Professor Mark Taylor Dean, Warwick Business School Warwick Business School References ž 
Taylor, M.P. ‘Stags, Hares and Strategic Planning: Towards a Model of Academic Leadership’, WBS Working Paper, 2012 ž 
Mankiw, N.G., Taylor, M.P., Ashwin, A. (2013) Business Economics, 1st EdiMon, Hampshire: Cengage Learning Warwick Business School 2 Professor Mark Taylor ž 
Began career as a foreign exchange dealer in the City of London ž 
Economist at the Bank of England ž 
Senior Economist at the InternaMonal Monetary Fund, Washington DC, for five years ž 
Managing Director at BlackRock, the world's largest asset manager; led the European arm of the Global Market Strategies Group, a large global macro investment fund ž 
Special Economic Adviser to two cabinet members of the UK Government ž 
Professor at Cass Business School and Oxford University before joining Warwick University Warwick Business School Professor Mark Taylor ž 
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Dean of WBS from April 2010 Leading internaMonal authority in open economy macroeconomics and internaMonal finance ž 
Recognised as one of the top five researchers in his field in the UK, and among the top 100 globally, in a report by Thomson-­‐
Reuters enMtled: ‘The World’s Most InfluenMal ScienMfic Minds’ ž 
Has acted as a consultant to the InternaMonal Monetary Fund, the World Bank, the Bank of England, and numerous private financial firms ž 
Currently a member of BoE Fair and EffecMve Markets review Warwick Business School What do leaders do?
Warwick Business School 5 What do leaders do? ž 
Provide strategic leadership —  Vision —  Focus —  Culture, values, intellectual renewal ž 
Provide strategic management —  Structure —  OrganisaMon —  ImplementaMon Warwick Business School 6 The professional service organisa@on (Maister, 1993; Mintzberg, 1994) ž 
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Knowledge producing/disseminaMng insMtuMons Highly skilled knowledge producers/disseminators High degree of independence relying on good ciMzenship for overall coordinaMon Leadership=management of autonomy E.g. law firm, consultancy, hedge fund, university, business school Warwick Business School 7 New Public Management (NPM) and Higher Educa@on ž 
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Public sector reforms across all Anglo-­‐Saxon countries post 1979 Cuts in public funding UK – Thatcher – market-­‐oriented ‘Neoliberal Managerialism’ UK – Blair – metrics-­‐oriented ‘TechnocraMc Managerialism’ Overall thrust: quasi-­‐market principles and focus on performance metrics (e.g. league tables) Warwick Business School 8 Academic leadership and the NPM NPM cannot be unilaterally rejected ž  Need to align goals and aspiraMons of the insMtuMon with the metrics ž  Use the metrics to drill down into insMtuMonal performance ž  Build insMtuMonal strength and diversify the funding base in order to salvage autonomy ž 
Warwick Business School 9 Finance and Leadership 1. 
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Provide Stability Allows for investment, renewal and exploitaMon of opportunity Transparent enough to facilitate accountability and good governance Ensures efficient allocaMon of resources to support the strategic plan Warwick Business School 10 Ten Basic Principles of Economics 1. 
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Decision Making Involves Trade-­‐Offs The Cost of Something Is What You Give Up to Get It RaMonal People and Businesses Think at the Margin People and Businesses Respond to IncenMves Trade Can Make Everyone Bener Off Markets are Usually a Good Way to Organize Economic AcMvity Warwick Business School 11 10 Basic Principles of Economics cont… Governments Can SomeMmes Improve Market Outcomes 8.  An Economy’s Standard of Living Depends on Its Ability to Produce Goods and Services 9.  Prices Rise When the Government Prints Too Much Money 10.  Society Faces a Short-­‐Run Trade-­‐Off Between InflaMon and Unemployment 7. 
Warwick Business School 12 Economics and Business Decision Making ž 
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Economics is not all about supply and demand, it’s actually about how people behave Economics = science of decision making ‘The Economic Problem’ – Scarce Resources and Unlimited Wants and Needs Business Decision Making —  Human Decision Making —  Value for Money —  Investment —  Growth and Expansion —  Acquiring and Keeping Customers Warwick Business School 13 Economics: Games People Play ž 
Much of Economics is based on game theory ž 
Non-­‐cooperaMve versus cooperaMve soluMons ž 
Classic game: Prisoner’s Dilemma ž 
Has a non-­‐cooperaMve soluMon – Nash equilibrium Warwick Business School 14 John Nash: Nobel Laureate 1994 Warwick Business School 15 Warwick Business School 16 Warwick Business School 17 Warwick Business School 18 The Prisoner’s Dilemma ž 
A ‘game’ between two captured prisoners that illustrates why cooperaMon is difficult to maintain even when it is mutually beneficial Warwick Business School 19 The Prisoner’s Dilemma Warwick Business School 20 The stag hunt game A more complicated game is the ‘stag hunt’ game ž  CoordinaMon failure ž  ‘If it was a maner of hunMng a deer, everyone well realised that he must remain faithful to his post; but if a hare happened to pass within reach of one of them, we cannot doubt that he would have gone off in pursuit of it without scruple…’ Jean-­‐Jacques Rousseau (1754) ž 
Warwick Business School 21 The stag hunt game Payoff is high for cooperaMon (stag hunMng) but this depends on cooperaMon of others and so is uncertain ž  Payoff is low for non-­‐cooperaMon (hare coursing) but this depends only on oneself and so is certain ž  CoordinaMon failure results in the second best, non-­‐cooperaMve soluMon ž 
Warwick Business School 22 The university as stag hunt Academic freedom, vague contracts ž  Primary academic allegiance to discipline, not to insMtuMon ž  ‘Reluctant managers’ ž  HosMle external environment ž  Incipient CoordinaMon failure ž  Cohen and March (1974) ‘garbage can’ model ž  Leadership = coordinaMon ž 
Warwick Business School 23 The stag hunt game Payoff
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24 The Energy Investment Model Warwick Business School 25 Warwick Business School: Rankings ž 
WBS full-­‐Mme MBA ranked in global top 25 by the Financial Times, and 7th in the world by Forbes (3rd in the UK for schools outside the USA) ž 
WBS distance-­‐learning MBA ranked 1st in the UK, 2nd in the world by QS ž 
WBS ExecuMve MBA ranked top standalone ExecuMve MBA in the UK, and 19th in the world by the Financial Times ž 
WBS MSc Finance ranked number 1 pure finance course in the UK and in global top 15 by the Financial Times ž 
WBS Doctoral programme ranked in Europe’s top 3 by the Financial Times ž 
WBS MSc Management ranked 31st in the world by the Financial Times ž 
WBS undergraduate programmes ranked in UK top 6 by all major university guides Warwick Business School 26 WBS at The Shard Warwick Business School 27 Execu@ve Educa@on at WBS Custom Offers e.g. Emirates ž  Finance and Business Economics for Senior Execu7ves ž 
○  New, week-­‐long intensive course working on the financial insight and economic pracMce that execuMves moving up to the most senior posiMons need to understand the strategic choices facing their business ○  Event at The Shard on 20th November ○  For more informaMon visit the WBS website: www.wbs.ac.uk ž 
Behavioural Science and Leadership ○  New offering again focussing on cupng edge pracMce and leadership (Professor Nick Chater FBA) ○  Event at The Shard on 17th November Warwick Business School 28 Execu@ve Educa@on ž 
Leading Wisely ○  Very popular ○  Cupng edge pracMce and theory of leadership ž 
The Warwick Execu7ve Network provides boosters and masterclasses in strategy and leadership Warwick Business School 29 Thank you Warwick Business School