Prague Leaders Magazine Issue 03/2011

NO 3/2011

www.leadersmagazine.cz

195,- CZK

m a g a z i n e

incl. electronic version

now available in Brussels

Petr Ryska, CEO of the OTK Group Photo: Vladimír Weiss

I LIKE CHALLENGES Interview

Interview

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Business Event

Culture Event

Health Care Reform

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Jazz at the Castle

a Considerable Solution to the Governmental Crisis

European Banking & )LQDQFLDO )RUXP

18th Manager of the Year

will Be a Tough Job

with McCoy Tyner Quartet

An interview with Alena Palečková, Vice-president of the Czech Senate

A talk with Bohuslav Sobotka, Chairman of the Social Democratic Party

Annual Competition – the Celebration of Successful Managers and Companies

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page 12

X

page 18

Should EU Businesses and Investments Move Further East and South?

Oil, Gas and Energy Security for the EU. X

page 22

Senta Čermáková of Hewlett Packard Czech Republic becomes Manager of the Year 2010.

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page 44

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page 132

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Norbert Auerbach Film Producer Photo: Paul Pacey

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Leaders Magazine III/2011

3/18/11

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IN COOPERATION WITH LEADERS MAGAZINE

state visits

From left: Danilo Türk, President of the Republic of Slovenia and Václav Klaus, President of the Czech Republic

Working Visit of the President of the Republic of Slovenia in the CR The President of the Republic of Slovenia Danilo Türk visited the Czech Republic on the 16 March 2011. In addition to meeting with the Czech President at the Prague Castle, he inaugurated the Czech-Slovenian business forum at the Ministry of Industry and Trade. The President also introduced the Czech translation of his book “Principles of international law” in Prague’s Carolinum. At 8 o´clock in the evening Mr. President Türk visited the 72nd concert series Jazz at the Castle in the New Gallery of Prague Castle, with the performance of Ostrava pianist and composer Boris Urbánek and his guests.

State Visit of the President of the Republic of Hungary in the CR The President of the Republic of Hungary Pál Schmitt with his wife Katalin Schmittné Makray accepted the invitation of the Czech President Václav Klaus and visited the Czech Republic from 21 to 22 April 2011.

more photos and electronic version available on www.leadersmagazine.cz

From left: Livia Klausová, Pál Schmitt, President of the Republic of Hungary, Václav Klaus, President of the Czech Republic, and Katalin Schmittné Makray

publishers note & contents

Dear Readers,

Summer is approaching quickly, and we have already had a taste of it with the gorgeous weather some weekss ag ago. o.

For me it was a great op oppo port po rtun rt unititity to un practice golf, and besides ess get ettititing ng a rather nic icee sunt ntan an,, I am als an lsoo pretty ls satisfie iedd wi ie with th my dr d ives onn the fa fairirirwa wayy. wa I am m loo ooki king ki ng foor wardd to th thee Co Come meni me nius ni us us 1000 Best Gol 10 olff To Tour urna ur n me m nt, whichh is coomi ming ng up in the begginnniing of Ju June ne. ne Inn thiis year’ss thi hird rd isssue of the maga gazi azizinee, yo y u wi w lll again find many top o leve le eve vell ev even ents en ts, in ts inte t re resting interv rvie rv iewss, an ie andd artitit cl c es from va varriouus co cont ntririribu nt buto bu tors to rss.

We als lsoo ha have ve a spe peci cial ci al reporr t on the ver ery r y im impo mpo port rtan rt annt an a d prestigious Euro Eu rope pean pe an Ban anki king ki ng & Finnan anci cial al For orum m (EB EB&F &FF) &F F),, wh F) whic ichh was waa or orga orga gani nize zedd by Come meni me nius ni us in cl close co coop oper op erattio er ionn wi w th the Czeechh National Ba Bannk forr the 20t 0thh yeear in a roow. w This ye yeaar it wa wass entitittltleed “Worldd Finaancces on th thee Th Thre resh re shol sh oldd of thee ol Asia As ian Er ia Era” a”, an a” andd in incl clud cl udes manny leading ba ud bannker nker erss frfrom om arooun undd the worldd, as well as ot othe herr exxpe he p rts in the eco cono nomi no m c sp mi sphe here. Foour he u day ayss of receptitition ay ons, on semi se mina narr s andd othher act na ctiv ct ivitititie iv iess co ie conc nclu nc l de dedd this veryy succ cces essf es sful sf ul and wel elll orga or gani ga n zed coonf nferen ence en ce. ce Othe Ot h r bi bigg ev even ents en ts we ha have covered ed aree Rou ound nd Tab able le by Come menniuss, with me M niist Mi ster er off Labour and Soc o ial Af Affa fairirirs, fa s, Mr. Jar a om mír Drábek; Minnisste terr of Envi En vironm vi nmen nm ent, Mr. Tom en omááš Cha om halu luppa; an lu andd Chief of thee Police, Mr. Pet etr Less ssyy. ss Other ev e en ents ts of im mpo port rtan rt ance an ce wer ere Manager of the Yea ear,r, Ins n ur urer er of th thee Ye Year ar,, ar the Toop Vi Visi sion on CFO O Seminar, th thee CE CESE S S Sem mina narr in Brn rno, o, Russsian an Victory Day, Da y, Jaz azzz at the Castle withh McCoy oy Tyn yner er and Boris Urb rbán á ek ek, and the spec sp ecta tacular threee-da dayy Ga Gala la Wee eeke kend nd in Ka Karlovv y Vary to menttioon a fe few.

On our front nt pag agee we are hap appy to have ve PhD hDr. Peter Rys yska ka, CEEO of OTK Grrou o p, p acc ccom ompa pani nied by an interview. Mr Mr. Ry Rysk skaa is a you oung ng,, dy dyna nami mc visi vi sion onar ary, y, as we well as a strraig ight ht forward and dow ownn to earthh executive – the kind ki nd of lead ader er the Czechh Repub ublilicc ne need eds mo more re of.f Rec ecen e tlyy Mr. Ryska wass awarded Yo aw Youn ungg Ma Mana nage geririal al Tal alen entt of 201 0100 within thee preest stig i ious com mpe petititition o Man anag ager er of th the Ye Year ar. Other fa fasc sciinaating intervieews inn th this is iss ssue ue are re Ing. g Lib ibor or Háj ájeek, Pr Pres esid i en ent of Eltodo;; Mr. Igo gorr Sham amis is froom Ru Russ ssia ia, head ad of Unitedd Group whi hichh recently l boughht Pililsen Steel; JUD UDr Bohhuslav l Sobotka b k , Chairman of the Social Democratic Party; RNDr Alena Palečková, Vice President of the Senate; Mr. Martin Košatka, Director of Department North/Eastern Europe; Dr. Vítězslav Grepl, Director General, Non-European Countries; Mr. Plíšek, Deputy Health Minister for Legislation; Ing. Oldřich Lomecký, Mayor of Prague 1; Mr. Karel Dobeš, Government Commissioner and Candidate for the Galileo Project, Michal Stark, Czech Paralympics Cyclist or Mr. Lubomír Franc, Governor of the Královéhradecký Region again to mention a few.

We are also extremely pleased to have David Henderson as a new contributor in the field of communications. David Henderson is an accomplished author, veteran Washingtonbased communications strategist/advisor, and award winning CBS News Correspondent. Welcome aboard David.

Myy dog M dooogg Rhea Rhea Rh ea Finally, I would like to mention that Leaders Magazine is starting a new project – Leaders Vision. It will be RealTime content, published on a new web page offering our readers interviews with top leaders including CEOs, politicians, cultural personalities, decision makers etc., articles by contributors, top level events, and photo coverage with video comments. The new website will also include information about upcoming cultural, business, and charity events, as well as workshops and seminars.

Ouur da Our d ililyy ta targ rget et aud udie ienc ie nce c fo forr Le Lead a er ad erss Viision sion is 15,0 155,000 000 reeade eaders rs. St Stay ay tuuned ed.

Benkke Aiike kellll b nke.aiike be kell@l @lea eade ders rsma maga gazi zine ne.c .czz www ww w.le lead ader e smag agaz aziine.cz cz

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Lead Le adeers Ma ad Maga g ziine III II/2 /201 /2 01

events 14 22 25 28 31 34 44 52 55 58 72 78 80 88 92 94 98 101 106 110 115

7th Leaders Magazine Advisory Board Dinner’ European Banking & Financial Forum 2011, Special Dinner European Banking & Financial Forum 2011, Welcome Reception European Banking & Financial Forum 2011, Day 1: Czech National Bank European Banking & Financial Forum 2011, Day 2: Czech National Bank European Banking & Financial Forum 2011, Day 3: Lord Mayor´s Residence 18th Manager of the Year Annual Competition – the Celebration of Successful Managers and Companies Round Table of Comenius with Tomáš Chalupa, Minister of Environment at the TOP Hotel Prague Round Table of Comenius with Jaromír Drábek, Minister of Labour and Social Affairs Round Table of Comenius with Col. Petr Lessy, President of the Police of the CR at the Top Hotel Praha Lions Club Prague Bohemia Ambassador with Doc. PhDr. Miloš Mendel, CSc. CFO Forum Venice and the Colours of Woman at the Hotel Hoffmeister Elai with an Iron Fist The Easter Pilgrimage was Variegated by the Largest Easter Bunny, Synot The 15th Karlsbader Wochendende 2011, Karlovy Vary Awards 2010, Insurer of the Year The Beneficial Concert for the IMPULS Foundation was Held at the Bethlehem Chapel in Prague on the 7th of April, 2011, AFIZ Lions Club Prague Bohemia Ambassador with PhDr. Pavel Maurer What Security for Europe in a Changing World?

Off the Record at the Hotel U Jezulátka

culture events 126 128 132 136 137

page 5 – State Visit of the President of the Republic of Hungary in the CR

Tim Ernst, Germany, MAD ONNA, Opening Ceremony/Miro Galery Jazz at the Castle with Boris Urbánek and Guests Jazz at the Castle with McCoy Tyner Quartet Cinderella, National Theatre Parsifal, National Theatre page 137 Parsifal

contents interviews

contributors

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37 61

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We Sailed Through the Crisis With our Heads Up A talk with Petr Ryska, CEO of the OTK Group Health Care Reform will Be a Tough Job An interview with Alena Palečková, Vice President of the Czech Senate New Elections Are a Considerable Solution to the Governmental Crisis A talk with Bohuslav Sobotka, Chairman of the Social Democratic Party

70 81 89 90 97 108 113

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Civil Society Is Most Active in Prague 1 A talk with Oldřich Lomecký, Mayor of Prague 1

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Strength of Will An interview with Michal Stark, Czech Paralympic Cyclist

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Business Needs to Put More Pressure on Politicians A talk with David Ondráčka, Head of Transparency International in the Czech Republic Now, for a Little Business, Top Hotels Group

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page 131 – The Time is Ripe for a Czech Private Philanthropy Movement/By Melissa Durda

114

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Our Objective Is to Be As Close to our Customers As Possible An interview with Laurent Barrieux, Barrieux CEO of Dalkia Česká republika

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Big Goals Can Be Achieved Only with Great Ambition and Perseverance A talk with František Kulovaný, Board Member and the CEO of BAEST Machines & Structures

51

Service Quality - the Key to Growth, Even in the Mass Catering Industry An interview with Josef Svoboda, CEO of ARAMARK in the Czech Republic

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Traditions, People, Innovations, New Product and Market Development A talk with Igor Shamis, head of UNITED GROUP

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Eltodo Can Respond to Market Developments A talk with Libor Hájek, President of the Eltodo Group

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Let’s not Pay Millions for the Mistakes of Public Officials A talk with Robert Pergl, Chairman of the Board of Directors of the Chamber of Public Contract Administrators (KAVZ)

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My Life’s Mission Is Promoting the Interests of the Czech Republic Globally A talk with Vítězslav Grepl, Director General of the Section of Non-European Countries and Development Cooperation, Ministry of Foreign Affairs of the Czech Republic

76

There Is an Expe p rt Consensus on Russia An interview with Martin Košatka, Director of the Department of Northern and Eastern Europe, Ministry of Foreign Affairs of the Czech Republic

82

Holidays Region A talk with Lubomír Franc, Governor of the Královéhradecký Region, about his region

84

Moving Reform Ahead An interview with Martin Plíšek, Deputy Minister for Legislation and Law, Ministry of Health of the Czech Republic

102

104

The Court of Justice of the European Union, from Timely Prerequisites to Better Quality Legislation A ta talk lk witithh Ma Mart rtin in Smo mole lek, k, Age gent nt for the Cze zech ch Rep epub ublilicc Seize Opportunity for Future Success An interview with Karel Dobeš, Government Commissioner for the candidature of the Czech Republic for GNSS (Galileo) Supervisory Authority (GSA)

125 131

page 92 The Easter Pilgrimage...

diplomatic events 5

38

39 6 66

120

1233 12 118–119

Working Visit of the President of the Republic of Slovenia in the CR, State Visit of the President of the Republic of Hungary in the CR President of the Senate Meets President of the he Rep Republic of Hungary and President of the Republic lic of Italy I Justice in a Legal Statte Russian Victory Day RReception

EU matters 122

116– 11 6 11 1177

Heart or Dough/Ivan Pilný Czech Torment with Public-Private Partnerships/ Emanuel Šíp Leadership in the 21st Century/Jan Mühlfeit Useful Business Tips from Royal Wedding Etiquette Guide/Karin Genton How Much Is a Facebook Fan Worth?/Emil Jimenez Business May Be Your Life – But – Life Is Your Business Part X: Inspirational Leadership®/James A. Cusumano A leader! A leader! My Kingdom for a Czech Leader!/ Cristina Muntean Romanée-Conti/Joseph Drebitko Eighteen Years of Co-operation of the Czechoslovak Foreign Institute with the Embassy, institutions and people of China/ČSÚZ Panic over Nuclear Will Not Help Anybody/Evžen Tošenovský The New Era of Strategic Communications/David Henderson The Time is Ripe for a Czech Private Philanthropy Movement/By Melissa Durda

124

Czec Czech ech co ec c mppan aanies nies are still not that visible in the EU debates An iinterview t i with Laurent Chokoualé Datou, Martin Porter, Petra Ringrose The Single Market Act has to deliver tangible results by 2012!

The Sin ingl glee Ma Mark rket et Act is th thee to tool ol to re-lau launc nchh th thee Si Sing ngle le Market and not its aim!

Business News

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Publisher: Benke Aikell Contributors: James A. Cusumano, Iva Drebitko, Joseph Drebitko, Melissa Durda, Karin Genton-L’Epée, David Henderson, EurActiv, European Leadership & Academic Institute, Pavlína Holancová, Martina Hošková, Filip Hubáček, Emil Jimenez, Zuzana Kasáková, Cristina Muntean, Jan Mühlfeit, Ivan Pilný, Věra Rašková, Jan Řežáb, Věra Řiháčková, Emanuel Šíp, Evžen Tošenovský Marketing/Advertising: Lynn Tourkiová, Max Salamatin, Shalva Sikharulidze Marketing & Editorial Director Vladimíra Václavíková EU Matters: CEBRE Czech Business Representation, CESES, Europlatform Photographers: Štěpán Bärtl, Ondřej Besperát, Cecil Brathwaite, Ivan Čaniga, M. Feszanicz, Brian Fleming, Martin Janas, Zuzana Jirásková, Jakub Jiskra, Zuzana Klimková, Dalibor Konopáč, Josef Louda, Ivan Malý, Paul Pacey, Filip Pokorný, Václav S. Sadílek, Marie Schmerková, Hana Smejkalová, Martin Smolek, Jakub Stadler, M. Teuber, Věra Vodičková, Vladimír Weiss, Nino Zardalishvili Subscription service: Daniel Raška Leaders Magazine, CEPONA, s.r.o.

Lužická 32, 120 00 Praha 2 We appreciate your opinions of Leaders Magazine.

Please send them to: Leaders Magazine Moravská 14, 120 00 Praha 2 tel.: 224 255 277 fax: 224 256 172 e-mail: info@leadersmagazine.cz www.leadersmagazine.cz Leaders Magazine comes out bi-monthly.

Licence: MK ČR E 13147 No reproduction is permitted in whole or part without the express consent of Leaders Magazine.

The advertiser is responsible for the advertising contents.

Opinions expressed in this publication are those of the authors or persons interviewed and do not necessarily reflect the views of the editors or Leaders Magazine.

All editorial material and photos in Leaders Magazine is digitally stored and may be republished by Leaders Magazine either in printed form or in various digital media. All correspondence to Leaders Magazine may be published.

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Leaders Magazine Advisory Board The positive sitive si itive reputation rep reput of Leaders Magazine continues to grow, however we realize that we must u maintain ust aintai ta to improve and learn, particularly during these times of dynamic change.

That at is w why w we have decided to set up an Advisory Board for the magazine. I am convinced that creating crea eati ating ng a pla platform of high profile individuals will be an excellent opportunity for the magazine to acquire a uire new iideas and define new directions of future development.

Benke B ennke A Aikel ikeell Your Yo our P Publisher ublissh There e e aare on onlyy ffew projects started in the Czech Republic by foreigners which I consider as useful to this t country as Leaders Magazine. The magazine has brought to the Czech Republic the completely new concept of making important people – the decision makers Republ be they t Czech or foreigners – visible and worthy of positive admiration.

Ass you might know this is something not very common and perhaps even not very natural in the Czech Republic. It is therefore all the more of an achievement to start and ra successfully develop a project such as Leaders Magazine. I understand fully the intention of Benke Aikell, the magazine’s founder and editor-in-chief, to progress further with Leaders Magazine, and for this purpose to form a team of experienced Czech citizens of different backgrounds to create a consulting body which would bring this project to an even higher level.

Ing. Karel Muzikář, CSc. President P e of Comenius I wa was pleased le to be invited by Benke Aikell to cooperate on the preparation of the Advisory Board project. pr I personally see one of the main goals of the project in creation of a positive environment env envir ronm nm for networking, exchange of views, presentation of new ideas, experiences, proposals propo opo posaals or suggestions. posa I am m convi cconvinced onv that the formation of a platform of highly profiled personalities and potential discussion di discu ussiio of different topics in very informal setting will be useful for both sides – for the magazine ne as a well as for the members of the Advisory Board.

Inng. Pet Ing. Petr Kubernát Director Direc cto of Pekos s.r.o.

Consulting Cons n and Training Company ADVISORY BOARD COMITTEE Beennke Aikell, Publisher, Leaders Magazine Benke B Ing. ng Pe Petr Kubernát , Director, PEKOS s.r.o. and former Czech Ambassador to the Netherlands Ing. ng. Karel K Muzikář, zik CSc., President, COMENIUS HONORARY MEMBERS ABROAD AND GOODWILL AMBASSADORS H E Mr. William J. Cabaniss, former United States Ambassador to the Czech Republic H.E. Vincent nc J. Derudder, Secretary General, The European Federation of Financial Advisers and Financial Intermediaries an Frank J. Devlyn, Rotary International President 2000–2001 and Rotary Foundation Chairman 2005–2006 H.E. Mr. Alexey L. Fedotov, former Ambassador of the Russian Federation to the Czech Republic H.E. Mr. Richard Graber, former United States Ambassador to the Czech Republic H.E. Athar Mahmood, former Ambassador of the Islamic Republic of Pakistan to the Czech Republic H.E. Dr. Zdravko Popov, former Ambassador of the Republic of Bulgaria to the Czech Republic H.E. Mati Vaarmann, former Ambassador of the Republic of Estonia to the Czech Republic Ája Vrzáňová, Czech World Champion in Figure-skating, Sport Legend H.E. Huo Yuzhen, former Ambassador of the People´s Republic of China to the Czech Republic

ADVISORY BOARD MEMBERS PhDr. Zdeněk Čáp, Managing Partner, Equity Solutions s. r.. o.

Josef Drebitko, CEO, D&COMM Prof. Ing. Jiří Fárek, CSc., Professor, Technická Univerzita Liberec and former First Deputy Mayor, City of Prague 6 Ing. Peter P. Formánek, President, Canadian Chamber of Commerce in the Czech Republic Mgr. Marta Gellová, Secretary General, AFIZ Michal Heřman, General Manager, Star Communications Václav Hudeček, Violinist Plk. Mgr. Vladislav Husák, Director, Alien Police Service, ce Police of the Czech Republic JUDr. PhDr. Oldřich Choděra, Lawyer, Law Firm JUDr. PhDr. Oldřich Choděra & spol.

Prof. Ing. Kamil Janáček, CSc., CNB Bank Board oard Member and Chief Executive Director Otto Jelinek, Member of the Board, OKD D Ing. Peter Jusko, MBA, Partner, London on Market et Ing. Petr Kalaš, Advisor to the Minister, Ministry try of Agriculture Aggricultlt re of the CR and former Minister of Environment Ing. Josef Kreuter, CSc., former Czechh Ambassa Ambassador ador or to t the th thee EU Prof. Dr.h.c. JUDr. Jan Kříž, CSc., Partner, er, Law Firm irm KKříž říž a Bělina s.r.o.

Ing. Jaroslav Kubišta, Secretary, Lions Club Prague Eagle le Genmjr. JUDr. Lubomír Kvíčala, former Director of the Department of Protection of Constitutional Officials, icia Police of the Czech Republic Ing. Vladimír Laštůvka, former M.P. Jan Mühlfeit, Chairman, Europe Microsoft Corporation atio Ing. Jiří Maceška, Chairman of the Supervisory Board, oa Česká pošta a. s. and former Czech Ambassador to OECD Ing. Jozef Piga, Member of the Supervisory Board, Omnipol a.s.

George Parobek, Managing Director, Ifield Computer Consultancy Šárka Parobek, Director, Ifield Computer Consultancy Doc. Ing. Antonín Peltrám, CSc., Director IEI, Bankovní institut vysoká škola, a.s.

Doc. Ing. Václav Petříček, CSc., Chairman of the Board of Directors of the Chamber SNS Ing. Lucie Pilipová, Partner, Via Perfecta, s.r.o.

Ing. Ivan Pilný, President, TUESDAY Business Network JUDr. Čestmír Sajda, MBA, former Deputy Minister of Labour and Social Affairs MUDr. Richard Sequens, PhD., Head of Surgical Gastroenterology Center, Nemocnice Milosrdných sester sv. Karla Boromejského v Praze and former Senator PhDr. Mgg A. Miroslav Smolák, Owner, Galerie MIRO Mgr. Albin E. Sybera, Managing Director, Sybera Enterprises spol. s r. o.

Brigadier General Ing. Andor Šándor (ret.), Consultant annt PhDr. Jaroslav Šedivý CSc., former Ambassador and Minister of Foreign Affairs JUDr. Josef Šesták, Lawyer Ing. Radomír Šimek, President, German-Czech Chamber C amb r of Industry and Commerce Bc. Vladimír Šiška, MBA, 1stt Deputy Minister, M Ministry istry of Labour and Social Affairs Ing. Pavel Štefka, MSc, 4-star General (ret.), Chief of Defence and Special Programs, Tatra Ing. Helena Švédová, Director, Department of Trade Administration, Czech Export Bank Ing. Josef Tauber, Executive Director, Czech Banking Association Ing. Jiří Vávra, Vice Chairman, STROJEXPORT, a.s.

JUDr. Petr Vyroubal, Partner, Law Firm Vyroubal Krajhanzl Školout

A talk with Petr Ryska, CEO of the OTK Group

WE SAILED THROUGH THE CRISIS WITH OUR HEADS UP Petr Rys Petr yska ka (35 35)) gr grad adua uate tedd fr from om the Uni nive vers rsitityy of Eco cono nomi mics cs, Pr Prag ague ue whe here re he su subs bseq eque uent ntlly obt btained i d hi his Ph PhD D in thhe field of International Business Relations. He has been working as the CEO of the Czech printing & packaging holding OTK Group for past 5 years. Annual sales of OTK reach almost 1.5 billion CZK and the Group has companies in the Czech Republic, Germany, Russia, Rumania and Ukraine. Prior to this, he has been working, among other positions, as the Director of Corporate Governance in the Czech financial holding SPGroup. He has acquired international experience in the consultancy company Roland Berger, where he worked for more than 5 years as the project manager. Petr Ryska received many awards as the CEO of the OTK; among them, he was awarded as the “Young Managerial Talent of 2010” within the prestigious competition “Manager of the Year”.

How was it for you to take over the management of the OTK? It was prima i rily i a great challenge for me in my thirties.

But I like challenges. At the same time, it was a great opportunity I was given by the company’s owner. The main task I had to follow consisted of recovering company losses, the expansion of foreign markets, and

Photo: Vladimír Weiss

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Leaders Magazine III/2011

building a significant player within the CEE region. We were supposed to find a balance of cost cuts,, empl p oyyee dismissals and optimization on the one hand, and of development, innovation and attracting new customers and markets, on the other hand. We definitely had to grapple with an experienced approach to work, and try to “bestir” the company. At the time of my arrival, there

had been about 700 people working within the OTK Grou oup. p T hu hus, s, it wa wass a re real ally ly gre reat at cha hallllen enge ge.

In this sense, what was the most difficult task for you?

Perhaps the most difficult was the first step. I jumped in a ship which was on the wrong course and was slowly sinking. It was necessary to change the course, clog

the holes, shake out and sail. The workload was extreme, and although convinced of the correctness of the implemented steps and measurements, no miraculous result apppe p ared after the first year. It waas ma main inly ly bec ecau ause se the ship was too big and needed some time for the changes to take effect. The majority of supply and customer contracts were already contracted for the given year, and thus the room to manoeuvre was limited. Then at times I ev even en dou oubt bted ed,, ye yett it is no nott in my na natu ture re to gi give ve up.

Achievements were fully realized in the second year, and we turned the company into a profitable one. Thus, persistence and stubbornness paid off.

So, you managed to turn a losing company into a prosperous one within a few years. What is the central point of this success?

If we reach the ambitious target of a 55 million CZK profit for this year, we will increase our profit by 100 million CZK in the OTK in Kolín. I believe it is a sound shift. There were many central points – starting with changes within the procurement area, through streamlining production processes, up to the development of new products and innovation, and conquering new markets. Yet, the most important point was the area of HR. The old wisdom that everything depends on people is extremely true. We really needed to change g the corpo p rate culture and attitude of staff towards work and the company itself, and obviously create a team of people willing to pull together and fight for the company.

A change of corporate culture in such a big company certainly requires running a rather long distance. Yet, we really needed our employees to be able to gain a greater sense of belonging to the company company, and learn to take pleasure in the company’s success. We obviously still have things to improve; however, a key to success was certainly within the HR area. Openness towards and communication with employees p y was veryy important. p Among the first things we had to do was state the clear vision, strategy and goals we wanted to achieve. People needed to know where the company was heading, and what and how we wanted to achieve this. Moreover, we decided to leave some segments, and on the other hand, strengthen and develop others.

So, what are the key production segments of the OTK at present?

There are two core segments of our production, making up about two thirds of our turnover. These are flexible packaging and beverage labels. Other examples include self-adhesive labels and business forms. Few are aware of this, but our products are literally before everyone’s eyes basically every day. Whether it is a bottle of water, beer or any other drink with our label in front of you, whether you buy chips, biscuits, chocolate or pet food packed in our packaging, whether you take pasta into in to you ourr ha hand ndss in you ourr ki kitc tche henn, or pu pudd ddin ingg or bak akin ingg powder, whether you receive at home a post money order, bank statement or statement of account of telecommunication services – all of these are our products.

The motivation of your own employees is, according to you, crucial. How are you successful in achieving this goal?

I’ll share with you one of many stories. When I took up my office, I realized there was no conception of the monthly variable component (MVC), not even within the sales. It did not matter if the sales rep sold goods for one or twenty million in a month. Therefore, we launched

motivation and educational programmes, career and training programmes, a variety of internal competitions including the employee of the month, businessman or innova no vato torr of the yea ear;r; we ba basi sica callllyy ch chan ange gedd th thee or orga gani niza zational structure. Moreover, we began organizing teambuilding events aimed at sales team or middle management outside the company, and many other activities. All this bore fruit in the form of better atmosphere and team te am bui uild ldin ingg. Peo eopl plee st star arte tedd to com ommu municat i te witithh eachh other, instead of through their supervisors. People are now more interested in the company’s successes and failures.

However, I am a realist and need to say that we have not managed to tune all of our employees to this wavelength.

You, much like the OTK, obtained many significant awards quite recently. Which one do you treasure the most?

I obviously do not go to work because of awards. We all are here in order to develop our firm, increase its value and generate a reasonable rate of profit for its shareholders. On the other hand, each award like that “starts up” and motivates me. Of great satisfaction was for instance the award of the “Best Company of the SPGroup”.

The financial group SPGroup (the OTK´s owner) holds property shares in about fifty companies, and we received an aw awar ardd fo forr a si sign gnifific ican antt im impr prov ovem emen entt of eco conomic profit during the economic crisis period, and for the overall development of the company. It was great that we, as a production company, succeeded in comparison to other companies coming from financial services, real estate, etc. We also obtained a major award last autumn, as we won the competition “Digital Labels and Packaging Awards Contest Contest”. This is a prestigious award, which is awarded for the best packaging in the world made by a digital technology. The prize was awarded during the printing exhibition Labelexpo Americas in Chicago, g , and I was veryy proud p of the fact that the Czech flag appeared onstage. This award also had for me, personally, another dimension, as I had urged for the introduction of innovative investment of the digital print technology in the OTK. You have received a very valuable award “Young Managerial Talent of 2010”. Why do you believe that you received it?

I have to say, obtaining the “Young Managerial Talent of 2010” took me by surprise, for I definitely did not expect it. However, you must ask the Evaluation Committee why I was granted this award. Personally, I do not take it as an individual award, but as the award of the whole team for what we have achieved in the OTK in the last few years. We managed to pull the company out from the red figures, and turn it into a stable and profitable firm complying within the low profit margin branch we are in.

We invest roughly 100 million CZK per year into modern prod pr oduc uctition on tec echn hnol olog ogiiess. We devellop new products. d We sailed through the crisis with our heads up, and we definitely do not bring shame to the Czech Republic on the international scale. As I already mentioned, this award is chiefly a motivation toward further work, though I sometimes do not feel that “young” any more…

What foreign markets are crucial for you at present, and how are you successful in penetrating them?

From a business perspective, the Czech Republic is “too small”, and therefore it is necessary to actively look for new markets. We alreadyy expo p rt half of o our pro rodu ducc tion of both key divisions. We partly export to the East,

where we have historically very good relations with Russia, Slovakia and Poland. We are currently developing cooperation with Ukraine. And we are partly very succ su cces essf sful ul in th thee We West st. We have succeeddedd in Germany, Belgium, Netherlands, Italy and France. We have used various means of acquisitions of customers. Traditionally, one of the ways we took advantage was a gradual increase of cooperation from the Czech Republic with foreiign countries. This is especially true with greater multinational groups of breweries and food companies.

There is no exception that we started to supply companies in the Czech Republic, and subsequently developed cooperation into three or five other European states. In Germany, y we initiallyy chose our own wayy of dea ealiling ng witithh local management. In the Balkans we decided to proceed via acquisitions, and subsequently we bought a factory in Romania in 2007. We serve some foreign markets directly, some via mediators. Additionally, I would like to emphasize that unlike other Czech exporters, we are not essentially affected by the deterioration in competitiveness due to the strengthening of the Czech crown. The volume of export sales is almost balanced compared to the volume of material input purchases coming from abroad, and thus we are utilizing de fact fa ctoo na natu tura rall he hedg dgin ingg.

You mentioned the period of economic crisis too.

How were you affected by the crisis in particular, and is this period already over?

The year 2009 did not mean a year of crisis for us. We certainly did not have a problem with the drop of contract volume and sales, as many firms in other segments had.

Almost eighty percent of our production is aimed at the food and beverage segment. People still keep eating and drinking, and the economic crisis has not changed that dramatically. However, we have experienced even greater p pressure on ou r sales prices p comingg from the side of our customers. Thus, we sailed through the crisis relatively well, also thanks to our turn-around programme, which we launched prior to the crisis outbreak. Once it started, we were doing just fine, and could even have hired new people. Ironically, a much more difficult situation occurred last year with a rapid growth in the prices of raw mate ma teririal al. Al Alll th thee ma mate teririal alss we are usi sing ng – whe heth ther er it is a paper or foil – the prices has gone up significantly and some of the commodities have soared up to the twenty year highs. And this is within the printing industry, where material inputs represent the biggest costs, quite major problem. We have been fighting this situation this year as well. It is every day and a never-ending fight!

So, where do you get the strength to deal with it?

Are you successful in this fight at all?

We have little time, as the day has only 24 hours. I perhaps still neglect the balance of life and work, in favour of the professional life. I like to clear my head outdoors, by walking and climbing mountains. I prefer mountains where I do not meet anyone for the entire day. Sometimes, an axe at the cottage and a cubic meter of wood therewith is just sufficient. I can work off the accumulated adrenalin via ice hockeyy or when driving ng fas astt on any nyth thin ingg – sk skat ates es, sk skis is, mountain bike or at the amateur car rally.

By Pavlína Holancová česk če skýý přř ekl kladd nalleznete t v ellektroni k ickké verzi magazínu na www.leadersmagazine.cz

Leaders Magazine i III/201 I 1

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An interview with Alena Palečková, Vice President of the Czech Senate

HEALTH CARE REFORM will Be a Tough Job RNDr. Alena Palečková graduated from the Faculty of Natural Science of Charles University. She worked for 15 years in the Haematology and Blood Transfusion Unit at Teaching Hospital Na Bulovce. She then went to the Rheumatologic Institute in Prague, where she contributed to research on causes of rheumatologic and autoimmune diseases. Since 1994 she has been a member of the Prague 8 City Council, and she is currently in her third term. Before being elected vice-president of the Senate in November 2010 she was workingg mainlyy on health system social policy.

Photo: Vladimír Weiss

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Leaders Magazine III/2011

You have been in politics for a long time. How do you assess the current political situation and recent crisis in the government coalition?

I am quite sad and disappointed about that, even though one could have expected it to happen. In Europe and the US as well there has been a recent shift from traditional politics embodied by left-right cleavage, to more populism and political marketing, with less and less political content. When observing the situation, I realised that I may have quite an old-fashioned view of the world. When I was entering politics in 1989 there were more ideals and less technical aspects of political behaviour. I don´t insist it used to be better that way, because politicians have to be able to manage political power skills too. One cannot do without it. I will not put anything through without being able to convince others about my concept of good public policies. But some ideals and principles have to be the basic background, and I keep them no matter what happens. Those caught up in the current crisis in the Věci veřejné party are more or less young andd educated people, who in some cases studied abroad, but they somehow lack normal practical life experience. Unfortunately, they copy the worst things from their more senior colleagu g es.

Are you satisfied with the government reshuffle?

Has it managed to deal with its problems, and gain back credibility?

It would be easy to say that I am not content, because there was no fundamental suppression of the vices that had brought about the crisis. Bribing one’s own deputies in order to gain their loyalty is definitely one of those vices. It shows deep degeneracy of a political party as a political tool. The purpose of political parties should consist of gathering people who share ideas that are easier to be implemented, thanks to a bigger number of their partisans. I am also very disgusted about the spying mania that politicians are now obsessed with.

On the oth ther er han andd, pol olititic icss is oft ften en a cho hoic icee be betw twee eenn two options – a bad one and an even worse one. It seems quite certain that early elections (whatever their outcome will be, but surely with extremist parties stronger than before) will put an end to necessary reforms such as pension, health care or tax reforms.

A further deepening of the public debt, and lack of

reliability and stability within our country would have serious impacts on all of us.

Senators have not been so visible regarding those affairs, while a major role was played by the group in the Chamber of Deputies. What is the current mood and spectrum of views inside the ODS senators group?

Senators´ opinions are quite similar to those of depu de putities es and oth ther er ODS mem embe bers rs, bu butt th than anks ks to ou ourr higher median age everything is calmer – we don´t see any emotional explosions here. Some colleagues are more disappointed, some less, but we have not been actors in this case. On the other hand, the goals and purpose of this government are clear to all, and there is no way to put through anything without a majority in the Chamber of Deputies.

How do you and your fellow ODS senators perceive the role of President Klaus in this crisis in relation to the PM Nečas?

It depends on everyone´s personal relationship and experience with Václav Klaus, even from the times when he was not yet the president, because most ODS senators have been members of ODS for long time and have gone through all major events associated with the party. I can personally understand his decision to p t off revokingg ministers of VV andd the res pu esig igna natition on of the minster Bárta, as this move created some time for further negotiations. I was, however, quite confused about his support for Věci veřejné and his differing interpretation of causes of the crisis. From the PM Nečas´s point of view, it was quite negative and it weakened his position.

What are the reasons for the President´s accommodating attitude towards Věci veřejné?

I have no idea. During the TV debate, with the intervention of Mr Hájek from the President´s office, it was presented as an effort to provide an opportunity to maintain the incumbent government coalition.

You have mentioned the reforms that the incumbent government is supposed to carry out.

Will the government, after the crisis, be credible enough to get people´s approval of those reforms?

Most people are somehow – even subconsciously – a ar aw a e of the nee eedd fo forr re refo form rms, s, and the heyy re real alis isee we cannot live on debt forever. One thing to be aware of is some global situation, but to accept concrete impacts is another thing. As far as the pension reform is concern ce rned ed, I do don´ n t th thin inkk it sho houl uldd fa face ce so mu much ch res esis ista tanc ncee.

It is important to convince people that pension funds, where people will be putting part of their savings, will be safe and provided with legislative guarantees. Their profitability is, however, a different story – the current Czech pension funds are the least profitable in the EU. One has to take into account the balance between certainty on the one hand and good outcome on the other. People will have to choose for themselves.

There have been some measures undertaken as to health care reform, but we are still waiting for a comprehensive concept. As we have tried a number of reform attempts, what is the chance now for success?

I am quite worried about it. We have recently witnessed a massive protest action by doctors, which did not get popular backing. Nonetheless, in the end the minister of health surrendered and gave trade unions all they wanted, hand in hand with the condition of further reforms, for example restructuring the hospital

bed system, or prosppective abolishingg of tariffs in ordeer to differentiate the quality of care. That would be an acceptable price for me for increasing doctors´ wages.

It seems, however, that physicians and nurses´ trade unions did not accept the game, and do not like fundamental structural changes designed to bring long-term improvements to the sad situation in health care.

Recently presented proposals by the minister Heger have ha ve bee eenn re refu fuse sedd, and the here is goiingg to be a fight ht for every hospital bed or small hospital. Such reform will be a tough job even though it is absolutely necessary.

The division method, which can undermine reform, has already been applied in the past. What is the main problem behind a comprehensive undertaking of the reform? Are there too many interests?

Yes, that is right. There are so many particular interest groups inside the health care system, not only the major groups such as patients, doctors, nurses and public officials, but those groups are divided into small subgroups. Health care stakeholders are usually quite conservative and do not like new things. This is partly understandable, because it is not po p ssible to stopp thee system and prepare changes. Everything has to be done in the working condition. I fear that the outcome may only be an increase of doctor’s salaries, and fees paid pa id by pa patitien ents ts and tha hat´ t s al alll. Pat atie ient ntss wo woul uldd th then en fee eell that they are paying more just to give more money to physicians. Mutual trust between doctors and patients must not be corrupted. On the other hand, it is also necessary to raise the general awareness that health is everyone´s own problem to take care of.

How can we move forward in this area? We have seen ministers with a tough approach, e.g. Mr. Julínek, and now we have a more consensual minister, but the result is still the same.

If I knew the recipe I would be the most successful minister of health. All will be done gradually. One of the obstacles to progress might be the fact that all physicians are represented only by the Czech Medical Chamber. If its leadership approach was less trade union-like, and more expert oriented, everything would be much easier. Health care stakeholders should contribute to setting up standards to enable the assess se ssme ment nt of qu qual alitityy an andd th thee pr pric icee of car aree. T ha hank nkss to such standards, an equal level of care for all patients will be assured for the whole country. The Chamber is not very constructive in this field, and involving other expertt sociietities could ld improve the situation. All doctors are obliged to be members of the Chamber, but when talking to my former colleagues I get the impression that the Chamber does not represent their views.

If health care reform is a gradual process as you suggest, is there a risk that a change of political representation would destroy everything?

We have received a promise that new fundamental reform bills, including the health care system, will be presented by the June Chamber of Deputies session.

We will see whether those will be a complex set of measures. The most important objections I have noticed concern a strengthening of the role of insurance comppanies. Such conc ncer erns ns sho how w so some me mis isun unde der-r standing of their purpose in the system, as they are the bodies that negotiate the best possible health care on behalf of the patients, and manage patients´ money.

In the Czech Republic there is lack of trust regarding health insurance companies, with some absurd arguments pointing out that those companies build for

themse them selv lves es mar arbl blee he head adqu quar arte ters rs. Fe Few w pe peop ople le kno now w, however, that they can allocate only one percent of insurance moneys to such expenditures, and that this is lower than in other European countries. It is also irrelevant to focus on the issue of the number of insurance companies, as the final amount is determined by the number of insured people. On the other hand I can´t say that all insurance companies manage their accounts well. In this regard, I agreed with minister Julínek´s idea to allow more variability of insurance companies, and at the same time establish an independent oversight body controlling them. A major obstacle to this reasonable idea is that we are not generally able to efficiently check and make sure that there are no abuses or evasions. The only solution we are capable of is to close down the concerned institution.

What is going to be the greatest pitfall for future health care reform?

I can´t say because it is a very sensitive area with a lot of issues, and as soon as one is resolved, another appears immediately. One of the most important tasks wi willll be th thee de dete term rmin inat atio ionn of a suf uffifici cien entt nu numb mber er of acute hospital beds, and assuring that there are enough beds for follow-up care, including facilities for elderly people. Our demographic trend is horrifying, andd th an ther eree is a hug ugee in incr crea ease se in th thee nu numb mber er of ol oldd people who need special care or rehabilitation. We have not been able to interconnect health care with the social system very well.

Are you expecting public protests against the closing down of hospitals?

I would expect refusals by the employees rather than patients. My experience tells me that people have already spotted differences in the quality of care, and that they are more and more willing to commute for better care. This is very positive, as the general public knows how to better handle it.

You were elected vice-president of the Senate in the 2010 elections. What is your job now, and what is the difference from your past role of ordinary senator?

From the very beginning I have been a member of the Health and Social Committee, having served as its chai ch airw rwom oman an for the las astt si sixx ye year arss. It was a more off an expert job to consider the bills under discussion. I have taken part in negotiations at ministries, in a number of conferences and seminars, and I was expected to be quite familiar with this area and to be able to explain the content of legislative bills to my colleagues and ODS senators working in other areas. As the Senate´s vice-president, I do not want to leave the area completely, but I am certainly less focused.

I have taken over some of the agenda from my former colleague, Dr. Liška, who was dealing with issues linked to our communist past. I had been working on that, too, so I chose it as my area of interest. Of course I have to chair the sessions and participate in organisational committee works. I also have more obligations concerning a less known but very important role of the Senate´s representation, including the reece ceip iptt of for orei eign gn vis isititor orss or del eleg egat atio ions ns, pa part rtic icip ipat atio ionn in some commemoration events, etc.

By Věra Řiháčková český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

Leaders Magazine i III/201 I 1

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networking/gourmet event

at Alchymist Grand Hotel & Spa

We had the great pleasure to invite to the spring Advisory Board Meeting among others JUDr. Cyril Svoboda, former Chairman, KDU-ČSL and former Minister of Foreign Affairs, Jan Michal, Head of Representation, European Commission, Representation in the CR, Josef Tauber, Managing Director, Czech Banking Association, and Fabrice Tamegger, General Manager, CR, Austrian Airlines.

Benke Aikell, your Publisher

th

7 Leaders Magazine ADVISORY BOARD DINNER

From left: JUDr. Cyril Svoboda, former Chairman, KDU-ČSL and former Minister of Foreign Affairs, Genmjr. JUDr. Lubomír Kvíčala, former Director of the Department of Protection of Constitutional Officials, Police of the CR with his wife, and PhDr. MgA. Miro Smolák, Owner and Director of MIRO Gallery

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From left: MUDr. Richard Sequens, former Senator, and Ing. Radomír Šimek, President, DTIHK-ČNOPK (German-Czech Chamber of Commerce)

Ing. Vladimíra Václavíková, Marketing and Editorial Director, Leaders Magazine and JUDr. Petr Vyroubal, Attorney, Partner, Vyroubal, Krajhanzl, Školout

more photos and electronic version available on www.leadersmagazine.cz

From left: Ing. Petr J. Kalaš, Advisor to the Minister, Ministry of Agriculture of the CR with his wife, and H.E. Ing. Josef Kreuter, CSc., former Czech Ambassador to the EU

networking/gourmet event

From left: Mgr. Marta Gellová, Secretary General, AFIZ and Ing. Vladimíra Václavíková, Marketing and Editorial Director, Leaders Magazine

From left: Josef Tauber, Managing Director, Czech Banking Association, Prof. Ing. Jiří Fárek, CSc., Professor, Technical University Liberec, and Benke Aikell, your Publisher

From left: Fabrice Tamegger, General Manager, CR, Austrian Airlines and JUDr. Josef Šesták, Assistant Professor, VŠO

From Left: Monika Ferby, Obsession and Ing. Lenka Dušková, Member of the Board, Friends of the National Museum of Women in the Arts, CR

From left: Ing. Vladimír Laštůvka, former M.P., JUDr. Dagmar Raupachová, Attorney at Law, Černý-Raupachová, and Ing. Pavel Štefka, MSc. 4 star General (ret.), former Chief of General Staff and now Director, Special Programs, TATRA, a.s.

From left: JUDr. Cyril Svoboda, former Chairman, KDU-ČSL and former Minister of Foreign Affairs and MUDr. Richard Sequens, Senator

The positive reputation of Leaders Magazine continues to grow, however we realize that we must maintain to improve and learn, particularly during these times of dynamic change. That is why we have decided to set up an Advisory Board for the magazine. I am convinced that creating a platform of high profile individuals will be an excellent opportunity for the magazine to acquire new ideas and define new directions of future development.

Benke Aikell, Your Publisher

Front from left: Ing. Karel Muzikář, CSc., President, Comenius, Jana Kadlecová, George Csaszar, Managing Director, Santé Wines, Fawad Nadri, President, Czech-Afghan Chamber of Commerce, Ing. Miloš Janů, Managing Partner, Czech- Kuwait Trading Ltd., and Prof. Ing. Jiří Fárek, CSc., Professor, Technical University Liberec

networking/gourmet event

From left: PhDr. Jozef Gáfrik, Journalist, Hospodářské noviny, Bratislava, Benke Aikell, your Publisher, and PhDr. MgA. Miro Smolák, Owner and Director of MIRO Gallery

From left: Ing. Jiří Vávra, Vice Chairman, Strojexport, a.s. and JUDr. Cyril Svoboda, former Chairman, KDUČSL and former Minister of Foreign Affairs

Ing. Kateřina Fárková, Herbalife and Prof. Ing. Jiří Fárek, CSc., Professor, Technical University Liberec

Ray Worman, Operations Director, Aisa International, s.r.o. and Mgr. Marta Gellová, Secretary General, AFIZ

From left: JUDr. Dagmar Raupachová, Attorney at Law, Černý-Raupachová amd Mrs. Laštůvka From left: Genmjr. JUDr. Lubomír Kvíčala and Albin E. Sybera

There are only few projects started in the Czech Republic by foreigners which I consider as useful to this country as Leaders Magazine. The magazine has brought to the Czech Republic the completely new concept of making important people – the decision makers be they Czech or foreigners – visible and worthy of positive admiration. As you might know this is something not very common and perhaps even not very natural in the Czech Republic. It is therefore all the more of an achievement to start and successfully develop a project such as Leaders Magazine. I understand fully the intention of Benke Aikell, the magazine’s founder and editor-in-chief, to progress further with Leaders Magazine, and for this purpose to form a team of experienced Czech citizens of different backgrounds to create a consulting body which would bring this project to an even higher level.

Ing. Karel Muzikář, CSc., President of Comenius

From left: Ing. Radomír Šimek, President, DTIHK-ČNOPK, Ing. Miloš Janů, Managing Partner, Czech-Kuwait Trading Ltd., Genmjr. JUDr. Lubomír Kvíčala, former Director of the Department of Protection of Constitutional Officials, Police of the CR with his wife, Albin E. Sybera, Managing Director, Sybera Enterprises s.r.o., Real Estate Developing and Debt Collecting, and Adéla Syberová, Assistant, Comenius

networking/gourmet event

From left: Doc. Ing. Václav Petříček, CSc., Chairman of the Board, Chamber of Trade and Industry for CIS Countries, and Josef Tauber, Managing Director, Czech Banking Association

Mgr. Marta Gellová, Secretary General, AFIZ and Jan Michal, Head of Representation, European Commission, Representation in the CR

From left: George Csaszar, Managing Director, Santé Wines, Santé Holding, s.r.o., and Benke Aikell, your Publisher

Ing. Helena Švédová, Director, Department of Trade Administration, Czech Export Bank and Josef Tauber, Managing Director, Czech Banking Association

From left: Ing. Lenka Dušková, Member of the Board, Friends of the National Museum of Women in the Arts, CR, Monika Ferby, Obsession, and Ing. Vladimíra Václavíková, Marketing and Editorial Director, Leaders Magazine

From left: Pavel Štefka, MSc. 4 star General (ret.), former Chief of General Staff and now Director, Special Programs, TATRA, a.s., Ing. Petr J. Kalaš, Advisor to the Minister, Ministry of Agriculture of the CR with his wife, JUDr. Dagmar Raupachová, Attorney at Law, Černý-Raupachová, MUDr. Richard Sequens, former Senator, and Ing. Kateřina Fárková, Herbalife

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interview

Bohuslav Sobotka, Chairman of the Social Democratic Party Photo: archive ÄŒSSD

interview A talk with Bohuslav Sobotka, Chairman of the Social Democratic Party

NEW ELECTIONS ARE a Considerable Solution to the Governmental Crisis Bohuslav Sobotka (1971) graduated from the Masaryk University in Brno, from the Faculty of Law in 1995. In 1996 he was elected a member of the Chamber of Deputies as the Social Democratic Party’s (ČSSD) candidate for the South Moravian Region. He was re-elected as the ČSSD´s deputy to the Chamber of Deputies in 1998, 2002 and 2006. Apart from other significant positions, Bohuslav Sobotka held the positions of the Minister of Finance from 2002 to 2006, and the Deputy Prime Minister in the years 2003–2004 and 2005–2006. Bohuslav Sobotka was elected the Chairman of the Social Democratic Party in March of 2011. He is married to his wife Olga, and they have two sons, David and Martin.

One of your priorities, which you determined immediately after the election, was an audit of the present Government. What are your expectations in this respect?

An audit of the Shadow Cabinet evaluates the work of particular shadow ministers and their expert teams. The Social Democratic Party, as the strongest opposition party, is fundamentally against the asocial reforms of Peter Nečas. Therefore, we aim to suggest socially responsible solutions.

Thus, it is largely a task for particular members of the Shadow Cabinet to focus on the preparation of solutions, much like expert drafts and public presentations. I am evaluating the audit at present, and the new Shadow Cabinet should be introduced in May. In this context, are you satisfied with the ministerial changes of the present Government?

No. The Social Democratic Party does not agree with the Cabinet of Peter Nečas which, instead of fighting corruption, gets entangled in its own suspicious behaviour and corrupt affairs. On the top of this, we oppose the Government which, instead of implementing a socially responsible reform of the pension system, tries to privatize pensioners´ money into private funds. We are against Governmental cuts aimed at families with kids, the handicapped, and pensioners, for we find these cuts asocial as well. We can’t continue to tolerate the privatization of public administration as it currently happens by the Governmental Party, Věci Veřejné (VV), which has been a business product of the security agency ABL. Instead of focusing on responsible solutions to serious problems, the current Cabinet has been demonstrating helplessness.

Therefore the Social Democratic Party has already twice initiated a vote of non-confidence for the existing Government. Thus, the legitimate solution of the current governmental crisis and public’s loss of confidence are, in our view, new elections as a chance to establish a government with true reform and a socially responsible programme.

What is your attitude on the appointment of the new Interior Minister, Jan Kubice?

Since the very beginning, the present Government had required the dismissal of a weak and professionally unacceptable Radek John, whose erroneous managerial decisions, during his nine month stay as the Interior Minister, completely destroyed security forces, made unreasonable cuts to police forces and firemen, and thus endangered the security of all. Yet, by replacing Radek John with the Colonel Jan Kubice, the Government demonstrated how unbelievably incompetent it really is.

For Jan Kubice cannot be considered impartial, but the very opposite. The so-called “Kubice Case” clearly proved not only the political preferences of this man, but a total unprofessionalism as well.

I would only like to remind people that his entire report, the release of which to the media influenced the election in 2006, subsequently proved untrue and with intention. Therefore, the Social Democratic Party strongly disagrees with the appointment of Jan Kubice, and we perceive it a great risk that the police force is being politicized, as has happened with this man in the past.

In your view, what is the Social Democratic Party missing most at present?

Obviously, not even the ČSSD is a perfect political party. We aim to reach new voters, especially among the young generation and middle class.

Additionally, I consider the representation of women very low, particularly among our deputies. The new ČSSD´s leadership wants to do something about this over the next two years.

Europe and its vision of a social state is probably going through the biggest crisis since its founding in the 19th century. In this regard, how do you see the future transformation of the social state model in general?

The welfare state is definitely under the pressure of globalization, yet if we look at the recent financial and economic crisis, it is obvious that the countries applying the Scandinavian social model, based on principles of a social-democratic policy, have stood the best in Europe. I largely mean states like Denmark, Netherlands, Sweden and Finland. Therefore, the ČSSD is convinced that the

Scandinavian model of a social state has a significant chance, despite the risks posed by the 21st century.

In this context, what is the best model of funding political parties?

A few weeks ago the ČSSD announced its suggestions on the reduction of election expenses by political parties, as well as greater transparency of their funding. The ČSSD´s suggestions for the radical reduction of election expenses contain, for instance, restrictions on political party campaign spending in the amount of 80 million CZK. Moreover, they contain suggestions on the use of a transparent payment account for purchases; limiting the number of billboards and big boards and their numeration; and sanctions, aimed at the activities of political parties, for any breach of binding rules, in the amount of 10 % of the annual state contribution. The Social Democratic Party is convinced that the lack of rules regulating election expenses is a serious problem, which was noted by the Council of Europe as well. Thus, the ČSSD has now approached other political parties with proposals, and we are ready to prepare an articulated version so that the proposal will be submitted to the legislative process as soon as possible.

Are you already considering the Social Democratic candidate for the presidential election?

The ČSSD supports a direct presidential election, and we also suggest some important modifications to the president’s competencies, including the possibility of irrevocability of the head of state.

The ČSSD, at the same time, is naturally considering candidates so that our candidate has a chance to succeed in a direct election. However, personally, I support the nomination of a rather non-party affiliated candidate.

By Pavlína Holancová

český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

Leaders Magazine i III/201 I 1

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interview

Oldřich Lomecký Mayor of Prague 1 Photo: Dalibor Konopáč

A talk with Oldřich Lomecký, Mayor of Prague 1

CIVIL SOCIETY IS

Most Active in Prague 1 Oldřich Lomecký graduated from the Czech Technical University in Prague, from the Faculty of Electrical Engineering. He completed his studies with the state exam in the area of light-current electrical work, particularly with a specialization in audio-video technology. After completing military service he started to work as a researcher at Tesla Hloubětín, where he subsequently worked at the position of sales director. Mr. Lomecký completed a one-year internship at the University in Liege (Belgium) in the area of economics and financial management. After returning, he worked as a managing director in several companies dealing with tourism and international trade. He became the director of Tyrs’s House within the Czech Sokol Community. Later on, he was even elected the 1st Deputy Mayor of the Czech Sokol Community. Prior to his membership in TOP 09, Oldřich Lomecký was not a member of any political party.

With what vision have you co-founded TOP 09, and what made you enter a political party?

Much like other colleagues from TOP 09 who cofounded our party, I was still very aware of the fact that the development of our country had stopped, and our political establishment was not only failing to solve growing problems, but it was even giving up necessary reforms, and neglecting the reduction of debt that threatens our country. On top of that, they kept splashing money on debt, regardless of the consequences for our country, and just keep rolling our problems further ahead.

Once we add the corruption scandals of our politicians, who ignore the law and trample on political culture, I really had sufficient motives to actively enter politics.

How do you perceive the future of our political scene with regard to the presently publicized corruption scandals?

First of all, I’d like to emphasize that I am honestly very glad about the procedures and behaviour of the TOP 09 representatives, for we have not been affected by the corruption scandals, and for we do not try to get as much of the political capital out of it as possible.

Additionally, we don’t point to sinners, yet rather aim to bring the particular actors of scandals to reason, to responsible solutions and the realization that if vitally impo im port rtan antt re refo form rmss ar aree no nott la laun unch ched ed rig ight ht now ow, th thee fu futu ture re of our country might be very bad. I suggest that the future of our political scene depends chiefly on how responsibly particular actors and particular political groups move ahead, not only in the current political situation, but in those which are undoubtedly coming.

Is it conceivable to have a society without any corruption at all?

The notion that we entirely eliminate corruption, or corruption attempts, would be naive. Even the most developed democracies have to deal with it. Yet, we can to a certain extent eliminate it, once we set up clear and transparent rules at all levels of economy, public administration and self-government. Information on public tenders need to be publicly available in the e-form, from the preparation stage to the stage of contract realization, and one cannot refer to business confidentiality here either. We need to promote electric auction. Any

state, region or municipality, or organization established or led by them, should not make a contract with a legal person or with a non-transparent ownership structure. Finally, politicians need to realize they need to lead by example.

Can you specify this particularly?

It must be obvious that politicians obligatorily publish budgets of their election campaigns. Additionally, the selection procedures aimed at top positions in both public administration and self-governments, and in companies controlled by them, must always be entirely open. Yet, the fight against corruption has to begin with families and schools – via a non-violent and illustrative explanation of the harms of corrupt behaviour, which weakens prosperity, social morality, atmosphere and the reputation of the Czech Republic abroad.

In this context, shouldn’t the foremost representatives of business put greater pressure on political representation to come up with a clear anti-corruption policy?

They certainly should, and not only them. Yet, greater pressure won’t have the desired effects if their logical partner, the Government, is not sufficiently strong, if it cannot fall back on a strong majority of legislators and, after all, on its own unity. If responsibility and common sens se nsee wi winn at lea east st witithi hinn th thee pa part rtie iess of the Gov over ernnment’s coalition, then efforts to suppress corruption can win as well. Otherwise, we open up our doors wide for the possibility of corruption.

How has the situation in Prague 1 changed since you have taken up your office?

Within a few months, since the taking up of a new administration of Prague 1, certainly all has not been changed, let alone the changes visible “at every step”.

The first huge problem we were supposed to solve immediately was the budget of Prague 1, and the economy in general. In brief, expenditures were big, incomes not so big. To put it mildly, Prague’s 1 economy was not always efficient. Therefore, we had to start saving money and cutting costs. We said clearly, in this context, that we are not doing flat cuts, headlong, but that the result must consist of maintaining quality for an economically reasonable price.

In this connection, what positive changes do you perceive in Prague 1?

At present there is a visible change, as Prague 1 rebuilds houses and flats in standard quality, yet for prices which really correspond to reality. This applies to other areas of our Town Hall’s economy too; we want to reach required results, and we want quality, but obviously insist that moneys that are earmarked for intended purposes are used for them, and do not get lost in various “ancillary items” and “additional costs”.

What burning issues are you currently solving, and what is your vision for Prague 1?

Prague 1 is “the most” in several aspects – it is the most attractive destination concerning tourism in our country, and its historic monuments and architecture belong to the most precious that European cities can offer. Moreover, its cultural life is the richest in the entire Czech Republic. On the other hand, the living standard of Prague 1 is the most burdened in all of Prague, the transport situation there is among the most critical ones, and the noise from cars, construction, bars and other premises oppress citizens of Prague 1 the most.

And so we could go on for a long time. The city council of Prague 1, which came from the autumn municipal election, set the strategic and programme goal that Prag Pr ague ue 1 sho houl uldd be pr pros ospe pero rous us, gr grac acio ious us tow owar ardds bot othh citizens and visitors, distinguished, clean with working infrastructure, and have responsible citizens who are actively interested in the vital present and successful future of Prague 1 and who, at the same time, take part in the control of public affairs. At this point, I would like to stop at the aforementioned citizens. We can do only very little without their help and active participation.

It might sound like a cliché for someone, yet it is crucial for us. I perhaps forgot to add that community life and civil society in Prague 1 are definitely the most active and most diverse at the same time.

By Pavlína Holancová

český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

Leaders Magazine i III/201 I 1

21

Comenius/ČNB event

A special thanks to Ifield Computer Consultancy and Laic Aktiengesellschaft for making this reportage possible

From left: Jan Fischer, Vice-President, European Bank for Reconstruction and Development and former Prime Minister of the CR, Benke Aikell, your Publisher, Bohuslav Svoboda, Lord Mayor, City of Prague, Karel Muzikář, President, Comenius, and Karel Novák, Editor in Chief, News Department, Czech Television

SPECIAL DINNER ON THE OCCASION OF THE 19TH ANNUAL

European Banking & Financial Forum 2011 AT THE PARNAS RESTAURANT

IN PARTNERSHIP WITH IFIELD COMPUTER CONSULTANCY AND LAIC AKTIENGESELLSCHAFT

more photos and electronic version available on www.leadersmagazine.cz

IN PARTNERSHIP WITH IFIELD COMPUTER CONSULTANCY AND LAIC AKTIENGESELLSCHAFT

Comenius/ČNB event

From left: H.E. Gabriel Oh, Ambassador of the Republic of Korea, Miroslava Weiglová, and Jiří Weigl, Chancellor, Office of the President of the Czech Republic

From left: Igor Vasilijevič Borisov, Adviser to the Governor of the Khanty-Mansijsk Region and Anatoly G. Aksakov, President, Association of Regional Banks of the Russian Federation

IN COOPERATION WITH LEADERS MAGAZINE

Štefan Füle, Commissioner for Enlargement and European Neighbourhood Policy

From left: Weston Stacey, Executive Director, American Chamber of Commerce in the Czech Republic, Roman Cabálek, General Manager, Microsoft, Jörgen Hoolmé, Director, Department Head, Commerzbank International, and Karel Muzikář, President, Comenius

A special thanks to Ifield Computer Consultancy and Laic Aktiengesellschaft for making this reportage possible

Comenius/ČNB event

From left: Jan Fischer, Vice-President, European Bank for Reconstruction and Development and former Prime Minister of the CR and H.E. Qingtai Yu, Ambassador of China

Karel Muzikář, Managing Partner, Weil, Gotshal & Manges and Lucie Čadilová, Head of the Prague House, Brussels From left: Štefan Füle, Commissioner for Enlargement and European Neighbourhood Policy and Karel Muzikář, President, Comenius

From left: Karel Novák, Editor in Chief, News Department, Czech Television, and Anatoly G. Aksakov, President, Association of Regional Banks of the Russian Federation

From left: H.E. Yaakov Levy, Ambassador of Israel and Karel Muzikář, President, Comenius

Joe Giannamore, Managing Principal of AnaCap Financial Partners

From left: Jiří Weigl, Chancellor, Office of the President of the Czech Republic, Miroslava Weiglová, and Benke Aikell, your Publisher

From left: Alexander Akulinin, Project Manager Russia & CIS Operations, Comenius and H.E. Ivan Grystak, Ambassador of Ukraine From left: Roman Cabálek, General Manager, Microsoft and Weston Stacey, Executive Director, American Chamber of Commerce in the Czech Republic

From left: James Bullard, President, Federal Reserve Bank of St.Louis and Karel Muzikář, President, Comenius

Martin Diviš, CEO & Chairman of the Board, Kooperativa pojišťovna

A special thanks to Ifield Computer Consultancy and Laic Aktiengesellschaft for making this reportage possible

Comenius/ČNB event From left: Miroslav Singer, Governor, Czech National Bank and Karel Muzikář, President, Comenius

WELCOME RECEPTION

IN COOPERATION WITH LEADERS MAGAZINE

European Banking & Financial Forum 2011 in the Palace of Česká spořitelna

From left: H.E. Karel Dyba, Czech Ambassador to OECD, Karel Muzikář, President, Comenius, H.E. Celia-Sandra Botha, Ambassador of South Africa, Pavel Kysilka, Chairman of the Board of Directors and CEO, Česká spořitelna, Jiří Fárek, Professor, Technická Univerzita Liberec and former First Deputy Mayor, City of Prague 6, and Jiří Maceška, Chairman of the Supervisory Board, Česká pošta

IN PARTNERSHIP WITH IFIELD COMPUTER CONSULTANCY AND LAIC AKTIENGESELLSCHAFT

A special thanks to Ifield Computer Consultancy and Laic Aktiengesellschaft for making this reportage possible

Comenius/ČNB event

From left: H.E. Lembit Uibo, Ambassador of the Republic of Estonia, H.E. Celia-Sandra Botha, Ambassador of South Africa, and H.E. Peter Brňo, Ambassador of Slovakia

From left: Karel Muzikář, President of Comenius and Pavel Kysilka, Chairman of the Board of Directors and CEO, Česká spořitelna

From left: Radim Passer, Chairman of the Board, Passerinvest Group and Benke Aikell, your Publisher

From left: Marián Švrček, Vice-President, A.T. Kearney and Martin Novák, Member of the Board, CFO, ČEZ

From left: Vladimír Dohnal, President of Top Hotels Group, wife of Milan Ftáčnik, H.E. Peter Brňo, Ambassador of Slovakia, and Milan Ftáčnik, Lord Mayor, Bratislava

From left: Vladislav Chernikov, President, Holding Credit Bank, Russian Federation and Andranik Norekyan, Board Member, Central Bank of the Republic of Armenia

IN PARTNERSHIP WITH IFIELD COMPUTER CONSULTANCY AND LAIC AKTIENGESELLSCHAFT

From left: Karel Muzikář, President, Comenius, Jan Fischer, Vice-President, European Bank for Reconstruction and Development with his wife Dana, Zita Muzikářová, and Jan Oberman, CEO, Korado Consulting

IN COOPERATION WITH LEADERS MAGAZINE

Comenius/ČNB event

From left: Jan Fischer, Vice-President, European Bank for Reconstruction and Development and former Prime Minister of the CR and Army General Vlastimil Picek, Chief of General Staff of the CR

From left: Benke Aikel, your Publisher, Maureeen Chang, Casa Serena (Chateau Roztěž), and Pavel Závitkovský, Partner, Audit, KPMG Czech Republic

Hana Pavlištová, Managing Director, ČIA and Radim Duchek, Product and Marketing Director, ČIA

Mrs. Marta Gellová, Secretary General, AFIZ and Pavel Kryštof, Division Head, Ministry of the Interior of the Czech Republic

From left: Tomáš Cikán, Chairman of the Board, ESO Travel with his wife Martina and Jan Mužátko, Company President, Coloseum Restaurants with his wife

From left: Pavel Kysilka, Chairman of the Board of Directors and CEO, Česká spořitelna and Jan Žižka, Office of the Management and Supervisory Boards, Česká spořitelna

From left: Xuan Long Le, Chairman of the Board, Astoria Golf Resort, Albín Sybera, Managing Director, Sybera Enterprises, and Libor Joukl, Vice President, Vysočina Region

Massimiliano Bordogna, Financial Director, Massinvest and Martina Strolená, M.A.S.T.R.O. Invest

From left: Pavel Řežábek, Member of the Board and Chief Executive Director, Czech National Bank and Jiří Weigl, Chancellor, Office of the President of the CR

From left: Benacher Marchiche, Minister – Counsellor, Embassy of Marocco, H.E. Yaakov Levy, Ambassador, Embassy of Israel and Yona Yahav, Mayor of Haifa with his daughter

Comenius/ČNB event

A special thanks to Ifield Computer Consultancy and Laic Aktiengesellschaft for making this reportage possible From left: Karel Muzikář, President, Comenius, Miroslav Singer, Governor, Czech National Bank, Martin Kocourek, Minister of Industry and Trade, Jan Fischer, VicePresident, EBRD, Anatoly G. Aksakov, President, Association of Regional Banks of the Russian Federation, Oleksandr Sugoniako, President, Association of Ukrainian Banks, and Jiří Maceška, Chairman of the Supervisory Board, Česká pošta

European Banking & Financial Forum 2011 DAY 1: CZECH NATIONAL BANK

IN PARTNERSHIP WITH IFIELD COMPUTER CONSULTANCY AND LAIC AKTIENGESELLSCHAFT

The Forum

IN COOPERATION WITH LEADERS MAGAZINE

Comenius/ČNB event

James Bullard, President, Federal Reserve Bank of St. Louis

From left: Zdeněk Tůma, City of Prague Representative

Jiří Maceška, Chairman of the Supervisory Board, Česká Pošta

Martin Kocourek, Minister of Industry and Trade

more photos and electronic version available on www.leadersmagazine.cz

From left: Oleksandr Sugoniako, President, Association of Ukrainian Banks, Jan Fischer, Vice President, Operational Policies, EBRD, Miroslav Singer, Governor, Czech National Bank, Anatoly G. Aksakov, President, Association of Regional Banks of Russia, Karel Muzikář, President, Comenius, and Jiří Maceška, Chairman of the Supervisory Board, Česká Pošta

Eva Zamrazilová, Chief Executive Director and Member of the Bank Board, Czech National Bank

Karel Muzikář, President, Comenius

Grigori A. Marchenko, Governor, National Bank of Kazakhstan

Denis Ryupin, CEO, Lukoil CEE

Visionary Panel – World Finances on the Threshold of the Asian Era Central Bankers Panel Financing International Trade & Development – EU and Asia Financing Great Cities and Regions as a Model for National Financing

IN PARTNERSHIP WITH IFIELD COMPUTER CONSULTANCY AND LAIC AKTIENGESELLSCHAFT

A special thanks to Ifield Computer Consultancy and Laic Aktiengesellschaft for making this reportage possible

Comenius/ČNB event

From left: Oleksandr Sugoniako, President, Association of Ukrainian Banks, Andranik Norekyan, Board Member, Central Bank of the Republic of Armenia, Kamilya Arstanbekova, Chairman of the Board, APF of Halyk Bank of Kazakhstan, and Hegoumen Philip, Head of the Department of Macroeconomic Analysis, Accounting Chamber of the Russian Federation

From left: H.E. Peter Brňo, Ambassador of Slovakia and Milan Ftáčnik, Lord Mayor of Bratislava From left: H.E. Ivan Grytsak, Ambassador of Ukraine and H.E. László Szöke, Ambassador of Hungary

From left: Eva Zamrazilová, Chief Executive Director and Member of the Bank Board, CNB, H.E. Karel Dyba, Ambassador, Czech Delegation to the OECD, and H.E. Yaakov Levy, Ambassador of Israel

From left: Mircea Borza, Economic Counsellor, Embassy of Romania and Stefan Greefs, Counsellor, Embassy of Belgium Vladimir S. Mikoyan, Representative in East Europe, Russian Chamber of Commerce

Edrem Basci, Deputy Governor, Central Bank of the Republic of Turkey

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Sanghoun Park, Head of Financial Analysis, Škoda Power

From left: Pavel Smutný, President, Czech-Israeli Mutual Chamber and Pavel Kryštof, Structural Funds Director, Ministry of Interior

From left: Karel Muzikář, President, Comenius, Paul Helminger, Mayor of Luxembourg, Grand Duchy of Luxembourg, Yona Yahav, Mayor of Haifa, Israel, Zdeněk Tůma, City of Prague Representative, Jiří Běhounek, Governor of the Vysočina Region, and Milan Ftáčnik, Lord Mayor of Bratislava

A special thanks to Ifield Computer Consultancy and Laic Aktiengesellschaft for making this reportage possible

Comenius/ČNB event

IN COOPERATION WITH LEADERS MAGAZINE

Post-crisis Perspectives of Insurance, Pension Funds, Real Estate Financing and Other Financial Services Bank Ethics, Confidentiality and Private Banking in Contemporary Europe & World Increasing Role of Hi-Tech in the World Finances

Grigori A. Marchenko, Governor, National Bank of Kazakhstan and Kamilya Arstanbekova, Chairman of the Board, APF of Halyk Bank of Kazakhstan

European Banking & Financial Forum 2011 DAY 2: CZECH NATIONAL BANK (ČNB)

more photos and electronic version available on www.leadersmagazine.cz From left: Vladimír Jaroš, Partner, Wood and Co., Joe Giannamore, Managing Principal, AnaCap Financial Partners, Kamilya Arstanbekova, Chairman of the Board, APF of Halyk Bank of Kazakhstan, Karel Muzikář, President, Comenius, and Radim Passer, Chairman of the Board, Passerinvest Group

IN PARTNERSHIP WITH IFIELD COMPUTER CONSULTANCY AND LAIC AKTIENGESELLSCHAFT

A special thanks to Ifield Computer Consultancy and Laic Aktiengesellschaft for making this reportage possible

Comenius/ČNB event

Roman Cabálek, CEO, Microsoft Czech & Slovak Republic

Joe Giannamore, Managing Principal, AnaCap Financial Partners LLP

IN PARTNERSHIP WITH IFIELD COMPUTER CONSULTANCY AND LAIC AKTIENGESELLSCHAFT

Alexander Caviezel, EMEA Head of Treasury Services, JP Morgan

From left: Massimiliano Bordogna, Financial Director, Massinvest, Jörgen Hoolmé, Director, Department Head, Commerzbank International, Karel Muzikář, President, Comenius, Hegoumen Philip, Head of the Department of Macroeconomic Analysis, Accounting Chamber of the Russian Federation, Nicolas Fitaire, Director, Friedrich Wilhelm Raiffeisen Private Banking, and Alexander Caviezel, EMEA Head of Treasury Services, JP Morgan

IN COOPERATION WITH LEADERS MAGAZINE

Massimiliano Bordogna, Financial Director, Massinvest

Radim Passer, Chairman of the Board, Passerinvest Group

Radek Špicar, Director of External Affairs, Škoda Auto

Comenius/ČNB event

Kamilya Arstanbekova, Chairman of the Board, APF of Halyk Bank of Kazakhstan

Hegoumen Philip, Head of the Department of Macroeconomic Analysis, Accounting Chamber of the Russian Federation

Martin Kolouch, Director and Member of the Board, Raiffeisenbank

Petr Kamínek, Business Development Manager, NESS Czech

Vladimír Jaroš, Partner, Wood and Co.

Comenius/ČNB event

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Should EU Businesses and Investments Move Further East and South?

Oil, Gas and Energy Security for the EU

Karel Muzikář, President, Comenius

European Banking & Financial Forum 2011 DAY 3: LORD MAYOR´S RESIDENCE

IN PARTNERSHIP WITH IFIELD COMPUTER CONSULTANCY AND LAIC AKTIENGESELLSCHAFT

Lord Mayor´s Residence

IN COOPERATION WITH LEADERS MAGAZINE

Andranik Norekyan, Board Member, Central Bank of the Republic of Armenia

Comenius/ČNB event

Vladislav Chernikov, President, Holding Credit Bank, Russia

Ivan Ermakov, Head Specialist, Gazprom Export

Erik Best, Publisher, The Fleet Sheet

Viktor Okunev, Regional Manager for Eastern Europe, Rossiya

From left: Hegoumen Philip, Head of the Department of Macroeconomic Analysis, Accounting Chamber of the Russian Federation, Sergyi Archimandrit, Orthodox Church, and Alexander Akulinin, Project Manager, Russia and CIS Operation, Comenius

From left: Jiří Fárek, Professor, Technical University Liberec, František Pavelka, Head of Department, Department of Banking and Insurance, Bankovní Institut, and Jan Šolta, Assistant Professor, Department of Economic and Social Sciences, Bankovní Institut

Karel Muzikář, President, Comenius and H.E. Renilde Loeckx, Ambassador of Belgium

Lunch

more photos and electronic version available on www.leadersmagazine.cz

IN PARTNERSHIP WITH IFIELD COMPUTER CONSULTANCY AND LAIC AKTIENGESELLSCHAFT

Comenius/ČNB event

Ladislav Dráb, CEO, CE Group

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Filip Thon, President of RWE in Poland, RWE Polska

Marián Švrček, Vice President, A.T. Kearney

Eduard Pálka, CE Group and H.E. Renilde Loeckx, Ambassador of Belgium

Bohuslav Svoboda, Lord Mayor of the City of Prague

From left: Benke Aikell, your Publisher and Erik Best, Publisher, The Fleet Sheet

Jakub Strnad, Chairman of the Board, Allianz Pojišťovna

Mevlut Cavusoglu, President of the Parliamentary Assembly of the Council of Europe

HEART OR DOUGH There is a lot of talk about the “social responsibility” of companies. As part of their social responsibility, many firms regularly donate to charities and support the needy who are, even today, treated rather harshly by the state. Such firms´ behaviour surely deserves our praise, despite the fact that it is often used for promotional purposes on television, with ladies and gentlemen handing out enormous cheques. Of course, this can be forgiven, just like the fact that the money comes from profits, which in turn come from those who tend to spend money, that is, from us, the customers.

Someone once said that the size of a gift is not measured by how much you give, but by how much you are left with. This is particularly visible during the times of an economic crisis, when hen busin sines esse sess ar aree no nott do doin ingg as wel elll. Let et´s honour and praise those businesses which did not restrict their contributions, or even halt them at this critical time. The number of those who need their assistance is greater in times of crises.

The fundamental change in one´s approach, however, occurs when a donation is accompanied not only by good deeds, but by the heart as well. I’ve recognized this myself, although I tend to give to charities relatively often.

I began to realize the significance of the heart when playing tennis with people who use wheelchairs. In tennis, wheelchair users are bound by the same rules that we are; the only difference is that the ball is allowed to hit the ground twice. When I saw the efforts of my disabled friends, and what sport means to them in their lives with boundaries, I realized how insignificant my own problems were. Wheelchair users, however, fare a bit better than many others, for example those who suffer from mental handicaps. In cases of mental disability, there is a smaller interest from charity groups, as only a few people are willing to talk to them or to interact with them.

But at home I have some wonderful paintings by one handicapped girl from Manětín, with great poetry that offers a different world view. I also remember the shining eyes and the smiles of the handicapped that took part in an auction in the Spanish Hall at the Prague Castl tle. Th Thankks to the h broaddcastt program D-Day, I met with Romana, who was a leukemia patient for many long months in the Motol hospital, at a time when ninety percent of

IN PARTNERSHIP WITH LEADERS MAGAZINE

children were dying there. While in the hospital, she dreamed up her planet “Bimbule”, and plush creatures called “Cheapskates” who inhabited it. As a result of our investment, there are now other children who can enjoy these stories, books, television programs and school books during the months they spend in the hospital, while cut off from the normal world, and now with more hopeful prospects for recovery.

What I want to say in this article is simple – involve your heart when giving help. The benefit from this will go not only to those who need

the help, but above all, to you as well. The understanding you give is perhaps more important than your money. Do so because you want to, not just to benefit your company or your reputation, and your life and its meaning will be certainly enriched.

By Ivan Pilný President of Tuesday Business Network Former Chairman of Czech Telecom český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

Photo: Vladimír Weiss

Leaders Magazine III/2 I 011

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senate

From left: Milan Štěch, President of the Senate, Parliament of the CR with his wife and Pál Schmitt, President of Hungary with his wife

MEETINGS

IN COOPERATION WITH LEADERS MAGAZINE

Senate President Milan Štěch held a luncheon in honour of the President of the Republic of Hungary Pál Schmitt.

President of the Senate Meets President of the Republic of Hungary and President of the Republic of Italy

From left: Milan Štěch, President of the Senate, Parliament of the CR and Giorgio Napolitano, President of Italy

more photos and electronic version available on www.leadersmagazine.cz

The President of the Senate of the Czech Parliament, Mr. Milan Štěch, met with the President of the Italian Republic, Mr. Giorgio Napolitano in the Lichtenstein Palace on Wednesday the 13th of April. The meeting was also attended by Vice-President of the Senate of the Czech Parliament, Mrs. A. Palečková; Vice-President of the Senate of the Czech Parliament, Mr. Pithart; Chairman of the Committee on Foreign Affairs, Defence and Security of the Senate of the Czech Parliament, Mr. J. Regec; Chairman of the Committee on EU Affairs of the Senate of the Czech Parliament, Mr. L. Sefzig; and member of the Constitutional Law Committee of the Czech Parliament and President of the senate club of TOP 09 and Mayors, Mrs. S. Paukrtová.

On April 18, 2011, Senate President Milan Štěch congratulated Professor Jan Sokol on his 75th birthday in Wallenstein Palace. Mr. Štěch wished the professor good health and a lot of enthusiasm, so that he may continue in his contribution to the development of the Czech Republic as a democratic and prosperous country. Prof. Sokol attended the conference “Justice in a Legal State” which was organised under the auspices of the Senate President Milan Štěch, by the Vice-President of the Senate Petr Pithart and President of the Supreme Court of the Czech Republic Iva Brožová.

The conference was held in the Hall of the Wallenstein Palace, where Prof. Sokol gave a lecture on Morality and Law.

senate

IN COOPERATION WITH LEADERS MAGAZINE

Justice in a Legal State

From left: Milan Štěch, President of the Senate, Parliament of the CR and Prof. Jan Sokol

Milan Štěch, President of the Senate, Parliament of the CR

Petr Pithart, Vice President of the Senate Parliament of the CR

Jiří Přibáň, Professor at the Faculty of Law, Charles University and the Cardiff Law School at the University of Wales

Iva Brožová, President of the Supreme Court of the Czech Republic

An interview with Michal Stark, Czech paralympic cyclist

STRENGTH OF WILL Michal Stark is a Czech multi-medal holder from a number of cycling competitions and championships.

He represented the Czech Reppublic at both the summer and winter Paralympics. He began his professional sports career as a down-hill skier. Later he switched to cycling. Michal Stark is a World Champion in time trial and a multiple European Champion. He is a member of the Dukla Praha club.

Can one speak of handicapped sportsmen and women as professional sportspeople, in regards to their “professional careers”?

Sure we can! And in this sense, paralympic cycling is at the top of the peloton, so to speak.

As one of few paralympic sports, cycling falls under the umbrella of the International Cycling Union – a sports union of “unaffected sportspeople”. To reach and succeed at the top 2009 UCI Para-cycling Track World Championships, Manchester, Great Britain

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Leaders Magazine III/2011

requires long, hard work, and no athlete can succeed without workingg as hard as the other professional sportsmen. I am personally grateful that I can currently focus only on cycling, because otherwise I could not keep up with the best of my competitors.

Furthermore, I could not achieve good results without the excellent national team led by the coach Viktor Zapletal, nor without the

association “Ano, můžeš”, and my manager Pavel Zaach c . No pro rofe fess ssio iona nall sp spor orts tsma mann or woman can compete without support from their family. I am not an exception to this, and I owe much to my three girls – my wife Jana and my daughters Johana and Beáta.

You wear Dukla Praha’s jersey. Dukla is our prominent sporting club with many Olympic medallists and World Champions. How many handicapped sportspeople succeed in getting under the umbrella of a club of this nurture, which includes so many of our top professional athletes?

I reckon that I am the only handicapped sportsman wearing Dukla’s jersey. I am very proud of this fact, and I feel very much obliged to all of the people in the club.

How difficult and complicated is it to approach sponsors when you cannot offer them comparable visibility of their logos and brands, as compared to ordinary sport professionals such as the cyclist Kulhavý, or Štybar for instance.

Regardless of the fact that I belong among the most renowned paralympic sportsmen in the Czech Republic, I cannot compete with sportsmen such as Štybar, or Jaroslav Kulhavý as far as their media presence and coverage. So I try to take a different approach with my supporting association of the “Ano tým”. We keep closer contact with my partners. We offer them more pers pe rson onal al eng ngag agem ementt att meetitings, workkshhops and other events.

An outsider can easily get the wrong impression that cycling is not a financially demanding sport. On the contrary, on the competitive level, cycling is a rather expe p nsive spport discippline.

I need three bicycles at least – a special road bicycle, a pursuit race bicycle, and another one for time trial events. You can add to this an overseas training camp in the winter, regeneration, physiotherapy, and the necessary need to partiticipat i te att eventt s allll over the h world, in order to collect points.

It has not always been just cycling for you. You also used to compete in down-hill

skiing, and you participated as a skier at the Lillehammer Paralympics. Why did you eventually switch to cycling?

Actually, I came to cycling accidently. During our summer skiing practice we used to cycle as an alternative training exercise. I was invited in 1990 19 90 to take part in the Austrian Cycling Cup. On the first day I had to scratch the race when my gear unit broke. But once I fixed the bike, I won on the second day! Based on this experience, I began to include more and more cycling alon al ongg wi with th dow ownh nhililll sk skiiiing ng. I tr trie iedd to com ompe pete te in both sports for a few seasons. But the physical burden was too much for my body, and it used to be a funny situation during the summer months, when I would arrive from training camp at a glacier, and then have to hurry to a cycling event.

Thee deciision Th i to swititchh came after f the Paralympics in Lillehammer. I had to decide which sport should be my number one. At that time I was achieving better results in cycling, and so the choice was easy then.

During that time you shared the practice and training seasons with our top athletes. Is it common for handicapped sportspeople to train with the national team of non-handicapped athletes?

My approach to many of the training practices was a pioneering one. The experience that I gained with the Solido sport team, which gathered top junior national team athletes and new hopes for our downhill skiing, was outstanding.

I passed the full glacier practice, as well as training loads in Špindlerův Mlýn, next to Tomáš Kraus (the World Champion in Ski-cross) and the Zakouřils siblings, and under the supervision of coach Borek Murdoch. I learned that I could handle equal training loads without any favour.

This was a big help to me psychologically, and I began to believe in myself much more.

World Championships 2011, Italy

Photos: Věra Vodičková

Yes, in the early 90’s my approach was pion pi onee eeriring ng,, bu butt mo more re and more paralympic sportspeople gradually learned the benefits of such training.

One would say that you have been tempted to compare yourself to sportsmen who have no handicap in general.

For instance, you are a regular participant in the Central Bohemia cycling league...

I try to participate in professional sport with everything that comes along with it. Unfortunately, my handicap does not allow me to compare with the top cyclist who has no handicap. However, I am able to compete with amateur athletes. Delivering a top performance, I can keep up with them at some of the Czech Cycling Cup races. Even though I cannot aspire to the podium positions, it gives me excellent practice. Competing with sportsmen with no handicap helps me to improve and constantly move forward.

I could hardly keep up with the best paralympic cyclist without this.

Your professional career was interrupted several times due to disputes that you’ve had with sport officials. Is sport for the handicapped also about politics?

This was not as much about disputes with sport officials. It was rather about different opinions about how paralympic sport should work. Luckily, I got over this unpleasant anabasis, and I can fully concentrate on competing again. I intend to leave any future contentions to respponsible officials fr from o now on. I los ostt tw twoo seasons thanks to my attitude towards many things, when I was expelled from the national team, and this experience was enough for me.

You have achieved great successes in cycling and you have won many medals. Do you see any differences among the various competitions? Are there any races that are more special for you than other races?

I am a body and soul competitor. I cannot think of participating in sport without comp -tingg in it. This is the reaso pe son th that at I stitillll tra rain in so hard, in order to be able to go into a race and compete with the others. I take part in around 60 races during the season, and I look forward to each one of them. I enjoy a race of regional

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importance the same as any other. I certainly look forward to some more than others, because the profile suits me better, or because of the good memories I have. One of them, for instance, is the stage race around Bilbao, or the European Cup in the French town of Corréze.

Among the successes that I am most proud of is the World Champion title in time trial, the two titles of European Champion, and the bronze medal from the Paralympics in Sydney. The victory I consider most significant, concerning the physical demands, is my victory in the stage race Tour de Basque, which takes place in French and Spanish Basque.

Where does your motivation come from after so many years of your professional career, and so many victories?

First of all, I still enjoy cycling at the professional level so much that I cannot imagine my life without it. So much depends on the state of my body, and how long my body will let me compete with the top athletes. But both still work exce ex cellllen entltlyy.

And to be honest, I would like to finish my career with a big success at the London Paralympics in 2012. There is only one gold medal that I am missing, and that’s the paralyympic gold...

By Filip Hubáček česk če skýý př přek ekla ladd na nale lezn znet etee v el elek ektr tron onic ické ké ver erzi zi magazínu na www.leadersmagazine.cz

Leaders Magazine i III/201 I 1

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interview

David Ondráčka Head of Transparency International in the Czech Republic Photo: Vladimír Weiss

A talk with David Ondráčka, Head of Transparency International in the Czech Republic

BUSINESS NEEDS to Put More Pressure on Politicians

In 1993, several leading representatives of international organizations and companies founded a non-governmental organization in Berlin, Transparency International (TI). The reason was obvious. All of the organizations had undergone a firsthand shocking experience of corruption. This experience, much like the increasing rise in corruption at the global level, has resulted in the formation of an organization with branches in 100 countries worldwide. What is the biggest p oblem of Czech pol pr olititic ical al cor orru rupt ptio ion? n? Wha hatt is is,, in thi hiss re resp spec ectt, the res espo pons nsee of Cze zech ch bus usin ines esse ses? s? We ta talk lked ed to th thee He Head ad of th thee Cz Czec echh br bran anch ch of th the TI TI, David Ondráčka, about trends, changes in society and possible solutions. David Ondráčka studied political economy at the Central European University in Budapest, European Studies in Olomouc, and political science in Prague. He has experience working in public administration and regularly gives lectures at Czech Universities. David Ondráčka has been involved in cooperation with the TI in the Czech Republic since 2001, and has worked as the Head of the TI in the Czech Republic since January 2008. He specializes in issues of political corruption, public tenders and lobbying. g David Ondráčka is married.

Corruption is perhaps the most recurring theme in Czech society. It seems that all have declared a fight against it, but the desired changes will not happen in the foreseeable future.

I can feel that something was set into motion over the past few years, after all that has happened in our society. Chiefly, businesses have begun to realize their responsibility. Businesses now understand that it is in their own interests for the business environment to be more equal. Particular activities, however, remain inconsistent. Journalists put pressure and open cases, while NGOs produce analysis and research.

Unfortunately, it seems that the Czech politicians either learned how to deal with this, or that they are completely resistant to this pressure. If, however, this pressure was accompanied by the concentrated pressure of businesses, which have the means, the money and knowledge of this environment, they could fundamentally contribute to a change. change And And, in addition addition, the question is – has it finally come time to legitimize the Czech oligarchs.

Could you clarify this?

I largely mean the entrepreneurs who became rich in the beginning of the 90’s of the last century, often not under entirely obvious privatization proceedings.

I believe that these entrepreneurs take responsibility for the state of o our soc ocie iety ty.. Th Thei eirr ac actition onss sh shou ould ld not be solely “empty sponsorship”, but rather an acceptance of responsibility for the cultivation of democracy, independent initiatives and the media.

Is Czech society ready for this?

The richest entrepreneurs in our country could, theoretically, invest their money elsewhere and leave the Czech Republic. Yet, at least the highest class of businesses should return something to society. It should invest in things such as a change of political culture, and thus contribute to a better functioning society. If the economic elite in our country begins to behave this way, it can start to force the political elite to change its behaviour as well. Our problem is that the po p litica call el elititee is com ompl p et pl etel elyy “w wilild” d . Th Ther eref efor oree, I see the business pressure on politicians as a chance for

political cultivation, where particular political parties open up and begin generating people that can withstand the pressure of corruption. The time has come, after 21 years of democracy in our country, to do just that.

So what is the biggest problem of Czech political corruption?

A major issue is certainly the internal functioning of political parties. At present, the political parties have a very narrow group of managers numbering about 100 to 200 people, and all of them hold public office, be it at the state, regional or municipal level. This “elite” then creates a strong stopper for any influx of new members. I feel very strongly that many people who enter a political party, even with positive ideas and ideals, find a great disillusionment within a year or two, and simply leave the party. A particular party is not interested in them or their knowledge at all.

The result is that the parties are still empty and just “recycle” the same people.

Do you have any research at your disposal, in this respect?

We have some comparisons; nonetheless conducting serious research is very difficult. We can perhaps not even find out exactly how many members a political party in the Czech Republic actually has. These fifigu gure ress ar aree so sole lely ly the pro rope pert rtyy of the giv iven en pol olititic ical al party. But how can we find out if what they tell us is really true? In a way, courts are deciding that political party membership is a personal thing, and that no one has a right to inquire. Such is the prevalent decision judgement.

Greater transparency of the funding of political parties still remains a huge problem as well.

Well, here we come to the business environment again. The funding of political parties has been a huge issue in our society for a long time. However, I wish that before an election, companies would quite clearly declare which po p litical pa partt y th they ey wililll su supp ppor ort.t. In ad addi dition, this information is obviously useful for voters as wellll. De we Decl clar cl arin ar ingg su in supp ppor pp ortt af or afte terr th te thee el elec ectitition ec on is to tooo la late te. te This model works very well abroad. Certainly, politics

cannot exist without money. A fact that a sponsor supports a political party does not mean the sponsor takes responsibility for that party.

So, in this respect, shouldn’t we fund political parties solely from the state budget?

I think it is rather unrealistic. A model of doublesource funding is certainly more feasible in our country. We are unfortunately still missing openness. As the case at the Ministry of Environment showed, “underhand fundraising” is a big problem, which becomes a key factor for the rise of a wing of a party, or a particular politician. This then opens the door for corruption and manipulation of subsidies, public procurement, etc. A given political faction just has to get money to ascend a hierarchy. The economic elite should therefore claim its responsibility for a given state, and begin to do something about it actively.

Besides, there is a constant tendency to expect that anything will change from within, within i.e., i e from the prose prosecution, the police, and the Supreme Audit Office. Yet, the Czech Republic is a country fully integrated into intternatitionall trade structures. There are much harsher penalties to prevent corruption in international trade and in international relations.

What is the impact on the Czech Republic, in this respect?

Here He re in th thee Cz Czec echh Re Reppubl bliic, we allways pretend t d th that it does not concern us. Yet, international pressure might have an entirely clear practical impact. If a Czech entrepreneur does business e.g. with a British firm, and would be attached to any form of corrupt practices, then they may be called by the British authorities, and will have to face subsequent consequences in Britain, although Czech entrepreneurs do not formally fall into this jurisdiction. But then we cannot pretend that the matter does not concern us. In this I see a great hope, because this global trend is unstoppable.

By Pavlína Holancová český k ý přř ekl kladd nalleznete v elektronické verzi magazínu na www.leadersmagazine.cz

Leaders Magazine i III/201 I 1

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business event

IN COOPERATION WITH LEADERS MAGAZINE

From left: Muriel Anton, Manager of the Year 2009, Ing. Senta Čermáková, Manager of the Year 2010 in her speech, and doc. Ing. Jiří Cienciala, CSc., Manager of the Year 2008

18 Manager of the Year th

ANNUAL COMPETITION – THE CELEBRATION OF SUCCESSFUL MANAGERS AND COMPANIES Senta Čermáková of Hewlett Packard Czech Republic becomes Manager of the Year 2010. She occupies the post of Worldwide Media Analyst TS and Industries Director. The Manager of the Year award has been held under the auspices of the Czech Prime Minister Petr Nečas. “The winners, as well as all the good managers, without whom our economy could not get by, all deserve honour and glory,” said the Minister of Industry and Trade Martin Kocourek during the awards announcement.

By selecting Senta Čermáková, the Manager of the Year award has witnessed an important break in its past. “For the first time in the Manager of the Year´s history, a female contestant has achieved the highest point on the managerial scale,” explained Pavel Kafka. And it is, according to Pavel Kafka, a further demonstration of the fact that the Czech Republic is becoming much closer to Europe and the world. Senta Čermáková has been selected out of 72 finalists, and her symbolic crowning has taken place at the gala event at the Prague Žofín palace. Together with her, there has been an announcement of 23 award winning Industry Managers, and an announcement of winners within the Excellent Manager of a Small Firm, Excellent Manager of a Medium Firm, Young Managerial Talent and Top Ten categories.

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more photos and electronic version available on www.leadersmagazine.cz

The audience

From left: Ing. Stanislav Sýkora, General Manager, Asseco Solutions, a.s., Ing. Josef Novák, General Manager, VEBA, textilní závody a.s., Ing. Václav Dědina, ZS Dublovice a.s., Ing. František Kulovaný, Jr., MBA, Director, BAEST Machines & Structures, a.s., and Ing. Jaroslav Míl, MBA, President, Confederation of Industry of the CR

From left: Ing. Jaroslav Míl, MBA, President, Confederation of Industry of the CR, Ing. Martin Kocourek, Minister of Industry and Trade, Ing. Pavel Kafka, President, ČMA and Chairman of National Comitee of Manager of the Year 2010, and Marcela Augustová, Moderator

From right: Prof. Ing. Jaroslav A. Jirásek, DrSc. receives award from Jan Wiesner, Chairman of Coordinating Council, KZPS ČR

Musical performance during the Ceremony

Top 10 with partners and promoters of Manager of the Year 2010. From left: Ing. Dana Ficlová, Director of Albion Hotel, TOP HOTELS GROUP a.s., Ing. Antonín Jaroš, Director, INCO Engineering s.r.o., Ing. Emil Beber, Chairman, KOVOBEL, výrobní družstvo, Ing. František Kulovaný, Jr., MBA, Director, BAEST Machines & Structures, a.s., Mgr. Dana Jurásková, Ph.D., MBA, Director, Všeobecná fakultní nemocnice v Praze, Jiří Urbanec, MBA, CEO, Teva Czech Industries s.r.o., Prof.

MUDr. Tomáš Zima,DrSc., MBA, Dean, 1. lékařská fakulta Univerzita Karlova, Ing. Pavel Pilát, CEO, Metrostav a.s., Ing. Petr Cingr, AGROFERT HOLDING, a.s., Doc. RNDr. Anna Putnová, Ph.D., MBA, Chamber of Deputies, Parliament of the CR and Member of the National Committee of the Manager of the Year 2010, JUDr. Ing. Robert Szurman, Chairman, Quality Council of the CR and Member of the National Committee, and Ing. Bořivoj Frýbert, Honorary Chairman of ČMA and Member of the National Committee.

Meeting of the Manager of the Year Club

From left: Jan Wiesner, Chairman of Coordinating Council, KZPS ČR, Ing. Jaroslav Míl, MBA, President, Confederation of Industry of the CR, Ing. Petr Ryska, Ph.D, Obchodní tiskárny, a.s., Ing. Martin Kocourek, Minister of Industry and Trade, and Ing. Pavel Kafka, President, ČMA and Chairman of National Comitee of Manager of the Year 2010

Meeting of the Manager of the Year Club

Group photo of partners, promoters together with Manager of the Year 2010. From left: Ing. Jaroslav Míl, MBA, President, Confederation of Industry of the CR, Jan Wiesner, Chairman of Coordinating Council, KZPS ČR, Ing. Karel Mourek, Česká spořitelna, a.s., Muriel Anton, CEO, Vodafone, Ing. Senta Čermáková, Manager of the Year 2010, J. Cienciala, Ing. Pavel Kafka, President, ČMA and Chairman of National Comitee of Manager of the Year 2010, Mgr. Jan Holásek, LL.M., Law Office Havel, Holásek & Partners, Libor Witassek, CMC Graduate School of Business,o.p.s., and Renáta Hybká, Import VOLKSWAGEN Group, s.r.o. division AUDI

18TH MANAGER OF THE YEAR TOP 10 ING. SENTA ČERMÁKOVÁ, HEWLETT-PACKARD S.R.O. ING. PAVEL PILÁT, METROSTAV A.S. ING. LAURENT BARRIEUX, DALKIA ČESKÁ REPUBLIKA A.S. PROF. MUDR.TOMÁŠ ZIMA, DRSC., MBA, UNIVERZITA KARLOVA, 1. LÉKAŘSKÁ FAKULTA JIŘÍ URBANEC, MBA, TEVA CZECH INDUSTRIES S.R.O. MGR. DANA JURÁSKOVÁ, PH.D., MBA, VŠEOBECNÁ FAKULTNÍ NEMOCNICE V PRAZE ING. FRANTIŠEK KULOVANÝ, JR., MBA, BAEST MACHINES & STRUCTURES, A.S. ING. EMIL BEBER, KOVOBEL, VÝROBNÍ DRUŽSTVO ING. ANTONÍN JAROŠ, INCO ENGINEERING S.R.O. ING. DANA FICLOVÁ, TOP HOTELS GROUP A.S.

MANAGERS OF SECTORS: , ING. VÁCLAV DĚDINA, ZS DUBLOVICE A.S. FOOD PRODUCTION, ING. JIŘÍ MILEK, ÚSOVSKO, A.S.

PRODUCTION OF TECHNICAL AND INDUSTRIAL TEXTILES, ING. PETR MORAVEC, SILK & PROGRESS, SPOL. S R. O. PRODUCTION AND SALES OF TEXTILE AND CLOTHES, ING. LADISLAV BLAŽEK, BLAŽEK PRAHA A.S. PRODUCTION AND SALES OF CONSUMER GOODS, ING. PETR RYSKA, PH.D, OBCHODNÍ TISKÁRNY, AKCIOVÁ SPOLEČNOST CHEMICAL AND PHARMACEUTICAL INDUSTRY, JIŘÍ URBANEC, MBA, TEVA CZECH INDUSTRIES S.R.O. BASIC METALS AND FABRICATED METAL PRODUCT MANUFACTURING, ING. EMIL BEBER, KOVOBEL, VÝROBNÍ DRUŽSTVO MACHINERY AND EQUIPMENT MANUFACTURING, ING. ANTONÍN JAROŠ, INCO ENGINEERING S.R.O. TOOLS AND EQUIPMENT MANUFACTURING, RNDR. PAVEL HOLUBÁŘ, SHM, S.R.O. EQUIPMENT SALE AND MANUFACTURING, LUBOMÍR DVOŘÁK, DVOŘÁK - SVAHOVÉ SEKAČKY S.R.O. ELECRICITY, HEAT AND TECHNICAL EQUIPMENT MANUFACTURING, ING. LAURENT BARRIEUX, DALKIA ČESKÁ REPUBLIKA A.S.,

CONSTRUCTION AND PRODUCTION OF CONSTRUCTION MATERIALS, ING. PAVEL PILÁT, METROSTAV A.S. ACCOMODATION, HOSPITALITY AND CATERING, JOSEF SVOBODA, ARAMARK, S.R.O. TRANSPORT SERVICES AND LOGISTICS, ING. PETR ŽALUDA, ČESKÉ DRÁHY, A.S. SECURITY SERVICES, MICHAL NEŠETŘIL, SECURITAS ČR S.R.O. REAL ESTATE DEVELOPMENT AND LEASING, REMON LEONARD VOS, CTP INVEST, SPOL. S R.O. INFORMATION AND COMMUNICATION TECHNOLOGY, ING. SENTA ČERMÁKOVÁ, HEWLETT-PACKARD S.R.O. RESEARCH AND DEVELOPMENT SERVICES, ING. PETR SLÁČALA, MBA, EGP INVEST, SPOL. S R.O. UNIVERSITY AND MANAGEMENT EDUCATION, PROF. MUDR.TOMÁŠ ZIMA, DRSC., MBA, UNIVERZITA KARLOVA, 1. LÉKAŘSKÁ FAKULTA EDUCATION AND TRAINING, MGR. BC. LUDVÍK VOŽEH, MPA, STŘEDNÍ ŠKOLA, ZŠ A MŠ SPECIÁLNÍ, RAKOVNÍK

HEALTH AND SOCIAL CARE, MGR. DANA JURÁSKOVÁ, PH.D., MBA, VŠEOBECNÁ FAKULTNÍ NEMOCNICE V PRAZE BUSINESS SERVICES, ING. TOMÁŠ LUKEŠ, ASOCIACE ČESKÝCH NÁBYTKÁŘŮ PUBLIC SERVICES, ING. MARCELA ČESÁKOVÁ, MĚSTO NOVÝ BYDŽOV

YOUNG MANAGERIAL TALENT, EXCELLENT MANAGER OF SMALL AND MEDIUM-SIZED BUSINESSES, AND THE HALL OF FAME: YOUNG MANAGERIAL TALENT, ING. PETR RYSKA, PH.D, OBCHODNÍ TISKÁRNY, AKCIOVÁ SPOLEČNOST EXCELLENT MANAGER OF SMALL SIZE BUSINES, ING. VÁCLAV DĚDINA, ZS DUBLOVICE A.S. EXCELLENT MANAGER OF MEDIUM SIZE BUSINES, ING. FRANTIŠEK KULOVANÝ, JR., MBA, BAEST MACHINES & STRUCTURES, A.S. HALL OF FAME, PROF. ING. JAROSLAV A. JIRÁSEK, DRSC.

Photos: Top Hotels Group archive

Ing. Vladimír Dohnal, Chairman of the Board, TOP HOTELS GROUP a.s.

We’ve met with the chairman of the board of directors and owner of TOP HOTELS GROUP a.s. at Žofín during the gala ceremony of the Manager of the Year.

It is customary that this company has a representative at the ceremony every year. This year it has been General Manager of Hotel Albion s.r.o., Mrs. Dana Ficlová. She successfully finished among the TOP10!

From left: Vladimír Šmicer, Ing. Radek Dohnal, General Manager, TOP HOTEL Praha, and Pavel Nedvěd As a member of the board of directors of the Chamber of Commerce of the Czech Republic, and chairman of its tourism department, I am aware that the promotion of the Czech Republic, especially Prague, hasn’t been enough. Everybody imagines that the tourism industry is like a money machine, which is a blunder.

Worldwide each 12th employed person works in the tourism industry, and the industry employs 40 % of Prague’s inhabitants. It is reprehensible how unprized the tourism industry is. Maybe this is because of the different commissions in the Municipal Council, or in The Ministery for Regional Development of the Czech Republic, but mostly it is our own fault. During the representative elections we act similarly as we do during the parliamentary elections – irresponsibly.”

Now, for a Little Business FOR ANY WORK YOU DO, YOU NEED THREE “FAYS”: • You need to be able to reach for goals • You need to have a virtuous living philosophy and proper visage • You need to have a stroke of luck

Ing. Dana Ficlová, General Manager, Albion Hotel & Congress Centre The chairman of the board of directors says: “Mrs. Ficlová has been working in our company since 1999. During this time she successfully completed her university studies, and it has been six years since she started to manage Hotel Albion, which is by size the 6th–7th largest hotel in the Czech Republic (290 rooms, 640 conference seats).

The general manager of Top Hotel Praha, Mr. Radek Dohnal, remained away during the gala ceremony due to his business trip to Italy. To every successful business meeting appertains abreaction. This time Czech participants played golf against Italians.

Soccer players Pavel Nedvěd, Vladimír Šmicer and others were supporting the Czech team. “In this way we can promote not only our hotel but Prague as well, and the Czech Republic as a whole,” said the chairman of the board of directors, Mr. Vladimír Dohnal.

My advantage is that I am an architect, and I didn’t have to pay dear money for different projects. At first I spent most of the weekends at the hotel observing guests. According to those observations, I’ve designed the interiors of the hotel and the congress halls, which were completed in synergy of price and efficiency. This is the answer as to how it’s been possible to build for 1.5 billion CZK without requesting a credit.

In Hotel Albion I’ve been repeating some of my designs, which were regarded in Top Hotel Praha

as successful. I am mostly proud that Hotel Albion was in the catalogue “The Best Real Estate 2007” and was listed as one of the best 33 buildings in the Czech Republic, and me being the author of the rebuilding.

The united “dots” of Czech Trade, Czech Invest, CzechTourism and Czech Centres would help to promote the Czech Republic, not only within the tourism industry, but also worldwide. This I am working on now.

Japanese Garden at TOP HOTEL Praha

interview

Laurent Barrieux, CEO of Dalkia ฤ eskรก republika Photo: Archive

An interview with Laurent Barrieux, CEO of Dalkia Česká republika

OUR OBJECTIVE IS TO BE AS CLOSE TO OUR CUSTOMERS AS POSSIBLE

Laurent Barrieux, Country Manager of Dalkia Group in the Czech Republic, was born in the French town of Thionville on the 28th of November,, 1958. He acqquired hi hiss en engi gine neer erin ingg de degr gree ee at th thee Na Natition onal al Ins nstititu tute te of Ap Appl plie iedd Sc Scie ienc nces es (IN INSA SA – Ins nstititu tutt na natition onal al des sciences appliquées) in Lyon, where he majored in construction and mechanics. He started his professional career in the steel inddust in stry, with ith the Arcelor l Group (19 1980 80–198 1987). He joined Dalkia in Nantes in 1987 as head of industrial developpment. Five years later he returned to Lyon, he Lyon where he progressively held the positions of director of the industrial and multi-technical multi technical centre and director of district heating. In 2005 he was appointed Vice-Director of the Établissement Dalkia Centre Méditerrannée (Dalkia central France, the Mediterranean). In February of 2006, he accepted the position as Country Manager of Dalkia Group in the Czech Republic.

Laurent Barrieux is married and has four daughters. His greatest hobby is running marathon races – he has run seven successfully completed marathon races in various major cities of the world.

Recently you placed 3rd in the TOP 10 of the very prestigious competition “the Manager of the Year 2010”. How do you feel about this?

“I was very pleased by receiving third place.

I regard it as an appreciation of the successes that Dalkia in the Czech Republic has achieved in the last few years. Without the support and co-operation of all of our employees, I would never have received this award. It is not mine, it is the Czech Dalkia´s Group award, as II´m award m just a pilot, pilot leading the company. company ” Dalkia has experienced many great changes under your management. What was the most difficult decision you have had to carry out since you took up your office in Dalkia?

“On a daily basis I have to carry out a lot of unpopular decisions and changes. The most difficult daily decision is to lead the company the way I imagine its future to be for the next 5 or 10 years, without knowing all of the trends to come (prices of commodities – such as coal and gas; changes in the environment (CO2); fiscal rules; or the behaviour of customers). Hopefully, being a part of the Veolia Environnement Group gives me a lot of possibilities to share my views and to exchange ideas.”

Dalkia has established a strategic partnership with ČEZ. How is this significant for your clients?

“Last year, ČEZ became a minority shareholder in Dalkia Česká republika when it acquired a 15% equi eq uity ty int nter eres estt in our com ompa pany ny, an andd al also so an 85 85% % equity interest in our subsidiary Dalkia Ústí nad Labem. Thus, co-operation between the Dalkia group and the ČEZ group, which is a strong strategic partner for us, was launched on the Czech energy

market. This transaction marks a major step towards the further development of Dalkia in the Czech Republic, and brings a number of opportunities for the future. Our objective is to continue to be as close to our customers as possible and provide them with services of the highest possible quality, achieve energy savings, and produce environmentallyfriendly heat and electricity.”

Are you planning any new acquisitions as well?

“Regarding Regarding acquisitions acquisitions, last year’s year s acquisition of NWR Energy was the key for us. This company, which we renamedd Dalki lkia Industry CZ, is for us a global reference in the area of mineral extraction and the mining industry, because it is responsible for the supply and distribution of electricity and heat, hot water and compressed air production for coal mining in OKD mines. The acquisition of NWR Energy is an important step in pursuing our long-term strategy, which relies, among other things, on co-operation with majjor industrial clients. We co conttin inue ue to fo follllow ow the opportunities on the Czech energy market, and our group’s further development remains our objective.”

Among other decisions, Dalkia decided to make a massive investment into biomass. Why did you do this?

“For Dalkia, biomass constitutes a strateggic direction of development and a major alternative to fossil fuel fu elss. In ad addi ditition on to th thee po posi sititive ve eff ffec ects ts for the enviironment, green energy production also has a favourable influence on heat and electricity prices and local employment. Since 2003, we have burned more than 446,000 tonnes of biomass, thereby reducingg

CO2 emissions by more than 518,000 tonnes. This amount of biomass represents savings of almost 5,600 wagons of coal. Dalkia’s objective is to gradually increase the share of biomass in its fuel mix, and our investments are also geared towards this goal.

For example, last year we put a new, fully biomassfired bio-boiler into operation in the Krnov heat and power plant, which meets the heating demand of one fifth of Krnov, and also produces electricity.

We also have biomass firingg or co-firingg installat installations atioonss in Olomouc, Karviná, Frýdek-Místek, Kolín and Novýý Jičín and we will continue in our investment in biomass.”

One of Dalkia’s activities is aimed at assisting disadvantaged groups on the labour market. What was the main reason for launching this only within the labour market?

“Since the beginning of Dalkia’s operations in the Czech Republic, we have been interested in serious soci so cial al pro robl blem emss in the loc ocat atio ions ns of ou ourr op oper erat atio ions ns tha hatt have a high and stable level of unemployment, and the social exclusion of people who are difficult to employ.

That is why we established the Dalkia Česká republika Foundation, which aims at creating long-term jobs.

Since 2000, the Foundation has helped to create 1,540 long-term jobs, of which more than 230 are intended for peo eopl plee wi with th dis isab abililititie ies. s. T he gra rant ntss pr proo vided have totalled roughly 70 million CZK.”

By Pavlína Holancová český překlad naleznete v elektronické verzi maga g zínu na www.leadersmaggaz azin ine. e.cz cz

Leaders Magazine i III/201 I 1

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A talk with František Kulovaný, Board Member and the CEO of BAEST Machines & Structures

Big Goals Can Be Achieved ONLY WITH GREAT AMBITION AND PERSEVERANCE

Photo: Archive

Ing. František Kulovaný, jr. MBA graduated from the University of Economics in Prague (VŠE), completed his MBA studies at the Prague International Business School, and he also graduated from the Mediterranean Institute of Productivity (MIP) as well as the University of San Francisco. He began to work in the company BEST s.r.o. in 1996 as assistant of the CEO. In 2001, he became the managing director of BEST s.r.o. and since 2002 he also simultaneously held the position of the Head of Controlling of BAEST, a.s.. Presently, Mr. Kulovaný is the board member and the CEO of BAEST Machines & Strutures, a.s. (www.baest.cz). František Kulovaný is also a member of the scientific council of the VŠE, a member of the Committee of the Managerial Association (CMA), and also holds the office of the Executive Director of the Strategist Club. He has been a project manager of corporate projects in the area of HR and development of investment projects. BAEST received the award of Exporter of the Year 2000, 2001, 2003 and 2005, and furthermore the Company of the Region 2005, including placing within the CzechTOP 100 for innovation and flexibility in 2010.

František Kulovaný jr. was awarded in the competition “Manager of the Year” in 2010, where he won in the category of Outstanding Medium Business Manager of up to 250 employees and, at the same time, he received 7th place in the TOP 10 of the Manager of the Year, organized by the Czech Managerial Association and the Confederation of Industry of the Czech Republic.

What are the traditions of BAEST Machines & Structures, a.s.?

BAEST Machines & Structures is part of the BAEST Machinery Holding, and its history follows the original production engineering established in 1986. This includes today’s manufacturing technology program of the welded structures for engineering, construction, energy, environment and logistics, namely steel and stainless steel storage tanks and pressure vessels, mixing plants components, concrete plants plants, cranes and construction supplies, supplies or the subcontracting of higher investment units. BAEST disposes of quality and modern production facilities, an experienced team of experts, and owns necessary permissions in the fields of welding and assembly work, including certification DIN EN ISO 9001:2008. Half of our production programme is made up of our own products; the second part is aimed at custom manufacturing to mechanical production as a qualified subcontractor. Export to demanding markets in 20 countries is reaching almost 80 % of production.

You went through several positions at the present BAEST Holding. You are currently responsible for one of the holdings´ commercial production companies. What is your vision and strategy for the future? Has the current economic recession changed this vision in any way?

BAEST wants to be the leader within the production area of non-pressure, low and medium pressure vessels within Central Europe, and furthermore a qualified partner, contractor and subcontractor of significant contractors within the area of construction of industrial plants within the EU. The recession only strengthened and accelerated the planned changes in our production programme, improving workers’ skills, leading to investment in modern technology, and our own development or innovation of products or competences. Our relatively financially and economically conservative approach to managing our resources for the implementation of these projects has created relatively good conditions.

You have repeatedly won a prestigious place in the competition “Manager of the Year” in 2010, as the Outstanding Medium Business Manager of up to 250 employees, and at the same time you received 7th place

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Leaders Magazine III/2011

in the TOP 10 of the Manager of the Year. Are you aspiring to the Manager of the Year Award in 2011?

Receiving such an award, and in addition in two categories of the prestigious Manager of the Year competition, which was already held for the 18th Year, and which “awarded” many excellent managers in the past, is a great success and also a commitment for the future. I see this award as an appreciation of our entire corporate team, with which we implement our corporate strategy based on a continuous continuous, innovative and sustainable development development.

As I have already mentioned, we were repeatedly praised for our managerial skills. My father, František Kulovaný, received the Engineering Manager of 2002 award, followed by my award within the same category and branch in 2005, and some of our colleagues from top management were successful in the competition in 2007 as well. However, I do really appreciate the last award most. And if I answer your question from the beginning, big goals can be achieved only with great ambition and perseverance. In my 34 years I am still in the beginning of a managerial career, and I really like setting ambitious goals. Obviously, the biggest satisfaction is our thriving company with satisfied, productive and creative employees with an international scope.

In this context, do you find it necessary for a successful manager to have an extensive education in the field of his expertise, or is it rather a myth?

It’s certainly not a myth, though exceptions might exist.

I am, however, of the opinion that in today’s globalized and interdependent world, it is important to have quality management and comprehensive education, including language skills. Additionally, one needs to be able to bring his knowledge into reality, motivate all employees, and direct all at the creation of value, not only for business but for society.

Education and learning is endless and an everyday story. It is a necessary prerequisite, yet not merely a guarantee of quality.

Since the early 90’s, BAEST has undergone a vast restructuring. Can you mention what innovations are going to come next?

BAEST, BEST respectively, passed through several major stages in the last twenty years: the early 90’s struggle for

survival, privatization, creating management and an essential change in the production programme, financial and economic stabilization, dynamic development, and the current economic recession. Since the very beginning, we have built strategic management, and the principle of “variability of development” in particular, and included it into the main instruments of the implementation of our goals. Therefore, even iin goodd times i we still ill maintain i i not only l the h optimistic i i i scenario, but even the most pessimistic. At present, when it is not only investment engineering experiencing a very deep recession, with only weak signs of recovery, we work to strengthen our technical and technological and production capabilities, and we educate ourselves and our colleagues, and innovate the current production schedule. We want to assert ourselves more in the supply of tanks and pressure vessels for energy, including nuclear energy, as in the production and delivery of dynamically loaded structures, and to develop our own manufacturing technology programme in filling stations, bitumen mixing plants and concrete plants.

You are significantly engaged in activities outside of your company as well (Czech Managerial Association, VŠE, Technical University, Strategist Club, cluster Atomex 4Energy, Best Consulting & Training Welders Training Center, the leadership training and management conference, etc.) What is the connection to BAEST or to you?

I believe that we are all part of a larger company, and we should contribute to higher goals. I am trying to combine an academic background with experience in business, to give and receive feedback, to create conditions for the upcoming generation of college students, high school students and apprentices in engineering practices, while at the same time promoting the image of Czech managers and managers both in the Czech Managerial Association, Confederation of Industry of the Czech Republic and Strategist Club as a professional organization. In global competition, we can only succeed by the higher utilization of human potential.

By Pavlína Holancová český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

SERVICE QUALITY the key to growth, even in the mass catering industry

Photo: Archive

Josef Svoboda is the Chief Executive Officer of ARAMARK in the Czech Republic, and holder of the title “Manager of the Year 2010” in the field of accommodation, catering and hospitality.

Could you briefly introduce us to ARAMARK? ARAMARK is the second largest and the fastest growing catering company in the Czech Republic. Today, we operate over 120 restaurants across the country with more than 60,000 meals served each day, and with over 1300 employees. In addition to business, hospital, military and corporate catering (business centres), we also provide catering services at major sporting and social events, such as the largest annual event of its kind in the country – the Grand Prix of road motorcycles in Brno – where for three days we serve more than 230,000 visitors.

ARAMARK is building a strong presence in the Czech market. How do you attract customers to your service?

We are trying to change the perception of business catering as we know it from the past, for example by setting an internal rule to call our plants “restaurants” rather than “canteens”, which psychologically helps to change the mind set of our employees and clients. We also bring the latest trends in food preparation, such as the use of fresh and quality ingredients and careful processing, so as to maintain the nutritional value of food while reducing and phasing out the use of semifinished products, additives and artificial flavouring.

Also, thanks to our unique meal information system, customers know exactly what they eat, a service which has seen many favourable responses.

Your company can pride itself on a series of quality control awards. What does quality mean to you, and in what way can your customers experience it?

Quality means a lot to us, which is confirmed by the “Successful and Excellent firm in National Quality” award, which we have received for two consequent years. Our customers see the quality in the meals we serve, in information that we provide about the food´s content and its preparation method, and in our customer service and the environment of our restaurants. This is of course only the tip of the iceberg – our quality management systems are elaborated in depth and are constantly improving. I dare to say that thanks to the approach of our trained employees, there is not a space within ARAMARK that escapes our attention.

It is precisely the quality and attention to detail that is the key to our uniqueness.

People want their food to taste good, but to be healthy at the same time. Do you apply the principles of a balanced diet to your meals? And how do you communicate them to the customers?

As I have already mentioned, our aim is to balance the taste of food and its nutritional value. Thanks to the information system concepts VitalFood and Vital Job, which can be seen in the form of “traffic lights” or a coloured trio, our customers can easily orient themselves to the nutritional properties of our meals. A green colour denotes dishes suitable for workers with sedentary jobs, or those who are trying to lose weight; conversely, “Red” meals are designed for those who work physically and release lot of energy. Moreover, for each meal we state the content of allergens, fats and salt. All meals within these concepts are prepared, without exception, by using modern, considerate methods from fresh and quality ingredients.

Is there anything that pleases you particularly about working at ARAMARK? And what are your goals for the future?

I am pleased with the continuous growth of the company. The constant expansion of our customers and diners, with a high degree of loyalty from the existing ones, is for me a confirmation of the correctness of our approach. And our goals? To be able to continue in the same spirits, and to always be one step ahead of the competition.

Compiled by LM

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L E A D E R S M AG A Z I N E

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Tržiště 19, Prague 1 www.alchymisthotel.com tel: +420 257 286 011

dodalo dalších 62 milionů z rozpočtu svého svého. Díky tomu se návštěvníkům historického centra Brna postupně otevřou brány podzemí, které prozatím viděl jen málokdo. Město vidí ve zpřístupnění podzemí nový impulz ke zvýšení své atraktivity a slibuje nabídku prohlídkových tras obsahujících

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networking/discussion event

A special thanks to Ifield Computer Consultancy and Laic Aktiengesellschaft for making this reportage possible

From left: Benke Aikell, your Publisher, Tomáš Chalupa, Minister of Environment, Karel Muzikář, President, Comenius, Petr Svoboda, Managing Director, Expharma, and H.E. Peter Brňo, Ambassador of Slovakia

Round Table of Comenius with Tomáš Chalupa, Minister of Environment at TOP Hotel Prague The third “Round Table of Comenius“ in 2011 took place at TOP Hotel Prague, on April 7, and its VIP guest was the Minister of Environment Tomáš Chalupa.

Since Mr. Chalupa has been relatively new to his office (Mr. Chalupa assumed the office in January) he began by briefly introducing some of the key issues which he was immediately confronted with after he took up the ministerial post. These included the situation in the Šumava National Park where major parts of the forests have difficult time coping with bark beetle epidemics as well as the future of the Green Savings Program administered by the State Environmental Fund of the Czech Republic. During the lively debate with the participants Mr. Minister did not forget to mention that the importance of the Ministry of Environment grew immensely since the 1990’s when the ministry was on the outskirts of public as well as political interest. In this connection Mr. Chalupa also pointed out that unfortunately the average in office “life expectancy” of the Minister of Environment is 101 days.

IN PARTNERSHIP WITH IFIELD COMPUTER CONSULTANCY AND LAIC AKTIENGESELLSCHAFT

From left: Josef Rada, Director General, Civil Aviation Authority, Jan Hlaváček, Chief Brewer, Plzeňský prazdroj, Jan Cuc, Director, Metrostav – Division 6, Jiří Sládek, Commercial Deputy, Metrostav – Division 6, Ota Schütz, Director, Žilní klinika, and Petr Pavlík, General Director, Stock Plzeň

IN COOPERATION WITH LEADERS MAGAZINE

networking/discussion event

From left: Oldřich Kožušník, Managing Director, ČEZ Obnovitelné zdroje, Vladimír Vaněk, Partner, CE Energy & Resources Industry Leader, Deloitte CR, and Jan Oberman, Executive Head, Korado Consulting

David Jozefy, Chairman of the Board of Directors, Sewind

From left: Tomáš Varcop, Member of the Board, RWE Transgas, Mojmír Čapka, Chairman of the Board, Brisk Tábor, and Martin Chalupský, Director of Communication, RWE Transgas

Partners of the event were companies ArcelorMittal, ČEZ, InterCora and RWE Transgas all represented by their top managers.

more mo r e photos re pho hoto oto tos and and electronic an eellec lec ectr ectr tr on onic ic version v eerr ssiioon n available aav vai ailabl labl la ble on on www.leadersmagazine.cz ww ww w..llead eeaade der ersma r sm rs maaggaazziine ne.cz .ccz

Libor Joukl, Deputy Governor, Kraj Vysočina

From left: Josef Veselka, Chief of Cardiovascular Center, University Hospital Motol, Karel Jan Jeníček, Executive Head, PRAGO-ÚČET, and Jan Mühlfeit, Chairman, Europe, Microsoft Corporation

From left: Jiří Šťástka, Mayor of Chotilsko, Tomáš Havlíček, Mayor of Nový Knín, Vladimír Dohnal, Chairman of the Board of Directors, Top Hotels Group, and Jan Wiesner, President, Union of Czech and Moravian Production Co-operatives

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networking/discussion event

A special thanks to Ifield Computer Consultancy and Laic Aktiengesellschaft for making this reportage possible

From left: Jakub Vít, Manager for External Relations, Arcelor Mittal Ostrava, Jan Rafaj, Head of Corporate Affairs, Arcelor Mittal Ostrava, and Richard Mencner, Lawyer

From left: Tomáš Jelínek, Executive Director, Donath Business & Media and Jiří Šáda, ARIS Product & BPM Consulting Director, IDS Scheer ČR

From left: Tomáš Havlíček, Mayor of Nový Knín and Jiří Šťástka, Mayor of Chotilsko

From left: Zdeněk Čáp, Managing Partner, Equity Solutions, Peter , Executive Head, Crytex, Svatopluk Mackrle, President, Ecofluid Group Karel Půbal, Partner, PricewaterhousCoopers From left: Pavel Martínek, Commercial Director, Vemex and Petr Kozma, Executive Head, Crytex

From left: Ivan Hlaváček, Executive Head, InterCora, Jan Rafaj, Head of Corporate Affairs, Arcelor Mittal Ostrava, Tomáš Chalupa, Minister of Environment, Karel Muzikář, President, Comenius, Tomáš Varcop, Member of the Board, RWE Transgas, Jitka Vaculíková, Director of Protocol Section, Ministy of Environment, Martin Chalupský, Director of Communication, RWE Transgas, and Oldřich Kožušník, Managing Director, ČEZ Obnovitelné zdroje

From left: Konstantin Abesadze, Director, Best Invest Group and Alexander Gedevanishvili, Advisor, Best Invest Group From right: Karel Janeček, CEO, RSJ, H.E. Petr Brňo, Ambassador of Slovakia and Pavel Martínek, Commercial Director, Vemex

IN PARTNERSHIP WITH IFIELD COMPUTER CONSULTANCY AND LAIC AKTIENGESELLSCHAFT

Congress Hall of TOP Hotel Prague

A special thanks to Ifield Computer Consultancy and Laic Aktiengesellschaft for making this reportage possible

From left: Jaromír Drábek, Minister of Labour and Social Affairs, Marie Kousalíková, Mayor of Prague 6, and Karel Muzikář, President, Comenius

networking/discussion event

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Round Table of Comenius with Jaromír Drábek, Minister of Labour and Social Affairs Minister Drábek was already fifth member of the cabinet of Petr Nečas to take part at the “Round Table of Comenius“ as its VIP guest. The Round Table took place in the ZOOM Unique Place restaurant at the Prague Congress Center on April 21, and most of the lively debated issues included aspects of the social reform as well as discussion of the current state of social affairs in the Czech Republic. Mr. Minister discussed in detail social protection in the Czech Republic while several participants raised more broad questions including the tradition of social system in Europe as opposed to US, or the idea of mandatory social program for Czech youths based on the abandoned military service.

From left: Jiří Maceška, Chairman of the Supervisory Board, Česká pošta, Jaromír Drábek, Minister of Labour and Social Affairs, Karel Muzikář, President, Comenius, Hana Krbcová, Division Director, HR, ČEZ, Martin Procházka, Director, OKsystem, and Jan Wiesner, President, Union of Czech and Moravian Production Co-operatives

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networking/discussion event

A special thanks to Ifield Computer Consultancy and Laic Aktiengesellschaft for making this reportage possible

From left: Petr Fejk, Ombudsman for Quality, České dráhy, Petr Soukup, Managing Partner, Stance Communications, and Radomír Sabela, Managing Director BPO Division, Okin Group

From left: Beata Rajská, Fashion Designer and Blanka Kalcsová, Chairwoman of the Board and General Director, MEDIS Holding

From left: Tomáš Martínek, Country Manager CZ/SK, NetApp, Vlastislav Bříza, General Magnager, GAMA GROUP, Hana Krbcová, Division Director, HR, ČEZ, and Karel Muzikář, President, Comenius

From left: Martin Procházka, Director, OKsystem and Tomáš Štastný, Partner, European Business Enterprise

From left: Milan Hradický, Member of the Board, IMG and Martin Červencl, Diamonds International Corporation - D.I.C.

Marie Kousalíková, Mayor of Prague 6 and Otto Kechner, The University of Finance and Administration

From left: Albín Sybera, CEO, Sybera Enterprises, Petr Hotovec, Director, Zenova Services, and Albín Sybera Jr., Advisor to the Director, State Environmental Fund of the CR

Martin Procházka, Director, OKsystem

From left: Jiří Kysela, CEO, DELL Computer and Jakub Vít, External Relations Manager, ArcelorMittal Ostrava

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networking/discussion event

From left: Miloslava Procházková, Owner, Avanti, Jana Bohutínská, Editor in Chief, Be the Best, C.O.T. Media, Jiří Štráberger, Section Director, Česká pošta, Michal Knapp, Chairman of the Board and General Director, OVB Allfinanz, and Tomáš Martínek, Country Manager CZ/SK, NetApp

Miloslava Procházková, Owner, Avanti and Jiří Vacek, Co-Owner, Avanti

From left: Radomír Sabela, Managing Director BPO Division, Okin Group and Petr Soukup, Managing Partner, Stance Communications

Tomáš Šťastný, Partner, European Bussines Enterprise

Jakub Vít, External Relations Manager, ArcelorMittal Ostrava

Some of the participants of the Round Table included the Mayor of Prague 6 Ms. Kousalíková or Ambassador of Slovakia H.E. Brňo. Partners of the event were companies CS Data, České dráhy, Česká pošta and OK System all represented by their top managers.

more photos and electronic version available on www.leadersmagazine.cz From left: Petr Soukup, Managing Partner, Stance Communications, Radomír Sabela, Managing Director BPO Division, Okin Group, H.E. Peter Brňo, Ambassador of Slovakia, and Karel Muzikář, President, Comenius

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networking/discussion event

A special thanks to Ifield Computer Consultancy and Laic Aktiengesellschaft for making this reportage possible

After the successive run of four cabinet ministers the VIP personality of the fifth “Round Table of Comenius“ in 2011 was the President of the Police of the Czech Republic Col. Petr Lessy. One of the most debated issues at this Round Table was for example the frequency of criminal complaints filed by Czech politicians against their colleagues in politics.

From left: Vladislav Husák, Deputy Police President, Policejní prezidium ČR, Karel Muzikář, President, Comenius and Petr Lessy, Police President, Policejní prezidium ČR

Round Table of Comenius with Col. Petr Lessy, President of the Police of the CR at the Top Hotel Praha

Renata Telínová, Chairwoman of the Board of Directors, Scanservice and Milan Zajíček, Vice Chairman of the Board of Directors, Scanservice

From left: Daniel Merhaut, Jan Mühlfeit, Chairman, Europe Microsoft Corporation, and Roman Cabálek, CEO, Microsoft

Jaroslav Šafránek, Key Account Manager, S&T CZ

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From left: Tomáš Čáp, Vice President, Comenius, Vladimír Svoboda, University Pedagogue, Ivan Ermakov, Senior Specialist, Gazprom Export CR, and Albín Sybera jr., Advisor to the Director, State Environmental Fund

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networking/discussion event

From left: Tomáš Čáp, Vice President, Comenius, Renata Telínová, Chairwoman of the Board of Directors, Scanservice, and Stanislav Beneš, General Director for Central Europe, Infram

From left: Daniel Rous, Security Director, ČEZ and Michal Moroz, former Deputy Minister for Strategies and Programme Management, Ministry of Interior

From right: Karel Janeček, CEO, RSJ and Jiří Kysela, CEO, DELL Computer

From left: Ladislav Blažek, CEO, Blažek Praha, Karel Muzikář, President, Comenius and Petr Lessy, Police President, Policejní prezidium ČR

Otakar Hora, Head Partner, KPMG Česká republika

Klára Samková, Lawyer

This issue was raised by lawyer Klára Samková who futher stressed that in most cases these complaints are not well grounded, and instead are often filed just to attract media attention. Another issue raised was the phenomenon of corruption. Col. Lessy stressed that the fight against the corruption is one of his priorities, and the need to attract more attention to it was also pointed out by Karel Janeček who recently set up a foundation to support the fight against corruption. Partners of the event were companies ČEZ, Dell Computers and scanservice all represented by their top managers.

more photos and electronic version available on www.leadersmagazine.cz From left: Jan Oberman, Executive Head, Korado Consulting, Benke Aikell, your Publisher, Vladislav Husák, Deputy Police President, Policejní prezidium ČR and Jan Mühlfeit, Chairman, Europe Microsoft Corporation

networking/discussion event

Jiří Krejča, former Managing Director, G4S Security Services and Albin Sybera, Managing Director, Sybera Enterprises

A special thanks to Ifield Computer Consultancy and Laic Aktiengesellschaft for making this reportage possible

Soňa van Deelenová, General Director, Union of Czech and Moravian Production Co-operatives

From left: Ivan Ermakov, Senior Specialist, Gazprom Export CR, Tamara Nestěrenková, Member of the Advisory Board, Administrative and HR Director, VEMEX, and Benke Aikell, your Publisher

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Jiří Gajdarus, Partner, Hájek Zrzavecký law office

Daniel Rous, Security Director, ČEZ and Vladislav Husák, Deputy Police President, Policejní prezidium ČR

From left: Vladislav Husák, Deputy Police President, Policejní prezidium ČR, Renata Telínová, Chairwoman of the Board of Directors, Scanservice, Petr Lessy, Police President, Policejní prezidium ČR, Karel Muzikář, President, Comenius, Jiří Kysela, CEO, DELL Computer, Zdeněk Dutý, Commercial Director for the Public Sector and Channel, DELL Computer, Vladimír Dohnal, Chairman of the Board, TOP Hotels Group, and Jiří Šáda, Director, IDS Scheer ČR

Czech Torment with PUBLIC-PRIVATE PARTNERSHIPS Public-private partnerships (PPP) have spread all over the world during last few decades, as widely used means of private construction, finance and operation of public infrastructure. The goal of PPPs is to save public costs and ensure a remarkable degree of higher quality and reliability. They are used in many countries in transport or ecology infrastructure, as well as in universities, health services and prisons.

But PPPs have not yet arrived to the Czech Republic.

PPP projects in the Czech Republic were at first considered and prepared in transport infrastructure, but they had an unlucky start when a section of the D47 motorway from Lipník nad Bečvou to Bohumín in the Moravskoslezský (Moravian-Silesian) Region in 2001 sounded a warning. The PPP contract with Israelili conces sion i aire i Housiingg & Constru t ctition hadd many flaws, and had to be cancelled in 2003 with a considerable payment of damages to the investor.

Whether or not all objections against the project were fair, disputes still simmer, but a thorough and detached analysis of the case is still missing. Another PPP example, a Prague City lighting project ELTODOCITELUM, to be active until 2013, was much more successful and without major disturbances.

Other projects conceived for transport infrastructure followed the fate of the D47 without finalization.

A PPP project in preparation for the D3/R3 motorway from Tábor to the south of Bohemia, planned since 2005, was twice restructured and still suffers from an unfinished technical solution and buy-out of lands.

The AirCon project, consisting of the construction of railway links from Prague to the Ruzyně International Airport and Kladno Town, fell through due to divergent interests of public stakeholders. Nor do the other ‘pilot’ projects at the governmental level show much more encouraging signs. The once planned PPP projects in courts and prisons were cancelled, and the only concluded project of the Prague Military Hospital Concession is now under restructuring, as the financial crisis changed public priorities. In this situation only some municipal projects, like the Parking House Rychtářka in the city of Plzeň, reached the implementation stage.

There are various reasons for this development, which is rather untypical among other countries in the region, but two of the reasons may be the most important. Firstly, the accession of the Czech Republic to the EU in 2004 created a relatively ‘cheap’ source of investment funds that significantly crowded out private capital. It created a comfortable environment both for public officials and construction companies, where no specific effort was needed, and tenders were attended almost exclusively by members of the same group of prominent

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Photo: Mr. Šíp´s archive

Czech-based construction companies. Secondly, the knowledge of positive and negative features, and best practice in PPPs within the governmental sector, is still relatively low, so the PPP projects seemed to be too complex for the officials to care. Internal resistance within the public sector slowed down and blocked these sorts of projects, especially when an easier option was available.

It seems that this brave old world is gone forever. The social impact of the financial crisis significantly enhanced the share of mandatory expenses of public budgets, and available public funds for infrastructure investment were reduced dramatically. Even co-financing of the already attributed EU funds became difficult. The construction sector experienced an almost destructive drop in demand. The prospects of the 2014–2020 EU cohesion policy remain dim in view of acute financial problems of some Eurozone countries.

So the new strategy of the Czech Ministry of Transport plans for a broader utilization of the PPP

model for some motorways and expressways (e.g. reconstruction of the trunk and unique D1 motorway, construction of D3, R35 and some parts of the Prague Outer Road Circuit). The key problem is that selection criteria are still missing. Not every investment is suitable for a PPP. It would be an equal mistake to reject the model, as well as to uncritically embrace it as a panacea for curing all diseases, especially the lack of public funds.

If the lessons of the public sector drawn from the past are sufficient, and whether the officials will be able to master the topic of PPPs, we will see in the next few years.

By Emanuel Šíp Partner Allied Progress Consultants Association Former Deputy Minister of Transport for Strategy český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

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TRADITIONS, PEOPLE, Innovations, New Product and Market Development In the summer of 2010, a change of ownership was reported at Pilsen Steel, one of the oldest plants in the Škoda empire.

Today, a year later, we are interviewingg Russian industrialist Igor Shamis , the current owner of Pilsen Steel.

Mr. Shamis, Pilsen Steel ranks high in the Czech market and elsewhere. Your acquisition of this plant came as a surprise to many people and did not receive wide press coverage. Our readers would like to know more about it. How did it occur to you to buy Pilsen Steel?

We planned to acquire a facility of Pilsen Steel’s scale when we were organizing UNITED GROUP. Our strategic plan was to primarily include in the group facilities that would make up a vertically integrated structure, and ensure a robust position for the holding company in a broad segment of products that complement each other. We have been moving onwards.

After buying BUMMASH in Russia, we took the next strategic steps. The two facilities are a very good match in terms of manufacturing capabilities es. Thes esee ca capa pabi bililitities es ena nabl blee us to de deve velo lopp new high-margin products. Besides, we can also benefit from combining these facilities’ markets.

Before we ask you about prospects and plans, we would like to know your opinion about continuity of traditions. We must remember that Pilsen Steel was in the Škoda Group, and that goes back more than a hundred and fifty years!

As we learned about the plant’s capabilities and developed a business plan, we were impressed by Pilsen Steel’s culture and traditions and realized with respect and conviction that many of the operations and organizational procedures at the plant could be capitalized as part of the trademark! We will do our best to preserve precedence of quality over output,

European mentality and responsibility to customers. What also makes this plant unique is that it is an organic urban element. It is located ririgh ghtt in a his isto toriricc re resi side dent ntia iall di dist stririct ct clo lose se to fa famous brewing companies. People who are loyal to their enterprise and to their city work at this facility. We’ve had enough time to assess their high professional qualities and commitment to the plant.

Please tell us how facilities in your group will work together.

Production capabilities at both facilities are similar: a steel melting shop, a foundry, a press shop, a machine and assembly shop. Both plants use unique equipment for the smelting of high-grade steel and iron, production of ingots, forged products and shaped castings and machining. The overall range of products manufactured at both facilities is very attractive in terms of weight and size. Those are ingots of 0.5 to 250 t, forged products of up to 140 t, castings

Igor Shamis heads UNITED GROUP which includes, in addition to the Czech plant, BUMMASH LLC, a major machine-building plant in Russia. He made his first steps in business in his native city of Saint-Petersburg which is famous not only for its architectural grandeur but also for many large industrial facilities that manufacture products of national importance for Russia. In this city, he found a team of professionals who helped him successfully manage several projects in Russia, and since last year he has been based in the Czech Republic.

Photos: Archive

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Igor Shamis with Werner Nowitzki, Vice President Sales, GLAMA Maschinenbau GmbH, signing the contract for buying a manipulator for big press

of up to 180 t, heat-treated and machine turbine and engine shafts, rotors, crankshafts, piston rods, turbine wheels, cases for turbines, superchargers and pumps. Steelmaking vessels with the capacity of 25 t, 50 t and 70 t, ASEASKF units, VOD, iron-melting furnaces of 1 and 10 t, forging presses with the capacity of 1,200, 3,200 and 12,000 kt, the entire range of heating furnaces, including the unique vertical furnaces, an excellent foundry and, finally, unique mechanical processing equipment – all this coupled with smoothly running quality controls is a good foundation for expanding the existing market and tapping new markets and, most importantly, developing new unique products.

What new unique products hold good prospects for your facilities, if this is not a secret?

New synergy opportunities will enable us to combine our capacity as manufacturers of forged products and castings, which is, no doubt, good go od.. We can als lsoo ta tack ckle le mor oree am ambi bititiou ouss pr proojects. For example, we can be independent producers of components for large complex machines. We can assemble these machines and do engineering. We expect to have our trademark in such fields as wind power, nuclear waste disposal and delivery of components for nuclear plants, shipbuilding and the manufacture tu re of ro rollller erss fo forr th thee iriron on and steell indust d try.

What investment plans do you have in the pipeline that will help you reach these

targets? Can you implement these plans without organizational change?

At the first stage, we plan to upgrade our equipment and to install new machinery that will help reduce production costs. In 2012, we will have in place a large forging manipulator for the 12,000-ton press. In the near future, we expect to be able to buy equipment for differentiated roller heat treatment. At the second stage, we intend to build a new steel melting site and a long product rolling mill in Russia. In addition to investments in machinery, we think that we should also invest in people. A powerful strategic development team is being set up in the group. This team will tackle such issues as sales, new market capture and re-tooling.

If we upgrade the existent ERP system and enhance our economic modeling analytics, we will be able to balance the group’s order portfolio in the best possible way and to quickly develop projects of change.

There is hardly an interview today without a question of how your business was affected by the crisis.

We have been feeling the effects of the crisis since we started to manage the new assets. It was a coincidence. Our managers had no time to sort things out. They had to make a tremendous effort and learn to operate in extreme conditions. This experience continues to be important for us now thhat the h industry is returning to the pre-crisis level, but the market still has to recover. This is a good incentive for our specialists

to look for out-of-the-box solutions. We must admit that it has taken Pilsen Steel more than 1.5 years to start to feel the effects of the drop in demand for a number of products.

Today, we try to be efficient in improving our plant’s economics.

You are confident in seeking support from your team of managers who, no doubt, you are proud of. Do you think it is enough for success?

You are right to say that success depends on a team of professionals, on the right selection and motivation of people. But this is not all there is to it. We are aware of what our colleagues do in other companies, and we heed recommendations by experts. Ronald Berger consultants, whom we invited recently for an integrated audit, reviewed our business in Russia and the Czech Republic and issued an opinion about our prospects and required actions.

Jointly with the Ronald Berger experts, we have refined our development concept and we are now on the way to achi hieve the h targets we have set for ourselves.

To conclude: what key concepts can you define as fundamental in your business?

Traditions, people, innovations, and new product and market development.

Compiled by LM český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

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interview A talk with Libor Hájek, President of the Eltodo Group

Eltodo Can Respond

Photo: Archive of Eltodo

TO MARKET DEVELOPMENTS

In terms of sales, the year 2010 was a very successful one for Eltodo. One of the reasons for this success was a completion of major state government contracts in transportation, in which the group has participated. We asked Ing. Libor Hájek, the president of the Eltodo group, whether he expects this year and the subsequent years to be equally successful.

You are right that in terms of profits, last year has been the most successful year so far in Eltodo´s twenty year history. A large share of this was realised thanks to the transport contracts that you have mentioned, such as the highway bypass around Prague, in which Eltodo participated. But we have also been successful in other areas. In Prague alone, for example, we have built fifty new crossroads, we have obtained two major contracts in the delegated management of public lighting for the cities Teplice and Český Tešín, and we have also commenced a production of signposts and variable traffic signs in Bystřany. Part of the investment in this production was covered by a grant from the European Union.

And what are the prospects for the group this year?

Last year’s success will not probably happen again in the foreseeable future, as it is expected that the extensive government investment into transport infrastructure will slow down now for at least three to four years.

This will reduce the income of Eltodo group in this area.

Moreover, even if other construction begins planning this year, construction would not start sooner than three years from now. Therefore, in the long term, I expect that the state will invest less in large construction than it did in the past few years.

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Do you expect a decline in demand in other areas of Eltodo´s activity?

The economic crisis hit Eltodo with a certain lag, and is manifested by fewer new contracts in all areas, which is, logically, reflected in a greater competition. An example might be in the area of public lighting. Now not only the state, but also the cities need to save. The concept of delegated management of public lighting, which Eltodo brought to the Czech market, will continue to interest them; however we expect the cities and the state to try to significantly depress the prices for this particular service. This is an opportunity for our competition, but for which, I believe, we are well prepared.

How will Eltodo respond to this development?

We have been operating here for twenty years, so we know how to react to market changes. We have prepared a set of measures. In transport, we will try to win contracts in other territories, such as in Slovakia, where large investments in transport infrastructure are still on schedule, or regionally – for example in northern Moravia.

Will it be enough? Would you not consider extending the group’s activities in other fields?

Focusing on other regions is in itself, of course, not enough. We will also strive to strengthen our position in areas where investment activity should remain high. This mainly concerns energy and industry. We will therefore have to compete more often for contracts from the private sector. The risk that a customer will not, for various reasons, pay you is greater here than it the case of state contracts, however this is a direction in which we have to go. For example, this applies to the administration or supply of public lighting for industrial sites. But to be sure – transport will continue to bring contracts. This year it seems we will get fully started with work and supplies for the Prague Blanka tunnel, and I also expect that we will participate in projects financed by the Transport Operational Programme, and that increasing levels of traffic will necessitate a new, technologically advanced procurement management. And last but not least, we must work on improving ourselves. We cannot afford to reject any order, and so we will also focus on smaller contracts, and we must place even greater emphasis on quality, productivity, timeliness and maintaining good relationships with existing clients.

Were you – or will you be – forced to reduce your staff numbers, like many other large companies in relation to the economic downturn?

There were no major layoffs in Eltodo, and I do not expect any in the future. Rather, we are even more focused on improving the internal functioning of the group, the unification process, which entails cutting costs and

minimizing errors and risks in all of our activities. Through effective management, we must seek to utilize our maximum potential. Laying off skilled, experienced people is in my opinion a short sighted recipe.

How soon do you expect these measures to take effect?

We must achieve results this year; some measures will however take effect only on a long term horizon.

Personally I am optimistic, since the competitiveness of Eltodo keeps growing. As the quality of our employees grows, our potential and capabilities all grow.

Is there any significance of the year 2011 for Eltodo?

It is the year when Eltodo celebrates twenty years of its existence. I think this is a good opportunity for us to reflect on Eltodo´s long term perspective. Together with my closest colleagues, we have already embarked upon a development strategy for Eltodo´s future. We want to define what types of new services and technologies will be most interesting in the future, and proceed in a manner so that we are ready when demand arises.

Compiled by Leaders Magazine český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

The Eltodo Group is one of the leading companies in the Czech electrical industry. Founded in 1991, it has grown rapidly by expanding the portfolio of its activities through its own development and acquisitions within its field of business. Nowadays the Eltodo Group is a supplier of complete applications for electrical power engineering and light current engineering.

Initially focused on traditional businesses such as power engineering, transport and public lighting, Eltodo has increasingly become engaged in challenging new businesses such as telecommunications, development projects and intelligent building management systems. Eltodo has sufficient financial and human resources for the implementation of complete projects ranging from design, manufacture, installation, and commissioning, right through to follow-up maintenance services.

The Czech Republic and Slovakia are Eltodo Group’s major markets, with an increasing share of contracts and activities located within other European markets. The group has business activities in Bulgaria, Russia, Ukraine and some other countries.

A talk with Robert Pergl, Chairman of the Board of Directors of the Chamber of Public Contract Administrators (KAVZ)

LET’S NOT PAY MILLIONS for the mistakes of public officials According to estimations, malpractice in public procurement has cost the state 120 million CZK over the past three years.

And the actual damage may be even greater, as this figure refers only to cases decided by the court. However, the institutions in charge have managed to recover just 1,000 CZK of this amount. This is why the Chamber of Public Contract Administrators (KAVZ), which has recently been established, has set as one of its goals to ensure that the people responsible for public procurement possess adequate professional and ethical qualities and expertise. We discussed this and other goals with Robert Pergl, the Chamber’s chairman of the board.

The entities dealing with public procurement do not exactly have a good reputation in the Czech Republic. Whose fault is it?

This is due to the laws and regulations that are often illogical, as well as to the confusion connected with the actual organization of tender processes. There are no unified standards accepted by the market that would define who may organize tender processes, and under what conditions they may do so. In addition, the truth is that their existence is not even desired by many entities, as they prefer to fish in troubled waters. Some companies are founded with a specific purpose and with the aim to

CHAMBER OF PUBLIC CONTRACT ADMINISTRATORS FOUNDING MEMBERS: ☛ Dáňa, Pergl & Partners law office ☛ Weinhold Legal law office ☛ Havel, Holásek & Partners law office ☛ Pokorný, Wagner & Partners law office ☛ Gordion consultancy firm

adjust the tender process to fit their needs.

If, under the current legislation, basically anybody who obtains the relevant trade licence can be a public contract administrator, what is the situation with public officials then?

Unfortunately, the fact is that the role of an administrator is not regulated very well under the existing legislation. The legal regulations, including the amendment to the Public Procurement Act that is under preparation, only require that administrators be impartial, do not participate in the respective tender process, be of legal age and have no criminal record. With public officials, the problem is that they lack sufficient qualifications and expertise.

I would not like to be in their shoes when the state really begins to claim damages from them. But I am convinced that the majority of damage caused by their incorrect decisions Photo: Ivan Čaniga is not intentional.

In the opinion of your association, what demands should be placed on the and contribute to an increased transparency of profession of administrator? individual processes. In this piece of legislation, In our opinion, an individual or company reprewe tried to influence the process of amending the sentative in the position of an administrator Public Procurement Act, with the aim of incorposhould show experience and quality that correrating certain minimum requirements of expersponds to the size of the contract. They should tise and competence. We did not succeed, and have a university education, sufficient work exso we are now focusing our attention on amenperience, experience in contracts of a similar ding the amendment. We established the Chamsize, and compulsory liability insurance, irreber along with key market players. Most of them spective of whether such person is an external are law offices but, of course, we also admit conor internal administrator. sultancy firms that administer public contracts.

We have already been contacted by other compaHow long has your Chamber actually been nies interested in membership. We will only be active? Have you already succeeded in achiepleased if dozens of new members join us. ving any of your goals?

The Chamber came into existence in November Compiled by Leaders Magazine of last year. Of course, we had been thinking about this for a much longer time. We want to be a guarantor of professional services in the area český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz of selection procedures and public contracting,

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diplomatic event

IN COOPERATION WITH LEADERS MAGAZINE Quotes from the speech of H.E. Sergey B. Kiselev, Ambassador of the Russian Federation: “Dear Mr. President, Your Excellencies, ladies and gentlemen, dear veterans and friends!

The Victory Day is a Great day not only for the Russian people. It is our common celebration. The soldiers of the Red Army and the soldiers of the anti Hitler coalition fought together realizing that there is no place for aggression and enslavement of nations on Earth. We remember and pay high tribute to the fact that at the very beginning of our common struggle, when our country was going through hard times, July 18th, 1941 one of the first agreements on joint actions in the war against the Nazi aggression was signed with the Czechoslovak government in emigration.

RUSSIAN

From left: H.E. Sergey B. Kiselev, Ambassador of the Russian Federation and Prof.

Václav Klaus, President of the CR

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more photos and electronic version available on www.leadersmagazine.cz

From left: Nikolay Tresnchalin, Assistant, Comenius, Vladimír S. Mikoyan, Regional Representative in Eastern Europe, Chamber of Commerce and Industry of the Russian Federation, JUDr. Oleg Orlov, President of the Board of Directors, Klub podnikatelů SNS v ČR, Gavril Vasiliev, Managing Director, Vassa s.r.o., Vladimir Myskin, Director for VIP clients, Evropsko-ruská banka, and Alexander Akulinin, Project Manager, Russia and CIS Operation, Comenius

From left: Ing. Petr Kubernát, Director, Pekos s.r.o., H.E. Frane Krnić, Ambassador of Croatia, and H.E. Vicente Espeche Gil, Ambassador of Argentina

From left: Karel Muzikář, President, Comenius and H.E. Sergey B. Kiselev, Ambassador of the Russian Federation From left: Benacher Marchiche, Minister Counsellor, Head of the Mission, Embassy of Morocco and H.E. Belaid Hadjem, Ambassador of Algeria

František Mikeš, Deputy Minister of Culture and Markéta Ševčíková, Editor and Moderator, Český rozhlas 6

From left: H.E. Zainal Abidin Bakar, Ambassador of Malaysia with his wife, H.E. Evelyn D. Austria-Garcia, Ambassador of the Philippines, and Zdeněk Zbořil, Programme Advisor, Art Agency Monte Christo

The history of our common struggle and our Victory taught a very important lesson. The members of the anti-Hitler coalition, and those were countries that differed ideologically and politically, managed to overcome disagreements and unite for the principal goal – to crush the worst enemy. This lesson of history, is especially important today, when we face new global threats and challenges, that can be dealt with only by joint efforts. The common struggle of the Russian and Czech people and our common Victory – the Victory one and for all – is what still unites us today.

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67 Part of the invited guests

From left: Benke Aikell, your Publisher, Miro Smolák, Owner and Director of MIRO Gallery, and JUDr. Igor Ivanko, Soudní exekutor with his wife

From left: Prof. MUDr. Pavel Klener, DrSc., First Faculty of Medicine, Charles University, and Vladimír Laštůvka From left: Ing. Jan Mládek, CSc., Fontes Rerum and Ing. Jan Šolta, CSc., Department Secretary, Department of Economic and Social Sciences, Bankovní institut

From left: Eva Anderová, Director, Department of International Relations, Ministry of Finace, William Lobkowicz, and Irena Griněvová, Sales Director, Lobkowicz Events Management

From left: H.E. Arturo Laclaustra Beltrán, Ambassador of Spain and H.E. Jose Perreira Gomes, Ambassador of Portugal

From left: Prof. Václav Klaus, President of the CR and H.E. Ivan Grytsak, Ambassador of Ukraine

From left: H.E. Sergey B. Kiselev, Ambassador of the Russian Federation is welcoming H.E. Vicente Espeche Gil, Ambassador of Argentina with his wife

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From left: Cyril Svoboda, former Chairman, KDU-ČSL and Zdeněk Zbořil, Programme Advisor, Art Agency Monte Christo

H.E. Nadra Sayaf, Ambassador of Syria and Karel Schwarzenberg, Chairman, TOP 09 and Minister of Foreign Affairs

From left: František Jakub, Secretary General, Parliament of the CR, Office of the Senate, Ing. Jan Stiess, Vicepresident, Nadační fond maltézského kříže, and Doc. Ing. Václav Petříček, CSc., Chairman of the Board of Directors, Chamber of Trade and Industry for CIS Countries

From left: H.E. Abdulrahman Al-Hamdi, Ambassador of Yemen, H.E. Mohammad Kabir Farahi, Ambassador of Afghanistan, and H.E. Ayman Mohammad Aladsani, Ambassador of Kuwait

From left: Jiří Čistecký, Director, Central Europe Department, Ministry of Foreign Affairs and František Bányai, President, Jewish Community of Prague

From left: Vladimír Dlouhý, International Advisor, Goldman Sachs and Ladislav Mravec, Director, Foreign Affairs Department, Office of the President of the CR

From left: Prof. Václav Klaus, President of the CR and H.E. Sergey B. Kiselev, Ambassador of the Russian Federation with his wife

And what unites us also is our love, respect and concern for the veterans. We thank the President, the Government and the Parliament of the Czech Republic, regional and local authorities, Czech citizens for their thoughtful and caring attitude to the memory and the graves of the Russian soldiers and officers perished for the liberation of the Czechoslovakia.”

H.E. Jan C. Henneman, Ambassador of Netherlands on his bike

From left: H.E. Jens Eikaas, Ambassador of Norway, H.E. Jan C. Henneman, Ambassador of the Netherlands, H.E. Inger Ultvedt, Ambassador of Sweden, H.E. Ole E. Moesby, Ambassador of Denmark, and H.E. Lembit Uibo, Ambassador of Estonia

global perspectives

IN COOPERATION WITH LEADERS MAGAZINE

Jan M端hlfeit Chairman Europe Microsoft Corporation Photo: Paul Pacey

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LEADERSHIP IN THE 21 CENTURY ST

It was only in the last decadee of the 20th century whhen the old paraadigm of “job” annd “career” perception staarted to shift. In the bi-polar world created after the Woorld War II bothh in the West and in the East majority of people have had careers with a single employer for the enttire active life.. In many cases they have been either doing the same type of work or alternatively slowly clim mbing on the corporate ladderr, yet again most often in the same areaa of their expertiise. However 20 years ago this paradigm has started to change, first slowly, eveentually very significantly. Thee wide spread of informaation technologgies, PC at everyy desk at home and at offf ice, mobile reevolution and of course the Internet havve opened up completely new w horizons, new opportunnities and also dramatically changed the global markettplace – regardless whether we talk about products or jobs.

The evolution of the world we live in and the role that thee information technologies have played in this shift has truly been fundamental. On the other hand to a large extend suuch progress hass in fact been predictable. Back in 19965, Intel’s co-foounder Gordon Moore has articulated soo called Moore’s law. This theory, which in reality has provved right and conntinues to now for more thaan half a centuury, states that the number of transistorr s that can be placed inexpenssively on an integrated circuit doubles appproximately eveery two years – in other woords the capaciity and abilities of information technologgies double eveery 24 months and grow exponentially.

Imagine that such prediction was made in the time whhen cost of 1 transistor was 1 USD while today for the same amount of money you can have 1 billion transistorr s. Nevertheless s when this visiion became reality we all have had the opportunity to experience the acceleratted pace of tecchnological advancement. Some of you will remember thhe “old” NMT mobile phones that we havve been usingg in the first half of the 90’s and while youu’re holding yoour smart phone today and browse the Intternet, communicate with yourr kids over a video call or instant messaaging or downloaad music or videos, it is kind of difficultt to admit that this is only 15 years ago.

While all this teechnological megga-step or maybe even meega-jump meaans tons of new w possibilities, on the othher hand it also creates a lot of new challenges that might have been hard to imagine few decades ago. Not only the technoloogical possibilitiies are doubling every twoo years, but alsso the amount of information in all the varrious digital foorms is doublinng at the same pace.

Imagine that in thhe 15th century,, an average European human being hadd to consume the same amount of informaation in their enntire life that we today have to consume and “process” in a single workingg day! But the main socieetal change thaat we should all be aware of is that the

inncreasing IT possibilities andd their availability will signiificantly drive competitiveness towards human capitaal. This so called “digital paraadox” will have a profound chhange on companies, citiees, regions and countries coompete. While the cost of laabor as well quality of produuction will eventually come closer and closer between thhe emerging and developed markets, the designed in orr invented in will soon become way more important thhat the historically very mucch appreciated made in…

Thhat is what both corporatee and political leaders in Euurope should keep in mind when it comes to formulatinng the way our great contineent should go and how we shhould compete with the inccreasingly more and more global competitive marketplaace.

I personally believe that thhis can all be done and in faact very successfully. If you consider the phenomenal buuilding blocks that we can all develop from, we could onnly fail by our own mistakee. The quality of European cuulture, historical heritage, education, design, innovatioon, social care and the overall development of our society uniquely positions us inn this global race. However wee need to take on this leaadership opportunity and stt art working hard and fast. Based on my own experieence everyone needs to stt art with themselves. The seelf-awareness is the most annd very fundamental milesttone that every potential leaader needs to get to before asspiring to coach or lead anyoone else. Only at that point when an individual has gottenn to a stage when they are crr ystal clear about their own strengths and maybe even more importantly their weaknnesses, only then they can meaningfully start to lead thhe others. In fact it is only att that stage when they can also start to build up their foollowers; regardless whetheer we talk about politician annd his or her voters or a corpporate leader and his or her em mployees and team membeers. I personally see this as onne of the big issues of today’’s developed world – many peeople consider or even call themselves leaders, hoowever they are only surrounded by “yes-men” rather thhan real followers whom theey were able to inspire or coonvince with a great and souund vision or idea.

Back in 2001, shortly afteer I was appointed to overseee Microsoft’s operations inn the region of Central and Eaastern Europe, we have orgaanized a meeting of our top 700 managers from all the subsidiaries within the region.

Reemember that while this is only a decade ago and at thhat time most of this beautifuul region was still to less or more extent emerging markkets, recovering from the many years of socialism, stilll learning how to build democracy and open free markkets and more importantly with GDP still incomparable to the Western Europe. At thhat meeting which was held in the great scenery under thhe Alps in Garmisch-Partenkirchen I have articulated a set of quite ambitious goals – both sales and corpo-

rate social responsibility related – thhat we were to achieve in the several upcoming years and to which members of my team have been relativvely skeptical.

E xpecting a similar reaction, I have invited a very special guest: Italian mountaineer and explorer Mr. Reinhold Messner. Reinhold came to the meeting and simply left the audience speechless. He talked aboutt his 1978 ascent of Mount Everest, when he stood with Peter Habeler on the summit of Mount Everest; the first men ever to climb Everest without the use of supplem mental oxygen.

While his story was amazing on its own and accompanied by a set of breath-taking photos from m the expedition, more important was when he talked about the leeadership and belief – how prior to this ascent it was disputed whether this was possible withouut any damage to health and brain and about how 9 out of 10 doctors have been warning him to not to even try. Well if Reinhold could have achieved this, I told my colleaagues, we too have to take on the challenge, demonstraate the leadership and eventually change our countriess for the good.

I was very positively surprised by their reeaction and in fact our region as a result became Microosoft’s fastest growing region in the world for the 4 follow wing consecutive years.

When someone wants to lead, there are two basic principles to follow. First, as I like to call it “you can’t sell it outside, if you can’t sell it inside”. So if someone iss unable to spark the inspiration in thheir very own close team, there is clear no way that anyy idea – business or political – and regardless of how good or innovative it might be, is going to fly. Secondly though, it is critical to always communicate the three key elements: what, how and why. As a matter of the facct I see this as one of the big issues that the European poolitical leaders need to cope with. We as voters often heaar about what and how will be done, but not necessarrily enough of the why. Martin Luther King Jr. was not saying I HAVE A PLAN he first said I HAVE A DREAM. Visioon in business or politics needs to create faith of follow wers. This will become especially important with the young emerging generation that is even more critical and likes to question and challenge things more than any other generation before. At the end of the day, thee information technologies have given them many toolss to do so and for that we should be grateful. Let’s jusst make sure that we use the same tools to provide theem with meaningful points and answers.

Jaan Mühlfeit Chairman Europe Microsoftt Corporation český překlad naleznete v elektrr onické verzi magazínu na www.leaderssmagazine.cz

Leaders Magazine III/2011

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networking/charity Evening topic: Islam and the Arab world in the light of current events Guest of Honor: Doc. PhDr. Miloš Mendel, CSc.

Lions Club

From left: JUDr. PhDr. Oldřich Choděra, Lawyer, Charterpresident of LC Praha Bohemia Ambassador and Governor of LCI D122 Czech Republic and Slovak Republic and Doc. PhDr. Miloš Mendel, CSc., Oriental Institute, ASCR

Prague Bohemia Ambassador

From left: Ing. Petr Kučera, CSc., Authorized Expert for the Construction Field and MUDr. Václav Poláček, CSc., Plastic Surgeon

From left: JUDr. Petr Lachnit, Deputy Mayor, JUDr. Ing. Bohumil Studýnka, CSc. – Lawyer, and MUDr. Blanka Seifertová, General Practitioner From left: JUDr. Ing. Bohumil Studýnka, CSc., Lawyer and Ing. Jiří Málek, President of LC Praha Bohemia Ambassador

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From left: Ing. Jiří Opichal, Executive Head, Allimex Trading s.r.o. and former President of LC Praha Bohemia Ambassador and Petr Laštovka, Enterpreneur

From left: Oldřich Hořák, Owner of Hotel Bílá Růže in Poděbrady, Ing. Jaroslav Hořák, Enterpreneur, and Ing. arch. Petr Bílek, Architect´s Studio Bílek Associates, spol. s r.o.

From left: PhDr. Ladislav Říha, Owner, CK RI-Tours and former President of LC Praha Bohemia Ambassador and Prof. MUDr. Václav Mandys, CSc., Head of the Institute of Pathology

From left: Ing. Milan Maxa, Director and Owner, TECHEM CZ, s.r.o. Praha, Ing. Anton Gerák, CSc., Commercial Director, Secretary of LCI D122 Czech Republic and Slovak Republic

Ing. Jaromír Kaulfus, Enterpreneur

In the front from left: Ing. Petr Kučera, CSc., Authorized Expert for the Construction Field, Ing. Jiří Nejezchleb, Tax Advisor, and JUDr. Jaroslav Šátral, Judge of the Municipal Court in Prague

From left: JUDr. Petr Lachnit, Deputy Mayor and Ing. Ladislav Bouček, CSc., Enterpreneur, former Governor, LCI Czech Republic

From left: Mgr. Jan Haur, IS Administrator and MUDr. Václav Poláček, CSc., Plastic Surgeon

IN COOPERATION WITH LEADERS MAGAZINE more photos and electronic version available on www.leadersmagazine.cz

From left: JUDr. PhDr. Oldřich Choděra, Lawyer, Charterpresident of LC Praha Bohemia Ambassador and Governor of LCI D122 Czech Republic and Slovak Republic, Ing. arch. Petr Bílek, Architect´s Studio Bílek Associates, spol. s r.o., MUDr. Blanka Seifertová, General Practitioner, and Mgr. Jaroslav Drápal, Analyst, ČSOB

A talk with Vítězslav Grepl, Director General of the Section of Non-European Countries and Development Cooperation, Ministry of Foreign Affairs of the Czech Republic

MY LIFE’S MISSION IS PROMOTING THE INTERESTS OF THE CZECH REPUBLIC GLOBALLY Photo: Vladimír Weiss

Vítězslav Grepl (1956) graduated from the Faculty of Philosophy of Charles University in Prague in1984 (in both Russian and Finnish languages). He also graduated from the University in Leeds, from the Institute for International Studies in 1992, and in 1999 from the Diplomatic Academy of the Ministry of Foreign Affairs of the Czech Republic.

Vítězslav Grepl p served in manyy pprominent positions in the public administration. He of the Czech Republic to Malaysia Malaysia, and the Ambassador of the Czech Republic to China. At present, Vítězslav Grepl is the Director General of the Section of NonEuropean Countries and Development Cooperation, Ministry of Foreign Affairs of the Czech Republic.

You have been in the service of the Ministry of Foreign Affairs for many years. What brought you to the diplomatic service?

I have been working at the Czech Ministry of Foreign Affairs for almost ten years. The main thing that brought me to the diplomatic service is obvious. I am very interested in global affairs, as much as in foreign languages, and I learned these things at a young age. Practically all of the countries that I have visited as a diplomat so far, I had previously known only from travel books and films. Moreover, I was always attracted by distances and learning diverse cultures, chiefly the exotic ones. Additionally, I also wanted to represent my country, which I like very much, and convince people in foreign countries of its merits. So, I waas no nott wr wron ongg in cho hoos osin ingg th this is ext xtre reme mely ly int nter eresting job. Thus, the mission of my life became promoting the interests of the Czech Republic globally.

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You have held the position of the Czech Ambassador to China. What type of experience was it for you?

Without exaggeration, it was the greatest experience of my life. I had the opportunity to learn China with all its advantages, much like problems. I visited i almost all of its provinces with the exception of two. I saw highly developed areas, as well as the underdeveloped areas. The five years of work in China seemed like ten years working in Europe. There was a greater intensity and volume of work, accompanied by only a notion of success, but also the extraordinary frustration I have not experienced elsewhere. On the other hand, it was, however, extremely interesting as well! The reality is changing literally before your eyes, which you can’t experience in Europe anywhere. It was best seen during preparations for the Summer Olympics in 2008, when Beijing went through sometimes ruthless modernization accompanied by the loss of the identity of a large part of the city. Chinese, however, did not work intensively just before the Olympic Games. They have been working this way for the last thirty years, i.e. since the beginning of economic reforms. Thanks to several decades of the ceaseless work of hundreds millions of people, China became the second biggest economy in the world. Additionally, the work in China, at the same time, had me following not only close but also distant goals, as well as overcoming various challenges and adversities, such as developing my imagination and flexibility. And I also learned to never give i up. I remember b many visits i i – governmental, parliamentary, or business, through which I met an enormous number of people. I also remember the Czech Presidency of the EU Council with which the entire team of our Embassy has, despite all the difficulties, finally successfully coped. In general, anyone who can be successful in China can be successful anywhere. Any success, even the slightest success in China, is dearly bought.

In this context, how do you perceive business relations between the Czech Republic and China?

Mutual commercial relations have undergone a dramatic development in the past ten years – from the original volume of trade of around 760 million USD in 2000, trade has risen to a staggering 16.5 billion USD in 2010, i.e.

21-times the original volume. This unprecedented development logically influenced the overall nature of commercial relations with China. We gradually saw the growing importance of outsourcing Czech production to the Chinese industry, which was strongly influenced by globalization. After the first mutual investment emerged, licensing production of Škoda cars in Sh Shanghhaii started working, then came co-operation in financial services, then the PPF began to promote, etc. Thus, China became the third biggest bu-

siness partner for our country, and even the second biggest exporter to our market. On the other hand, one needs to say that despite the remarkable growth of both of our export markets, there is still a huge untapped potential for mutual business relations. Czech expo p rters should seize ze the opportunity before their place in the market is overtaken by foreign, and largely Chinese, competition. Therefore, I suggest that there is still space for the development of our business relations. It is in our best interest in accomplishing this. Czech companies, operating in the Chinese market, can count on the full support of the Ministry of Foreign Affairs and our Embassy in China, much like specialized agencies.

In early November the European Commission published a new vision for the future of EU trade policy (Europe 2020). Can you evaluate this new trade strategy?

First of all, I would like to state my appreciation for the way the new strategy, aimed at trade policy and published by the European Commission on November 9th, 2010, was established. I chiefly mean the public consultation preceding the formulation of the business strategy, and its close link to the strategy of EU 2020. The key is to focus the new strategy on eliminating the remaining barriers, especially through successfully negotiated multilateral and bilateral free trade agreements. The top priority remains the conclusion of the Development Round of WTO Doha negotiations, perhaps later this year. I find it equally important to focus on finding new ways of cooperation i with i h kkey trading di partners off the h EU. EU On O the h other hand, I would appreciate if the Strategy offered more specific proposals about how to accomplish ambitious goals such as that one.

Among other things, the business strategy introduces a new term – the “Assertive Europe”, calling for more EU member states’ ability to succeed in global markets. Where do you see the main shortcomings of the EU within the Common Commercial Policy?

Foreign trade in the EU is one of the engines of world economic growth. The European Union should still remain the largest global player within international trade and investment, yet it should not stagnate in its development. World trade is not static but rather dynamic. The EU faces a major challenge in the form of essential global changes and must work hard to maintain, and enhance respectively, its leading position.

There-fore, Europe needs more than ever to focus on issues like free access to foreign markets, services, protection of intellectual property, foreign investment, public procurement and synergy between its own internal market and EU foreign activities. There is a need to promote more mo re on th thee wo worlrldd ma mark rket etss, whi hich ch is cl clea earlrlyy se seen en when looking at the export-oriented economy of the Czech Republic, where export is 77 % of the GDP.

According to statistics, 90 % of world growth is going to be generated outside of Europe by 2015. Which non-European markets, in this respect, are crucial for the Czech Republic?

Not only will 90% of world economic growth be prod pr oduc uced ed out utsi side de of Eu Euro rope pe dur urin ingg th thee ne next xt f iv ivee years, but a full third of this growth will be produced in China. The market of this country therefore is, and further remains, very important for the Czech Republic. You can find, however, in each non-European part of the world, many economies whose growth, and a large absorption capacity, is interesting for Czech exports. For example, the economies of the BRICS group, i.e. the free economic group of China, Brazil, Russia, India and South Africa, with a population of over 40% of the world’s population, produces GDP in the amount of 18.48 trillion USD. And there are many other economically interesting countries for the Czech Republic, who aspire for membership in the BRICS, which already meet the criteria for membership in this group.

With what non-European countries are our bilateral commercial and political relations rather unsatisfactory, and how is this caused?

Let me answer your question in a bit of a philosophical way. From the name of the section I am head of at the Ministry of Foreign Affairs, one could conclude that our section is primarily in charge of political relations with non-European countries. Present modern diplomacy, however, plays a significantly different role than the former classical diplomacy. The economic (or business, if you want)) andd political li i l dimensions di i are insepai rable in today’s diplomacy, and you hardly find a country where the diplomatic missions of the Czech Republic perform on a purely political basis. Especially among developing countries, there are those where the state, and the ruling elite respectively, have such a strong influence on economic cooperation with foreign countries, that good political relations are a critical prerequisite for successful cooperation in the economic and commercial fields. In many cases, I’d rather talk about failing to use the potential of commercial opportunities, the lack of willingness of many Czech companies to overcome problems associated with differences in business culture of non-European countries, and the size of their economies, than about the inadequacy of commercial and political relations. Additionally, our companies are hampered by the inability to reach remote destinations, a need for fast turnover at the expense of long-term goals, continuing while dramatically under-funded, and excessive focus on the well-known and relatively safe, standardized environment of the EU single market.

By Pav avlílína na Hol olan anco cová český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

Leaders Magazine i III/201 I 1

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An interview with Martin Košatka, Director of the Department of Northern and Eastern Europe, Ministtry off Foreiign Affaiirs off thhe Czechh Repubblic

THERE IS AN EXPERT

CONSENSUS ON RUSSIA

The situation in Belarus has been complicated since the December elections and the attack in the Minsk underground. How do you regard the situation there?

The situation is very complicated. Even before the elections that took place on December 19 of last year, we hadn´t been quite satisfied with the developments of human rights and democracy in the country, although there were some positive signals showing there was a good prospect for improve improvement. We believed it was worth having a dialogue with the Belarusian authorities and representation.

From this point of view, the post-electoral deve-

RNDr RN Dr.. Ma M rt r in i Koš ošaattkkaa is a ca c re r er dipl di plom lom omaaatt; du duririring ng hiss pro rofe fess fe s io ss iona naal ccaare reer er he wo w rk rkedd on sseecu curiririty tyy polilil ccyy andd muulltitila po llaatteerraal al di d pl p om omac macy. accy. y.

He ser e veed inn var ariioous cou ount nttriiess ntri and an nd hheelldd thee pos ost ooff the ost he Czeech Amba Am bass ba s ad ss ador o to Sp or Sppai aiin. n. Cuurrreent ntly lyy, he is Di Direct reeccttoorr of th the De Deppaart r tme ment nt of North of or th or ther e n aannd Ea Easst sterrn Eu Euro rope ro pee o thee Min of inisstr t y of of Foorrei eign gn gn Af fa Af fairrs of of thee Czzeecchh Reppub u lilic. c c.

Photo: Vladimír Weiss

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lopmen lopm entt tr trul ulyy sho hock cked ed us, and the here refo fore re the Cze zech ch Republic was among those EU member states that called for EU policy change, because things like this cannot simply happen in Europe. Belarus is a country close to us in every aspect and we feel we have legitimacyy to insist on high g standards of demo mocr crat atic ic beh ehaa viour. For this reason, the Czech Republic was in the group of the EU member states who were most active during the follow-up meetings on this issue. We promoted the introduction of such measures that would send a clear signal to the Belarusian administration that they can´t go ahead like this. We supported the introduction of the visa restrictions – a sanction of

a po polilititica call na natu ture re, be beca caus usee we wan ante tedd to sen endd a po political signal, not to interrupt the contacts between the EU and Belarus, and the Czech Republic and Belarus. On the other hand, we actively promoted an increase of the existing support to the Belarusian civi ci vill so soci ciet etyy.

Additional funding for the Belarusian civil society was secured, but some claim it is already too much resource to be absorbed effectively. Is the offer of further financial assistance the best approach?

It is disputable, and certain reservations in this sense were also reflected in the position of the Czech ministry of foreign affairs during the donor confe-

rence in Warsaw. Our plan was not to increase the support enormously, because it is not that important.

It is ne nece cess ssar aryy to ser erio ious usly ly con onsi side derr wheth ther our money is spent in the best possible way and what to re-focus on if necessary.

The Czech Republic granted political asylum to one of the Belarusian opposition presidential candidates. How does this fact resonate in the bilateral relations? Some representatives of the Czech NGOs were not granted Belarusian visas recently.

I would not make a direct link between these issues; it is rather a consequence of the generally worsened relations between the EU and Belarus, which will now follow more restrictive policy when considering visa applications of our citizens of this prof pr ofilile. e. The ver eryy po polilititica call as asyl ylum um for Mr. Mic icha hale levi vičč in the Czech Republic has not, in my view, influenced the contacts we currently have between the Czech Republic and Belarus.

The Eastern Partnership countries have been displaying a tendency to backslide in their democratic development. Currently, the new working programmes of the Eastern Partnership multilateral platforms are being discussed. From the Czech Republic´s perspective, what should be changed in these programming documents?

At the moment, our priority is to confirm the very position of the Eastern dimension of the European Neighbourhood Policy vis-à-vis the Southern dimension. After the recent developments in the Mediterranean, the EU is focusing on this region, and, understandably, there is a pressure to increase support toward democratization in these countries. In line with our previous policy we will promote the enhancement of the Eastern dimension as such, so that the attention of the EU is not turned even further toward the South. In the framework of the Eastern Partnership you mentioned the multilateral dimension, but there is also the bilateral one. And frankly speaking, this is the substance our partners are most interested in because the most important questions are being tackled at this level – the visa-free regime or visa facilitation, the association agreements, etc.

It is in our interest to continue in these areas as fast as pos ossi sibl ble, e, how owev ever er, it doe oess no nott me mean an we ar aree re read adyy to present gifts – we have to help our partners to fulfil all conditions for the introduction of the visa facilitation or of the visa-free regime, and in order to progress further in their negotiations on the association agreements. As far as the mul ultitila late tera rall pl plat atfo form rmss ar aree concerned, it is in fact a complementary element, although a new one the Eastern Partnership brought about. We want all planned projects to start as soon as possible; it has already taken a long time and our part pa rtne ners rs are get ettiting ng imp mpat atiient.t Natturalllly, we want effective projects, and projects in which the Czech companies or NGOs can take part, too. However, we do not wan antt to use the EU mo mone ney onlly. Despitite the budget cuts introduced by the government, we managed to allocate some resources to fund some projects fully, or to co-finance projects already funded from the EU instruments.

Russia also falls within your portfolio – during the time of the financial and economic crisis

Russia sent some signals that she would be more open to the European partners, and ready to improve relations. Has the EU and the Czech Republic managed to use this opportunity?

I am not convinced Russia has been changing her policy towards the EU, and that she is changing her strategy and vision about her position in the world.

There were some adjustments of tactics and attitude towards the Union and the individual membeer st stat ates es..

We also feel a more positive attitude in our bilateral relations – Russia has been undoubtedly showing us her friendlier face latelyy. We welcome this developp ment, as we have an interest in keeping the best possible and pragmatic relations with the Russian Federation. On the other hand, we cannot turn a blind eye to the issues that keep complicating the cooperatition ra on bet etwe ween en Rus ussi siaa an andd th thee We West st in ge gene nera rall. If we we, for example, look at the problems linked to the Treaty on the conventional forces in Europe, these are the issues that still remind us that the situation is not as ideal as some of our partners in Western Europe woul wo uldd lilike ke to se seee itit. Th Thee Cz Czec echh Re Repu publ blic ic fal alls ls amo mong ng the countries that are not euphoric and who believe that everything has changed. We belong to those countries that have a genuine interest in developing ttrue EU EU-Russia R i relations, l ti andd bilateral bil t l relations, l ti but b t we keep our feet on the ground and we analyse carefully what is going on in Russia.

The EU policy on Russia has always been a cornerstone of the common foreign policy. Are the member states currently able to better overcome their differences in their attitudes on Russia?

I attend different EU meetings at various levels and I can say that the perception and analysis of the situation in Russia is very similar, almost identical at the expert level; the differences in national positions stem rather from political approaches. It is quite an important element we have to consider when promoting our opinions. It is clear we all try to use the opportunity when Russia is more open to cooperation. The EU is interested in signing many important documents like a new Partnership and Cooperation Agreement – the negotiations are however stalled there because a political will is not everything in this case. The EU is open to soon introducing a visafrfree ee reg egim imee wi with th the Rus ussi sian an Fed eder erat atio ionn, but there are many technical conditions that have to be met first. Just because we have better relations, we cannot grant a visa-free regime.

The Czech ministry of foreign affairs supported and hosted the initiation of the EU-Russia Civil Society Forum. What expectations do you have from this platform?

The ministry of foreign affairs generally enjoys well developed cooperation with the NGOs. The already exiisting Eastern Partnership Civil Society Forum is also very important for us. We truly support it and we know this platform has proved itself. So when the NG th NGO Os turned to us with a request to support the EU-Russia Civil Society Forum, we supported them.

The greater the contacts between European and Russian NGOs are, the better. We are glad it was the Czech Republic that contributed to the development of relations between the EU and Russia in this way.

Your department is defined on territorial bases

as the Department of Northern and Eastern Europe, and this division emerged quite recently. What is the logic behind it?

This change was implemented before the 2009 Czech EU Council Presidency. Before this reform there was the Department of Central Europe, covering the Visegrad countries, Slovenia, and German-speaking countries. The rest of Europe was divided into East and West st;; si sinc ncee su such ch a div ivis isio ionn wo woul uldd ha have ve bro roug ught ht about an enormous workload to the Department of Eastern Europe, it was necessary to divide Europe differentlyy – not in the mer e idiaan di dire rect ctio ionn bu butt in the parallel. And my department was tasked with covering the part of Europe from Iceland to Armenia, Azerbaijan and Georgia. We are responsible for eighteen European countries, while the busiest is the agenda of the Eas aste tern rn Par artn tner ersh ship ip cou ount ntriries es and nd Rus sia. i T he Department of South and Southeast Europe covers the second of the two “difficult” regions – the Balkans.

With this division we balanced the workload and demanding agenda, where national position has to be for ormu mula late tedd on onn-go goin ingg ba base sess, and pro romo mote tedd at the EU level. Compared to this, the cooperation with our EU partners is smooth, as most issues are solved on daily bases in Brussels.

You were previously appointed ambassador to Spain. Was it a challenge for you to switch to another cultural milieu?

Our work is not stereotypical, and we are used to it.

There is no tendency at the ministry to have people specialized in one specific issue, agenda, or any particular part of the world for their whole professional life. I have been to various parts of the world during my postings, as well as here, at the ministry, and I have performed different tasks – for example before I left for Spain, I focused on multilateral diplomacy and security policy. When I returned I started working on a different geographical part of the world, and at a bilateral department for the first time; but that´s what our work is about and what makes it even more interesting.

How do you see the current development in Spain; is it going to be another neuralgic and critical spot of the Eurozone?

I hope not. It would be a catastrophe for the whol wh olee EU bec ecau ause se the Spa pani nish sh eco cono nomy my is hu huge ge – twice the size of the Greek, Portuguese and Irish economies combined. I am not following the developments in Spain very closely anymore; it is clear that the situation is not easy, but it does not mean it is unmanaggea eabl b e. e The pro robl blem emss ar aree bi bigg an andd re rela latitive vely ly long-lasting – the development of the public finances, huge unemployment, and problems of the financial sector, especially of the regional savings banks. The upcoming EU banks´ stress-test will be very telling in thi hiss se sens nsee. How owev ever er, in the economic i sphhere it is often rather about impressions, and it is first and foremost important to keep the investors´ trust; it willll be a de wi deci cisi sive ve fac acto torr. And it se seem emss th the trustt is slowly growing, which is definitely a positive signal.

Let´s hope Spain is well on the way.

By Věra Řiháčková český překlad naleznete v elektronické verzi maga ma gazí zínu nu na ww www w.le lead ader ersm smag agaz azin inee.cz cz

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discussion event

Photo: Archive of Top Vision

Pavel Telička, Director of Brussels Office, BXL Consulting s.r.o.

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CFO Forum

The 13th year of the CFO Forum, which is the annual conference regularly organized by the company top vision, took place in the Hotel Chateau Štiřín on the 12th and 13th of May. Every year, the CFO Forum becomes a place of discussion for dozens of financial directors, top managers, investors and individuals from the financial sector, who bear the responsibility of the successful financial management of their companies. The chief goal of the forum is to facilitate discussion and the exchanges of experiences, opinions and ideas concerning the active role of financial management in increasing company values.

From left: Václav Moravec, Moderator, Martin Novák, Member of the Board of Directors and Director of Finance Division, ČEZ, and Patrik Choleva, Financial Director and Vice Chariman of the Board, SKANSKA

Lukáš Najman, Financial Director, Hewlett Packard

Pavel Bobošík, CEO, BCM Zdeněk Lust, Head of Corporate Sales, Investment Banking, Komerční banka

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Jiří Nekovář, Partner, Euro-Trend and President, Chamber of Tax Advisers, and Member of NERV

more photos and electronic version available on www.leadersmagazine.cz

From left: Ladislav Macka, CEO, Českomoravská záruční a rozvojová banka, a.s., Stanislav Hájek, Financial Director, John Crane Sigma, Mirek Topolánek, CEO, VAE CONTROLS, s.r.o., and Jiří Nekovář, Partner, EuroTrend and President, Chamber of Tax Advisers, and Member of NERV

Ladislav Minčič, 1st Deputy Minister, Ministry of Finance of the CR

Josef Sviták, Financial Director, HILTI ČR

Patrik Choleva, Financial Director and Vice Chairman of the Board, SKANSKA

Ján Lipták, Financial Director, SCHENKER

Ladislav Macka CEO, Českomoravská záruční a rozvojová banka, a.s.

Jan Vejmělek, Chief Economist and Head of Economic & Strategy Research, Komerční banka, a.s.

Martin Novák, Member of the Board of Directors and Director of Finance Division, ČEZ

Tomáš Třmínek, Senior Sales Manager, Komix s.r.o.

Jaap Veenenbos, CEE, Aon Central and Eastern Europe a.s.

Jana Tonová, Financial Director, Kostelecké uzeniny, a.s.

art event

IN COOPERATION WITH LEADERS MAGAZINE Photo: Josef Louda

From left: Helena Kroftová Leisztner, Artist and Member of the Board of FNMWA, Dr. Gianni Pastorelli, Comercial Attaché, Italian Embassy, Ing. Marie Kousalíková, Mayor of Prague 6, and Benke Aikell, your Publisher

Closing reception of an art exhibition of Helena Kroftová Leisztner was organised under the auspices of the Italian Ambassador to the Czech Republic, H.E. Fabio Pigliapoco. The autor is a painter, photographer, and clothing designer who presents her creations through her own multimedia Art & Fashion.

On this occasion, the audience had opportunity to see her art exhibition called Venice & Colours of Woman. Many ambassadors and businessmen came to admire not only the artwork, but also the excellent cuisine of Hotel Hoffmeister.

The closing of the exhibition was launched by the Mayor of Prague 6, Ing. Marie Kousalíková, Dr. Gianni Pastorelli, Comercial Attaché, Italian Embassy, Benke Aikell, your Publisher, and Ivana Michalová, Managing Director, Hotel Hoffmeister.

Venice and the Colours of Woman at the Hotel Hoffmeister

Helena Kroftová Leisztner, Artist and Member of the Board of FNMWA with her husband Roland Leisztner and their son

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more photos and electronic version available on www.leadersmagazine.cz

From left: Ing. Radek Hamerník, Director, Franck Provost and H.E. Pierre Lévy, Ambassador of France

Ing. Marie Kousalíková, Mayor of Prague 6, Helena Kroftová Leisztner, Artist and Member of the Board of FNMWA, and Ivana Michalová, Managing Director, Hotel Hoffmeister

Helena Kroftová Leisztner, Artist and Member of the Board of FNMWA with her friends

USEFUL BUSINESS TIPS FROM ROYAL WEDDING ETIQUETTE GUIDE Karin Genton-L’Epée is a business coach with 28 years of extensive professional experience in the United States, France and the Czech Republic. Based in Prague since 1995, for the past 13 years she has developed a range of coaching and training programs for mid- and top-level managers, focusing on leadership development, cross-cultural understanding and effective communication in a global environment. By providing a structured environment that supports people in clarifying who they are and what they want, Karin enables her clients to devise more effective strategies to achieve their personal and professional goals. Thanks to her knowledge, skills and range of international experience, Karin is in demand as a speaker at business conferences and educational institutions on both sides of the Atlantic. She is also a regular contributor to business journals and magazines. She works in English and French and can be reached at karin@coaching.cz.

Upon hearing about Kate Middleton and Prince William’s engagement last November, the first question everyone asked then was, “What will Kate wear on her wedding day?” As the day of the royal wedding came closer, another topic of discussion showed up online: the 22-page etiquette guide the 1900 guests received in order to ensure that the royal ceremony would reflect the very essence of polished perfection.

While many of the do’s and don’ts of the royal wedding etiquette recommendations applied mainly to this specific situation, such as “Don’t give the Queen a friendly hug”, the list has some common sense tips which many would be smart to practice in their professional life.

Business etiquette is the accepted standards of behaviours we use every day to make a good impression on people and to feel good about ourselves. Appropriate business etiquette is crucial for professional relations and i interactions, i andd iis kkey to professional f i l success. SSadly, dl few people seem to be aware of the terrible impression some of their behaviours make.

From the royal wedding list, I found three major business faux-pas I regularly encounter.

CHEWING GUM My generation, the baby boomer generation, was brought up not to chew gum for the same reason we were told and taught not to speak with our mouths full – it’s tacky and leaves a terrible impression. But in the past decade, I have noticed that many people, both professional and nonprofessional, chew gum in public. I assume this is because, in an age of computer-aided isolation, they chew gum at home alone or in the office, in front of their monitors for hours, and the habit carries over when they venture out.

Recently, I received an email with a link to one of the many local business programs offered in Prague. Out of curiosity, I went to the site and clicked on the pictures posted.

To my surprise, in one of the pictures taken during a seminar, the presenter clearly had gum in his mouth while addressing the audience, gum which the camera immortalized forever (or at least until treated with PhotoShop). Although I do not know the gentleman or his company, seeing the chewing gum gave me such a negative impression that I might never sign up for any of the seminars offered by this organization – certainly not for those with the gum chewing organizer.

While most gum chewers would never dare to speak while eating something, the majority seem to be oblivious to the disastrous impression they give when, gum in mouth, they address an audience or an individual. It is plainly distasteful and reflects a lack of basic social and business manners.

You might have the best of intentions, the right look and a pleasant demeanour, but if you are chewing gum while ad-

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dressing someone in a professional or social environment it will damage your professional image quicker than many other faux pas.

Business Tip #1: Don’t chew gum in public. Doing so cannot possibly impart a favourable impression.

PHONING/TEXTING/TWEETING Is texting utterly necessary or downright rude? For many it is still one of the worst anti-social behaviours. (In my book, it is a close second after chewing gum in public.) While we are constantly reminded to turn our phones off during meetings, in theatres, at social events, and while entering a business building etc., it seems that some people are still oblivious to the appalling impression their constant texting gives.

Last month, I attended a business breakfast for a small number of participants and a local high-profile speaker. My assumption was that those of us who were present wanted to hhear what h the h speaker k had h d to say, but b I was proven wrong. To my surprise wrong surprise, a middle middle-aged aged woman sitting bebe tween me and the speaker spent most of breakfast taking her phone from her bag to check her emails, and answering them while keeping her phone close to her face so she could read her messages. (It might have been better to keep her phone under the table, but my guess is that she couldn’t read the messages that far away from her face.)

When she was finished, she would put her phone back in her bag only to bend down again three minutes later to repeat her checking/answering routine. This went on for the entire breakfast.

I was so annoyed by her inconsiderate behaviour that when she tried to engage me in conversation at the end of the breakfast I cut the exchange short and walked away. She might be a very nice and competent business person (I later learned that she is a lawyer), but her behaviour exasperated me so much that in the future I would do my best to avoid her when possible. And I doubt she has a clue why.

Business Tip #2: Don’t use your phone in a business setting unless you have asked the participants and received their approval prior to the meeting; and in the event that you do have to use your phone, leave the room.

DRESS FOR SUCCESS There was a time when dressing for success meant wearing an outfit that fit in. Men wore suits and ties, women wore skirts over the knee and conservative blouses. At IBM, the standard was a dark blue suit, white or light blue shirt and a conservatively striped tie in dark colours. In general, the “old” school of business attire didn’t give much opportunity to express one’s personal style and creativity.

Lately, the trend has shifted from reluctance to attract attention to getting noticed at all costs, especially for those

women who are now asserting their independence and power in the workplace in ways that often work against them in the long run.

Although the new free spirit of today’s business fashion offers more opportunity to express one’s style, it doesn’t offer too much guidance about what to avoid in certain circumstances. Hence the several pages out of twenty-two in the royall wedding ddi etiquette i guide id that h were devoted d d to dress. d To prevent unnecessary embarrassment, embarrassment the royal guests were instructed to steer clear of cream and white outfits to avoid stealing the spotlight from the bride. They were also asked avoid “flashing too much flesh”.

This last recommendation, like no chewing gum and no texting during the wedding ceremony, reflects the tendency of the 21st-century fashion statement. Today, in an attempt to express their creativity and self-confidence, many women favour open blouses which reveal deep cleavage; very short skirts; and high heels.

While most men and some women might enjoy the new trendy look, in a business environment, it doesn’t promote the image of a competent and credible professional but more the image of someone who, at the most, is not aware of business etiquette and, at the worst, is someone who cannot be taken seriously.

While no one will wear a tuxedo to the beach on vacation or a bathing suit at the opera, the same basic standards apply at the office.

Business tip #3: Dress to fit the circumstances, avoid undue displays of skin, and let your tie, eyeglass frames, hair style or a scarf express your individuality.

Since Confucius wrote the first rules of decorum, business etiquette has been questioned, changed and questioned again as to its importance. The complete list of do’s and don’ts of business etiquette requires more than twenty-two pages.

But to learn to conduct business with pizzazz and savvy, experience has taught me that each time you ignore one of these three basic faux-pas (chewing gum, texting and inappropriate dress) you come across as rude and inconsiderate, and risk alienating a potential business partner. And you miss an opportunity to make a good impression.

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interview

Lubomír Franc, Governor of the Královéhradecký Region Photo: Mr. Franc´s archive

A talk with Lubomír Franc, Governor of the Královéhradecký Region, about his region

HOLIDAYS REGION Mr. Franc graduated in personal management at the Faculty of Arts of the Charles University in Prague. Until 2006 he worked as an economist, and later as a Union leader in VEBA Broumov. Between 2006 and 2008 he served as a Deputy Mayor of the city of Broumov. After the last regional elections he was elected the governor of the Královéhradecký Region. Mr. Franc is a member of the Czech social democrats.

How would you shortly characterize the Královéhradecký region? Does your region differ in any particular way from the neighbouring regions?

First, the Královéhradecký region is unbelievably picturesque. This comes mainly thanks to the variety and division of its territory and its cultural heritage.

The Krkonoše and the Orlické hory are our great treasures, as well as the mountain ranges themselves, their characteristic foothills, the area of Český ráj, and the deep forests of the frontiers. Besides having many of the most beautiful natural landscapes of our country, the region offers a lot of culture heritage sites.

Among them are the unique baroque Kuks, the Opočno Chateau, the Kost Castle, and Babiččino údolí. The region offers many possibilities for an active holiday – skiing in the winter, and hiking, swimming or mountain biking in the summer.

Is your region homogenous with the city of Hradec Králové as its single natural centre? Or are there alternative centres of the region – whether industrial, touristic, or historical...

Hradec Králové is the region’s capital town. Thus, it is a natural centre as far as administrative, social, cultural and economic life goes. However, the former townships of Náchod, Trutnov, Jičín and Rychnov nad Kněžnou keep their local importance. They are seats of regional hospitals, or administrative authorities.

They play very important roles for employment, and they help to balance the natural development and growth of the whole region.

What would you like people from other parts of the country to think of in connection with your region?

I have already spoken of the natural and heritage sites of our region. These are probably the calling-card of the region, and something that will come to the mind of anybody in this country. I would be happy if people remembered our region as a place worth returning to.

I want the region to be a place where people spend nice holidays.

What about the business climate in your region?

How would you characterize the opportunities for business and development in the Královéhradecký Region? Is there any hidden potential?

We all try to support the business in the region as much as possible. We closely cooperate with the Regional Chamber of Commerce. We attempt to help our regional firms and businesspeople with their contacts abroad. We have introduced special grants aimed at promoting innovations and cooperation betw be twee eenn pr priv ivat atee co comp mpan anie iess an andd un univ iver ersi sitities es.

You can always identify the potential for business development in various areas. There is no doubt that I would be happy if the Královéhradecký Region kept drawing investors’ attention, and the growth of the private sector kept steadily increasing.

The regions have gone half-way through the period of access to the EU funds within the Regional Operation Programmes scheme. What projects have been realized in your region, or are applying for the EU money? Do any of them signify a regional importance?

Last year we rapidly increased co-financing of the regional European projects. Our co-financing increased from 100 million CZK in 2009 to 210 million CZK in 2010. Thanks to that, we managed to get an additional 100 million CZK from EU funds for the Královéhradecký Region. The same trend continues this year, as we have prepared 250 million CZK in our budget, which is ready for co-financing of the EU projects. projects j t W We shall h ll th then bbe able bl tto ddraw about b t hhalflf a billion CZK from the EU funds. Projects worth 2 billion CZK are already being carried out. The money will flow into road maintenance and the modernisation of infrastructure, schools, and public health.

No doubt you can specify which project’s significance transcends our region. The revitalisation of the baroque grounds of Kuks is such an example. We look forward to turning Kuks into a premier tourist site of the Czech Republic.

As you said, your region encompasses several attractive touristic locations. How do you promote the tourism industry in the Královéhradecký region?

We have managed to get 20 million CZK from the EU funds for the presentation and promotion of our region.

Thanks to that money we have presented our natural treasures and cultural heritage at fairs in Germany, Austria, Russia and other EU countries over the last two years. Besides, the region has been presented in the national papers as well as selected papers abroad. Within the framework of the project, we prepared a number of promotional materials, leaflets etc. for specific target groups i.e. wellness and relaxation opportunities in the region, gastroturism, culture, and active free-time holidays. The project encompassed all of the important areas of tourism – the Krkonoše and Podkrkonoší, Český ráj, the Orlické hory and Podorlicko, Kladské pomezí and also the Hradec Králové area.

Is there any crucial issue in the region that more or less sets your agenda for the rest of your mandate?

We have made a point of many issues that became part of our policy statement at the beginning of the term. We have already succeeded in stabilizing our regional hospitals, and discharging them of their debts. We have presented a historically first conception of regional public health in the country, and we prevented the regional social facilities from being privatized. The system of integrated regional public transport was brought to full operation and we started a project for supporting families with children through the so called family passes. We continue to utilize the EU funds for the region’s development. I am very happy that we have opened our institution to the public and made everything as transparent as possible. The council meetings are being broadcast on-line, we organize on-line press conferences, and just recently we have given people the opportunity to spend the whole day with me. The goal for the rest of the mandate is to continue in the job we started, as best we can, andd to t achieve hi progress g in i the th areas I mentioned. mentioned ti d It is not such a long way off to the next election.

Are you aware of any broken promises that you failed to meet, and which you will have to explain and admit to the public?

I dare to say that the region’s administration has met the promises that were made before the last election. I regret however that we did not manage to push the government authorities to close the negotiations concerning the disputed grounds needed for the D11 dual-carriage way, so it could at least lead as far as Hradec Králové. We have tried hard and made several steps forward during Mr. Fischer’s government, however, the situation now seems to be rather uncertain again, and I cannot see any realistic solution on the horizon in the coming months.

What about your political ambitions? What stage are they in now?

My main ambition is to do a good job. I have never been a big fan of ideological politics. I prefer working on everyday issues that concern the people. The public wants to see well maintained roads, good public health, and feel social security. That’s important to them. If I shall use the word ambition within this context, then my political ambition is to bring people the most visible and tangible evidence of my work for them. My credo is that one should be fair and correct no matter what job they do.

By Filip Hubáček česk če skýý př přek ekla ladd na nale lezn znet etee v el elek ektr tron onic ické ké ver erzi zi magazínu na www.leadersmagazine.cz

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An interview with Martin Plíšek, Deputy Minister for Legiisllattion andd Law, Miniistry off Heallthh of the Czech Republic

Moving Reform Ahead Martin Plíšek graduated from the Faculty of Law, Masaryk University in Brno.

He currently serves as deputy minister for legislation and law at the ministry of health. He joined KDU-ČSL (Christian democrats) party in 1993, and switched to TOP 09 in 2009. He has been active in local politics in Prague 4, where he currently chairs the club of TOP 09 local council deputies. He likes history, music and tourism. tourism

Photo: Vladimír Weiss

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Leaders Magazine III/2011

After the doctors´ campaign “Thank you, we are leaving”, it was expected that there was a trade-off – the concessions made by ministers vis-à-vis their demands in return for reaching a better consensus on some of the points of the health care reform. However, it seems to not be the case, and everything has gotten complicated again. What do you think of this?

This government has committed itself in its programme to implementing several reforms, and our ministry, together with the ministry of finance and the ministry of labour and social affairs, are the leaders of this process. We are coordinating our steps and we will table our reform legislation as was planned. At the moment, the external written comments to our law on health services and other supporting laws are culminating. Our amended law on public health insurance is in the first reading in the Chamber of Deputies; this amendment allows for the legal extra pay for the above standard care and operations for the first time, which is a great change compared to our current situation. At the beginning of next year we plan to put forward completely new legislation on the health insurance companies and public health insurance. The way that the different stakeholders support the reform is up to them. You are, however, right in that in the memorandum which the ministry of health concluded with the doctors´ trade unions last year, these organisations voiced their support for the reform and to the anticorruption measures. By the way – we presented our anticorruption strategy at the end of January this year. It newly regulates specific measures within the very ministry, and in relation to the university hospitals.

Currently, we also want to regulate the issue of so called foreign congress tourism by the amended law on advertisement regulation. The area of health care is unfortunately being very much politicized

now, and bes now esid ides es the hea ealtlthh ca care re sta take keho hold lder ers´ s, the political parties and pressures have also entered the stage. Therefore, it is not easy to push through an overarching reform, and that´s why we want to present individual steps, one by one, so that they stabilize the whole system. We want to allow for legal extra pay for care, to introduce commercial insurance, and we want to discuss the exclusion of the cheaper medicaments and selected operations from the public insurance coverage. There should be a political consensus on of all these steps. We want to reinforce the patients´ and insurance beneficiaries´ rights so that they become clients in this system, not only recipients of services and care.

The government promised a complex health care reform to be presented in the summer; now you mention that the reform will go step by step, and that some of the new legislation will be initiated only at the beginning of next year. Are you worried that some aspects of the reform might fall victim to the current political situation that can turn unstable?

The first major package of reform law will be presented to the government at the beginning of June.

These are totally new laws and one of them – the law on hhealth l h services i andd its i conditions di i – will ill replace l the Law on health care from the 1960´s, which is already out dated in many aspects. We want to replace this law with a modern codex that would embed several new patients´ rights, simplify the process of registration for health care facilities, and adjust the health information registers. This will allow for better transmission of information and data in our health care system, and for further reinforcement of the whole e-health project. The health care providers, insurance companies, regions and ministry of health will thus have valid information, and based on that, further decision-making capabilities on future strategic issues. Furthermore, we want to propose some of the stabilization measures to be applied next year. If the political situation does not allow for the government to function on the basis of a parliamentary majority during the second half of the year, the destiny of these laws – even if tabled in summer – would be difficult. This government was composed for a four year-term, and not all can be delivered during the first year of governance.

However, I insist we will prepare and present the essential reform laws this year, including the law on health insurance companies and public health insurance. We will also prepare a self-standing law on the prices and refunds of pharmaceuticals. We want to work in such a way that all reform legislation will come into effect by January 1st 2013 at the latest.

So this means they have to be endorsed during the first half of this government´s tenure. If this proves to be impossible, a compromise will have to be sought, but it would be a rather political issue.

Some commentators claim that the effort to reform health insurance companies will be the cornerstone of the reform. Do you agree?

We want to equip health insurance companies with brand new roles and competences. If the insurance companies have the opportunity to influence purchases, organisation, and the provision of health

care, an care andd if there is a simult i ltaneous responsib ibility of the members of their different bodies, working together according to their nominations and appointments, it would bring de-politicisation and an increased effectiveness of the decision-making within the health care system. I have to stress that we would at the same time promote better oversight and control over insurance companies by the state. There are many interest gr g oups p , economic groupps and ex e pe pert rt groups active within the health care system, and their interests vary. Patients´ and insurance beneficiaries´ interests are a priority for the ministry, and it is good that there would be a subject responsible both to insurance beneficiaries and health care providers. Some of the systems applied abroad show that the role of insurance companies has been strengthening. The task of the state is to perform an enhanced oversight of them – no matter whether via special authority for oversight of insurance companies’, or via the ministry of health, which would increase the transparency of the management of the health care system. There is a general impression now that the ministry is responsible for all health care provided, and for its refund, but this is not the case. So we are ready to negotiate on this reform, but if we should h ld bbe afraid f id to submit b i the h steps lleading di to a change of the system, because of the fears of some interest groups, we could never move ahead.

Some of the insurance companies do not enjoy a very good reputation with the public. Do you think that there is room to use this issue for further clashes over the reform?

The major problem will be to find a consensus in this heightened political atmosphere. If the political parties manage to balance their distance from individual interest groups, we can succeed; if not, and they give in to certain influences, pushing one group on the expenses of another, it will be very difficult.

Our concept suggests a significant de-politicisation, both on the side of health care refunds, as well as, for example, in relation to the university hospitals.

We are working on introducing a different framework similar to what some European countries have – i.e. one overarching institution that embraces health care, education, post-graduate education and scientific research. We want the university hospitals reformed along this concept, and to turn them into sui generis non-profit organisations, where the state couldn´t decide any longer on human resource issues, and where a clear model of management, via executive or supervisory board, is introduced.

Is there a will on the side of the political parties to keep their distance from the interest groups?

I believe so, and all are declaring it. Every political party should be first and foremost interested in the patients, and to secure quality and accessible health care. What they have to find a consensus on is a standard and extra pay refund of health care – i.e. which operations, material and equipment will be shared by the party, or fully covered by the patients. This is the key, and has to be done this year, because the closer any type of elections become, the less the will of the political parties will be to agree on measures bringing about unpopular consequences. As minister, I also represent TOP 09, and

in the last elections we offered a programme of budgetary responsibility. We are ready to implement these measures and we believe that the rest of the ruling coalition will join us, so that its programme can be fulfilled.

You have been involved in local politics for a long time. Have you already planned to leave the executive branch and focus only on politics?

This Th is has now bee eenn my sec econ ondd te term rm of ac actitive ve par ar-ticipation in local politics, and I was running for mayor of Prague 4 on the list of TOP 09. Our result – second place with 26% of the votes – gives us the opportunity to lead the opposition, as we represent a major force with the City Council. I accept the agreement between the winner and the third party, i.e. ODS and ČSSD. It is, however, questionable as to what extent those parties profit from this coalition, but I believe Prague 4 really needs good opposition and we want to be fully-fledged, visible, and in most areas, also a constructive opposition. Politics at the local or municipal level is not that much ideologically oriented. We aim to point out mistakes made by the town hall leadership, but, on the other hand, we tend to contribute positively in some fields, e.g. health and social policy. In Prague 4 there h iis a llackk off long-term l care, andd we support building homes for elderly people. We have also been very constructive in terms of the conception of education, with regards to the demographic study surpassing one election term. Nonetheless, we have criticised the uneven distribution of subsidies by the city district, and the selling of municipal property for undervalued prices.

The ODS and ČSSD coalition has been experiencing a certain crisis on the City of Prague level. There are rumours about its collapse too. Is there any similar kind of development in Prague 4, or in the links forged during the previous tenure?

I can´t see any signs of disputes. My task is to make TOP 09 win the next elections in Prague, and we will do our best to achieve it. We want to put ourselves at the centre of attention of those who dislike the ODS and ČSSD coalition in Prague 4. A lot of centre-right votes were disappointed by this union.

With roughly 140.000 inhabitants, Prague 4 is the largest Prague district, and in fact the fifth biggest city in the Czech Republic. We want to attract voters on our authentic centre right policies, but also simultaneously support the civic associations and interest groups of citizens who do not agree with the current approach of the municipality to some issues.

I also follow the developments in the Prague City Hall, where some discrepancies among the coalition parties are emerging; in fact, it rather seems that there are problems within one of those parties. If this coalition breaks-up, the negotiations would start again, and TOP 09 as the winner of the last elections in the capital should ge g t involved. But we´ll see how the ruling coalition in Prague manages this situation.

By Věra Řiháčková český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

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Alchymist Grand Hotel and Spa Alchymist Grand Hotel and Spa offers its guests a tranquil oasis dedicated to guests’ well-being and health in Prague. Escotica Spa & Health Club is the finest luxury spa, offering restful rejuvenation in unrivalled privacy and comfort, combining exclusive pampering treatments with extraordinary design elements. Our Ecsotica Spa includes five intimately furnished treatment rooms, of which one room is specially designed for couples to share their romantic experience. Guests can also enjoy a variety of Indonesian inspired signature health treatments, ranging from deep muscular massages and relaxation aromatherapy to bathing rituals to detoxifying wraps and Darphin facials provided by a gracious team of Balinese therapists.

Alchymist Grand Hotel and Spa is a spa hotel in Prague that expands the hotel experience into a new realm of experience.

Whether or not you were originally interested in spas in Prague, one thing is for certain – upon staying with us, you will have the opportunity to improve your overall wellness in Prague, through the massages we offer and dozens of other procedures.

In addition to representing a leading spa hotel in Prague, where it is possible to obtain one of the best massages in Prague, Alchymist Grand Hotel and Spa also offers a fully equipped gym situated in a unique gothic cellar. The health club is complimentary for hotel guests; is air-conditioned and features Technogym cardio and weight fitness equipment.

The health club includes a private pool and relaxation area, separate locker rooms and dry and steam saunas. Monthly or annual membership for non-hotel guests includes member discounts on Ecsotica Spa treatments.

Ecsotica Spa and Health Club At Alchymist Grand Hotel and Spa Tržiště 19, Prague 1 www.alchymisthotel.com tel: +420 257 286 011 Opening hours: Ecsotica Spa: Daily 9:00–21:00 Health Club: Mon–Fri 7:00–21:00 Sat–Sun 8:00–21:00

Technogym cardio and weight fitness facilities ilities Separate locker areas with saunas Steam bath Swimming pool Relaxation area

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discussion event EUROPEAN LEADERSHIP & ACADEMIC INSTITUTE P R A G U E

From left: Tomáš Sedláček, Chief Macroeconomic Strategist of ČSOB and Member of the National Economic Council of the Czech Government (NERV), H.E. Norman L. Eisen, Ambassador of the United States of America to the CR, Irena Kalhousová, Co-Founder and Program Director of European Leadership & Academic Institute (ELAI), Chief Analyst at Prague Security Studies Institute (PSSI), and Lukáš Sedláček, Co-Founder and Executive Director of European Leadership & Academic Institute (ELAI), President of Oxford & Cambridge Alumni Society Czech Republic (OCAS)

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ELAI WITH AN IRON FIST

Against Corruption in Politics: How to Apply Ethical Standards in Unethical Environment?

On the 16th of May, the European Leadership & Academic Institute (ELAI) had a unique opportunity to host the U.S. Ambassador to the Czech Republic Norman L. Eisen, who addressed the topic of ethics in politics. One of the main goals of ELAI is to facilitate debates on various issues that are important for Czech society. Mr. Ambassador was prepared for a lively debate and mutual exchange with the audience. He presented his three-step program on zero-corruption tolerance, as it applies to the Obama administration. The following debate was very fruitful given the fact that ELAI brings together people of different backgrounds who want to play an active role in society, and who look for inspiration on how to improve the current troublesome situation in the Czech Republic. After the debate, the discussion continued over a glass of wine. The premises of the HUB, where the event took place, provided an excellent venue for further exchanges of personal views, experiences and contacts. It was a unique opportunity for representatives of multinational corporations, small and medium enterprises, diplomats, journalists, NGO experts and public sector officials to meet. Given the high turnout and interest, ELAI plans to continue organizing similar sessions. Apart from discussions, ELAI also offers a wide variety of special training programs designed for current and future leaders. These workshops are led by people who are successful in their professional lives and who are willing to share their knowledge and expertise.

Photos: Štěpán Bärtl

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H.E. Norman L. Eisen, Ambassador of the United States of America to the CR

From right: Irena Kalhousová, Co-Founder and Program Director of European Leadership & Academic Institute (ELAI), Chief Analyst at Prague Security Studies Institute (PSSI), Tomáš Sedláček, Chief Macroeconomic Strategist at ČSOB, Member of the National Economic Council of the Czech Government (NERV), H.E. Norman L. Eisen, Ambassador of the United States of America to the CR, and the audience

How Much Is a Facebook Fan Worth?

Emil Jimenez started working in the communications industry in 1998 as a web designer in NYC. After graduating Rutgers University with a degree in Psychology he moved to Miami where he continued his education and received a Masters in Creative Communications from Florida International University and the renowned Miami Ad School. Mr. Jimenez has worked for United Bank of Switzerland, Citibank, MTV Latin America, Leo Burnett Budapest, Leo Burnett Prague, Lowe worldwide Prague and has recently opened Passion Communications. Passion Communications is a full service communications agency which specializes in bridging traditional media with the digital world. emil@passioncommunications.com For marketers the value of a Facebook fan can either mean the value of the actual sales he provides, or his value as a research resource tool.

Here we have two distinctions that greatly influence how brands evaluate their social media profit. Most brands that see their fans as merely research tools, base their value by solely evaluating the amount of impressions they acquire in the news feed of each daily post. This however comes to a somewhat unrealistic number.

Social media marketing company Vitrue has determined the annual average value of a Facebook fan using the aggregated fans of their client database. This mathematical formula is based on the number of impressions per daily brand post and the pricing for banner advertising on Facebook. The formula states: 1M impressions x 2 posts x 30 days = 60M impressions 60M impressions/1000 x $5 CPM = $300,000 $300,000 x 12 months = $3.6M $3.6M/ 1M fans = $3.60.

Photo: Brian Fleming

It is undeniable that Facebook is a dominant part of a marketer’s toolkit. From major brands to small businesses, everyone is using this social media platform as a reliable marketing weapon to reach a broader universe of potential clients, and there-fore to increase their overall profit.

Since brands started using Facebook for marketing purposes they have asked themselves, “What is the value of a single Facebook fan?” Much debate has spawned from this, and to this day the question remains without a universally accepted answer.

Social Media Measurement is nothing more than a new phrase within the marketing vocabulary. Measuring the actual value of Facebook fans can pose itself as a somewhat bitter predicament for more than one reason. The first hurdle one must face is to define what “value” means for a brand. This in itself always brings multiple definitions that can vary depending on each person.

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Although valid and a good start, this approach has been proven wrong, simply because even though you can put a price on each fan, brands that properly use Facebook know that a fan can bring them benefits that go way beyond simple information for the research department. According to Josh Constine of Inside Facebook, companies should consider at least four factors when asses-sing the value of a fan: The profit factor, t th the inflfluence factor, t th the brandd affi f finitit y factor and the acquisition cost factor. According to social media monitoring company Syncapse, a fan of a brand will spend $71.84 dollars more on a brand per year.

Furthermore, 28% are more likely than nonfans to continue using a specific product. Therefore it is not surprising that fans will also be more likely to recommend the brand to family and friends. The question still remains, how much is all that worth, and at what point does it even out with the cost per acquisition (CPA).

The CPA must exist within the marketing department budget, and is difficult to calculate solely on banner ad media spending. Michael Scissons, president of Synapse, in an MDG Advertising interview states, “The cheapest fans to

Photo: Archive

acquire are the ‘superfans’ who will seek out your brand just because they love what you do.”

There are two main problems that don’t allow us to properly calculate the value of a fan. The first is that fans can also like your competitors.

That makes it hard to evaluate the actual sales value and know which brand is “stealing” fans from the other. The other problem is that there is a great disparity between the average interaction of a fan in social media. Therefore, each fan must be given a different value. Social media monitoring company, Radian 6, attempts to segment people into categories, one of them being “high influencers.” These are people who regularly interact in social media and have a high following.

In conclusion,, althouggh we know that a Facebook fan on average brings more sales value to a brand than a non-fan, reaching an accurate value is still utterly impossible. Social media marketing is like any other branch of marketing.

Companies must approach campaigns with a plan of action. The twist lies in that they must also have a plan of reaction. Things move at a lighting pace within social media and marketers must adapt accordingly. The true value of a fan lies in the conversation a consumer has directly with the brand. Conversation leads to friendship, friendship to loyalty, and loyalty to shared value. This notion of shared value is great because as a brand, you must also ask yourself, what value do we have to our fans?

By Emil Jimenez and Hugo Crispim

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Business May Be Your Life – But – Life Is Your Business Part X: Inspirational Leadership® Inspire: Self – Others – the World: Part 2A, B, C

James A. Cusumano, PhD

“Wealth, like happiness, is never attained when sought after directly. It comes as a by-product of providing a useful service.”

Henry Ford KEY CONCEPTS: Organizational leadership is rapidly evolving to a new way of thinking and being in order to manage the global challenges and opportunities of an increasingly complex and interconnected society.

Created and popularized by Dr. Lance Secretan, Inspirational Leadership® succinctly embraces and addresses this transition.

Inspirational Leadership® is based on the CASTLE Principles, an acronym for Courage, Authenticity, Service, Truthfulness, Love, and Effectiveness. When internalized and practiced proficiently, these principles form the basis for creating an organization that is personally rewarding, commercially advantageous and socially responsible1).

CASTLE PRINCIPLES In Part 1 of this article, I presented the concept of the CASTLE Principles. The word CASTLE is an acronym developed by Dr. Lance Secretan for Courage, Authenticity, Service, Truthfulness, Love, and Effectiveness, the key elements that underpin all Inspirational Leadership®. We explored the role and power of Courage and Authenticity in leadership and how they are an integral part of the foundation of Inspirational Leadership®. In Part 2, we now describe the importance of Service, and Truthfulness. The last two attributes – Love and Effectiveness – are presented in the next and final article on Inspirational Leadership®.

SERVICE Albert Einstein was an avowed atheist – and yet, a spiritualist, as well. How could this be? He was an atheist, because he did not believe in God as defined by organized religions. He was a spiritualist because he did believe in an unknown and as yet, undefined “Force” or entity – perhaps a “First Force” – that permeates the cosmos and is responsible for, and hopefully could explain, all physical and nonphysical phenomena2. He spent the largest part of his professional life at the Institute for Advanced Study in

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Princeton, New Jersey, trying to unify his theory of relativity with quantum physics in hopes that he just might get a sense for this entity. Today, some of the most renowned physicists are still looking to discover this “First Force.”

They call their quest, the search for the “Theory of Everything.”

Although Einstein was one of the founding fathers of quantum physics, he felt it was an incomplete theory with “hidden variables” as yet undiscovered by science, and which, once uncovered, would explain all of the apparently “mystical” quantum phenomena that permeate our universe. This is what he meant when he said, “I want to know the mind of God; the rest are just details.”

If you dig further into Einstein’s philosophy and science, it is no surprise to find that he felt the fundamental purpose of life is service – “Only a life lived for others, is a life worthwhile.” In a similar way, John William Gardner, author of “On Leadership,” Secretary of Health, Education and Welfare under U.S. President Lyndon B. Johnson, President of the Carnegie Corporation and founder of Common Cause and Independent Sector,r also noted that “When people are serving, life is no longer meaningless.” And as the quote at the beginning of this article succinctly demonstrates, even successful corporate titans such as Henry Ford, founder of the Ford Motor Company, recognized the power and potential of service (Figure 1).

Why is it that wise thinkers such as Einstein, Gardener, Ford and many others all came to this common conclusion – Life is all about service? There is strong evidence that they ultimately concluded that all people, and in fact all things in the universe, are to varying degrees, connected3.

Service recognizes that this interconnectedness or oneness provides a powerful synergy, and the possibility of a great return to all stakeholders. I will use my current experience with Chateau Mcely as an example.

Chateau Mcely (pronounced “meh-selly”), located an hour’s drive from the center of Prague in the midst of the St. George Forest, is a five-star, castle-hotel, executive retreat and spa. It is the former rural manor of the famous ThurnTaxis aristocratic family, whose fortune came by founding the postal system in Europe during the Middle Ages. The chateau is a member of Small Luxury Hotels of the World and was voted by Dolce Vita Magazine as the “Best Boutique Hotel in the Czech Republic.” In 2006, the year that total renovation was completed and Chateau Mcely opened for business, it won first place in the “Best of Realty” for sensitive restoration as a heritage property.

The Chateau Mcely team, led by Managing Director, Vlastimil Plch and his management team, embraces and summarizes its professional sense of purpose as follows: WHO WE ARE Our Vision: To make a difference in the world by making a difference in the lives of our guests & fellow teammates

Our Mission: To support our guests and teammates towards their highest personal potential with an environment that balances body, mind, and spirit Our Promise: To provide our guests with the highest level of service and comfort Our Picture: A cozy, relaxed, friendly atmosphere with the service of a leading five star hotel Our Dream: To continuously re-create Chateau Mcely to honor, serve and touch the hearts and souls of our guests and fellow teammates, providing them with a sense of personal satisfaction, hope, and excitement for the future Our Values: 1. We continuously surprise our guests.

2. We practice integrity and mutual respect in all that we do.

3. We seek and appreciate feedback from our teammates and our guests.

4. We seek the Joy of Life for our guests, our teammates and ourselves.

5. We solve problems together.

6. We are a learning organization.

7. We focus on the Triple Bottom Line – People, Planet, Profit.

8. We work as a family.

Only our vision and mission were developed by the executive management team. Our promise, our picture, our dream, and especially our values, were developed by our employees.

They are reviewed every year by the employees and have remained the same since we opened Chateau Mcely.

A)

EDITOR’S NOTE – This is Part X in a series of articles based on the author’s experience as an entrepreneur, having founded several successful businesses, including Catalytica Pharmaceuticals, Inc., a billion-dollar public company.

His business experience base spans “5 lives” – A multimillion record sales recording artist; R&D Director for Exxon; Chairman & founder of 2 public companies; CEO, founder and Executive Producer for Chateau Wally Films; Chairman & Owner of Chateau Mcely, an international award-winning luxury hotel & SPA. This article is extracted from his latest book, presently in preparation and entitled, “My Little Book of Business – Tales of Purpose, Passion & Enterprise.” Parts I–V of this series deal with “Creating A Fulfilling Life.” Part VI addresses “Building A Successful Business,” and the current series focuses on Conscious Capitalism and Conscious & Inspirational Leadership as a means to lasting fulfillment in life and success in business.

B) The author may be reached at Jim@ChateauMcely.Com. C) Part 1 of this article appears in the previous issue of LEADERS Magazine. Part 3, the final part, appears in the next issue of LEADERS Magazine.

TO BE CONTINUED...

Figure 1: Henry Ford, founder of America’s most successful automobile Company found that service was a fundamental factor to his success

Once you have digested this summary of “Who We Are,” there is no doubt that if the members of the Chateau Mcely team truly believe in and follow the above vision, mission and values, then they are unquestionably committed to serve all stakeholders. Perhaps, this is why a visit to the discriminating on-line travel guide, TripAdvisor website at www.TripAdvisor.Com shows at this moment in time, 74 reviews, 70 are Excellent and 4 are Very Good. These reviews are unprecedented for most luxury hotels, which is why you will see the following guest quotes among them – ““An absolutely wonderful experience!” – “The most relaxing and carefree weekend I’ve ever had!” – “A great place to relax with an amazing staff!” – “Chateau Mcely – The best five star hotel I’ve stayed in!” – “Exquisitely conscious and comfortable on all levels!”

These accolades and awards do not happen by accident. They also do not result from Chateau Mcely employing the most talented staff in the Czech Republic – although to be sure they are intelligent, capable and personable.

This outcome is based on conscientious hard work and a total commitment to service throughout the organization. Vlastimil Plch and his management team work with each of the team members from the moment of their employment and thereafter. Employees build their commitment to service by Chateau Mcely providing them with the most effective tools to do their job well, and an environment that fosters their personal and professional growth. This enables them to most effectively serve our guests, their fellow team members, our community, and in fact all of the stakeholders connected to the Chateau Mcely adventure.

We do this by minimizing all forms of internal competition, which we see as the antithesis of service. We support a culture where team members listen to understand and not just to hear each other. Most business partnerships and even marriages fall apart when there is no longer a focus on listening with understanding and compassion.

At Chateau Mcely, there is no fear of retribution for mistakes, and this component of our environment is reinforced by Vlasta, who has no hesitation to admit to his own mistakes or to change course, when one of his decisions is found to be ineffective. There is a sense of compassion, family and sharing. We build on this sense of service by demonstrating trust. We disclose to all employees our financial goals and progress and at the end of the year we share with them a significant fraction of our profit.

All of this is not say that Chateau Mcely is without its personnel challenges. We have had our share of them.

Although we work intensely to try to hire the right person for the right job at the right time, we sometimes make mistakes. We try to minimize these challenges by an extensive

interview process and testing by an outside human resource firm. It’s in the best interest of Chateau Mcely and the interviewing candidate. When we do make a mistake, the person hired usually feels uncomfortable in our environment and leaves of his or her own accord. Or, the employee feels pressure from other members of the team, and decides to leave. If neither of these mechanisms occurs, we counsel the employee in a most compassionate manner to find another employer.

Commitment to service has an incredibly powerful outcome. Employees are fostered and enlightened into a creative stance that enables them to solve challenging problems, work extremely efficiently, and develop an increasing commitment to all corporate stakeholders.

Service is one of the strongest indicators of highly effective and accomplished enterprise.

TRUTHFULNESS It’s difficult, and often disappointing or embarrassing to always tell the truth. Ultimately, however, telling the truth imbues in the teller an unparalleled power of persuasion and strength, and in the listener, unwavering commitment to the teller. This is because, deep down, we all seek unconditional trust and truth and it’s not easy to find. Just read the political news or turn on the television.

Figure 2: Surveys show that on average people tell 13 lies per week (Reference 3)

the film.” But, as I found out later by speaking with others at the party, this was not the case; most people simply did not want to hurts his feelings. But, that’s how our modern world moves. I doubt that we will ever be invited to another premier by my producer friend! As a postscript, and certainly not based on my critique, the film did poorly in the theaters.

In writing his book, “ONE—The Art and Practice of Conscious Leadership,” Lance Secretan found that research shows that people tell on average 13 lies per week, and that lying occurs in nearly two-thirds of our interpersonal conversations (Figure 2). Furthermore, about 75 percent of professionals “pump up” their resumes, and between 20 and 30 percent of business managers have written fraudulent internal reports4. But that’s not how great organizations work, those led by Inspirational Leaders.

Inspirational Leaders, regardless of whether it’s challenging or not to tell the truth, are intimately aware that the single most reliable predictor of employee productivity and satisfaction is TRUST! It is a definite competitive advantage in business. Inspirational Leaders understand the four ways to cultivate trust in their organization.

1. Excite all of their stakeholders with their vision and mission for the company.

2. Employees must understand, and to some degree, participate in developing the company’s strategy – at least that part which applies to successful accomplishment of their efforts.

3. Employees must intimately understand how their role can contribute to achieving the company’s goals.

4. Share with employees, the company’s progress and how their team is doing relative to their team goals, as well as to the company goals, and do so with impeccable truth.

Inspirational Leaders create highly effective, competitive organizations and a stimulating creative environment in which to work. As a result, employees see themselves as “bigger than life,” and they work that way. They also make our world a better place.

James A. Cusumano, PhD 1

My wife, Inez and I were recently invited by movie producer friends to the Los Angeles World Premiere of a much anticipated film by a new director. In my truthful opinion, after viewing the film, I felt it was “okay,” at best. We attended the premier party afterwards, and I was dreading the moment when someone might ask me what I thought of the film. How do you tell the truth without hurting those involved in making the film? The answer, of course, is that you can’t. But not telling the truth often hurts them more.

Then it happened. One of the producers approached me and asked, “Well Jim, what did you think?” I nearly froze with my words, but knew that I had to respond, and I wanted to do so truthfully. “Look,” I said, “I was in the film business for a brief stint of my professional journey, but I was blessed with incredible people around me to have the good fortune that occurred with “What Matters Most,” my first and only feature film. So, I’m really not a good judge of the quality of the film.” I rapidly scanned my memory for those aspects of the film that I honestly felt were quite good, and the continued, “I think the acting and the camera work were very good. The subject matter is of limited interest to me, so in total, I was not overly impressed. But, I’m probably in the minority; perhaps others will find it to be a fine film.”

My producer friend made it abundantly clear that I truly was in the minority and that everyone he spoke with “loved

Much of the substantive content of this article is based on the CASTLE PRINCIPLES, which have been developed by Dr. Lance H. K. Secretan. See for example, “ONE – The Art and Practice of Conscious Leadership,” The Secretan Center, 2006.

2 “First Force” is just a place holder referring to something that about 13.7 billion years ago gave birth to everything. It is likely not a force as we know it from classical physics.

3 James A. Cusumano, “Cosmic Consciousness – A Journey to Well-being, Happiness and Success,” Fortuna Libri, 2011.

4 Op. cit., Reference 1, p. 125.

About the Author: James A. Cusumano is Chairman and Owner of Chateau Mcely (www.ChateauMcely.Com), chosen in 2007 by the European Union as the only “Green” 5-star luxury hotel in Central and Eastern Europe and in 2008 by the World Travel Awards as the Leading Green Hotel in the World. He is a former Research Director for Exxon, and subsequently founded two public companies in Silicon Valley, one in clean power generation, the other in pharmaceuticals manufacture via environmentally-benign, low-cost, catalytic technologies. While he was Chairman and CEO, the latter – Catalytica Pharmaceuticals, Inc. – grew in less than 5 years, to a $1 billion enterprise with 2,000 employees. He is co-author of “Freedom from Mid-East Oil,” recently released by World Business Academy Press (www.WorldBusiness.Org) and the author of “Cosmic Consciousness – A Journey to Wellbeing, Happiness and Success,” published in English and Czech by Fortuna Libri, 2011.

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synot event

A new record was created IN VINOHRADSKÁ STREET!

THE EASTER PILGRIMAGE was Variegated by the Largest Easter Bunny More than 13,000 people attended the second edition of the Vinohradská Street Easter pilgrimage during the last Sunday in April. Its initiator is SYNOT Holding with the support of the Foundation for Children, Culture and Sport. The main topic of the weekend was the largest Easter Bunny. Thanks to its parameters it got into the Czech database of records and curiosities. “SYNOT Holding makes prompt efforts of folk customs and traditions preservation to future generations.

Especially Easter is one of the most important and beautiful cultural aspects in Slovácko. However, it slowly becomes a commercial issue. We have therefore decided to celebrate it in Vinohradská Street last year. Thanks to thousands of satisfied people, I believe we go on the right path,” said Ivo Valenta, the founder of SYNOT Holding.

There was also a competition of the most beautiful Passover. Dozens of housewives tried to be the best ones with their spring symbols. Easter celebrations in Vinohradská Street also included other parts of the culturally rich program. Children could try different kinds of games, competitions and surprises. Furthermore, everyone could participate in a crafts fair. In the evening the Vinohradská Street´s gate was opened for lovers of good food and wine. People could access the open wine cellars.

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spectacular weekend event

Patronage: His Imperial and Royal Highness, Arch. Duke Dr. Otto of Austria Organizer: Mr. Oron Michael Kalkert, Johanna Von Papen, and Michael Kindhal Program: Friday, April 29th, Dance into the weekend at Hotel Imperial Saturday, April 30th, Horse races “Der Grosse Preis Von Karlsbad” Saturday, April 30th, “The Spring Ball of Karlsbad at the Grand Hotel Pupp” Sunday, May 1st, Church sermon in the baroque church

From left: three organizers – Oron Michael Kalkert, Johanna von Papen and Michael Kindahl during the welcoming evening at the Hotel Imperial

TH

THE 15 KARLSBADER WOCHENDENDE 2011, KARLOVY VARY This is the 15th anniversary of an international business network which assembles every year in the Czech Republic to celebrate the Karlovy Vary weekend (April, 29th until May 1st 2011). After the opening of the border, the event was established by Oron Michael Kalkert who came to Karlovy Vary at that time to visit Hotel Pupp where his grandparents were engaged at the beginning of last century. The wonderful Maria Magdalena baroque church was built by Dientzenhofer, the master builder of that era, who was related to his family. For 12 years the event has been co-organized by agency-leader Johanna von Papen (Niveauconcepts, Munich). Michael Kindahl, the Swedish “third member” of the organization team, has been responsible for ten years for the international guest lists originally most of whom were of German origin. Nowadays 40 % of the 600 visitors come from all over the world. One of the sponsors of the colorful event, which is under the patronage of SKKH is Dr. Otto von Habsburg, town of Karlovy Vary. During the short “get-together” of entrepreneurs, CEO`s, owners and business managers from diverse sections of economy, medicine, finance, politics, culture etc. and in the footsteps of Queens, Kings and artists, everyone meets at the Hotel Imperial for the evening welcome, followed by a gathering at the historical grandstand at the race course, as well as participating at the ball in the legendary Hotel Pupp and the event is crowned by attending this year´s fancy dress party at Kaiserbad (Lázně) with the theme: “Feria de Abril”. The event supports the charity project “Innocence in danger” (www.innocenceindanger.de). “Innocence in danger Germany” is a German section of an international network working against online sexual abuse.

94 Bohumír Hájek, Conductor

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From left: Gesine Gold, Designer, Marlena von Bernstein, Painter, and Gabriella de Esteban, Freelance Conductor

The Lord Mayor of Karlovy Vary greets all the guests and organizers

Yves Meyer-Bulow with partner

From left: Dr. Martin Epple, Managing Partner, Talentspy, Katharina Jobe-Gräfin Esterházy, Managing Partner Europe, Fontainburg, and Johannes Graf Esterházy, Lawyer

Dance floor at Hotel Pupp. The preparation for a dance called Française.

From left: Harald Ecker and Tor Anders Petteroe, CEO Towah Group Ltd

Benke Aikell, your Publisher

H.R.H. the Crown Prince of Burma

Costume Ball “Feria do Abril Masquerade”

Isabel von Steinaecker, Geomodeler, Blueback Reservoir and Leopold Graf Sternberg, Lawyer

Gesine Gold, Designer and Dr. Thomas Keller, KELLER Capital Holding

Ing Petr Kulhánek, Lord Mayor of KarlovyVary and Mgr Barbora Kulhánková

Evening Ball

Hat Competition during the Race

Mr. Paul Fourrichon, Office EuropĂŠen des Brevets with his wife

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Natalia, Princesse Dadiani, Nicholas, Prince Dadiani and Commercial Director, Afisha Industries

The main race sponsored

by Towah Group Ltd.

Oron Michael Kalkert, Costume Ball

A LEADER! A LEADER! My Kingdom for a Czech Leader!

“AA lea eade derr is a dea eale lerr in hop ope. e.” Napo p leon Bonaparte might have said this phrase three centuries later than the moment when the mighty Shakespeare wrote his unforgettable historical tragedy Richard III in 1594. Yet, the two visionaries had something in common. They acknowledged the need for hope as an essential tool for any human guide. When one is looking at what has been going on in Czech politics for the last few months, stomachs churn with revolt and the mind refuses to accept the sheer reality that the Czech political sphere is not only burring the hope brought by the parliamentary elections of May 2010 – but the Czech political sphere is doing its best to bury the hope for a better future of a whole nation.

HUNGER TO BE THE SECOND In my effort to bring new trends in media relations to the Czech market, I am often confronted with the question: “Who else does that here? No one? Well, Well why don don’tt you come back when a few other companies do that and then we can talk about it?” This approach is most visible in social media communication. “Let the others do it first, and then we can do it. No rush. Why should I have to be the first?”

While I understand and respect the conserva conservative approach of the Czech market – an approach that is probably responsible for the economic stability of this market – I can’t hide the utter astonishment that I feel each time I receive this feedback. It’s as if we were looking at the glass from two totally different points of view: one that sees the troubles and challenges and fears, and the other that sees the opportunities hidden in

Cristina Muntean is a journalist and media advisor with more than 12 years of experience in the Czech, Romanian and international media.

In 2005–2010 Cristina worked for the Englishlanguage economic magazine Czech Business Weeklyy (CBW) in Prague. During this time she wrote more than 3,000 news articles, features and interviews. She graduated in journalism from the University of Bucharest, Romania. She also holds a master’s degree in project management. Currently, Cristina provides media training, coaching and advisory to managers, communication specialists and public officials across Central and Eastern Europe. Cristina speaks Romanian, French, English and Czech and can be reached at cm@mediaintel.cz.

IN PARTNERSHIP WITH LEADERS MAGAZINE

beiingg th thee fifirs rstt. It fe feel elss bi bitt tter er, to be ho hone nest st..

What’s wrong with being the first? What’s ’ wrongg with doing things and learning and gaining irreplaceable competitive advantages out of the pure courage of having dared to do things differently? What’s wrong with being a leader?

DAD DOES IT, SO YOU’LL DO IT TOO Tired of such questions, I leave the business battlefield to go for a glass of wine with my Czech women friends. I indulge in social conversations that have nothing to do with business – and it’s refreshing. They all have small babies and we most often talk about what’s new in terms of baby food and sport and education. When it comes to their relationships, my friends have words of praise for their male partners, but often they also have issues and complaints that they vent in the safety of female complicity. My surprise comes not from the complaints – if we women were gifted with angels in man suits, we would still complain t e wings the gs are a e too bigg for o the t e shirts s ts and a need ee extraeta ironing. My surprise comes from the fact that my female friends, even though often disappointed and exasperated with their partners’ behaviors, raise their sons along the same line of thinking.

I have seen very few women who put an accent on the emotional balance of their sons, and let them cry if they want to, as opposed to believing that “boys don’t cry.” I have met very few women willing to invest time to explain the importance of image and partnership to their sons. I have met such few women willing to raise their sons differently than their fathers. As if the fear of having children that are different would paralyze my female friends, they step on the familiar path and raise boys that will give the same headaches to their daughters-in-law as their husbands are giving them now. The few exceptions are the more to be cherished and publicly praised.

NOT ME. I’LL BE PUNISHED FOR IT. The two examples have one element in common – the fear of being different, of being the first. I’m tired of this sentence, but 21 years after the fall of communism in the Czech Republic, many people are still afraid they could be punished for standing out from the crowd. “All of thee gr th grea eatt le lead ader erss ha have ve had one cha haracteri t istitic in common: it was the willingness to confront unequivocally the major anxiety of their people in their time. This, and not much else, is the essence of leadership,” said John Kenneth Galbraith. So, I’m wondering: do we have leaders today in the Czech Republic? Do we want to have leaders in the Czech Republic? Or are we too afraid of those

Photo: Jakub Stadler

who’ll stir the waters and might show us that things can be done differently, better, with more care and more connection between our minds and our hearts?

BACK TO BUSINESS To go back to the issue of hope, being positive is essential in the Czech business environment.

Let me give you a taste of that. that How would serser vices in Czech hotels, restaurants and public transport look if a few managers dared to stand up and say: we respect our clients and we treat them as we’d like to be treated? How would the political scene look if more politicians dared to stand up and spend their time on ruling the country and not on governmental intrigues?

How would the Czech media scene look if more journalists stood up and said: enough with media managers who get catapulted to top positions God knows how, we want to be properly trained and write meaningful stories for our public? How would the Czech business scene look if more managers would say: we care about our image, and we take the image of our company personally because we want to make a difference? How would the Czech Republic look running at full speed, and releasing its tremendous potential, if all those people united their voices to show sh ow the way ahheadd for thi his country? y? Jus ustt si sitt down for a minute with that illusion. And then ask yourself: why not stand up and dare to be different right now?

By Cristina Muntean ■ český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

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prestigious awards event

Alena Hájková, winner of the contest to design the Insurer of the Year 2010 prizes, receives her award from Ing. Zdeněk Voharčík, AČPM Chairman and Ing. Zdeňka Indruchová, AČPM Executive Director

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AWARDS 2010

INSURER OF THE YEAR

presented by the Association of Czech Insurance Brokers (AČPM) and the Czech Insurance Association (ČAP). The oldest contest within the Czech insurance market entered into the second decade of its existence at a gala evening held in the new building of the National Museum in Prague on May 10, 2011, under the auspices of the Czech National Bank governor Miroslav Singer. Out of the total five assessed categories, Kooperativa pojišťovna won four, while Evropská Cestovní Pojišťovna has reconfirmed its previous three-year´s victories in the specialized insurance category.

Nearly three hundred VIP guests gathered in the former Federal Assembly Hall to watch the award-giving ceremony for 2010, opened with a speech by the ČNB vice-governor Prof. Vladimír Tomšík.

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more photos and electronic version available on www.leadersmagazine.cz

Insurer of the Year – Life Insurance. From left: Petr Vondráček, Musician and Actor, Master of Ceremonies for the gala evening, Petr Kučera, Executive Director, Czech Credit Bureau and Partner of the contest, Ing. Konštantín Alexejenko, Deputy CEO, speaking on behalf of the category winner Kooperativa pojišťovna, RNDr. Petr Zapletal, CEO, Pojišťovna ČS (2nd place), Ing. Lucie Urválková, Board Member, UNIQA pojišťovna (3rd), and Ing. Ivan Paparega, AČPM Vice-Chairman.

From left: Ing. Jiří Polák, Executive Director, CaCio and Doc. Ing. Antonín Indruch, Academy Board Member, Vysoká škola hotelová Praha

Kooperativa pojišťovna as „absolute winner“.

From left: Michael Neuwirth, Director, Konštantín Alexejenko, Deputy CEO, Martin Diviš, CEO, and Milan Houžvic, Director.

From left: RNDr. Petr Zapletal, CEO , Pojišťovna ČS, Ing. Marek Venuta, Personality of the Insurance Market 2008, and Ing. Martin Žáček, CEO, Uniqa pojišťovna

Category Insurer of the Year – Specialized Insurance. From left: KUPEG úvěrová pojišťovna received bronze (Ing. Milan Veselý, CEO), Atradius Credit Insurance silver (Ing. Kateřina Nováková, Deputy CEO) and the gold “cushion” went to Evropská Cestovní Pojišťovna (JUDr. Vladimír Krajíček, CEO). On looking Michal Janatka, Division Sales Manager, Ness Czech (partner of the contest) and Ing. Ivan Špirakus, AČPM Vice-Chairman.

The glass prize designed by UMPRUM student Alena Hájková. It represents a cushion, the idea behind the slogan “When you are insured, you can sleep well”

As in previous years, the brokers also voted for “Personality of the Insurance Market” – a title awarded for an outstanding contribution to the development of insurance in the Czech Republic. This time the lot fell upon PhDr. Vladimír Přikryl, renowned specialist in private insurance legislation. Furthermore, AČPM announced the winner of its contest among UMPRUM (Prague Art University) students to come 99 up with an original design for Insurer of the Year 2010 prizes. The award went to Miss Alena Hájková, whose glass “cushions” highlighted the gala evening.

The “Personality of the Insurance Market” title went to PhDr. Vladimír Přikryl, Ministry of Finance. He is congratulated by Prof. Vladimír Tomšík, ČNB Vice-Governor.

From left: Ing. Jaroslav Besperát, CEO, Česká podnikatelská pojišťovna and Ing. Zdeněk Voharčík, AČPM Chairman

View of the auditorium – from left in the 1st row: Ing. Vladimír Mráz, Personality of Insurance Market 2007, RNDr. Jakub Strnad, Board Chairman, Allianz pojišťovna, and Ing. Pavel Prokš, Director, Vehicle Insurance Section, Allianz

Ing. Lucie Urválková, Board Member, Uniqa pojišťovna, celebrated her birthday on the same day. She is pictured with Ing. Ivan Špirakus, AČPM Vice-Chairman.

Ing. Kateřina Vášková, Business Director, OPojištění.cz and Michal Řezníček, MBA, Senior Director, Česká pojišťovna

From left: Prof. Vladimír Tomšík, Vice-Governor, ČNB and Ing. Zdeněk Tůma, former ČNB Governor, now Advisor, KPMG Czech Republic

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Insurer of the Year...

Marta Švecová, Director, Generali pojišťovna and Ing. Stanislav Hlavatý, CEO, Čásenský & Hlavatý Insurance Broker

Commercial Lines Category. From left: Petr Vondráček, Moderator, Ing. Martin Diviš, MBA, CEO, Kooperativa (winner), RNDr. Jakub Strnad, Board Chairman, Allianz (3rd place), Paride della Rosa, CEO, Chartis Europe (2nd), Ing. Konštantín Alexejenko, Deputy CEO, Kooperativa, Romana Benešová, Partner, KPMG Czech Republic (general partner of the contest), and Ing. Zdeněk Voharčík, AČPM Chairman.

The IMPULS foundation is the only institution in the Czech Republic supporting the treatment, research and education of multiple sclerosis.

The profits from this year’s concert will be used for salaries of psychotherapists and physical therapists in the MS specialized centers in Prague and Pilsen.

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event

Miroslav Hrabě, Presenter and Jana Vojáčková, Executive Director, Impuls foundation

The Beneficial Concert

FOR THE IMPULS FOUNDATION WAS HELD AT THE BETHLEHEM CHAPEL IN PRAGUE ON THE 7TH OF APRIL, 2011 more photos and electronic version available on www.leadersmagazine.cz

From left: Lukáš Kaláb, Ing. Kateřina Bémová, Chairwoman of the Board, Impuls foundation, and Prof. MUDr. Eva Havrdová, CSc, Head of the MS Center, Karlovo náměstí 32, Prague 2

Hana Robinson, Jazz Singer and graduate of the prestigious Berklee College of Music in Boston

Jewellery by Mgr. Lenka Matoušková will be auctioned for the benefit of patients suffering from multiple sclerosis

Klára Krouzová is suffering from multiple sclerosis

From left: Mgr. Martin Hanibal, medical social worker specializing in multiple sclerosis, Daniela Bláhová, first women in the world using a wheelchair with multiple sclerosis who conquered Kilimanjaro, and Karel Hrkal, the chief of Unie Roska in the Czech Republic

interview

Martin Smolek Agent for the Czech Republic before the Court of Justice of the EU Photo: Ministry of Foreign Affairs archive

THE COURT OF JUSTICE of the European Union, from Timely Prerequisites to Better Quality Legislation

A talk with Martin Smolek, Agent for the Czech Republic before the Court of Justice of the EU Martin Mart in Smo mole lekk (1 (197 976) 6) was bor ornn in Čes eské ké Bud uděj ějov ovic icee, Sou outh ther ernn Bo Bohe hemi miaa. He gr grad adua uate tedd fr from om the Facultlt y off Law att the Charles l University in Prague in 2000, and in 2001 graduated in the LL.M. program at the Faculty of Law at the Humboldt Universityy in Berlilin. In 20 2000 00 he started to work in the Unit for Law Approximation in the Ministry of Environment, in 2001 he joined thee Mi th Mini nist stry ry of Fo Fore reig ignn Af Affa fairirss wh wher eree he wor orks ks unt ntilil now. He was appoiinttedd by th the government as the Agent before the Court of Justice of the European Union in 2008. Martin Smolek is married and with his wife Eva they have a daughter, Barbora.

What is your view on the role of the Court of Justice of the European Union?

The question should be seen from two different perspectives – the role in the sense of a position of the Court of Justice among the other EU institutions and the role in the sense of the Court’s own activity.

As far as the first perspective is concerned, the position of the Court among the other institutions is clearly laid down in the Treaties – it is a judicial body similar to the highest ju j dicial bodies of Member States. Its roolee should not be overestimated (by saying e.g. that it is “the real engine of European integration”), but also not underestimated (its case-law, having in contrast to the European Court of Human Rights in Strasbourg binding character on everyone in the same or similar position, directly influences daily live of European citizens).

As regards the second perspective, the Court’s duty is – simply said – to resolve disputes on one hand and interpret the EU law on the other. The second part – the inte in terp rpre reta tatition on – is do done ne by th thee so cal alle ledd pr prel elim imin inar aryy ruliling ru ng pro roce cedu dure re whi hich ch,, in my vi view ew,, pr prev evai ails ls as to the importance for the EU lega g l sy syst stem e ove verr th thee di disp sput utee resolution function.

The Court of Justice of the European Union is often accused of creating innovative principles of law that are bringing a different light on existing directives.

This leads to various interpretations of the aforementioned directives and applicability of laws. Have you experienced such instances?

That is a very good and tricky question at the same time. The Court is indeed sometimes criticized for what is known among lawyers as “judicial activism”.

Of course, there are cases where to Court went evidently beyond the original intention of the EU legislator. Nevertheless, for many reasons, the intention of the EU legislator is often formulated so vaguely that the Court – since it has no choice but find a solution to the dispute before it – has no other possibility than to fill the gap by creating a seemingly new rule.

What developments do you see in recent decisions of the Court of Justice of the European Union?

Each area of law (consumer protection, public procurement, competition etc.) has its own judicial development, so that the question cannot be answered in general.

What will probably heavily influence the jurisdiction of the Court of Justice in horizontal terms in the future is the accession of the European Union to the European Convention on Human Rights. Much will depend on the mechanism of the mutual cooperation between the Strasbourg and Luxembourg Courts, which is currentlyy under discussion on both the EU level as well as within thee Co th Coun unci cill of Europe.

There are still lots of problems to solve before the free movement will work flawlessly within the Union.

What is, from a juridical point of view, the most urgent problem to solve?

Each area of the four freedoms (free movement of persons, goods, services and capital) has its own problems which regularly appear before the Court. For example, as far as the freedom of movement of persons is concerned, many difficult questions still arise from the Regulation on the application of social security schemes to employed persons and their families moving vi ng witithi hinn th thee EU (Re Regu gula latition on No 14 1408 08/7 /711, rep epla lace cedd recentlyy byy Regu g lation No 883//2004).) Ano noth t er exa xamp mple le from the area of free movement of goods: Members States restrict free circulation of certain goods in their territory often with a justifiable intention to protect public interest (as it was the case in the very recent judgment Josemans, where the Court ruled on possible restriction on the sale of the so-called light drugs in the Netherlands). The difficult question the Court is confronted with in these cases is the assessment of pro ropo port rtio iona nalility ty of re rest stririct ctiv ivee me meas asur ures es in qu ques estition on..

In what ways has the Czech Republic’s presence improved the legal system within the European Union?

Similarly, we could ask in what ways the presence of the Cze zech ch Rep epub ublilicc as suc uchh im impr prov oved ed the fun unct ctio ioni ning ng of the EU. The que uest stio ionn ca cann nnot ot be an answ swer ered ed in ge g neera ral – we could discuss about contribution of the Czech Republic, or, to be more precise, of particular line ministries and their representatives within the different formations of the Council of the EU. For example, the Ministry of Justice presented during our presidency in 2009 a number of very good legislative initiatives (like cooperation of national courts via electronic means), which positively influenced subsequent developments in this area.

What recent case law do you consider relevant for the Czech Republic?

There is a number of pending cases which are of high g impportance for the Czech Repu p blic ic.. I co coul uldd me ment ntio ionn the Toshiba case,, pr p eliminar a y ruuling ng ini nititiat ated ed by th thee Regional Court (Krajský soud) in Brno, the crucial question being on what level (on the EU level or on the level of the Member State concerned) cartel agreements should be sanctioned. Another example is the case known as Pomazánkové máslo (Spread butter), where the Czech Republic is being sued by the European Commission for using such designation for products not fulfilling the prescribed characteristics of butter.

We believe, nevertheless, that it is fully justifiable because the designation has been used traditionally in our countryy andd the here refo fore re can anno nott be con onsi side dere redd mi miss leading for the consumers.

In your opinion, how is the Czech Republic performing in implementing the European Union’s laws?

It is not a secret that the Czech Republic does not belong to the Members States in the top ten as the timely transposition of directives is concerned. On the other hand, it seems to me that both the line ministries (being usually authors of the drafts of the transposition measures) and the Parliament carefully consider the various implementing options so that the transposing act is not a pure copy of the directive without considering the purpose behind it. It might be more time consuming, but it prod pr oduc uces es bet ette terr qu qual alitityy le legi gisl slat atio ionn in t he end nd.

How many cases are brought yearly by the Czech Republic or against it and what is their main nature?

One should distinguish among the various types of proceeding. As far as the preliminary ruling is concerned, d the h CCzechh courts iinitiated i i d untilil know k (since ( i the h accession) 15 proceedings. The European Commission sues the Czech Republic each year in approximately 10 cases for bad implementation of EU law (but the majority of cases – approx. 97 % – is successfully being reso re solv lved ed wititho hout ut rea each chin ingg th thee ph phas asee be befo fore re the Cou ourt rt).).

Next Ne xt to th this is, th ther eree is eac achh ye year ar num umbe berr of cas ases es, es espe pecial ci ally ly in th thee pr prel elim imin inar aryy ru ruliling ng, wh whic ichh do not oririgi gina nate te in the Czec th echh Reepu publ b icc, bu butt wh whic ichh ha have ve dirirec ectt ef effe fect ct on ou ourr legal order or administrative practice. Since we have,, as a Mem embe berr St Stat ate, e, unl nlim imitited ed rig ight ht to in inte terv rven enee in all case ses, we actively try to influence the Court by our observations (in written or orally) – the Czech Republic belongs to the most active participants, not only among the new Member States. Each year we submit observations in more than 50 preliminary rulings (from the total number of 350), which brings us to the approximately same level as France.

And taking it from a different perspective, how many cases are approximately rejected by the Court of Justice of the European Union compared to the success of administration?

As I said, in the procedures where the European Commission questions the proper implementation of thee EU law in th th thee Cz Czec echh Re Repu publ blic ic (so cal alle ledd in infrfrin inge ge-ment me nts) s),, th thee va vast st maj ajor oritityy of cas ases es are suc ucce cess ssfu fullllyy closed before the case is ever brought to the Court.

Even in cases where the legal action before the Court was launched, the Commission withdrew its action in approximately half of the cases, after the Czech Republic was able to prove that full compliance measures had been adopted. As for the preliminary references, the Court fully followed the arguments of the Czech Republic in approximately 65% of cases, and in 14 % of cases identified itself with our submissions partially.

By Lynn Tourkiová česk če skýý př přek ekla ladd na nale lezn znet etee v elekt ktroniické ké ver zii magazínu na www.leadersmagazine.cz

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An interview with Karel Dobeš, Government Commissioner for the candidature of the Czech Republic for GNSS (Galileo) Supervisory Authority (GSA)

SEIZE OPPORTUNITY FOR

FUTURE SUCCESS Karel Dobeš graduated from the Czech Technical University in Prague and from Technical University Munich. He has been involved in the space industry for more than thirty years. Until 2006 he engaged in private business; he was appointed Government Commissioner for the candidature of the Czech Republic for the Galileo Supervisory Authority in November 2006.

Photo: Vladimír Weiss

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How did it happen that you were appointed Government Commissioner for project Galileo?

We started working on it after the change of government in late summer of 2006. The previous government supported the Dutch candidacy. When new minister (of transport) Aleš Řebíček was appointed, the strategy changed and the Czech Republic decided to table its candidature. I was installed as the Government’s Commissioner for the candidature of the Czech Republic for the European Global Navigation Satellite System Supervisory Authority, in short GSA (GNSS Supervisory Authority) on November 22, and we officially handed in our candidacy in Brussels at the beginning of December 2006. At that time, there were twelve candidates.

And that was the beginning of the whole story.

How difficult of a process was it?

First and foremost it was a very interesting and important process for the Czech Republic. Because of the candidacy we had to conclude a security agreement with the European Space Agency (ESA), and our membership in this organisation thus materialized much faster.

Although we planned for full ESA membership, the responsible officials at the ministry of education were not in a hurry. It was expected that a long preparatory process would take place. But we needed to finalize the ESA security agreement fast, because it constitutes the basis for all bilateral agreements that are concluded in Europe in the field of security, crypto systems, etc.

The minister of transport persuaded Prime Minister Topolánek that we needed to speed up the process.

We asked to open negotiations at the beginning of 2007, and in June 2007 a high-level meeting of PM Topolánek and the ESA Director General took place.

Afterwards, it was necessary to perform an audit of the so-called absorption capability of the Czech industry, for the ESA is an innovative agency, not a scientific organisation; up to 90 % of its yearly budget, which reaches over 3 billion EUR, is spent on industrial contracts. These contracts are not of a scientific nature; the pr p ofit is pr p eciselyy defineed as wel e l as the del eliv iver eryy date and technology. As goes the saying in the ESA: “When thoughts are done for money, it is science; if thoughts are making money, it is innovation.”

Why did the audit of the absorption capabilities of the Czech industry have to be carried out?

There are two types of membership fees in the ESA – the first is a specific percentage of a country´s yearly GDP, and the second type consists of voluntary contributitions to the optitionall programs thhat a given i member country chooses according to the efficiency of its industry. When a country sends this fee to the ESA, it actually applies for a specific program, and an option to compete for contracts is then opened. The Czech Republic invested its largest share into ARTES 10, a program dedicated to building up a digital communication for airplanes via satellite network. Aircrafts today use analogue communications that are insufficient, as the number of frequencies is limited. Around 2015, digital communications will be introduced, and a specific part of this project is being prepared by a consortium of six Czech companies led by Honeywell Czech Republic. There is a great potential and future market for this application, as it will be necessary to change devices in all aircrafts and at all airports. So that´s why we engaged in this program, and it also reflects our current view of cosmonautics or space.

What is the difference between cosmonautics and space?

Historically, two camps emerged with different philosophical hi l views i on cosmonautics ti in i the th CCzechh RRepublic. bli The first was inspired by the Soviet Union, where cosmonautics was primarily a science, and used for propaganda. Both Russians and Americans invested huge resources in order to get into space. But when you look at the results, there is no Russian mobile phone, notebook or Teflon pan – Russia was not able to use the innovative potential of the space flights for the whole economy, and later on for Russian companies. The spin-off effect is totally different in the US and today we use many technologies inspired by the Apollo project. A trend was set there that the designers worked on the basis of very concrete contracting – for example to develop a computer of a small size and high reliability that can sustain extreme loads; and from this approach the American term “space” originated. Personally, I don´t like the term cosmonautics very much; space is much more complex.

When one says cosmonautics, people at most imagine the Czech cosmonaut Vladimír Remek floating in space, but we want our investments to return back to our industry, and with a know-how that can be applied elsewhere.

Also, the so called ninth pillar of Czech competitiveness NERV (government´s National Economic Council) suggests satellite navigation and space technologies as a step in right direction.

Why is it indispensable for Europe to have its own satellite communication system?

The usual argument goes that if we have GPS, why do we need Galileo. But GPS works on the good will of the US government. In every economic unit in today’s world – except the US and EU, we talk about Russia and China building their own satellite navigation system because they want to enjoy independence. In a globalized world one needs three pillars – to know where one stands, i.e. navigation; information about surroundings, i.e. Earth observation; and communication. Without these three pillars no economic unit can compete globally. If Europe wants t to compete gllobbally, it needs such a system.

How successful are Czech companies in the ESA tenders?

Czech companies work especially on the ARTES 10 program. They also do studies on the future satellite navigation systems, and a couple of firms are involved in GMES (Global Monitoring Environment Security) Space Components – that is a huge EU project in the area of environment, but ESA is its main manufacturer of hardware and software. We are also contributing to MTG, which is a development of the weather satellite of the third generation, and also to the Ground Support Technology Program, within which ESA develops new technologies on stocks - within these projects the specification is not as concrete as with standard projects.

There are several highly successful companies in the Czech Republic that contribute to these projects and programs. Furthermore, within the mandatory fee the Czech Republic allocates to ESA’s yearly budget, which reaches approximately 5 million EUR today, over one half comes back to the Czech Republic in the form of support for start-up companies, as well as for scientific institutions that can apply for a project, which do not have to sustain hard business milieu. It then serves as a learning exercise and teaches the recipients how to get involved and communicate in the European space community. A special commission consisting of ESA and Czech institutions´ representatives selects about fift successful fifteen f l projects j t every year from f roughly ghl sixty it applications. The primary aim is to further enlarge the portfolio of Czech companies that work for the ESA. What is the major contribution of having the GSA seated in Prague?

GSA itself will not do anything for us, but we ourselves have to seize the opportunity and motivate our companies and research institutions to engage in this area. It is also important to use the fact that the GSA sits in Prague for the further promotion of the Czech Republic as a country with high technological potential. Today, we are closely cooperating with the GSA on a conference on the EGNOS signal, for example, that should take place in autumn this year. EGNOS is a predecessor of Galileo – it is not a satellite navigation but a communication and control system that uses satellite navigation GPS. As it is certified, it is possible to use it for segments where regular satellite navigation does not suffice, for example in aviation. We are very much interested that Czech companies and institutions start to use EGNOS more often, because it is a preparation for Galileo, which will offer its service on a European and world scale. The more our companies get involved now into these consortia, the more they will cooperate on future issues related to Galileo, and the backflow to the Czech Republic will increase. If our companies are not among those providing know-how, we will all only pay for these services in the future.

The fact that the administrative seat is in Prague is rather symbolic. How it can improve the position of Czech companies?

In Bavaria, for example, a Galileo technical control centre was built, and on its margins the business incubators emerged; as a consequence, there are over sixty new companies today. It is necessary to have such a symbol so that the framework conditions for establishing business clusters can be implemented. We will need the same here and thus I am happy that the satellite navigation is mentioned as a priority in NERV´s report.

Communication is important – when companies know there is a market for interesting technology, and that the

industry is worth investing in, they will naturally go for it.

At the moment we entered the ESA, companies realized there would be long-lasting activity in the space segment here. We have to build a specific structure that will clearly define who is responsible for sppace in the Czech Reppublic,, and who the ESA contact point is.

And what problems are there in our existing structure?

From a historic perspective, this segment was considered science, and as such it fell under the competence of the ministry of education. Of course today it is such a broad area that no particular ministry can be assigned responsibility for it. There are many players and it is necessary that all activities get coordinated, so that there are no duplicities. It is a very complex issue; specific fields that had nothing in common in the past are now intermingling. We are at the beginning of this process, and it costs a lot of money that needs to be spent in optimal and effective ways. I am glad the government adopted “The Method of Space activities Coordination of the Government of the Czech Republic” on April 20, 2011. This decision authorizes the minister of transport to coordinate space activities in the Czech Republic, in cooperation with the ministry of education, the ministry of trade and industry, and the ministry of environment.

This decision also solves Czech Republic´s Republic s relations to the ESA and the EU in the area of space.

What are your future plans once the GSA moves to Prague in the summer? Are you going to perform further tasks in the area of space?

At the moment, I do not have any long-term plans. Now we have to organize and coordinate the preparation for moving the GSA. It is not simple, and there are certain security conditions of the GSA seat that we have to comply with. Two security and monitoring centres will be coordinated from Prague; the first will be placed in France and the second in the UK. We also have to prepare facilities and conditions for GSA employees – there will be sixty of them to start, and everything must be ready. Simultaneously, the GSA has to start performing operational tasks like in-orbit validation of the Galileo program. I envisage that I will manage all of these tasks at least until the end of next year.

Also, according to NERV´s recommendation, the National Space Agency of the Czech Republic should be established, and if there is an interest in my knowledge and experience in the field of space that I have been gathering since 1974, I am ready to use it. I am also a vice chairman of the Association of the Small and Medium-Sized Enterprises where I dedicate myself to a couple of issues. Small and medium size businesses are fundamental for any national economy. In the Czech Republic, we have to improve communication between firms that still fear someone will abuse their know-how. In the space industry, most of the innovative companies are of small or medium size, and we need very good communication vis-à-vis our western partners so that our companies link-up to help the development and production chain of major companies, the so called prime contractors. Nevertheless, this can´t happen without trusting our companies, without quality project documentation, quality and risk management, and without superior general project management.

By Věra Řiháč áčkováá český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

Leaders Magazine i III/201 I 1

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Guest of Honor: PhDr. Pavel Maurer Evening Topic: Czech Cuisine from the Perspective of an Expert Venue: Palace Austria

networking/charity IN COOPERATION WITH LEADERS MAGAZINE

Lions Club

From left: JUDr. PhDr. Oldřich Choděra, Lawyer, Charterpresident of LC Praha Bohemia Ambassador and Governor of LCI D122 Czech Republic and Slovak Republic and PhDr. Pavel Maurer, Author of a Publication “Maurerův výběr Grand Restaurant”

Prague Bohemia Ambassador

From left: Ing. Jiří Opichal, Executive Head, Allimex Trading s.r.o. and former President of LC Praha Bohemia Ambassador, Ing. František Novotný, Director, TERRAMET s.r.o., and JUDr. PhDr. Oldřich Choděra, Lawyer, Charterpresident of LC Praha Bohemia Ambassador and Governor of LCI D122 Czech Republic and Slovak Republic

From left: Ing. Jiří Nejezchleb, Tax Advisor and Ing. Aleš Haur, Enterpreneur From left: Mgr. Petr Soukup, TV Director and Ing. Jiří Málek, President of LC Praha Bohemia Ambassador

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From left: Prof. MUDr. Václav Mandys, CSc., Head of the Institute of Pathology and Ing. Jaromír Kaulfus, Enterpreneur

From left: MUDr. Blanka Seifertová, General Practitioner, Mgr. Petr Soukup, TV Director, and Mgr. Karel Plzák, Enterpreneur

From left: Mgr. Karel Plzák, Enterpreneur and Ing. Jiří Málek, President of LC Praha Bohemia Ambassador

From left: Ing. Jaroslav Hořák, Enterpreneur, Oldřich Hořák, Owner of Hotel Bílá Růže in Poděbrady, and Mgr. Petr Soukup, TV Director

From left: Ing. Jiří Opichal, Executive Head, Allimex Trading s.r.o. and former President of LC Praha Bohemia Ambassador, Ing. František Novotný, Director, TERRAMET s.r.o., and JUDr. PhDr. Oldřich Choděra, Lawyer, Charterpresident of LC Praha Bohemia Ambassador and Governor of LCI D122 Czech Republic and Slovak Republic

From left: JUDr. Jaroslav Novotný, Lawyer, Membership Chairperson of LC Praha Bohemia Ambassador, JUDr. Jaroslav Šátral, Judge of the Municipal Court in Prague, and Ing. Pavel Barák, Economist PhDr. Pavel Maurer, Author of a Publication “Maurerův výběr Grand Restaurant”

From left: Ing. Jaromír Kaulfus, Enterpreneur, MUDr. Blanka Seifertová, General Practitioner, and Prof.

MUDr. Václav Mandys, CSc., Head of the Institute of Pathology

From left: Ing. Antonín Novotný, CEO, CSI and Ing. František Novotný, Director, TERRAMET s.r.o.

more photos and electronic version available on www.leadersmagazine.cz

From left: Ing. Aleš Haur, Enterpreneur, Ing. Jiří Nejezchleb, Tax Advisor, and Mgr. Jan Haur, IS Administrator

From left: JUDr. PhDr. Oldřich Choděra, Lawyer, Charterpresident of LC Praha Bohemia Ambassador and Governor of LCI D122 Czech Republic and Slovak Republic, PhDr. Pavel Maurer, Author of a Publication “Maurerův výběr Grand Restaurant”, and Ing. Jiří Málek, President of LC Praha Bohemia Ambassador

ROMANÉE-CONTI Rooma mané néee-Co Cont ntii iss to wi wine n exp ne xper er ts er ts wha h t th thee red reed diiam a on ond iss to je j we w llller ers, er s or wh s, w at a Alm lmas a cav as aviaar is to ggoour um meetss. Itt is tthhe Leeon o ardo d da Vi do Vinc nci orr Moza Mo zart rtt of wi w nees. It is i a worrld bennchhma m rk for o the wine wi ness fr ne from om ficckklle Piino nott Nooir, a wi w nee tha hatt in insp spir sp irees ir es admi ad m rraati mi tion on as we w ll as deesi siree, an andd foor ma many nyy fan a s, s, itt is ssyynnoony n mo m uss wit ith exceellllen ence ce and ce n higgh qu quaa-lil ty dessiggn.. It is the h fruuiitt of ta tale leent nt,, sk s ili l,l exxppe-rien ri ence cee andd peoopl p e’ e’s ex exce cept ce ptio pt ioonaal ab abilillitt y to t pro roduc , wi du duce with unf nfliinchi chi hingg reg egul ular ul ular a itt y in in a par arti ticu ti cula cu laar ppllacce (t (ter erro roir ir) – a t yp ir ypee of of a win inee th that aatt mee eets t thhee ts h gh hi ghes e t at attr trib tr ibbuutteess whi h ch aree gen ener eral ally llyy req e uire uiireed and ac an a cceept pteedd wit ithh this this nec th ecta tar. ta r. r.

I Bur In u gu gund nddy, y in a r e m moote ote te alllley eyy in thhe to town wn of wn V sn Vo sne Ro Roma m néée, ma e abo bout out 20 km froom Di Dijo joon, n, a few w o di or d nary naryy hou na ouse sess su se surr rrrouund a sma mallll cou ourt rtt yard yaard rd. Th T e titnyy redd let ette ters rs “RC RC”” on on a gat atee re reve veeal tha hatt we w aree rir gghhtlly inn the h “Do Doma main ma iinne de la Ro R ma mané néée CCoont onti” nti”” nt (D DRCC).). T he mod o es e t and annd un unas a sumi as suumi mingg apppeeaaraanc ming ncee

that that a is raath ther er t yppic er i all foorr Bur urgu g ndy gu nddy dooess nott sho how w that th at we arre in thee pla lace ce of pr prod oduc uctititonn of tthhe mo most st coove vete tedd w woorlrldd cl c ass s wi wine nees. s W nee has beeeen grow Wi grrown ow wn in i Burgu urrgu gund nddy fo ndy f r mo more r thaan re 10000 yeeaarss, ass Ben 10 ened edic ed dicti icctitine n monnkss use sedd to to pla l nt it on the the soout u hheeas a t hi h lll si side d at th de thee AAbbbe beyy of o Sai aint ntt Viva Vi vant va nt Winne ass ear arlyy as th arly thee 1100th cen e tuury. ryy As the cent ce n ur nt urie iess we ie went n by, nt y tennan a ts and own wner e s of o vineinneeyard ya ard rdss ke kept ept chang hang ha ngin ing, in ng, g, tho houg uggh al alll ooff theem cu cultiv lttivat ivvat ated e ed thhe vi vine neya ne yaardss w yard wiith kno n wl w ed edge ge and lov o e. e. In 16 1651 511, tthhe laandd wass alrea lrready eady dy knoownn by the thhe name naame L a Roma Ro maanée. néée. e T he he vinney eyar ardd (t(ter ar e ro er roirir)) Ro Rom mané ma néee Co C nt ni iss loccat ated ed in thhe heear artt of o the he bes e t regi g on Cotte d’ gi d’Orr, in the in he Vossnee´ss gr gran andss cruus cl an c im i ats atts, wh wher eree tthhe ssooili er iiss ver eryy ho h mooggeeneou neeou ouss due duue to to its t sm maalll siz izee (11.88 ha) a d co an cons nssis ists ists t s of an an ide d al mixx tu t re r of re r d cl clay a andd ay piec pi e es of “PPréémeeau a x” lim imes mes esto t ne to ne, a fo foss ssilililizzedd li-ss meest ston o e an on andd maarl froom annci c ent ent seeabbed e s. s. Anootthher e a vaantt ag ad agee iss tha hatt th t e laand n tennds to be be cuulltitivaateed byy onl n y onne gr groow wer e . The Thhe av a er erag agee age ag agge off thee vin i e p annt is aboout 50 ye pl year arr s. s D rirng Du n the h tim mes of on one of one of the he vinney eyar ard’ d s faamo d’ mous uss oow wneerss, Pr Prin iinnccee de Co Cont n i, the nt he repput u attioon of thi hiss greaat wi gr w nee ros osee as qui u ckklyy as th thee pr p icce off thee lan a d wher wh eree itt hass bee e n ggrroow wn. n Duurrin ingg th thee Fr F en ench cchh RReevvooluutit onn, ho howe w vveer,r Prir ncce de we de Conntii’ss holldiing ng wass coonf nf is iscaateed an a d so s ldd in an a aucctition on in 177944, on aallre lreead ady unndeer thhe na name ame me L a Ro Roma m né ma n e Cont Contti. In th Co t e midmi d-19 d1199thh ceenntu tury r y, Juulees-Ju s-Juli sJu ieenn Ouvvra Ju rard r was rd as the he v neeya vi yardd’ss own w err and n hiss win inee qu quicckklly be beca ccaamee one n off thee mos ostt reeno nown own wnedd anndd exp xpen ennsi sive ive ve in Bu B rggunndy. dy. dy A ter Af teer hi him, m,, Jaccqquues m e -M Mar arie ie-D -D Duv uvau aultt Bloochheett beau came ca mee the m h new w hol o de d r,, hav avinng to dea eall wi with th the he epi ppi demi de m c of of phy h lllloxxer era iinn 188 8 0. Blo loch chet et wass als lsoo th thee

Degustation of Romanée Conti 1961

aanncceesttor o of thhe cu c rr rren ennt ow ow er annd cuurren owne ennt co co dire di reeccttor or sin ince 199774, ince 4 the he cha h rism sm matticc andd liikkabblee, “yyoouung ng”” se s ve vent ntyy ye y ar oldd Auber ubb r t de de Vililla lain la inne. ine e.

Sinc Si nce 1911 1911 19 11, ddee Viilllaain ine‘ ne‘ s grraanddfaathherr, G Gaaud u inn ddee Villa ill ain i ee,, an en enth nthus hussiaast s icc and nd exp xper eerrie riieenc nced ed winne maaker m ker annd tr ke tradder e , haas de devo vote vo ted al te a l hi hiss kn k ow wleedg dge, e, reesoouurrccees, s lov o e annd sk skilil to to the h quuaalil tyy andd con on soliiddaatiionn of thhe wh whol ole se ol s t of of hiss ass s set et s tthhe vi v ne ne-yard ya r s-co s-co scomp mpriisi sing n 13377 ha. ng a. Aftter e 1994455,, in a ddiifff ic icuul ul t post po s -w -war a per ar e io iod, d,, he wa wass foorrcced how wev e eerr to se sellllll hal alff of thee own w er ersh shhip ship i to an expper erie ienc ie ncedd proofeess nc ssio ioonaal, Henr He nrri Le Lerooy,, whoo beccaam me hi h s part ppaart r ne nerr annd whho al also so brou br o gh ghtt th thee vviini nicu cultltur lttuurre to to itss wor orldd ren orld e own own an ow andd prres estitige g . Do Doma Doma m in inee de la Rooma mané anée néée CCoont n i is now a pr p ivvat a e co comp mppanny wh wher erre tw twoo fa f am fami miili ililies eess of Au A be b rt de Viillllaai aine inee a Hen enry Roc enry och ha h ve the h f innal al say a.

TToodaay, y, allll 62 accres rees of vin ines es ((tter es e rooirir)) are re gr gran andss an crruuss, an crus a d thhesse ar are La Rom maannée ée-C -Con -C ontti on ti (1.

1.88 haa, w icch pr wh prod odduc uces ess appro pproxi pp x mate xi mateely 5,5 ma ,500 50000 bot o tlt es/ ess/ Romanée Conti with the signature of Aubert de Villaine

Aubert de Villaine, Co-owner of Domaine de la Romannée-Conti with Joseph Drebitko

108

Leadder Lead Le ers Ma M ga gazi azi zine ne III I //2201 011 11

yyeear a ) annd Laa Tâc âche he (66..066 ha, a,, apppro roxx.. 20, rox.

0 0000 bo bottttlles es/y /yeaar)), w /y whhicch arre at a thhee sam amee titime me the me he t woo “m mon onop oppol olie ies” s”, ” me m aanning inng th that at thi at hsw wiine is pr p odu odduc uced ed by onnlly on one ex excl clus cl u iv us ivee ow owneer. T he he oth ther her er gra rand nd cruus incl in ccllud ude Ri Rich cheb e ou eb o rgg (8.

8 6 ha h ),) Ro Roma mané néee SSaainnt V vaant Vi n (5.

5 28 ha) a), G Grraanndss Écchhez e eaauxx (3.

3 5522 ha) a)), Éche Éc h ze he zeau a x (4.

4.67 67 ha) and nd whi hite te winee Mo Mont ntra r chhett (00..667 ha ha).).. Eac ach ch ap appeellat atio i n (w winne) e has as a uni niqu que qu s ruuct st c ur uree an andd st s yle, eac ach w wiine is di d ff f erren entt an andd yett t ey are alll var th a ieetiess of Pi P no nott No N irir forr red e win ines andd Ch an Char ardo ardo d nnnayy for or whi h te t win ines e . Th es T hey e all car ey aref effuullly ly maaiinnta tain i the in heirr spe peci cififif c id ci iden e titity en t y tha ty hatt lilies ess not in a st streng ngth th or po powe oweer, but in el e eg e an a ce, ce, haarm ce rmon onny, reefiineeme m nntt andd poe oetr t y. tr y T he h y ar aree un u ique iqque,, ch char arrmi m ng n andd di an d ff ffic i ul ic u t too reeppro pro r du duce cee.

Thee vi Th v ne n yaard rdss ar are no now w maana nage ggeed ac a coorddin i g to b od bi odyn y am micc rul uless, reesp spec ecctit ngg pur urel e y or orga g ni ga nicc fa farrm ngg (fo mi forr ex e am ampl p e trac acto t rss werre reeppllac to aced e by hoors rses es), win inee pr prod oduc od ucti ctiion iss 10 1 0% 0% nattur ural al,l, th t ere er e er aree noo pes ar estitit ci es c des dees or or chheemi mica ccaal pr p oc oces ess sees, s feerr titililili-z rs aree prepa ze paareed by thee groowe w rss theems msel e ve el ves, s, barrel ba ells fo f r ma maturiring ngg are new w eac a h ye year ar and nd the h a inng titime ag me that haat oc o cuurss in ba b rr rrel elss wi el willl varr y de d ppeennd ng on th di thee quual alitt y of winne, alit e, t yp ypic iccal ally lyy beett ween ween we e 16 to 20 mo to mont n hhss wititho nt h ut ho u anyy f ililte teerriing ing. Foor pprrodduc u tition on, on on only lyy the h hig ighest hheestt qua ualililty t y gra rape p s arre us pe used e andd the emph th em mpphhaassis is is pl p acced on th thei eirr na natu ttuura ral wi winniifica fificatit oonn (prroc o es essi sing si ng) soo thhaat eaachh of th them them m mai aaiint ntai ain in thei th eir au a tthhen entititici tici cittyy andd cha hara raactter e.

Romanée Conti is ann obbvvioous “Pr PPrrim mus u ent n err pare pa r s” s (fif irs rstt am rs a oonng ng equals uaalss).) To tast taast s e RRooma mané néée Cont Co ntti is a riitttua ual, al,l, a myt y h aannd an ind ndes esscr crib ibab babblyy har amooni n ouus an and flf eeeetiting ng mom omen ennt off ple leas asur uree that thhat a many ma nyy lon ongg re reme memb me mbber er. A hhiigh ghly lyy ele lega g nt win ga ine, e,, of an innte tens n e, del ns e ic icat ate taast stee, e, it iss liikkenned by Be B rnnarrd Noobl blet let (ceellllar a mas ar aste ter) te r to a be r) beau autitiifuul,, chaarrm au ming inng and innte an t llllig igennt wo ig w ma man. n. La Tâche,, fo forr m maanyy, is a ty t ypi pica cal wi ca wine of th the DR the DRCC th t at a has as its ownn spe peci peci cial a al chaarrac ch acte ter. Fla te lav avo vour vour u -w -wis i e itt is ririch cher ch herr butt del elic icat a e at at thhe sa the same m time; me im me; e it hhaas in inteens inte nsititt y annd powe powe po w r th that at at d ess not do ot dom minnat atee bu butt th that at emp m ower ow wer erss uss andd

ench en chhan ants t s us. T he winness’ exxceelllennt aannd so ts solid liid st s ruuctuurees dduuriring ng sel e eccte t d yeear arss en enab abblee the hem m to mai a nt inn thheeir ene ta nerg rgy g y annd ha harm rm monny ffoor ma m nyy dec ecad addes ades es..

TThhe ex e tr trao raaoord rdin inar a y leeve ar vell of o quaaliityy, al alon o g with on thh eexxtr x tr trem em meelly ly loow pr prod oduc oduc od u titioon, on, un u fo fort rtun unnat atel eelly pl p ac a ess tthhes e e wi w ne ness in into to the heigh eiigghhts whi hich c few morta ch or taals or ls can re ca r ac ach. h. T he h. heirir pririce cess re reac acch asstr tron o om omic ical al lev evel es and ar and an aree st stilill ill riisi sing n . A bo ng b x of o Rom oman anée an é Coonnti 19900 ée w s sooldd in Soth wa Soth So theb ebby’ y s aauuct c ion ioon inn New w Yor orkk inn 20007 foor U. for U S. S $27 2 0, 0,00 0000 – i.i e. e apppro roxi xima xi mate ma telyy for o U.SS. $22, $2 2 00 000 pe p r bo bott ttlee. A bo tt bott tttlee of Laa Tâc â hee 200 0055 wass la wa laun unch ched ch ed in 2008 20008 for U.S. .SS. $5 $550 500 – todday ay itt iss vaaluued e at U. U.S. S. $6, S. 6 5000.

0. Higgh dema deema m nd n , mu much ch hig igheer thhan a can be sa satit ssff ied ieed bbyy the he prrooduct duuct ctio ioon, n has as lea eeaaadd thhe ow the owne n rss to seell the ne heiriri wine ine to in t clil en ents tss acc ccoor ordi d ng n ttoo the h irr rul ules e , so some om meetitme mes oonnly in inndi d vi v duual a box oxes es wiith connte tent ntt det eter er m ermi miined ed by by the he suupppl ppl plierr onn a baa sis of si o hiss or he h r prrod oduc uctititon on, ppoote tent ntia iaallly coomp mple le-meentteedd by on m onee bootttlee of Ro Roma maané n e Coont n i.i Despi esspi p tee t e huge th huuge deman em man and, d, thee own wner err s tr try r y to t kee eepp pr pric ices ic e es at rea easoona n ble blle leeve vels llss so th t at at bot o h ex e ppeert rtss an andd amat am atteu e rr eennthus thhus usia iast ia s s ca st cann pur puurc rcha rcha hasee a feew hase w bott ott tltles tles e for pr fo p iv i at ate us usee. T hee compa om mppaany ny car aref e ul ef ullyy seellec e tss

itt s cuusttom o er e s to prreeve v nt n mid i dllem emen e ’ss attem en tttem empt ptss pt off reseelllil ngg bot ottltltles ess forr siggni nifififica cant ca nt pro rofififits tss.

Deesppititee al a l th t e fa f me me, tthhe pe p oopple l herre arre hone ho one nest st,, ass the heyy ar aree in inde deed de eedd thr hrou ough g oouut tthhe wh gh w ol oe of Bur of urgu gundy. nddy. T he hey ar aree unnpr pret eten et e di en ding ngg, ge g nneerous roous us a d hi an h ghhly ly profe f ss fe ssio iona io n l.l. Aubber na er t dee Vililla lain la inne acac ac cept ce ptss pr pt pres esid es iden ennts, king nggs an andd sstt ar arss wi with thh thee sam amee p ea pl eassuure as he h acccep e ts us. s Eveery yea e r ha hass its itt s ow ow n rulees; ru s nat atur uree di ur d ct ctat a ess the at h conndi ditition onns an and nd he help lpss too lp reac re acch th t e pi pinn n acle nn accle l dur uriinng thhe re r le lent n leess str nt trug ugg gl ge w th var wi aria iabbl ia ble qu ble q al a itt y. y. T he h res eessul u t inn goo o d yeear oo arss ha hass h we ho w ve verr re r peeat ated e ly opeene ed n d thhe dooor to pa p raadi disee dise onn eaarr tthh. Lu Luck ckk y inndi cky divi vidu vi idduuaalls wh whhoo ha h ve the cha h ncce too t asstee the he tim melles es s ma m ggiic an a d leegend gee d in thhei eirr lilfe fetitiime can con o si side d r th de t em e se selv lvves e ass th t e ch c os osen enn o ess. Ro on Roma m né ma néee Co Cont n i iss a shi nt h ni n ng n jew e el e on a riichhlyy d co de cora raated teed cr crow oow wn fifittt t ted witth ot tted o heer ge g ms m of sttunnniingg quaalil tyy. ning Byy Jossep eph DR eph REB BIT ITKO K KO Phot Ph o os ot os: fr from om m the he aut u ho h r’’s prrivvaatte arrchiv chh ve česk če s ý př sk př ekla přek ekkla ladd na nalle lezn lezn znet etee v el et elek ekktr tron onic ickké ic ké verr zii maga ma gazí ga zínu zí nu na ww www. w.le w. lead a er ad e sm magaz aggaz a in ine. e.cz e. c cz Joseph Drebitko

Leeaaddeerrs M Maaga gazi zine IIII/201 zine /2201 011 011

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Center for Security Policy CESES FSS Charles University in Prague Event

Roman Onderka, Mayor of the Statutory City of Brno

WHAT SECURITY FOR

Europe in a Changing World?

On Thursday 12th of May 2011, an International Security Conference “What Security for Europe in a Changing World?” was held in the Brno New Town Hall. The event took place within the frame of the Hungarian Presidency of the Council of the European Union and under the auspices of the Mayor of Brno, Mr. Roman Onderka and H.E. László Szöke, Ambassador of Hungary to the Czech Republic. The organization was managed by the Center for Security Policy CESES FSS Charles University in Prague and the Population Protection Institute Lázně Bohdaneč, the DG of the FRS, the Ministry of Interior with kind assistance of Representation of the European Commission in the Czech Republic, Friedrich Ebert Stiftung Prague, the European Movement in the Czech Republic and the Embassy of Hungary in the Czech Republic. The conference was mainly covered by Leaders Magazine.

110

IN COOPERATION WITH LEADERS MAGAZINE The presidium

more photos and electronic version available on www.leadersmagazine.cz

Anna Kárníková, Friedrich Ebert Stiftung Prague

Detlef Buch, Stiftung Wissenschaft und Politik

H.E. László Szöke, Ambassador of Hungary to the Czech Republic

Oldřich Bureš, Head of the Center of Security Studies, Metropolitan University Prague

From left: Oldřich Bureš, Head of the Center of Security Studies, Metropolitan University Prague, Charles P. Bartholdus, DHS Attaché of the United States to the United Kingdom, and Gábor Iklódy, Assistant Secretary General for Emerging Security Challenges, NATO

In front from left: Roman Onderka, Mayor of the Statutory City of Brno, Miloš Balabán, Head of the Center for Security Policy, CESES FSS CU, Pavel Fischer, Political Director, Ministry of Foreign Affairs of the CR, and Charles P. Bartholdus, DHS Attaché of the United States to the United Kingdom

Miroslav Mareš, Masaryk University Brno

From left: Marian Brzybohatý, Dean of the Faculty of Security and Law, Police Academy of the CR, František Bublan, Chairman of the Security Committee, Chamber of Deputies, Parliament of the Czech Republic, and Miloš Balabán, Head of the Center for Security Policy, CESES FSS CU

The conference has focused on the discussion about the new dimension of security threats that Europe has been facing ten years after the terrorist attacks in New York and Washington D.C. on 9/11 2001. One of the main topics were the priorities of the security policy in Europe within the context of the Strategic Concept NATO 2010 and the new Czech Security Strategy that is being prepared. The keynote speech “How to Deal with Security Threats in Europe on the Threshold of the 2nd Decade of the 21st Century?” was presented by Gábor Iklódy, NATO’s Assistant Secretary General for Emerging Security Challenges. The other distinguished panelists were Charles P. Bartoldus, DHS Attaché of the United States to the United Kingdom, František Bublan, 111 Chairman of the Security Committee, Chamber of Deputies, Parliament of the Czech Republic, Pavel Fischer, Political Director, Ministry of Foreign Affairs of the CR, and Ignacio José García Sánchez, Deputy Director of the Spanish Institute for Strategic Studies.

From left: Gábor Iklódy, Assistant Secretary General for Emerging Security Challenges, NATO, Roman Onderka, Mayor of the Statutory City of Brno, and Miloš Balabán, Head of the Center for Security Policy, CESES FSS CU

From left: František Bublan, Chairman of the Security Committee, Chamber of Deputies, Parliament of the Czech Republic, Pavel Fischer, Political Director, Ministry of Foreign Affairs of the CR, and Charles P. Bartholdus, DHS Attaché of the United States to the United Kingdom

H.E. Györgyi Martin Zanathyné, Ambassador at large for Anti-terrorism Coordination

Jaroslav Čechák, URC Systems

The presidium

112 From left: Martin Linhart, Director of the Security Policy Department, Ministry of Interior of the Czech Republic, Josef Janošec, Director IPPLB, Ministry of Interior of the CR, and Detlef Buch, Stiftung Wissenschaft und Politik

IN PARTNERSHIP WITH LEADERS MAGAZINE

ČSÚZ

Eighteen Years of Co-operation OF THE CZECHOSLOVAK FOREIGN INSTITUTE WITH THE EMBASSY, INSTITUTIONS AND PEOPLE OF CHINA The Czechoslovak Foreign Institute, an independent citizen association, and the Chinese People’s Association For Friendship with Foreign Countries established contact in the mid-90s of the 20th century. Since 1994, all the Ambassadors of China to the Czech Republic have spoken in the Czechoslovak Foreign Institute. The Czechoslovak Foreign Institute has become a mediator for a number of meetings of representatives of Chinese and Czech institutions and business groups. Meanwhile, the Chinese economy surpassed the British economy in 2005, surpassed Germany’s two years later, and in 2010 surpassed the Japanese economy to become the second most productive economy in the world today, after the USA. The Czechoslovak Foreign Institute is therefore a favourite place for Chinese delegations to meet with their Czech partners in the Czech Republic.

“More and more Chinese tourists are coming to the Czech Republic to learn about Czech history and cultture. W Works k bby JJaroslav l Hašek, H š k Karel K l Čapek Č k andd Bohumil Hrabal have been translated into Chinese.

Nowadays, Czech musicians and singers go to perNowadays per form in China. We participate at festivals in the Czech Republic and we welcome participants from the Czech Republic in our festivals, while Chinese students study at Charles University in Prague, and Chinese TV stations show Czech fairy-tales for children,” the Ambassador, H.E. Yu Qingtai, said in March of this year when visiting the Czechoslovak Foreign Institute. It is interesting that Czech and Chinese children, brought up in different cultures, love the character of Krteček most of all the fairy-tales, as he mentioned. His visit to the Czechoslovak Foreign Institute, not long after the beginning of his diplomatic mission in the Czech Republic, proved a continuation of good relations. Since 1994 all the Chinese ambassadors have come to meet members and friends of the Czechoslovak Foreign Institute, and it was they who asked the management of the Czechoslovak Foreign Institute to play the mediator’s role between Chinese and Czech institutions.

“But we have to do more,” the present Ambassador Yu Quintai emphasizes. As he says, the Chinese are proud of their success, but they know that the gross national product is three thousand dollars per capita in China and it is only 15 per cent in comparison with the Czech Republic. They are aware that China will have to make a major effort to catch up with other countries in this respect and it will have to intensify worldwide co-operation.

The Czechoslovak Foreign Institute management is pleased to contribute to this challenge. And there

is a reason for it. Having been established in 1928, it has been entrusted by the First Republic government with the task of caring for Czechs working and living abroad, to develop co-operation with foreign institutions, associations, clubs and persons who are interested in it. Several dozens of Czech entrepreneurs and specialists are working in China – one of them, Miroslav Langr, is a member of the Czechoslovak Foreign Institute management board – and the Czechoslovak Foreign Institute is creating a certain background for them. To support Czech entrepreneurs, the Czechoslovak Foreign Institute initialized the first meeting of registered Czech and Chinese companies five years ago in Prague, and allowed for mutual introduction and the establishment of business contacts. “Reserves in Czech-Chinese economic co-operation are huge,” both the Czech and Chinese participants at that meeting agreed.

The contacts on the level of citizen associations have been strengthened mainly between the Czechoslovak Foreign Institute and the Chinese People’s AAssociation i tii ffor FFriendship i d hi with ith i h Foreign F ig i CCountries ti in Shanghai, which represents the most effective regional economy in China with its 17 million inhainha bitants. The former Chargée d´Affaires Huo Yu Zhen initiated that co-operation in the second half of the 90’s, and she returned back to the Czech Republic as Ambassador in the spring of 2006. During her term, in May 2009, relations between Shanghai associations and the Czechoslovak Foreign Institute have been legally founded in the form of an official

Photo: R. Briard

agreement of co-operation, which was signed by the Chairman of the Czechoslovak Foreign Institute Jaromír Šlápota on the Czech side. At the request of the city of Shanghai, the Czechoslovak Foreign Institute is pleased to invite delegations to the Czech Republic. Such meetings offer the opportunity to get to know each other and to learn about both countries, which is more than mediated information could achieve.

Members of the Czechoslovak Foreign Institute management have personal friendly relations with the management of the Shanghai association, as well as members of the Shanghai city council, and some of them visited Shanghai at their invitation.

Several dozen delegations of the representatives of the city of Shanghai have visited the Czechoslovak Foreign Institute over the past fifteen years. They met deputies, entrepreneurs and specialists from different spheres. “Interest in economic cooperation with Shanghai has been growing in the world for many years, as companies from 120 countries are investiting i g there. thh N Nevertheless, thh l CCzechh entrepreneurs t still till ill have a chance to find their place there too,” the vicechairman of the Shanghai commission for interna international relations, and entrepreneur, Tu Hai Ming claims, emphasizing that “China is very interested in new technologies and products.” He gives this advice to entrepreneurs going to Shanghai: “They should get to know the Shanghai setting properly, they should learn if their offer fits the Chinese market.”

HEBR

From left: PhDr. Libuše Benešová, Vice-Chairman, ČSÚZ, Jaromír Šlápota, Chairman, ČSÚZ, and H.E. Yu Quingtai, Ambassador of the People’s Republic of China

Leaders Magazine i III/201 I 1

113

WILL NOT HELP ANYBODY Pho Photo: hoto: Ar Archi chive chi ve

Europe is thinking about the future of nuclear power plants. While few months ago Germany has decided to close all its nuclear power plants by 2036, today everything is different. In last weeks we have seen populist decisions by many European politicians.

Germany’s Chancellor Angela Merkel was one of the first to call for non-nuclear energy. As a consequence Mrs. Merkel has switched off seven nuclear power plants, in order to also decrease the possibility of the Greens wining in the regional elections. She has lost the elections and Germany’s electricity prices have increased.

Other similar decision has been made in Italy where the Berlusconi’s government coalition has decided to halt their nuclear programme. Nevertheless, governmental advisors also add that they count with nuclear energy into the future. Anti-nuclear statements are also made by representatives of the European Commission. On one of the meetings of the Industry, Research and Energy committee in the European Parliament, the Commissioner for Energy and also pervious supporter of “clean energy” Günter Oettinger has emotionally declared to rethink the future of nuclear energy in Europe. Hysteria and panic are the last things we need right now.

114 11 114

Lead Le ader erss Ma Maga gazi zine ne III II/2 /201 0111

The news from Japan have unexpectedly reached alarming levels and I have to say that I am impressed by the heroism and solidarity of Japanese people. However emotions should not overshadow our reasoning. Every such catastrophe can be seen also as an opportunity how to do things better and learn from the committed mistakes. Whenever in the past there was a plane catastrophe I cannot remember that the air traffic was stopped for a long period. On the contrary security rules have improved and there were technological advancements. This is also the path we should take after the accident in Fukushima.

Firstly, we need to carefully analyze what has actually happened and again examine whether European nuclear power plants are sufficiently secure. We have to realize that the nuclear power plant in Fukushima was not damaged by the powerful earthquake, but by the resulting tsunami wave, which has disabled the emergency cooling systems. If we want to prevent something similar happening in Europe, we have to mainly concentrate on the coastal nuclear power plants and not switching off the plants everywhere.

The task of politicians is not to panic in a crisis situation, but to also find solutions through

increasing the safety by employing new technologies. Every such nuclear panic in Europe is completely unjustified. Nuclear energy is the most advanced and best secured areas in the industry. If we allow that he European Union, based on a political agenda, will gradually phase out nuclear energy, we will have great difficulties in securing stable and sufficient supplies of energy. Increasing demand for electricity will probably cause problems for ensuring stable supply of energy and thus the European Union could become dependent on supplies from third countries. Apart from the question of diversification of energy sources there is also the question of European Union responsibility, namely its politicians, for the rest of the world. Nuclear power plants can be build in essence almost “everywhere”, but there is a big question mark, whether “everywhere” are the security rules similarly responsible as in the European Union.

The issue of nuclear power plants should also be discussed in this philosophical way.

Energy is an extremely complicated system, which has strong interdisciplinary links with consequences on social, economic and personal life of each individual. The decisions about the energy mix should be made in a wider context of different factors and each Member State of the European Union needs to take this into account.

I have serious concerns that the European energy is on another cross-road. The changes caused in the European Union because of the Japanese catastrophe will increase the politicization of energy production and energy will become another tool for demagogic political discussions.

By Evžen Tošenovský Member of the European Parliament To be continued... český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

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H.E. Lembit Uibo, Ambassador of Estonia and H.E. Nina Nakashidze, Ambassador of Georgia

From left: Milan Hovorka, Deputy Minister, Ministry of Industry and Trade, H.E. Lembit Uibo, Ambassador of Estonia, and H.E. Nina Nakashidze, Ambassador of Georgia

BRNO PLUNGING INTO

THE WHIRL OF ENTERTAINMENT

Photo: Archive

In Brno one can hear a medley of languages andd meet hundreds of thousands of tourists only oncee a year, at the end of May and the beginning of June, when the festivval of cultural and sports eventss called Brno-Citt y in the Centre of Europe takess place, this year on the fourteenth occasion, at thee lake, in the squaares and other parts of the city.

The most poppular and most eagerly anticipatedd part of the festtival under the Špilberk and Veveřř í castles will be thhe Starobrno – Ignis Brunensis inter-national fireworks competition which is one of itss

kind in Central and Eastern Europe. Like the festival it starts on 27th May and enthusiasts of fireworks accompanied by music will be able to view the performances at the Brno lake, in Denisovy sady and at the Špilberk Castle where the non-competition opening – the ‘prelude’ – and grand finale will take place.

As well as Czech competitors companies from France, Luxembourg and Italy will court the favour of the audience and jury. Dozens of entertainment and information programmes for children and adults will be held in the city centre, at the Brno Exhibition Centre and also in other places around the city.

GOOD QUALITY ART FOR ALL As a lover of good art, I personally do not intend to miss two equally important events that will be associated with the festival and held at the same time. From 27th May until 4th June Brno will be dedicated to theatres, performers, jugglers and their audiences during the second Theatre World Brno international festival. According to tradition it will be dedicated to an important personage in world theatre who is of high ethical and social standing. Following Václav Havel last year, this year’s personage will be the outstanding British director and innovator Peter Brook.

The festival opening and conclusion will also build upon the tradition founded last year. On 27th May the event will be launched with the highly promising Jugglers Night taking place in and around Zelný trh.

The week-long festival will culminnate in the playful carnival Mask Festival in náměsttí Svobody on 3rd June.

In addition, at the beginning of June the streets of Brno will once again be filled with selected works of art to stay there during the summer enjoying the extraordinary nature of this public space. After the successful run in 2008 the cityy council decided to found a tradition of connecting artt with the audience outside a gallery environment and since 2009 this has been a biennial event. Proviisionally attending this year will be names such as Eva Koťátková, Barbora Klímová, Adéla Svobodovvá, Jiří Týn, Rafani Group, Jiří Skála and other artists.

In a nutshell, being an importaant city in Central Europe is not an easy task. One haas to win respect – for example by giving Europe a good laugh once in a while. Together with the festivaal organisers I am hoping for success and looking forward to visitors numbers exceeding last year’s wheen the events were attended by over a million peoplee despite the poor weather. Please accept my invitaation to visit Brno this spring. I firmly believe that thiss year’s programme and Brno itself will light you up as much as the night sky during the firework show.

By Roman Onderka Mayor of the City of Brno

The masks festivity attracts hundreds of spectators

The masks festivity concludes the World Theatre festival

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BRNO SE PONOŘÍ DO VÍRU ZÁBAVY Slyšet pestrou směs různorodýchh jazyků a potkat pohromadě statisíce turistů je v Brně možné vždy jednou v roce, na přelomu kvěětna a června.

Na přehradě, náměstích i v dalších kkoutech města se právě v tuto dobu letos již počtrnnácté odehraje pestrá festivalová směs kulturních a sportovních pořadů Brno – město uprostřed Evroopy.

Tou nejoblíbenější a nejočekávanější součástí festivalu zábavy pod hrady Špilberkk a Veveří bude nepochybně opět mezinárodní souttěžní přehlídka ohňostrojů Starobrno – Ignis Bruneensis, která ve střední a východní Evropě dosud nem má konkurenci.

Začíná stejně jako celý festival 27.. května a milovníci ohňostrojných show s hudboou se opět sejdou na přehradě, ale také v Denissových sadech a na Špilberku, kde se odehrají nessoutěžní zahájení – tzv. prelude – a grandfinále. O přízeň diváků i poroty budou letos soutěžit vedlee českých také společnosti z Francie, Lucemburskaa a Itálie. V historickém centru, areálu výstaviště i jinde pak vypuknou desítky dalších zábavních a poznávacích programů pro velké i malé, ale hlaavně pro hravé návštěvníky.

KVALITNÍ UMĚNÍ PRO VŠECHNY Jako milovník dobrého umění si jáá osobně určitě nenechám ujít dvě neméně významné akce, které Václav Havel was the patron of the first 2010 World Theatre festival Photos: Marie Schmerková

se uskuteční jakožto volné součásti festivalu nebo v souběhu s ním. Od 27. května do 4. června bude Brno patřit především divadelníkům, performerům, kejklířům a jejich divákům, a to v rámci 2. ročníku mezinárodního festivalu Divadelní svět Brno. Bude tradičně věnován významné osobnosti světového divadla s vysokým mravním a společenským kreditem. Po Václavu Havlovi se jí letos stal špičkový britský režisér a experimentátor Peter Brook.

I zahájení a konec festivalu se ponesou v duchu loni započaté tradice. Vše v pátek 27. května na Zelném trhu a v jeho okolí odstartuje mnohoslibná Noc kejklířů a týdenní divadelní svátek vyvrcholí stylově 3. června na náměstí Svobody karnevalově rozvernou Slavností masek.

Počátkem června se nadto ulice města Brna opět na celé léto zaplní vybraným souborem výtvarných děl, která využívají mimořádnosti veřejného prostoru. Po úspěšném ročníku v roce 2008 se vedení města rozhodlo založit tradici setkávání výtvarného umění a publika mimo galerijní prostředí a od roku 2009 toto setkání probíhá formou bienále. V předběžném výběru se letos objevují umělci Eva Koťátková, Barbora Klímová, Adéla Svobodová, Jiří Týn, skupina Rafani, Jiří Skála a další výtvarníci.

Night castle celebration

Zkrátka, být významným městem sttřední Evropy, to nenní jen tak. Je třeba získat si respekk t – například i tím, že Evropu občas dobře pobavvíte. Velmi se spolu s pořadateli festivalu těším, že se nám to i letoss podaří a návštěvnost překonáá tu loňskou, kdy i přes nepříznivé počasí navštívilo akce přes milionn diváků. Přijměte tedy mé pozváání do jarního Brna. Věřím, že vás letošní program m a Brno rozzáří, stejně jako noční oblohu v rám mci přehlídky ohňosstrojů.

Roman Onderka primátor statutárníhoo města Brna

MORAVIAN-SILESIAN REGION will Cooperate with Donetsk Area in the Ukraine Photos: Archive

T e Mo Th Mora ravvian-S -SSili es esia iann Re Regi g on and Don gi onet etsk et sk Areea ar ae very ve r sim ry mililar a reg ar egio ioonss becau auuse of thhei eirr st stru ruct ru c ur ct uree an andd hist hi stor st o ic or ical al dev e el e oppme m nt of inndu dust dust stririr ess. Th Thei e r st ei stru ruct ru ctur ct ue ur w s ba wa base s d on utiliizizing se ng siggni n fifica c ntt coa ca oall ddeepoosi s ts ts,, whic whhicch r su re sultlted edd in thhe develoopm men e t of of thee met etal aalllu lurg urg rgy, y, che y, hemi m ca mi call a d en an e gi g neeer erin ing indust striries st e . Fo es F r th t is rea easo son, so n bot n, othh part paart rtie ie s ie ies aree in ar inte teerest rreested stted e in eccon onom o ic om i cooope pera raatit on o issue sssuuees,, as we wellll a inn thhe deevveeloopm as men entt off pow ower err engin nggin ineeerir ngg, trt aannsp s ort, orr t, waaste stte trtrea eaatm men ent,t,t envvirron o m meentt al a prote t ctio ioon an a d sccieenc n e.

T he Mo Th Mora ravi ra vian vi ann-Sil -SSilles esia iaan Re Regi gionn can gi a eve v n off feer oppport poort r uu nititities ni es in to tour u is ur ism. m. A reggul ular ar f lil gh ghtt co conn nnec e tion betwe w eenn we thee ca th c pi pita tals ta ls of booth the regio eggioons cou o ld heellp inn ext x ten eenndiingg touurissm annd trt adde. to e T he hese see wer eree th t e ma main in rea easo sons so ns for thhee visi vi s t of o Morravviaann-Si Siileesi sian ann Reggio ionn Pr Pres esid es iden id den ent,t,t Mr. Jaros arros osla laav Paalaas, s in Uk Ukra raainnia i n Do Done neets tskk att thee endd of Ma M rcch th t iss year ye a . Thhe pr ar pres pres e id iden entt was en waa ac acco cco comp m annieed by 14 re mp repr pres pr essen e tatitiive ta vess of com o paani n es e int nter eres esste tedd inn tra rade dee rel e at a ions nsshhiipss.

Thhe trtrip ipp was arrrran ange an geed byy the Mor o av a ianiaann-Si S leesian Si an Reggio an i n in coo oope p ra pe ratitition o with th on t e Reegi gion o al on al Eco c no nomi m c Ch mi C am a ber,r thee Un th Unio i n fo io f r thhe Deeve v lo lopm men en of the Morraavviaan--Si ent S lleeesi sian si a R gi Re gion on and on n und n er acttiv ive ass si sist ist stan ance an c of the thhe Coonssul u ate Gene Ge nera ne rall of the ra h Cze zech chh Rep epub u lil c inn Donet ub onnet sskk.

Thhe re regi gion gi onal on al del e eggat a io ionn wa was re rece ceivved ed by the Do D ne n tsk Area Gov Ar over e noor Mr M . An Anat atol olij Michaajljlov ovvičč Blyzňňju j k. Att thhe en endd of of thee meeti eeetitng ng, a Me Memo mora mo rand ra and n um m onn Coopperatition on beett we ween en thee Mor en o av avia iania n-Si nS leesi Si sian an Reg e io ionn and Done netskk Arrea was sig igne ned. ne d Bot d. othh pa part rtie rt iess ag ie agre reeedd to co reed coop opper e atee in a few w lon ongg-te gt rm proje te rooje ject cts. ct s T he s. heyy co comm mmititi te mm t d to t sup uppo port po rt e trt ep en epre reene neur urss inn buiild ur ldin inng an andd im impr prov pr o inng mu ov mutu tual tu ally ly ben e efifici cial ci al traadee rel elat a ioons at nshi hips hi ps.. Co ps Coop oper op erat er a ioon inn the at h fields of the e er en e gyy ind ndus usstrtry, y mod y, oder erni er niza zatitiion of production facilities, za andd suupp an pplilies of te tech chno ch hno nolo loggiiies lo es wilill be es be suupppoort r ted edd as we w ll. lll.

Thee ag Th agennda alsso in agen incl clud cl clud uded deedd env nvirirron o meent n al prote rotect ro teect c io ion, n, edduc educ ucat atio at i n, n hea ealtltlthh seervic rvvic ices es,, ccuultltuure, es ure,, spoorts annd touuris urism. m.

Thee Co Th Cons ons nsul ulat ul atee Ge at Gene nera ne rall of ra o the Czeech Reeppubblilicc in i Doone nets tssk an andd th t e lo loca call Co ca C mm mmer errciial andd Ind erci ndus ustrtrt iaal us C am Ch ambe berr ar arra rang ra n ed ng e bili at ater erral mee eetititing ngs beetw ng ngs t ee eenn th thee Mora Mo raavi vian vian a -S -Silililes e iaan Re es Regi gionn bussin gi ines essm es sm smen men andd theeir pot oten en-en titial all busin ussinness s pa part rttne rtne ners rrss fro r m Do Done nets ne tskk Ar ts A ea. ea. 43 ea 4 reppreeseent n at ativ ivvess of reegiionnal compa omppaani om n es and n org rgan anizizizat atio ioonss toookk par art.t Mosst pa part rtic iccip i an a ttss had no prev prrev evio iouus io us exp xper erieenc er ne in int ntterna errna n tiion onal aall traadee. Th T e pa part rtne rt n rs rs, ho howe w veer, con we o si sideere redd thhe re resu sultltt s to su t be pr p om omis issinng foor thhe fu futu ture tu re.. re Thee Moora Th r vian viiann-S -Silessian Regi gion on deleg egat atio ion wa wass re rece ceivedd a so by thhe Ci al City of Donetsk Ma M yo yor Mr Mr.. Al A ekksandr Allek ekse seje jevi v č Luukjačenko. Gu Guests weree in i foorm rmed ed how o the city hadd beenn prep eparingg the fo footba ball cha hamp m ioonsshi mp hp EUURO O 201 012.

A exhibbition of photoos shhow An o ingg th the be beau auty tyy of thhe M raavian-SSilesian Regi Mo g onn was as ope pene nedd in the hee preese se sence o the Mor of oraviann-Si nSile Si lesi sian Reg egio ioon President and the D ne Do netsk Ar Area ea Govver erno nor. It can be seen in the commercial nor no a d en an ente nte tert rtainment t centre called the Donetsk City. It will be opened for the entire following month. Approximat ately 8,000 people a day visit the Donetsk City and they cann see the presentatiton of our region there.

Jaaro rosl slav sl avv Pal alas as Prresid ident of the Moraviaan-Silesiaan Region

Signing ceremony of the Memorandum on Cooperation between the Moravian-Silesian Region and the Donetsk Area. Jaroslav Palas, President of the Moravian-Silesian Region and Anatoliy Mikhailovich Blyzňjuk, Governor of the Donetsk Area

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MORAVSKOSLEZSKÝ KRAJ bude spolupracovat s doněckou oblastí na Ukrajině Moravskoslezský kraj a Doněcká oblast jsou velmi p do po d bnné regi gion gi ony. on y. Je to t dáno zejména skladbou a historirckk ým to m v ýv ý voj ojem em m prů růmy ůmy myslu. Jeho struktura byla ovlilivnněnna vyyuž ov u ív í án áním í v ýz ím ý naamn m ých ýcc ložisek uhlí, které vedl ve dlyy př dl před edevší ed ším m k rozvoj oji hu hutn tnic icctvví,í met etal t al alur u gi g e, chemického průůmyysl kého ké sluu a stro sttro r jíjíre rennstv tví.. Prrotto ot ot áz otáz á ky ekoonomi noomi mick cckké spol sp olup ol uprá up ráce cee, roozvvoj o e en e er e geetitiky ky,, do ky dopr prrav prav av y, y naklá akkláádááníí s od odpa p dy, pa dyy, och c raanyy živ ivot ottní ního ho pro rost stře st ředí ředí dí,, al a e i vě vědy dyy a v ýz ýz-kuumu obbě sttraany zaj a ím ímaj ajjí. Morrav avsk skos sk ossle lezs zský zs k kraaj má co ký nabí na bídn bí d ou o t i v ob obla l st la s i cceesttov o ního hoo rucchu hu.. Je Jeho hoo roz ozvo voojii stej st ejně něě jakko rozv zvoj o i oobbch c od o u mů může v ýz ýzna namn na mnně ppoomo mně m ci zřízízení prrav zř avid iddel e né ného ho lettec ecké ck ho spo p je j níí mez ezii me metrtrtop o ol o emi obo bouu krraj ajů. ů. To by b ly hlaavn vníí důvo důůvoodyy náv ávšt š ěv št ěvyy hheejtmana na na Mooraavs v ko kosl slez sl ezsk ez skkéh é o kr krajje Ja Jaro rosl ro s av sl avaa Pa Pala laassee v Doněckéé obla ob l st la stii na Ukr krajině, která r see us usku kute tečn č ilaa koonc čn nceem em bře ř znna leto le tošn to šnníh íhoo ro roku oku ku. u. He H jtmanaa dop opro op rová váze ázelo t aké 14 zás ástu tupc pů fifire rem, re m, k te teré ré maj ajíí zá záje jeem na navá váza váz vá zat v ob oblaast stii ob obchhod odní v zt ztahy. Ak hy Akci ci usp spoř ořád oř ádal ád al Mor orav avsk av skkos o leezs z ký kra rajj ve spo poluupr p ác ái s Krraj ajsk skou sk ou hos ospo podá po dářs dá řsko řs kouu ko ko komo m ro mo rouu Mo Mora ravs ra vsko vs koosl kosl slez ezsk ez skéh sk éhoo éh kraj aje, aj e, Sdr e, druž u enním pro roz ozvo vojj Mo vo M ra ravs vsko vs kosl ko slez sl ezsk ez skéh sk éhoo kr éh k aj ajee za a tivníí po ak pomoocí Gener erál er á níího h konnzu zulá látu lá tu ČR v Do Doně něck ně cku. ck u.

K ajskáá de Kr d legaace bylla př přijatt a gu gube beern rnát átorrem Don át oněc ěcké ěc ké obla ob last la sti An sti st Anat atol at olijem ol ijjem em Mic icha chajl hajlov ha jllov ovičem ičem Bly ič lyzň zňju zň zňju juke keem m.. Set etká kááníí kání bylo by lo zaavvrš ršen enoo po podp dppis isem em Mem emor oran anda da o spo polu luprrác ácii me mezizi Moravskoslezským krajjem m a Doněckou oblastí. V něm ěm

se obě strany dohodly na spolupráci v několika perspektivních oblastech. Především v ekonomické oblasti se zavázaly podporovat podnikatelské subjekty v navazování a rozvoji vzájemně výhodných obchodních vztahů. Podpořena bude také spolupráce v oblasti energetitky,, modernizace výrobních kapacit a dodávek tech tech te chnoolo loggiií.í. Mez e i témaaty spolupráce nechyběly ani ochr oc h anna žiživotn hr vootn tníh ího pr íh pros ostřtřt edí, školství, zdravotnictví, os kuulttur ura, a, spo port rtt a tur uris risstitick c ý ruuch. ck chh S po pomo m cí mo c Ge G ne neráln lníh íhoo koonz n ullát á u ČRR v Don o ěckuu a mí míst s níí obc st b ho h dnní a pprrům ů yysslo lové vé koom morr y by byla la pod od-nika ni kate teelů l mzM Mooraavsko vsskoosl s ez ezsk skkéh é o kr kraj ajje př přip ipra ip rave ra vena ve naa bililat a eat e ráln rá lnní jeedn d áánní ní s poote tenc nccio ioná náln ná llnním ímii obbcchhoddní ním mi par mi a tn tner ey er z Do Doně něck ckéé ob ck oblaastti.i Zúč účas astn ttnnililoo se jicch 433 zás ástu stu tupc p ů fifire pc ire rem m a innst s iittuc u í z ob o laast sti.i.i Vět ě ši š naa úča č st stní n kůů nem ní eměl ělla žá ěla žádn dnéé dn před př eddch c oz ozíí zzkkuš ušeen enosstii s mez ezin inár áárrod odní ním ní m obbchhod odem odem m.

Výýsl s ed e ky k y vša š k pa p rttne n ři z obo bouu sttra rann hoodn dnot ottililii jak a o sl slibbné pprro buudo douc uccnost noostt.

Dele De l ga le g ci Mor orav avsk av sskkos osle leezs z ké k ho kra raje jee přiřija j l ta ja také kéé pririmá m má tor to or mě m st staa Do Doně něck ně ěck Aleks leks le ksan andr an ddrr Ale leks ksej ks ejev ej evič ev ičč Luk u ja j čeenk n o. o V rá rámc mcii pr mc prez ezzen e taacee měssta byl ylyy ho host stům st ům pře ředs dssta tave v ny ve info in foorm rmac acee o příp ac ípra ravá avá v ch měs ěsta na evvro ěsta rops pský ps k fot ký otba balo ba loový lový šamp ša mpio mp ioná io oná nátt EU E RO 201 0122..

01 Běhe Bě hem m of of ic iciááln l í ná n vvšště t vy v Donněc ěcké k obllas ké astiti byylla roovn vněž ě ěž za účasti he hejtjtma maana Mor orav avvskkos osleezs zské kého ké h kraaje a gub ho uber errná ná--

Jaroslav Palas, President of the Moravian-Silesian Region accepts the key to the city of Donetsk, from the hands of Alexandr Aleksejevič Lukjačenko, Mayor of the city of Donetsk

toora Don oněc ěccké ěcké k oblas blas bl astiti zahháájjen e a vvýýst stav avva fo fotoogr graf af iíí zachhyc ycuj ujíc uj ícíc íc í h kr krás ásy sy Mo Mora r vvssko kosl sllez e sk skéh ééhho kr kraj aje. Je um aje. mís í tě těna naa v ob obch c od ch odně ně záb ábav avní av ním ní m ce c nttru Don oněc ěck Ci City t . K vi ty v dě dění níí bude udde po celý ellý ná n sslleddujíc íccí mě m sí síc. c Don o ěcck Ci City navšt avvšttív íví de denn nnně ccaa 80 cc 8000 00 liddíí,, k te 00 teříř moh o ouu preezeent ntac acii na ac n še š ho kra raje jjee shlé sh lédn lé dnou dn ouut.t J roossllavv Pal Ja alas ass hejt he jttma m n Mo Mora ravs vsko kosl s ezsk sl ezskkého ez éhho krraj ajee

One of the most modern football stadiums in Europe, the Donbass Arena is the future venue of the Euro 2012

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CZECH COMPANIES ARE STILL NOT THAT VISIBLE IN THE EU DEBATES Our interview this week brings together three Brussels-ba Brussels-based professionals who show that bringing together different areas of expertise is the way to go in understanding the he increasingly complex world of EU regulation and funding. Laurent Chokoualé Datou is a Frenchman who is currently General M Manager of Edelman/The Centre. Laurent has two decades of experience working in EU public affairs, and has worked with a variety of industries including media and entertainment and ICT. He is experienced in comp co mpet etititio ionn an andd an antititr trus ustt. Ma Mart rtin in Por orte terr is an Eng nglilish shma mann an andd cu curr rren entltlyy Ma Mana nagi ging ng Dirirec ecto torr of Ede delm lman an/T /The he Cen entr tree. Aft fter er 10 ye year arss working in EU public affairs, Martin was one of the founders of The Centre, and has been its Managing Director for 7 years. Martin works particularly in the areas reas of energy energ and sustainability. Petra Ringrose is Czech. She has been working in Brussels for 10 years, first as a Managing Director tor of SN C Consultancies, an independent Brussels-based lobbying and consulting company, and recently as Executive Director of the newly established Association called ACCESS EU, which is working together with Edelman/The Centre.

Photos: Archive

Martin: Edelman/The Centre calls itself a thinkdo-tank – can you explain what this means?

Our think-do-tank approach combines a consultancy that gives strategic support to our clients with their European public affairs and communications ations strategies, as well as a discussion forum, The Centre, which puts our own public engagement thinking into practice. Located in Brussels, we are surrounded not just by many policy-makers, regulators and politicians who work for the EU and other international institutions here, but also by the wide range of other stakeholders, from the business community and NGOs to media and other think-tanks. We seek to understand and work with all of these people, helping them to give shape to their ideas and put them into practice through collaboration with others.

Laurent: Edelman is a long established company – why did you join up with The Centre?

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Edelman l is now thhe leadi ding global PR firm with activities spread across industry practices (such as healthcare or technology, for instance) and service disciplines including public relations, marketing communications, corporate communications, crisis communications, public affairs and digital. We felt that the addition of a team of seasoned, successful public affairs professionals operating both a consultancy and a highlevel policy discussion platform would provide strong enhancement to our own capabilities in the Brussels context.

Martin: Has the lobbying and public affairs scene changed in Brussels in the last few years?

It has changed substantially, Petra Ringrose and for a range of reasons. easons. It is a more crowded and nd competitive ve space, s ce, aas there are many more organisation o anisations present, sent, a reflection of the enlarged rged EU itself, but b also itss growing powers not just within the EU but also globa bally. Lobbyists follow power like ike be bees round a honey-pot! honey-pot And public affairs has had to adapt to the wide-spread changes in the media th ed landscape, with social media and the internet changing the way policy-makers and the media receive, process and share information and views. Transparency and multistakeholder engagement processes are even more essential to success, along with the ability to think long-term and to act quickly and cleverly in the shortterm, as immediate situations dictate.

Laurent: Has the accession of countries from Central and Eastern Europe had an impact on the type of work being done?

Not so much on the type of work, but more on the context of that work being done. Stating the obvious,

enllargement has introduc d edd add ddiitiionall lilinguisti i ic and cultural diversity across the various institutions, and indeed the overall stakeholder environment. As public affairs and communications practitioners, we may have had to adapt to slightly different corporate cultures at times.

Petra: Your association is a relative newcomer.

How did you come to work with Edelman/The Centre?

Through my own company, SN Consultancies, I had worked on a number of projects with Martin and his colleagues at the Centre over the past few years, and I always appreciated their combination of expertise and long-term thinking. We were establishing our Association ACCESS C EU around the same time that Edelman and The Centre dec decided to join forces here in Brussels, and when we started to work on some specific projects ects and loo looked for strategic partners we all agreed greed that Edelman Edelman/The Centre are an ideal partner er for us. us Martin/Laurent: As long-time professionals in Brussels, how do you rate the ability of Czech companies to get involved in the policy debates that affect them?

Martin: For the most part, Czech companies are not that visible in the wider public debates on, e.g. competitiveness and the low carbon, digital or healthy aging agendas, that transcend individual sectors such as telecoms, energy or food and drink, for example – but in specific areas they are clearly active and learning quickly how to exercise influence on decisions made here, which affect them and their competitors across the EU. The lesson that is hardest to learn, and which took businesses (from even the largest original EU Member States) the longest to learn, is that national influence alone is not sufficient to defend or advance interests in Brussels – this requires a wider range of contacts and influence, which takes time to cultivate and an approach that is truly European.

Laurent: I second what Martin said. Even some companies from long-time Member States are yet to master the art of managing challenges or crea-

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ting advantages for themselves through early and direct engagement in policy and regulatory debates in Brussels. And so the ability of Czech companies is by nature as good, if not better in certain cases, as that of other nationalities represented in the EU. At this point in time, it is fair to say in my view that their visibility is overall limited.

Petra: You have an interesting business model.

How does it deliver value to your clients?

Like any Brussels-based public affairs group, ACCESS EU aims to deliver the best services for its members. But, as an Association, ACCESS EU goes further than that, since it encourages an exchange of the best practices amongst its members, who might be competitors in their own field, but who can learn from each other as members of the same Association. Bringing together exper expertise from all our members also enables bles us to pro provide our members with cost effectivee solutions, which w is an important issue for clientss at a time when the business climate is particularly ticularly tight. Martin Ma and Laurent were talking earlier about the visibility visib of Czech companies in Brussels,, and one of our goals certainly is to help our members mbe from the Czech Republic to be better heard rd and to be better equipped to take part in the policy debates here.

Our activities are to support and complement the already existing Brussels representations of Czech companies and Czech employers and entrepreneurs associations such as CEBRE – Czech Business Representation ntation to the EU (established in 2002).

Martin: Some big companies have their own representative offices here; some are represented by others; some just try to keep up from home; how should a company from central Europe, for example, go about trying to understand and influence things in Brussels?

In looking at the various options here, the two key considerations are how large a company is (and not

just in its ‘home’ country), and the extent to which its sector is subject to EU regulations.

Whether from central Europe or indeed anywhere else, wherever w a company pany has mu multi-national market interests and an is exposed to a high degree oof EU regulatory control, the case for having a permanent mane representative in Brussels sels is strong, as the competitive tiv benefit of networking and early and good intelligence gained should more than offset the cost involved of the operation.

Laurent: We hear a lot about industrial policy coming back into fashion as governments seek to protect jobs, or face up to competition from Asia. What sort of effect does this have on the type of areas which you are working on?

That is true. For many years, “Industrial policy” has been a mere incantation in Brussels and this seems to be changing little by little as Member State governments accept that some form of coordination is in order to fend off the combined challenges of the economic downturn and globalisation. Much of the Agenda 2020 strategies rest on what one might call an industrial policy approach, namely a diagnosis of Europe’s gaps and strengths in a particular domain; the definition of a vision for the domain in question; the identification of legislative and regulatory standards and other requirements to incentivise investment, growth and foster competitiveness; common work and development platforms involving multiple stakeholders, including government and industry; and external aspects, that is to say adLaurent Chokoualé Datou dressing how the EU should be dealing with its world partners in the domain in question. The Digital Agenda, which hich is Europe’s response to the massive shifts entailed in the growth of the digital economy globally, global obeys that at logic. This situation creates multiplee engagement eng opportunities for or our clients, along with some me pressure to come up with the right answers in a highly competitive environment.

Laurent: Laurent, you are a specialist in competition policy. We know the Commission has a lot of power in this area.

Has the way in which it uses this power changed during the economic crisis?

No, not really. There was a time when the urgency of

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Martin Porter

bailing out failing banks led the European Commission to fast-track state aid reviews on a temporary basis. Also, there may have been a couple of reforms in the civil justice domain that have been postponed.

For the rest, the view remains that breaching competition rules basically harms businesses and consumers, and the advent of an economic downturn should offer no excuse for that to happen. And for that matter, the crisis may just provide reinforcement to the Commission’s mmission s determination de to clamp down on breaches ches of comp competition rules.

Recently, Commissioner er Almunia reiterated the role of fines as a deterrent to anticompetitive behaviours. Shifts ts in i the Commiss ssion’s decisional practice are rooted in doctrine and pragmatism, but are by and large inse insensitive to the economic context.

Martin: Martin, you have done a lot of work on energy policy. What do you think energy companies need to be looking at right now?

The energy policy agenda is huge at present, and unlikely to diminish in the near term. Driven by a ‘holy trinity’ of strategic, long-term considerations related to the need to improve the security of supply for the EU as a whole, the imperative to essentially fully decarbonise the power sector by 2050, and the gains available to the economy, business and consumers from lower costs and efficiency, there is a slew of new policy proposals under discussion. Completing the internal market, creating a genuine pan-European ‘smart’ grid, shifting generation to renewable or lower carbon alternatives to coal, improving energy efficiency, developing and deploying Carbon Capture and Storage... the list goes on and on, and no company in the sector can afford to ignore any of it.

By Michal Kadera, Director of CEBRE

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EU matters debates From left: Michal Kadera, Director, CEBRE, Ivan Voleš, Relations Adviser to the President of the Czech Chamber of Commerce and Member of the EESC, Věra Knoblochová, Acting Head of Consumer Affairs, Industrial Policy, SMEs and Tourism, Czech Permanent Representation to the EU, Henning Ehrenstein, Policy Development and Coordination of the Internal Market, European Commission, Ben Butters, Director of European Affairs of EUROCHAMBRES, and Luc Hendrickx, Director for Competitiveness of Enterprises and External Relations of UEAPME

On 16th March 2011 CEBRE – Czech Business Representation to the EU in cooperation with the Czech Permanent Representation to the EU and Confederation of Employers´ and Entrepreneurs’ Associations CR organized a debate about “The Single Market Act“ in Brussels. Representatives of the European and national institutions as well as business associations discussed the Commission’s proposal aimed at the Single Market relaunching. Participants of the debate agreed that the balanced approach, clear prioritizing and clear support of European institutions, Member States and stakeholders is essential for delivering tangible results to businesses, consumers and citizens.

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THE SINGLE MARKET ACT HAS TO DELIVER TANGIBLE RESULTS BY 2012!

From left: Henning Ehrenstein, Policy Development and Coordination of the Internal Market, European Commission, Ben Butters, Director of European Affairs of EUROCHAMBRES, and Luc Hendrickx, Director for Competitiveness of Enterprises and External Relations of UEAPME

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more photos and electronic version available on www.leadersmagazine.cz

From left: Michal Kadera, Director, CEBRE and Ivan Voleš, Foreign Relations Adviser to the President of the Czech Chamber of Commerce and Member of the EESC

Representatives of the Czech public administration, civil society and business sector gathered in Prague on 8th April, 2011 to discuss the Commission’s Single Market Act. Participants agreed that the Commission paper should primarily be a tool and not a Single Market target. The Single Market Act should focus on growth and job creation. The event was organized by the Confederation of Employers’ and Entrepreneurs’ Associations of the Czech Republic in cooperation with CEBRE – Czech Business Representation to the EU, Representation of the European Commission in the CR and Information office of European Parliament in the CR.

From left: Jaroslav Šulc, Macroeconomic Adviser, CMKOS, Ivan Voleš, Foreign Relations Adviser to the President of the Czech Chamber of Commerce and Member of the EESC, Prof. Jaroslav Jakš, Professor, Metropolitan University Prague, Michal Minčev, Director of the Internal Market Department, Ministry of Industry and Trade Czech Republic, Alena Vlačihová, Deputy Director, CEBRE, and Martin Stašek, Press Officer, EU Delegation in the Czech Republic

THE SINGLE MARKET ACT IS THE TOOL TO RE-LAUNCH THE SINGLE MARKET AND NOT ITS AIM!

From left: Ivan Voleš, Foreign Relations Adviser to the President of the Czech Chamber of Commerce and Member of the EESC, Prof. Jaroslav Jakš, Professor, Metropolitan University Prague, and Michal Minčev, Director of the Internal Market Department, Ministry of Industry and Trade Czech Republic

From left: Michal Ševera, Executive Director of SMG, s.r.o. and Vice-president, Czech Confederation of Commerce and Tourism and Jaroslav Šulc, Macroeconomic Adviser, CMKOS

From left: Michal Ševera, Executive Director of SMG, s.r.o. and Vice-president, Czech Confederation of Commerce and Tourism, Jaroslav Šulc, Macroeconomic Adviser, CMKOS, Ivan Voleš, Foreign Relations Adviser to the President of the Czech Chamber of Commerce and Member of the EESC, Prof. Jaroslav Jakš, Professor, Metropolitan University Prague, and Michal Minčev, Director of the Internal Market Department, Ministry of Industry and Trade Czech Republic

IN PARTNERSHIP WITH LEADERS MAGAZINE

BUSINESS NEWS M

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DID YOU KNOW THAT… …a public consultation on corporate governance has been launched?

The European Commission wants to avoid another financial crisis and decrease its impact. Therefore it has launched a public consultation on improvement of current corporate governance mechanism in the EU. Thee pu Th publ blic ic con onsu sultltat atio ionn fo focu cuse sess on num umbe berr of iss ssue uess such as the possibility of increasing shareholder participation in corporate governance, nce, mon monitoring ng and enforcement of existing national al corporate goverg nance codes and diversity and activities of boards of directors. The deadline for sending ending responses respon to the consultation is 22nd July, 2011.

201 ...the Transport 2050 Strategy has been adopted?

On 28th March, 2011 the Euro European Commission adopted a Strategy for EU transport por aimed at increasing the competitiveness and mobility, ty cutting CO2 emissions by 60 % by 205 0500, removiing persiistiting obbsttacles l in key areas to create a genuine Single European Transport Area and last but not least breaking EU dependence on imported oil. This requires a transformation of the current European transport system (e.g. no conventionally-fuelled cars inn cities, ities, an incr increase of the use of sustainable low carbon on fu fuels iinn avia aviation and a decrease in CO2 emissions in shipping). shippin ...Member States should have national strategy for Roma integration?

The European Commission calls cal upon the Member Stat St ates es to ad adop optt a strat s rate ategy gy for Rom omaa in inte tegr grat atio ionn. Aro roun undd 10–12 million Roma om people still face a discrimination and their rights are not often respected. The European Commission published a European Framework for National Roma Integration Strategies that should help Member States to prepare national tional Roma pol policies and to mobilise EU funds for Roma inclusion. …EU Prize for Cultural Heritage/Europa Nostra was awarded?

The European Commission and Europa Eu Nostra announced 27 winners ners of the European Union Un Prize for Cultural Heritage/Europa Nostr Nostra Awards on 7th April, 2011 20 11. Th Thee aw awar ardd ce cere remo mony ny wililll be hel eldd at Con once cert rtgebouw in Amsterdam on 10th June 2011 in presence of European Commissioner for Education, Culture, re, Multilingualism and Youth, Androulla Vassiliou and the world-renowned tenor Plácido Domingo. The winners were selected by independent juries representing the best achievements of conservation, education and research. Cultural and creative industries provide jobs for 8.5 million people in the EU and account for 4.5 % of EU GDP. …the micro-enterprises will be exempted from drafting statements of balances?

Thee pr Th prop opos osal al of th thee Eu Euro rope pean an Com ommi miss ssio ionn ai aime medd at cutting red tape for European SMEs will finally concern smaller group of businesses. The Commission proposed to exclude the micro-enterprises from the obligation to publish their statements of balances. In the proposal micro-enterprises are defined by their turnover and balance sheets, which in the first draft – already agreed by the European Parliament at first reading – stood at

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1,000 000, 00 0,00 000 and €500,000 respectively. However the most recent dr draf draft aftt in i the th Council working party has slashed these hese figures f in half to €500,000 and €250,000 respectively. ectiv The proposal has to be adopted by Member States es who will probably support it.

LET’S TALK NUMBERS €24.2 million for the electromobility Thee Th Th Thee Eu Euro rope pean an Com ommi miss ssio ionn in inte tend ndss to sup uppo port rt a European electromobility initiative titled “Green eMotion” along with forty-two partners representing electric cars manufacturers, municipalities, universities and technology and research institutions. The aim of this initiative is to contribute to the development of know-how and exchange of experience in some regions and to enhance the introduction of electric cars to the European market. The Commission will co-finance the initiative with €24.2.

Steel producers have to pay €269 million The European Commissi Th i ion decid idedd that h 17 produd cers of prestressing steel have to pay a fine for price fixing and for market-sharing between January 1984 and September 2002. The cartel was operating in all EU countries, except the United Kingdom, Ireland and Greece. According to the Commission the cartel infringed the EU ban on cartels and restrictive businesses practice.

Additional €10 million for Japan The European Commission decided to increase the humanitarian aid to Japan by €10 million. The money will be use sedd to rec ecov over er Jap apan an fro rom m re rece cent nt ear arth thqu quak akee an andd tsunami. On the grounds, it will be used to help more than 30,000 people by ensuring their decent living and providing them with food and water. Targeted areas are Iwate, Miyagi and Fukushima province. This initiative was launched by Kristalina Georgieva, European Commissioner for International Cooperation, Humanitarian Aid and Crisis Response.

234,000 go to former employees of Unilever On 5th April, 2011, the European Parliament me agreed reed on the financial assistance for more thann 630 former form mer employees of U Unilever who lost their job last year. The Th reason son bbehin hin indd wa wass th that at Uni nile leve verr sh shut ut down dow its factory orr y in Nelahozev eves, Central Bohemia. The assistance will be b providedd by b the European Globalization Adjustment Ad ustment Fund (EGA) thatt w was established in 2007 to help redundant workers to find new job through job-search wo arc assistance, re-training or entrepreneurship promotion or aid for self-employment. $100 billion per year for climate action in developing countries Developed countries agreed in December last year in Cancún to mobilize jointly $100 billion per year to fund CO2 reduction in developing countries. The money willll be re wi rele leas ased ed und nder er the con ondi ditition on tha hatt th thee la latt tter er wililll introduce transparent and meaningful emission cutting plans. According to the European Commission’s report, prepared on the ECOFIN request, the mobilizing of 100 billion per year is feasible only through right balance between public funding, funding raised from international carbon markets and private funds, partly leveraged by development banks. Moreover, the strong

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international coordination is needed to ensure an efficient spending.

EU IN THE WORLD

Ukraine will participate in EU Programmes The In the framework of Eastern Partnership, Ukraine will obtain an access to a wide range of EU Programmes. The European Union and Ukraine signed an EU-Ukraine Protocol enablingg Ukraine’s involvement in EU programmes focusing on business and entrepreneurship, energy, infrastructure, communication and technology. Active Ukrainian participation in EU Programmes is an important catalyst in supporting the process of social and economic reform in Ukraine, and will promote co-operation and the transfer of best practices.

European Investment Bank granted a loan to Jamaica Four international financial institutes granted a longterm loan to finance an extension of a Jamaican toll road ro ad. Th Thee Eu Euro rope pean an Inv nves estm tmen entt Ba Bank nk, In Inte ter-rAm Amer eric ican an Development Bank and International Finance Corporation (IFC) will each lend USD 53.6 million and PROPARCO USD 37.7 million. Jamaica will also receive ve an equity representing USD 4.6 m and USD 2.4 m respectively by IFC and PROPARCO. The 10 km road extension will reduce traffic congestion, road accidents and emissions.

EU-US worldwide business information promotion The European Commission and U.S. government agreed on the basis of the Transatlantic Economic Council (TEC) a set of ten basic principles required for trade in information and communication technologies (ICTs). EU and U.S. in cooperation peration with oother countries will promote these principles ples around nd the t World with the aim of supporting a global obal ddevelopment evel elop opm of ICT networks and services andd a competition for business b between service providers andd local businesses. businesse The EU and the U.S. will promotee com common principles such as transparency, open networks netw or non-discriminatory use of local infrastructure. u New programme for Neighbouring Countries The European Commission adopted a regional information and communication programme for the period 2011–2013. The programme, with a €14 million budget, will help to improve the comprehension and visibility of EU policies as well as co-operation in selected sixteen neighbouring countries. It consists of training sessions for journalists, media monitoring and opinion polling project as well as interactive web portal that will include the information about European Neighbourhood Partnership.

■

Brought by CEBRE – Czech Business Representation to the EU (kindly supported by CzechTrade), www.cebre.cz

Amsterdam Athinai Berlin Bratislava Bruxelles Bucureşti Budapest Dublin Helsingfors Kobenhavn Lefkosia Lisboa Ljubljana London Luxembourg Madrid Paris Praha Rïga Roma Sofia Stockholm Tallinn Valletta Vilnius Warszawa Wien

The New Era of Strategic

COMMUNICATIONS David Henderson is an accomplished author, veteran Washington-based communications strategist and advisor, and award-winning former CBS News correspondent. He is owner of News Strategies, specializingg in online crisis management, issues advocacy and brand journalism, with offices in Washington, D.C. and the U.K. Online: www.newsstrategies.com Over many years of working closely with chief executive officers and other leaders – first as a journalist for a major television network in the United States and now as a strategic communications advisor – I have seen how important it is for a communications program to be a “valued asset” in their eyes.

Today’s executives value unique business initiatives that deliver competitive advantages and meaningful results.

Unfortunately, many of the techniques of traditional public relations, marketing, communications and advertising have not changed in decades and are considerably less effective in the digital era. Executives today tend to view those traditional techniques as expense items, not assets.

That is one explanation for the growing and considerable interest in the technique of what is being called “brand brand journalism journalism” – both in Europe and America – as a means to connect with audiences, broaden awareness and build trust in corporate brands.

Stated simply, brand journalism helps to create a timely competitive edge through the appeal of real news and corporate storytelling, created by professional journalists. It is an effective model for managing how a company, issue, image or brand is perceived and talked about.

Brand journalilism is a refifinedd andd contemt porary new approach to communications for a company or organization in today’s noisy and crowded world of traditional marketing.

It creates clear distinction for what you have to say.

Using the credible principles and standards of journalism and legitimate news, brand journalism is particularly effective online through interactive news sites similar in appearance and style to websites of any other respected news source. Enhanced by news-style photos and video, audiences can easily recognize unique value.

IN PARTNERSHIP WITH LEADERS MAGAZINE

While the original concept of brand journalism was spawned by forward-looking marketing experts some years ago, it is today neither a marketing discipline nor associated with PR. It is not about the traditional style of pushing out announcements, promotions or press releases that seldom get any attention.

I describe brand journalism as a seamless triangle of interaction and engagement that merges journalism, strategic communications and online technology in order to connect people ... audiences.

Photo: Cecil Brathwaite The pillars of journalism – facts, openness, balance and transpaIn working together with a variety of compa comparency – work together with the core elements nies and organizations, my company has found of strategic communications – visionary planthat brand journalism helps key audiences to ning, research, clear messages and defined better understand the value of products and purpose. This chemistry becomes powerful services. Interestingly, we are often engaged by when utilizing the vast spectrum of online comcompanies after traditional and more expensive munications tools that we have, just a click away PR and marketing attempts have failed. on our computers.

What once was envisioned for marketing now At a time when the mainstream news media is creates unique differentiation, competitive postruggling to maintain profitability and viability sitioning, leadership, and tangible return on around the world – challenged by the spectrum investment for companies and organizations. of new resources for news and informationBran Br andd jo jour urna nalilism sm is a vaaluuable asset for comshar sh arin ingg of offe fere redd by the Int nter erne nett – br bran andd jo jour urna na-panies that genuinely embrace the immediacy lism gives companies the ability to tell their own of the digital era and want to manage their stories credibly, transparently and accurately. own news ... and, their own brand image.

Trust in what a company says has never been Brand journalism today, I believe, defines more important. After all, customers and conwho will stand in the spotlight of awareness sumers make buying decisions based somewhat and distinction and who will choose to remain on how a company behaves and what it says. in the shadows.

Brand journalism gives an organization the power to manage its news through credible

By David Henderson storytelling and clear, no-frills news writing – To be continued.... regardless of what other online voices may be saying. Is contemporary brand journalism proven and successful as a business techničeský překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz que? Yes, absolutely.

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MIRO GALLERY IN COOPERATION WITH GALERIE MICHAEL HAAS BERLIN

culture event

TIM ERNST (*1977), Germany

MIRO Gallery in the church of St. Roch, Prague

MAD ONNA

Opening Ceremony

From left: Jakob Štunf, First Counsellor, Embassy of Slovenia and Miro Smolák, Owner and Director, MIRO Gallery Prague

From left: Tim Ernst, Artist with his parents and Rebecca Thomas, Artist From left: Konstantin Kinol, Owner, Museum of Miniature, Prague and Valerij Alexejev, Director, Euroterminal, a.s.

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From left: Marian De Riz, Sculptor, Lenka Vácvalová, Actress, Ta Fantastika Theatre, Prague, JUDr. Jan Černý, Law Office Černý-Raupachová, and Jaroslav Šimonka, Art Collector

IN COOPERATION WITH LEADERS MAGAZINE From left: Alena Miro, Soprano and Soloist, State Opera Prague and Petr Chromčák, Conductor with his wife

Music Band Trío Cubano Santy y su Marabú – from left: José Manuel Labrada Terna, Santiago Felix Jimenez Smith, and Juan Carlos Dias Hernandez

From left: Albin E. Sybera, Managing Director, Sybera Enteprises spol. s.r.o. and Nicolas Fitaire, Director, Raiffeisen Private Banking From left: Stanislav Vaněk, Director, Czech Television and Juraj Filas, Composer

From left: Ulf Landeberg, General Director, Crowne Plaza Hotel Prague Castle and Daniel Meller, Hotel Revue & Gourmet Magazine

From left: Teodor Buzu, Painter, Georgi Stojanov, Painter, and Svetlana Michailová, Art Historian, National Gallery Prague

Ivan Smetáček, Traditional jazz studio with his wife

From left: Rebecca Thomas, Artist, Fadel H.S. Al-Hasan, Counsellor, Embassy of the State of Kuwait, and Tim Ernst, Artist

Alena Miro, Soprano and Soloist, State Opera Prague with her nephew Honzík Pospíšil

From left: Eduard Hrubeš, Moderator and Musician with his friend

From left: Václav Bašta, Dr. Josef Gáfrik, Journalist, Pražský Deník, and Georgi Stojanov, Painter

From left: Iva Říhová, Assistant to the Board of Directors, KOVOSVIT MAS, a.s., Miro Smolák, Owner and Director, MIRO Gallery Prague, and Radka Sýkorová

IN COOPERATION WITH LEADERS MAGAZINE

prague castle event

Boris Urbánek – Piano Juraj Bartoš – Trumpet Rostislav Fraš – Tenor Saxophone Michal Žáček – Saxophone, Flute Zdeněk “Wimpy” Tichota – Bass Guitar Michal Hejna – Drums Vít Švec – Contrabass Teresa Polk as a guest Singer

Boris Urbánek, Piano and Vít Švec, Contrabass

with Boris Urbánek and Guests

Jazz at the Castle From left: Blanka Dybová, Prof. Ing. Kamil Janáček, CSc., CNB Bank Board Member and Chief Executive Director and Ing. Stanislava Janáčková, CSc., Advisor to the President, Office of the President

From left: Prof. Václav Klaus, President of the CR and Kenneth Xiaokun Lee, Chinese Instructor, Tea Master

Vít Švec, Contrabass and Ivette Szabo

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From left: Prof. Václav Klaus, President of the CR, Dr. Tanilo Türk, President of the Republic of Slovenia, and H.E. Mrs. Smiljana Knez, Ambassador of Slovenia

From left: Mrs. Mojca Seliškar Toš, Chief of the Cabinet of the President of the Republic of Slovenia, Ing. Jiří Weigl, CSc., Chancellor, Office of the President of the CR, Dr. Tanilo Türk, President of the Republic of Slovenia, and Prof. Václav Klaus, President of the CR

From left: Benke Aikell, your Publisher, Nick Bolkvadze, Anna Šipková, and H.E. Lembit Uibo, Ambassador of Estonia

From left: Jaroslav Jurečka, Dušan Tříska, Mrs. Jurečková, and Ondřej Hejma

Václav Klaus, President of the CR with the band of the evening and their friends

Teresa Polk, Vocalist and Michal Žáček, Saxophone From left: Filip Sobol, Pramacom Prague, s.r.o. and Augustin Sobol with his wife

more photos and electronic version available on www.leadersmagazine.cz

From left: Karel Vágner, Music Publisher, Ing. Jan Troníček, CFA, Director, UniCredit Private Banking, Josef Fečo, and Prof. Václav Klaus, President of the CR

From left: Dr. Tanilo Türk, President of the Republic of Slovenia and Prof. Václav Klaus, President of the CR

From left: Prof. Václav Klaus, President of the CR and Ing. Jan Troníček, CFA, Director, UniCredit Private Banking

Josef Vejvoda, Drummer with his wife H.E. Vicente Espeche Gil, Ambassador of Argentina and James Rubenstein

From left: Viktor Dvořák, General Manager, Gray Line, Tereza Jurčová, Martin Saitz, General Manager, BMW Group, CR with his wife, and Petr Kala, Corporate Sales Manager, BMW Group CR

From left: Wahida Jaet, Director, Tunisian National Tourism Office for Czechia and Slovakia, Prof. Václav Klaus, President of the CR, and Lynn Tourkiová, Marketing and Sales Manager, Leaders Magazine

From left: Ludovít Szabo, Boris Urbánek, Piano with his wife, and Ivette Szabo

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Jazz at the Castle

From left: Miloš Janů jr., Nora Stříbrná, Business Coordinator, Al Harbi Group, Saudi Arabia, her grandmother, Linda Kubacakova, Life Coach, Karel Vágner, Music Publisher, Teresa Polk, Vocalist, and Ing. Miloš Janů, Managing Partner, Czech-Kuwait Trading Ltd.

THE TIME IS RIPE FOR

a Czech Private Philanthropy Movement Bill Gates and Warren Buffet are trying to start a global philanthropy movement. Since last summer, when they launched the Giving Pledge, they have garnered commitments from 69 billionaires to give away the majority of their money while they are still alive. Some of the biggest names in philanthropy fill the roster, including David Rockefeller, Ted Turner, Pierre and Pam Omidyar, Charles Feeney and Eli and Edythe Broad. The youngest billionaire in the world, Mark Zuckerberg, founder of Facebook and with an estimated net worth of $7 billion, has also joined the ranks. Interest in this idea is not confined to the US. Gates and Buffet have had meetings with high net worth individuals in China and India, and global philanthropy on a broad scale continues to grow.

Philanthropic involvement of high net worth individuals can and should gain more traction in the Czech Republic. Anyone following the financial news will see the increasing number of private banks launching services to cater to this group group. A substantial amount of wealth is here – according a recent ranking by the Czech publication Tyden, there are over 111 Czechs with assets exceeding 1 billion Czech Crowns.

More high net worth Czechs than you think are giving back. They are just doing it in a private way. There are a few who have set up personal or family foundations with websites detailing what they are doing in their philanthropy, including Petr and Renata Kellner, Zdeněk Bakala and his wife Michaela Maláčová, and Karel Janeček. There are other names you will see listed as high level donors to local or international non-profits, or attending high profile fundraising events.

So, what can be done here to stimulate more local philanthropy from high net worth individuals? I have a few suggestions: One or more of the active philanthropists should step forward to play a leadership role.

They should speak more openly, in the media and at public gatherings, about their philanthropic work – why they are engaged in it and what they are trying to achieve. This would inspire others, their peers, to get more involved philanthropically and know that they are not the only ones interested in or doing this type of work.

Create a network of peers. Peggy Dulany, my former employer, and her father David Rockefeller, provide an excellent example of the power of getting private philanthropists together with their New York-based Global Philanthropists Circle. Peer groups of high net worth individuals convene on a regular basis throughout the year to share ideas and experiences in a private setting. Discussions center around practical examples on how to deal with specific challenges such as how to lenges, evaluate a non-profit before making a major donation, and how to best leverage and maximize their philanthropic investments.

Lastly, a major business or financial publication should create an annual list of top Czech givers, similar to those published by Forbes, Business Week, and Barron’s. This would provide an incentive for more high net worth individuals to get involved and give proper recognition to those who are using their time and resources to make an impact in the lives of those less fortunate.

Now is the time to get started. We don’t need to wait for Bill Gates and Warren Buffet to visit the country to spark a Czech philanthropic movement.

Melissa Durda manages a philanthropy program at Václav Havel’s Forum 2000 Foundation and is a private Philanthropy Advisor (www.durdaphilanthropy.com). Melissa has over 16 years philanthropy and nonprofit project management experience. As a philanthropy advisor, she has worked closely with over 30 philanthropic individuals and

Photo: Ondřej Besperát

families from around the world. In this role she helped them learn about effective strategies of giving, connect to global leaders in philanthropy and international development, visit on the ground projects in Africa and Latin America, refine or develop their giving strategy, and select, monitor and evaluate effective non-profit projects. Melissa’s non-profit project management experience is in a variety of fields (education, children, nutrition, advocacy, emergency response, water, media) on projects in the Czech Republic, Africa, Asia and the United States.

By Melissa Durda ■ český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

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prague castle event

with McCoy Tyner Quartet

McCoy Tyner: Piano Gary Bartz: Alto Saxophone Francisco Mela: Drums Gerald Cannon: Contrabass

Gerald Cannon, Contrabass and Gary Bartz, Alto Saxophone

Jazz at the Castle From left: Ing. Hynek Chudárek, Executive Director, Óčko Music TV with his wife, Jiří Balvín, General Director, Óčko Music TV with his wife, and Lucie Koukalová

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From left: H.E. Vicente Espeche Gil, Ambassador of Argentina and H.E. Jan Pastwa, Ambassador of Poland

From left: Benke Aikell, your Publisher and Raju S. Mirchandani, President/CEO, Ramir Holding, Inc./Bar and Books – New York – Prague

From left: Ing. Aleš Dittert, Profing, s.r.o., Eva Ditterová, Director, Náprstek Museum of Asian, African and American Cultures, PhDr. Zita Suchánková, Director, Středočeské Muzeum, and Vladimír Suchánek, Academic Painter

From left: Prof. Václav Klaus, President of the CR and H.E. Chikahito Harada, departing Ambassador of Japan with his wife

Martin Šiler, Advisor to the General Director, SŽDC and Mgr. Eva Rybková, PhD, MBA, CEO, Image Conference & Consulting s.r.o.

From left: Roman Minařík, Managing Director, Romax, Alena Veliká, Press Service Head, Office of the President, and Dagmar Pecinová, PR Specialist

McCoy Tyner, Piano

From left: Mgr. Robert Štajniger, Advisor, Ministry of Health of the CR, Francisco Mela, Musician – Drums, and Jaromír Šlápota, President, ČSÚZ

IN COOPERATION WITH LEADERS MAGAZINE more photos and electronic version available on www.leadersmagazine.cz

From left: Miroslav Švedna, Partner, Law Firm Vyroubal Krajhanzl Školout, Lenka Dušková, Member of the Board, Friends of the National Museum of Women in the Arts, CR, Vladimíra Václavíková, Marketing and Editorial Director, Leaders Magazine, Andrew A. Cohen, CEO, Chairman of the Board of Directors, Aegon CR, and Soňa Illner Pajerová, Attorney

From left: Andrew A. Cohen, CEO, Chairman of the Board of Directors, Aegon CR, JUDr. Soňa Illner Pajerová, Attorney, and Jiří Stivín, Stivín and CO JAZZ

Karel Vágner, Music Publisher in his speech Vladimíra Václavíková, Marketing and Editorial Director, Leaders Magazine and Francisco Mela, Musician – Drums

From left: Vladimír Laštůvka and H.E. Sergey B. Kiselev, Ambassador of the Russian Federation

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Jazz at the Castle

From left: Gerald Cannon, Musician – Contrabass, Nick Bolkvadze, and Francisco Mela, Musician – Drums

From left: Ing. Zdeněk Pelc, President/CEO, Digital Media, Pavel Pulec, Diamonds International Corporation, a.s., and Ladislav Mravec, Director, Foreign Affairs Department, Office of the President of the CR

From left: Tereza Rychnovská, Francisco Mela, Musician – Drums, and Magda Danel

Vladimír Veselý, Právo and Jitka Mrázková

H.E. Renilde Loeckx, Ambassador of Belgium with her husband

From left: Prof. Václav Klaus, President of the CR, Lenka Souíí, and Pavel Pulec, Diamonds International Corporation, a.s.

From left: H.E. Zainal Abidin Bakar, Ambassador of Malaysia with his wife, Iva Drebitko, President, TRIGA, Patrons of Art and Joseph Drebitko, CEO, D&COMM

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Adéla Pollertová and Alexandre Katsapov in the lead roles

A new, charmingly bizarre version of the Cinderella ballet has been staged by The National Theatre ballet troupe under the direction of a leading French choreographer Jean-Christophe Maillot. Against the backdrop of a classic story, Maillot´s production reveals a different angle of perspective, new characters and innovative style.

Cinderella

culture event

more photos and electronic version available on www.leadersmagazine.cz

At the ball – the ballet troupe of the National Theatre

From left: Ondřej Černý, Director, National Theatre, Olga Sommerová, Documentarist, Jiří Besser, Minister of Culture with his wife, and Helena Třeštíková, Documentarist

Zuzana Herényiová and Peter Münch in the Chanina legend

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Legends of Magic Prague The new multimedia production of Laterna Magika, the Legends of Magic Prague introduces the best known legends and myths of the historic Prague. Figures of past such as Rudolph II., the alchemist Edward Kelly and Faust are brought back to life on the stage of The National Theatre´s New Scene.

Jiří Srnec, the author and director of the production, has been awarded a medal of the Czech Ministry of Culture

by Jiří Besser for his contribution in propagating a good name of the Czech culture at home and abroad

culture event

Ivan Kusnjer in the role of Klingsor

After almost hundred years, the National Theatre can welcome again Richards Wagner´s magnificent opera Parsifal. Among the international production team of John Fiore and director Jiří Heřman we can find big names of the opera world such as Alfons Eberz in the role of Parsifal, Eva Urbanová in the role of Kundry and Ivan Kusnjer in the role of Klingsor.

Eva Urbanová in the role of Kundry

Alfonz Eberz as Parsifal and charming damsels

Parsifal From left: Tomáš Hanus, Conductor, Daniel Dvořák, Director, National Theatre in Brno, and Eva Blahová, Member, National Theatre Committee

To Be or Not to Be

A dark comedy from Poland during the Nazi occupation.

A low comedy from the theatre backstage, war satire and melodrama. Changeovers, disguises and artistic virtuosity in the shade of the swastika. The play originates from the samemore named famous film comedy directed in photos and1942 electronic version available Hollywood by the on no www.leadersmagazine.cz less famous director Ernst Lubitsch.

From left: Miroslav Donutil, Alexej Pyško, and Václav Postránecký

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Elektronickou podobu ãasopisu najdete na www.parlamentnimagazin.cz

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