1. nexus
The magazine of the Warwick Business School Alumni Association Winter 2003
Strategic change at WBS
- new building continues evolution
- focus on strategy
b
u

2. 2 | nexus news
WBS in the news Alumni in the news
WBS appeared in news and business related Since graduating from WBS in July 2002,
media between eight and ten times every week Anoop Maini (BSc ManSci 1999-02) has been
over the past year. Articles have appeared in actively involved in the setting up of the
publications as diverse as The Times, The Weekly National Executive Network for Social Action
Telegraph, Gulf News, Nikkei magazine, Hong (NENSA). He explains, “NENSA is an
Kong, and Management Today, to name but a organisation that basically empowers young
few. The WBS European MBA continues to people to make social changes within society, by
receive attention, as does the WBS football bringing together business, government and
management course and its participants. voluntary sector organisations in a unique way.
The projects are envisioned and led by young
Financial Times
people, to help create a social enterprising
In the FT Business Education Supplement culture that is championed and led by the
published in September 2002, WBS ranked 4th future leaders of society.”
out of 22 MBA programmes. Favourable Anoop is also making a short film, as well
mention was also made of the interest in WBS’s as collaborating on a book on
European MBA programme, in association with Entrepreneurship. As an 18-year-old, he won his
the University of Mannheim in Germany and local borough council’s Young Citizen of the
ESSEC in France. Year Award, when he set up Oadby and
Interest in Enterprise Wigston Youth Council.
A series of prominent articles by Professor Medarex Inc appointed WBS alumnus Geoffrey
David Storey, Director of WBS Centre for Small Nichol (DL-MBA 1991-96) as Senior Vice
& Medium Sized Enterprises (CSME) appeared Anoop Maini (photo courtesy of Leicester Mercury).
President, Product Development on 9
in the Financial Times recently, on issues that September. Medarex is a biopharmaceutical
affect government policymaking on SMEs. A company focused on the discovery and John Eary (MSOR 1971-73) is co-writer of an
great deal of interest has been received for development of therapeutics to treat life- article on organising work/life balance in the
David’s research on older entrepreneurs, as well threatening and debilitating diseases. September issue of Training Journal, urging
as his work on the UK’s fastest growing SMEs. Commenting on his appointment, Dr. Nichol people to stop and think about their daily
His report on decline in investment in smaller said, “I am enthusiastic to be leading product schedule. John is head of NCC Skills Source
quoted companies was also featured in an FT development at Medarex at such an exciting Consultancy at The NCC Group. A WBS post-
article. time in the development of its monoclonal grad, he has carried out many staffing reviews
Independent view antibody therapeutics portfolio.” Dr. Nichol in the public and private sectors addressing
Dean of WBS, Howard Thomas outlined his comes from Novartis Pharmaceuticals organisational and performance issues. He has
plans to raise the School’s global profile in an Corporation, where he held the positions of managed projects that have won the European
interview for The Independent on Thursday 26 Head, Global Medical Marketing Excellence and Training Technology Award and four UK
September. The task of making the School Head, Global Project Management. awards for innovation and effectiveness. John is
better known outside European university a regular commentator in the computer press
circles depends on making Warwick’s defining on skills and staffing issues.
characteristics, which have put it in the top e John.Eary@nccglobal.com or visit
European business schools, famous in a wider w www.nccglobal.com
field. “There is a brand here (Warwick), it is a An email interview with Simon Woods,
brand of innovation, excellence, cutting-edge currently studying for his Masters in Public
research and relevance to the corporate body,” Administration at WBS, appeared in the
Howard explained to the reporter. Birmingham Post in July 2002. Simon is Chief
Award winning Executive of the Birmingham School of Speech
At the prestigious annual National Training & Drama. When asked what his job entails,
Awards held in London in November, WBS won Simon explained, “Strategy, vision and people.
a Regional Training Award for its innovative Essentially I see my role as a facilitator,
programme of training for the Royal Bank of providing my colleagues with the space and
Geoffrey Nichol. confidence to excel. We have a very clear vision
Scotland Group (RBSG).
The redesigned course combines the best of of making BSSD the best drama school in
Alumni Clive Austin (MBA 1990-91), director of
face-to-face and online delivery methods in a Europe.”
3i Ireland and Hina Patel (MBA 1999-01)
16-week networked programme. Now on its consultant for AT Kearney, flew the flag for Lonely Planet’s founder Tony Wheeler appeared
sixth cohort of operations managers from every WBS in interviews which appeared in the on the cover of the September issue of
part of the RBSG, almost 90% of participants August issue of Mergers & Acquisitions Ambassador, the AMBA magazine. After
have received the MBA-level Certificate in magazine. In the article entitled “A good move: graduating from Warwick in 1969, Tony did an
Operations Management from WBS. According but are MBAs essential for corporate MBA at LBS and founded his company in 1972.
to one delegate, “The programme has enhanced wannabes?”, Clive and Hina both credited the Also featured in Ambassador is a story on WBS’s
my operational control and planning and given WBS MBA with helping their careers. An article new certificate for football managers, and the
me a more structured approach and support by Clive Austin on his experiences at 3i Guardian’s employability table that rates WBS
tools for work tasks.” g appeared in the last edition of Nexus. Alumni as ‘most employable’. g

3. alumni events nexus | 3
Growing excitement diary dates
WITH EVENTS IN PARIS, Oslo, Shanghai, Beijing, Hong Kong and New York, as MBA Refresher 2003
well as the celebrated WBS Academic Update held on campus, it has been an Images of Strategy, Images of
exceptionally busy and exciting autumn for the Alumni team. the Firm
WBS academics hosted alumni events around the world, co-ordinated Dates: 2-5 February 2003
by alumni. Venue: Radcliffe House,
Starting in Paris, where Dr Chris Smith of the WBS Marketing & University of Warwick
Strategic Management (MSM) group led a round-table discussion with Parisian alumni discuss strategy. London Evening Seminar
alumni on ‘The meaning and manifestation of strategy in different cultural and
Leadership and Organisation
organisational contexts’. Organiser Thierry Chappe (MBA 1990-91), reported: “We had a very interesting and
Speaker: Professor Andrew
passionate discussion with Chris about the meaning and purpose of strategy that all the participants thoroughly
Pettigrew
enjoyed. This was a great event.”
Date: 4 February 2003
In China, Dr Simon Collinson, Associate Dean (MBAs) and Senior Lecturer
Venue: Prudential plc,
in International Business, hosted events in Beijing, Shanghai and Hong Kong,
London EC4
(report and photos on page 15)
At an evening event in Oslo, Andrew Pettigrew, Associate Dean - Research The Warwick Debate
and Professor of Strategy & Organisation, spoke to Norwegian alumni on the Speakers: Sir David Tweedie,
subject ‘Does leadership make a difference to organisational performance?’ Feedback Chair of the International
from organiser Per-Egill Frostmann, “Thank you for making this alumni meeting Accounting Standards Board
happen - I think it was a good start. Andrew’s lecture was an interesting and to and Peter Wyman,
the point, especially the prerequisites for successful change initiatives in large President of ICAEW
Leading the way in Oslo.
organisations which were particularly relevant.” Chair: Professor Keith Hoskin,
‘Are you happy? Job Satisfaction and Work-Life Balance in the United States Warwick Business School
and Europe’ was the topic discussed when Professor Andrew Oswald, the Date: 3 March 2003
renowned Warwick economist, hosted a popular event for alumni in New Venue: Warwick Business School
York City on 5 November.
International MBA Refresher
Organiser Ranan Lachman
New Issues in Intercultural
confirmed, “It was an excellent
Management
meeting, with around thirty
Dates: 22-25 April 2003
people attending and taking the
Venue: The Hotel Ambassador,
opportunity to join in the
Paris
discussion.” New Yorkers debate work/life balance.
Back on campus, 100 First Annual Warwick
alumni and guests attended the eagerly awaited WBS Academic Business School Dinner
Update, entitled ‘New economy - new ways of organising?’ on 19 October Hosted by: Lord Jeff Rooker
Academic update draws 100 alumni. at Radcliffe House. Four WBS academics, John McGee, Simon Croom, (MA Industrial Relations 1971-72)
Jacky Swan and Leslie Willcocks spoke on a variety of topics including Supply Date: 8 May 2003
Chain and E-business. Following his address, Dean Howard Thomas joined alumni and current MBA students for Venue: House of Lords,
discussion over lunch. “An excellent Academic Update, it was good to have the mind stretched again,” confirmed London
alumnus Clive South (EMBA 1996-99). “A unifying theme and four different departments certainly made for a
MBA Summer Ball
varied day.” “I benefited from meeting people, seeing friends and learning about the topics discussed. Leslie
11 July 2003
Willcocks’ presentation was particularly interesting,” added Alex Clark (MBA 2000-01). g
Warwick Business School
Regional UK Events
Visitors to campus Forthcoming events London
7 February & 7 March 2003
A PACKED PROGRAMME OF events is
Midlands
planned for 2003: starting with a
Birmingham
Women’s Group seminar, with guest
6 February 2003
speaker alumna Dame Sheila
McKechnie (MA Industrial Relations Oxford
1970-72), director of the Consumers 17 January 2003
Association; London Evening
Seminar, sponsored by The
Prudential, speaker Professor Andrew Full listing of events and online
Pettigrew, to be held 4 February; a booking at the WBS web site:
joint AMBA event with Sir David www.wbs.ac.uk/alumni/
Tweedie in March; and the first ever
Annual WBS dinner at the House of
Lisa Wickham-Branche (MBA 1996-97), TV presenter from Trinidad & Tobago Lords, hosted by Lord Jeff Rooker
with Emily Fay, Alumni Manager and Richard Sammy, FTMBA.
Mike Porteous (MA IR 1988-90), HR Director, British Airways, also visited (MA Industrial Relations 1971-72) in
campus in November to present to MA IR students. May; to name but a few. g

4. 4 | nexus
Dean’s Foreword
THIS EDITION OF NEXUS focuses on the subject of strategic management, with a series of articles which
reveal the extent and quality of research and teaching in this field at Warwick. There are also a few articles
from WBS alumni, showing how they used some of the knowledge gained at Warwick to develop their
own corporate strategy.
Warwick has been at the forefront of work on strategy for several years. Andrew Pettigrew’s work
through the Centre of Creativity, Strategy and Change, developed Warwick’s reputation in the processual
field of strategy and others (including Peter Doyle, John
‘Warwick has been McGee, Howard Thomas and Robin Wensley) have
contributed to a wide range of research on competitive
at the forefront of work strategy.
on strategy.’ In this particular issue, Andrew Pettigrew and David
Wilson have pointed out the manner in which the field of
strategy is changing and must keep on changing to take account of the processes of strategising in the
modern organisation. Their short articles demonstrate not only their own work but the considerable
efforts achieved by both of them in developing major books in the field of strategy over the last few years.
Andrew Pettigrew led the development of a major review of the field entitled Handbook of Strategy and
Management, Sage Publications, 2001 (with Howard Thomas, WBS and Richard Whittington, Oxford)
and David Wilson has co-edited a book with Stephen Cummings called Images of Strategy, which critiques
many modern strategy theories and raises a whole series of questions about the strategy field. Both books
have a European multi-disciplinary perspective and reflect the School’s view on the field of strategy.
Peter Doyle’s article on value-based marketing reflects the importance of his work in the whole area of value-based strategic management and
planning. Peter’s reputation as a teacher, researcher and consultant precedes him and his recent book on value-based marketing has been
extremely well-received by academics and practitioners alike. Simon Collinson and Qing Wang focus on the issue of developing capabilities for
competitive advantage - Simon in the context of China and Qing, more generally, in relating dynamic capabilities to the radical changes brought
about by new technologies. Their on-going research work reflects the competitive capabilities, core competences and competitive advantage focus
of some of the WBS strategy research.
Two articles by former students reflect strategy development in digital pay television broadcasting and in strategic change consulting. They
illustrate how MBA students at Warwick worked with faculty and others to build corporate strategy in their own organisations.
The Chair of the School’s Board, Val Gooding (BUPA’s Chief Executive Officer), presented her company strategy to an audience of students and
faculty recently in the Business School. The synthesis of her talk shows clearly a theme stressed by Andrew Pettigrew, namely, that many
companies see their strategy and organisational model as one and the same.
Obviously, there is other work in the strategy field being undertaken at Warwick in areas
which include David Storey’s leadership in
research on entrepreneurship through the ‘Many companies see their
centre for Small and Medium-sized
Enterprises, research on the strategic use strategy and organisational
of mergers and acquisitions and, more
generally, in international strategy. A new model as one and the same.’
development in the public/private area is a
focus on good citizenship through work on corporate citizenship, corporate social
responsibility and the design of public/private sector partnerships. This work is undertaken
through association with the School’s Local Government Centre and its Corporate
Citizenship Unit.
I hope you enjoy these articles - they reflect the tradition of cutting edge research and
teaching excellence which Warwick Business School encourages and on which it wishes to
build over succeeding years. I encourage you to become more involved with WBS and its
Alumni Association, and to consider contributing to the School through the WBS Fund for
Academic Excellence, which seeks to expand income streams to enable us to develop
facilities, research and faculty quality over the next several years. g
MBE honour
Howard Thomas
LINDA DICKENS, PROFESSOR OF Industrial
Relations at WBS, recently received her MBE
from Prince Charles at a Buckingham Palace
Investiture. The MBE was conferred in the in this issue
Queen’s Jubilee Honours List for her ‘services to
employment relations.’ Linda has since been Health assured - strategy at BUPA 6 Strategising/organising in the modern organisation 8
appointed to chair The Pay Commission for Dynamic capabilities in a time of radical change 11 Alumni profile - Warwick Insight 13
Local Government Services’ Staff. g Value-based marketing 14 Advantage China? 15 Careers 17

5. nexus | 5
highest honour BY PAM BARNES
PROFESSOR ANDREW PETTIGREW, Associate Andrew’s research style has involved the
Dean of Research and Professor of Strategy & detailed analysis of change, governance and
Organisation at WBS, received the prestigious performance processes in organisations over
Distinguished Scholar Award from the US several levels of analysis and over long periods
Academy of Management in August 2002. of time. This approach has not mirrored the
As the first European to be awarded the predominant style of research in the USA but
honour in its 20-year history, this represented a has challenged it. Andrew feels that the kinds of
supreme accolade. Andrew explains, “This is knowledge deriving from this style of research
not just an award make for an easy transition into the classroom.
‘This is not just an award for a particular for a particular “The development of management of change in
piece of research WBS and now the area of strategy and practice
piece of research but a lifetime career but a lifetime has been driven by this kind of research. Many
career award, alumni will have experienced this in classes they
award, recognising work done over 30 years.’ recognising work took here,” he affirms.
done over 30 years. When presenting the award, the Chair of
It also signifies US recognition that European the Committee, Professor Joanne Martin of the
management research can be world-class.” Graduate School of Management, Stanford
Andrew feels strongly that this award puts University in California, praised Andrew’s
Warwick Business School into the premier achievements, “This year’s winner blends a
league of research led business schools in respect for theory with love of data and juggles
Europe and the same league as the top a concern for scholarly precision with abiding
American business schools. commitment to helping organisations function
Previous winners come from US universities more effectively and humanely.” g
such as Harvard, Stanford, Wharton,
Michigan and Yale and include such
notable scholars as Herbert Simon, James
March, Alfred Chandler, Oliver
Williamson, Karl Weick, Chris Argyris, Professor Joanne Martin,
Stanford University,
and Rosabeth Kanter. According to presenting the
Andrew, “These people are an Distinguished Scholar
extraordinarily distinguished Award to Professor
group - to be included Andrew Pettigrew at
in that reference the annual meeting of
the US Academy of
group is a very Management in
great honour.” Denver, Colorado, in
August 2002.

6. 6 | nexus
health
BY EMILY FAY assured
WARWICK ALUMNA VAL GOODING, CEO of BUPA, presented her A management training programme called ‘Leading One Life’
company strategy to Warwick MBA and other postgraduate was implemented which focused on continuous improvement, but
students in October. Val, named the UK’s fourth most powerful also on staff concerns and staff working with each other to develop
woman in August’s Management Today, delineated where BUPA’s ways of better serving customers.
problems lay when she joined the company in 1998 and how, in Val also improved the
four years, she had turned the company around. systems at BUPA so that
The problems sounded familiar to students already delving call-centres, for example,
into case studies as part of their course. Although BUPA is could easily access records
currently the UK’s largest private health insurance and health when customers phoned
services provider with 40% of the private health insurance market, in. BUPA invested heavily
when Val took over as CEO the company was stagnant with low in the call-centres with
profits, poor systems, dropping staff morale, and it was losing soft fabrics; curved desks
customers. to encourage team
When she arrived at BUPA, Val chose to focus on the support, staff restaurant
organisational culture. As Andrew Pettigrew explains in his article and recreational facilities,
in this magazine, many companies see their strategy and their and a room for people to
organisational model as one and the same. recover from a difficult
call. The investment was
‘Organisational structure has to work by significant but morale is
much higher and
serving the customer well, at the same customers notice the
Val Gooding, CEO, BUPA.
difference in speed and
time as the interests of the organisation.’ service when they phone in.
All of this has to be measured through complaint monitoring,
“Organisational structure has to work by serving the customer and health outcomes: how initial calls were dealt with, how
well, at the same time as the interests of the organisation,” Val quickly was a patient seen, diagnosed, treated and how successful
explained when interviewed for Human Resources magazine in was that treatment.
September. Through investing in people, systems, processes and new
BUPA’s UK insurance arm is its largest business. When Val products, the improved service, customer retention, growth in
arrived, the culture was a traditional insurer’s: inward-looking, sales and profits have all been achieved. g
focusing on rules and probabilities and numbers. Although
customers were treated politely, they were dealt with by the rules,
regardless of how they might be feeling in the midst of a health Val Gooding’s presentation to students was part of the
crisis. Warwick MBA Forum series which brings CEO-level speakers
Val worked with staff to put in place a culture of serving to campus to talk to students. Previous presenters include:
customers which now permeates the entire company. She did this Sir Nick Scheele, Chief Operating Officer of the Ford Motor
to increase customer satisfaction with BUPA, but also to raise staff Company, and George Cox, Director General of the Institute
morale. In order to serve customers well, BUPA employees have to of Directors. Val also serves as Chair of the Warwick Business
enjoy and believe in what they are doing. School Board.

7. focus on strategy | 7
IMAGES OF STRATEGY IS edited by Professor
David Wilson and WBS Alumnus, Professor
Stephen Cummings, and contains contributions
from the editors as well as from most of WBS’s
MSM Department and some past members of
images
the Department.
“Our book has a European, multi-
disciplinary perspective and a Warwick voice
which makes it different and exciting,” says
of Strategy
WBS’s David Wilson, explaining why this book
moves the field of strategy on. “It also considers A book that could radically change how the field of
the problems of implementation as at least
equal to problems of analysis,” David continues, strategy is viewed, taught and researched, has been
“indeed, the problems of putting strategy into written by members of Warwick Business School’s
practice have been some of the major challenges
faced by strategic management.” Finally the Marketing and Strategic Management Group.
book steps outside traditional management
disciplines and incorporates views on strategy
Creativity and strategy their independence and creativity but allowing
drawn from history, philosophy, theatre and
One of the case studies included in David them to market as a group.
media studies.
Wilson’s book Images of Strategy, concerns Matt For example, a radio station, a ticket seller
Traditionally, the field of strategy has been
Hardisty. Matt worked as a ‘coolhunter’, and clothing labels all share what Matt calls a
dominated by material from the United States
helping companies identify what would be ‘cool’ ‘tribal frequency’ and can benefit from creating
and has been predominantly about planning
in a few years’ time, before commencing the MA a brand equity. They can market through the
and analytical frameworks. Strategy has been
in Creative and Media Enterprises at Warwick. internet together, benefiting the sites they
about finding and exploiting the gaps between
While at Warwick and subsequently he formed market through, but with all of the
balance and imbalance for financial gain. With
two new companies: folkdevil.com and Naked entrepreneurs maintaining their own
some notable exceptions (for example the work
Communications. independence.
of Henry Mintzberg and colleagues) traditional
“What we do at Naked is to help our clients “The individualised approach is difficult for
material has generally concentrated on
think of themselves as not contained within traditional strategists to map and Images
planning and analysis.
traditional boundaries or channels,” explains explores this. People at senior levels in media
Matt. “We network a web of channels into a industries create a real challenge for strategists
‘Images of Strategy is a dynamic family that helps develop complex to understand,” explains David Wilson.
must read.’ relationships with customers to convey a sense
of something truly different in order to capture
“However, we have a lot to learn from each
other and this widening of the boundaries of
R Edward Freeman, Darden University of Virginia people’s imagination.” His companies bring strategy can only be positive for strategists.” g
creative entrepreneurs together, maintaining
“Our book is European and skewed towards the
practice of strategy. It locates strategy
historically - from the Greeks onward,” explains
David. “This approach to strategy can be a
capstone to a range of organisation issues - all of
which are currently taught separately - but the
Images approach shows how closely you can mix
a range of teaching disciplines. It will persuade
students to think about strategy and
management in an inter-disciplinary way and
should persuade those who teach it around the
world to expand their vision.”
The original idea had been to have a case
study at the end of the book to which all the
authors provided a view from their own
perspective. However, in another twist on
traditional immobile texts, it was decided to
include the case study but to have the authors’
views of it on a web page. In this way the
authors can update their views over time. They
can feed in current research thought, as well as
comments and arguments they receive from
readers of the book.
Unlike most strategy books, Images concludes
with a chapter that gives a vigorous critique of
many assumptions that underpin traditional
strategic theories and it raises a whole series of
questions. The web site will allow dialogue
Some of the ‘Images’ authors at work (from left) Dr Chris Smith, Professor John McGee, Professor Andrew
between readers and authors to develop. g Pettigrew, Dr Duncan Angwin and Professor David Wilson.

8. 8 | focus on strategy
strategising/organising
in the modern organisation
ANDREW PETTIGREW
PROFESSOR OF STRATEGY & ORGANISATION
ASSOCIATE DEAN RESEARCH
WARWICK BUSINESS SCHOOL
The field of strategy has changed and must keep changing. We have THE NEW EMPHASIS FIRST of all redefines
structure and relabels it with the broader label
moved from an era when strategy was much about static notions of of organisation. In this formulation,
the competitive position of the firm, to an era when strategy is organisation still includes the form of the
organisation but also now incorporates a new
fundamentally an innovation contest where the bureaucratic and preoccupation with the relationship between
form, processes, systems and organisational
inflexible will not survive. In this era, the old dictum that strategy boundaries. With this new more inclusive view,
drives structure has been superseded by a new emphasis on the organisation moves from being the poor cousin
of strategy to being an equal partner. As John
relationship between strategy and organisation. Browne, the CEO of BP has put it ‘Our strategy
is our organisation’ (Organising for Growth by
Jonathan Day, The McKinsey Quarterly,
2001, Number 2,4-5). Others may not
yet be prepared to go this far but there
is certainly a wider recognition than
ever before that strategy and
organisation form an inseparable
duality.
Secondly, our latest research on
innovative forms of organising makes it
clear that static nouns can no longer
capture the realities of how many firms
are attempting to make and execute
strategy. We prefer therefore to use the
more active verbs of strategising and
organising to capture these more
dynamic processes of setting direction
and executing that direction.
Strategising and organising are now
better characterised as continuous
processes than as mechanistic
movement from one state or condition
to another.
What is driving the new emphasis
on Strategising/Organising?
As ever, big questions are rarely
answered by single causes. There appears
to be a convergence of factors economic,
technological, informational and political
driving the emergence of innovative forms of
organising. Heightened international
competition, efficiency drives to reduce costs,
pressures to concentrate manufacturing
resources regionally and to simplify complex
matrix structures are all impacting firms.

9. nexus | 9
Technological change is shortening product Warwick research suggests no simple pattern of The modern firm is seeking to empower
life cycles and pressuring firms to build novel practices. Instead firms are experimenting and hold the ring, to be simultaneously
organisations with greater flexibility. Advances with different views of what strategy is and decentralising and centralising. This duality is
in information technology and communications learning by doing as they try out alternative creating complex political dynamics in the
are enabling network formation. This facilitates mechanisms to make strategy on a continuous multi business firm. A lot of these dynamics are
utilisation and permits a quality and quantity of basis. So one can see within the same firm focused around and triggered by the loose-tight
hierarchical control and lateral knowledge nature of the emergent
sharing previously considered impossible.
These changes in organising have often
‘Evidence of forward looking critical strategy processes in
many of those firms.
achieved their objective of creating greater
organisational flexibility and sometimes
reflection is much part of the strategy Different business
units within the same
creativity but one of the knock-on effects has
been to challenge some of the old orthodoxies group at Warwick.’ firm often have
different cycle times,
of what strategy is and how it should be made different markets and
and executed. The direction of change at this annual budgetary processes that incorporate resources and varying views about and needs
moment in time appears to vary from firm to some hints of strategy co-existing alongside for strategic thinking. They may also have
firm. meta level strategy thinking at different views about what issues are worthy of
In many firms large planning the very top of the firm. organisational attention, prioritisation and
departments have One company has resourcing. The spotting and resolution of these
long since described the outputs of this issues then becomes a focal point for strategic
been meta level thinking as the leadership, an issue which I hope to return to in
dismantled creation of a set of rules or a forthcoming issue of Nexus. g
but a form of principles which provide an
planning may ongoing systematic bias to
still exist. In top decision making
rejecting processes. These biases
rigorous annual become crucial in shaping
planning cycles direction. They help in
firms have also setting priorities, in Further reading
rejected the spotting issues for
mechanistic view decision making and in The Handbook of Strategy and Management
of strategy that filtering out strategic (Pettigrew, Thomas and Whittington,
underpinned the initiatives which 2002) provides an up-to-date and critical
numerically based emerge from assessment of most of the existing fields of
strategy process of increasingly strategy and at the same time helps to
the past. With the decentralising develop some new sub fields in the
demise of business units. discipline. The recent research study
mechanistic planning The strategy/ published, The Innovating Organisation
processes has also operations duality (Pettigrew and Fenton, 2000) offers a first
come scepticism of creates its own look at the European findings of a global
long distance or blue demands and its study of new forms of organising and
sky strategy making. own dynamic. The blurring of the company performance. The sequel to this
Firms may also be distinction between strategy and operations book Innovative Forms of Organising
querying old distinctions means that the effective CEO has to be mindful (Pettigrew et al, 2003) provides a
between strategy and operations and seeking to and effective at both. John Browne has certainly summative account of the research and
achieved this in BP compares innovative forms in Europe,
‘Strategy is fundamentally an innovation and so has Niall
Fitzgerald in
Japan and the USA.
Andrew Pettigrew and Evelyn Fenton
contest where the bureaucratic and Unilever. It is
noteworthy that in
(Eds) The Innovating Organisation,
London, Sage Publications, 2000.
inflexible will not survive.’ both of these
organisations, Andrew Pettigrew, Howard Thomas and
strategising skills are Richard Whittington (Eds) The Handbook
put in place a strategy process which is alive to as important as organisation development of Strategy and Management, London, Sage
both managerial requirements. So the skills. In both organisations there is a history in Publications, 2002.
organising/strategising duality is recent times of clear target setting and
Andrew Pettigrew et al (Eds) Innovative
complemented by the strategy/operations achievement. The strategic and the operational
Forms of Organising, London, Sage
duality. are well aligned and well aligned on a
Publications, 2003.
But what is emerging in the vacuum created continuous basis and not just at one moment in
by the challenge to the old strategy time. Richard Whittington et al (1999) Change
orthodoxies? and Complementarities in the New
Competitive Landscape, Organisation
Science, (1999) 10.5: 583-600.

10. 10 | nexus strategy
sky
HAVING WORKED IN THE Digital Pay-TV Broadcasting industry as a software
development engineer, product and project manager since 1995, I was fascinated
by the top players in the pay-TV business and wanted to understand and learn
from their most successful strategies. During this summer I had the opportunity to
do my dissertation as part of an MBA Consultancy Project in the Strategic
Planning Group of one of the most successful pay-TV operators in Europe, British
Sky Broadcasting (BSkyB).
Pay-TV has been available in the UK for over a decade and is leading the way in
high
digital TV. There are currently some 10.2 million pay-TV subscribers in the UK,
almost 45% of the entire TV households.
The potential is clear. Digital transmission opens the way for many more
channels, including interactive services and telecom applications. The challenge
for BSkyB is to make it pay. Most other operators so far have tried and failed - not
only in Britain but also throughout Europe. Today, BSkyB is the premier pay-TV
company with more than 6 million satellite subscribers (see fig 1). By exploiting
CHRISTIAN HOEFTER the digital shift in Britain more than any other company, BSkyB has underlined its
PROGRAMME MANAGER claim to be the pay-TV business model, in the UK and across Europe.
BETARESEARCH/KIRCHGRUPPE Having stated that, my MBA consultancy project focused on BSkyB’s successful
FULL-TIME MBA 2001-02 business model and its underlying strategic success factors. The project analysed
how BSkyB triumphed so quickly and so completely by looking at both the
company’s analogue and digital business in greater depth.
Since pay-TV operators, and in particular BSkyB, are dealing not only with
information and its programming, but also increasingly with sophisticated
technologies, a new framework was introduced to review BSkyB’s strategic
6.1 Fig. 1 strengths with respect to the information economy. Four strategic levels were
systematically examined - a framework developed by John McGee, Professor of
5.1 Strategic Management (see fig 2):
4.9 consumer network ‘Overall BSkyB has been
physical platforms
supply chain spectacularly successful,
technology standards
subscribers in millions Using interviews with not once but twice.’
2.4 2.3
managers within BSkyB and
2.0
1.6 documentary data collection, the primary research has highlighted specific but
1.3 1.1 quite diverse strategic key success factors for both BSkyB’s analogue era from 1989
0.8 0.7 to 1997 and BSkyB’s digital business success until now.
In addition, it was found that these factors are part of a more complete picture
BSkyB (Britain)
Canal + (France)
Canal + (Europe ex France)
KichPayTV (Germany)
NTL (Britian)
Sogecable (Spain)
Telepui (Italy)
Telewest (Britain)
TPS (France)
ViaDigital (Spain)
Stream (Italy)
of BSkyB’s strategic success, an overall ‘Sky formula’. Focused on the most essential
strategic key issues, the formula supports BSkyB’s current ambition ‘Sky to every
household’:
build penetration
build average revenue per user
minimise churn
Due to the company’s ambitious targets in the future, BSkyB’s strategy must
leverage the company’s assets to a new, unprecedented level of growth. However,
the ‘Sky formula’ will need to overcome key challenges in the future mainly related
to issues such as content, technology and policy, since these topics are always a
source of threat in the information economy.
Strategic levels Concepts Although BSkyB’s business is part of the new economy, the main
characteristics of positive feedback, such as lock-in effects, network effects and/or
Consumer Network externalities demand-side economies of scale were not really relevant for the company’s success.
Network Expectations management However, some mechanisms of positive feedback are starting to kick-off and may
Customer lock-in & switching costs enlarge BSkyB’s subscriber
Physical Open vs closed platform ‘You may not want it but you will be base further.
Overall, BSkyB has
Platforms Build alliances for positive feedback
Technology lock-in & switching costs unable to avoid the service because been spectacularly
successful, not once but
Supply
Chain
Open vs closed value chains
Alliances & collaboration soon every home in Britain will have twice. Its ‘Sky formula’ has
Supplier lock-in & switching costs worked brilliantly so far.
Technology Versioning of standards
a Sky TV channel beamed into it.’ Even if history is not an
Standards Evolution vs revolution Tony Ball, CE of BSkyB indicator of future
Costs of switching standards performance, BSkyB’s past
success and its strategic key success factors will help the company to remain the
Fig. 2
Strategic levels of network industries UK’s leading pay-TV company. The question of future sustainable growth
nevertheless remains open. g

11. nexus strategy | 11
IN A TIME OF radical change brought about by new technologies such as Internet protocol and digital
technology, firms need to acquire new capabilities in order to stay competitive. An on-going research
initiative led by Dr Qing Wang at Warwick Business School in collaboration with SPRU at Sussex
University found that a primary goal of firms when facing such radical change was to simplify.
These new technologies are so-called General Purpose Technologies (GPT), which involve high
fixed costs in invention and low marginal costs in reproduction. The expenses associated with finding
applications for them are determined by the costs of co-development with localised users. The users,
who may be individual consumers or institutions, will be
interested in the services performed and the supporting
infrastructures. Therefore radical change is defined not in
terms of change in technical characteristics, but in terms
of the discontinuous consequences to the consumers. It is
characterised by a sudden increase in complexity along
two dimensions. The invention of a GPT represents
complexity in depth, whereas its integration with the
localised and idiosyncratic infrastructure and consumer
demographics denotes complexity in breadth.
To understand the implications for firms, we need to
turn to the demand side of this equation. The invention
of a GPT may result in a rapid increase in the producer
capacity, for instance the capacity to provide speedy and
potentially unlimited access to information. However,
this rapid increase in capacity will not be sustainable
without matching demand from the consumers.
Meanwhile, matching consumer demand for radical
dynamic capabilities
innovations is difficult. In many instances, this involves a
process of co-evolving and co-learning between the
producers and the consumers. The salient question is
in a time of
how to solve the tension between capacity and variety
that is inherent at this intersection. Firms which have
invested heavily in a GPT may find themselves sitting on
unutilised capacity with the painful realisation that the
capability that enabled them to occupy a leading position
in a GPT, would not automatically give them the
advantage when developing user-related applications.
radical change
A closer look at the consumer behaviour in adopting
radical innovation will indicate that the answer lies in the marketing capability. Satisfying one’s ever- DR QING WANG
evolving demand is not without cost to individual consumers, as it requires learning about new LECTURER IN MARKETING &
product categories, often through inference to existing categories. As radical innovations represent STRATEGIC MANAGEMENT
mental leaps, inference to existing categories can be very difficult for potential users. In such events, WARWICK BUSINESS SCHOOL
there exists a strong “learning-through-using” effect where a significant amount of new product
knowledge is acquired during rather than prior to using a new product. Consequently, consumers’
perceptions and preferences are expected to change continuously through using. Further reading
Our research findings have at least two Wang and von Tunzelmann Complexity and the
‘The question is how to solve implications. Firstly, continuous functions of the firm: breadth and depth, Research
involvement with users and developing long Policy, 2000, Vol. 29, 805-818.
the tension between capacity term relationships with valued customers is
one, if not the only, effective way of building von Tunzelmann and Wang Capabilities and
and variety.’ competitive advantage. Secondly, branding Production Theory, Structural Change and
and labelling can be extremely powerful in Economic Dynamics, 2003
influencing consumer perception of a radically new product towards more familiar categories. For
von Tunzelmann and Wang Dynamic
example, the application of digital technology in image
capabilities in the context of radical change,
processing has resulted in several new product categories,
Journal of Management Studies, (in revision).
one of which is the digital camera. Its adoption is largely
enabled by the perceived similarity of functional and
aesthetic design to the analogue camera, which is
carefully crafted into the new product.
To conclude, firms will have significant competitive
advantage in the new markets if they incorporate critical
technical and user knowledge into the new application in
such a way that it simplifies the learning requirement for
the consumers. The ability to identify such critical knowledge
and to incorporate it into the design and development of new
applications constitutes the dynamic capability of firms in a time
of radical change. g

12. 12 | nexus
The Warwick Hot off the Press
The Handbook of
Strategy and
Debate Management
(Pettigrew, Thomas
and Whittington,
2002) provides an
up-to-date and
AS STOCK MARKETS ARE plumbing successive lows, the warnings of double-dip recession and an era of critical assessment
deflation are getting louder. Even if the current wave of audit scandals has so far been US-based, the loss of of most of the
credibility for the audit and accountancy profession has been worldwide. existing fields of
There is consequently a renewed interest in strategy and at
the importance of regulation for the conduct of the same time helps
orderly markets and the enforcement of to develop some new sub fields in
rigorous audit across the corporate world. The the discipline.
future of regulation and of the accountancy
profession has therefore become of more than Images of Strategy, edited by Professors
specialist interest. David Wilson and Stephen Cummings,
So it is with great pleasure that we will be published by
announce a joint AMBA-Warwick Business Blackwell in March
School event to be held on 3rd March at 2003. Contains
Warwick Business School on these themes. Sir contributions from
David Tweedie, the Chair of the International the editors as well
Accounting Standards Board, will be the as from most of
keynote speaker at The Warwick Debate. He WBS’s MSM
will be joined by Peter Wyman, chairman of the Department and
UK’s Institute of Chartered Accountants and a some past
senior partner at PricewaterhouseCoopers. The members of the
event will be chaired by Professor Keith Hoskin, Department.
of the WBS Accounting and Finance group.
The Warwick Debate will be held on 3rd
March 2003 at Radcliffe House, University of
Warwick.
For more details
w www.wbs.ac.uk/alumni/forthcoming.cfm g Sir David Tweedie.
WBS building continues evolution WBS in Dubai
partnership
WBS HAS TEAMED UP with Knowledge Horizon, a
United Arab Emirates-based education agency
recognised by the UAE Ministry of Higher
Education and Scientific Research, to promote
the Warwick MBA. The first intake of students,
initially numbering around 25-30 and recruited
from the UAE, will begin study by distance and
online learning in January 2003.
Dr Ma’en Al Qatamin is Managing Director
of Knowledge Horizon and studied for his
doctorate at WBS. He explained: “We are proud
to be associated with a name of quality such as
WBS. The Warwick MBA is globally recognised
and internationally accredited, and WBS has
won acclaim and approval from all the leading
national and international assessors and
Designed by the Tate Modern architects, phases one and two of the new WBS building have been completed and
accreditation bodies.” g
the Dean anticipates commencing phase three in the near future.

13. alumni profile | 13
Warwick insight from house to mouse
BY PAM BARNES
RICHARD WYATT-HAINES (DLMBA 1997) and Simon Ricketts (DLMBA 1998)
named their company Warwick Insight, reflecting their strong links with WBS.
“We owe a lot to Warwick and are proud of the place,” affirms Richard.
Established in 1998, their consulting practice focuses on strategy, strategic
change and organisation performance management. Their relationship with
clients is very much a partnership approach. As Richard explains, “With
strategy and strategic change,
there is always stress and pain
to be suffered. Clients need
‘The world is dynamic and
someone alongside them in a academics enable us to
partnership role with the
enthusiasm and experience to see the issues and make
support them through.”
Richard firmly endorses sense of the chaos.’
Andrew Pettigrew’s views on
the changing role of strategy. “Strategy is about a way of behaving, it is not
about a document. It is about how you think and behave within an
organisation, so that people understand the reason for their role and how it fits
into the strategic direction of the business. There cannot be a five-year plan in
Simon and Richard with that mouse.
today’s environment; traditional planning methods can constrain and lead to
missed opportunities. Strategy must be used as an enabler and decision making filter, rather than a
constraint.”
Simon and Richard strongly believe in keeping up to date with academic thinking at Warwick. “We take
academic thinking and ideas and bring them alive and make them practical for clients,” says Richard. “The
world is dynamic and academics enable us all to see the issues and make sense of the chaos. At Warwick
Insight we take that clarity and deploy it appropriately and sensitively to
‘We are taking academic thinking and create value for the client. Warwick gives us that foundation by providing
access to leading edge thinking and approaches to strategy and change
ideas and making sure we bring them management.”
The Warwick association features strongly in the story of their
alive and make them practical for clients.’ partnership. Although they both did their MBA by Distance Learning at
WBS, they had never met until Simon’s CV arrived on Richard’s desk at his
previous employers, an accountancy practice. With the Warwick connection, Richard said, “I just had to meet
him.” The two hit it off immediately but soon found working within an accountancy firm too constraining.
From very small beginnings, working out of Richard’s back bedroom and the cupboard under Simon’s
stairs; four years later their team of eight is based in the South-West on the edge of Dartmoor, in premises
with meeting, training and planning facilities. They consult for clients such as Walt Disney (Europe, Middle
East and Africa), Liverpool Victoria, Department of Health, the Financial Services Authority and most
recently, an investment bank in Russia.
The WBS magic worked again when, on a course run by Robert Johnston of the WBS Operations
Management Group, they met a delegate from Disney. Richard explains, “She asked us to do a single
workshop and from there it has grown into business with four or five divisions. It was a massive leap for us.
Last year we doubled our income and we hope to increase by 50% again this year. Recommendations and
repeat business form the bulk of our work and over this year we have gained several blue chip clients.”
Richard and Simon agree, “The biggest constraint to our growth is the availability of the right people with
the right behaviours and experience. Highly bespoke consulting demands people with a special mindset and
the ability to draw client sensitive solutions from both practical and academic experience and knowledge.
Perhaps there are other WBS students and alumni who feel they have what it takes...”
Check out their web site on w www.warwick-insight.co.uk g