Alumni Magazine for Durham Business School Autumn 2011 Issue 20

IN THIS ISSUE: TRUST: THE BUILDING BLOCKS AND THE REPAIR KIT//VIRTUAL MENTORING//QUEEN’S CAMPUS DEVELOPMENTS//THE HOLY GRAIL OF SERVICE EXCELLENCE

“Securitisation – Taming the risksor camouflaging them?”see page 18

agora NEWS Business School

For further information about our short courses, please contact:Maria Arkless, Client Services Administrator, Global Learning Centre,Durham Business School, Mill Hill Lane, Durham, DH1 3LB, UKE: global.cpd@durham.ac.uk www.dur.ac.uk/dbs/glc/short-courses

50% Discount for AlumniOn Global MBA and MA short coursesBuilding on our innovative blended learning model, we are proud to introducethe Global Executive Learning Programme (GEL) and the Global Manager’sToolkit. These two short courses offer students the opportunity to sample ourMBA and MA programmes without being tied to undertake the full degree.

We offer a rolling cycle of Open Enrolment options every year, and our shortcourses are available on both taught and distance learning bases making ourGlobal Programmes flexible enough to fit into the busy demands of modern life.

Global Manager’s ToolkitAimed at graduate managementtrainees and managers who are at an early stage of their career, the globalManager’s toolkit offers a selection of short courses from our highlyacclaimed MA in Managementand MA in Marketing programmes.

As the programmename suggests, theseshort courses have been specificallychosen to equip managers with a set of vital skills that cross the corefunctional areas of business, as well asspecialist areas of business practice.

Courses available as part of our globalManager’s toolkit are taken from our ‘conversion’ Part-time Mastersprogrammes, and are suitable foreveryone – irrespective of theirdisciplinary background.

Global Executive Learning(GEL) ProgrammeDrawing modules from our acclaimedGlobalMBA, the GEL Programme bringsyou a specially selected suite of shortcourses from across the functionalareas of business, developed anddelivered by leading Durham faculty.This is your opportunity to sample ourMBA programme without being tied toundertake a full degree, or to top upyour previous MBA with the very latestmanagement knowledge and insight.

Our short course options are availableon a distance learning basis. So,whatever your motivation for joining us, the GEL Programme offers aninnovative range of options that are accessible wherever you are in the world.

FeesThe prices for our courses are verycompetitive and for alumni we offer a fantastic 50% discount:

Global Executive LearningStandard price £845Agora members £425

Global Manager’s ToolkitStandard price £710Agora members £355

Business School

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Dean’s Welcome

Our number one priority is to deliver afirst class student experience. To do thiswe will continue to strive to deliver thehighest quality teaching to our studentswhilst providing excellent facilities. Our state of the art Queen’s campusalready boasts some of the bestfacilities the University has to offer. The planned construction, renovationand reconfiguration of the Mill Hill Lanebuilding will provide a great deal morecommunal space for students to unite,but will also have high tech teachingfacilities. This development is due tostart in April 2012 and as we enter thefinal stage of planning for the project, I welcome any input from friends andsupporters of the School.

Along with our focus on teaching, DBS has always had a reputation as aresearch-led institution and I’m pleasedto report that we have more than livedup to our reputation this year. In recentmonths a number of DBS researchershave had publications accepted at top-ranking journals. Professor LaszloPolos successfully co-authored a paperon organisational mortality that will bepublished in Administrative ScienceQuarterly. It proposes innovativetheoretical framework that casts newlight on the contributory factors andvarious relationships that account fororganisational failure. Dr Birgit Schyns,

meanwhile, has co-authored a paper on teaching implicit leadership theories.The article will appear in The Academyof Management Learning and Education,and discusses a novel approach toteaching in this area, incorporatingdrawing exercises that illustrateindividuals’ diverse understanding of leaders and leadership. In addition to this, an article co-authored byProfessor Parantap Basu will appear in the Journal of International Moneyand Finance. His paper addresses thearea of uninsurable risk by examiningmarket structures where private riskcannot be insured or can only bepartially insured. These are by nomeans the only successes of this kind,as academics from across the Schoolcontinue to produce work that reflectsthe quality of research being conductedhere at Durham.

Some of the research articles featuredin this issue include ‘Building andrestoring organisational trust’ by DrGraham Dietz (page 8), ‘The Holy Grail of Service Excellence’ by FionaUrquhart (page 26) and ‘Securitisation– taming the risks or camouflagingthem’ by alumnus Russell Bradshaw(page 18). Should you wish to learnmore about our Research Centres, ourResearch Officer, Martyn Griffin wouldbe delighted to take your call.

This year has been as eventful as anyand in this issue we share with yousome of the School’s highlights, whichinclude the MBA 25th Anniversarycelebrations sponsored by AlcatelLucent, the expansion of the School’spresence at Queen’s Campus and thelaunch of our International CorporateForum in one of our key internationalmarkets, Shanghai.

Finally, following three successiveimprovements in the Financial TimesGlobal Full Time MBA rankings inrecent years, we were delighted to seeour Masters in Finance programmespositioned 28th in the world when theFinancial Times published the results of their inaugural ranking of Masters in Finance programmes in June. This isa new addition to their ever expandingportfolio of Business School rankingsand aims to provide an evaluation of thebest masters’ programmes in financeoffered by leading business schoolsacross the globe. This confirms that our programmes are among the best in the world, an excellent result for both the School and the University.

Professor Rob Dixon, Dean

Following a chaotic year for UKuniversities, and considerable pressand political speculation over HigherEducation reform, fair access and visarestrictions, Durham Business Schoolis well positioned for the challengingtimes ahead.

University NewsLIGHTS, CAMERA, ACTION!Durham had a touch of Hollywood glamourearlier in the summer when actor RussellCrowe took time out to pass on his actingtips to students at the University. Crowewas visiting Durham following a long-standing invitation from his friend, theUniversity’s Chancellor, Bill Bryson.

Crowe commented: “I had a great timeand there are some really talented studentswho were very enthusiastic. It was a lot offun. Every part of the description of Durhamgiven to me by Bill was true. It’s beautifuland the Cathedral is really impressive.What a place to learn.”

NEW ANCIENT EGYPT GALLERY OPENSIN DURHAM The new Wolfson Gallery of Ancient Egyptin Durham University’s Oriental Museumwas opened on 23 July by Craig Barclay(curator of museums at DurhamUniversity). The gallery has been fundedby the DCMS/Wolfson museums andgalleries improvement fund and theFriends of the Oriental Museum. TheOriental Museum has arguably the bestEgyptian collection outside the BritishMuseum but only a small proportion of the collection can be on display in Durhamat any one time (currently part of thecollection is in Taipai). Well worth a visit!

School NewsSCENARIO THINKING – IN PRACTICE Co-authored by Professors George Wright,DBS and George Cairns, RMIT University,Australia, “Scenario Thinking: Practicalapproaches to the future” provides a practical, step-by-step guide toimplementing the “intuitive logics”scenario method as well as showing how the conventional scenario method of intuitive logics can be augmented.Published by Palgrave Macmillan, 2011 – ISBN: 978-0-230-27156-2.

PROFESSORRICHARDCHAPMAN It is with deepregret that weannounce the deathearlier this year (15April) of ProfessorRichard Chapman.Richard’s longassociation with

Durham University began in 1971. As well as a spell as Dean of the Faculty of Social Sciences, his varied rolesincluded Emeritus Professor of Politics and Honorary Research Fellow at DurhamBusiness School.

SCHOLARSHIP AWARDS We are delighted to announce the namesof the winners of the Alcatel Lucent MBA Scholarship and the FD Ellis MBA Scholarship.

Sebastian Wolfgarten, who is based inFrankfurt, takes up his place on the full-time programme in Durham later this yearthanks to the generous sponsorship ofglobal communications company AlcatelLucent. In the same cohort will be the

winner of the FD Ellis Scholarship – IsabelValesco. Isabel, a Colombian mechatronicsengineer, lives in Bogota. The FD EllisScholarship is named in memory of thefather of Dr. David Ellis, a former DurhamUniversity student who is now a leadinginternational economics expert and amanaging director in a top Londonbusiness advisory firm.

CORPORATE FORUM GOES TO CHINADurham Business School is building on the success of its Corporate Forum eventseries, usually hosted at the School inDurham, and launching it on a globalscale, with annual events taking place in key international business hubs.

Recognising the importance of China inthe global economy, the first event tookplace in Shanghai on 21 July 2011.Generously sponsored by one of theSchool’s corporate partners, the ChinaThree Gorges Corporation, this interactivepanel event was hosted in collaborationwith partners Fudan University and theHurun Report.

As well as hearing Professor AlessandraGuariglia, DBS, speak on the topic ‘Growth and sustainability of Chinese firms: the role of productivity andInternationalisation’, attendees had theopportunity to meet members of globalfaculty, students and alumni.

With journalists present from several of the major Chinese newspapers, includingThe Shanghai Morning Post, The XinminEvening Post and The Shanghai BusinessDaily, this successful event will furtherbuild upon the School’s corporate relationsin the country, as well as establishing newlinks and deepening existing partnerships.

CONFERENCE ON THE CHINESECAPITAL MARKETIn collaboration with the European Journalof Finance (EJF), the China Developmentand Research Centre at Durham BusinessSchool is to host a conference on 3-4September 2011 on the topic of Chinesecapital markets. Keynote speakers include:Jun Qian, Boston College and WhartonFinancial Institutions Centre and HuiyaoWang, Harvard University and Centre forChina and Globalization.

NEW DOCTORAL TRAINING CENTRE IN ISLAMIC FINANCEBuilding on its expertise in Islamic finance and business related research, the University has launched a new doctoraltraining centre. A collaboration betweenDBS and the School of Government andInternational Affairs, the Durham Centrefor Islamic Economics and Finance beginsoperating in the autumn.

Durham has been a centre for research in Islamic finance for over 25 years, with a significant history of PhD study. The new centre will build on this success andthe international popularity of the annualDurham Islamic Finance Summer School.

5news news news news news news news news 76

graduates understand the true natureof different jobs and identify the careerpaths that most suit them. One of themost important things when planning a career is to research the options that are available in the market. ‘10minutes with’ houses a vast number of interviews with director levelindividuals and provides valuableinsight into the true nature of differentjobs. Recent uploads have includedinterviews with Head of Liquidity –Shell, Head of PR – Microsoft Xboxand Head of Talent Management –Panasonic. Full details are available on Agoraweb (www.agora.org.uk).

The Agora team works closely withother departments across the School toenhance the student experience. Oneof our student engagement initiativesis the DBS Mentor Scheme and in thisissue we announce this year’s ‘Mentorof the Year’ as well as sharing apractical guide on how to get the mostfrom virtual mentoring (page 16).Thank you to alumna Nicola Shearerfor providing this feature.

Another exciting student activitylaunched this year was the Class Gift.Through a series of charity events, thecurrent MBA cohort has raised moneyto partially fund an MBA scholarshipfor the next cohort. We look forward to welcoming new student Sam Strootwho has been awarded the 2010/11MBA Class Gift Scholarship.

As Professor Dixon mentioned in hisDean’s message, the development of the Mill Hill Lane building is due to start early 2012. As part of ourfundraising campaign we are invitingalumni to sponsor a seat in one of ournew, state of the art lecture theatres.Alumni and supporters of the Schoolwho generously donate £250 will behonoured with a named plaque on theirchosen seat for five years. We are

currently designing an interactive toolwhich displays the lecture theatre inquestion and enables you to select aseat and write the message you wouldlike to be seen on your plaque. Thispart of the website should go live lateAutumn so keep your eyes peeled.Should you wish to share ideas andthoughts on this initiative pleasecontact me via email:dbs.alumni@durham.ac.uk

Since the last issue went to print wehave welcomed a new member to theteam. Many of you will have alreadymet Hayley Ferguson (at least virtually)who joined us earlier this year fromThe Centre for Life in Newcastle. She is a fantastic addition and hugeasset to the team and I am sure youwill all make her feel part of theDurham family.

We hope you enjoy this issue, whichhas the usual features such as theAlumni Q&A, book review and photosfrom our Summer Graduation BBQ aswell as much, much more. As ever wehope you enjoy reading it and welcomeany feedback or suggestions you mayhave on improving our communicationto the Agora network.

Finally a quick heartfelt thank you for all alumni and staff contributions to Agoranews in 2011.

Alexandra SedgwickAlumni Relations Manager

Alumni – UpdateA very warm welcome to the Autumn edition of Agoranews. Since thelast issue, the Agora team have been hard at work exploring ways toenhance our alumni provision and I am delighted to introduce some of the resources and promotional discounts that we have acquired for the benefit of our members.

You may recall that in a previous issue we highlighted the launch of the Global Learning Centre whosephilosophy is to provide globalbusiness with innovative solutions tolearning unconstrained by internationalborders and time zones. In view ofDurham’s commitment to lifelonglearning, the GLC have opened upsome of their short courses to alumni,with a significant 50% discount toDBS alumni. More information andcontacts details can be found on theinside cover of this issue.

The world of work is changing fast and continuing economic turbulencehas created significant challenges forjob seekers at all levels, irrespective of qualifications and experience.Employees can no longer expect towalk into a ‘job for life’ and it istherefore important that you are‘Career Active’, pro-actively managingyour career using a career plan withrealistic goals and SMART objectives.Understanding the different types ofcontemporary career paths and how to navigate their complexities is vital.ResilientExec is a powerful online toolprovided by HR Consultants Pennawhich can help you develop your careerin the direction that is right for you.

Recently acquired for DBS alumni, thisresource offers a range of informationavailable through powerful databases,articles and podcasts as well as linksto external industry-recognised sourcesand useful interactive exercises. Thereis access to a wealth of informationthrough premium research databasessuch as Lexis Nexis and OneSource, as well as exercises to help you tounderstand your career drivers anddiscover the right career path andultimately, the right job. Tools available

include Job Spider, a powerful onlinejob-search tool that will give youaccess to more than 800,000 jobopportunities. There are also links toexternal resources such as relevantindustry websites and newspublications. Enjoy using the site and remember to be career active!

Other resources recently obtained forAgoraweb include ‘10 minutes with’which is an educational websitedesigned to help students and

Hayley Ferguson,Alumni Coordinator To gain access to all alumni resources, including

ResilientExec, contact dbs.alumni@durham.ac.uk

The power ofcohort connectionsWhen Pete Watson, Jim Brown and PhilRichardson signed on for a part-time(Executive) MBA in 2006 they werestrangers. Each had expected the MBAto change them; they knew that wouldhave to work hard, but that they wouldlearn a lot.

All three had chosen DBS for itsreputation, rankings and location.

However they hadn’t factored in the restof the cohort, the people they’d get toknow whilst studying and the impactthat they would have on their future.

Pete, Jim and Phil became good friends,regularly meeting for a beer after classesdiscussing, amongst other things, theirbusiness development ideas.

Subsequently, Pete decided to combinehis interim management businessPeople Boutique with Jim’s companyInterim Finance FD North East, togethercreating investment readiness businessSherpa Business Consultancy whichspecialises in helping companies raiseventure capital and execute theirbusiness plan.

Meanwhile Phil’s interests lay in cloudcomputing and, realising how few suchspecialist companies there were, hedecided to set up Atlas InfrastructureManagement Limited. This is where the DBS connection really paid off.

With the help of Pete and Jim’scompany Sherpa, Phil raised the money(£250K) through local venture capitalfirm North Star and Angel investors.Now his business, offering pay-as-you-gohosted desktops which can make 70%power savings and a 20% saving onoverall IT spend, has clients as far afield as Italy.

Pete says: “I didn’t anticipate findingfuture business partners in theclassroom; however the DBS networkwas invaluable to us.”

For more information on AtlasIMcontact: pete@atlasim.co.uk

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Trust: the building blocksand the repair kit.Now, more than ever, managingtrust in the workplace is an essentialmanagement competence. Knowinghow trust is built, supported andrecovered helps to nurture positiveworking relationships, and trustingrelationships at work have beenproven to deliver real bottom-linebenefits. A trusted organisation ismore likely to produce superiorperformance and to enjoy repeatbusiness with customers andinvestors, as well as be a great placeto work. A trusted organisation isalso more likely to recover effectivelyfrom a crisis. Yet, while trust is astrategically valuable asset, it is also elusive and in short supply in many organisations.

Research and consultancy at DurhamBusiness School is at the forefront ofwork on trust. A new report co-authoredby Dr Dietz with his colleague Dr NicoleGillespie (University of Queensland,Australia) and published by theInstitute of Business Ethics (IBE),provides insights and guidance for any organisation that needs to (re-)build trust.

The report, Building and RestoringOrganisational Trust, starts from first principles, and shows how‘trustworthiness’ is made up of threecharacteristics: ability, benevolenceand integrity. A trustworthyorganisation is one that operateseffectively (ability), acts with dueconcern for the interests of itsstakeholders (benevolence), andconducts itself honestly and fairly(integrity). This, then, is the first trustchallenge for businesses: building areputation for trustworthiness based

on demonstrating these threecharacteristics, consistently andwillingly, day in and day out.

It follows that getting any of the three characteristics badly wrong candamage a trusted reputation. That’swhen understanding trust repairbecomes critical, because the qualityof the repair effort can make or breaka firm – just ask News International.

Sponsored by PricewaterhouseCoopers(PwC), the specially commissionedreport was published in June this yearby the Institute of Business Ethics (IBE:www.ibe.org.uk). Established in 1986to encourage high standards of businessbehaviour based on ethical values, theIBE encourages high standards ofbusiness behaviour based on ethicalvalues, and offers practical andconfidential advice on ethical issues.The parallels with trust are obvious.

But trust is not just a matter of ethics;the report provides compellingresearch evidence that trust fostersand sustains positive employeeattitudes and behaviours, underlieseffective working relationships, andcontributes to superior levels oforganisational performance. In short,trust-based business costs less, and ismore productive and more enjoyable.

In his foreword to the report, RichardSexton, Head of Reputation andPolicy, PwC UK notes that as well as being insightful, this report is also timely. Recent high-profile events have created a perception of a disconnection between corporate

behaviour and ethical conduct, whichin turn has triggered a sense thatpublic trust in business has declined.

“This rising tide of distrust shouldconcern us all”, he writes. “Withouttrust, life for any organisation becomesmuch more difficult. Everything it saysor does will be called into question.People will be suspicious of itsmotives. Ultimately they may refuse to share information or even to dobusiness with it”.

Combining cutting-edge academicresearch on the ‘science’ of trust withprominent case studies of trust failureand trust repair (including examples

from BP, Mattel Toys and the BBC),Building and Restoring OrganisationalTrust will be of interest to anyone whois responsible for building, enhancingor recovering trust within theirorganisation – whether they are leaders,managers, staff representatives oremployees. The report is especiallyvaluable to anyone working in Business Ethics/ Compliance, OrganisationalDevelopment, HR and Public Relations,as well as managers, lawyers andconsultants whose work is driven by a concern for ethical working practices,organisational reputation, and corporateresponsibility.

Dr Graham Dietz, co-author of Building and Restoring Organisational Trust, is aSenior Lecturer in Human Resource Management and Organisational Behaviourat Durham Business School. Prior to this he worked at Erasmus UniversityRotterdam, and the London School of Economics where he completed his PhD.

His research focuses on trust repair after organisational failures, as well as trust-building across cultures. He also conducts research into the impact of HRM on performance. He has published over 15 articles in leading internationaljournals, and is a regular speaker on trust.

G R A D U AT I O NHow does that A-ha song go? – The Sun Always Shines onTV! It appears that the sun always shines on DBS SummerGraduation Day too (well, nearly always!)

DBS graduates for the summer ceremony once more enjoyedthe magnificent setting of Durham Cathedral for their specialday – how many other Universities can boast that they holdtheir celebrations at a World Heritage site?

This year’s summer graduation marked the final set ofceremonies at which Chancellor Bill Bryson will preside. He will step down at the end of this academic year havingheld the post since April 2005 and doing a wonderful job as a great ambassador for Durham.

Following the formalities at the Cathedral the new graduatesand their family and friends made the most of the sunshineby enjoying a barbeque back at the Business School.

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Key to the authors’ thinking is a modelin which there are six elements thatcontribute to an organisation’strustworthiness. These are:

1. Leadership and managementpractices (i.e. role-modellingacceptable thinking and behaviour)

2. Strategies, including for finance,sales, marketing, operations andHR (i.e. setting priorities)

3. Cultural norms, beliefs and values(i.e. a shared understanding on how to think and act)

4. Structures, policies and procedures(i.e. constraints and incentives onhandling work tasks)

5. The external governance regulatinghow the organisation can operate(i.e. externally-imposed constraintsand incentives)

6. Public reputation (i.e. how theorganisation is presented in themedia and by industry bodies).

Not only do these six elements sendout signals about the organisation’strustworthiness, but they are alsopowerful influences on how employeesundertake their work tasks. The report shows how each element can be configured to encouragetrustworthiness, and discouragemalfeasance and incompetence. That’s the ‘building’ part.

The final part of the report providespractical guidance for trust ‘repair’following a crisis. The authorsrecommend a four-stage response,with a range of tactics and options foreach stage: the immediate response, a diagnosis, reforming interventionsand finally an evaluation of progress.They discuss different repairresponses, highlighting both good and poor practice. Reading the reportwill help prepare managers to dealwith trust failures, and to consider inadvance what responses are requiredto minimise the impact.

But trust is a complex idea, and so the report is not a simplistic how-to’guide. The authors do not shy awayfrom addressing some of the very real paradoxes and contradictions inbuilding and repairing trust. Insightsfrom practitioners who have livedthrough major trust repair effortsprovide guidance for reflection andaction. The report is already beingdistributed widely within many of the IBE’s leading corporate clients.

The full report can be purchased from the Institute of Business Ethics(£25 to non-subscribers, £12.50 to subscribers). Available fromwww.ibe.org.uk

To discuss your trust challengeswith Dr Dietz contact him on+44 (0) 191 334 5401, orgraham.dietz@durham.ac.uk

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As part of the University’s 2020Queen’s Campus development strategy,Durham Business School will have anincreased presence at Queen’s Campus,from Summer 2011, with a significantgrowth in student and staff numbers,new programmes of study at all levelsand a corresponding development ofteaching and research space and social facilities.

August 2011 saw the launch of theground-breaking KPMG new schoolleavers’ programme in accountancy, the first of a number of new programmedevelopments. This will be followed inSeptember 2011 by new 3 and 4-yearundergraduate courses in business and marketing, including innovative 4-year courses such as the MMarketingand MBus degrees combining anundergraduate and masters course inone. These will be followed in 2012 bya new suite of undergraduate financeprogrammes including 3 and 4-yearaccounting and finance courses.

In October 2011, two new masterscourses in marketing will also belaunched at the Queen’s Campus –the MA in Marketing Managementdesigned to meet the needs of non-business graduates and the MSc inStrategic Management designed as aspecialist Masters for Marketing andBusiness graduates who want to learn,research and practice Marketing in a global context. Professionally-

recognised and business-engaged,these research-led programmes willallow students to develop a specialistskills set in Marketing and realise thevision for Queen’s as a research-ledcampus with a distinctive offeringbased on interdisciplinary researchwhich has strong links to the localregion and community as well asinternational relevance and impact.More information about all of the new courses can be found on theDurham Business School website:www.dur.ac.uk/dbs/degrees

In readiness for the new academicyear, there will be an extendedBusiness School presence on the third floor of the Ebsworth buildingand in 2012 a new 4th wing will beadded to the Wolfson ResearchInstitute. This major development will create state-of-the-art facilities for Durham Business School, allowingfor a greater focus on research,postgraduate and undergraduate study in marketing, accounting,communication science and relatedbusiness subjects to support thestrategic development of Queen’sCampus as a centre of researchexcellence. The first floor will containboth staff offices and an experimentalresearch laboratory. The NorthernDeanery and Durham University willalso be located in the new wing,sharing a new NHS primary caretraining facility.

In addition, there will be significantinvestment in the Library, CareersService, social spaces and the generalsupport infrastructure of the campusto underpin these academicdevelopments.

Further information on all the currentand future developments at theQueen’s Campus as well as the full2020 Queen’s Campus developmentstrategy can be found atwww.dur.ac.uk/queens-campus/future

As Director of Full-Time Postgraduate Marketing Programmes, I am excitednot only about the launch of our two new marketing masters programmes,which will allow us a greater focus on marketing teaching, but also aboutthe investment and physical development at the Queen’s Campus itself.The new developments will allow us to foster a research led, businessfocused approach to our work and our student’s education. The development of an experimental lab in the Wolfson extension is alsoexciting for our research programmes, enabling us to work at the forefrontof technology and utilise exciting new methodologies in our work.

Queen’s CampusDevelopment

Recently appointed to the role of Director of Full-TimePostgraduate MarketingProgrammes, Dr Victoria Wellsshares the School’s vision for its Queen’s Campus in Stockton. 25 years

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What is your current role?My title is Chair in Finance. At themoment I teach Corporate Finance onboth the MA and MBA programmes; I also supervise dissertations for the MA and undergraduate economics and finance students.

What are the most challengingparts of your job?A long time ago I went down to a classroom to administer a finalexamination in a PhD course I had justtaught, Mathematics for Econometrics,only to find that a student had writtenthis on the board:

FINAL EXAMINATION:Mathematics for Econometrics:

Part A: Think of a theorem.

Part B: Prove it.

The real joke is that this really is my job.It helps if the theorems are abouteconomics and finance!

What do you want to achieve?Most of my research centres on one oftwo things. The first is how informationis integrated into markets and thesecond is how the ability or failure to beable to keep promises affects economicoutcomes. It turns out to be essential to think about both issues in dynamicways, and I’ve had some successes. Forexample, a classic question in monetaryeconomics is ‘what is the ideal rate of inflation?’ By interpreting this as aquestion about information, you can givean exact answer. As a second example

one can ask how property rights affectthe economic development of poorcountries. Are good property rights thechicken or the egg? By interpreting thisas a question about promises, you canexplain why some poor countries growmore slowly than our previous theorieshad predicted.

My main goal is to develop methods togauge how information and promisesinteract. It turns out that for technicalreasons this is incredibly hard. Thepayoff will be an improved ability to talk about asset markets and importantphenomena such as recessions.

To develop these sorts of abstract models,I think about applied economics. In thecourse of my research I’ve been inspiredby babysitting cooperatives, taxi drivers,CEO pay, and cattle breeding.

What drives you?There are two moments of truth. Thefirst is the eureka moment when youfigure something out that was previouslyobscure and difficult and technical. The second is when you publish it –then it is yours forever.

When you first look through amicroscope, or a telescope, you see ahidden world. Good theory similarlybrings the world into focus and order in unexpected ways. My research oninformation and promises has alreadyproduced some surprises, and you getaddicted to developing furtherimprovements.

What was the best career adviceyou were given?If you can write the problem downclearly, you have a much greater chanceof actually solving it.

What advice can you offer to students andalumni thinking of an academic career?In my world there is unending potentialfor insight and discovery. There is a long history of people thinking thateverything was known and discoveredalready, but we are constantly learningnew things. A recent example is the lightfield camera, which allows you to vary the focus of a photograph after you havetaken it. What a creative insight, and it is only a few years old. (My interest in itsprings from its use of Fourier analysis.)

When you have that eureka moment,you are the first and only person in theworld who knows it. It’s kind of likehaving hole cards in a poker game thatgive you a lock – you feel a kind of innerserenity. But you might need to sweat a little to get from eureka to eureka.

You can email Bart at:bart.taub@durham.ac.uk

Continuing our ‘Introducing…’ feature, here we meet a recentaddition to the School’s faculty:Professor Bart Taub, Professor in FinanceBart has been an academic for over 30 years, obtaining his PhD in Economicsfrom the University of Chicago in 1981. He recently moved to Durham BusinessSchool from the Department of Economics at University of Illinois. His researchinterests include Macroeconomics, Asset Markets and Contract Theory and hehas represented Durham University around the globe, most recently as a panelmember at this year’s Shanghai Forum where he spoke on UK Bargaining Powerand the Structure of Alliance Contracts.

introducing......

The weekend activities started early onFriday 03 June with the third annualDurham Convention, fast becomingone of the biggest business events inthe region and this year generouslysponsored by global communicationsspecialists Alcatel Lucent.

The Convention, facilitated by TVpresenter Wendy Gibson, boasted animpressive list of speakers includingArctic adventurer Rona Cant, Radio 4’saward winning financial reporter andpresenter Adam Shaw, social mediaexpert Tracy Playle, the face behindPickle Jar Communications, andDurham economics alumnus JamesAverdieck, founder of specialitypudding brand, Gü.

A beer tasting by local micro-brewers,Durham Brewery, provided lightentertainment on Friday evening, over which alumni, staff and visitorsexchanged news and business cards.

A range of MBA refresher courses were offered on Saturday, on topicsincluding Leadership, Finance, and Innovation. Well attended andreceiving very positive feedback, theseare set to become a regular addition to the Agora calendar.

The Alumni Ball at Durham’s newestluxury hotel, the Radisson Blu,rounded off Saturday and, for thosewith energy left over, there was theopportunity for a round of golf on Sunday.

Dean Rob Dixon said: “This weekendhas highlighted the range and depth of the School’s activities. We haveheard from some remarkable andinspirational speakers and broughttogether members of our globalalumni network, enabling them to take advantage of networkingopportunities, skills refresher sessionsas well as re-visit our beautiful City.”

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This year marks the 25th anniversary of the Durham MBA and, to celebrate the occasion, the School threw open its doorsfor the first weekend of June to play host to over 150 guests.

Celebrating 25 years of the Durham MBA

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VirtualMentoringIn practice virtual mentoring can be a hybrid oftelephone calls, video conferences, Skype calls, the exchange of emails, occasional texts and the odd face to face meeting if one or both of the parties has the opportunity to travel on business to the other’s location. This article suggests seven tips for successful virtual mentoring.

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Ahead of the launch of the 2011/12DBS Mentor Scheme, alumna andDBS Mentor Nicola Shearer revealsher tips on getting the most out ofvirtual mentoring. Nicola Shearer MBAMEng (Oxon) is a Global Coach andDirector of Little Springtime based inSierra Leone and UK. She has a trackrecord of supporting leaders of FTSE100 companies as well as Governmentat National Level.nicolashearer@littlespringtime.com

TIP 1: SHARING INFORMATIONWhilst in face to face mentoringsessions, people can often quicklyestablish rapport through picking up onthe tone of voice or facial expressionsand mirroring body language. This canbe harder to do via telephone or videoconference which is why in virtualmentoring it is recommended thatindividuals focus on building rapportearly on by sharing as much informationabout themselves as they findcomfortable. In his book “EveryoneNeeds a Mentor” David Clutterbucksuggests using some of the followingquestions in order to tap into theemotional personality of thementee/mentor.

• What do you care passionately about?

• What are you most proud of in your career?

• What do you enjoy most about your work?

• How would other people describe you?

• What is your biggest ambition in work, outside of work?

• Who do you admire and why?

TIP 2: DON’T JUMP STRAIGHT INIt is often good to start each virtualsession in the same way you would starta traditional face to face mentoringsession asking after health and families,the weather (if you are British) etcbefore jumping straight into the firstagenda item. In some cultures it can be seen as very rude to go straight to business.

TIP 3: CROSS-CULTURALAWARENESSWith virtual mentoring, there is a strong likelihood that individuals will be mentoring someone from a differentculture and background be thatinternational, gender, generational or regional. In this case the potential for stereotyping, which can reduce the effectiveness of the mentoringrelationship, is high. It is therefore vital to spend some time in your virtualmentoring pair exploring each other’sculture. How is time viewed, what arethe rules (written and unwritten), how ispower shared/displayed, how do peopleview hierarchy and responsibility, howopen are you with your emotions, howare decisions reached in that culture?

Share some assumptions you haveabout your mentor/mentee’s culture,and find out how accurate they are. For example:

• My assumption is that your culturesees organisations as veryhierarchical where the boss is alwaysright and you don’t contradict orchallenge him or her, is that correctfor you? Tell me more about that.

• My assumption is that you have avery optimistic attitude because youcome from the USA where peoplehave a very “can do” attitude. Is that true for you?

TIP 4: TELEPHONE MANNERIn virtual mentoring be aware that you may have a different tone of voice,body posture and manner when on the telephone or video conference asopposed to when talking to someoneface to face. The difference is lessnoticeable in generations who grew up with universal access to mobile and internet phones but can be quitemarked for those who did not. Try to ensure your telephone or videoconference style is as relaxed andnatural as your face to face style.

TIP 5: DON’T BE AFRAID OF THE SILENCEAnother difference is the degree towhich individuals are comfortable withsilence on the phone. A few secondsface to face silence when you can seesomeone planning to articulate theirthoughts and feelings can be easierthan the same amount of silence on theother end of the line. In western societypeople change radio channels after 4.5seconds of silence – hardly enough timefor a reflective sigh. Remember NancyKline’s assertion that the head thatcontains the issue also contains thesolution – pause and let the silencecontinue – there is thinking going on.

TIP 6: LEARNING LOGAnother aid to maintaining and buildingrapport remotely is for the mentee tokeep a learning log and to sharehighlights and reflections via email.This not only helps to maintaincontinuity between sessions but canalso stimulate quality questions at thenext session as the mentor will havehad time to digest the content. This log can help both the mentor and thementee to spot patterns or repetitionsthat they may not have picked up in the speed of face to face conversations.Using the occasional text to check-in or communicate a success can be a real boost for both mentor and mentee.In the middle of a gruelling businesstrip getting a light hearted “Thanks forlistening – I tried out what we discussedand it worked!” can be as uplifting as the mentee getting a “Well done” in response.

TIP 7: GENEROUS LISTENINGFinally remember that it is just asimportant to listen respectfully andgenerously during remote mentoring as it would be if the person were in the room with you. That means turningoff other phones/ blackberries andrefraining from checking emails – typingon a keyboard is not silent and can beheard on the other end of the line.

With email, texts, telephone, Skype and video conferencing and the globalnature of our businesses today, having a virtual mentor/ mentee can be asinteractive and as beneficial as having a mentor in the next office.

The DBS Mentor Scheme is continually recruiting new mentors.If you are interested in supporting a current student, please contactdbs.alumni@durham.ac.uk

MENTOROF THE YEARAgora is delighted to award the‘2010/11 Mentor of the Year’ to Utsav Malhotra (MBA 06/07).

As well as mentoring current studentsover the past few years, Utsav is one of our most dependable contacts withinthe alumni network whom we rely upon to help prospective students with theirqueries about the MBA programme.

Ustav’s current mentee, MuhammadArmandi Oesman (Armand), said ofhis mentor, ‘he knows how to motivatepeople and he was able to give me alot of insights about getting throughthe MBA based on his own experience’.

As a thank you for achieving thisaccolade, the School sent Utsav a£100 Amazon voucher. His reactionto the award was “I think people giveback for the love of their alma-mater”.

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Securitisation– taming the risks or camouflaging them?

In April of this year, the UK’s Independent Commission on Banking (ICB) released its interim report. This has beenseen as a clear direction for where the final report (due inSeptember) will lie. Much of the narrative surrounding theinterim report has been on suggestions for making bankingsafer for the future and less likely to burden taxpayers in support of floundering financial institutions. However, a closer look at one aspect of the ICB’s findings suggeststhat they might not be as water tight as first thought.

In response to the ICB’s “Calls forEvidence”, a 10 page paper wassubmitted by the author, exploring the role played by securitisation (e.g. mortgage backed securities) in the lead up to the crisis of2007–2008. The importance of securitisation to the ICB was clearly outlined in their openingposition paper:

“It was argued and widely acceptedduring the pre-crisis period thatdiversifying exposure to credit riskthrough securitisation made thefinancial system more stable… the events of the financial crisisshowed the opposite.” (ICB Calls forEvidence Paper 2010, Section 2.9)

In addressing this aspect, the interimreport contained recommendations for ring-fencing the handling ofsecuritisation to prevent Retail

banks from becoming involved in thepractice; a tentative step towards the re-instatement of Glass-Steagaltype separations between Retail & Investment Banking. But would this separation help prevent futureproblems? To fully appreciate this we need to examine the historical role played by retail banks andcompare it with the modernphenomena of securitisation.

DBS MBA alumnus RussellBradshaw is a practisingstatistician and researchanalyst with more than 15years experience of analysingquantitative research data. He studied with the full-timeMBA cohort 2005/2006 andwas awarded both a distinctiongrade and the Sage prize forbest academic achievement.

Russell has consulted on a diverse range of topics,including working withAccenture in developing newanalytical tools and with theOffice for National Statisticson methods for improving theaccuracy of Consumer PriceInflation measurements.

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TRADITIONAL RETAIL BANKING – ORIGINATE TO HOLDA retail bank undertakes matchmaking between borrowers and lenders. As an expert “intermediary” it has to skilfully manage two sides of a verydelicate balance sheet; its assets and its liabilities. Depositors have to trust that the bank can honour any obligations – they expect their money to be fullyreimbursable on demand. The bank then has to ensure that the quality of itslending does not put its finances at undue risk. Calling in a loan from a borrowerhas many complications and in cases where a borrower defaults, a bank is notguaranteed to obtain full compensation in returned monies.

Banks therefore undertake various risk management strategies, to protectthemselves from the potential abuse of trust by borrowers:

A retail bank essentially operates to appropriately contain or avoid risk. A bank can’t conduct anything akin to alchemy by transferring, transforming or de-toxifying the risk. It is a self contained system that has therefore evolvedsensible practices to either avoid the risk in the first place or absorb the erraticnature of default/delinquency. It does this either through the appropriatedilution of risk in its loan pool, or by holding a sufficient cushion of capital to smooth losses over time. This description of banking intermediation is oftenreferred to as the “originate and hold” model (O&H) as banks could not trade or sell-on the loans that they had initiated. The risk stayed within the bank, andwould be suitably visible to management, shareholder and regulatory oversight.

MODERN BANKING – ORIGINATE TO DISTRIBUTE,A.K.A. SECURITISATIONDeregulation of the banking sectorsince the 1990s has led to thefeasibility of banks selling-on loans,known as the “originate and distributemodel” (O&D). This has led to afundamentally different marketstructure whereby an increasingproportion of loans are packaged up and traded as securities on asecondary market (e.g. Asset BackedSecurities such as Collateralised Debt Obligations – CDOs).

Under this regime, tasks that would normally be the integratedresponsibility of banks becomedissected, with one of the most criticalaspects, the pricing of risk and thesupervision of borrower behaviour,being placed within the hands ofsecondary markets. However, withcredit risk assessment (by theOriginating bank) becoming separatedfrom credit risk responsibility (restingwith the Holding institution), it seemshighly unlikely that the quality of loanevaluation would improve. Indeedevidence collected and published on the cusp of the crisis in 2008demonstrates that securitised loansseverely underperformed:

“We find that borrowers with an active secondary market for their loansunderperform their peers by about 9% per year in terms of annual, risk-adjusted abnormal returns, over athree year period subsequent to theinitial sale of their loans.” Berndt & Gupta (2008) “Moral Hazard andAdverse Selection in the Originate-to-Distribute Model of Bank Credit.”

The very structure of securitisationcould be facilitating the exploitation of moral hazard and asymmetricinformation concerns that have doggedbanking for centuries. Borrowersthemselves may be making inferiorloan judgements (with easy credit

IN CONCLUSIONThe Independent Commission onBanking may well conclude thatfirewalls should be erected betweenRetail and Investment banks.However, the role of securitisationboth maintains a mutuallyinterdependent link between the two types of institution, plus placesthe overall system at higher risk bycreating perverse incentives for lowerquality lending within the economy.This is no longer a closed system, but instead an open system where risk ownership and responsibility canbecome complex and obfuscated.

At the time of the crisis in 2007/2008both Northern Rock & Lehman Brosalready sat either side of the notionalbanking firewall. This argument hasbeen used to dismiss the potential

effectiveness of such a compulsorydemarcation. Such a split wouldindeed be little more than a Potemkinfirewall; a flimsy masquerade thatwould provide no genuine safeguardsat all. But this should not be concludedat the expense of ignoring a morefundamental point. These two fragileinstitutions shared in common a heavyreliance on Securitisation. Much ofthe debate about the market structureof banking seems to ignore this crucialissue, yet it seems certain that thiswas the underlying cause of theirfinancial distress.

We mustn’t forget that the practice of Originate and Distribute is still newterritory, and currently one with a verypatchy record. Given that the verticalfragmentation preserves an umbilicallink between two distinct systems

(one required to be totally watertight, the other free to be more risky), itseems that we can’t yet declare thatthe future of banking is as safe ashouses, until we confront this specificissue head-on.

In November 2010 Russell submitted a paper to the Independent Commissionon Banking, you can find it by visitingthe ICB website (http://bankingcommission.independent.gov.uk) andsearching under his name and‘Responses Received’.

The submission was heavily influencedby the macroeconomic concerns ofexcessive credit growth outlined inPeter Warburton’s book Debt anddelusion: Central bank follies thatthreaten economic disaster. Published by Allen Lane (1999).

enabling an “extend and pretend” lifestyle which they can’t realisticallysustain), and/or loan originating firms could develop a tendency to ignore weakborrower circumstances (such as the spate of “self certification” mortgages).

It would seem then that loan quality is compromised under secondary markethandling, as a new outlet for risk transfers is enabled:

In the above framework, the Quantity and Quality of aggregate lending within aneconomy are deemed to be inversely related. Avoiding risk would lead to a lowerQuantity of lending, but is likely to result in overall Quality improvements. Asthe evidence cited above suggests, transfer of risk encourages greater Quantityof lending, but at an overall lower Quality. The traditional O&H approach isprevented from risk transfer practices, therefore the expansion and contractionof credit issuance is limited by a bank’s own ability to avoid or absorb risk.However, in an O&D environment the ability to engage in risk transfer practicescould reduce credit quality supervision, and therefore create increased levels of low Quality lending.

BOOK REVIEWBOOK REVIEW

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I have to admit to being biased here.I’ve had the privilege of workingalongside Tim Clark for many years at the Business School and I thinkhe’s not only an outstanding academicbut also a really nice person, whichdoes rather scupper any attempts atobjectivity on my part and curtails my predilection for cheap comments,but stick with me…

Reading this book can give a student a rather privileged entry into how the “Magic Circle” of managementspeakers do their thing. Tim and hisco-author David Greatbatch analysethe performances of a handful of theworld’s leading business gurus, peoplelike Gary Hamel, Peter Senge, TomPeters and Rosabeth Moss Kanter, andin so doing, throw some much neededlight onto the “tricks” they employwhen plying their trade. By which Imean in the kind of stories they tell,the way they structure their remarksand the careful way they work andhandle their audience.

Tim, a professor of organisationalbehaviour at Durham, and David, aprofessor at Nottingham University,compare the techniques used by theseleading business speakers, “gurus” as they term themselves, to those ofpoliticians and preachers, and we seesome surprising results. The authorsshow how these gurus establish theircredibility and manage their‘customers’, often with material that is solely geared to entertainment,humour and keeping the audienceengaged. A story by one such speakerabout how Sylvester Stallone got intothe movies, turns out when checkedonline to have been made up! Butthen these speakers don’t necessarilylet the truth stand in the way of a good story.

If you need to give a presentation and want to make a good and lastingimpression then perhaps a fewevenings reading Tim and David’s bookwill both inform and enlighten you,and surely that can only be a goodthing when you next have to stand up and speak in public.

During a meeting with my mentor –Steve, the successful consultant/director of First Ascent Group – I askedhim to suggest one skill I should workon improving, to succeed in business.The answer Steve gave was ‘networking’.

Why is networking so important for ourcareers? I spotted a book called ‘TheNetwork Effect’ on Alex Sedgwick’sdesk just a few days later and shekindly let me borrow it. Many examplesin the book prove Steve’s point.

‘Chris Ingram, founder of the Tempusmedia-buying group failed to raise £6 million pounds to prevent WPPgaining control of the company backin 1996. He said ‘I couldn’t do it: I just didn’t have the network.’

‘Richard Reed, and other co-foundersof Innocent smoothies, raised themuch needed cash to start thecompany just by not only knowingrich people, and people who knewrich people, but also knowing thosepeople who took them seriously.’

‘James Dyson achieved success forhis company by knowing: a lawyerfriend of his brother in law whohelped him set up the first company,a former beauty queen friend topromote his products, a respectedbusinessman who was an old friendof his father to join the Board, aCanadian he sat next to on the planewho later became head of Dyson’sNorth American operations.’

These examples, to list just a few,demonstrate that success does notcome from pure luck. Rather, it comesfrom having a strong network to turn to when you are in great need of help.

So who would have thought thatnetworking is all about giving, ratherthan receiving? The key point tosuccess in networking is thewillingness to extend your help and offer to connect people in yournetwork with each other. This in turnhelps them become more open tosharing their own networks with you.Networking is also about having funwhile meeting new people andenjoying a meaningful conversation,regardless of what they have to offer.

This book offers an excellent range of tips and examples of how to start a conversation, keep it going and evenhow to step away when it is time tomeet someone else in the room. The‘Five corner’ goal is my favourite. Set agoal to meet at least five people: onefrom the middle of the room, and fourfrom the corners. Networking is alsolike gambling. If you are in, withoutknowing what you’ll get out of thepeople you meet, you have a 50percent chance of winning. However, if you refuse to take the risk and stayout of the game, you’re guaranteed a zero percent chance to win.

And finally, practice makes perfect.The key to success in networking is tokeep diving in, practising and learningfrom the experiences. Soon enough,the skills will become your secondnature, even if you weren’t born anexcellent networker.

My verdict? An excellent book!

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DBS’s Librarian Colin Theakston reviews

Management Speak: Why We Listen to WhatManagement Gurus Tell Usby DBS Professors David Greatbatch and Timothy Clark(Published by Routledge 2005)

Kristine Le, a current DBS MBA student, explains why she was delighted to read

The Network Effect by DBS alumnus Tony Newton and his colleague Judith Perle(Published by Management Advantage Ltd, 2011)

GEORGE BAMPAROUTSISMSC ACCOUNTING & FINANCE2009–2010After graduating from DBS with an MSc Accounting and Finance, I started applying for jobs all overEurope whilst undertaking aninternship as an accounting assistantin Athens. Fortunately, exactly whenmy internship period was about tofinish I received an offer from IBM to work as an accounting analyst intheir International Services Centre in Bratislava, Slovakia. During myinterviews it became clear that adegree obtained from DBS was highlyrespected amongst employers, and I believe it helped me to stand outfrom the crowd. After five months in the job, I feel that the knowledge I gained from my degree has beenextremely useful in helping me adjustsmoothly into my new position. Duringmy time at DBS I had the opportunityto improve upon many skills includingteam-working, leadership and timemanagement. Personally I feel thatthese skills, as well as the academicknowledge I gained from studying at such a high level, are of greatimportance. I believe that for anyEuropean student like me, it would beextremely difficult to get a job with amultinational company, such as IBM,without studying abroad. I believe aMasters degree from DBS gives you a great boost to start your career andobtain the position of your dreams. If you would be interested in a job at IBM I would be more than happy to refer any DBS alumni. My emailaddress is georgebabar@hotmail.com

BOB BURNSMSC MANAGEMENT STUDIES1976–1977Our 30th reunion of the DBS Class of1976–77 was so successful that wehave decided to do it again next year!Last time we had nine members whogathered over three days, with thereunion culminating in a grand dinnerwith several former members of thefaculty. We stayed at one of theUniversity colleges so we had plenty of time to reminisce about what PeterPearson called that “life-changing”year in our lives. Plans will soon becompleted and circulated to all of our old classmates. Those alreadyconfirmed are Peter Pearson, SimonWoods, Anna Shirley Scharf, LizThorley, Phil Owen, Geoff Lodge,George Bell, Bob Burns and “Naj”, our first faculty member. Please do let the Alumni Team know if you areinterested in attending this greatevent. We are looking to arrange it in either July or August of next yearand hope to see you all there!

JAY SINGGIHBA ECONOMICS2006–2010After graduating from DurhamBusiness School in June 2010, I decided to return to Jakarta,Indonesia. Since August 2010, I have been working in the Mergers & Acquisitions Advisory (TransactionAdvisory Services) Division at Ernst & Young, where my main role is inFinancial Advice. This includes adviceon Mergers & Acquisitions, Lead IPO,Infrastructure, and Public PrivatePartnerships. In addition to this, I have recently taken on a new role asChairman of the Young ProfessionalsGroup at the British Chamber ofCommerce in Indonesia (BritChamIndonesia), with the aim of “FacilitatingTrade & Investment between Indonesiaand Britain”. BritCham Indonesia’spartners include the British Embassyin Jakarta (UK Trade & Investment“UKTI” in Indonesia) and the IndonesianChamber of Commerce & Industry(KADIN Indonesia), where the aim ofthe Chamber is to further the interestsof British Companies in Indonesia,encourage cooperation between Britishand Indonesian businesses andgovernments, and bring aboutsustainable growth in trade andinvestment between the two countries.

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GORDON MITCHESON-SMITHDISTANCE LEARNING MBA2002–2006I have recently become a Fellow of the Strategic Planning Society. Thefellowship recognises individuals whohave accrued substantial knowledgeand experience in the field of strategy and show a commitment to maintaining and developingprofessional management skills. MyMBA from Durham was a major factorin achieving this status. The StrategicPlanning Society (founded in 1967)promotes research and best practice in strategic thought and action. The SPS was instrumental in thedevelopment of strategy as amanagement science, and publishesthe leading international academicjournal ‘Long Range Planning’. Sinceachieving my MBA, I have spent timeas a consultant and interim managerin the technology sector (software andbiotech) and am currently working asCorporate Strategy Manager for CITB-Construction Skills, the Sector SkillsCouncil and Industry Training Boardfor the UK construction industry.

AIZHAN YERMEKBAYEVAHUMAN RESOURCES MANAGEMENT 2009–2010After graduating I spent four monthsjob hunting until finally acquiring atemporary job as PA to the deputy CEO of National Medical Holding JSC (NMH). In March, NMH took the decision to create a new companyto which they would outsource andcentralise all of the HR functions of their six affiliate hospitals andimplement an advanced humanresource management system. At this point I had established a goodrelationship with the members of the Board and they offered me apermanent position within the newcompany as HR Consultant. Needlessto say I was overwhelmed as I neverthought that I would obtain such a prestigious position so early on. My job is to hire qualified staff toprovide HR services and developadvanced HR policies and proceduresfor healthcare organisations. I lookafter the employer/employeehandbook, recruitment and selectionpolicies, performance management,performance appraisal and motivationprogrammes, and training anddevelopment policies. I’m alsoinvolved in the financial andorganisational part of this project,monitoring it every step of the way. I am delighted to have had theopportunity to study HRM at DBS as it has more than prepared me for this challenging role in HR.

TOM MULLENFT MBA2008–2009I recently finished writing a book I have been working since before the Durham programme began. Titled‘Vino Expressions – People, Wine, andLoving Work’, it includes interviewswith 50 people from a dozen countriesthroughout the world who are involvedwith the world of wine. These includewine and barrel makers, artists, a tourguide, a chef, a sommelier, a vineyardecologist, and others. The text iscomplemented by 120 colour photostaken by the author. The book exploreswhat makes people love their work,even though the career they choosemight not necessarily be easy orlucrative. The book was edited byBarbara Kral-Hasty, who was in thesame MBA cohort as me at Durham.Barbara is also a marketing consultantfor the book. The book is availableonline to be read on Amazon’s Kindlee-reader, or can be downloaded fromwww.vinoexpressions.com

CLASS NOTES

1. Gordon Mitcheson-Smith2. Aizhan Yermekbayeva3. Tom Mullen4. George Bamparoutsis5. Jay Singgih

1 2 3 4 5

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The Holy Grailof ServiceExcellence

We all know what good service is,don’t we? We certainly know badservice when we are unlucky enough to encounter it – a too commonoccurrence! Bad service leaves usfeeling disappointed, frustrated, andundervalued. The likelihood that wewould subject ourselves again isremote, so we don’t return to thecompany; we feel aggrieved and needto “sound off” about it. Time was, wewould have done so to a few friendsand family (research says up to 20people (ACSI survey 1994), and ourgrievances would have had a very shorthalf-life. Today, we are more inclinedto do our complaining online, viaFacebook, LinkedIn, MySpace, or ahost of other social networking sites,or on a personal blog. The potential for damage is greater than ever; theelectronic record, once createdacquires a life of its own, and willcome up in searches for years tocome. The digital world has extendedthe life of disgruntled customer stories into eternity.

So much for poor customer service;business has a new Holy Grail –Service Excellence. What does thatmean from a customer perspective?Well, outstanding customer service is a good start, but is only a subset of Service Excellence. In fact, a bettername would be simply Excellence. It can apply to organisations large and small, and in service or inmanufacturing sectors; it works across all functions, and all levels of personnel. Unlike earlier serviceand quality initiatives, ServiceExcellence blends process andphilosophy, and imbues companiesthat espouse it with a charmingsprinkling of magic dust that makesthem a joy to do business with.

Mention the words Service Excellence,and the usual response is “Oh, ofcourse, we have been doing that for years, all our staff have regularcustomer service training. “Peoplehear the word ‘Service’; they miss the concept of ‘Excellence’. Yet thereis a world of difference! Customerservice is of course, a vital aspect of Excellence, but, in exactly the same way as advertising is the tip of the Marketing iceberg, customerservice is the most visible part ofService Excellence.

EXCELLENCE BEGINS WITH YIn Aronofsky’s haunting 2010 filmBlack Swan, the Ballet DirectorThomas Leroy tells his principaldancer, Nina.

“Perfection is not just about control; it is also about letting go.”

Nina has spent years in painstakingtraining perfecting her technicalcompetences, but her performancedoes not reach her desired level ofperfection until she is able to open her heart to feel passion and engagewith life and her audience. Then sheshines! Organisations too can devoteyears of attention to techniques whichwill make them very good performers,but it is not until they are able toengage passionately with theircustomers that they earn the accolade of excellence.

X Y or Z?Management authors and gurus havesought to create a recipe for deliveringmore revenues, more profit, andgreater shareholder value for decades.McGregor’s Theory X and Y proposedtwo types of manager; Theory Xmanagers viewed people other thanthemselves as inherently work-shy,lacking ambition, needing coercion,and strict control to achieve goals.Theory Y managers created teams

of people who found work as natural asrest or play, were self-motivated whencommitted to the goals, enjoyedresponsibility, taking decisions and the rewards of success. William Ouchiin 1981 extended this concept by his picture of a Theory Z manager.These managers developed a closebond with their team, made long term commitments to new recruits,developed team talents and promotedteam decision making. The majority of businesses at the time had a ‘hire‘em, fire ‘em’ approach. These theoriesand their successors are steps on thepath, each offering a glimmer of insightto what can nurture the virtuous circle of happy staff, happy customers, andhappy shareholders.

McGregor’s book ‘The Human Side OfEnterprise’ presents these as opposingmanagement styles, and in many ways,they are. Nevertheless, exactly asNina’s performance needed a blend of technical competence and passion,outstanding managers need a blend of disciplined system and heart.Excellence begins with the heart(Theory Y), but needs a foundation of Theory X measurement, process and discipline. The truth is, all ofthese approaches, even the apparentlycontrolling, and negative Theory Xform a piece of the excellence mosaic.The figure below suggests the qualitiesassociated with the two approaches.

Figure 1: Features of Process andPhilosophy Linked to Theory X and Yrespectively

Service excellence is currently exciting much interest inbusiness circles. Confusion abounds – in part due to the fact that the topic crosses the boundary between process and philosophy, and is therefore hard to define. However thiscombination of heart and practicality is also its great strength,and the reason why organisations that have embarked on the journey are enjoying cost savings, rave reviews and revenue increases.

In her article Fiona Urquhart tracks the history of its evolution,describes how and why it works, and outlines the areas inwhich that it can save costs. Presented here is an extract. To read the full article, visit the careers section atwww.agora.org.uk

CONTENTSIN THIS ISSUE…

04 I DEAN’S WELCOME/NEWS 06 I ALUMNI UPDATE 08 I TRUST: THE BUILDING BLOCKS AND THE REPAIR KIT

10 I TRUST: THE BUILDING BLOCKS AND THE REPAIR KIT CONTINUED…/GRADUATION

12 I QUEEN’S CAMPUS DEVELOPMENT 14 I INTRODUCING……/CELEBRATING 25 YEARS OF THE DURHAM MBA

16 I VIRTUAL MENTORING 18 I SECURITISATION – TAMING THE RISKS OR CAMOUFLAGING THEM?

20 I SECURITISATION – TAMING THE RISKS OR CAMOUFLAGING THEM? CONTINUED…

22 I BOOK REVIEW 24 I CLASS NOTES

DBS alumna Shalini Kurukulasuriya talks about life at Durham and as Vice President for Projects and Transitions at AMBA Research Lanka (Private) Limited.

Shalini spent over seven years in Durham, firstly as an Economics Undergraduate and then as a postgraduatestudying MSc Corporate & International Finance. She then went on to become a member of the Economicsfaculty where she spent two and a half years before returning to Sri Lanka after receiving an irresistible job offer.Nowadays Shalini is responsible for financial analysis and research into target companies for AMBA Research’sclients. She is enjoying life in Colombo, but has fond memories of Durham and hopes to visit again soon.

Q.How do you feel your Durhamdegree prepared you for yourcurrent role?

A. In addition to completing myundergraduate and postgraduatestudies at Durham, I subsequentlyhad the privilege of teaching at the Department of Economics andFinance for over 2 years. Apart fromthe obvious academic benefits, thecollective experience profoundlyshaped the open and respectfulmanner in which I approach myinterpersonal interactions. This isespecially valuable in my currentrole as VP-Projects and Transitionsat Amba Research, where I’mresponsible for coachingmulticultural teams on developinginvestment analysis skills. Conveyingnegative feedback tactfully is acritical aspect of their ongoingimprovement.

Q.If you had one piece of advice for Durham graduates starting out what would it be?

A. Don’t be afraid to take the path less travelled when embarking on a career. Finding your truecalling/passion is sometimes aprocess of trial and error. So it isimportant not to let the fear offailure prevent you from taking the plunge and exploring different

paths, although it may not seem likethe most obvious or popular choice.

Q.What are your fondest memories of Durham?

A. Cooking ‘Kiribath’, a traditional SriLankan dish for 200+ people at theInternational Students Banquet forthree consecutive years holds manyfond and comical memories. Othersinclude (this is by no means anexhaustive list) my first glimpse of the magnificent Cathedral andCastle, meeting up with friends forafternoon tea at Vennels café andthose contemplative walks along the River Wear.

Q.What would you say has been the most satisfying aspect of your career so far?

A. Leading multicultural teams acrossa variety of equity research projectsand using my expertise to honetheir skills and help them shine in their respective roles.

Q.Where do you envisage your career taking you in the future?

A. I’m very hopeful about Sri Lanka’sprospects as a high end investmentresearch outsourcing hub. So I see myself continuing to build my career in Sri Lanka, with shortsecondments overseas. Since the

industry is at still at a nascent stagewith many moving parts I hope to work on developing a nimbleskillset which will enable me to seize challenging opportunities as they present themselves.

Q.What do you do to unwind?A. I usually swim and find it incrediblytherapeutic and relaxing. I’m alsoworking on improving my game oftennis. More recently, I’ve taken up the piano and have almostcompleted the beginner’s level!

Q.What would you describe as yourmain strengths and how have theseled you to where you are today?

A. A passion for lifelong learning, acommitment to excellence, andpatience. I firmly believe thesestrengths have helped me perseverein my chosen path and becomemore resilient to withstand theinevitable bumps along the road to building a fulfilling career andliving a well rounded life in general.

Q.Do you keep in contact with manypeople you met at Durham?

A. Absolutely; although we areseparated by geography, some of my closest friends are still those I met during freshers’ week back in October 1995.

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Q&ALIMITATIONS OF XSound managerial processes,supported by systems such as ISO9000, can deliver a very high level of customer service, enabling theorganisation to meet customerexpectations in the majority of cases.There will be mechanisms in place to deal with exceptions, where thingsgo wrong and need to be recovered,and generally, things run as clockwork.This falls short of service excellence,which begins with a mission, toengender a culture of delighting,rather than merely satisfying thecustomer. Processes are an importantelement of delivering delight, becausemeeting customer needs is thefoundation stone of excellence.Excellence needs the solid basis ofefficient processes as a structure onwhich to craft customer delight.Customer delight takes the concept of satisfaction to the next level;satisfaction does not promptconversations or recommendations,delight does!

Excellence is the pinnacle of ahierarchy (shown in Figure 2) whichstarts with a solid understanding ofthe customers the organisation serves,enabling an accurate process of

segmentation, targeting and positioningto deliver the appropriate quality andtype of products and services for thecustomer segments. Communicationwith customer segments is initiated bya brand that speaks their language, ina relevant manner. All of these aspectscan be achieved through detailedresearch, sound strategic planning,and good management of creativeagencies. And the mix of these things

will deliver a quality of product and/orservice that will effectively meet theneeds of the customers, and ensurecustomer satisfaction. This processfocus, though rarely has customersclamouring for more, or raving on ablog about their delight. That must be inspired by the spontaneity ofconfident, happy people with the rightattitude, and that is where philosophytakes up the cause.

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Fiona Urquhart is Module Leader for the ServiceExcellence module on Durham Business School’sGlobal Learning MBA. She has also establishedThe Exchange at Durham, a group which enablesbusinesses and academics to share and testtheories and experiences of Service Excellence.

Through Excellence 3, with partners Annette Roweand Fiona Thompson, Fiona helps organisationscreate their own journeys to excellence. She canbe contacted at fiona.urquhart@btinternet.com

Figure 2: The crossover between process and philosophy in delivering excellence

Dates for the Diary DURHAM SPEAKERSERIES

‘LEADERSHIP DEVELOPMENT’

Adrienne McFarland,People Services Director,Sage UK & Ireland

20 October 2011Durham Business School

MOTIVATION‘RELEASE YOUR TALENT ANDACHIEVE GREAT SUCCESS’

Richard Denny, business growthspecialist

17 November 2011Durham Business School

RESEARCH EVENT

Topic and venue to be confirmed

1 December 2011London, UK

SPEAKER EVENT

Topic and venue to be confirmed

09 February 2012London, UK

ENTREPRENEUR PANEL

Topic to be confirmed

08 March 2012Durham Business School

SPEAKER EVENT

Topic and venue to be confirmed

19 April 2012London, UK

ANNUAL DURHAM CONVENTION

Speakers to be confirmed

15 June 2012Durham Business School

RECRUITMENTEVENTS

We are holding a number ofrecruitment fairs across the UK,Europe, UAE and North and SouthAmerica between October andDecember of this year. For moreinformation on these events pleasevisit the Business School website at:www.durham.ac.uk/dbs/news/recruitment

PREVIEW/OPENEVENTS

MBA PREVIEW EVENTS

05 October 2011, 10.30–14.30 10 November 2011, 10.30–14.30 09 December 2011, 10.30–14.30 06 January 2012, 10.30–14.30 Durham Business School

Please note that some dates,speakers and venues are provisionalor yet to be confirmed.

FOR FURTHER INFORMATIONTo book places for these events contact the Alumni Team on: Email: dbs.events@durham.ac.ukTelephone: +44 (0)191 334 5277

WOULD YOU LIKE TO HELP PROMOTE DBS?Prospective students, as well as the School, benefit from having alumniassist Durham academic staff with recruitment activities. If you feel ableto volunteer in this way, please visit the events page at www.agora.org.uk

1. BEIJING AGORA The Beijing Global Get-Together tookplace on Thursday 10 March 2011with a number of DBS alumnimeeting with Local Associationleader Abby Wang in a bar in thecity. The Beijing Association meetson a regular basis and Abbycommented, “We had a good timeand I see new faces each time. It’sgood to keep this loop growing.”

2. RUSSIA AGORA Alumni Relations Manager,Alexandra Sedgwick, visited Moscowon Tuesday 12 April 2011 with DBSalumnus Alexey Buditskiy as part ofan MBA Recruitment visit. Alex andAlexey held an alumni get-together in the capital that evening and anumber of DBS alumni attended.They shared a meal and Alexexperienced some authentic Russian cuisine.

3. PAKISTAN AGORA – NEW! The new Pakistan Agora LocalAssociation was set up in April 2011by Local Association Leader AnusheHussain. Anushe is working closelywith the Agora alumni team toorganise future alumni get-togetherevents. If you would be interested injoining the group, please do contactus. A Facebook page has been set up for the association. To access thisplease search for ‘Pakistan AgoraLocal Association’.

4. SINGAPORE AGORA In May, Jonathan Sim stepped down as leader of the SingaporeAgora Local Association. The newassociation leader is Arsalan Amjad.Arsalan is hoping to arrange analumni event soon to get to know you all a little better.

5. JORDAN AGORA The Jordanian get-together was held on Friday 03 June 2011 at the Kempinski Hotel in Amman.Local Association Leader Zu’bi Al-Zu’bi reported that the group had reminisced about the goodold days at Durham.

6. SOUTHERN AGORA On Thursday 07 July AlumniRelations Manager, AlexandraSedgwick met with local DBS alumni in London. The event wasarranged with the help of LocalAssociation Leaders Nikhil Kulkarniand Natasha Ellah. The group met at the 5th View bar in Piccadilly for drinks and had a good turnoutwith over 20 alumni attending.

7. SHANGHAI AGORA During a recent trip to Shanghai,Daniela Slanickova, Head ofInternational and External Relations,and Ian Lincoln, Senior TeachingFellow/Deputy Director of UGStudies, along with a group of

current DBS students met with alumni.The event took place at Centro bar inthe city and an enjoyable evening washad by all.

The final Global Get-Together date for this year is 08 December.

If you are interested in joining one of our Local Associations or setting up your own, please contact dbs.alumni@durham.ac.uk.

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Agora’s global network

local association news

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28 I THE HOLY GRAIL OF SERVICE EXCELLENCECONTINUED…/Q&A

30 I LOCAL ASSOCIATION NEWS/DATES FOR THE DIARY

26 I THE HOLY GRAIL OF SERVICE EXCELLENCE

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Dean’s Welcome

Our number one priority is to deliver afirst class student experience. To do thiswe will continue to strive to deliver thehighest quality teaching to our studentswhilst providing excellent facilities. Our state of the art Queen’s campusalready boasts some of the bestfacilities the University has to offer. The planned construction, renovationand reconfiguration of the Mill Hill Lanebuilding will provide a great deal morecommunal space for students to unite,but will also have high tech teachingfacilities. This development is due tostart in April 2012 and as we enter thefinal stage of planning for the project, I welcome any input from friends andsupporters of the School.

Along with our focus on teaching, DBS has always had a reputation as aresearch-led institution and I’m pleasedto report that we have more than livedup to our reputation this year. In recentmonths a number of DBS researchershave had publications accepted at top-ranking journals. Professor LaszloPolos successfully co-authored a paperon organisational mortality that will bepublished in Administrative ScienceQuarterly. It proposes innovativetheoretical framework that casts newlight on the contributory factors andvarious relationships that account fororganisational failure. Dr Birgit Schyns,

meanwhile, has co-authored a paper on teaching implicit leadership theories.The article will appear in The Academyof Management Learning and Education,and discusses a novel approach toteaching in this area, incorporatingdrawing exercises that illustrateindividuals’ diverse understanding of leaders and leadership. In addition to this, an article co-authored byProfessor Parantap Basu will appear in the Journal of International Moneyand Finance. His paper addresses thearea of uninsurable risk by examiningmarket structures where private riskcannot be insured or can only bepartially insured. These are by nomeans the only successes of this kind,as academics from across the Schoolcontinue to produce work that reflectsthe quality of research being conductedhere at Durham.

Some of the research articles featuredin this issue include ‘Building andrestoring organisational trust’ by DrGraham Dietz (page 8), ‘The Holy Grail of Service Excellence’ by FionaUrquhart (page 26) and ‘Securitisation– taming the risks or camouflagingthem’ by alumnus Russell Bradshaw(page 18). Should you wish to learnmore about our Research Centres, ourResearch Officer, Martyn Griffin wouldbe delighted to take your call.

This year has been as eventful as anyand in this issue we share with yousome of the School’s highlights, whichinclude the MBA 25th Anniversarycelebrations sponsored by AlcatelLucent, the expansion of the School’spresence at Queen’s Campus and thelaunch of our International CorporateForum in one of our key internationalmarkets, Shanghai.

Finally, following three successiveimprovements in the Financial TimesGlobal Full Time MBA rankings inrecent years, we were delighted to seeour Masters in Finance programmespositioned 28th in the world when theFinancial Times published the results of their inaugural ranking of Masters in Finance programmes in June. This isa new addition to their ever expandingportfolio of Business School rankingsand aims to provide an evaluation of thebest masters’ programmes in financeoffered by leading business schoolsacross the globe. This confirms that our programmes are among the best in the world, an excellent result for both the School and the University.

Professor Rob Dixon, Dean

Following a chaotic year for UKuniversities, and considerable pressand political speculation over HigherEducation reform, fair access and visarestrictions, Durham Business Schoolis well positioned for the challengingtimes ahead.

University NewsLIGHTS, CAMERA, ACTION!Durham had a touch of Hollywood glamourearlier in the summer when actor RussellCrowe took time out to pass on his actingtips to students at the University. Crowewas visiting Durham following a long-standing invitation from his friend, theUniversity’s Chancellor, Bill Bryson.

Crowe commented: “I had a great timeand there are some really talented studentswho were very enthusiastic. It was a lot offun. Every part of the description of Durhamgiven to me by Bill was true. It’s beautifuland the Cathedral is really impressive.What a place to learn.”

NEW ANCIENT EGYPT GALLERY OPENSIN DURHAM The new Wolfson Gallery of Ancient Egyptin Durham University’s Oriental Museumwas opened on 23 July by Craig Barclay(curator of museums at DurhamUniversity). The gallery has been fundedby the DCMS/Wolfson museums andgalleries improvement fund and theFriends of the Oriental Museum. TheOriental Museum has arguably the bestEgyptian collection outside the BritishMuseum but only a small proportion of the collection can be on display in Durhamat any one time (currently part of thecollection is in Taipai). Well worth a visit!

School NewsSCENARIO THINKING – IN PRACTICE Co-authored by Professors George Wright,DBS and George Cairns, RMIT University,Australia, “Scenario Thinking: Practicalapproaches to the future” provides a practical, step-by-step guide toimplementing the “intuitive logics”scenario method as well as showing how the conventional scenario method of intuitive logics can be augmented.Published by Palgrave Macmillan, 2011 – ISBN: 978-0-230-27156-2.

PROFESSORRICHARDCHAPMAN It is with deepregret that weannounce the deathearlier this year (15April) of ProfessorRichard Chapman.Richard’s longassociation with

Durham University began in 1971. As well as a spell as Dean of the Faculty of Social Sciences, his varied rolesincluded Emeritus Professor of Politics and Honorary Research Fellow at DurhamBusiness School.

SCHOLARSHIP AWARDS We are delighted to announce the namesof the winners of the Alcatel Lucent MBA Scholarship and the FD Ellis MBA Scholarship.

Sebastian Wolfgarten, who is based inFrankfurt, takes up his place on the full-time programme in Durham later this yearthanks to the generous sponsorship ofglobal communications company AlcatelLucent. In the same cohort will be the

winner of the FD Ellis Scholarship – IsabelValesco. Isabel, a Colombian mechatronicsengineer, lives in Bogota. The FD EllisScholarship is named in memory of thefather of Dr. David Ellis, a former DurhamUniversity student who is now a leadinginternational economics expert and amanaging director in a top Londonbusiness advisory firm.

CORPORATE FORUM GOES TO CHINADurham Business School is building on the success of its Corporate Forum eventseries, usually hosted at the School inDurham, and launching it on a globalscale, with annual events taking place in key international business hubs.

Recognising the importance of China inthe global economy, the first event tookplace in Shanghai on 21 July 2011.Generously sponsored by one of theSchool’s corporate partners, the ChinaThree Gorges Corporation, this interactivepanel event was hosted in collaborationwith partners Fudan University and theHurun Report.

As well as hearing Professor AlessandraGuariglia, DBS, speak on the topic ‘Growth and sustainability of Chinese firms: the role of productivity andInternationalisation’, attendees had theopportunity to meet members of globalfaculty, students and alumni.

With journalists present from several of the major Chinese newspapers, includingThe Shanghai Morning Post, The XinminEvening Post and The Shanghai BusinessDaily, this successful event will furtherbuild upon the School’s corporate relationsin the country, as well as establishing newlinks and deepening existing partnerships.

CONFERENCE ON THE CHINESECAPITAL MARKETIn collaboration with the European Journalof Finance (EJF), the China Developmentand Research Centre at Durham BusinessSchool is to host a conference on 3-4September 2011 on the topic of Chinesecapital markets. Keynote speakers include:Jun Qian, Boston College and WhartonFinancial Institutions Centre and HuiyaoWang, Harvard University and Centre forChina and Globalization.

NEW DOCTORAL TRAINING CENTRE IN ISLAMIC FINANCEBuilding on its expertise in Islamic finance and business related research, the University has launched a new doctoraltraining centre. A collaboration betweenDBS and the School of Government andInternational Affairs, the Durham Centrefor Islamic Economics and Finance beginsoperating in the autumn.

Durham has been a centre for research in Islamic finance for over 25 years, with a significant history of PhD study. The new centre will build on this success andthe international popularity of the annualDurham Islamic Finance Summer School.

5news news news news news news news news

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Alumni – UpdateA very warm welcome to the Autumn edition of Agoranews. Since thelast issue, the Agora team have been hard at work exploring ways toenhance our alumni provision and I am delighted to introduce some of the resources and promotional discounts that we have acquired for the benefit of our members.

You may recall that in a previous issue we highlighted the launch of the Global Learning Centre whosephilosophy is to provide globalbusiness with innovative solutions tolearning unconstrained by internationalborders and time zones. In view ofDurham’s commitment to lifelonglearning, the GLC have opened upsome of their short courses to alumni,with a significant 50% discount toDBS alumni. More information andcontacts details can be found on theinside cover of this issue.

The world of work is changing fast and continuing economic turbulencehas created significant challenges forjob seekers at all levels, irrespective of qualifications and experience.Employees can no longer expect towalk into a ‘job for life’ and it istherefore important that you are‘Career Active’, pro-actively managingyour career using a career plan withrealistic goals and SMART objectives.Understanding the different types ofcontemporary career paths and how to navigate their complexities is vital.ResilientExec is a powerful online toolprovided by HR Consultants Pennawhich can help you develop your careerin the direction that is right for you.

Recently acquired for DBS alumni, thisresource offers a range of informationavailable through powerful databases,articles and podcasts as well as linksto external industry-recognised sourcesand useful interactive exercises. Thereis access to a wealth of informationthrough premium research databasessuch as Lexis Nexis and OneSource, as well as exercises to help you tounderstand your career drivers anddiscover the right career path andultimately, the right job. Tools available

include Job Spider, a powerful onlinejob-search tool that will give youaccess to more than 800,000 jobopportunities. There are also links toexternal resources such as relevantindustry websites and newspublications. Enjoy using the site and remember to be career active!

Other resources recently obtained forAgoraweb include ‘10 minutes with’which is an educational websitedesigned to help students and

To gain access to all alumni resources, includingResilientExec, contact dbs.alumni@durham.ac.uk

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graduates understand the true natureof different jobs and identify the careerpaths that most suit them. One of themost important things when planning a career is to research the options that are available in the market. ‘10minutes with’ houses a vast number of interviews with director levelindividuals and provides valuableinsight into the true nature of differentjobs. Recent uploads have includedinterviews with Head of Liquidity –Shell, Head of PR – Microsoft Xboxand Head of Talent Management –Panasonic. Full details are available on Agoraweb (www.agora.org.uk).

The Agora team works closely withother departments across the School toenhance the student experience. Oneof our student engagement initiativesis the DBS Mentor Scheme and in thisissue we announce this year’s ‘Mentorof the Year’ as well as sharing apractical guide on how to get the mostfrom virtual mentoring (page 16).Thank you to alumna Nicola Shearerfor providing this feature.

Another exciting student activitylaunched this year was the Class Gift.Through a series of charity events, thecurrent MBA cohort has raised moneyto partially fund an MBA scholarshipfor the next cohort. We look forward to welcoming new student Sam Strootwho has been awarded the 2010/11MBA Class Gift Scholarship.

As Professor Dixon mentioned in hisDean’s message, the development of the Mill Hill Lane building is due to start early 2012. As part of ourfundraising campaign we are invitingalumni to sponsor a seat in one of ournew, state of the art lecture theatres.Alumni and supporters of the Schoolwho generously donate £250 will behonoured with a named plaque on theirchosen seat for five years. We are

currently designing an interactive toolwhich displays the lecture theatre inquestion and enables you to select aseat and write the message you wouldlike to be seen on your plaque. Thispart of the website should go live lateAutumn so keep your eyes peeled.Should you wish to share ideas andthoughts on this initiative pleasecontact me via email:dbs.alumni@durham.ac.uk

Since the last issue went to print wehave welcomed a new member to theteam. Many of you will have alreadymet Hayley Ferguson (at least virtually)who joined us earlier this year fromThe Centre for Life in Newcastle. She is a fantastic addition and hugeasset to the team and I am sure youwill all make her feel part of theDurham family.

We hope you enjoy this issue, whichhas the usual features such as theAlumni Q&A, book review and photosfrom our Summer Graduation BBQ aswell as much, much more. As ever wehope you enjoy reading it and welcomeany feedback or suggestions you mayhave on improving our communicationto the Agora network.

Finally a quick heartfelt thank you for all alumni and staff contributions to Agoranews in 2011.

Alexandra SedgwickAlumni Relations Manager

Hayley Ferguson,Alumni Coordinator

The power ofcohort connectionsWhen Pete Watson, Jim Brown and PhilRichardson signed on for a part-time(Executive) MBA in 2006 they werestrangers. Each had expected the MBAto change them; they knew that wouldhave to work hard, but that they wouldlearn a lot.

All three had chosen DBS for itsreputation, rankings and location.

However they hadn’t factored in the restof the cohort, the people they’d get toknow whilst studying and the impactthat they would have on their future.

Pete, Jim and Phil became good friends,regularly meeting for a beer after classesdiscussing, amongst other things, theirbusiness development ideas.

Subsequently, Pete decided to combinehis interim management businessPeople Boutique with Jim’s companyInterim Finance FD North East, togethercreating investment readiness businessSherpa Business Consultancy whichspecialises in helping companies raiseventure capital and execute theirbusiness plan.

Meanwhile Phil’s interests lay in cloudcomputing and, realising how few suchspecialist companies there were, hedecided to set up Atlas InfrastructureManagement Limited. This is where the DBS connection really paid off.

With the help of Pete and Jim’scompany Sherpa, Phil raised the money(£250K) through local venture capitalfirm North Star and Angel investors.Now his business, offering pay-as-you-gohosted desktops which can make 70%power savings and a 20% saving onoverall IT spend, has clients as far afield as Italy.

Pete says: “I didn’t anticipate findingfuture business partners in theclassroom; however the DBS networkwas invaluable to us.”

For more information on AtlasIMcontact: pete@atlasim.co.uk

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Trust: the building blocksand the repair kit.Now, more than ever, managingtrust in the workplace is an essentialmanagement competence. Knowinghow trust is built, supported andrecovered helps to nurture positiveworking relationships, and trustingrelationships at work have beenproven to deliver real bottom-linebenefits. A trusted organisation ismore likely to produce superiorperformance and to enjoy repeatbusiness with customers andinvestors, as well as be a great placeto work. A trusted organisation isalso more likely to recover effectivelyfrom a crisis. Yet, while trust is astrategically valuable asset, it is also elusive and in short supply in many organisations.

Research and consultancy at DurhamBusiness School is at the forefront ofwork on trust. A new report co-authoredby Dr Dietz with his colleague Dr NicoleGillespie (University of Queensland,Australia) and published by theInstitute of Business Ethics (IBE),provides insights and guidance for any organisation that needs to (re-)build trust.

The report, Building and RestoringOrganisational Trust, starts from first principles, and shows how‘trustworthiness’ is made up of threecharacteristics: ability, benevolenceand integrity. A trustworthyorganisation is one that operateseffectively (ability), acts with dueconcern for the interests of itsstakeholders (benevolence), andconducts itself honestly and fairly(integrity). This, then, is the first trustchallenge for businesses: building areputation for trustworthiness based

on demonstrating these threecharacteristics, consistently andwillingly, day in and day out.

It follows that getting any of the three characteristics badly wrong candamage a trusted reputation. That’swhen understanding trust repairbecomes critical, because the qualityof the repair effort can make or breaka firm – just ask News International.

Sponsored by PricewaterhouseCoopers(PwC), the specially commissionedreport was published in June this yearby the Institute of Business Ethics (IBE:www.ibe.org.uk). Established in 1986to encourage high standards of businessbehaviour based on ethical values, theIBE encourages high standards ofbusiness behaviour based on ethicalvalues, and offers practical andconfidential advice on ethical issues.The parallels with trust are obvious.

Dr Graham Dietz, co-author of Building and Restoring Organisational Trust, is aSenior Lecturer in Human Resource Management and Organisational Behaviourat Durham Business School. Prior to this he worked at Erasmus UniversityRotterdam, and the London School of Economics where he completed his PhD.

His research focuses on trust repair after organisational failures, as well as trust-building across cultures. He also conducts research into the impact of HRM on performance. He has published over 15 articles in leading internationaljournals, and is a regular speaker on trust.

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But trust is not just a matter of ethics;the report provides compellingresearch evidence that trust fostersand sustains positive employeeattitudes and behaviours, underlieseffective working relationships, andcontributes to superior levels oforganisational performance. In short,trust-based business costs less, and ismore productive and more enjoyable.

In his foreword to the report, RichardSexton, Head of Reputation andPolicy, PwC UK notes that as well as being insightful, this report is also timely. Recent high-profile events have created a perception of a disconnection between corporate

behaviour and ethical conduct, whichin turn has triggered a sense thatpublic trust in business has declined.

“This rising tide of distrust shouldconcern us all”, he writes. “Withouttrust, life for any organisation becomesmuch more difficult. Everything it saysor does will be called into question.People will be suspicious of itsmotives. Ultimately they may refuse to share information or even to dobusiness with it”.

Combining cutting-edge academicresearch on the ‘science’ of trust withprominent case studies of trust failureand trust repair (including examples

from BP, Mattel Toys and the BBC),Building and Restoring OrganisationalTrust will be of interest to anyone whois responsible for building, enhancingor recovering trust within theirorganisation – whether they are leaders,managers, staff representatives oremployees. The report is especiallyvaluable to anyone working in Business Ethics/Compliance, OrganisationalDevelopment, HR and Public Relations,as well as managers, lawyers andconsultants whose work is driven by a concern for ethical working practices,organisational reputation, and corporateresponsibility.

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Key to the authors’ thinking is a modelin which there are six elements thatcontribute to an organisation’strustworthiness. These are:

1. Leadership and managementpractices (i.e. role-modellingacceptable thinking and behaviour)

2. Strategies, including for finance,sales, marketing, operations andHR (i.e. setting priorities)

3. Cultural norms, beliefs and values(i.e. a shared understanding on how to think and act)

4. Structures, policies and procedures(i.e. constraints and incentives onhandling work tasks)

5. The external governance regulatinghow the organisation can operate(i.e. externally-imposed constraintsand incentives)

6. Public reputation (i.e. how theorganisation is presented in themedia and by industry bodies).

Not only do these six elements sendout signals about the organisation’strustworthiness, but they are alsopowerful influences on how employeesundertake their work tasks. The report shows how each element can be configured to encouragetrustworthiness, and discouragemalfeasance and incompetence. That’s the ‘building’ part.

The final part of the report providespractical guidance for trust ‘repair’following a crisis. The authorsrecommend a four-stage response,with a range of tactics and options foreach stage: the immediate response, a diagnosis, reforming interventionsand finally an evaluation of progress.They discuss different repair responses,highlighting both good and poorpractice. Reading the report will helpprepare managers to deal with trustfailures, and to consider in advancewhat responses are required tominimise the impact.

But trust is a complex idea, and so the report is not a simplistic how-to’guide. The authors do not shy awayfrom addressing some of the very real paradoxes and contradictions inbuilding and repairing trust. Insightsfrom practitioners who have livedthrough major trust repair effortsprovide guidance for reflection andaction. The report is already beingdistributed widely within many of the IBE’s leading corporate clients.

The full report can be purchased from the Institute of Business Ethics(£25 to non-subscribers, £12.50 to subscribers). Available fromwww.ibe.org.uk

To discuss your trust challengeswith Dr Dietz contact him on+44 (0) 191 334 5401, orgraham.dietz@durham.ac.uk

G R A D U AT I O NHow does that A-ha song go? – The Sun Always Shines onTV! It appears that the sun always shines on DBS SummerGraduation Day too (well, nearly always!)

DBS graduates for the summer ceremony once more enjoyedthe magnificent setting of Durham Cathedral for their specialday – how many other Universities can boast that they holdtheir celebrations at a World Heritage site?

This year’s summer graduation marked the final set ofceremonies at which Chancellor Bill Bryson will preside. He will step down at the end of this academic year havingheld the post since April 2005 and doing a wonderful job as a great ambassador for Durham.

Following the formalities at the Cathedral the new graduatesand their family and friends made the most of the sunshineby enjoying a barbeque back at the Business School.

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Queen’s CampusDevelopment

Recently appointed to the role of Director of Full-TimePostgraduate MarketingProgrammes, Dr Victoria Wellsshares the School’s vision for its Queen’s Campus in Stockton.

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As part of the University’s 2020Queen’s Campus development strategy,Durham Business School will have anincreased presence at Queen’s Campus,from Summer 2011, with a significantgrowth in student and staff numbers,new programmes of study at all levelsand a corresponding development ofteaching and research space and social facilities.

August 2011 saw the launch of theground-breaking KPMG new schoolleavers’ programme in accountancy, the first of a number of new programmedevelopments. This will be followed inSeptember 2011 by new 3 and 4-yearundergraduate courses in business and marketing, including innovative 4-year courses such as the MMarketingand MBus degrees combining anundergraduate and masters course inone. These will be followed in 2012 bya new suite of undergraduate financeprogrammes including 3 and 4-yearaccounting and finance courses.

In October 2011, two new masterscourses in marketing will also belaunched at the Queen’s Campus –the MA in Marketing Managementdesigned to meet the needs of non-business graduates and the MSc inStrategic Management designed as aspecialist Masters for Marketing andBusiness graduates who want to learn,research and practice Marketing in a global context. Professionally-

recognised and business-engaged,these research-led programmes willallow students to develop a specialistskills set in Marketing and realise thevision for Queen’s as a research-ledcampus with a distinctive offeringbased on interdisciplinary researchwhich has strong links to the localregion and community as well asinternational relevance and impact.More information about all of the new courses can be found on theDurham Business School website:www.dur.ac.uk/dbs/degrees

In readiness for the new academicyear, there will be an extendedBusiness School presence on the third floor of the Ebsworth buildingand in 2012 a new 4th wing will beadded to the Wolfson ResearchInstitute. This major development will create state-of-the-art facilities for Durham Business School, allowingfor a greater focus on research,postgraduate and undergraduate study in marketing, accounting,communication science and relatedbusiness subjects to support thestrategic development of Queen’sCampus as a centre of researchexcellence. The first floor will containboth staff offices and an experimentalresearch laboratory. The NorthernDeanery and Durham University willalso be located in the new wing,sharing a new NHS primary caretraining facility.

In addition, there will be significantinvestment in the Library, CareersService, social spaces and the generalsupport infrastructure of the campusto underpin these academicdevelopments.

Further information on all the currentand future developments at theQueen’s Campus as well as the full2020 Queen’s Campus developmentstrategy can be found atwww.dur.ac.uk/queens-campus/future

As Director of Full-Time Postgraduate Marketing Programmes, I am excitednot only about the launch of our two new marketing masters programmes,which will allow us a greater focus on marketing teaching, but also aboutthe investment and physical development at the Queen’s Campus itself.The new developments will allow us to foster a research led, businessfocused approach to our work and our student’s education. The development of an experimental lab in the Wolfson extension is alsoexciting for our research programmes, enabling us to work at the forefrontof technology and utilise exciting new methodologies in our work.

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What is your current role?My title is Chair in Finance. At themoment I teach Corporate Finance onboth the MA and MBA programmes; I also supervise dissertations for the MA and undergraduate economics and finance students.

What are the most challengingparts of your job?A long time ago I went down to a classroom to administer a finalexamination in a PhD course I had justtaught, Mathematics for Econometrics,only to find that a student had writtenthis on the board:

FINAL EXAMINATION:Mathematics for Econometrics:

Part A: Think of a theorem.

Part B: Prove it.

The real joke is that this really is my job.It helps if the theorems are abouteconomics and finance!

What do you want to achieve?Most of my research centres on one oftwo things. The first is how informationis integrated into markets and thesecond is how the ability or failure to beable to keep promises affects economicoutcomes. It turns out to be essential to think about both issues in dynamicways, and I’ve had some successes. Forexample, a classic question in monetaryeconomics is ‘what is the ideal rate of inflation?’ By interpreting this as aquestion about information, you can givean exact answer. As a second example

one can ask how property rights affectthe economic development of poorcountries. Are good property rights thechicken or the egg? By interpreting thisas a question about promises, you canexplain why some poor countries growmore slowly than our previous theorieshad predicted.

My main goal is to develop methods togauge how information and promisesinteract. It turns out that for technicalreasons this is incredibly hard. Thepayoff will be an improved ability to talk about asset markets and importantphenomena such as recessions.

To develop these sorts of abstract models,I think about applied economics. In thecourse of my research I’ve been inspiredby babysitting cooperatives, taxi drivers,CEO pay, and cattle breeding.

What drives you?There are two moments of truth. Thefirst is the eureka moment when youfigure something out that was previouslyobscure and difficult and technical. The second is when you publish it –then it is yours forever.

When you first look through amicroscope, or a telescope, you see ahidden world. Good theory similarlybrings the world into focus and order in unexpected ways. My research oninformation and promises has alreadyproduced some surprises, and you getaddicted to developing furtherimprovements.

What was the best career adviceyou were given?If you can write the problem downclearly, you have a much greater chanceof actually solving it.

What advice can you offer to students andalumni thinking of an academic career?In my world there is unending potentialfor insight and discovery. There is a long history of people thinking thateverything was known and discoveredalready, but we are constantly learningnew things. A recent example is the lightfield camera, which allows you to vary the focus of a photograph after you havetaken it. What a creative insight, and it is only a few years old. (My interest in itsprings from its use of Fourier analysis.)

When you have that eureka moment,you are the first and only person in theworld who knows it. It’s kind of likehaving hole cards in a poker game thatgive you a lock – you feel a kind of innerserenity. But you might need to sweat a little to get from eureka to eureka.

You can email Bart at:bart.taub@durham.ac.uk

Continuing our ‘Introducing…’ feature, here we meet a recentaddition to the School’s faculty:Professor Bart Taub, Professor in FinanceBart has been an academic for over 30 years, obtaining his PhD in Economicsfrom the University of Chicago in 1981. He recently moved to Durham BusinessSchool from the Department of Economics at University of Illinois. His researchinterests include Macroeconomics, Asset Markets and Contract Theory and hehas represented Durham University around the globe, most recently as a panelmember at this year’s Shanghai Forum where he spoke on UK Bargaining Powerand the Structure of Alliance Contracts.

introducing......

25 yearsThe weekend activities started early onFriday 03 June with the third annualDurham Convention, fast becomingone of the biggest business events inthe region and this year generouslysponsored by global communicationsspecialists Alcatel Lucent.

The Convention, facilitated by TVpresenter Wendy Gibson, boasted animpressive list of speakers includingArctic adventurer Rona Cant, Radio 4’saward winning financial reporter andpresenter Adam Shaw, social mediaexpert Tracy Playle, the face behindPickle Jar Communications, andDurham economics alumnus JamesAverdieck, founder of specialitypudding brand, Gü.

A beer tasting by local micro-brewers,Durham Brewery, provided lightentertainment on Friday evening, over which alumni, staff and visitorsexchanged news and business cards.

A range of MBA refresher courses were offered on Saturday, on topicsincluding Leadership, Finance, and Innovation. Well attended andreceiving very positive feedback, theseare set to become a regular addition to the Agora calendar.

The Alumni Ball at Durham’s newestluxury hotel, the Radisson Blu,rounded off Saturday and, for thosewith energy left over, there was theopportunity for a round of golf on Sunday.

Dean Rob Dixon said: “This weekendhas highlighted the range and depth of the School’s activities. We haveheard from some remarkable andinspirational speakers and broughttogether members of our globalalumni network, enabling them to take advantage of networkingopportunities, skills refresher sessionsas well as re-visit our beautiful City.”

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This year marks the 25th anniversary of the Durham MBA and, to celebrate the occasion, the School threw open its doorsfor the first weekend of June to play host to over 150 guests.

Celebrating 25 years of the Durham MBA

VirtualMentoringIn practice virtual mentoring can be a hybrid oftelephone calls, video conferences, Skype calls, the exchange of emails, occasional texts and the odd face to face meeting if one or both of the parties has the opportunity to travel on business to the other’s location. This article suggests seven tips for successful virtual mentoring.

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Ahead of the launch of the 2011/12DBS Mentor Scheme, alumna andDBS Mentor Nicola Shearer revealsher tips on getting the most out ofvirtual mentoring. Nicola Shearer MBAMEng (Oxon) is a Global Coach andDirector of Little Springtime based inSierra Leone and UK. She has a trackrecord of supporting leaders of FTSE100 companies as well as Governmentat National Level.nicolashearer@littlespringtime.com

TIP 1: SHARING INFORMATIONWhilst in face to face mentoringsessions, people can often quicklyestablish rapport through picking up onthe tone of voice or facial expressionsand mirroring body language. This canbe harder to do via telephone or videoconference which is why in virtualmentoring it is recommended thatindividuals focus on building rapportearly on by sharing as much informationabout themselves as they findcomfortable. In his book “EveryoneNeeds a Mentor” David Clutterbucksuggests using some of the followingquestions in order to tap into theemotional personality of thementee/mentor.

• What do you care passionately about?

• What are you most proud of in your career?

• What do you enjoy most about your work?

• How would other people describe you?

• What is your biggest ambition in work, outside of work?

• Who do you admire and why?

TIP 2: DON’T JUMP STRAIGHT INIt is often good to start each virtualsession in the same way you would starta traditional face to face mentoringsession asking after health and families,the weather (if you are British) etcbefore jumping straight into the firstagenda item. In some cultures it can be seen as very rude to go straight to business.

TIP 3: CROSS-CULTURALAWARENESSWith virtual mentoring, there is a strong likelihood that individuals will be mentoring someone from a differentculture and background be thatinternational, gender, generational or regional. In this case the potential for stereotyping, which can reduce the effectiveness of the mentoringrelationship, is high. It is therefore vital to spend some time in your virtualmentoring pair exploring each other’sculture. How is time viewed, what arethe rules (written and unwritten), how ispower shared/displayed, how do peopleview hierarchy and responsibility, howopen are you with your emotions, howare decisions reached in that culture?

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Share some assumptions you haveabout your mentor/mentee’s culture,and find out how accurate they are. For example:

• My assumption is that your culturesees organisations as veryhierarchical where the boss is alwaysright and you don’t contradict orchallenge him or her, is that correctfor you? Tell me more about that.

• My assumption is that you have avery optimistic attitude because youcome from the USA where peoplehave a very “can do” attitude. Is that true for you?

TIP 4: TELEPHONE MANNERIn virtual mentoring be aware that you may have a different tone of voice,body posture and manner when on the telephone or video conference asopposed to when talking to someoneface to face. The difference is lessnoticeable in generations who grew up with universal access to mobile and internet phones but can be quitemarked for those who did not. Try to ensure your telephone or videoconference style is as relaxed andnatural as your face to face style.

TIP 5: DON’T BE AFRAID OF THE SILENCEAnother difference is the degree towhich individuals are comfortable withsilence on the phone. A few secondsface to face silence when you can seesomeone planning to articulate theirthoughts and feelings can be easierthan the same amount of silence on theother end of the line. In western societypeople change radio channels after 4.5seconds of silence – hardly enough timefor a reflective sigh. Remember NancyKline’s assertion that the head thatcontains the issue also contains thesolution – pause and let the silencecontinue – there is thinking going on.

TIP 6: LEARNING LOGAnother aid to maintaining and buildingrapport remotely is for the mentee tokeep a learning log and to sharehighlights and reflections via email.This not only helps to maintaincontinuity between sessions but canalso stimulate quality questions at thenext session as the mentor will havehad time to digest the content. This log can help both the mentor and thementee to spot patterns or repetitionsthat they may not have picked up in the speed of face to face conversations.Using the occasional text to check-in or communicate a success can be a real boost for both mentor and mentee.In the middle of a gruelling businesstrip getting a light hearted “Thanks forlistening – I tried out what we discussedand it worked!” can be as uplifting as the mentee getting a “Well done” in response.

TIP 7: GENEROUS LISTENINGFinally remember that it is just asimportant to listen respectfully andgenerously during remote mentoring as it would be if the person were in the room with you. That means turningoff other phones/ blackberries andrefraining from checking emails – typingon a keyboard is not silent and can beheard on the other end of the line.

With email, texts, telephone, Skype and video conferencing and the globalnature of our businesses today, having a virtual mentor/ mentee can be asinteractive and as beneficial as having a mentor in the next office.

The DBS Mentor Scheme is continually recruiting new mentors.If you are interested in supporting a current student, please contactdbs.alumni@durham.ac.uk

MENTOROF THE YEARAgora is delighted to award the‘2010/11 Mentor of the Year’ to Utsav Malhotra (MBA 06/07).

As well as mentoring current studentsover the past few years, Utsav is one of our most dependable contacts withinthe alumni network whom we rely upon to help prospective students with theirqueries about the MBA programme.

Ustav’s current mentee, MuhammadArmandi Oesman (Armand), said ofhis mentor, ‘he knows how to motivatepeople and he was able to give me alot of insights about getting throughthe MBA based on his own experience’.

As a thank you for achieving thisaccolade, the School sent Utsav a£100 Amazon voucher. His reactionto the award was “I think people giveback for the love of their alma-mater”.

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DBS MBA alumnus RussellBradshaw is a practisingstatistician and researchanalyst with more than 15years experience of analysingquantitative research data. He studied with the full-timeMBA cohort 2005/2006 andwas awarded both a distinctiongrade and the Sage prize forbest academic achievement.

Russell has consulted on a diverse range of topics,including working withAccenture in developing newanalytical tools and with theOffice for National Statistics on methods for improving theaccuracy of Consumer PriceInflation measurements.

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Securitisation– taming the risks or camouflaging them?

In April of this year, the UK’s Independent Commission on Banking (ICB) released its interim report. This has beenseen as a clear direction for where the final report (due inSeptember) will lie. Much of the narrative surrounding theinterim report has been on suggestions for making bankingsafer for the future and less likely to burden taxpayers in support of floundering financial institutions. However, a closer look at one aspect of the ICB’s findings suggeststhat they might not be as water tight as first thought.

In response to the ICB’s “Calls forEvidence”, a 10 page paper wassubmitted by the author, exploring the role played by securitisation (e.g. mortgage backed securities) in the lead up to the crisis of2007–2008. The importance of securitisation to the ICB was clearly outlined in their openingposition paper:

“It was argued and widely acceptedduring the pre-crisis period thatdiversifying exposure to credit riskthrough securitisation made thefinancial system more stable… the events of the financial crisisshowed the opposite.” (ICB Calls forEvidence Paper 2010, Section 2.9)

In addressing this aspect, the interimreport contained recommendations for ring-fencing the handling ofsecuritisation to prevent Retail

banks from becoming involved in thepractice; a tentative step towards the re-instatement of Glass-Steagaltype separations between Retail & Investment Banking. But would this separation help prevent futureproblems? To fully appreciate this we need to examine the historical role played by retail banks andcompare it with the modernphenomena of securitisation.

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TRADITIONAL RETAIL BANKING – ORIGINATE TO HOLDA retail bank undertakes matchmaking between borrowers and lenders. As an expert “intermediary” it has to skilfully manage two sides of a verydelicate balance sheet; its assets and its liabilities. Depositors have to trust that the bank can honour any obligations – they expect their money to be fullyreimbursable on demand. The bank then has to ensure that the quality of itslending does not put its finances at undue risk. Calling in a loan from a borrowerhas many complications and in cases where a borrower defaults, a bank is notguaranteed to obtain full compensation in returned monies.

Banks therefore undertake various risk management strategies, to protectthemselves from the potential abuse of trust by borrowers:

A retail bank essentially operates to appropriately contain or avoid risk. A bank can’t conduct anything akin to alchemy by transferring, transforming or de-toxifying the risk. It is a self contained system that has therefore evolvedsensible practices to either avoid the risk in the first place or absorb the erraticnature of default/delinquency. It does this either through the appropriatedilution of risk in its loan pool, or by holding a sufficient cushion of capital to smooth losses over time. This description of banking intermediation is oftenreferred to as the “originate and hold” model (O&H) as banks could not trade or sell-on the loans that they had initiated. The risk stayed within the bank, andwould be suitably visible to management, shareholder and regulatory oversight.

MODERN BANKING – ORIGINATE TO DISTRIBUTE,A.K.A. SECURITISATIONDeregulation of the banking sectorsince the 1990s has led to thefeasibility of banks selling-on loans,known as the “originate and distributemodel” (O&D). This has led to afundamentally different marketstructure whereby an increasingproportion of loans are packaged up and traded as securities on asecondary market (e.g. Asset BackedSecurities such as Collateralised Debt Obligations – CDOs).

Under this regime, tasks that would normally be the integratedresponsibility of banks becomedissected, with one of the most criticalaspects, the pricing of risk and thesupervision of borrower behaviour,being placed within the hands ofsecondary markets. However, withcredit risk assessment (by theOriginating bank) becoming separatedfrom credit risk responsibility (restingwith the Holding institution), it seemshighly unlikely that the quality of loanevaluation would improve. Indeedevidence collected and published on the cusp of the crisis in 2008demonstrates that securitised loansseverely underperformed:

“We find that borrowers with an active secondary market for their loansunderperform their peers by about 9% per year in terms of annual, risk-adjusted abnormal returns, over athree year period subsequent to theinitial sale of their loans.” Berndt & Gupta (2008) “Moral Hazard andAdverse Selection in the Originate-to-Distribute Model of Bank Credit.”

The very structure of securitisationcould be facilitating the exploitation of moral hazard and asymmetricinformation concerns that have doggedbanking for centuries. Borrowersthemselves may be making inferiorloan judgements (with easy credit

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IN CONCLUSIONThe Independent Commission onBanking may well conclude thatfirewalls should be erected betweenRetail and Investment banks.However, the role of securitisationboth maintains a mutuallyinterdependent link between the two types of institution, plus placesthe overall system at higher risk bycreating perverse incentives for lowerquality lending within the economy.This is no longer a closed system, but instead an open system where risk ownership and responsibility canbecome complex and obfuscated.

At the time of the crisis in 2007–2008both Northern Rock & Lehman Brosalready sat either side of the notionalbanking firewall. This argument hasbeen used to dismiss the potential

effectiveness of such a compulsorydemarcation. Such a split wouldindeed be little more than a Potemkinfirewall; a flimsy masquerade thatwould provide no genuine safeguardsat all. But this should not be concludedat the expense of ignoring a morefundamental point. These two fragileinstitutions shared in common a heavyreliance on Securitisation. Much ofthe debate about the market structureof banking seems to ignore this crucialissue, yet it seems certain that thiswas the underlying cause of theirfinancial distress.

We mustn’t forget that the practice of Originate and Distribute is still newterritory, and currently one with a verypatchy record. Given that the verticalfragmentation preserves an umbilicallink between two distinct systems

(one required to be totally watertight, the other free to be more risky), itseems that we can’t yet declare thatthe future of banking is as safe ashouses, until we confront this specificissue head-on.

In November 2010 Russell submitted a paper to the Independent Commissionon Banking, you can find it by visitingthe ICB website (http://bankingcommission.independent.gov.uk) andsearching under his name and‘Responses Received’.

The submission was heavily influencedby the macroeconomic concerns ofexcessive credit growth outlined inPeter Warburton’s book Debt anddelusion: Central bank follies thatthreaten economic disaster. Published by Allen Lane (1999).

enabling an “extend and pretend” lifestyle which they can’t realisticallysustain), and/or loan originating firms could develop a tendency to ignore weakborrower circumstances (such as the spate of “self certification” mortgages).

It would seem then that loan quality is compromised under secondary markethandling, as a new outlet for risk transfers is enabled:

In the above framework, the Quantity and Quality of aggregate lending within aneconomy are deemed to be inversely related. Avoiding risk would lead to a lowerQuantity of lending, but is likely to result in overall Quality improvements. Asthe evidence cited above suggests, transfer of risk encourages greater Quantityof lending, but at an overall lower Quality. The traditional O&H approach isprevented from risk transfer practices, therefore the expansion and contractionof credit issuance is limited by a bank’s own ability to avoid or absorb risk.However, in an O&D environment the ability to engage in risk transfer practicescould reduce credit quality supervision, and therefore create increased levels of low Quality lending.

BOOK REVIEWB

I have to admit to being biased here.I’ve had the privilege of workingalongside Tim Clark for many years at the Business School and I thinkhe’s not only an outstanding academicbut also a really nice person, whichdoes rather scupper any attempts atobjectivity on my part and curtails my predilection for cheap comments,but stick with me…

Reading this book can give a student a rather privileged entry into how the “Magic Circle” of managementspeakers do their thing. Tim and hisco-author David Greatbatch analysethe performances of a handful of theworld’s leading business gurus, peoplelike Gary Hamel, Peter Senge, TomPeters and Rosabeth Moss Kanter, andin so doing, throw some much neededlight onto the “tricks” they employwhen plying their trade. By which Imean in the kind of stories they tell,the way they structure their remarksand the careful way they work andhandle their audience.

Tim, a professor of organisationalbehaviour at Durham, and David, a professor at Nottingham University,compare the techniques used by theseleading business speakers, “gurus” as they term themselves, to those ofpoliticians and preachers, and we seesome surprising results. The authorsshow how these gurus establish their credibility and manage their‘customers’, often with material that is solely geared to entertainment,humour and keeping the audienceengaged. A story by one such speakerabout how Sylvester Stallone got intothe movies, turns out when checkedonline to have been made up! Butthen these speakers don’t necessarilylet the truth stand in the way of a good story.

If you need to give a presentation and want to make a good and lastingimpression then perhaps a few eveningsreading Tim and David’s book will bothinform and enlighten you, and surelythat can only be a good thing whenyou next have to stand up and speakin public.

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DBS’s Librarian Colin Theakston reviews

Management Speak: Why We Listen to WhatManagement Gurus Tell Usby DBS Professors David Greatbatch and Timothy Clark(Published by Routledge 2005)

BOOK REVIEW

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During a meeting with my mentor –Steve, the successful consultant/director of First Ascent Group – I askedhim to suggest one skill I should workon improving, to succeed in business.The answer Steve gave was ‘networking’.

Why is networking so important for ourcareers? I spotted a book called ‘TheNetwork Effect’ on Alex Sedgwick’sdesk just a few days later and shekindly let me borrow it. Many examplesin the book prove Steve’s point.

‘Chris Ingram, founder of the Tempusmedia-buying group failed to raise £6 million pounds to prevent WPPgaining control of the company backin 1996. He said ‘I couldn’t do it: I just didn’t have the network.’

‘Richard Reed, and other co-foundersof Innocent smoothies, raised themuch needed cash to start thecompany just by not only knowingrich people, and people who knewrich people, but also knowing thosepeople who took them seriously.’

‘James Dyson achieved success forhis company by knowing: a lawyerfriend of his brother in law whohelped him set up the first company,a former beauty queen friend topromote his products, a respectedbusinessman who was an old friendof his father to join the Board, aCanadian he sat next to on the planewho later became head of Dyson’sNorth American operations.’

These examples, to list just a few,demonstrate that success does notcome from pure luck. Rather, it comesfrom having a strong network to turn to when you are in great need of help.

So who would have thought thatnetworking is all about giving, ratherthan receiving? The key point tosuccess in networking is thewillingness to extend your help and offer to connect people in yournetwork with each other. This in turnhelps them become more open tosharing their own networks with you.Networking is also about having funwhile meeting new people andenjoying a meaningful conversation,regardless of what they have to offer.

This book offers an excellent range of tips and examples of how to start a conversation, keep it going and evenhow to step away when it is time tomeet someone else in the room. The‘Five corner’ goal is my favourite. Set agoal to meet at least five people: onefrom the middle of the room, and fourfrom the corners. Networking is alsolike gambling. If you are in, withoutknowing what you’ll get out of thepeople you meet, you have a 50percent chance of winning. However, if you refuse to take the risk and stayout of the game, you’re guaranteed a zero percent chance to win.

And finally, practice makes perfect.The key to success in networking is tokeep diving in, practising and learningfrom the experiences. Soon enough,the skills will become your secondnature, even if you weren’t born anexcellent networker.

My verdict? An excellent book!

Kristine Le, a current DBS MBA student, explains why she was delighted to read

The Network Effect by DBS alumnus Tony Newton and his colleague Judith Perle(Published by Management Advantage Ltd, 2011)

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GORDON MITCHESON-SMITHDISTANCE LEARNING MBA2002–2006I have recently become a Fellow of the Strategic Planning Society. Thefellowship recognises individuals whohave accrued substantial knowledgeand experience in the field of strategy and show a commitment to maintaining and developingprofessional management skills. MyMBA from Durham was a major factorin achieving this status. The StrategicPlanning Society (founded in 1967)promotes research and best practice in strategic thought and action. The SPS was instrumental in thedevelopment of strategy as amanagement science, and publishesthe leading international academicjournal ‘Long Range Planning’. Sinceachieving my MBA, I have spent timeas a consultant and interim managerin the technology sector (software andbiotech) and am currently working asCorporate Strategy Manager for CITB-Construction Skills, the Sector SkillsCouncil and Industry Training Boardfor the UK construction industry.

AIZHAN YERMEKBAYEVAHUMAN RESOURCES MANAGEMENT 2009–2010After graduating I spent four monthsjob hunting until finally acquiring atemporary job as PA to the deputy CEO of National Medical Holding JSC (NMH). In March, NMH took the decision to create a new companyto which they would outsource andcentralise all of the HR functions of their six affiliate hospitals andimplement an advanced humanresource management system. At this point I had established a goodrelationship with the members of the Board and they offered me apermanent position within the newcompany as HR Consultant. Needlessto say I was overwhelmed as I neverthought that I would obtain such a prestigious position so early on. My job is to hire qualified staff toprovide HR services and developadvanced HR policies and proceduresfor healthcare organisations. I lookafter the employer/employeehandbook, recruitment and selectionpolicies, performance management,performance appraisal and motivationprogrammes, and training anddevelopment policies. I’m alsoinvolved in the financial andorganisational part of this project,monitoring it every step of the way. I am delighted to have had theopportunity to study HRM at DBS as it has more than prepared me for this challenging role in HR.

TOM MULLENFT MBA2008–2009I recently finished writing a book I have been working since before the Durham programme began. Titled‘Vino Expressions – People, Wine, andLoving Work’, it includes interviewswith 50 people from a dozen countriesthroughout the world who are involvedwith the world of wine. These includewine and barrel makers, artists, a tourguide, a chef, a sommelier, a vineyardecologist, and others. The text iscomplemented by 120 colour photostaken by the author. The book exploreswhat makes people love their work,even though the career they choosemight not necessarily be easy orlucrative. The book was edited byBarbara Kral-Hasty, who was in thesame MBA cohort as me at Durham.Barbara is also a marketing consultantfor the book. The book is availableonline to be read on Amazon’s Kindlee-reader, or can be downloaded fromwww.vinoexpressions.com

CLASS NOTES

GEORGE BAMPAROUTSISMSC ACCOUNTING & FINANCE2009–2010After graduating from DBS with an MSc Accounting and Finance, I started applying for jobs all overEurope whilst undertaking aninternship as an accounting assistantin Athens. Fortunately, exactly whenmy internship period was about tofinish I received an offer from IBM to work as an accounting analyst intheir International Services Centre in Bratislava, Slovakia. During myinterviews it became clear that adegree obtained from DBS was highlyrespected amongst employers, and I believe it helped me to stand outfrom the crowd. After five months in the job, I feel that the knowledge I gained from my degree has beenextremely useful in helping me adjustsmoothly into my new position. Duringmy time at DBS I had the opportunityto improve upon many skills includingteam-working, leadership and timemanagement. Personally I feel thatthese skills, as well as the academicknowledge I gained from studying at such a high level, are of greatimportance. I believe that for anyEuropean student like me, it would beextremely difficult to get a job with amultinational company, such as IBM,without studying abroad. I believe aMasters degree from DBS gives you a great boost to start your career andobtain the position of your dreams. If you would be interested in a job at IBM I would be more than happy to refer any DBS alumni. My emailaddress is georgebabar@hotmail.com

BOB BURNSMSC MANAGEMENT STUDIES1976–1977Our 30th reunion of the DBS Class of1976–77 was so successful that wehave decided to do it again next year!Last time we had nine members whogathered over three days, with thereunion culminating in a grand dinnerwith several former members of thefaculty. We stayed at one of theUniversity colleges so we had plenty of time to reminisce about what PeterPearson called that “life-changing”year in our lives. Plans will soon becompleted and circulated to all of our old classmates. Those alreadyconfirmed are Peter Pearson, SimonWoods, Anna Shirley Scharf, LizThorley, Phil Owen, Geoff Lodge,George Bell, Bob Burns and “Naj”, our first faculty member. Please do let the Alumni Team know if you areinterested in attending this greatevent. We are looking to arrange it in either July or August of next yearand hope to see you all there!

JAY SINGGIHBA ECONOMICS2006–2010After graduating from DurhamBusiness School in June 2010, I decided to return to Jakarta,Indonesia. Since August 2010, I have been working in the Mergers & Acquisitions Advisory (TransactionAdvisory Services) Division at Ernst & Young, where my main role is inFinancial Advice. This includes adviceon Mergers & Acquisitions, Lead IPO,Infrastructure, and Public PrivatePartnerships. In addition to this, I have recently taken on a new role asChairman of the Young ProfessionalsGroup at the British Chamber ofCommerce in Indonesia (BritChamIndonesia), with the aim of “FacilitatingTrade & Investment between Indonesiaand Britain”. BritCham Indonesia’spartners include the British Embassyin Jakarta (UK Trade & Investment“UKTI” in Indonesia) and the IndonesianChamber of Commerce & Industry(KADIN Indonesia), where the aim ofthe Chamber is to further the interestsof British Companies in Indonesia,encourage cooperation between Britishand Indonesian businesses andgovernments, and bring aboutsustainable growth in trade andinvestment between the two countries.

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1. Gordon Mitcheson-Smith2. Aizhan Yermekbayeva3. Tom Mullen4. George Bamparoutsis5. Jay Singgih

1 2 3 4 5

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The Holy Grailof ServiceExcellenceService excellence is currently exciting much interest inbusiness circles. Confusion abounds – in part due to the fact that the topic crosses the boundary between process and philosophy, and is therefore hard to define. However thiscombination of heart and practicality is also its great strength,and the reason why organisations that have embarked on the journey are enjoying cost savings, rave reviews and revenue increases.

In her article Fiona Urquhart tracks the history of its evolution,describes how and why it works, and outlines the areas inwhich that it can save costs. Presented here is an extract. To read the full article, visit the careers section atwww.agora.org.uk

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We all know what good service is,don’t we? We certainly know badservice when we are unlucky enough to encounter it – a too commonoccurrence! Bad service leaves usfeeling disappointed, frustrated, andundervalued. The likelihood that we would subject ourselves again is remote, so we don’t return to thecompany; we feel aggrieved and needto “sound off” about it. Time was, wewould have done so to a few friendsand family (research says up to 20people (ACSI survey 1994), and ourgrievances would have had a very shorthalf-life. Today, we are more inclinedto do our complaining online, viaFacebook, LinkedIn, MySpace, or ahost of other social networking sites,or on a personal blog. The potential for damage is greater than ever; theelectronic record, once createdacquires a life of its own, and willcome up in searches for years tocome. The digital world has extendedthe life of disgruntled customer stories into eternity.

So much for poor customer service;business has a new Holy Grail –Service Excellence. What does thatmean from a customer perspective?Well, outstanding customer service is a good start, but is only a subset of Service Excellence. In fact, a bettername would be simply Excellence. It can apply to organisations large and small, and in service or inmanufacturing sectors; it works across all functions, and all levels of personnel. Unlike earlier serviceand quality initiatives, ServiceExcellence blends process andphilosophy, and imbues companiesthat espouse it with a charmingsprinkling of magic dust that makesthem a joy to do business with.

Mention the words Service Excellence,and the usual response is “Oh, ofcourse, we have been doing that for years, all our staff have regularcustomer service training. “Peoplehear the word ‘Service’; they miss the concept of ‘Excellence’. Yet thereis a world of difference! Customerservice is of course, a vital aspect of Excellence, but, in exactly the same way as advertising is the tip of the Marketing iceberg, customerservice is the most visible part ofService Excellence.

EXCELLENCE BEGINS WITH YIn Aronofsky’s haunting 2010 filmBlack Swan, the Ballet DirectorThomas Leroy tells his principaldancer, Nina.

“Perfection is not just about control; it is also about letting go.”

Nina has spent years in painstakingtraining perfecting her technicalcompetences, but her performancedoes not reach her desired level ofperfection until she is able to open her heart to feel passion and engagewith life and her audience. Then sheshines! Organisations too can devoteyears of attention to techniques whichwill make them very good performers,but it is not until they are able toengage passionately with theircustomers that they earn the accolade of excellence.

X Y or Z?Management authors and gurus havesought to create a recipe for deliveringmore revenues, more profit, andgreater shareholder value for decades.McGregor’s Theory X and Y proposedtwo types of manager; Theory Xmanagers viewed people other thanthemselves as inherently work-shy,lacking ambition, needing coercion,and strict control to achieve goals.Theory Y managers created teams

of people who found work as natural asrest or play, were self-motivated whencommitted to the goals, enjoyedresponsibility, taking decisions and the rewards of success. William Ouchiin 1981 extended this concept by his picture of a Theory Z manager.These managers developed a closebond with their team, made long term commitments to new recruits,developed team talents and promotedteam decision making. The majority of businesses at the time had a ‘hire‘em, fire ‘em’ approach. These theoriesand their successors are steps on thepath, each offering a glimmer of insightto what can nurture the virtuous circle of happy staff, happy customers, andhappy shareholders.

McGregor’s book ‘The Human Side OfEnterprise’ presents these as opposingmanagement styles, and in many ways,they are. Nevertheless, exactly asNina’s performance needed a blend of technical competence and passion,outstanding managers need a blend of disciplined system and heart.Excellence begins with the heart(Theory Y), but needs a foundation of Theory X measurement, process and discipline. The truth is, all ofthese approaches, even the apparentlycontrolling, and negative Theory Xform a piece of the excellence mosaic.The figure below suggests the qualitiesassociated with the two approaches.

Figure 1: Features of Process andPhilosophy Linked to Theory X and Yrespectively

LIMITATIONS OF XSound managerial processes,supported by systems such as ISO9000, can deliver a very high level of customer service, enabling theorganisation to meet customerexpectations in the majority of cases.There will be mechanisms in place to deal with exceptions, where thingsgo wrong and need to be recovered,and generally, things run as clockwork.This falls short of service excellence,which begins with a mission, toengender a culture of delighting,rather than merely satisfying thecustomer. Processes are an importantelement of delivering delight, becausemeeting customer needs is thefoundation stone of excellence.Excellence needs the solid basis ofefficient processes as a structure on which to craft customer delight.Customer delight takes the concept of satisfaction to the next level;satisfaction does not promptconversations or recommendations,delight does!

Excellence is the pinnacle of ahierarchy (shown in Figure 2) whichstarts with a solid understanding ofthe customers the organisation serves,enabling an accurate process of

segmentation, targeting and positioningto deliver the appropriate quality andtype of products and services for thecustomer segments. Communicationwith customer segments is initiated bya brand that speaks their language, ina relevant manner. All of these aspectscan be achieved through detailedresearch, sound strategic planning,and good management of creativeagencies. And the mix of these things

will deliver a quality of product and/orservice that will effectively meet theneeds of the customers, and ensurecustomer satisfaction. This processfocus, though rarely has customersclamouring for more, or raving on ablog about their delight. That must be inspired by the spontaneity ofconfident, happy people with the rightattitude, and that is where philosophytakes up the cause.

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Fiona Urquhart is Module Leader for the ServiceExcellence module on Durham Business School’sGlobal Learning MBA. She has also establishedThe Exchange at Durham, a group which enablesbusinesses and academics to share and testtheories and experiences of Service Excellence.

Through Excellence 3, with partners Annette Roweand Fiona Thompson, Fiona helps organisationscreate their own journeys to excellence. She canbe contacted at fiona.urquhart@btinternet.com

Figure 2: The crossover between process and philosophy in delivering excellence

DBS alumna Shalini Kurukulasuriya talks about life at Durham and as Vice President for Projects and Transitions at AMBA Research Lanka (Private) Limited.

Shalini spent over seven years in Durham, firstly as an Economics Undergraduate and then as a postgraduatestudying MSc Corporate & International Finance. She then went on to become a member of the Economicsfaculty where she spent two and a half years before returning to Sri Lanka after receiving an irresistible job offer.Nowadays Shalini is responsible for financial analysis and research into target companies for AMBA Research’sclients. She is enjoying life in Colombo, but has fond memories of Durham and hopes to visit again soon.

Q.How do you feel your Durhamdegree prepared you for yourcurrent role?

A. In addition to completing myundergraduate and postgraduatestudies at Durham, I subsequentlyhad the privilege of teaching at the Department of Economics andFinance for over 2 years. Apart fromthe obvious academic benefits, thecollective experience profoundlyshaped the open and respectfulmanner in which I approach myinterpersonal interactions. This isespecially valuable in my currentrole as VP-Projects and Transitionsat Amba Research, where I’mresponsible for coachingmulticultural teams on developinginvestment analysis skills. Conveyingnegative feedback tactfully is acritical aspect of their ongoingimprovement.

Q.If you had one piece of advice for Durham graduates starting out what would it be?

A. Don’t be afraid to take the path less travelled when embarking on a career. Finding your truecalling/passion is sometimes aprocess of trial and error. So it isimportant not to let the fear offailure prevent you from taking the plunge and exploring different

paths, although it may not seem likethe most obvious or popular choice.

Q.What are your fondest memories of Durham?

A. Cooking ‘Kiribath’, a traditional SriLankan dish for 200+ people at theInternational Students Banquet forthree consecutive years holds manyfond and comical memories. Othersinclude (this is by no means anexhaustive list) my first glimpse of the magnificent Cathedral andCastle, meeting up with friends forafternoon tea at Vennels café andthose contemplative walks along the River Wear.

Q.What would you say has been the most satisfying aspect of your career so far?

A. Leading multicultural teams acrossa variety of equity research projectsand using my expertise to honetheir skills and help them shine in their respective roles.

Q.Where do you envisage your career taking you in the future?

A. I’m very hopeful about Sri Lanka’sprospects as a high end investmentresearch outsourcing hub. So I see myself continuing to build my career in Sri Lanka, with shortsecondments overseas. Since the

industry is at still at a nascent stagewith many moving parts I hope to work on developing a nimbleskillset which will enable me to seize challenging opportunities as they present themselves.

Q.What do you do to unwind?A. I usually swim and find it incredibly

therapeutic and relaxing. I’m alsoworking on improving my game oftennis. More recently, I’ve taken up the piano and have almostcompleted the beginner’s level!

Q.What would you describe as yourmain strengths and how have theseled you to where you are today?

A. A passion for lifelong learning, acommitment to excellence, andpatience. I firmly believe thesestrengths have helped me perseverein my chosen path and becomemore resilient to withstand theinevitable bumps along the road to building a fulfilling career andliving a well rounded life in general.

Q.Do you keep in contact with manypeople you met at Durham?

A. Absolutely; although we areseparated by geography, some of my closest friends are still those I met during freshers’ week back in October 1995.

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Q&A

1. BEIJING AGORA The Beijing Global Get-Together tookplace on Thursday 10 March 2011with a number of DBS alumnimeeting with Local Associationleader Abby Wang in a bar in thecity. The Beijing Association meetson a regular basis and Abbycommented, “We had a good timeand I see new faces each time. It’sgood to keep this loop growing.”

2. RUSSIA AGORA Alumni Relations Manager,Alexandra Sedgwick, visited Moscowon Tuesday 12 April 2011 with DBSalumnus Alexey Buditskiy as part ofan MBA Recruitment visit. Alex andAlexey held an alumni get-together in the capital that evening and anumber of DBS alumni attended.They shared a meal and Alexexperienced some authentic Russian cuisine.

3. PAKISTAN AGORA – NEW! The new Pakistan Agora LocalAssociation was set up in April 2011by Local Association Leader AnusheHussain. Anushe is working closelywith the Agora alumni team toorganise future alumni get-togetherevents. If you would be interested injoining the group, please do contactus. A Facebook page has been set up for the association. To access thisplease search for ‘Pakistan AgoraLocal Association’.

4. SINGAPORE AGORA In May, Jonathan Sim stepped down as leader of the SingaporeAgora Local Association. The newassociation leader is Arsalan Amjad.Arsalan is hoping to arrange analumni event soon to get to know you all a little better.

5. JORDAN AGORA The Jordanian get-together was held on Friday 03 June 2011 at the Kempinski Hotel in Amman.Local Association Leader Zu’bi Al-Zu’bi reported that the group had reminisced about the goodold days at Durham.

6. SOUTHERN AGORA On Thursday 07 July AlumniRelations Manager, AlexandraSedgwick met with local DBS alumni in London. The event wasarranged with the help of LocalAssociation Leaders Nikhil Kulkarniand Natasha Ellah. The group met at the 5th View bar in Piccadilly for drinks and had a good turnoutwith over 20 alumni attending.

7. SHANGHAI AGORA During a recent trip to Shanghai,Daniela Slanickova, Head ofInternational and External Relations,and Ian Lincoln, Senior TeachingFellow/Deputy Director of UGStudies, along with a group of

current DBS students met with alumni.The event took place at Centro bar inthe city and an enjoyable evening washad by all.

The final Global Get-Together date for this year is 08 December.

If you are interested in joining one of our Local Associations or setting up your own, please contact dbs.alumni@durham.ac.uk.

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Agora’s global network

local association news

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Dates for the Diary DURHAM SPEAKERSERIES

‘LEADERSHIP DEVELOPMENT’

Adrienne McFarland,People Services Director,Sage UK & Ireland

20 October 2011Durham Business School

MOTIVATION‘RELEASE YOUR TALENT ANDACHIEVE GREAT SUCCESS’

Richard Denny, business growthspecialist

17 November 2011Durham Business School

RESEARCH EVENT

Topic and venue to be confirmed

1 December 2011London, UK

SPEAKER EVENT

Topic and venue to be confirmed

09 February 2012London, UK

ENTREPRENEUR PANEL

Topic to be confirmed

08 March 2012Durham Business School

SPEAKER EVENT

Topic and venue to be confirmed

19 April 2012London, UK

ANNUAL DURHAM CONVENTION

Speakers to be confirmed

15 June 2012Durham Business School

RECRUITMENTEVENTS

We are holding a number ofrecruitment fairs across the UK,Europe, UAE and North and SouthAmerica between October andDecember of this year. For moreinformation on these events pleasevisit the Business School website at:www.durham.ac.uk/dbs/news/recruitment

PREVIEW/OPENEVENTS

MBA PREVIEW EVENTS

05 October 2011, 10.30–14.30 10 November 2011, 10.30–14.30 09 December 2011, 10.30–14.30 06 January 2012, 10.30–14.30 Durham Business School

Please note that some dates,speakers and venues are provisionalor yet to be confirmed.

FOR FURTHER INFORMATIONTo book places for these events contact the Alumni Team on: Email: dbs.events@durham.ac.ukTelephone: +44 (0)191 334 5277

WOULD YOU LIKE TO HELP PROMOTE DBS?Prospective students, as well as the School, benefit from having alumniassist Durham academic staff with recruitment activities. If you feel ableto volunteer in this way, please visit the events page at www.agora.org.uk

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Business School

Alumni TeamAlexandra Sedgwick, Alumni Relations ManagerHayley Ferguson, Alumni Coordinator

Room 215, Durham Business SchoolMill Hill LaneDurhamDH1 3LBUK

t: +44 (0)191 334 5277f: +44 (0)191 334 5218e: dbs.alumni@durham.ac.ukw: www.agora.org.uk

UK Agora Local AssociationsNorthern Agora (based in Durham)Southern Agora (based in London)

International Agora Local Associations Athens Beijing Canada Caribbean Denmark EgyptFrankfurt Ghana Gibraltar Hong Kong Hungary IndiaIndonesia Japan JordanMalaysia Mexico NigeriaNorway Pakistan RussiaShanghai Singapore South AfricaSouth America Switzerland United Arab EmiratesUnited States of America

To be put in contact with other alumni in your area, please contact the Alumni Team.

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