy. We also look at how trading binds the
will deliver a global deal on the emission of international companies headquartered in the industry together, how innovation is delivering
greenhouse gases. By the time you read this, developed economies. Companies from China, alternative energies and how the industry
you will know what was or was not agreed. India, Russia, Brazil, Malaysia, the Middle East finances and delivers the major capital
and some African countries, now take key investments needed for progress.
For WBS, the international diplomacy of roles across the industry. This is often in close
climate change is part of a more fundamental collaboration with their governments who see The new modules extend the way MBA
transition in the energy industry that energy as critical for economic development programmes have historically looked at the
is changing management practices and and security. performance of a firm and now explore the
rewriting the way the industry interacts with firm’s role in society. They involve faculty
governments across the globe. In 2007, WBS from across Warwick who are teaching
started to gather its thoughts and teaching on Energy is getting harder MBA modules for the first time on subjects
the energy industry as part of the School’s aim as diverse as politics, regulation and the
to understand the challenges that managers to develop and produce. economics of the low carbon society (see
face in tackling global issues. This has now Professor Andrew Sentance’s separate article
included the launch of The Warwick Global
For the traditional oil and on P17).
Energy MBA in May 2009 – a part time MBA gas resources, new finds are
for people working in the industry that Professor Richard Higgott and Caroline
combines the management education of the smaller and offer greater Kuzemko of the University of Warwick’s
Warwick MBA with an understanding of the technical challenges while Department of Political and International
challenges and opportunities that lie ahead for Studies, are highlighting how the international
the energy industry. the major fields found in political economy influences the energy
the past now face declining industry. ‘When people discuss the energy
From extensive discussions with executives transition, they usually refer to the transition
and alumni in the industry, we identified three production. from fossil fuels to energy sustainable on a
themes that are combining to cause a more long term basis with lower carbon emissions.
rapid transition for the energy industry than There are, however, closely associated and
changes in the past: The third factor is the issue of climate change. important political questions circulating in the
All of these changes in the industry need international political economy about what
H Developing and providing energy is to be achieved within the constraints of the appropriate market, state and institutional
becoming more difficult, both from changing the way energy is produced and conditions must be to ensure this transition.
traditional or alternative sources consumed. The goal is much lower carbon
emissions without halting economic growth The transition needs to take place in such a
H The roles for companies, governments and and development. What this means is a very way that continuity and affordability of energy
other institutions involved are changing different energy industry in the future from supply is maintained due to the vital domestic
the hydrocarbon-focussed one that supported and commercial roles that energy plays. These
H Climate change sets a challenging new economic growth during the 20th century. are highly significant questions with potentially
framework for the industry drastic economic, social and political
Together these factors lead to an industry implications. A study of recent economic and
Energy is getting harder to develop and whose current pace of evolution leaves behind political transitions across Eastern Europe,
produce. For the traditional oil and gas many traditional models of competition. particularly Russia, reveals just how uncertain
resources, new finds are smaller and offer Managers face a more complicated landscape periods of transition can be, how much change
greater technical challenges while the major where you have to understand multiple they can lead to and how outcomes can differ
fields found in the past now face declining sources of energy, changing roles in the from initial intentions.’
production. For renewable and alternative industry and how addressing climate change
energies, the plan is to develop significant will transform the industry. The new module on The Politics of Energy
levels of energy production in a very short points out that during periods of steady and
time. The plans to develop, deploy and scale- In developing the Warwick Global Energy MBA, affordable energy prices, net energy importer
up renewable energy supplies reflect rates we are revising about three-quarters of the nations tend to expend less political capital on
of growth rarely seen in capital intensive coursework used in the traditional Warwick securing energy supplies. During times of high
industries. MBA programmes. New modules look at the and volatile pricing, however, energy crises are
11. nexus: spring 2010 energy 11
re-born and consumer nations are reminded sustainable sources of energy. Gill and Xavier
of the extent to which modern economies are recently attended the World Forum on Energy
David Elmes is
reliant on energy. Regulation where sessions covered a broad
Academic Director of
range of topics including energy security, the Warwick Global
investment, competitiveness and affordability. Energy MBA and
The role of regulation ‘There was a notable increase in the number
of sessions devoted to renewable energy,
Senior Teaching Fellow
Warwick MBA at WBS.
in the energy industry is energy efficiency, climate change and other David joined WBS after
sustainability issues. The regional regulatory more than 20 years
changing as governments associations from around the world agreed a working in the energy
seek to influence supply, joint statement on climate change that was and management
consulting industries.
released at the Forum. In this statement they
demand and the transition outlined their commitment to play a major role
His focus is on the
development and implementation of changes
to sustainable sources of by overseeing the development of efficient that transform a company's performance
and climate responsible energy markets.” including the changes in organisation, culture,
energy capabilities and performance management that
Regulators find themselves caught between enable and sustain new ways of working in ever-
the evolving policy ambitions of governments changing circumstances.
‘Looking at the transitions ahead, concerns and companies’ need for a clear regulatory
about climate change mean we now have a framework if they are to make the major, long Professor Richard
number of politically stated goals, particularly lead-time investments required. Regulators Higgott is Pro-
with regard to reducing CO2 emissions. Climate have to figure out how it will all work – ‘Several Vice Chancellor
change academics challenge what they sessions dealt with the role of regulators in for Research
perceive to be the ‘business-as-usual’ political implementing market mechanisms to achieve and Professor
response to development of a sustainable a significant reduction of CO2 emissions. of International
energy system. They argue for increased Political Economy
at the University of
political investment in facilitating the transition There was a reasonable consensus on the idea
Warwick. Richard
as the questions of who pays for the past that putting a price on CO2 emissions was not was Foundation
and who invests in new technologies for the enough and that further energy policies are Director of the
future can only be resolved at the political needed. A number of speakers were quite ESRC Centre for the
level. The transition will be politically complex critical of the cap and trade mechanisms Study of Globalisation and Regionalisation at
but fascinating. Innovative thinking across for various reasons. Some feared that such Warwick. He is also Senior Scientist and Director
economic, political and social spectrums will a mechanism could lead to very high prices of the EU Framework 6 Network of Excellence
be vital.’ for electricity, others feared that emissions on Global Governance, Regionalisation and
trading schemes can produce carbon prices Regulation and a Senior Fellow in the Institute
of Governance and Public Management at WBS.
When domestic or international politics do that are too low or too unstable to incentivise
He has particular expertise in the international
reach points of agreement, governments enact investment in energy efficiency and renewable economics and politics of East Asia and the
policies and establish regulatory structures energy.’ international economic institutions, especially
to guide the energy industry. In another new the WTO.
module focussed on Regulation, Dr Gill Owen, As the Warwick Global Energy MBA
Dr Xavier Lamaire and Professor Martin Cave approaches its second intake, the challenges
Dr Gill Owen is Senior
use their experience from WBS’ Centre for of the energy industry continue to mix what
Research Fellow
Management under Regulation to highlight companies can do themselves with the role at the Centre for
the management challenges of operating in they play in an evolving, more global society. Management under
regulated industries such as energy. Through WBS’ teaching and research, we hope Regulation at WBS.
to contribute a greater understanding of the Gill is a member of
Gill and Xavier run a network called the management practices and policy-making the Competition
Sustainable Energy Regulation Network on required for success. Commission; a non-
behalf of the Renewable Energy and Energy executive member of
Efficiency Partnership, an international NGO. We hope you enjoy the following perspectives the Ofgem Board; and
a consultant on energy
This network provides information to energy featuring alumni from across the industry and
policy to government departments and energy
regulators around the world on how policy do please contact us if you share our interest companies in the UK and overseas. She is also
and regulation can facilitate the growth of in the Global Energy industry. a member of the Fuel Poverty Advisory Group
renewable energy and energy efficiency. and Ofgem's Social Action Plan Review Group,
For more information on the Warwick Global as well as being Policy and Regulation Adviser
The role of regulation in the energy industry Energy MBA visit to the Renewable Energy and Energy Efficiency
is changing as governments seek to influence Partnership (REEEP).
supply, demand and the transition to W www.wbs.ac.uk/students/mba/global-energy
12. 12 nexus: spring 2010 energy
competitive markets and the home of the future
Ian Peters (FTMBA 1988–90) Chief Operating Officer, British Gas, explains the key role of energy efficiency and the adoption of
new technologies in a world of climate change.
It is widely acknowledged that the UK energy It may seem counterintuitive that an energy
market faces significant and unprecedented company helps its customers reduce their
challenges in securing future energy supplies, consumption of energy. In fact, our 9,000
combating climate change and delivering engineers and network of training academies
affordable energy to consumers. give us the unique ability to bring energy
efficiency and microgeneration to the mass
Declining reserves of North Sea gas mean that market. British Gas is the UK’s largest supplier
gas imports are expected to rise 75 percent of energy efficiency. We have insulated over
by 2015. One quarter of power stations are 1.5 million lofts and cavity walls in the last
expected to close within the same period as five years, we are the UK’s leading supplier
ageing plants and environment requirements of A-rated high efficiency boilers and we’re
lead to accelerated closures. exploring new technologies in partnership with
other companies such as developing a fuel cell
Meanwhile the Government has set out a domestic boiler that produces both heat and
comprehensive plan to cut UK emissions by electricity for homes.
34 percent by 2020 and at least 80 percent by
2050. To deliver this target they estimate that We also see the national roll out of smart
40 percent of the UK’s electricity will need to meters as key to helping customers understand
be from low carbon sources by 2020 including a the energy they use. Smart meters display
rise in electricity from renewables from 5 to 30 and record real time information on electricity
percent. and gas consumption. The Government has
committed that 46 million smart meters should
Developing these energy sources requires be fitted into domestic customers homes by of partnerships that British Gas has established
major investment – Ernst and Young estimates 2020. British Gas has already installed 60,000 – with a large number of charities, retail partners
as much as £199bn by 2025. Companies must the largest programme in the UK. and local authorities, working on an ‘area-by-
make a fair rate of return in order to make area’ basis like we are already doing in the new
investments of this scale. Centrica alone has The key to making smart meters a success Community Energy Savings Programme (CESP)
committed to investing £1.5bn a year in securing is building customer engagement to act on
new energy supplies. In the last year, we have the information that a smart meter provides. In summary, the energy sector faces some
invested £2.3bn for a 20 percent share in the Energy suppliers and installers must all play an significant challenges relating to UK security of
nuclear operator British Energy, £750m on the active role in making Britain’s homes greener. supply, climate change and affordability. We
Lincolnshire coast offshore wind farm and built Suppliers such as British Gas have the technical believe that competitive markets have delivered
a new gas-fired power station at Langage near capability, the operational capacity, the financial so far and are best placed to meet these
Plymouth at a cost of £400m. strength and the track record to deliver energy challenges going forward. It is essential that the
makeovers at scale and with pace. consumer remains at the heart of what we do.
The cost of supporting low carbon and network As part of that, we at British Gas are committed
investment is growing by around 9 percent pa in We have just completed what we believe to be to maintaining our leading role in helping
absolute terms and as a percent of customers’ the largest ever piece of research into customer our customers improve the efficiency of their
bills. OFGEM, the energy regulator, has predicted energy consumption. We have analysed housing and to help them manage their energy
bills will rise by up to 25 percent by 2015 in all 78 million meter readings between 2006 and bills in a higher priced environment.
scenarios – with spikes of up to 60 percent. 2008 and correlating consumption savings with
actions customers have taken to improve the
Against this backdrop, energy efficiency and energy efficiency. Our data shows an average the author in minute
the adoption of new technologies such as 21 percent reduction in gas consumption of 18
microgeneration boilers and solar photovoltaic percent for 300,000 customers every year for Ian’s responsibilities at British Gas include
have an even greater role to play not only in whom we install insulation, and an average 21 offshore operations, metering and billing, debt
reducing carbon emissions but also helping percent fall for the 100,000 customers every management, Centrica Group IS, Insurance,
customers manage their energy bills. year for whom we install a new boiler. We British Gas Business, and ‘Energy First’, the
believe that the relationship between customers largest customer facing residential energy
Some 40 percent of emissions come from and their energy supplier has had the single business. He is also Chairman of British Gas
homes. The UK’s Climate Change Committee biggest impact on energy savings on the UK. Services Ltd and a Trustee of two Centrica
argues that some 10 million lofts and 7.5 million Pension Funds. With over 25 years experience
in a variety of energy and financial services
cavity walls need to be properly insulated by We all recognise that a further step-change in
positions, Ian has gained expertise in strategy,
2015, and all the 12 million inefficient boilers in consumer behaviour is needed to meet our marketing, finance and business operations in a
people's homes must be replaced by 2022 if the stretching carbon reduction targets. This will range of financial services companies.
Government’s targets are to be met. require even more innovation such as the range
13. nexus: spring 2010 energy 13
making the UK a world leader
Nick Horler (DLMBA 1987–91) Chief Executive, ScottishPower, examines the competition for carbon capture and storage (CCS)
and highlights the importance of leading the race.
Two years ago, ScottishPower and 9 other Canada to deliver this crucial technology first
companies entered a carbon capture and and not give away CCS like we gave away
storage competition in the UK that was very nuclear or wind power? Comparing ourselves
much at the cutting edge of what was then with projects across the globe, we will be
the embryonic global development of carbon capturing CO2 from coal with a retrofit solution
capture & storage (CCS). at a location able to access proven storage sites
in the central North Sea.
With just a few projects around the world
then, the UK Government had taken a lead. The location also gives us access to a ready
It recognised the need for a commercial CCS made skills base as hydrocarbon extraction
solution to the challenges posed by climate declines and we have the partners and alliances
change and the opportunities and advantages to share what we learn across the globe. Finally,
of being the first mover. we have already started. Longannet is a real
power station delivering power today. Our
Back then, people understood there was carbon capture test rig has now been operating
tremendous economic potential, and recent night and day for well over 2,000 hours. And our
figures now bear out just how big this goal is to demonstrate full chain, full scale CCS
opportunity actually is. The Department for by 2014 – a goal that leaves serious contenders
Energy and Climate Change recently reported across Europe only just getting to the starting
that clean coal technology could bring between blocks.
two and four billion pounds a year into the
UK economy by 2030, and support up to sixty We wholeheartedly back, support and applaud
thousand jobs in engineering, manufacturing CCS and we at ScottishPower were down to the the UK Government’s path-finding role in the
and procurement. last four. Here was a chance for the UK to lead journey towards global CCS. But let’s not just be
the world in a brand new technology that could the first to demonstrate the technology but the
make a significant positive impact on climate first to deliver and realise the potential of first
change. We were delighted that our retrofit mover advantage.
Our carbon capture test solution secured the early support of NGOs, in
rig has now been operating particular the WWF. It is the competition that has got us this far and
it is the competition that I believe will enable
night and day for well over There are now in excess of 70 projects around us to show the world we can demonstrate and
2,000 hours. And our goal is the world today. Some are no more than
discussions or vague feasibility studies. But
deliver full scale CCS first.
to demonstrate full chain, full others at first glance look like they’ve overtaken To learn more about CCS and our competition
us in the race to deliver this vital technology. bid, visit w www.scottishpowerccs.tv
scale CCS by 2014 – a goal
that leaves serious contenders So where are we now in this global race? How
does the UK now compare having raced out of the author in minute
across Europe only just the blocks first? Let’s look at the facts. Recently,
getting to the starting we at ScottishPower along with our consortium
partners Aker Clean Carbon, Shell and
Nick Horler was appointed ScottishPower CEO
in June 2008 following a career in which he has
blocks. National Grid submitted the final technical held senior strategic roles in major companies
submission about our scheme for our coal fired both in the UK and abroad. His appointment
power station at Longannet in Fife. It spelled follows the company's successful integration with
With over 20,000 coal fired power stations out in detail what our CCS scheme will look like, Iberdrola, – one of the world's largest energy
companies. ScottishPower has quickly become
worldwide, developing a skilled CCS workforce, how much CO2 it will capture, by when and
a principal engine of growth of the Iberdrola
building on the North Sea offshore skills, could crucially what it will cost. E.ON did the same,
Group, employing over 10,000 people in the
make the UK the centre of excellence for and with RWE deciding not to submit, we are generation, transmission and retail of energy in
this technology, creating tremendous export now one of the final two companies in the the UK.
potential for UK PLC in a post-recession, low- competition. We will hear early this year who
carbon world. gets the green light for the final phase of the Before joining ScottishPower, Nick was Executive
competition, which will run through the best Director of E.ON UK PLC and had held other
A year later and the pace was beginning to hot part of 2010. senior executive positions in that group for more
up with 5 fully integrated projects around the than 10 years. Prior to this he spent twelve years
globe. The government’s competition ensured But will that be enough on the global stage? with Phillips Petroleum (now ConocoPhillips).
that the UK still held a strong lead in developing Can we ultimately beat France, the US and
14. 14 nexus: spring 2010 energy
a ‘more electric’ automotive landscape
Dr Henri Winand (MMBA 1999–2003), Chief Executive, Intelligent Energy Holdings PLC, explores the vehicle technologies
needed to address future transportation needs.
Diversification of transportation fuels the successful introduction of hydrogen-fed fuel
According to the International Energy Agency’s cell vehicles to market, targeting the year 2015.
latest World Energy Outlook, today’s worldwide
transportation industry is over 90 per cent Fuel Cell Vehicles (FCVs), Battery Electric
dependent on oil. The introduction of hydrogen Vehicles (BEVs) and consumer attitudes
as a transport fuel for use in fuel cell hybrid When pure BEVs and FCVs are compared, it is
or other hydrogen vehicles would increase worth considering the infrastructure to support
diversity of supply as well as reduce the carbon them and consumers’ behaviour in selecting
footprint of the sector. A recent report from and using their vehicles. The ‘refuelling’ time
the US National Research Council suggests required to charge a pure BEV is much longer
that hydrogen fuel cell vehicles could lead to a than needed to refuel vehicles with petrol,
reduction in gasoline consumption of as much diesel, compressed natural gas (CNG) or
as 50 per cent by 2035, reducing CO2 emissions hydrogen. While FCVs will need a hydrogen
from light duty vehicle transportation by a fuelling infrastructure, this can be a hub-
similar level. and-spoke supply network similar to how oil
and gas is supplied today. Whether BEVs are
A portfolio of vehicle technologies supported by home recharging points, curb-side
A portfolio of vehicle technologies is needed to recharging points or battery swapping systems,
address future transportation needs. There are a highly networked and distributed recharging
roles for battery only electric vehicles, plug- infrastructure is needed that requires larger
in hybrid electric vehicles, gasoline or diesel capital outlays and attracts larger operational
hybrids as well as fuel cell hybrid vehicles. and maintenance costs.
Pure battery electric vehicles (BEVs) are getting The way consumers buy and use their cars
a lot of attention right now, but they are not a is often ignored when looking at pure BEVs.
realistic option for the long-term transformation Where consumers have the opportunity to
of how we think about energy and clean recharge at home in their own garages, as in serve a wider combination of transport needs
transport. Distance per recharge and time to the USA, the land available on a per capita and consumer preferences. The solution is a
recharge will always be challenges. Most fuel basis means they also drive further than in portfolio approach to cleaner and more efficient
cell vehicles (FCVs) use batteries alongside regions such as Europe where houses are transport with hydrogen playing a central role.
the fuel cells in what are essentially hybrid usually smaller with more street-based parking. Not a pure ‘electric’ transport system, but a
power systems – batteries and fuel cells are Therefore, geographies where people have ‘more electric’ transport system.
complementary technologies. the space to charge at home involve longer
commuting distances and so the range of BEVs
Fuel cell hybrid vehicles are the best technology becomes a concern. Where people have shorter the author in minute
to simultaneously address emissions, air commutes, space for curb-side BEV recharging
quality and energy security concerns in a cost reaches saturation. Dr Henri Winand joined the Board of Intelligent
competitive and scalable manner. Moreover, Energy Holdings PLC as Chief Executive in
this can be achieved in vehicles that deliver Strategies for the rapid take-up of alternative September 2006. He was most recently Vice
similar performance in terms of range and vehicle technologies often ignore the fact that President of Corporate Venturing at Rolls-Royce
consumers purchase vehicles with mobility PLC, the power systems provider for land, sea
refuelling time to today’s combustion engine
and air. During his time with Rolls-Royce, Henri
vehicles. These are critical factors that freedom in mind. Having to plan one’s journey
managed a power systems business, introduced
consumers and fleet customers consider when around the operational needs of a pure BEV new manufacturing technologies into the group
making their purchasing decisions and which will require significant customer education. and was responsible for defining and supervising
cannot be ignored in ensuring prompt market This is often slow, costly and dependent the implementation of strategies for deriving
take-up. upon sustained and consistent government additional value from the group’s technology
incentives to achieve a complex shift in modes assets.
This is a view shared by the leading automotive of transport.
companies. Major car makers Honda, Toyota, Intelligent Energy is a privately held clean power
and Daimler all recently made announcements In summary systems company serving the transportation,
on when FCV commercial production will Pure BEVs have a particular niche in our oil and gas, aerospace, defence, distributed
begin. Furthermore, in September 2009, a future transportation system: large cities generation and portable power markets.
Intelligent Energy addresses these markets using
memorandum of understanding was signed by where consumers have the opportunity to
its proprietary fuel cell and hydrogen generation
Daimler, Ford, General Motors, Honda, Hyundai, recharge at home, at work and on the curb-
technologies.
Kia, Renault, Nissan and Toyota to cooperate on side and where range is not an issue. FCVs w www.intelligent-energy.com
