Nexus: Summer 2011 focuses on behavioural science, with Professor Bruno Frey discussing the measurement of happiness, Dr Christopher Olivola exploring the motivations for charitable giving, and alumnus Robert Craven writing about seeing your business through your customer's eyes. Plus the latest news from WBS and updates from other graduates.

1. 1
Warwick Business School Alumni Association magazine: summer 2011

2. NOW OPEN!
Gather, learn and discuss
the business issues that matter
Book online at wbs.ac.uk/go/cafe
The Virtual Business Cafe
Find out more on page 18 

3. 3
Message from the Dean
Over the past year or so, I have recruited Contents
some of the leading behavioural
scientists in the world and created In this edition of nexus we focus on
our own Behavioural Science group, Behavioural Science
making WBS the first business school
in Europe to have a dedicated facility Staff news 5
to delve further into this field, with a WBS news 6
superb set of behavioural scientists who Hot off the press 8
are already beginning to collaborate
Instincts, motivations & choices:
with our other top researchers across
WBS and across the University, and to Behavioural Science uncovered
form applied partnerships with, among Michael Prest 10
others, the Design Council and the The bright marketing manifesto
Institute for Practitioners in Advertising. – seeing the business through
As I write, our new Behavioural Science the customers’ eyes
lab is about to go live and we are well Robert Craven 14
Welcome to the Summer 2011 edition on our way to becoming the premier
Happiness – a revolution in
of nexus. For this issue I have chosen school for research, teaching, corporate
engagement and media comment in
social science
to focus on Behavioural Science, a
Bruno Frey 15
relatively new discipline which is having this area.
huge impact across society and which The science of giving:
I believe will be hugely important in I hope you’ll be excited by this new what motivates charitable
taking WBS forward. venture and, to help you understand giving?
what it’s all about, in this issue you will Christopher Olivola 16
When I took on the role of Dean, I find: Personal & Career
decided to put WBS at the forefront of Development 17
this particular cutting-edge research. H Journalist Michael Prest talking to
The WBS Virtual Business Cafe 18
My experience as an asset manager members of our new Behavioural
during the global crisis drove home to Science group Get involved 19
me that there are important forces at H Professor Bruno Frey discussing the Mentoring 20
work in the financial markets, and in the measurement of happiness Students and cohorts 21
economy more generally, that just can’t H Dr Christopher Olivola exploring the Global networks 22
be captured by analysing the world motivations for charitable giving Professional networks 24
using traditional economic and financial H Alumnus Robert Craven writing
WBS events 25
models alone; to get to the heart of about seeing your business through
human behaviour as it impacts on the your customer’s eyes. Alumni news 26
economy we need to cast our net more
widely.
This is just one of several initiatives
Behavioural Science is an intrinsically which will help us on our way to
interdisciplinary area, lying at the nexus becoming Europe’s top university-based
of applied psychology, organisational business school, keeping us at the
behaviour, neuroscience, sociology, vanguard of new research, and allowing
management science, economics, and us to offer new ways of seeing the world
finance. I believe we can leverage it to to our students and graduates – ways of
improve our understanding of the world looking at things differently. 7
and to improve business performance.
It can help us understand the economic Coupled with weaving creative thinking
decisions of both individuals and through all our activities, I am confident
institutions – decisions which can have that these initiatives will offer the WBS
massive effects on market prices, on Community excellent returns on their
the returns on investment and on the emotional and financial investments in
growth rate of the economy. us.
10 26

4. 4 nexus: summer 2011
Welcome to the Behavioural Throughout this edition, you will find
Science edition of nexus. many examples of alumni and students
contributing to, and benefitting from, the
With the focus this time on human WBS community. These include:
behaviour – and in particular, what
motivates us and makes us happy – it H our mentoring programme (page 20)
seems a good time to consider the WBS H our active global and professional
community and the important role it networks (pages 22–24)
plays. H event speaker slots (page 25)
H the Virtual Business Cafe (page 18).
There are of course all sorts of reasons
to stay in touch with us. You might want The Alumni Executive (formerly the
to keep your skills updated through Alumni Board) also plays a crucial role
embarking on further study, attending in this community, leading our alumni
events or visiting the Knowledge Centre. relations activity at the strategic level,
Or want to maximise your career success acting as our most senior advocates, and
through our mentoring programme, progressing key projects.
careers services, and training
programmes. Why don’t you join our growing team?
Pages 19 and 21 give you some ideas
But, for many of us, the motivation goes on ways to get involved. New initiatives
much deeper. The WBS community include:
provides us with a sense of continuity, of
belonging, of pride. It is an opportunity H our group for recent graduates
to keep in touch with old friends and H our class representative network
colleagues, and to find new ones. H our pool of sector specialists, offering
It provides a connection to a global advice to current students.
network, many of whom we would feel
comfortable to call upon for advice or We are also keen to find alumni in the
recommendation, simply because of that finance sector to drive forward our
shared affinity. Finance Professional Network.
The WBS community
For a rapidly increasing number of our provides us with a sense of I hope you enjoy this edition of nexus
alumni, this sense of affinity is also and my team and I look forward to
driving a desire to give back to WBS. This
continuity, of belonging, of working with you.
might be financially, but many also give pride. It is an opportunity to
generously of their time, knowledge, Alison Bond
expertise and experience. They want
keep in touch with old friends
Head of External Relations
to contribute to WBS because it has and colleagues, and to find new e Alison.Bond@wbs.ac.uk
impacted on their lives, and they want to
use their own skills to make a difference
ones. It provides a connection to
to others. a global network.
contact details Alison Bond Tracy Lynch Claire Stevens nexus is the magazine of the WBS Alumni
Head of External Relations External Relations Officer External Relations Assistant Association T +44 (0)24 7652 4306
The Alumni Association T +44 (0)24 7652 4176 T +44 (0)24 7652 8487 T +44 (0)24 7652 8487
Warwick Business School E Alison.Bond@wbs.ac.uk E Tracy.Lynch@wbs.ac.uk E Claire.Stevens@wbs.ac.uk The views contained in nexus are those of
University of Warwick contributors and not necessarily those of
Coventry CV4 7AL Kathryn Chedgzoy Jen Young Renate Mason Warwick Business School or the University
United Kingdom External Relations Officer Office & Events Co-ordinator, External Relations Assistant of Warwick
t +44 (0)24 7652 2813 T +44 (0)24 7615 0515 External Relations T +44 (0)24 7615 0371
Design by Morse–Brown Design
f +44 (0)24 7652 3719 E Kathryn.Chedgzoy@wbs.ac.uk T +44 (0) 24 7615 0171 E Renate.Mason@wbs.ac.uk
w morsebrowndesign.co.uk
E alumni@wbs.ac.uk E Jennifer.Young@wbs.ac.uk
W wbs.ac.uk/alumni Ann Jackson Emily Jamieson
External Relations Officer External Relations Assistant
T +44 (0)24 7652 8197 T +44 (0)24 7652 2987
E Ann.Jackson@wbs.ac.uk E Emily.Jamieson@wbs.ac.uk

5. staff news nexus: summer 2011 5
Academic appointments Professor Bruno group. Margit has published nine books
as author, co-author, or editor, and over
Frey
Professor Steve An international 160 scholarly articles. She is Research
and highly cited Director of CREMA.
Brammer
A leading scholar researcher.
on what drives Professor Daniel
an organisation’s Read
social and ethical Bruno is Distinguished Professor of World renowned
performance. Behavioural Science at WBS, and is based for his work on
in the Behavioural Science group. He intertemporal choice.
Stephen joined WBS in January as retains the post of Professor of Economics
Professor of Strategy and Associate Dean at the University of Zurich, Switzerland,
for Research, based in the Marketing & where he has specialised in political
Strategic Management group. Previously economy, non-market economics, and Daniel has held positions at Carnegie
he was Professor of Business and Society the theory of economic policy since Mellon University, the London School of
at the University of Bath’s School of 1977. He is Research Director of CREMA Economics and Political Science, Leeds
Management. (Centre for Research in Economics, University Business School and Durham
Management and the Arts, Zurich). University Business School, in addition
His research has been widely published Bruno is author of over 600 articles in to visiting positions at the University of
in leading journals such as the Strategic professional journals. Illinois, Yale School of Management, and
Management Journal, the Journal INSEAD. He is Professor of Behavioural
of Management Studies, Financial Professor Economics based in the Behavioural
Management, and the Journal of Graham Loomes Science group.
Business Research. A highly cited
scholar and Fellow Daniel’s work has appeared in journals
Professor of the British including Management Science. He
Academy. has written book chapters and reports
Graeme Currie and has been an Editor of the Journal
A late entrant to
Graham joined WBS in February, of Economic Psychology, and Associate
academia and now a
as Professor of Behavioural Science, Editor for Management Science.
leading international
academic in public retaining his role as Professor of
management. Economics in the University’s Economics Professor Richard
Department. He has undertaken research Taffler
Graeme joined academia in 1996, for a number of government bodies An authority
gaining his PhD from the University of in the UK and elsewhere. Graham has on behavioural
Nottingham where he worked for 14 authored, co-authored and edited finance, he relishes
years. For the last three years he was numerous journal articles and books. his engagement
Director of an applied research institute. with investment
His title at WBS is Professor of Public Professor Margit practitioners.
Management, based in the International Osterloh
Centre for Governance & Public A scholar with a Richard joined WBS in January 2011 as
Management. Graeme’s research has deep and practical Professor of Finance and Accounting and
been published in a range of studies and understanding of Head of the Accounting group.
journals, over 60 to date. management issues.
He has published over a hundred
Margit joined WBS in 2010 as Professor academic and professional papers and
of Management Science after holding books, and is frequently quoted.
a chair in Human Resources at the
University of Lüneburg, Germany, and Professor Taffler is currently helping to
then a chair in Business Administration develop the new paradigm of emotional
and Management of Technology finance.
and Innovation at the University of
Zürich, Switzerland. She is based in the
Marketing & Strategic Management

6. 6 nexus: summer 2011 WBS news
Rankings and The first exchange of undergraduate
students from Cornell University, USA,
The Lanner Group has awarded prizes to
WBS students on our MSc in Business
accreditation also took place, with the arrival at WBS Analytics & Consulting for their excellent
of Karl Delaroche and Nicole Wolski from work in the Analytic Consulting module.
The Financial Times has ranked WBS fifth Cornell’s Industrial & Labor Relations Course Director Dr Mette Asmild
in the world, and second in the UK, in its School. Nicole said, ‘I had always wanted commented, ‘We are very grateful to the
first ranking of pre-experience Finance to see England and Warwick gave me not Lanner Group for their support for our
Masters programmes. only the chance to do that, but also to students. The winning group’s report was
study at one of the best schools in the UK.’ an excellent piece of work’.
For the WBS Undergraduate programme,
came the great result of second to Oxford As the warm spring weather arrived, A team of participants from the Warwick
in this year’s Guardian newspaper’s WBS played host to doctoral students Global Energy MBA won the WBS
University Guide. The Financial Times from Oxford’s Saïd Business school and MBA Student of the Year Award. John
ranking of customised executive courses Cambridge’s Judge Institute taking Armstrong, Brent Brough, Shawn Le
saw WBS rise two places in the world part in in the fifth annual ‘Woxbridge’ Maitre, Gage Garner and Juergen Ritzek
and hold its place in the UK – no mean doctoral conference. The two day were chosen because of an investment
feat in the current economic climate and conference enables doctoral students club they set up to track the progress
competitive market. and academics in training to present of companies studied on their course,
their research. enabling their class to monitor the
WBS remains in the elite group of performance of their investments.
business schools worldwide who
hold the sought-after triple-crown
Student awards
gold standard in business education
External recognition for
A team of five undergraduate students
after achieving full five year EQUIS
beat off competitors from other top WBS academics
reaccreditation.
UK universities, including Oxford and
Cambridge, to win the Royal Bank of Emeritus Professor John Benington was
Programme news Scotland (RBS) Indian Summer Challenge. awarded a CBE for public service in the
UK’s New Year Honours List. This honour
After a series of challenges and fund- was followed by Keith Hoskin’s nomination
Two new finance masters courses will
raising activities, the Warwick team won as the Distinguished Academic of 2011
launch this September. The MSc in
a three-week all expenses paid trip in for the British Accounting and Finance
Accounting & Finance and the MSc
September to India where they will help Association. Temi Abimbola was invited
in Finance with Behavioural Science
the RBS community project SUPPORT and to present at the annual Harvard Africa
join the four established courses in our
spend time in the RBS Global Banking & Business Conference.
finance suite. Dr Elisabeth Dedman,
Academic Course Director, commented Markets Mumbai offices.
‘Recent events have revealed the need
for a new breed of financiers who think WBS undergraduates also won, and were
more critically and who are prepared to highly placed, in the British Council’s
challenge theories.’ UK Shine! 2011 competition for overseas
students, and the Warwick Advantage
Awards, where no less than 23 of our
undergraduates won awards.
In the classroom, the Association
of Corporate Treasurers gave prizes
for the tenth year running to WBS
undergraduates. John Benington CBE
IIMA MBA students at WBS
Simon Collinson has been appointed as a
In the depths of winter, 18 executive member of the influential Economic and
MBA students from the Indian Institute of Social Research Council and Chair Professor
Management, Ahmedabad, braved the at Zhejiang University for a period of three
weather at WBS to gain an years. Paul Marginson, Director of the
understanding of business in Europe and Industrial Relations Research Unit, was
the challenges facing British businesses. invited to present a webinar organised by
the UK’s Chartered Institute of Personnel &
Winners of the Lanner Group prizes
Development and Unilever.

7. WBS news nexus: summer 2011 7
The Royal Shakespeare Company announces plans for
the Centre for Teaching Shakespeare at Warwick
Royal Shakespeare Company partnership between a cultural
(RSC) Executive Director Vikki organisation and a university. It’s a bold
new initiative which is entirely in keeping
Heywood, Warwick’s Vice- with a business school that looks at
Chancellor Nigel Thrift, Dean of things differently’.
WBS Mark Taylor, and Professor
of Creativity Jonothan Neelands, The event was attended by over
130 guests including Members of
have announced plans for the Parliament, peers from across the house,
RSC/Warwick Centre for Teaching representatives from funding bodies,
Mark Taylor talking to Michael Boyd (RSC)
Shakespeare. donors, teachers, students, board
members and representatives from the
The announcement was made at an University of Warwick.
event, organised by Liberal Democrat
Peer Baroness Sally Hamwee, to celebrate It included many young voices: a hip-hop
the RSC’s inspirational education work response to Shakespeare from emerging
at an event at The House of Lords on spoken word artist Toby Thompson; a
Tuesday 10 May.
Photography by RSC/Ellie Kurttz
Jonothan Neelands
‘Of the teachers who have worked with
us, 43 per cent have gone on to receive
promotion. We’re delighted that more
of this work is going to be available to
teachers across the world through our
new partnership with Warwick.’
Michael’s message to government
is ‘We want to get closer to the
A young performer takes centre stage
curriculum, not further away from
it. Words like assessment and
talk from two members of the RSC’s Young standards and attainment don’t
The unique collaboration between the Company about their relationship with frighten us. Shakespeare is both a
two organisations will offer online and Shakespeare; and an extract from King cultural entitlement and a curriculum
residential courses to teachers in the Lear, performed by students from Isleworth requirement for students. We want to be
UK and across the world. The centre and Syon Boys School and directed by RSC an active collaborator on the curriculum
will open in 2012 with the ambition ensemble member Kelly Hunter (Goneril and the assessment of the teaching
of transforming the school learning in the company’s current production of the and learning of Shakespeare in order
experiences that young people in play). to play our part in ensuring that every
the UK and across the world have of single child in this country can choose to
Shakespeare’s plays. Artistic Director, Michael Boyd said, ‘We have develop a life-long relationship with his
already created a postgraduate certificate work.’ w tinyurl.com/3blsr7t
Professor Mark Taylor, Dean of WBS in the teaching of Shakespeare with the
said, ‘The new Centre for Teaching University of Warwick, and 97 per cent of For more information the Royal
Shakespeare will be developed within teachers who take the course complete Shakespeare Companys’plans for
WBS. This is a unique adventure for all it. This can be compared to a national Teaching Shakespeare at Warwick see
of us, and we think a very innovative average completion rate for postgraduate w tinyurl.com/3blsr7t
approach to developing a long term qualifications of around 40 per cent.’

8. 8 nexus: summer 2011 hot off the press
Contesting the Philosophy and Metaphors we lead by.
Corporation: Struggle, Organization Theory. Co-edited by André
Power and Resistance Jointly edited by Spicer. Published by
in Organizations. Professor Hari Routledge. Seeking to
Co-authored by Tsoukas. Published understand the faith
Professor André by Emerald Group we place in leadership,
Spicer. Published by Publishing Limited. the authors draw on
Cambridge University What is the studies of managers. It
Press. This book relationship between presents six metaphors
counters the view that philosophy and for the leader: as
the power of large organization theory gardener, cosy-
organisations goes (OT)? Papers in this crafter, saint, cyborg,
unchecked by showing they’re driven by volume explore connections between several commander and bully, offering insights into
political struggle, power plays and attempts streams in philosophy and OT. The central how leadership does and does not work.
to resist control. Each chapter illustrates a question explored is: ‘what does a particular w amzn.to/iplrwZ
different dimension of workplace struggle philosophy contribute to OT?’
through studies relating to sexuality, w amzn.to/jmpXg6 Public Value:
cynicism, social movements and trade Theory and Practice.
unionism. Co-authored by
Offshoring Strategies:
w amzn.to/keqF5x John Benington.
Evolving Captive Center
Models. Authored by Published by Palgrave
Global Strategic WBS Associate Dr Ilan Macmillan. This text
Management. Jointly Oshri. Published by provides a concise
authored by Professor MIT Press. One mode and internationalised
Kamel Mellahi. of offshoring has restatement of the
Published by Oxford continued to grow public value approach,
University Press. This despite economic an assessment of its
text provides a global turmoil: the captive impact to date and
perspective on strategy center, subsidiaries or its relevance to the challenges of public
covering traditional offices that provide management in a time of crisis and austerity.
management as well the parent company with services. This text w amzn.to/m0QwBD
as new topics such as examines the evolution of the captive center
corporate social responsibility. This second identifying basic models and examining Key Concepts in
edition features global case studies, a new strategies pursued by Fortune Global 250 Critical Management
chapter on knowledge and innovation and is firms. It offers case studies that illustrate six Studies. Jointly edited
supported by an online resource centre. models. by Professor Martin
w amzn.to/jgzkxc w amzn.to/muZret Parker. Published by
Sage Publications Ltd.
Promoting Social Organizing Health This text with over 50
Cohesion: Implications Services (Organising entries, from Actor
for Policy and and Managing Public Network Theory to
Evaluation. Edited Services). Jointly edited Utopianism, explores
by WBS Principal by Professor Graeme and explains essential
Research Fellow Ines Currie. Published by concepts used within
Newman and Peter Sage Publications Ltd. the field of critical management studies
Ratcliffe, Professor The research of public today.
of Sociology at the services organisations w amzn.to/jDaJ6A
University of Warwick. is an expanding field.
Published by Policy This four-volume set
The Oxford Handbook
Press. This book brings together papers
of Strategic Sales and
makes a case for a shift in policy focus from spanning research and practice, bridging
Sales Management.
‘community cohesion’ to social cohesion. It the gap between organization studies and
Co-edited by Professor
is a valuable source for practitioners and for literature more specific to the sociology of
Nigel Piercy. Published
those studying theory-based evaluation and health and illness, social policy and health
by Oxford University
areas including housing, intergenerational services research.
Press. This text is
issues, the recession and education. w amzn.to/mjblyj
structured around
w amzn.to/lqpkQd
four topics. It
explores the strategic
positioning of sales,
For more information about WBS faculty, sales management,
disciplines and publications customer relationships and the composition
w wbs.ac.uk/faculty of sales within the organisation, and
highlights how ‘sales’ responds to the
environment. w amzn.to/lQ9RZq

10. 10 nexus: summer 2011 behavioural science
Nick Chater, Professor of Behavioural Science at WBS

11. Feature
Instincts, motivations and choices:
Behavioural Science uncovered
Michael Prest interviews our leading academics to demystify the
discipline that is shaping the teaching at WBS.
You know the feeling. It’s Friday afternoon and your Warwick Business School is tackling these essential
friends are gathering for their end of week drink. But questions head on. The idea that behaviour is
you are still in the office. How do you decide when more complex than is suggested by economists’
to leave? You half-remember an economics lecture broad aggregates has been around for a long
on utility: basically, the appeal of something to you time. A whole branch of economics, behavioural
– in this case, sneaking out of the office early. With economics, has grown up over the last 20 years or
the help of a program discreetly downloaded from more. But the financial crisis threw into doubt long-
the Economists 4 Sloth website you work out exactly standing notions of rationality such as the perfect
the value of labouring on relative to the value to market hypothesis which approximately states that
be gained from hastening to the bar, and therefore you cannot achieve returns in excess of average
what time to leave: 6.13! risk-adjusted market returns for long because prices
reflect all publicly available information. Dean Mark
But of course you don’t make any such calculation. Taylor was convinced that it was ‘time to ditch old
You instinctively make a guesstimate which includes ideas about rationality that don’t work in the real
other considerations of a quite different sort: not world and get out of the academic silos’.
letting your friends down, the weather, the feeling
that you’ve contributed your pound of flesh this WBS is therefore setting up a Behavioural Science
week– in short, what you think is right and will group which is drawing together leading experts from
make you happier. As individuals, we all know the disciplines constituting behavioural science and
that is generally how we make decisions, even from economics. Headed by Professor Nick Chater, a
when specifically financial questions are under psychologist and Professor of Behavioural Science at
consideration. WBS, the group intends to be the biggest of its kind
in Europe. ‘The aim of the group is to help build a
This is the central insight of what has become known bridge between what people know, and what studies
as behavioural science: the utility function does confirm about human behaviour, and the standard
not fully, or perhaps mainly, explain why we make economic model. We have to move to new methods
the decisions we make. Bringing together many for understanding aggregate behaviour, departing
disciplines which study human behaviour, such as from those used by conventional economics, to take
psychology, evolution, neurology and sociology, account of the behavioural factors which seem to be
behavioural science raises fundamental questions so important that they can no longer be ignored’,
about how economists have conventionally Professor Chater said.
described our world and our behaviour. And the
implications are profound. If financial incentives Another prominent member of the group is
– prices – are less important to the choices we Professor Bruno Frey, a Professor of Economics at
make than economics has tended to assume, do the University of Zurich and Distinguished Professor
governments and companies need to change how of Behavioural Science at WBS. Professor Frey has
they deal with citizens and consumers? If so, what published extensively on behavioural economics.
might those changes be? ‘I never believed that people are wholly motivated I
11

12. by money. It was totally different from the way research suggests that we are poor at comparing
the world looked. But I didn’t know how to find small amounts and large amounts. Assume a
the difference between economic theory and the large and small gamble. The large one is £10,000
world’, he said. for certain vs a 50–50 chance of winning either
£0 or £25,000. The small one is £10 for certain vs
Precisely because there was a difference, a 50–50 chance of winning either £0 or £25. The
economists made some heroic assumptions in sums are very different, but in practice people
their models, for example that we have a well- treat the gambles as roughly the same and will
defined utility for each good or service. The probably avoid both risks in roughly the same
tendency grew as the profession became more proportions.
mathematical from the mid-twentieth
century on. ‘Economists started to The reasons for our being local thinkers and
believe their own propaganda. They
Bringing together many risk averse for small stakes are buried deep
believed their models. But models strip disciplines which study in the evolution of our brains. Essentially,
away the richness of human behaviour human behaviour, such we cannot easily compare apples and
and lose that dimension of analysis’ said oranges. We do not have an underlying
Professor Graham Loomes, Professor of as psychology, evolution, mental ‘currency’ to convert options into
Behavioural Economics at the University neurology and sociology, directly comparable terms. Our brains are
of Warwick and WBS. therefore forced to operate by using ‘local’
behavioural science raises comparisons. Assessing how light a patch
In more theoretical terms, that analysis fundamental questions of grass is depends on local comparison
can be explained like this. Classical of the number of photons from that patch
economic theory makes several demands
about how economists have with adjacent patches. In other words, we
of its agents when they take decisions: conventionally described are fairly insensitive to overall changes of
extensive knowledge, enormous our world and our behaviour. scale.
calculating power, consistency and
utility optimisation – all in all, making And the implications are The way we think has consequences at odds
the financially most profitable choice. By profound. with conventional wisdom. Experience is
contrast, behavioural science suggests highly respected. But research into medical
that we operate very differently. Our calculating diagnoses suggests that we do not necessarily
capacity is limited; we are unsure about our make better judgements by virtue of repeating
preferences and indeed surprisingly flexible tasks. Equally intriguing, there is evidence that,
about them; we prefer the status quo; we are for some types of decision, snap judgements may
what the jargon calls ‘local thinkers’; and we are be better than those much pondered on.
risk averse for small stakes.
Our behaviour can also be viewed from another
Let’s take the last two points. Being a local angle, intrinsic and extrinsic motivation. Intrinsic
thinker means two things. We tend to compare motivation is behaviour derived from some
similar items and to compare them reasonably internal norm or sense of what is right. Professor
close together in time. If petrol prices go up, we Frey cites the example of a Swiss commune which
make the comparison with what prices were last. was asked to accept a nuclear waste processing
If they go up again, we compare them with what plant. The commune agreed. But when the
they were recently and not a long time ago. The commune was offered money to take the plant
principle may even refer to physical locality. We it refused. The offer of money had changed the
compare the price of a cappuccino at a posh sea game and broken unspecified norms in which
view café with a similar establishment, not with the commune believed. The clearest example of
the price of cappuccinos worldwide. extrinsic motivation is money but, Professor Frey
notes, the case of the commune shows that ‘you
It might sound counter-intuitive to say that we cannot just use money to motivate people’.
are risk averse when the stakes are low. But
12 nexus: summer 2011 behavioural science

13. Here the question of behaviour merges into that
of happiness. The evidence is that there is only a
weak correlation between income and happiness
for societies and individuals. It seems, for instance,
that work is an intrinsic motivation. Unemployed
people appear to be less happy than employed
people even when their incomes are identical.
Recognising that happiness has not increased
commensurately with prosperity, and that greater
happiness may lead to greater prosperity as well as
being a desirable end in itself, the UK government About the author
is exploring how to measure ‘gross national
happiness’.
There are other public policy implications. Utility
tariffs, such as for electricity or mobile phones,
have a tendency to proliferate and distort
competition. Behavioural science’s description
of us as local decision makers could help to
redesign utility companies’ price information
so consumers are better able to compare apples
with apples instead of apples with oranges. It can
also have implications for firms. It seems they, like
individuals, are risk averse for small stakes. Yet if
you take many small risks the chances are high
that you will do better than if you avoid those risks. Michael Prest is a
Oddly, however, supposedly risk averse firms are national newspaper
often willing to take major risks on huge decisions, journalist with thirty
where risk-aversion would be entirely appropriate – five years’ experience
which may partly explain the financial crisis which of business and
occurred despite close regulatory supervision. economics writing.
He specialises
As with all intellectual developments, however, in the business
there are difficulties associated with behavioural school sector
science. Worthy though an official search for and has written
happiness is, governments have a strong incentive for publications
to manipulate methodology and its outcome. including The
Under the then Mrs Thatcher’s administrations, Independent and
the way unemployment was counted was revised The Times. Michael
repeatedly – and strangely each time reduced the also worked in
jobless count below what it would have been using Washington DC for
the previous method. If companies understand five years as a speech
more fully how their customers behave they will be writer to Presidents
tempted to game the system to their advantage. of the World Bank.
That said, there can be no doubt that behavioural
science has the capacity radically to challenge For more information
deep-rooted assumptions in economics. You no contact e mprest@
longer need to feel guilty on Friday afternoons. G blueyonder.co.uk
13

14. 14 nexus: summer 2011 behavioural science
The bright marketing manifesto – seeing the
business through the customers’ eyes
Robert Craven
the author in minute
All businesses want to get closer to their The Manifesto
customers. They want their marketing to reminds us of the Robert Craven
influence consumers to the point where fundamentals and MBA (Warwick) is
they make the positive decision to buy a rattles that cage of a keynote speaker
product or service. corporate myopia and author of the
that mesmerises so best-selling business
After ten years of working to make big many companies books Kick-Start
businesses more entrepreneurial (or and kills any Your Business and
make entrepreneurial businesses more sense of action Customer is King.
businesslike), a manifesto has been orientation. It puts As MD of The Directors’ Centre, the
developed. Using entrepreneurship as the customer (and, consultancy for growing businesses, he
the starting point, it challenges how as a result, profit) You can buy Robert’s works with ambitious directors to break
you do marketing. It acts as a wake-up back at the centre of book from here:
through constraints on business growth.
call for tired (and often lazy) marketing your business focus. w bit.ly/brightm
For further information, contact Robert
departments that wonder why they don’t Craven on 01225 851044,
seem to be getting the results they used In no particular order, consider the list of e rc@directorscentre.com.
to get. 23 statements below. How could you use,
See his blog at
say, four of the most relevant ones to get
w Robert-Craven.blogspot.com
closer to your customer?
THE MANIFESTO 8. What the customer thinks matters more 16. Create a money and time budget for your
than you can imagine. Talk to them... do a marketing activity. And focus on results.
1. If there’s a choice between being better customer survey, now.
or different then different wins every time. 17. Spend time with weird people. You don’t
Ideally you should be different and better. 9. Blow your customers away with your get great ideas staring at your computer
legendary service. Or they will leave you in screen.
2. Why should people bother to buy from you droves.
when they can buy from the competition? 18. Work the 80:20 Rule. Get effective by
What makes you different from the rest? 10. Select your target customers and focus on concentrating on the Law of the Vital Few
them and what they want and need. Ignore and the Law of the Trivial Many – sack
3. Marketing is not a battle of the product; the rest. 20/30/40/50 per cent of your customers.
marketing is a battle for the mind of the
customer. How will you win this battle? 11. Work the expert model. Become the 19. Ask for the business. If you are not
leader rather than a follower in your field/ asking for it then I am pretty sure that
4. You get known for what you do. So what marketplace. your competitors will be!
is it that you are known for? Is it the right
stuff? 12. Feel the fear and do it anyway. You won’t 20. Make it easy for people to buy from you.
die. Make it as easy as possible.
5. Infect your customers and staff with your
passion and excitement for your business. 13. Don’t compete on price. There’s always 21. You are too much in love with your
They are your ambassadors! someone out there who can do it cheaper business. Get a grip on it!
than you
6. Selling is everything. Most businesses think 22. Remove your self-limiting beliefs. What’s
their product/service is pretty cool so what’s 14. Understand and work your sales pipeline. holding you back?
the problem? How can you convert leads into clients faster?
23. Stop procrastinating. It’s easier to
7. Put your prices up, now. 95 per cent of people 15. Do the maths. Small changes in the right ask for forgiveness than it is to ask for
do not buy on price, despite what they say. places have a massive impact. permission. Take action.

15. nexus: summer 2011 behavioural science 15
Happiness – a revolution in social science
Bruno Frey
We are in the midst of a revolution. We that National Income per capita is not an The government should create the right
are turning away from material aspects adequate indicator of well-being. Higher political conditions. In particular, it’s
of life towards well-being. The way to income does not have much effect on important to increase citizens’ rights in
measure well-being is happiness. happiness. terms of political participation. There
is now strong evidence that citizens
I would like to make two propositions. The Human Development Indices and involved in politics are more satisfied
Firstly, although National Income and other social indicators are not very good with their lives. Another condition that
Social Indicators are good indicators, either. Take life-expectancy. It is great improves public satisfaction is political
happiness, or life satisfaction, are much to live a long time, but what if your last decentralisation. People are more at ease
better. Secondly, we must be very careful ten or fifteen years are unhappy? School with local political decision takers at the
not to do the wrong thing. Although enrolment is also often used as local level.
government should make it possible a Social Indicator, but it
for people to be happy, they is not an output. We The conclusion is: Happiness is a
should not try to maximise know from PISA wonderful concept and can be used to
happiness. and other studies make better policies. It should be used by
that there are governments to enable people to achieve
With respect to the first many countries their own personal happiness in their own
proposition, I have where a lot of way.
some good news. Most inputs go into
people are happy. It’s schools, but
not true that we live the children the author in minute
in a terrible world and do not learn
should lament all the much and Bruno Frey is
time. Statistically we they are not Distinguished
know most people are very satisfied.
Professor of
very happy.
Behavioural Science
I would now like to
at WBS, Professor
We have many ways to measure consider the second
of Economics at the
happiness. The most important are proposition. ‘Assuming that
University of Zurich,
surveys. Experience Sampling is when we can measure happiness in a satisfactory
Research Director
you are asked randomly how happy way, what do we do with this information
you feel just at this moment, which is at the political level?’ of CREMA and Managing Editor of
then aggregated up. Then, even more Kyklos. He seeks to extend economics by
scientifically, one can do brain scanning. Governments should not jump to the including insights from other disciplines,
conclusion that because we can measure including political science, psychology
I won’t go into a critique of national happiness it should be maximised. and sociology. w bsfrey.ch
income as a well-being measurement. Once the happiness indicator is seen as
I just want to mention one aspect. important, governments will manipulate
Roughly 50 per cent of National Income it. We should not be naïve. We know that on the knowledge centre...
is attributed to government activity. in the wake of the financial crisis several
Government activity is measured by countries manipulated their deficits and Watch Bruno
input, in the form of materials and level of public debt. They will find it even Frey deliver the
work. You can immediately see that it easier to present a happiness indicator first in a series of
has nothing to do with welfare. So GNP influenced in their favour. Inaugural Lectures
is great as a business cycle indicator; it by WBS professors
measures productive capacity but not Another reason why governments should entitled Should
well-being. not try to maximise happiness is that it is Government Maximise Happiness?
not the only thing that should matter for w tinyurl.com/6eqfg5s
Per capita income is sometimes used politics. There are other important aspects
as a Social Indicator but econometric of life such as justice, responsibility and
happiness research has demonstrated solidarity.

16. 16 nexus: summer 2011 behavioural science
The science of giving:
what motivates charitable giving?
Christopher Olivola
Our planet is plagued by problems in Going forward, research will uncover
need of solutions. Citizens of wealthy social scientific principles that will help
industrialised nations are in a unique charities raise money, help donors to
position to help address many of these contribute and derive greater well-being
issues through donations of money, time, from doing so, and help those in need,
and other resources. Charitable giving who depend on charity for support or even
is a large and growing industry; total survival. The results, quite simply, should
private giving in the US alone more than make the world a better place.
doubled between 1996–2006, reaching
£185 bn annually. These donations References
provide essential aid to the world’s poorest Liu, W., & Aaker, J. (2008). The happiness of giving:
countries. Therefore, understanding the The time–ask effect. Journal of
factors that motivate charitable giving has Consumer Research, 35, 543–557.
enormous benefits.
Oppenheimer,
D. M., & Olivola,
Fascinating research by psychologists and C. Y. (Eds.)
behavioural economists has begun to Willingness to donate increases when there’s (2010). The
uncover the factors that drive people to suffering involved! Science of Giving:
donate. Experimental
of their time to a cause, compared to when Approaches to the
they are asked to imagine giving money to Study of Charity.
Did you know? Psychology
H Giving to others often makes people the same cause.
Press.
happier than spending the same sum
of money on themselves The more pain, the more gain You can buy
H People donate more when they see My own research has examined the Chris’s book
that others like them have made popularity of fundraising that involves here:
contributions pain and effort on the part of participants, w amzn.to/
H We are more moved by a single photo such as marathons and bike-a-thons, or kohBEQ
of a person in need (eg a hungry even events that involve walking barefoot
child) than we are by the same photo over hot coals or broken glass!
combined with statistics detailing the the author in minute
extent of the problem (eg the number Although most theories of human
of malnourished children worldwide) motivation and behaviour would predict Christopher Olivola
that making the fundraising process is a Royal Society
How people contribute difficult and painful should deter donors, and British Academy
Researchers are also identifying factors we find that willingness to donate Newton Fellow in
that influence charitable giving decisions, increases when people anticipate that the Behavioural
discovering that emotions, social norms, they, or a friend, will have to suffer to raise Science group at
and simple cognitive strategies play money for a cause, compared to when the WBS. He received
important roles in governing whether, fundraising process is easy and enjoyable. a joint-PhD in
when, and how much people are willing to In one study, participants contributed Psychology and Policy from Princeton
contribute. more when doing so required that they University, and a BA in Psychology from
keep both hands immersed in near-
the University of Chicago. He studies
Another important variable is how people freezing water for one minute! In addition
the psychology of human decision-
contribute. That is, the fundraising process to explaining the popularity of painful-
making, experimental philosophy, and
itself impacts donations. Research by effortful fundraisers these studies reveal
behavioural economics. He is co-editor,
Wendy Liu and Jennifer Aaker has shown that human motivation is much more
along with Daniel Oppenheimer, of
that willingness to donate increases after complex than previously thought.
The Science of Giving: Experimental
people are asked to imagine giving some Approaches to the Study of Charity.

17. 17 17
Personal & Career Development
Salary negotiations
‘Money’, is one of the most daunting questions your figure. Assume you’ll be negotiated down so allow room
you’ll face during interviews and reviews. But, it for manoeuvre; remember the organisation will be trying to
secure the best deal too.
doesn’t need to be uncomfortable if you remember
that money is a natural part of the job negotiation The full package
process. A benefits package is not restricted to salary, so analyse the
details before rejecting what may seem a like a low offer!
After all, if you can’t negotiate over your own pay packet what Additional benefits can equate to 40 per cent of your basic
does it say about your abilities as an employee? These tips from salary, for example bonus schemes, company shares, training,
Leon Richards, Recruiter Relationships Manager at WBS, will holiday, medical benefits and travel expenses.
help you to use your influence to get the best deal.
Think!
Preparation Don’t make rash decisions. If you’re made an offer be positive
Without knowing your value you’re in a weak position. Research but ask for time to respond. This allows initial emotions to
the salaries commanded by others in similar roles. Sources of subside and space for analysis of the package on offer. If you
information include: w vault.com, glassdoor.com and feel an offer is below par, express your concerns when asking for
salary.com. If you’re still struggling, use your network and time to consider. You’ll quickly find out if there’s any flexibility!
careers team. Once you have a salary range in mind be
prepared to use this during negotiations. Set in stone
Once you’ve accepted an offer, get it in writing. HR
What motivates your boss? departments can be slow sending out paperwork so, if you’re
If you’re negotiating within your existing role or company moving to a new company ask for a confirmation email at the
find out what motivates your boss. Do they have concerns or least before handing in your notice.
projects you can help them with? If you can add value and help
them to reach their goals, then they’ll be more inclined to make Just say no!
you a competitive offer. If you decline a job or pay offer be polite and honest. You never
know who you’ll come across throughout your career so don’t
How low will you go? burn your bridges.
It seems obvious but many people don’t take the time to
work out what their bottom line is. How much do you need
to live, how much are you hoping to earn and what is your on the knowledge centre...
compromise position? Think these issues through and practice
how you will react in different scenarios. Work with a friend How often do we
and ask them to provide feedback on your performance and examine the risks we
influencing skills. take in our own careers?
Or examine the talent
Sell yourself risk that may develop in
In any negotiation, affirming your position is paramount… and our own organisations? Chris
that means selling. Have a clear argument ready as to the value Beer, UK Managing Director of
you will/do add to this role. Merryck & Co, examines risk
from a career and leadership
perspective.
Show me the money?
w tinyurl.
The art of negotiation lies in not revealing your hand until the
com/3c9da3c
last minute. If you’re negotiating over a new role it’s wise not to
discuss numbers until you’ve had an employment offer. A polite
holding tactic is to say you’d be happy to talk about salary
once you have learned more about the role. In any situation,
if you’re pressured to reveal your financial expectations,
resist. If you’re specifically asked to name a
number select a calculated odd number.
This will make it more difficult for the
organisation to knock even
chunks off

18. 18
18
The WBS Virtual Business Cafe
Now open!
The Virtual Business Cafe is the free online space Q: What’s your vision? I’d like the Virtual Business Cafe
where the WBS community can gather to listen to to become the place for the WBS community to discuss
the business and career issues facing organisations and
experts discuss topical business issues... without individuals globally. I believe it will support the vision of WBS
leaving the comfort of their own homes or offices! being the best university-based business school in Europe.
So many business meetings now happen in cafes and using I hope individuals will suggest ideas and topics to grow the
our virtual meeting room, wbsLive, we can now bring that cafe and that other WBS professional networks will host their
environment to you. own events.
Every ‘meeting’ ends with a Q&A session with the presenter, Q: What’s coming up? We’ve got some great meetings
all of whom are alumni of WBS. scheduled over the next six months. Experts will discuss
subjects ranging from leadership and the importance of
Nigel Brownbill, Virtual Business Cafe innovator, took five collaboration to transformation and change management.
minutes to discuss his motivations and vision for the project.
Tuesday 6 September Chris Beer, CEO, Merryck & Co
Q: How did you come up with the idea of the Virtual
Business Cafe? I thought it would be a great idea to mirror Wednesday 5 October Andy Cole, CEO – Bliss
today’s practice of having business meetings in cafes so Marwa Bouka, Resources Manager,
students and alumni could engage with each other, hear UN World Food Programme
current thinking and gain practical business and career Thursday 3 November John Pendleton, President and
development knowledge. COO, HP Pelzer
Thursday 1 December Iestyn Evans, Head of Business
Q: Why is it important to you? My motivations are varied.
Development, Lloyds Banking
Past students have achieved so much, both in the profit and
Group
non-profit sectors. Many are executives and CEOS of global
organisations and I want to showcase that. WBS is lucky to Tuesday 10 January Nigel Brownbill, Chairman,
have passionate and proud alumni who want to give their Advanced Corporate Concepts
time and share their experiences. Thursday 2 February Shubhendu Mathur, Senior
Consultant, Elix-IRR
I also think it’s essential that students and alumni are
enabled to engage with this vast network of skills and talent For more information visit w wbs.ac.uk/go/cafe
as it adds value to their WBS experience.
Q: How is the cafe different to a lecture? This is an easy About Nigel
one! You’re sitting in your own home, alone or with friends, Nigel Brownbill MBA (Warwick) is Lead Ambassador to
relaxing with a cup of your favourite latte, cappuccino or the Strategy & Consulting Network. Founder and Executive
macchiato listening to a business leader discuss a topic Chairman of Advanced Corporate Concepts he has over
relevant to today’s global economy. It might be leadership, 22 years’ strategy, leadership and talent management
strategic alliances, managing turnarounds and change, or experience. Nigel is author of Be the Best in Business and
linking strategy with talent management, but whatever it is writes for w bethebestinbusiness.blogspot.com
you’ll have opportunity to question and participate.
Q: Why should people come along? They’d be crazy not to!
Why wouldn’t a student or experienced professional who
is developing their career want to build their competitive
advantage in today’s tough job market? I mean, who
wouldn’t want to learn from and talk to business leaders? I
don’t think other business schools offer access to executives
in such an innovative way, so I’d encourage everyone to take
full advantage of it.

19. 19 19
Get involved...
Help us to make an impact on our students from Sharing the Warwick experience
their first point of contact through to building a
Matt Stocker (BSc
lasting and beneficial relationship with WBS.
Management) spoke to
prospective students at the
Why not:
WBS Undergraduate Open
H offer a project or placement to a WBS student
Days on 16 February and 2
H join the conversation w wbs.ac.uk/conversation
March 2011.
H recruit a student
H speak on a programme or at an event
Since graduating, Matt has
H buddy a new student
set up his own consultancy
H support a recruitment fair or open day
business
H mentor a student or recent graduate
w mattstocker.com
H run or join a global or professional network
H work with us on a project. Matt Stocker Professor Peter Corvi,
Associate Dean of the WBS
If you’re interested email e alumni@wbs.ac.uk to arrange a
Undergraduate Programme, said ‘Matt described how he had
time when we can call you to discuss how you’d like to get
found not one but two of his jobs via the Warwick Careers
involved. For information on all the ways to get involved, visit
Service and also how he had met his wife here!’
w wbs.ac.uk/alumni/givingback.cfm
Christopher Cole (BSc
Volunteering with the Cranfield Trust Management) also took centre
stage to speak to prospective
In the spring edition of nexus undergraduate students at
we introduced our partnership the University Open Day on
with the Cranfield Trust, a Saturday, 7 May.
not-for-profit organisation
providing free consultancy for Christopher is an analyst for
charities and social enterprise the Royal Bank of Scotland.
groups. Charlotte Brown MBA During a joint presentation,
(Warwick) works for the Royal Christopher Cole with Nicola O’Day they
Mail and volunteers with the described what they gained
Cranfield Trust. from the course, and how it helped to prepare them for their
future careers.
Charlotte says ‘Volunteering has proved a very good fit with my
life demands as I am able to manage the volunteer activities WBS is extremely grateful to all its undergraduate alumni
around work and family. The forms were straightforward to event volunteers. If you’d like to get involved in undergraduate
complete and they approached my references very quickly. recruitment events, contact e Oliver.Walmsley@wbs.ac.uk
Within a short space of time, I was approached with a potential
Who’s been joining the conversation?
volunteer assignment. I was given time to assess the assignment
to determine if I had the skills and time to take it on.
Abimbola Olufore – Abimbola talks about her MBA, how the
Warwick MBA programme helped her focus on the important
The team at the Trust gives you all the background information
things in her job, and how its flexibility was fantastic.
you require for a potential assignment, and then provides you
with the key contacts for you to make direct arrangements for
Steve Hales – Steve is CEO of Sapien Innovations Ltd, a
your volunteer activities.
company supporting early stage business development. He
talks about how his experience at WBS shaped his career.
What I really enjoy is the space you’re given to support
the charity. I’ve been privileged in shaping a key piece of
Join the conversation:
work, knowing that the outcome will play a key role to that
w wbs.ac.uk/conversation
organisation’s future funding needs.’
If you’re interested in volunteering with the Cranfield Trust visit
w cranfieldtrust.org

20. 20
20
Mentoring
Entrepreneurship pilot mentoring scheme launches
‘More support and guidance in terms of personal opportunity. That person provides a sounding board in what
and professional development’ is what you asked us is, really to be honest, one of the loneliest places because when
you run a small business you run it more or less on your own.’
for last year. We responded with the launch of the
entrepreneurship pilot programme on Tuesday 17
Could you be a mentor?
May. The main WBS mentoring programme is now in its second
year and recently took on another 70 participants and 26
The pilot is sponsored by the London Chamber of Commerce
mentors, bringing the total number of volunteers to 90.
and Industry Commercial Education Trust, and will support
eight mentees through the first year of their new business
We’ll be recruiting mentors for the 2012 programme
venture using one-to-one mentoring, an online toolkit and
(March start) from September. We’re specifically looking for
specialist training seminars.
individuals with a minimum of 15 years’ industry experience
who have set up their own businesses or are based within
Increasing success
the finance and banking sectors.
Chair of the Steering Committee and pilot project manager,
Steve Martin MBA (Warwick) commented, ‘statistics for new
start-ups show that only one in four make it past 18 months Steering committee welcomes new member
without a business mentor, whereas four out of five do succeed The WBS Mentoring Steering Committee is delighted to
when an experienced business mentor is actively involved. welcome alumna Alison Watts, Managing Director, Icendris Ltd.
Whether you believe the statistic or not, having someone Alison is a member of the Alumni Executive and her role on the
who has been there and done it can certainly help new committee will be to work with the steering group to develop
entrepreneurs understand the pitfalls and provide a sounding plans to look at the routes for women in industry to reach senior
board and guiding hand during this high risk stage – this board level.
is what this new pilot scheme is all about – improving your
chance of success.’
Dean Mark Taylor said, ‘the commitment to giving back to WBS
shown by this group of volunteer alumni is truly outstanding
and I am delighted with the progress and momentum gained
by not only this pilot but also the main WBS mentoring
programme, which has doubled in size again this year.’
The pilot has the backing of senior faculty members who
attended the launch, presenting research and case studies.
Delegates were also impressed with external practitioners who
volunteered to come and talk about their own start ups.
There was a real feeling of excitement at the launch as pilot
mentees delivered their elevator pitches, revealing their
motivations and unique selling points.
A different perspective
Mentee Fiona Williams said, ‘I’m excited about the pilot
because I’ll get a different perspective, a sounding board –
someone to essentially check what I am doing –I’ll then go
away and decide what the right direction is for me’. Mark
Broome another mentee commented, ‘It’s definitely going
to be useful to have a mentor to bounce ideas and concepts
off because they’ve got the experience of what is and is not a
valuable idea.’
Mentor Mark Payton said ‘I founded my own business and have
just led a buy out of another business. The thing that I’ve found
extremely useful is having a confidant, a mentor who you can
call and say I have got this particular challenge, problem or Entrepreneurship pilot participants